Saturday, May 31, 2025

Flick, Luis Enrique and the economic literature on managers

A recent academic article summarizing the economic literature on managers distinguishes between people managers and project managers. People managers are those adapted to a technology where individual workers can be monitored and their task and outcomes can be separately measured. Then a people’s manager main tasks are the selection of individuals and setting appropriate incentives. A project manager manages teams, where it is impossible to separate the contributions of individuals. It would be counterproductive to base incentives on individual measures.

Football (soccer) managers or coaches are clearly project managers. Their main tasks are to coordinate and motivate a team of players. Their task vector also includes player selection. The main mechanism for coordination is tactical choice. Good football coaches are rare. In general, player talent contributes much more to success than managerial talent.

But, as Peeters and Van Ours explain in a contribution to an IEB Report, those very few managers that do make a difference can be decisive, especially in contexts of great equality, usually at the top of tournaments. In the economy in general, as argued by Van Reenen and others, good managerial practices contribute a lot to explaining productivity differences among firms. 

An example that coaches usually do not make a difference is that, on average, it is imposible to distinguish the change in performance of a team that sacks the manager after a bad streak (Koeman, in the example of Peeters and Van Ours), from the performance of a team that sticks to the same manager (Valverde).

It is hard to predict who will be a good football coach for a given team. A good coach in one team may be bad in another one (ask David Moyes). In a firm, a good sales worker may not be a good plant manager. A good player may not be a good coach (ask Lampard, Rooney) as a good horse does not make a good jokey, but sometimes it could (Guardiola, Zidane). Even when statistical evidence or case studies identify clear success stories, it is difficult to explain exacty why a given manager has been successful, given the multiplicity of contributing factors and the multidimensionality of managerial tasks.

Hansi Flick in FC Barcelona and Luis Enrique Martínez in PSG are recent cases of clear contributions to team success. They inherited teams with individual players of the same quality or worse than the teams of their failing predecessors, and they improved the results significantly.

Both have several features in common, like their attacking style, the pressure of their teams on the other side of the pitch, and their long, learning careers. Flick was many years number two of the managerial staff at the German national team, before winning the Champions League as the head coach of Bayern Munich, to fail later as number one of the national team. Luis Enrique started at the second team of FC Barcelona, then failed in AS Roma, went to Celta de Vigo, coached the first team of FC Barcelona to win a Champions League (with Neymar, Messi and Suarez in their best years), and had a mixture of successes and failures with the Spainsh national team.

Both have managed to coordinate and motivate a multi-national, multi-ethnic, pluri-lingual coalition of players, including some of amazingly young age. They have put the collective before the individual stars. Both have used old ideas in new forms: systematic off-side trap, free positions (individual freedom in a collective design: what is the position of Hakimi, Démbélé or Doué?),… There are also differences: they have notably different styles in front of the media.

The future will tell if they can sustain this level of excellence for several years, or will see new examples of failing to use golden years to prepare for a sustainable era of success.


Sunday, May 11, 2025

The true USA and Europe

People in Africa, Latin America and Asia may look at the moral side of the discussion between Trump and his opponents in the USA and Europe with some skepticism.

Many of us feel comfortable believing that this is a battle of Trump against democracy, and that democracy is synonymous with Europe and even with the true American values, which Trump is betraying. The American Revolution was the first political application of the European-born Illustration and its protagonists were descendants of Europeans.

But the betrayal of the supposed American values of freedom and democracy took place much before the arrival of Trump. Racial discrimination, support of human rights violations, political corruption, are phenomena that did not have to wait for Trump.

What is true is that what is happening now is a serious step back in time in all fronts, and a very serious threat to democracy and public goods in general, from the quality of public servants to the promotion of science. But I think that the argument that Trump is betraying American values will not find many sympathizers beyond the USA and even among some sectors in the USA, such as the black or native American population.

Something similar could be said about “European values.” I am tempted to say that we score better on democracy and human rights, at least since the creation of the European Union and its predecessor institutions. But the economic development of Western Europe was built at least in part from colonialism and slavery. Even these days, the behavior of our leaders on issues such as immigration and refugees, or the genocide in Gaza and apartheid in the West Bank, is in contradiction with any positive moral values.

If we have to oppose the Trump administration on moral grounds, and we have to, we must be aware of our imperfections.