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Surviving the Workquake
Why dealing with turnover requires understanding how the traditional foundation of the workplace has been cracked by a seismic shift in the employer-employee relationship. -
Surviving the Workquake
Why dealing with turnover requires understanding how the traditional foundation of the workplace has been cracked by a seismic shift in the employer-employee relationship. -
Digital Davids, global Goliaths, and the Web3 sling
The Web 2.0 digital economy, centered on dominant platforms, generates substantial opportunities for managers and entrepreneurs yet creates critical dependencies. Platform-dependent businesses engage in competitive actions-rivalrous, competitive-cooperative, and relational-vis-Ã -vis digital platforms to gain a fair share of economic value. While the (supposedly) trustworthy custodians of digital data have captured a disproportionate share of revenue and profits, Web3 promises to tilt the balance away from dominant platforms by providing mechanisms that replace centralized organizational trust with decentralized technological trust. Here, innovations such as blockchains and smart contracts complement antitrust laws and regulations in limiting platform power. Furthermore, this study suggests that end users, peers, and regulators may play an important role in helping businesses draw investors', users', and customers' attention away from Web 2.0 platforms. To effectively leverage decentralized trust as a novel aspect of competitive actions, business leaders must pursue Web3 technologies that are reliable, high-growth market segments that are credible, and ventures that are investable. -
Evidence-based recommendations for recorded-meetings policies
Recordings of virtual meetings have become a common part of virtual and hybrid workplace environments. Meeting recordings offer potential benefits (e.g., speedy transcript production, expedited information sharing, searchable information, inclusion of visual and tonal expressions) and drawbacks (e.g., difficulty discussing sensitive issues, employee privacy, limited off-the-record capabilities, and employee concerns over sharing recordings). Given this variance, policies for virtual meetings are a necessity. Managers can successfully implement a policy by cocreating policy preferences with employees in open-ended and nonjudgmental conversations that openly discuss potential benefits, drawbacks, and employee concerns. Topics such as when to record, when not to record, how to gain consent, and who will have administrative and sharing rights should be covered. Areas of less urgency that may yet be part of these discussions include accessibility concerns, the use or rejection of software features, where and for how long meeting recordings should be stored, and such emerging issues as the use of virtual reality and AI tools. Managers should deliver policy preferences to a group of representatives from Human Resources, Information Technology, and the executive team to compose the policy, request a legal review, and to introduce and implement it in the organization. -
Fear and the poverty entrepreneur: The paradox of failure and success
When low-income and disadvantaged individuals start businesses-herein, poverty entrepreneurs-the experience of fear can be especially impactful on their behavior. In this article, we explore the role of fear as an obstacle and facilitator in both the launching and development of ventures by poverty entrepreneurs. Two primary fears are examined. The first, fear of failure, has been examined extensively by scholars yet has received scant attention concerning poverty entrepreneurs. Our second focus is the fear of success, which has received even less emphasis and is not well-understood in the context of business. It is a seemingly paradoxical notion that individuals can perceive negative consequences from what is otherwise a successful outcome. Using experiences from the Urban Poverty and Business Initiative-an 11-month annual intervention program that operates in 32 cities across the globe and serves over 2,000 disadvantaged entrepreneurs-we developed a series of focus groups with poverty entrepreneurs to learn more about their encounters with fear. A reconceptualization of these fears in a poverty context is provided. The potential upsides and downsides of fear when it comes to entrepreneurial behavior are examined, and implications are drawn from the coexistence of fears of failure and success. -
Feel the churn: Exercising talent management practices to support a climate for career mobility
The rise of employee mobility over the past few decades has significant implications for both organizational performance and individual careers. The traditional organizational response aims to combat turnover with increased retention efforts, but we offer an alternative strategy. In this article, we suggest that organizations also support employee mobility by proactively implementing practices that prepare workers for the next step in their career, whether that be internal or external from the company. When strategically combined, these practices can support a climate for career mobility. Drawing on extant management literature and industry publications, we demonstrate how organizations can create and support a climate for career mobility via workforce planning, job design, recruiting, onboarding, offboarding, and total rewards. Taken together, a strategic bundle of practices allows employers to support the careers of mobile workers as well as advance the goals and performance of the organization. -
Fighting fake reviews: Authenticated anonymous reviews using identity verification
Fake reviews have become a pervasive problem in the realm of online commerce, affecting businesses and consumers alike. These fraudulent reviews can cause significant damage to the credibility of companies and negatively impact consumer welfare. While various platforms, such as Yelp and Amazon, have implemented measures to combat fake reviews, these efforts have been largely ineffective and, at times, even exacerbated the problem. As a result, on November 8, 2022, the Federal Trade Commission announced that it is soliciting input for possible regulations around ways to fight fake reviews. The growing sophistication of Artificial Intelligence-particularly generative AI technologies like ChatGPT-worsens the problem by enabling the production of human-like fake reviews at an unprecedented scale. This lends new urgency to the fake review problem, so it is imperative to examine the pros and cons of extant approaches and propose alternative approaches that are better equipped to tackle the issue. In this article, we introduce a novel approach using digital identity verification, which involves verifying a user's identity via various forms of digital information that represent the individual and have not been applied to online reviews. We highlight the limitations of extant techniques and outline ways in which digital identity verification may be a promising solution to the problem of fake reviews. Potential benefits and challenges, as well as the effectiveness of our proposed approach in addressing the issue of fake reviews, are discussed. -
