Artificial intelligence is transforming all sectors of the economy, but there's no reason to fear that robots will replace all human employees. In fact, companies that automate their operations mainly to cut their workforces will see only short-term productivity gains, say the authors. Their research, involving 1,500 firms in a range of industries, shows that the biggest performance improvements come when humans and smart machines work together, enhancing each other's strengths. People need to train AI agents, explain their outputs, and make sure they are used responsibly. AI agents, in turn, can assist people with information gathering, data crunching, routine customer service, and physical labor, thereby freeing them for higher-level tasks that require leadership, creative thinking, judgment, and other human skills. To get the most out of AI, companies need to redesign their business processes. After deciding what needs improvement--their operational flexibility, speed, or scalability; their decision making; or their ability to personalize products and services--they can devise appropriate solutions. That will mean not only implementing AI technology but also developing employees who can work effectively at the human-machine interface. The authors describe how a number of firms are already taking these steps and optimizing collaborative intelligence. But many more should follow their example.
Dimon has been at the helm of JPMorgan Chase, the biggest bank in the United States, for more than 12 years. A straight-talking guy from Queens (albeit a billionaire with an MBA from Harvard Business School), he has led the bank on a steady path of growth, having weathered both the 2008 financial crisis and the "London Whale" trading scandal. Dimon calls that latter episode "the stupidest and most embarrassing situation I have ever been a part of." In this edited conversation with HBR's editor in chief Adi Ignatius, Dimon talks about the public's view of Wall Street, post-recession regulations, the risk of cyberattacks, globalism, inequity, and the rebuilding of U.S. cities. JPMorgan has a plan to invest $150 million in Detroit by 2019 to help launch small businesses, retrain workers, and revive the property market. It has announced similar investments in underserved areas of Chicago ($40 million) and Washington, DC ($10 million). "It's good to help society," Dimon says. "Our customers love it; our employees love it."
As organizations become more global, matrixed, and complex, they are requiring employees to collaborate with more internal colleagues and external contacts than ever before. According to research, most managers now spend 85% or more of their work time on e-mail, in meetings, and on the phone. And although greater collaboration has benefits, it also leaves significantly less time for focused individual work, careful reflection, and sound decision making. Organizational solutions are, of course, necessary to eradicate collaborative overload across the board. But research shows that with some strategic self-management, individuals can also tackle the problem on their own, clawing back 18% to 24% of their collaborative time. The first step is to understand why you take on too much work for and with others; this often involves challenging your identity as a "helper," a "team player," or a "star performer." Next, figure out how you add-and from where you derive-the most value and eliminate any collaborations that distract from that work. Last, ensure that the collaboration you continue with is as productive as possible.
Riku Nakamura relocated six years ago with his family from Tokyo to San Mateo, California, to spearhead the launch of Kenko USA, the first foreign subsidiary of a Japanese cracker company. However, Kenko USA hasn't taken off as hoped, and his family is ready to return home. Riku now ponders which course to recommend to Kenko's executive team: a lucrative private-label deal that would quickly drive revenue growth or a new branded marketing push that would better position the division for the long term. This fictional case study by Elie Ofek feature expert commentary by Tetsuya Fujisaki and Carlos Canals.
High-profile, emotionally charged projects--from the Jewish Museum in Berlin to the Ground Zero reconstruction--have made Libeskind's reputation. In this edited interview, he talks about how he stays motivated (even when a project takes more than a decade to reach completion), how he collaborates, how he delegates, and how he manages from afar.
Riku Nakamura relocated six years ago with his family from Tokyo to San Mateo, California, to spearhead the launch of Kenko USA, the first foreign subsidiary of a Japanese cracker company. However, Kenko USA hasn't taken off as hoped, and his family is ready to return home. Riku now ponders which course to recommend to Kenko's executive team: a lucrative private-label deal that would quickly drive revenue growth or a new branded marketing push that would better position the division for the long term. This fictional case study by Elie Ofek feature expert commentary by Tetsuya Fujisaki and Carlos Canals.
Riku Nakamura relocated six years ago with his family from Tokyo to San Mateo, California, to spearhead the launch of Kenko USA, the first foreign subsidiary of a Japanese cracker company. However, Kenko USA hasn't taken off as hoped, and his family is ready to return home. Riku now ponders which course to recommend to Kenko's executive team: a lucrative private-label deal that would quickly drive revenue growth or a new branded marketing push that would better position the division for the long term. This fictional case study by Elie Ofek feature expert commentary by Tetsuya Fujisaki and Carlos Canals.
