Topics Leadership Leading Change Column Our expert columnists offer opinion and analysis on important issues facing modern businesses and managers. More in this series subscribe-icon Subscribe Share Jon Krause Our ambition at MIT Sloan Management Review is to arm business leaders with information to make a positive impact: on your organizations and careers, for sure, and also on your employees, customers, trading partners, and the broader world within which you…
Radar Amid supply chain disruptions and geopolitical tensions, is the U.S. less reliant on imports than it used to be? Omri Nahmias March 11, 2024 Reading Time: 2 min Topics Radar Brief insights on emerging trends in management from the opening pages of MIT Sloan Management Review’s quarterly print magazine. More in this series subscribe-icon Subscribe Share Carolyn Geason-Beissel/MIT SMR | Getty Images It’s been a rough few years for…
Topics Radar Brief insights on emerging trends in management from the opening pages of MIT Sloan Management Review’s quarterly print magazine. More in this series subscribe-icon Subscribe Share MIT Sloan Management Review: What spurred your focus on employee ownership? Vicente Reynal: As a leader, I had experienced great equity appreciation at the companies I had worked at. But I kept wondering: How could I engage the hourly workforce in achieving…
Applying thoughtful approaches to pronouncing an unfamiliar name can enhance inclusivity and belonging at work. Elisa S.M. Fattoracci and Larissa R. Garcia March 07, 2024 Reading Time: 7 min Carolyn Geason-Beissel/MIT SMR | Getty Images Anne Wojcicki, Indra Nooyi, Ginni Rometty, and Oscar Munoz are all distinguished Fortune 500 CEOs with something else in common: Their names are often mispronounced. They’re far from alone; in a poll by Namecoach, a…
Coaching for the Future-Forward Leader Sanyin Siang March 06, 2024 Reading Time: 2 min Topics Coaching for the Future-Forward Leader Leadership roles come with new personal and professional challenges — and Sanyin Siang, board and CEO coach, adviser, and author, is here to help with an advice column for top managers. More in this series I am considering new opportunities after recently stepping down from a leadership role. What used…
Topics Innovation Innovation Strategy Carolyn Geason-Beissel/MIT SMR | Getty Images Growth-oriented companies that seek to foster a culture of innovation have no shortage of good project ideas. However, many of them will fall outside the control of existing business lines or the organization’s formal structures for managing innovation, such as the R&D department. As a result, potentially valuable programs can suffer from a lack of oversight while others risk misalignment…
1. “Beyond the Buzz: A Look at Large Language Models in Production,” PDF (San Francisco: Predibase, 2023), https://go.predibase.com. 2. A. Rosenbaum, S. Soltan, and W. Hamza, “Using Large Language Models (LLMs) to Synthesize Training Data,” Amazon Science, Jan. 20, 2023, www.amazon.science. 3. “Storm Reply Launches RAG-Based AI Chatbot for Audi, Revolutionising Internal Documentation,” Business Wire, Dec. 21, 2023, www.businesswire.com. 4. “Beyond the Buzz.” 5. P. Vaithilingam, T. Zhang, and E.L.…
As leaders consider which skills to focus on developing in 2024, change management and emotional intelligence might top the list. Even as leaders are called on to craft strategy around the use of artificial intelligence, the harder problems involve steering teams through all of the changes AI continues to bring. If you’re one of those leaders, you’ll need to not only retain but also inspire your best people in 2024.…
Marketers have long benchmarked their budgets against their peers’ spending. But it’s time to seek better metrics than the average budget. In his 2015 book The End of Average, Todd Rose warns against “averagarians” designing systems based on the mean or judging success in terms of the deviation from the mean. He highlights Gilbert Daniels, an anti-averager hero, whose research in the 1950s led the U.S. Air Force to design…
The Artificial Intelligence and Business Strategy initiative explores the growing use of artificial intelligence in the business landscape. The exploration looks specifically at how AI is affecting the development and execution of strategy in organizations. As an associate professor at Harvard Business School and cofounder of the Customer Intelligence Lab at the school’s Digital Data Design Institute, Ayelet Israeli’s work is focused on how data and technology can inform marketing…
Historically, it’s been tough to quantify the success of events, presentations, and speeches. We’ve long known that the spoken word is a powerful tool for influence and action, but how do you measure that power? When many organizations flipped from in-person to virtual and hybrid meetings and events, presentation analytics became a whole new ballgame. Speakers used to measure impact largely by surveying people and reading the literal room. While…
The act of challenging a superior necessitates more than just raising one’s voice; it involves understanding, navigating, and engaging in the subtle yet complex dance of power dynamics, diplomacy, and mutual respect. Approaching someone above you in the professional hierarchy requires a delicate balance and a deep understanding of both the person and the situation. For those keen on maintaining professional decorum and growing in their roles, this guide…
Strategic planners are often blind about how the future will challenge their status quo. A scenario-planning mindset can help them see what they’re missing. Executives engaged in strategic planning typically have a blind spot. They focus almost exclusively on possible courses of action and pay little attention to the future socioeconomic and environmental context in which those actions will play out. During our combined 70 years of research, practice, and…