How business pivots during war: Lessons from Ukrainian companies' responses to crisis
This article explores how large companies in Ukraine have been responding to the crisis caused by the war. We find that the core theories of managerial reaction to crisis-the threat-rigidity and contingency theories-aptly describe companies' responses to the war, with the first theory explaining companies' initial reactions, and the latter theory explaining the subsequent behaviors of companies as the war continued. The most surprising findings here were the value of the pandemic as an experience in dealing with war, and the way in which, when war becomes the new normal, managers seek to take advantage of opportunities to build resilience and redundancy. The shift in perception and attitude this entails exemplifies the adaptability companies display in the face of such difficult situations as a full-fledged war. Our research yields four suggestions for managerial responses to crises: (1) view every crisis as a learning opportunity in preparation for future crises, (2) use business continuity plans as a means of reducing initial threat-rigidity reactions, (3) prioritize crucial over nonrelevant corrective actions, and (4) recognize that crisis-generated discontinuities may last longer than expected, thereby requiring long-term plans that respond both to emerging threats and to novel opportunities. -
To Adapt During Crisis, Take a Lesson From Jazz
What will inspire your team to gain agility during a grave crisis? A multiyear study of two prominent orchestras during the pandemic revealed three critical leadership practices to help teams transform. One key: Leaders need to think more like jazz musicians. Executives in any industry can apply these practices during their organization’s next disruption. -
The Trouble With Your Innovation Contests
New research shows that the way many organizations conduct innovation contests needs to be improved. The biggest takeaway: Leaders need to design their contests to match their organization’s hoped-for outcomes. Choices like the number of prizes and the identity of judges, for example, will affect the number and diversity of participants, the time they invest, and the quality of their ideas. Here’s how to choose among the possible approaches based on your organization’s goals. -
The Business Value of Gamification
This article analyzes the connection between gamification and business success, focusing on customer retention, new customer acquisition, and transforming user perceptions. Based on a qualitative comparative analysis of 40 high-profile gamification projects, it shows that a combination of three key features-virtualization, social comparison, and tangible rewards-explain the various pathways to success. Each pathway requires the presence-and sometimes absence-of different design features, and firms do best when they focus on one or two objectives rather than all three at once. The article presents a framework for designing and implementing gamification more strategically and effectively, noting the ethical questions that arise. -
How Developers Can Lower AI's Climate Impact
AI development can consume large amounts of energy, leading to growing concerns about the climate impact of this emerging technology. The authors explain how tactics such as rethinking how much training data is required and reusing already-trained models can reduce energy consumption and lower the resulting carbon emissions from artificial intelligence initiatives. -
The CEO of Gérard Bertrand Group on Turning a Family Wine Business into a Global Brand
In 1987, when the author was just 22, he inherited a 60-hectare vineyard from his father, who had died in a car accident. At first he tried to balance his life as a professional rugby player with his responsibility to the family wine business, but within a few years he had left the sport to devote himself to creating a new, organic paradigm for the wine industry in the south of France-the largest and most diverse wine region in the world. Since 1993 he has acquired a number of other estates, for a total of 17. The company now has 400 employees, 400 independent suppliers, and 12 business units around the world. Gérard Bertrand is an internationally recognized wine label with annual sales of about €180 million. When Bertrand began his journey, wines from his native Languedoc were regarded as table wine at best. Today his wines are recognized around the world for their quality, competing with the finest vintages from Bordeaux and Burgundy. In this article he explains how putting nature-both human and environmental-at the heart of his decision-making has contributed to the company's success and continues to drive its strategy. -
How to Sustain Your Empathy in Difficult Times
Empathic leadership is vital in today's working world; in fact, employees demand it. But empathy can be emotionally and physically exhausting for managers. "I feel like I'm never enough," one Fortune 100 executive recently said, "even in my empathy for my people. Anything going wrong with them means I've failed." Not surprisingly, some managers believe they must make a choice: be empathic and sacrifice their personal well-being for the good of others, or back away and preserve their own emotional health. Fortunately, according to the author, a Stanford psychologist and neuroscientist, this dilemma is more apparent than real. He writes that managers can employ three strategies to lead empathically while maintaining their equilibrium. In this article he describes the strategies and presents a blueprint for the practice of what he calls sustainable empathy. -
Leading in a World Where AI Wields Power of Its Own
