In this final article in a series of four, the researchers behind the 2023 MIT Sloan Management Review-BCG Artificial Intelligence and Business Strategy Big Ideas research project explore how organizations should govern smart KPIs (KPIs augmented by or created with AI). They explain which functions should be involved and what pitfalls to watch for.
In this third article in a series of four, the researchers behind the 2023 MIT Sloan Management Review-BCG Artificial Intelligence and Business Strategy Big Ideas research project explore how using AI to refine KPIs leads to smart KPIs that are forward-looking and encourage organizational alignment. They define three types of smart KPIs and provide practical advice to help leaders use AI-enriched KPIs to increase strategic alignment.
In this second article in a series of four, the researchers behind the 2023 MIT Sloan Management Review-BCG Artificial Intelligence and Business Strategy Big Ideas research project offer a framework improve-create-establish, or ICE for enhancing strategic measurement with artificial intelligence. Examples from companies such as Wayfair and DBS Bank help illustrate the potential benefits of using AI to improve KPIs.
Leaders increasingly characterize the workforce as being broader than an organization's employees, encompassing all of the people and groups that contribute to achieving the company's business objectives. The shift is challenging leaders to redefine who and what constitutes their workforce and to develop new management practices and organizational structures.
Companies increasingly consider external contributors to be a part of their workforce. But these work arrangements can introduce complex management challenges, given external workers' relative autonomy and a lack of coordinated management of internal and external talent. The authors describe a framework they have developed, based on three years of research conducted by MIT Sloan Management Review and Deloitte, to help leaders manage or orchestrate these workforce ecosystems.
In this first article in a series of four, the researchers behind the 2023 MIT Sloan Management Review-BCG Artificial Intelligence and Business Strategy Big Ideas research project outline the opportunities AI brings for key performance indicators and strategic measurement. They discuss the business implications of using AI to generate and refine KPIs and explain how enabling strategic measurement systems to learn fundamentally alters how organizations understand and invest in future performance.
Many executives are struggling to determine the extent to which they should integrate the management of employees and external contributors. The MIT SMR-Deloitte Future of the Workforce team looks at Cisco as a case example of one organization focused on a more strategic integration of its contingent workforce.
Leadership is increasingly challenging in the Digital Age. Technologies have accelerated the blurring of boundaries between work and home as well as the boundary between shareholders and stakeholders. And within these blurred boundaries, leadership is further complicated by 'context collapse': The near impossibility in a social media era of credibly managing separate identities with colleagues, family and friends. The authors provide a roadmap for navigating these challenges and share principles for governing online behaviour and addressing context collapse.
Benchmarking and executive expertise don't necessarily determine the best key performance indicators (KPIs). Data-driven companies increasingly employ predictive analytics such as machine learning to help identify and refine key strategic measures. More finely tuned KPI measures lead to behaviors that are better aligned with strategic objectives.
Today's leaders are in need of best practices for dealing strategically and operationally with a distributed, diverse workforce that crosses internal and external boundaries. We contend that the best way to address the shift to managing all types of workers is through the lens of a workforce ecosystem a structure that consists of interdependent actors, from within the organization and beyond, working to pursue both individual and collective goals.
Opportunity marketplaces are an example of a digital platform that can improve data-driven decision-making and align talent quickly to new priorities. In this pandemic-market environment, they represent a step change in companies' ability to efficiently and effectively match labor with tasks.
Prioritizing process improvement, redefining performance, and committing to digitization, DBS Bank revitalized its performance management strategy and turned itself into one of the world's most successful global digital banks.
Executives in the automotive sector believe that machine learning can help them achieve their marketing goals, but that doesn't necessarily mean they invest in that ambition.
Companies are looking to artificial intelligence to create business value, and as MIT Sloan Management Review's 2018 Global Executive Study and Research Report on AI shows, Pioneer organizations are pulling ahead of their counterparts. By deepening their commitment to AI and focusing on revenue-generating applications over cost savings, these early implementers are positioning themselves to reap the benefits of AI at scale.
Our 2018 Strategic Measurement research shows that companies using machine learning to optimize business processes and decision-making have distinct advantages over those that aren't investing in ML. By using ML technology to make KPIs more predictive and prescriptive, these data-driven companies are redefining how to create and measure value.
In the 2018 Digital Business Report, MIT SMR and Deloitte find that digitally maturing organizations encourage distributed leadership and a healthy appetite for experimentation.
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 2018 Data & Analytics Global Executive Study and Research Report by MIT Sloan Management Review finds that innovative, analytically mature organizations make use of data from multiple sources: customers, vendors, regulators, and even competitors. The report, based on MIT SMR's eighth annual data and analytics global survey of over 1,900 business executives, managers, and analytics professionals, explores companies leading the way with analytics and customer engagement.
As the effects of climate change become more prominent, business needs to grapple with its own attitudes toward government. A more destructive physical environment requires a more nuanced relationship in which government is viewed as a partner in enabling and supporting markets rather than as a regulator that needs to be managed.