The case describes how Dollar Shave Club proved to be a disruptive force in the shaving industry, one dominated by Gillette for over a Century. It did so without a single patent to its name, and with a direct-to-consumer subscription and a content-based customer engagement model that was new to the shaving industry, but not to consumer products at large (e.g., Nespresso and Red Bull, respectively). The case demonstrates the disruptive power of a digital platform model, and highlights how new marketing capabilities can disrupt traditional channels. It challenges P&G owned Gillette to formulate a strategic response in light of Unilever's threat to acquire the upstart business. The case provides online links to a rich set of free videos that include a CEO interview, competitive advertising, and analyst commentary.
The U.S. choice to go to war with Iraq, beginning in March 2003, was enormously consequential. This two-part case, developed for an HKS course called "Power Shifts: Understanding Global Change Through History," goes back in time to trace the evolution of American policy toward Iraq prior to 9/11, and the shift in thinking that led to war with Iraq during the administration of George W. Bush. The two parts of the case cover different parts of the chronology. While each could be used on its own, they are intended for use together. The (A) case, subtitled "The United States & Iraq, 1980 to 2002," briefly summarizes US policy toward Iraq after World War II, in the context of the Iran-Iraq War, and during the Persian Gulf War. It describes the frustrations inherent in the "aggressive containment" approach in the decade following. The case describes Bush Administration thinking about Iraq before 9/11, and the shift in thinking after that attack, including tensions within the Administration. The case ends in September 2002, with a tense battle between Vice President Dick Cheney and Secretary of State Colin Powell over what President Bush should say about Iraq in his upcoming September 12 address to the United Nations. The (B) case, subtitled "The Road to War, September 2002 to March 2003," begins with the President's address to the UN, and continues with the Administration's efforts to persuade the U.S. Congress and the United Nations that Iraq was manufacturing WMD, the simultaneous pursuit of a diplomacy track while preparing for war, and negotiations with a critical U.S. ally, British Prime Minister Tony Blair. The case ends with President George W. Bush's ultimatum to Saddam Hussein-that he and his sons leave Iraq within 48 hours, or face war with the United States. Case number 2130.0
Supplement to case KS1267. The U.S. choice to go to war with Iraq, beginning in March 2003, was enormously consequential. This two-part case, developed for an HKS course called "Power Shifts: Understanding Global Change Through History," goes back in time to trace the evolution of American policy toward Iraq prior to 9/11, and the shift in thinking that led to war with Iraq during the administration of George W. Bush. The two parts of the case cover different parts of the chronology. While each could be used on its own, they are intended for use together. The (A) case, subtitled "The United States & Iraq, 1980 to 2002," briefly summarizes US policy toward Iraq after World War II, in the context of the Iran-Iraq War, and during the Persian Gulf War. It describes the frustrations inherent in the "aggressive containment" approach in the decade following. The case describes Bush Administration thinking about Iraq before 9/11, and the shift in thinking after that attack, including tensions within the Administration. The case ends in September 2002, with a tense battle between Vice President Dick Cheney and Secretary of State Colin Powell over what President Bush should say about Iraq in his upcoming September 12 address to the United Nations. The (B) case, subtitled "The Road to War, September 2002 to March 2003," begins with the President's address to the UN, and continues with the Administration's efforts to persuade the U.S. Congress and the United Nations that Iraq was manufacturing WMD, the simultaneous pursuit of a diplomacy track while preparing for war, and negotiations with a critical U.S. ally, British Prime Minister Tony Blair. The case ends with President George W. Bush's ultimatum to Saddam Hussein-that he and his sons leave Iraq within 48 hours, or face war with the United States. Case number 2131.0
Global teams are ubiquitous and necessary in today's world and provide significant advantages to companies. However, the complexity of global collaboration can cause issues and result in team dysfunction and lack of trust. This reading focuses on how leaders of global teams can improve the workings of their groups by using the SPLIT model.
In January 2017, the owner of Exotic Caribbean Mountain Pride Ltd., based in Trinidad and Tobago, was trying to decide on a strategy to ensure the continued growth of her business in the face of increased competition from other local manufacturers. She wondered whether the timing was right to expand operations and enter the export market. The growing demand for her chocolate products also made her question whether she should increase her prices. The entry of her two daughters into the family business further complicated her decision-making. She wanted them to become more involved in running the business, but she was having difficulty adopting a less active role in the business.
Hero MotoCorp Ltd. (HMCL) was the largest two-wheeler company in India, a country with one of the highest rates of road accidents in the world. HMCL realized that a cause marketing campaign around road safety could benefit the company in two ways—it could raise issues around road safety to benefit the greater society, and it could create a unique positioning for the company. HMCL created a multi-level campaign that created visibility and worked at the ground level to create behaviour change.<br><br>HMCL’s multi-level cause marketing campaign reached a large section of the population, but challenges lay ahead in measuring the success of the road safety campaign. The head of corporate social responsibility at the company had to determine how to measure the success of the campaign and whether to continue it.
