2. Nick Bloom, 149, 2015 The Modern Firm in Theory & Practice Nick Bloom (Stanford Economics and GSB) Lecture 8: Management in schools 1

3. Nick Bloom, 149, 2015 We interviewed around 1,800 high-schools Using same approach as in manufacturing and hospitals –Sampled high-schools (those with 15 year old kids) –Targeted principals (head-teachers) –45 minute double-blind telephone interview Asked questions on: –Monitoring –Targets –Incentives

4. Nick Bloom, 149, 2015

5. 4 Management scores strongly correlated with pupils exam performance – the great graph Notes: Graph based on 354 observations with available school performance information (Canada=77; UK=85; US=120; Sweden=72). Performance data are zscored within country (US 2009 math exam pass rate from High School Exit Exams/ End-of-Course exams, UK 2009 average uncapped GCSE score, CA 2009 Fraser Institute calculated ratings from school reports, and SW 2009 9th grade GPA). Management score Student performance (z-score)

6. Nick Bloom, 149, 2015 5 Is this causal? Management scores strongly correlated with pupils exam performance – great regressions

7. Nick Bloom, 149, 2015 School management varies across countries

8. Nick Bloom, 149, 2015 7 School management varies across countries

9. Nick Bloom, 149, 2015 School management practices show a large spread

10. Nick Bloom, 149, 2015 Compared to manufacturing bigger left tail

11. Nick Bloom, 149, 2015 Key factors associated with good management similar to other sectors Size Competition Ownership Guess the relationships?

12. Nick Bloom, 149, 2015 11 Size: There is a strong relationship between school size and management practice Management practice score Position in the within country size distribution

13. Nick Bloom, 149, 2015 12 Competition: correlated with good for management Number of competing schools within a 30min drive Management practice score

14. Nick Bloom, 149, 2015 Ownership: autonomous govt. schools do well Somebody come up and explain this

15. Nick Bloom, 149, 2015 Public schools scored badly on incentives because of things like New York’s (now thankfully closed) Rubber rooms

16. Nick Bloom, 149, 2015 Rubber rooms even appeared in the Simpsons

17. Nick Bloom, 149, 2015 And have their own film (the film Waiting for Superman is great by the way)

18. Nick Bloom, 149, 2015 Still a very live issue – from yesterday

19. Nick Bloom, 149, 2015 Q1: Why are rubber room so destructive for teaching ability? Q2: How would you change the system? Q3: Why has reform taken so long?

20. Nick Bloom, 149, 2015 Q4: Can you give examples of how you have been impacted by management practices in schooling ? (beyond obviously very positively from this fantastic class…)

21. Nick Bloom, 149, 2015 BACKUP SLIDES

22. Nick Bloom, 149, 2015 Government owned linked with poor management, notably incentives (hiring, firing, pay & promotions) Monitoring management Targets management Incentives management 0-0.1-0.20-0.1-0.2-0.3 Hospitals Manufacturing Management score gap between Government and privately owned schools Schools