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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.

Research suggests a new way for companies to use customer satisfaction surveys: Instead of asking customers what went wrong, begin by asking what went right. This can positively influence customers' perceptions, increasing their reported levels of satisfaction, the chance that they will purchase again, the amount of money they will spend, and their loyalty over time.

A new study reveals a connection between the presence of specific genes and socioeconomic achievements, such as more-prestigious jobs and higher incomes.

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.

By pooling their know-how and resources across internal boundaries, organizations can solve problems more creatively, increase their productivity, and reap higher profits. But collaboration is not easy, given how time-pressed managers are, how reluctant they are to cede control over projects and relationships, and how tough it is for them to stop working in silos when they've been doing it for ages. About 10 years ago, leaders at the Dana-Farber Cancer Institute realized that the growing complexity of the problems its experts were charged with solving meant their fiefdoms couldn't last forever. In developing a case study about Dana-Farber, Gardner saw firsthand how difficult it was for the organization to move away from a star-based system to one that got researchers working together across specialties and facilities. She demonstrates that its story has clear parallels with business and outlines how executives can pull the levers of change in a wide range of companies.

Why are consumers increasingly dissatisfied with the quality of help they get from customer service departments? The authors' surveys and interviews with contact center personnel worldwide suggest that companies don't hire the right people as frontline reps, nor do they equip them to handle the increasingly complex challenges that come with the job. Every rep can be classified as one of seven types, say the authors. Supportive "Empathizers" constitute the largest group, and managers prefer them. But take-charge "Controllers," who make up only 15% of all reps, actually do best at solving customers' problems. To expand their numbers, companies need a fresh approach to hiring--one that involves crafting job postings and screening applicants differently. Companies should also revamp their training practices, using new curricula and on-the-job coaching to help all types of reps learn to act more like Controllers. Another key step is building a culture that values and rewards Controller behavior. That might mean evaluating reps on their ability to use good judgment rather than follow a script, and soliciting their ideas to improve the organization.

Contracts, transactions, and records of them provide critical structure in our economic system, but they haven't kept up with the world's digital transformation. They're like rush-hour gridlock trapping a Formula 1 race car. Blockchain promises to solve this problem. The technology behind bitcoin, blockchain is an open, distributed ledger that records transactions safely, permanently, and very efficiently. For instance, while the transfer of a share of stock can now take up to a week, with blockchain it could happen in seconds. Blockchain could slash the cost of transactions and eliminate intermediaries like lawyers and bankers, and that could transform the economy. But, like the adoption of more internet technologies, blockchain's adoption will require broad coordination and will take years. In this article the authors describe the path that blockchain is likely to follow and explain how firms should think about investments in it.

With a young, urbanizing population, abundant natural resources, and a growing middle class, Africa seems to have all the ingredients necessary for huge growth. Nevertheless, a number of multinationals have recently left the continent, discouraged by widespread corruption, a lack of infrastructure and ready talent, and an underdeveloped consumer market. Some innovators, however, have succeeded by building franchises to serve poorer consumer segments; tapping the vast opportunity represented by nonconsumption; internalizing risk to build strong, self-sufficient, low-cost enterprises; and integrating operations to avoid corruption. The difference, the authors believe, lies in the choice between "push" and "pull" investment. MNCs seek growth by "pushing" current products onto emerging middle-class consumers. They retain some large portion of their existing cost structure and operating style, and thus set prices that limit market penetration. The winning strategy diverges from this approach in almost every respect. When innovators develop products that people want to "pull" into their lives, they create markets that serve as a foundation for sustainable growth and prosperity.

Large companies spend millions, or billions, of dollars directly on energy each year--and millions more indirectly, on supply chain, outsourcing, and logistics costs. Yet outside the most energy-intensive industries, the majority of firms approach energy as merely a cost to be managed. This is a strategic mistake that overlooks enormous opportunities to reduce risk, improve resilience, and create new value. Today energy is climbing up the corporate agenda due to sweeping environmental, social, and business trends, including climate change and global carbon regulation, increasing pressures on natural resources, rising expectations about corporate environmental performance, innovations in energy technologies and business models, and plummeting renewable energy prices. To respond to these shifts, companies must develop a robust energy strategy. This article offers a framework comprising five steps: Create a C-level mandate, integrate energy goals into the vision and operations, track progress companywide, tap new technologies, and engage stakeholders. These steps are not revolutionary--but systematically applying them to a company's energy use is.

