The Impact of CEOs in the Public Sector: Evidence from the English NHS

Katharina  Janke; Carol  Propper; Raffaella  Sadun

Working Paper | HBS Working Paper Series | 2019

The Impact of CEOs in the Public Sector: Evidence from the English NHS

by Katharina Janke, Carol Propper and Raffaella Sadun

Abstract

We investigate whether top managers affect the performance of large and complex public sector organizations, using as a case study CEOs of English public hospitals (large, complex organizations with multi-million turnover). We study the extent to which CEOs are differentiated in terms of their pay as well as a wide range of hospital production measures including inputs, intermediate operational outcomes, and clinical outcomes. Pay differentials suggest that the market perceives CEOs to be differentiated. However, we find little evidence of CEOs’ impact on hospital production. These results question the effectiveness of leadership changes to improve performance in the public sector.

Keywords: Management; Performance; Public Sector; Measurement and Metrics; Health Industry;

Language: English

Format: Print

85 pages

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Citation:

Janke, Katharina, Carol Propper, and Raffaella Sadun. "The Impact of CEOs in the Public Sector: Evidence from the English NHS." Harvard Business School Working Paper, No. 18-075, March 2018. (Revised May 2019.)

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The Impact of CEOs in the Public Sector: Evidence from the English NHS

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