The past two decades, have seen many industries shaken to the core by a series of digital disruptions. This started with the advent of the internet, followed by the rise of social media, smartphones and now the shockwave of generative AI (GenAI). Industries such as media, advertising, mobility, tourism and…
Shifting influences Perhaps more importantly, our analysis found that the strength of these stakeholder influences is actually dynamic and can be negatively impacted by external economic crises. For a start, an economic slowdown or recession reduces the bargaining power of the labour force. This is because a tough economic environment…
Back in the early 1980s, plenty was written about the decline of American business on the global stage. One of the main criticisms levelled at US firms was their over-reliance on administrator CEOs. As a famous 1980 HBR article pointed out, these experts in finance and operations were too focused on short…
In the competitive world of business, entrepreneurs have long sought novel formulas such as the Business Model Canvas and the Lean Start-Up Method in their quest for success. The most potent tool, however, might be one that's centuries old: the scientific approach.From a series of experiments involving 759 start-ups across…
The biggest sustainability challenge today is not a lack of enthusiasm. We observe many more business leaders every day who are eager to engage in sustainability efforts, driven by factors such as government regulations, societal expectations, stakeholder demands or their own aspirations.The real challenge lies in effectively harnessing this enthusiasm…
Consider this: Heathrow Airport in the United Kingdom currently uses more energy than the entire west African country of Sierra Leone. Despite Africa accounting for less than 4 percent of global greenhouse gas emissions, many of its countries face significant threats from climate change, including increased droughts, floods, heat waves and potential crop…
Lately when I give lectures on leadership to various audiences, the topic of AI hardly ever fails to come up in the question-and-answer period. From what I hear, many people see AI as an ever-present and very worrisome development.It’s a paradox: On the one hand, plenty of observers are scared by how AI is…
People often ask us how to better understand others to be a more effective leader. Can we decipher a frown or someone’s folded arms to better understand them? Of course, some knowledge on reading people can be helpful. However, the challenge is that humans are, well, human, and that reactions don’t…
This month’s selection of new research by INSEAD faculty investigates how AI (artificial intelligence) can both enhance and constrain the human experience; size penalties in bond-market trading; and whether new inventions benefit younger and older workers to the same degree. Other recently released studies look at how multitasking can have…
In the pursuit of breakthrough innovation, it is easy to be dazzled by star performers, from successful CEOs and prominent lawyers to award-winning scientists. Mention electric vehicles, and Elon Musk springs to mind; radioactivity research, and Marie Curie comes to the fore. However, this fixation can overshadow the crucial role played by…
One of the realities of today’s financial markets is the outsized shareholder voting power held by the leading mutual funds. In 2021, the top three asset management companies (BlackRock, State Street and Vanguard) owned around 23 percent of S&P 500 firms. This made them the largest shareholders in 88 percent…
When conflicts in a team – no matter how minor – are left unresolved, it can eventually breed resentment. If unaddressed, this could lead to cynicism and distrust, as well as harm individual and team performance. How should leaders deal with this? The intuitive answer might involve orchestrating frank, albeit difficult,…
Though business and politics might seem like different worlds, there are increasing commonalities between leadership in these realms. As I explain in the second edition of Los Presidentes Españoles, which explores the success and failures of Spanish leaders since the return of democracy in 1978, executives can learn a lot from…
Medical criticality refers to the clinical value of a drug. Life-saving drugs should always be considered high criticality (e.g. insulin, blood thinners, antibiotics for the treatment of sepsis, etc.), while drugs that improve lifestyle tend to be low in medical criticality. Other criticality factors include the number of people dependent on…
In the real estate world, permeated with high-stakes and complex transactions, negotiation is a crucial skill to achieve and sustain success. Tried and tested adversarial negotiation tactics are falling into obsolescence and giving way to a new approach. In our practice briefing* for real estate professionals, recently published in the Journal…
In the complex, uncertain and fast-changing world we live in, success and even survival require intensive collaboration among individuals, organisations and countries. The outcomes of such collaboration can be breathtaking – consider the growth of Netflix and Amazon, the rebirth of Microsoft and General Motors, the successful launch of the…
This month’s selection of new research by INSEAD faculty offers some counterintuitive insights, from how misunderstandings can be productive to the possible negative effects of corporate social responsibility under certain conditions. Other studies reveal the significance of understanding the actions and interactions of human actors to achieve ideal outcomes. They include…
The United States narrowly escaped yet another government shutdown at the start of this year, which would have been the fourth US government partial shutdown in the last decade. But as the world’s largest economy heaved a huge sigh of relief, the 35-day shutdown from late 2018 into early 2019 – the…
Designed for sustainability One of the unintended legacies of Olympics and tournaments of similar scale are the purpose-built structures left conspicuously obsolete after the curtains fall. That said, Paris 2024 is designed for sustainability from the start. Apart from the purpose-built athletes’ village and Aquatic Centre, 95 percent of the infrastructure is…
Traditional productivity metrics are used by many companies to assess the value that employees bring to the organisation. These tangible, quantifiable and results-based measurements include work quality and output, efficiency and the number of projects completed on time and on budget. Some managers rely solely on these metrics to determine…
