This is an MIT Sloan Management Review Article. Multinational companies have invested heavily in emerging economies - over $3 trillion since 1998, by one estimate. Many of these companies, however, have not adapted their products and operations sufficiently to succeed in these markets, and returns have often been mediocre. Even when managers think they are performing well in emerging markets, they often are not because they have set low expectations. Adapting products and operations requires obtaining and using good market intelligence, which is difficult in emerging markets due to the paucity and unreliability of information. Another factor is the wide heterogeneity of emerging markets compared to developed markets. A third common problem is a lack of shared responsibility for market intelligence between headquarters and country managers, so market intelligence that is collected either is dismissed as not credible or is not updated often enough to keep pace with the rate of change in emerging markets. The authors argue that companies can overcome these difficulties by (1) treating market intelligence as a strategic asset; (2) organizing differently for market intelligence in emerging markets; and (3) using a wide range of sources and methods for market intelligence in emerging markets. They also recommend that market intelligence be organized as a shared responsibility between the corporate office and emerging-market business executives, with shared decision rights and shared resources. The article includes examples illustrating how companies such as Wrigley, Unilever, and Procter & Gamble obtain market intelligence in emerging markets.

This is an MIT Sloan Management Review Article. When faced with an emerging technology, many companies have trouble responding - not because they don't recognize how it impacts their business, but because they have difficulty managing the uncertainty around the new technology's competitive viability. And when the technology significantly disrupts the company's existing business, it can create structural impediments to pursuing opportunities.

This is an MIT Sloan Management Review Article. The current corporate sustainability movement is unsustainable, the authors argue. Not because companies are pursuing the wrong goals - but because they are going about them the wrong way. Never before have companies been more conscious of the need to run their businesses in an environmentally, socially, and economically responsible fashion. Yet never before have theory and practice been wider apart. When it comes to practicing and not just preaching sustainability, many companies struggle and most flounder in developing and implementing a sustainable business model. Many executives know and feel the importance of making their businesses sustainable. But many of them can't make the transformation occur. Worse still, many don't even know they're failing. Based on their experience and observations, the authors identify key roadblocks to embedding sustainable business models and offer a roadmap to circumvent them. According to the authors, companies need to recognize that sustainability is not just another change initiative. Change-management initiatives are usually driven by some external factors or by lack of internal performance and are typically directed at increasing profitability and shareholder value. Sustainability, on the other hand, is about people and planet as well, not just profit. Sustainability involves creating value for all stakeholders in the ecosystem and viewing profits as a consequence of such value creation. Sustainability also requires a business to look at its entire value chain. A company's sustainability initiative, the authors argue, should be led by the CEO and should become a priority for the board. Business executives should also strive to attract the support of the company's middle management.

This is an MIT Sloan Management Review Article. The global appetite for Korean entertainment - movies, TV shows, and music videos - has exploded in recent years. For non-Korean-speaking viewers, subtitles are crucial to the experience. Enter Viki Inc., a company that hosts content for streaming and provides subtitles and closed captions. Viki both eliminates language barriers and introduces the content to an otherwise unserved audience. Traditionally, subtitles are created by a bilingual translator hired by the producer or broadcaster. But the process is expensive and slow to scale. To overcome these challenges, Viki developed a business model leveraging a community of more than 150,000 volunteers. This model allows Viki to crowdsource subtitles for Asian content in numerous languages. Viki rewards volunteers with gamified badges, the ability to view videos not otherwise available in their region, early access to new shows, and an advertising-free, high-definition experience of the content. The combination of rapidly increasing internet video adoption rates and a greater appetite for foreign content - both in Asia and globally - has become a big opportunity for Viki, which was acquired by Tokyo-based Rakuten Inc. for a reported price of $200 million in 2013. The authors argue that Viki's story exemplifies a larger trend playing out in Asia. They see Viki as an archetype of a new generation of companies leveraging business model innovation to drive growth in Asia. But to understand this type of business model innovation in its proper context, it's important to understand Viki's forerunners. The authors describe two distinct, yet overlapping, waves of business innovation from emerging markets in Asia in recent years: one decades old and still going, and another that is newer and includes companies like Viki.

