The managers versus the consultants
Grifell-Tatjé, Emili (Universitat Autònoma de Barcelona. Departament d'Economia de l'Empresa)
Lovell, C. A. Knox (University of Georgia. Department of Economics)

Data:	2003
Resum:	Standard practice is to benchmark managerial performance against best observed practice, because engineering information is rarely available. We exploit a rare opportunity to benchmark managerial performance against engineering standards. Our managerial performance describes the activities of Spanish electricity distributors, and our engineering standards are obtained from an engineering grid created by an international consultancy. We find the consultancy's network to be much less costly to operate. When we decompose the cost differential, we find that the superior network design, combined with lower input prices, accounts for more than all of the predicted cost savings. However we also find that the managers are more cost efficient than the consultancy, presumably because they exploit their incentive to be cost efficient under a revenue cap regulatory regime.
Drets:	Tots els drets reservats.
Llengua:	Anglès
Document:	Article ; recerca ; Versió acceptada per publicar
Matèria:	Benchmarking ; Revenue cap regulation ; Electricity distribution
Publicat a:	The Scandinavian journal of economics, Vol. 105 Núm. 1 (2003) , p. 119-138, ISSN 0347-0520

DOI: 10.1111/1467-9442.00008

Postprint 30 p, 144.1 KB

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