The wave of layoffs in Silicon Valley in the past two years is far from over. After a brutal 2023 that saw over 100,000 tech workers laid off in the United States, 2024 shows no signs of letting up.While the headlines are shocking, the human stories behind the numbers are just as…
Today’s uncertain and disrupted world has had a major impact on how firms do business. It has led to a gradual strategic shift from the era of “bigger is better” and a narrow fixation on increased sales growth to a more nuanced, broader vision of corporate value growth. In this podcast, Jean-Claude…
The US presidential election debate has delivered its verdict, produced new insights and raised new questions. The question we focus on here is why the richest country on earth has presented its voters with such poor options, and how the race to the White House has exposed the country’s democratic…
According to the African Development Bank, 11 African countries currently feature in the top 20 fastest-growing global economies. The organisation’s latest Outlook Report estimates that real GDP (gross domestic product) growth for the continent is expected to average 3.8 and 4.2 percent in 2024 and 2025 respectively. That compares favourably to…
If a company manages to double the demand for its products, it will undoubtedly celebrate its outstanding performance. But when demand for a company’s products increases 10 times, there’s no time to celebrate. Instead, a supply chain shock ensues. This was the experience of Kenvue at the height of the…
In December 2022, the world watched in awe as Argentina’s Lionel Messi and France’s Kylian Mbappé lit up the World Cup final. Playing at a top international tournament for their national team is the pinnacle of any footballer’s career. But what happens when they returned to their club, where their teammates…
Naomi was troubled by recurrent nightmares. Each night, she found herself trapped in a dark parking lot with no exit, hiding from approaching footsteps. As a shadowy figure with a familiar face loomed closer, Naomi tried to run but her feet felt like lead. She'd wake up, drenched in sweat.Through therapy and…
Failing to identify faults seems to be a prevalent issue nowadays, considering recent reports of quality control problems at Boeing and numerous recalls by car manufacturers, to name a few. Yet, excessive fault-finding occurs when the ability to pinpoint faults, which is a beneficial behaviour, is taken too far. This can become detrimental if…
Under stress, good people can make bad decisions. Even CEOs, who are often exposed to contradictory demands, are not immune. Bad decisions can range from ill-advised stock buybacks to poorly devised cost-cutting measures to extremes like imaginative accounting or illegal practices. We’ve seen how Nokia, General Electric, IBM and many…
The future of work is undoubtedly hybrid. Major corporations from Apple to Zoom now require employees to be in the office two or three days a week, citing the benefits of face-to-face collaboration and culture building. Indeed, traditional thinking suggests that being physically close leads to better communication and collaboration.Our recent research reinforces…
In a family business context, this can be achieved in at least three ways: starting new businesses, transforming existing ones, or becoming active investors in the next generation of startups. Each will be discussed at the INSEAD summit.Starting new businessesIn many cases, the next generation of family members may be…
Goals, values and rules: securing the team’s missionGoals, values and rules are three distinct and complementary ways to bond team members. Together, these elements create the solidarity needed for group members to become a true team. Goals are the foundational element of teams. They provide a shared purpose and direction for the team's efforts.…
New papers published by INSEAD professors suggest gains from AI could be undermined by managers, perhaps because they have to consider wider objectives beyond measurable results. Another finding pertains to social movements on a global scale, and how they may turn consumers off specific products. Other research cover macroeconomics. One paper…
Protectionism, decoupling, regionalisation and Covid-19 have shaped and reshaped value chains in the last five years. In particular, the pandemic and other geopolitical dynamics have revealed the deeper interconnectedness between economies, with the protagonist at the centre, undoubtedly, being China. But these global dynamics have not led to tectonic shifts; they…
Imagine a world where your boss could be fined for contacting you after hours. California is considering a law to make this a reality. The "right to disconnect" movement is gaining traction globally, with Australia joining France, Italy, Slovakia, Luxembourg, Portugal and the Canadian province of Ontario in passing legislation to empower employees to…
Every day, we make many decisions that affect not just ourselves but also the people around us. A few examples: Navigating different opinions at a team meeting, tipping wait staff at a restaurant, picking a weekend activity with friends, or choosing between conventional and sustainable but more expensive products. Traditionally, researchers…
Lawrence Wong, a US-trained economist, was sworn in as Singapore’s fourth Prime Minister yesterday. He has big shoes to fill. Under long-time former PM Lee Hsien Loong, Singapore became a bona fide growth miracle and is now one of the richest countries in the world. But Wong is also taking over…
When it comes to performance reviews, managers have traditionally held the reins, assessing employee contributions based on their observations and insights. But this approach can be flawed, as managers may harbour biases or lack a complete picture of each team member’s efforts. To address these limitations, some companies have adopted peer evaluations,…
In his 1941 non-fiction work Brazil: Land of the Future, Austrian author Stefan Zweig waxes lyrical about the South American country’s lush and fertile landscapes, astute city planning and melting pot of cultures living in harmony. These, he believes, could help Brazil become a leader on the global stage.“Brazil’s importance for…
Sooner or later, every successful entrepreneur confronts the challenge of establishing a board of directors. Yet many founders approach this task too casually, relying on intuition rather than learning from empirical research or other entrepreneurs’ experience. Such founders tend to become disillusioned with the board they assembled, losing faith in…