This is an MIT Sloan Management Review Article. More than 2 billion people worldwide are users of social media, making it a logical platform for companies seeking to attract potential employees and engage consumers with their brands. In addition to sharing information on brand activities through official social media pages or accounts, employees share brand-related information, make comments endorsing the organization's brand, and display behaviors that are consistent (or at odds) with the brand values and promise. For companies, the social media behavior of employees represents both an opportunity and a risk. Some companies encourage employees to become brand ambassadors to consumers and job candidates on social networks such as LinkedIn and share the company culture on Facebook and Twitter. However, the authors found that in the companies they studied, employees on the whole displayed very low brand engagement on social media. Management was surprised to learn that their employees were not following the company on Facebook or other popular social media sites. When employees are not fans or supporters of the company's products, the authors noted, this can send an ambiguous message to employees' contacts and deprive the company of potential supporters. So what can companies do? From their research, the authors developed a set of recommendations for encouraging effective employee branding on social media. The first recommendation is to empower a stable of employee advocates. The authors say employees born in the era of the internet (so-called "digital natives") tend to be more active on social media and are more likely to become brand ambassadors for the company.

This is an MIT Sloan Management Review Article. Companies must make important decisions about which features to include in the goods and services they offer to customers. Understanding the return on investment for a feature is essential to increasing profitability. Although tadding features increases costs, it may also increase revenues, either by attracting new customers or retaining existing customers. Yet the features that retain customers, the authors argue, may be different from the features that initially attract them. The authors provide insights from their research on how to calculate the return on investment for features. Working with a global hotel company, the authors developed a model to assess how features produce financial returns by attracting new customers and/or by retaining existing customers. The model integrates three kinds of data: the revenue increase due to the effect the feature has on attracting new customers; the revenue increase due to the effect the feature has on retaining existing customers; and the costs associated with adding the feature. They tested the model using three features, or "amenities of interest," in the hotel industry: bottled water, free internet access, and a fitness center. Not surprisingly, the authors found that free wireless internet was much more likely to attract customers than free bottled water. However, the picture changed when the authors switched from looking at features that attracted guests to features that retained them. Offering free bottled water during a stay led to a bigger boost in customer retention than offering wireless internet access.

This is an MIT Sloan Management Review Article. As "big data" becomes increasingly integrated into many aspects of our lives, we are hearing more calls for revolutionary changes in how researchers work. To save time in understanding the behavior of complex systems or in predicting outcomes, some analysts say it should now be possible to let the data "tell the story" rather than having to develop a hypothesis and go through painstaking steps to prove it. The success of companies such as Google Inc. and Facebook Inc., which have transformed the advertising and social media worlds by applying data mining and mathematics, has led many to believe that traditional methodologies based on models and theories may no longer be necessary. Among young professionals (and many MBA students), there is almost a blind faith that sophisticated algorithms can be used to explore huge databases and find interesting relationships independent of any theories or prior beliefs. The assumption is: The bigger the data, the more powerful the findings. As appealing as this viewpoint may be, authors Sen Chai and Willy Shih think it's misguided - and potentially risky for businesses that involve scientific research or technological innovation. For example, the data might appear to support a new drug design or a new scientific approach when there isn't actually a causal relationship. Although the authors acknowledge that data mining has enabled tremendous advances in business intelligence and in the understanding of consumer behavior - think of how Amazon.com Inc. figures out what you might want to buy, or how content recommendation engines such as those used by Netflix Inc. work - applying this approach to technical disciplines, they argue, is different. The authors studied several fields where massive amounts of data are available and collected:

This is an MIT Sloan Management Review Article. When it comes to putting data to use, communication - or rather, lack of it - between the data scientists and the executive decision makers can cause problems. The two sides often don't speak the same language and may differ in their approach to and respect for data-based decisions. Given these challenges, organizations may need to call upon a "data translator" to improve how data is incorporated into decision making processes.

This is an MIT Sloan Management Review Article. Competition for digitally savvy talent has never been higher, but companies' methods for acquiring and keeping the skilled employees they need are outmoded. Whether they want to develop capabilities in employees or tap on-demand talent markets - or some mix of both - human resources directors need to experiment with new talent management models.

Nickolay Lamm, a recent university graduate, has been interested in entrepreneurship since his childhood. After running two small start-ups as a teen, graduating with a marketing degree and being laid off from his first traditional job, he finds himself working as a freelance designer. His focus is on creating original visual representations of data that go viral. Nickolay's speculative illustration of a fashion doll based on the proportions of an average 19-year old American woman (referred to as "Normal Barbie" by online media) creates considerable market buzz. His "average is beautiful" doll concept is widely covered in online media channels including the Huffington Post, BBC Radio, Cosmopolitan, CNN, Good Morning America, MSN and Smithsonian. When Nickolay starts to receive requests from parents asking where they can purchase an actual physical "average" doll based on his visual representation, he asks himself a question: "Is this the entrepreneurial opportunity for which I've been waiting?" In the end, Nickolay has a decision to make: 1) explore the feasibility of a partnership with Mattel, Hasbro or another established player 2) launch his own company, either with business partners or by himself; or 3) wait for a better entrepreneurial opportunity to emerge...