An increasingly popular route to success as a small business owner is "acquisition entrepreneurship"--buying and running an existing operation. If you're considering such a path, the authors offer practical advice for each stage of the process. (1) Think it through. Do you have the right qualities for the job (managerial skills, confidence, persuasiveness, persistence, a thirst for learning, and tolerance for stress)? Are you willing to trade the benefits of working at a large organization for the chance to be in charge? (2) Search diligently and efficiently. Plan to spend six months to two years--full time--following leads and systematically vetting business prospects. Focus on companies that are consistently profitable and have annual revenues of $5 million to $15 million. During this phase, you can self-finance or establish a search fund to recruit potential investors. (3) Strike a deal. When you've settled on a target, do preliminary due diligence to confirm the business's viability and arrive at a fair offer. If the seller accepts, you'll have about 90 days to work with your accountant and attorney on confirmatory due diligence. (4) Transition into leadership. After the sale closes, your priorities should be building relationships (with employees, customers, and suppliers) and setting up processes to ensure steady cash flow.

The comedian on innovating, humor as a leadership tool, and ending a run while atop the ratings.

Corporate globalization is a process of interaction and integration among the employees, products and customers of different nations—a process driven by international trade compliance and investment and aided by information technology. This process has obvious effects on the environment, on how culture evolves, and on political systems, economic development, and prosperity. When expanding to new markets, firms need the right leadership, which means an experienced globalizer. Companies can use different styles of organization for their globalization teams, such as a) purely centralized under one lead; b) completely decentralized under each main enterprise department; and c) split into two main departments, such as products and marketing. Groups or individuals benefit from working together in areas such as vendor pricing negotiation, localization workflow improvement, buying technology to automate localization and testing, mapping what customers need from the enterprise, and collectively pushing for newer areas to be globalized. Keeping teams as close to one another as possible benefits employees, who typically want to learn different aspects of globalization to advance their careers. Ultimately, the more divided the teams, the lower the flow of talent, innovation, and other benefits to the customer.

Professional coaching, one of the fastest-growing professions in the world, helps individuals and teams achieve their best. However, while individual coaching is a recognized tool, coaching task-performing executive teams is not as well established or understood. No matter what title and company are on one’s business card, the ability to lead positive change is an essential skill. But executing successful transformations is not simple: the failure rate of change programs is around 70 per cent. Getting from dilemma to solution is strategic, demanding creative responses within a coaching methodology built on team agreement; a cycle of energizing, redesigning, and gelling; and a dialogic approach to learning. To better communicate winning aspirations and select the guiding principles and rules that a team commits to throughout a coaching journey, a team charter can be designed before any coaching begins. Designing the charter can be a powerful way to introduce team coaching, and later, the charter can be critical if the team goes off track or becomes dysfunctional. Ultimately, team coaching is an act of positive leadership. It should be highlighted in the talent development portfolios of enterprises in order to emphasize team development and performance effectiveness.

Building networks is widely encouraged as a means to improving productivity and profits. But does having an extensive list of contacts really result in better performance for an organization? When looking at the data-rich world of the National Basketball Association (NBA), the answer is no. The author’s research examined every NBA player transaction from 1977 to 2010 and worked out which managers used their contacts to sign players and which managers didn’t. Teams that used their manager’s contacts to sign players performed five per cent worse than those that didn’t, and that was after factoring in the quality of the team, club budgets, and a host of other influences. Indeed, while relying on contacts saves time and money in the short term, it can be seriously harmful on and off the basketball court. When entering a business transaction, managers must objectively seek the best people for the job, keeping the long-term interests of the firm in mind. That means being able to weigh their contacts against outside candidates in every situation. Building in time for a proper tendering process often saves on costs in the long run by producing better outcomes for the company. If a firm finds its managers relying on contacts to save on search costs, it must assess this situation. Monitoring how managers use their contacts may cost time and money, but it can also mean the difference between being a market champion or just an also-ran.