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MIT Sloan Management Review and Google's new cross-industry survey about key performance indicators (KPIs) asked senior executives to explain how they and their organizations are using KPIs in the digital era. The results shed light on the tensions and contradictions companies face when using KPIs, demonstrate the many ways advanced use of KPIs can benefit organizations, and offer steps executives can take to make the most of KPIs going forward.

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.

When the author was tapped to join Levi Strauss, in 2011, the company's financial performance had been erratic for a decade. He went on a listening tour, conversing with each of the top 60 executives, asking them what three things absolutely must change and what three things must not. He wasn't surprised to discover that a clear strategy was lacking. But he also saw that a lack of urgency, of financial discipline, and of data discipline permeated the culture. After six months on the job, Bergh and his team rolled out a plan consisting of four key pieces: (1) Build our profitable core (80% of profits come from men's jeans and Dockers); (2) Expand for more (seize the opportunity in women's clothing); (3) Become a leading omnichannel retailer (grow sales in the company's own stores and online); (4) Achieve operational excellence (cut costs, drive cash flow, become more data driven and financially disciplined). The new strategy provided funds for investment in the company's Eureka Innovation Lab, which had been colocated with a factory in Turkey. In 2013 a new facility was opened four blocks from headquarters in San Francisco. Its biggest success has been a revamped women's denim line. A second big investment was the purchase of naming rights for the San Francisco 49ers' new stadium--a 20-year, $220 million deal. Bergh saw that as an opportunity to put the Levi's brand back at the center of the cultural conversation.

When you ask workers what matters to them, respect from superiors often tops the list. Yet employees report more disrespectful and uncivil behavior each year. This disconnect happens in large part because leaders have an incomplete understanding of what constitutes workplace respect--and so even well-meaning efforts to provide it often fall short. The author's research shows that employees value two distinct types of respect. "Owed respect" is accorded equally to all members of a work group or organization. It's signaled by civility and an atmosphere suggesting that every member is inherently valuable. "Earned respect" recognizes individual employees who display valued qualities or behaviors. To better understand the two types of respect, the author spent 15 months studying a unique work program for female prison inmates--a context that sharply highlights the differences between a respectful environment and a disrespectful one. At Televerde, a B2B marketing firm, regular displays of owed and earned respect have created an extraordinarily engaged workforce responsible for impressive profitability and growth, and recidivism among Televerde's inmate employees is 80% lower than the national average. Although Televerde operates in an unusual context, its employees' need for respect is universal. The author details seven ways in which leaders and managers can convey owed and earned respect and thus build a workplace that allows employees--and, as a result, their companies--to become the best possible versions of themselves.

Researchers have struggled to establish a causal relationship between diversity and financial performance--especially at large companies, where decision rights and incentives can be murky, and the effects of any given choice can be tough to pin down. So the authors chose a "lab rat" with fewer barriers to understanding: the venture capital industry. VC firms are fairly flat: Every investor is a decision maker, and choices have clear business consequences. Using publicly available information, researchers can see how similar or different decision makers are and compare decision quality on the basis of investments' performance. After examining tens of thousands of VC investments, Gompers has found that diversity significantly improves financial performance on measures such as profitable investments at the individual portfolio-company level and overall fund returns. And even though associating with similar people can have social benefits for people who do so, it can lead investors and firms to leave a lot of money on the table. In this article Gompers and Kovvali describe the research and provide recommendations for reaping the business benefits of diversity.

When employees are disengaged and underperforming, the reaction of many managers is to try new incentives and ratchet up oversight and control. Yet often nothing improves. Why? Because the assumption behind such conventional approaches is that work is fundamentally contractual and that employees are self-interested agents who will seek to minimize personal effort. And that assumption becomes a self-fulfilling prophecy: Employees do just what is needed to earn a reward or meet a standard, and nothing more. But there is another way: Rally the organization behind an authentic higher purpose--an aspirational mission that explains how employees are making a difference and gives them a sense of meaning. If you do that, they will try new things, move into deep learning, and make surprising contributions. The workforce will become energized and committed, and performance will climb. In this article, Quinn and Thakor describe how organizations like DTE Energy, KPMG, and Sandler O'Neill have dramatically increased employee engagement after discovering their higher purposes. The authors outline eight steps other companies can follow to break free of the conventional thinking about worker motivation, help a higher purpose permeate decisions throughout the company, and set off a positive chain of events.

New technologies can be unsettling for industry incumbents, regulators, and consumers, because norms and institutions for dealing with them don't yet exist. Interestingly, businesspeople in emerging economies face similar challenges: The rules are unclear and infrastructure is lacking. In this article, the author suggests that tech pioneers would do well to heed a lesson he's gleaned from his research in the developing world: For long-term success, companies must invest in the surrounding ecosystem. The author presents examples of entrepreneurs who have done just that in China, Bangladesh, Africa, and Chile, benefiting the public as well as their own enterprises. He then describes how an Indian health care organization is tackling institutional voids as it expands into medical tourism in the Cayman Islands. An in-depth look at the nascent drone industry follows, with profiles of companies that are helping create the conditions for the industry's growth by amassing knowledge about best practices, influencing the development of regulations, exploring new uses for drones, developing a professional workforce, and so forth. The argument is that when firms launching innovative products or services look beyond their self-interest and work to collectively build the institutional infrastructure, they--and society as a whole--are more likely to prosper.

The U.S. health care system needs reform, but too often experts focus on top-down solutions stemming from federal policy changes. Such efforts alone, however, cannot fix a wasteful and misdirected system. What's needed is innovation driven by doctors, nurses, administrators, entrepreneurs, and even patients who are devising new solutions to daily challenges. This article looks at two examples of bottom-up innovation, each involving a radical transformation of health care delivery. The University of Mississippi Medical Center created a homegrown telehealth network to increase patient access to care; Iora Health developed a new business model that doubled down on primary care to reap large savings in secondary and tertiary care. These successful initiatives--one from an incumbent health care provider and one from a business start-up--demonstrate the potential of creative leaders to reshape the U.S. health system.

We are entering a new era in additive manufacturing, or "3-D printing." It has major implications for the adoption of the technology and for the choices of business models available to companies that take the plunge, says the author. Advances in the technology's capabilities and expansion of the available materials and the supplier ecosystem have made it possible to produce a much broader range of affordable things--from the soles of running shoes to turbine blades--and, in many cases, in much higher volumes. As a result, 3-D printing is moving from a limited role (such as prototyping and making conventional machine tools) to a central place in manufacturing for a growing number of industries. Strategically, that means additive is becoming a full-fledged competitive weapon: It can be used to hold on to market leadership, to dethrone the dominant player, and to diversify by exploiting a printer's capability to make products for different industries. Consequently, leaders need to understand additive's capability and potential and the choices open to them in the near future. This article presents them with a playbook and explores six possible business models that have emerged.

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 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.