Management Practice Reversion

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In Simple Words

Imagine an athlete hiring a personal coach who teaches them to log every calorie in a notebook. While the coach visits every week, the athlete logs their meals. Once the coaching stops and the daily effort yields no noticeable performance gain, the athlete stops logging and returns to previous habits.

Consulting tailors observed over time

Six months after start
63% kept records
24 months after start
28% kept records

Same consulting group at two survey rounds. Observed change, not a randomized comparison across times.

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Research question

Intensive, personalized management consulting temporarily increases the adoption of formal business practices among microenterprises. However, microentrepreneurs gradually abandon these routines once active advisory support ends if the administrative effort does not yield measurable financial gains.

Participants

N = 160 urban tailors and seamstresses in Accra, Ghana.

Study Design

Randomized field experiment evaluating one-on-one consulting from Ernst & Young (averaging 10 contact hours per tailor over one year) against a control group across 8 survey waves over 24 months.

Results

Record-keeping adoption among consulting recipients surged by 45 percentage points at 6 months (Round 3, p < 0.01) and remained 26 percentage points higher at 12 months (Round 7, p < 0.05), but declined to a statistically insignificant 12 percentage point difference (with only 28% maintaining records) by 24 months (Round 8), 11 months after consulting ceased.

Takeaway

Audit microenterprise management practice retention at 12 and 24 months post-intervention to confirm whether operational changes persist after active advisory support concludes.

Source and citation

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Plain-English glossary

Original explanations, informed by the references below. Examples are illustrations, not data from the studies above. The research text stays unchanged.

Percentage points

The difference between two percentages.

ExampleA rise from 40% to 50% is 10 percentage points. Relative to the starting value, that is a 25% increase.

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