This compact case describes a scenario where a new human resources manager overhears an exchange between a male and female employee at an off-site party that he believes may constitute harassment. Students are asked to place themselves in the position of this individual as he reviews the course of action he needs to undertake. When it comes to analyzing interpersonal interactions, intentions versus actual behavior may not align. This is particularly true when culture, perception and interpretation intersect in diverse and multicultural environments; here the nuances associated with interpreting ambiguous activities came be further complicated by the differing cultural lens that participants may bring to bear as they work through both identifying and eliminating harassment and abuse. This compact case describes one such "gray" situation, which is further complicated by the fact that the described incident occurred at an off-site social event.

Barbara Levesque was preparing for her monthly board meeting on January 18, 2016. Five years ago John Howard Society of the North Okanagan (JHSNOK) made a strategic decision to pursue social enterprise. Its primary purpose was to better support the growth and development of their clients. A secondary driver was to find additional ways to diversify their funding sources to have more financial independence and stability. Social enterprise was identified as the vehicle to expand their impact, more fully meet their mission, and help contribute to long term operational funding. In 2010, Howard Industries was incorporated and two social-purpose ventures were created: "Uncle Howie's Kitchen" provided low cost catering and "Clean Sweep" offered minor renovations, painting and cleaning that mainly serviced the non-profit and public sector. By 2015, the investment in Howard Industries had started to pay off and to-date their social enterprises had contributed $4500 to its parent organization. The management team estimated that approximately 18 clients of JHSNOK worked full time in the two businesses throughout the four-year period from 2011 to 2015, and significant transformative change for some of these men had occurred. Howard Industries was at a pivotal point in development. The market showed an opportunity to maintain and expand current contracts, increase their profitability, and move their clients into leadership roles in the business. In order to grow, additional management time would have to be allocated to support it. Levesque had been asked by her Board to report on what Howard Industries achieved in 2015, and provide recommendations for its future direction. With the five-year social enterprise pilot coming to an end, Levesque needed to decide if Howard Industries was worth continuing and if so, how would she convince the Board to renew their commitment to this social venture.

The forestry industry unit (UFI) of ZENI, an important business area that carried out its own felling operation and featured high levels of investment in timber processing equipment and technology was run by one of the Founder son Patricio Zeni. Despite strong growth in recent years, UFI's profitability had gradually declined, partly due to the domestic economic situation which was marked by cost increases as a consequence of inflation between 15% to 20% annually, with an almost fixed exchange rate and, partly because the industry was becoming more globally competitive, prices in the USA market were set by two major competitors. Although internal operations seemed to run smoothly, General Manager of UFI -Patricio- was sure that better results in terms of profits could be achieved with more accurate diagnosis especially focus in production balance. The case explores whether UFI should implement a pull-based production planning system to improve company commercial performance and meet future demand or a push-based production system to maximize operational efficiency. Also, the case looks into the feasibility of implementing a control and monitoring system with operational indicators to reduce production problems. Finally, the case introduces the concern about the current organizational structure and how to reorganize the planning management function, possibly turning it into an independent area.

This case takes place as Señor Sisig has had three years of increasing success. The case highlights founder Evan Kidera, and the business as a whole, in Señor Sisig's efforts to continue the company's success and in pursuing the best growth options. Señor Sisig has received great acclaim in its early years. Founder Evan Kidera feels great pressure to capitalize on the opportunities presented to Señor Sisig as a result of the hard work in those early years, and at the same time does not want to over-stretch Señor Sisig's reach. Beyond maintaining business as usual, Kidera was considering three growth opportunities for Señor Sisig: (1) Add more food trucks, (2) expand operations to package products for sales to food retailers, and (3) open a bricks-and-mortar restaurant.

Dr. Fred Carroll, a professor at Regency State, a large university in the Southeast, stopped in to talk to his department chairman, Dr. Ken Winston, about a likely change in the summer faculty pay plan. Rumors were circulating that summer teaching compensation would be cut. Winston, in an uncomfortable situation, replied that the College faced a serious budget shortfall, and the administration was looking at ways to reduce costs, in particular, the high costs of summer instruction. Carroll, who formerly had been a department chair, countered that summer compensation was just one of many possible areas for reducing costs and identified several other options. He did not accept the explanation that the budget must be balanced by reducing summer pay, and remarked that it was unfair, even discriminatory, and contrary to University policy. He vowed to investigate the situation and talk with Winston again. Along with Carroll several other faculty members had expressed their concerns about changes in summer pay to Winston. Faculty summer pay at Regency State was based on a percentage formula that was tied to the faculty member's academic year; those with higher salaries earned higher pay for a summer course. To reduce the summer compensation budget by about 25%, the dean, associate dean, and department chairs were looking at various ways of cutting costs. With the tradition of many year-round students and large summer enrollments, many faculty members were accustomed to getting significant summer pay to supplement their academic-year salaries. Winston, along with the other College administrators, were challenged in identifying alternatives and finding a satisfactory solution to the budget problem that would reduce summer compensation costs yet minimize adverse effects on faculty morale.

