Testing the Effectiveness of "Managing for Results": Evidence from an Education Policy Innovation in New York City

"Managing for results" (MFR) is a performance management system that decentralizes authority to managers in exchange for greater accountability in performance. Although MFR makes much theoretical sense, the evidence of the effectiveness of MFR has not been as conclusive. In this study, we use panel data methods to examine the impact of a particular MFR reform in New York City, the Empowerment Zone (EZ), which focused on providing city public school principals greater autonomy to improve school outcomes. In addition, we use objective measures of both performance management and organizational performance. Our differences-in-differences estimates suggest that the EZ had a significant and positive effect on school performance as measured by proficiency rates in standardized mathematics exams, overall performance, and Regents diploma graduation rates, though the effects were not immediately apparent.