In the following clip from the film Crash (2004) two employees negotiate strategy.
Crouch’s thesis is that the financialisation of public institutions reduces the meaning of what they do to a limited number of numerical targets and performance indicators often of a financial kind. This has the effect of also reducing the spectrum of knowledge we need fully to be employees, citizens and customers and constrains expert judgement. It has the effect of trumping all other valuations of particular organizational or social problems with one supposed truth, that of the bottom line or a financial target.
One example he gives of the consequences of financialization from the UK is the monetary incentive offered to GPs to refer more patients with suspected Alzheimer’s disease for further medical tests. The incentive is problematic on a number of fronts: although it is offered on the basis of encouraging behaviour which politicians deem to beneficial to the public as a whole, it nonetheless implies that GPs would not refer patients without such a financial reward. It enacts a theory of motivation at odds with the medical profession’s own values: the overwhelming majority of doctors would not consider it either necessary or desirable to be offered money to refer someone for tests who needs them. Additionally, in Crouch’s terms it has the potential for corrupting expert knowledge as well as creating perverse incentives. Crouch is not implying that professionals need no scrutiny or don’t need managing, but he does argue that financial targets, and numerical targets more generally, are a crude measure of what is really important in specific situations when the work is complex. It is a very crude, mistrustful intervention to bring about a greater focus on potential Alzheimer’s sufferers. Continue reading
In this blog I hope to develop some of the points made in previous blogs on the tools and techniques of management. What is generally meant by the term ‘tools and techniques of leadership and management’ is ways of applying instrumental rationality to solve problems and control outcomes. In fact, in an ambiguous and uncertain world none of these tools and techniques can do what is claimed for them but they do constitute the techniques of disciplinary power which enable leaders and managers to control the bodies and bodily activities of
people in the organization. All of these tools and techniques take the form of rules, procedures and models. However, there is a difference between competent performance, on the one hand, and proficient, expert performance, on the other.
The difference is that following rules, procedures and models may produce competent performance, but proficient, expert performance requires moving beyond the rules, procedures and models. Management tools and techniques of
instrumental rationality may promote competence but the development of expertise is beyond them. Experts are unable to articulate the rules governing their performance because they simply do not follow rules; instead, as a consequence of long experience, they exercise practical judgment in the unique situations they find themselves in. Through experience they are able to recognize patterns, distinguishing between similarities with other situations and unique differences. The patterns they recognize are the emerging patterns of interaction that they and other people are creating. In other words, they are recognizing the emerging themes in conversation, power relations and ideology reflecting choices. The key resource any organization must rely on is surely this expert interactive capacity in the exercise of practical judgment
by leaders and managers. If we cannot identify rules, procedures and models as ‘drivers’ of expert practical judgment, does it follow that we can say nothing about practical judgment and have to leave it as a mystery?
I do not think there is anything mysterious about the exercise of practical judgment and we can inquire into the exercise of practical judgment and explore whether it is possible to identify any ‘techniques’ of practical judgment. Continue reading