AI has been subtly influencing us for years, but a new generation of vastly more capable technology is now emerging. These systems, the authors write, aren't just tools. They're actors that increasingly will be behaving autonomously, making consequential decisions, and shaping social and economic outcomes. No longer in the background of our lives, they now interact directly with us, and their outputs can be strikingly humanlike and seemingly all-knowing. They are capable of exceeding human benchmarks at everything from language understanding to coding. And these advances, driven by material breakthroughs in areas such as large language models (LLMs) and machine learning, are happening so quickly that they are confounding even their own creators. For all the wizardry and seductions of these new systems, however, our future can still be in our own hands. In this article the authors offer guidance for managing their effects in the workplace, looking for increased value in that which is uniquely human, and aligning messaging and business practices with a changing, and challenging, debate. -
To Solve a Tough Problem, Reframe It
Research shows that companies devote too little effort to examining problems before trying to solve them. By jumping immediately into problem-solving, teams limit their ability to design innovative solutions. The authors recommend that companies spend more time up front on problem-framing, a process for understanding and defining a problem. Exploring different frames is like looking at a scene through various camera lenses while adjusting your angle, aperture, and focus. A wide-angle lens gives you a very different photo from that taken with a telephoto lens, and shifting your angle and depth of focus yields distinct images. Effective problem-framing is similar: Looking at a problem from a variety of perspectives helps you uncover new insights and generate fresh ideas. This article introduces a five-phase approach to problem-framing: In the expand phase, the team identifies all aspects of a problem; in examine, it dives into root causes; in empathize, it considers key stakeholders' perspectives; in elevate, it puts the problem into a broader context; and in envision, it creates a road map toward the desired outcome. -
Should Your Nonprofit Charge Its Beneficiaries?
No matter how creative and ambitious they may be, nonprofits that rely solely on donations and grants to finance their growth often fall short. One way to improve both funding and impact is to add a "more commercial" strategy to the mix-by charging recipients for what the organization would otherwise provide for free. Though that may sound uncharitable, the authors' research shows that paying nominal fees can give beneficiaries a sense of ownership, boost their engagement, and empower them to demand results. Meanwhile, the revenue from the fees can go back into providing help to even more people. Several nonprofits, including Project Maji, which builds kiosks for clean drinking water in Africa; Gavi, which distributes vaccines; and Worldreader, which provides books to children in low-income countries, have found success with this approach. Using their examples, the authors describe how to set up an effective payment model. Among other things, nonprofits must assess how the needs of beneficiaries vary, educate them about offerings, and share accountability with them. Most important, they must stop defining impact as access to help and take a broader view of results. -
Rid Your Organization of Obstacles That Infuriate Everyone
The authors of this piece, both professors at Stanford University, devoted eight years to learning about how leaders serve as trustees of others' time-how they prevent and remove the organizational obstacles that undermine the zeal, damage the health, and throttle the creativity and productivity of good people. Along the way, they learned that there is both bad and good organizational "friction." In this article they focus on addition sickness: the unnecessary rules, procedures, communications, tools, and roles that seem to inexorably grow, stifling productivity and creativity. They show why companies are prone to this affliction and describe how leaders can treat it. The first step is to conduct a good-riddance review to identify obstacles that can and should be removed. The next is to employ subtraction tools-they list several-to eliminate those obstacles or make it difficult for people to add them in the first place. The authors show how people and organizations have used these steps to great effect: AstraZeneca, for instance, saved 2 million hours in less than two years by implementing an array of simplification efforts. -
Do You Need an External Talent Cloud?
The biggest headache that global businesses confront today-not to mention their most considerable cost-is figuring out how to secure talent. To address this problem, many individual managers are quietly circumventing their organizations' standard hiring processes and are turning to digital talent platforms to find skilled help on an as-needed basis. There are now more than 800 digital talent platforms, offering companies the services of millions of highly skilled freelance professionals from around the world. And those freelancers often can get jobs done more quickly and cheaply than full-time workers. The problem is, most of the managers making this move are doing it privately, simply as a tactical expedient for solving discrete problems or getting through a crunch. That's a mistake, say the authors. Companies themselves need to develop an open-talent strategy-a fundamentally new approach to hiring that involves thinking of all talent as part of a global network that they can rely on to meet their needs. In this article, the authors describe the new open-talent landscape and explain how companies can take advantage of it by creating an external talent cloud. -
Turn Generative AI from an Existential Threat into a Competitive Advantage
By making it vastly easier and cheaper to improve or create products and services that previously required significant human labor and creativity, generative AI has the potential to disrupt or even commoditize many businesses. Some companies will be able to gain an edge by leveraging publicly available generative AI tools better or faster than their competitors. But that advantage will be only temporary, and using the tools will soon become table stakes. This means established companies will have to rethink their business strategies and find new ways to add value to their offerings. In this article, the authors consider which types of businesses have the greatest potential to gain competitive advantage from generative AI and which are most likely to be disrupted. They also offer guidance for implementing AI across three levels of sophistication that correspond to an increasingly powerful advantage.