When he joined T-Mobile, in September 2012, the author writes, the most important thing he recognized wasn't specific to T-Mobile; it was true for the wireless industry in general: People hated it. He saw that the best way to succeed in this industry was to do things as differently as possible from the existing carriers. T-Mobile got rid of long-term contracts and replaced them with a transparent pricing model, made it easier to upgrade to a new smartphone, and eliminated charges for global roaming. Legere also began criticizing rivals Verizon and AT&T Wireless, which he dubbed "dumb and dumber," at press events and on Twitter. The result: T-Mobile has grown subscribers from 33 million when Legere came on board to nearly 69 million at the end of the third quarter in 2016.

In pursuit of double-digit top-line growth, many retailers relentlessly open new stores, even when doing so destroys the profitability of their businesses. This addiction is fueled by Wall Street and a capitalist culture that's obsessed with growth. It's hard to kick, primarily because companies don't know when or how to turn off the growth machine--or what to replace it with. To explore the problem, the authors studied the financial data of 37 U.S. retailers with recent sales of at least $1 billion whose growth rate had faltered. They found that the less successful retailers had continued to chase growth by opening new stores far past the point of diminishing returns. By contrast, the more successful retailers had drastically curtailed expansion and instead relied on operational improvements at their existing stores to drive additional sales. This allowed them to increase revenues faster than expenses, which had a powerful positive impact on earnings. This article lays out a framework for determining when to switch to a low-growth strategy and how to put it into practice. If retailers execute well, they can stay in the maturity stage of the life cycle for a very long time, forestalling decline.

In surveys of 106 C-suite executives representing 91 private- and public-sector companies from 17 countries, the author found that a full 85% agreed that their organizations were bad at problem diagnosis, and 87% agreed that this flaw carried significant costs. Fewer than one in 10 said they were unaffected by the issue. What they struggle with, it turns out, is not solving problems but figuring out what the problems are. And creative solutions nearly always come from an alternative explanation for--or a reframing of--your problem. The point of reframing is not to find the "real" problem but, rather, to see if there is a better problem to solve. The author outlines seven practices for effective reframing: (1) Establish legitimacy. (2) Bring outsiders into the discussion. (3) Get people's definitions in writing. (4) Ask what's missing. (5) Consider multiple categories. (6) Analyze positive exceptions. (7) Question the objective.

Managers have tried various strategies and perks to boost employee engagement--all with little impact on long-term retention and performance. But now, neuroscience offers some answers. Through his research on the brain chemical oxytocin--shown to facilitate collaboration and teamwork--Zak has developed a framework for creating a culture of trust and building a happier, more loyal, and more productive workforce. By measuring people's oxytocin levels in response to various situations--first in the lab and later in the workplace--Zak identified eight key management behaviors that stimulate oxytocin production and generate trust: (1) Recognize excellence. (2) Induce "challenge stress." (3) Give people discretion in how they do their work. (4) Enable job crafting. (5) Share information broadly. (6) Intentionally build relationships. (7) Facilitate whole-person growth. (8) Show vulnerability. Ultimately, Zak concludes, managers can cultivate trust by setting a clear direction, giving people what they need to see it through, and then getting out of their way. In short, to boost engagement, treat people like responsible adults.

What executive hasn't dreamed of transforming an organization by achieving seemingly impossible goals through sheer force of will? Indeed, in countless business narratives, the practice of setting such objectives has been celebrated as a key source of achievement. But in practice, stretch goals rarely work out, the authors' research shows. Consider Yahoo. When Marissa Mayer took the helm of the ailing internet giant, in 2012, she announced a number of wildly ambitious targets, including the exceptionally difficult objective of achieving double-digit annual growth. Five years later, she'd fallen far short on them all, and Yahoo was still struggling. The problem is that organizations that would most benefit from stretch goals--those with recent wins and slack resources--seldom employ them. But businesses in trouble often adopt them in a desperate attempt to turn things around--and they nearly always fail. This is the stretch goal paradox. In this article the authors explain how to determine whether stretch goals are right for your organization and, if they are not, what alternative strategies you can pursue.