Computers Manage Better Than Humans
Forget about outsourcing. It's time to start worrying about automation.
Do you think your high-paid managers really know best? A Dutch sociology professor has doubts.The professor, Chris Snijders of the Eindhoven University of Technology, has been studying the routine decisions that managers make, and is convinced that computer models, by and large, can do a better job of it. He even issued a challenge late last year to any company willing to pit its humans against his algorithms.
“As long as you have some history and some quantifiable data from past experiences,” Mr. Snijders claims, a simple formula will soon outperform a professional’s decision-making skills. “It’s not just pie in the sky,” he said. “I have the data to support this.”
Some of Mr. Snijders’s experiments from the last two years have looked at the results that purchasing managers at more than 300 organizations got when they placed orders for computer equipment and software. Computer models given the same tasks achieved better results in categories like timeliness of delivery, adherence to the budget and accuracy of specifications.
No company has directly taken Mr. Snijders up on his challenge. But a Dutch insurer, Interpolis, whose legal aid department has been expanding rapidly in recent years, called in Mr. Snijders to evaluate a computer model it had designed to automate the routing of new cases — a job previously handled manually by the department’s in-house legal staff.