Jakson Group (Jakson) was a pioneer in the field of acoustic diesel generator sets. It was also one of the largest original equipment manufacturers for Cummins India Limited. Jakson had a compound annual growth rate of 23 per cent between 2000 and 2008. However, competitive forces and the 2008 global economic downturn posed tough business challenges for the company. In December 2010, the top management was contemplating how to reinforce the Jakson brand and put the company back on the path of success.
PromenAid Inc., located in Montreal, Canada, and founded in 2010, was a producer of satin-anodized modular handrails for mobility-impaired customers. The company had begun experiencing significant growth in sales in 2016. Further, the projections of the vice-president of Commercial Operations suggested explosive growth between 2017 and 2020. However, he was concerned about demand stimulation, positioning and differentiation, and choosing channels of distribution. In addition, he was concerned about the potential effect of growth on cash flow and the organizational structure. Changes had to be made to ensure the company's potential growth.
A businesswoman owned two franchised stores of Carpenter Tan Handicrafts Co., Ltd. (Carpenter Tan) in Panjin City, China. Carpenter Tan was a leader in the wooden crafts industry. When the first franchised store was set up in 2012, she was excited by and satisfied with Carpenter Tan’s franchise model. However, after her second franchised store was set up in 2014, she felt that this franchise model was restricting her development and autonomy. In 2016, Carpenter Tan suggested that the businesswoman open a third franchised store in Panjin, where the wooden crafts market was close to saturation. The businesswoman, who had become dissatisfied with Carpenter Tan’s franchise model, faced a tough choice about whether she should set up the third franchised store.
Sekar Group (Sekar), based in Surabaya, Indonesia, started in 1966 as a small business purchasing fish and shrimp. Led by its founder Harry Susilo, Sekar grew into a large holding company with several business divisions in the global market. Sekar's achievements were closely linked to Susilo’s moral leadership, which was greatly influenced by Eastern culture. As the eldest of a large family, Susilo had cared for his siblings as his own children. Some of these siblings were involved with Sekar, and the last of them was preparing to retire. Susilo, as the company’s patriarch, was facing the challenge of ensuring lasting success. A new leader from the next generation needed to be chosen to assume Susilo’s moral leadership and to sustain family business management and corporate ethics. Who should become the new leader and how would Susilo pass down his ethical framework to a generation largely raised with Western values?
This case series allows students to examine the dynamics of an organization-wide operating system change that was implemented over a decade from 2007 to 2017. The change was initially introduced at Fortis Healthcare Limited in a single hospital and later successfully scaled up to multiple locations. The system worked well for some years before it fell victim to gradual degeneration and defocus. At some stage in the journey of change, this degeneration and defocus was noticed, and a fresh effort was made to revive the change at different locations. Thus, the case series gives students the opportunity to examine the different stages of a change journey—the introduction of change; transferring it to multiple locations; sustaining change; possible .degeneration or defocus, leading to ritualization and loss of spirit; and the rejuvenation of change.<br><br>In Implementing Fortis Operating System (A), the president of strategy and organizational development at Fortis Healthcare Limited had to decide on a plan scale up change quickly and effectively.
This case series allows students to examine the dynamics of an organization-wide operating system change that was implemented over a decade from 2007 to 2017. The change was initially introduced at Fortis Healthcare Limited in a single hospital and later successfully scaled up to multiple locations. The system worked well for some years before it fell victim to gradual degeneration and defocus. At some stage in the journey of change, this degeneration and defocus was noticed, and a fresh effort was made to revive the change at different locations. Thus, the case series gives students the opportunity to examine the different stages of a change journey—the introduction of change; transferring it to multiple locations; sustaining change; possible .degeneration or defocus, leading to ritualization and loss of spirit; and the rejuvenation of change.<br><br>In Implementing Fortis Operating System (B), the chief executive officer at Fortis Healthcare Limited had to create a strategy to ensure that standard operating procedures continued to evolve over time.
PromenAid Inc., located in Montreal, Canada, and founded in 2010, was a producer of satin-anodized modular handrails for mobility-impaired customers. The company had begun experiencing significant growth in sales in 2016. Further, the projections of the vice-president of Commercial Operations suggested explosive growth between 2017 and 2020. However, he was concerned about demand stimulation, positioning and differentiation, and choosing channels of distribution. In addition, he was concerned about the potential effect of growth on cash flow and the organizational structure. Changes had to be made to ensure the company's potential growth.