{
  "id": 2084084,
  "title": "Here is one reason why better managed firms succeed",
  "url": "https://urgent.news/2026/08/20/here-is-one-reason-why-better-managed-firms-succeed",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-20T06:00:55.000Z",
  "source": {
    "name": "Klement on Investing",
    "slug": "klement-on-investing",
    "url": "https://klementoninvesting.substack.com/p/here-is-one-reason-why-better-managed"
  },
  "original_language": "en",
  "account": "A recent McKinsey report highlighted the poor management practices in the UK compared to its competitors in the US and Germany. It suggested that despite having strong leadership practices, the UK's operational management systems are of lower quality, including performance metrics, planning processes, and formal improvement methodologies.\n\nHowever, a new study from the London School of Economics (LSE) challenges this notion. The research examined the UK's ability to predict staff turnover and GDP growth, two critical factors for managing costs and allocating resources effectively. The findings revealed that companies with better management tend to be more accurate in forecasting both employee turnover and GDP growth.\n\nMoreover, firms with higher productivity also demonstrated superior forecasting abilities in relation to staff turnover and GDP growth. Interestingly, these top-performing companies exhibited greater confidence in their forecasts compared to their peers, leading them to be more proactive in allocating resources.\n\nThe study presented four figures illustrating the relationship between forecast errors for GDP (top line) and employee turnover (bottom line) and management quality (left) as well as firm productivity (right). The data clearly showed that better management and productivity were associated with more accurate forecasts.",
  "summary": "A couple of months ago, management consulting firm McKinsey published a report where they took the management of UK businesses to task.",
  "key_points": [
    "UK firms lag in operational management compared to US and German competitors",
    "LSE study shows better management improves GDP and turnover forecasting accuracy",
    "Productive firms show greater confidence in forecasts and proactive resource allocation"
  ],
  "editors_take": "Better managed firms gain an edge by accurately forecasting staff turnover and GDP growth, allowing them to proactively allocate resources and ultimately achieve higher productivity.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}