Data is not evidence: it may not be conclusive

Even if hundreds of data points all tell the same story — you have a general rule, not just exceptions — it could be correlation without causation. People who eat whole grains are less likely to have heart disease. But people who choose to eat whole grains may lead healthier lives in general, and this could be causing the lower heart disease, rather than whole grains being a superfood.

An unhealthy obsession with organisational health

An unhealthy obsession with organisational health

Two leading asset management firms drew my attention to the McKinsey Organizational Health Index as a potential tool to evaluate a company. A book, "Beyond Performance 2.0: A Proven Approach to Leading Large-Scale Change", written by two McKinsey partners, claimed that companies with high scores on this Index trounced their unhealthy peers along a range of performance ...
Discernment matters even more

Discernment matters even more

In 2015, 2018, and 2020, McKinsey released a trio of papers claiming that diversity has a positive causal impact on firm performance, titled "Diversity Matters", "Delivering Through Diversity", and "Diversity Wins". These studies make basic errors, as highlighted by Green and Hand (2021) and others, ...
Does corporate governance improve company performance?

Does corporate governance improve company performance?

Corporate governance...can genuinely add value for business. I was delighted to see a company’s study reach this conclusion. Corporate governance is my main research topic; I’m a Fellow of the European Corporate Governance Institute, and at the time I was Academic Director of the LBS Centre for Corporate Governance.
Can we really make $4 trillion fall from the sky? (Part 2)

Can we really make $4 trillion fall from the sky? (Part 2)

In an earlier post, I covered a Moore Global study claiming that companies with strong ESG performance enjoyed higher profits. If all companies took ESG as seriously as the ESG leaders, their profits would rise by $4 trillion in aggregate.
Do whole grains prevent heart disease?

Do whole grains prevent heart disease?

Study: Whole Grain Consumption Lowers Death Risk. That’s the title of an article in HCP Live, a clinical news and information portal for doctors. It’s consistent with what everyone tells you about the benefits of whole grains. But while some superfoods are peddled out of thin air, this one seems to be backed up by evidence.