Throughout 2023, tech companies have continually laid off workers. The year started with Amazon and Salesforce cutting 18,000 and 8,000 people, respectively, and sector momentum grew into the spring. An article in the April/May 2023 issue of Fortune magazine asserted that companies were “swapping exuberance for efficiency” and pointed out that they had collectively laid off more than 150,000 people since January. (By August, that number was up to nearly…
The launch of generative AI represents an era-defining moment. Never before have so many people become so excited by a technology program. Within five days of ChatGPT’s release in November 2022, more than 1 million people (including me) had logged on to try it out. If financial investments are a predictor of growth, then the $12 billion invested in generative AI in the first five months of 2023 shows the…
We’ve known for a while that relationships that have fallen into a state of inactivity — or become dormant ties — can be resurrected. As people venture back into professional social settings after having experienced pandemic-induced disconnection, they are particularly keen to revive these inactive ties. Such connections have the potential to be incredibly valuable: During the period of dormancy, former contacts have been learning new things and developing…
Leaders can’t identify and manage data monetization opportunities if they can’t productively discuss the topic. Try this practical matrix approach. Barbara H. Wixom, Cynthia M. Beath, and Leslie Owens Companies can’t manage what they don’t measure. They also can’t manage what they can’t discuss. Take the term data monetization: Definitions range from the narrowly focused “selling data sets” to the overly broad “creating benefits from data.” Too little consistency among…
An early-stage company requires a different organizational structure than a mature one. Marketing leaders must adapt their teams and strategies accordingly. Kimberly A. Whitler and Jonathan Metrick Determining the optimal design of a department or function is a key aspect of organization design and one of the most important decisions C-level executives make. Organization design establishes the essential infrastructure that enables or hinders companies’ effective deployment of strategic decisions,…
More jobs than ever require a four-year college degree, including many that never did in the past. Beth Berwick is among those calling for a retreat. “You have to take that requirement off of job descriptions,” she said. “It’s excluding 64% of the population — including 76% of Black Americans and 80% of Latinos.” Instead, she maintains, organizations should be hiring based on the skills they need. Berwick made her…
How do CEOs make good decisions? At a time when senior leaders have access to more data and sophisticated analytics tools than ever before, the central challenge of making good decisions about hiring, product development, and resource allocation is increasingly not a lack of information. Rather, it is knowing how much information is enough, and how to use it. Scholars of decision-making have long recommended that CEOs and…
The authors have been studying procurement and automation for two decades.i Mary Lacity has conducted more than 50 case studies on enterprise use of automation technologies. Remko Van Hoek and Lacity have been studying early adopters of procurement technologies for three years, including companies using e-auctions, artificial intelligence, and other emerging technologies, such as blockchains. For this article, they interviewed senior executives, business unit leaders, managers of centers of excellence…
If you saw the action-adventure movie Everything Everywhere All at Once, you might have had the same reaction we did. Impressive and exciting? No doubt — that’s one reason why it won seven Academy Awards. A portent of the future? Perhaps — as scientists explore the idea of a multiverse, the film provides one vision of what it might look like. Somewhat bizarre and confusing? Well, to us anyway. JoAnn…
Leaders like to show that they value employees. They proclaim that everyone on the team is critical to the organization’s success. As uplifting as that sentiment is, it simply isn’t true. Talent can be a source of competitive advantage only if great people are in the most critical roles. Having stars in jobs that aren’t critical is just a waste of talent. It’s accepted wisdom in strategy execution that focused…
Companies say they desperately want employees who can communicate effectively — leaders tell me that all the time in workshops — but how many of them really mean it? It’s hard to find a job posting that doesn’t mention the communication skill set as a key requirement. And yet, when faced with the skills that candidates actually have and those that they’re weak in, hiring managers find themselves making trade-offs,…
The public’s growing concerns about environmental issues, along with the U.S. Federal Trade Commission’s efforts to impose fines on businesses for greenwashing, point to the potential fallout when companies engage in environmentally damaging actions. Companies such as Burger King, KFC, and McDonald’s have all been recent targets of government and investor pressure to cut plastic waste. Last year, both Kohl’s and Walmart reached settlements of $2.5 million and $3 million,…
We are in the middle of a robot revolution. The past decade has seen dramatic growth in robot adoption across an increasing number of industries, and it shows no signs of slowing. In a recent McKinsey survey of companies worldwide, 88% of respondents said they plan to invest in robotics for their business. Our research has found an equally and perhaps more important transformation taking place: The adoption of robots…
While many companies talk the talk of sustainability, claiming to be integrating environmental and societal concerns into their business models, far fewer walk the walk: Managers typically treat sustainability as someone else’s problem and relegate it to a department or even a single individual.1 On the other hand, companies that have been successful in transforming their business models to be more sustainable have embedded sustainability into their corporate DNA. This…
