Business life
(3/6/2009)


The halo effect, or 'mirages' of performance

  • Philip ROSENZWEIG
    Institute for Management Development, Lausanne
    Author, The Halo Effect (2007, Free Press)
    2008 Accenture Award, best article
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Summary

The halo effect consists of attributing a specific characteristic from a general impression. That is the reason which made Americans think negatively about the entire Bush administration policy following the disastrous management of Hurricane Katrina, or makes clients of a hotline underestimate the time they wait for their call to be answered after they have received a satisfactory response. Even professional researchers have said that they have solved the secret of business performance or longevity by drawing on data 'contaminated' by the halo effect. Philip Rosenzweig shows that researchers also succumb to numerous other 'mirages' which include absolute performance (which does not exist in a competitive world), the laws of physics (which do not apply in the world of business), and even causality (whose meaning is often misleading). Will these warnings be heard ? One cannot be sure, because we all like to be told lovely, reassuring stories...

Summary translated from French by Rachel MARLIN.

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The entire article appears in French in the Journal de l'École de Paris du management N° 79.