COMPARATIVE MANAGEMENT

PERFORMANCE - BERTELSMANN
STIFTUNG 2010
OVERVIEW OF THE BERTELSMANN TRANSFORMATION
INDEX
o To promote democracy under the rule of law and to
promote social justice in the market economy.

o Decision makers must be held accountable to their
actions and equal opportunity must be emphasized.

o A trusted source of good governance for scholars
and decision makers.

o Lengthy, strict preparation process.

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OVERVIEW OF THE BERTELSMANN TRANSFORMATION
INDEX
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o Pre-requisites are:
1. Countries with a population of more than two
million people.
5 exceptions due to interesting
circumstances.
2. Those that have not achieved the status of a
fully consolidated democracy with a developed
market economy.
3. Recognition as a sovereign state.
OVERVIEW OF THE BERTELSMANN TRANSFORMATION
INDEX
o A total of 127 developing and transformation
countries were assessed in the 2010 BTI.
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OVERVIEW OF THE BERTELSMANN TRANSFORMATION
INDEX
o A total of 127 developing and transformation
countries were assessed in the 2010 BTI.
o 17 criteria are subdivided into 49 questions.
o Focus on: Democracy, Market economy and
Management
o Results are placed into 2 categories:
o Status Index - shows a countrys achieved state of
development on the way to democracy and a market
economy.
o Management Index - evaluates the quality of
governance among the decision makers.

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MANAGEMENT INDEX EXAMPLE QUESTIONS
o Based on 14 total questions. Encompasses 4 of the
17 criteria:


o To what extent does the political leadership set and
maintain strategic priorities?
o How effective is the government in implementing
reform policy?

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1. STEERING CAPABILITY
2. RESOURCE EFFICIENCY
o How flexible and innovative is the political
leadership? Does it learn from past errors?
o To what extent does the government make efficient
use of available economic and human resources?


o To what extent do the major political actors agree
on a market economy and democracy as strategic,
long-term aims?
o To what extent can the reformers exclude or co-opt
powerful anti-democratic actors?
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3. CONSENSUS BUILDING
4. INTERNATIONAL CO-OPERATION
o To what extent does the political leadership use the
support of international partners to implement a
long-term strategy of development?
o To what extent does the government act as a
credible and reliable partner in its relations with the
international community?



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MANAGEMENT INDEX LEVEL OF DIFFICULTY
o Six further questions determine the Level of Difficulty.
o Accounts for the fact that the quality of transformation
management is shaped by each states unique structural
conditions.
o Examples:
o To what extent do structural difficulties constrain the political
leaderships governance capacity?
o To what extent are there traditions of civil society?

o The Level of Difficulty score has a weighted effect on the
initial Management Index ranking. The combination of
the two provides the final, overall score and rank for that
particular country. 10
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MANAGEMENT INDEX THE SCORE
o The Management Index reviews and evaluates the
reform activities of political decision makers.
o Provides valuable information on the key factors of
success and failure for states on their way to democracy
and a market economy.

o BTI views leading political actors crucial for
development and transformation.

o NGOs & Governments
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HOW THE INFO CAN BE USED
o The 4 criteria of the Management Index has every
criterion showcase multiple KPIs. BTI attempt to
analyze more than other reports.

o Easy comparison to other countries, especially
when the in-depth information is analyzed.

o The bi-yearly reports make it simple to observe the
outcomes of decisions made and their
implementations from years before.
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DISCUSSION QUESTIONS
o Do you think the information is really accurate and
transparent? Is the evaluation system sufficient?

o Would the political successes of one country really
be applicable to other countries? i.e. Chile vs.
Mongolia?

o What would you do with the information as an:
investor, company, ???

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BIBLIOGRAPHY
o http://www.bertelsmann-transformation-
index.de/en/bti/ranking/management-index/
o http://www.bertelsmann-transformation-
index.de/fileadmin/pdf/Anlagen_BTI_2010/BTI_
2010__Brochure_E_web.pdf
o http://www.bertelsmann-transformation-
index.de/fileadmin/pdf/Anlagen_BTI_2010/BTI_
2010_Manual.pdf
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