Are stock buybacks as bad as they’re made out to be? The ubiquitous corporate practice of repurchasing shares has been the focus of much political and media scrutiny. The federal Inflation Reduction Act of 2022 included a 1% excise tax on repurchases (which President Biden has proposed increasing to 4% in his 2024 budget). In addition, senior Democrats have shown interest in barring executives from selling shares for three…
In today’s competitive job market, companies must focus not only on finding the best candidates but also on fostering positive relationships with them, starting with the first step of the recruitment process through every stage of employment. Communication is key to successfully creating those connections. How leaders communicate with prospective and current staff members can significantly affect their organization’s reputation as a place where people want to work. After all,…
Most executives acknowledge that learning is crucial to the performance of their business. But at a recent research workshop that my team and I ran with executives from over 40 companies, it became clear that organizations’ traditional learning models are facing pressure from the emergence of new work models. The participants identified these three learning challenges as the most acute: 1. Increased workloads have reduced learning time. Eighty-eight percent of…
Flexible work arrangements, such as hybrid and remote models, have become important for talent acquisition and retention in the post-pandemic world. As organizations refine their virtual work practices, it is important to ensure that they are inclusive of neurodiverse employees. Because remote work often lacks concrete time cues and is prone to distractions and information overload, it can present unique challenges for individuals with attention-deficit/hyperactivity disorder (ADHD). If it’s not…
Emphasizing skills in your talent strategy can have an outsize positive impact on hiring, upskilling, and retaining employees. By Aneesh Raman and Elyse Rosenblum As the threat of an economic downturn looms, we are entering the fourth consecutive year of uncertainty and rapid change. Three years ago, a global pandemic upended supply chains, and quarantines transformed how we work. Months later, a racial justice reckoning compelled businesses to make unprecedented…
One of the many topics involving generative AI that is receiving a lot of attention is its potential effects on Hollywood and the entertainment industry. It’s an obvious concern because generative AI can create the types of outputs that the industry uses — text (in the form of stories, scripts, ad copy, and reviews), marketing […]
Download the Event Summary Download (PDF) The pandemic irrevocably changed the how, why, and where of work. At Work/23: The Big Shift, a half-day summit held May 4, 2023, MIT Sloan Management Review brought together company executives and academic experts in talent management, hybrid work, employee well-being, and workplace culture. Together, they explained how organizations […]
Call me shortsighted, but I am not losing sleep over the prospect of a supercharged AI gaining consciousness and waging war on humans. What does keep me up at night is that humans are already wielding the power of artificial intelligence to control, exploit, discriminate against, misinform, and manipulate other humans. Tools that can help us solve complex and vexing problems can also be put to work by cybercriminals or…
Gordon Moore, co-founder of Intel and a towering figure of the early semiconductor business, died earlier this year at the age of 94. He leaves behind one of the more successful companies in history and, of course, his famous Moore’s law. He predicted in 1965 that the density of transistors on a microchip would double every year and adjusted his forecast in 1975 to “just” doubling every two years. The…
The Research The author conducted the research underlying this article while co-leading Mercer’s Workforce Sciences Institute.i The author analyzed the results of his research team's statistical analyses of three to five years of employee data for 20 large and midsize, mostly global, employers representing manufacturing and services companies in a range of industries, including consumer and industrial products, pharmaceuticals, technology, financial services, and professional services. Collectively, these companies employed over…
In today’s rapidly evolving work environment, professional development is no longer a nice-to-have perk, it’s an imperative. With budget tightening and workforce disruptions such as layoffs affecting many sectors, now is not the time for organizations to eliminate employee professional development and training. Likewise, individuals should continue to upskill regardless of whether organizational resources are plentiful. In this article, we explore ways that executives may approach learning and development (L&D)…
Corporate philanthropy spending reached new heights in 2021, exceeding $21 billion in the U.S. alone and marking a 24% increase over the previous year. These contributions, which traditionally focused on supporting galleries, museums, and shiny new buildings, have gained a higher profile in corporate decision-making. While management scholars have long pointed out the importance of corporate philanthropy, businesses’ approaches to it vary widely, and few have fully integrated it into…
Hina Dixit’s interest in supporting people and solving problems has its roots in her family’s call office business, where she helped people place telephone calls when she was growing up in India. Later, after earning her bachelor’s degree in computer science, she was quickly recruited into the tech space, where her problem-solving and customer service skills have served her well as both a software engineer and tech investor. From a…