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A business model that can link a new technology to an emerging market need is the key to industry transformation. When Apple coupled the iPod with iTunes, it revolutionized the audio devices market. But most attempts to introduce a new model fail. The authors did an in-depth analysis of 40 companies that had launched new business models in a variety of industries, and here they present the key takeaways from their research. They looked for recurring features in the models and found six: personalization, a closed-loop process, asset sharing, usage-based pricing, a collaborative ecosystem, and an agile and adaptive organization. No model displayed all of them, but having a higher number of features usually correlated with a greater chance of success at transformation. (The taxi service Uber can claim five of the six.) Companies that are thinking about changing their business model or entering an industry with a new model can rate themselves on the six features to assess the likelihood that they'll be transformative.

Carlos Ghosn's official title is CEO and chairman of the Renault-Nissan Alliance, but he's more colorfully known as "Le Cost Killer" and "Mr. Fix-It." He earned those nicknames by rescuing first Renault and then Nissan back in the 1990s. Now he's hoping for yet another turnaround--at struggling Mitsubishi, where Nissan recently acquired a controlling share. A Brazilian-born Lebanese-Frenchman, Ghosn deftly handles the challenges of managing companies on two continents. In this interview, he describes how he does it--meeting with his teams in Tokyo and Paris for a week each month and spending the rest of his time in operations, talking to suppliers and buyers, and looking for new opportunities. In the next five years, he says, "you'll see more electric cars, more autonomous drive, and more connectivity." He's excited about using technology "to make the car an indispensable personal space" and developing a fully self-driving vehicle by 2020. And he's not worried about competition in the electric-car market from companies like Apple or Google: "We have a long tradition of taking technology from the outside and putting it into our products." Ghosn believes the role of a CEO is to be "the guardian of the integrity and sustainability of the company." He sees his most important tasks as selecting the right people and directing strategy. "I want to make sure the Nissan-Renault Alliance continues to be solid," he says, "with good performance and good governance."

A paradox of power is that people gain it through virtuous behaviors such as collaboration, openness, fairness, and sharing, but once they enjoy a position of privilege, those finer qualities start to fade. Research shows that the powerful are more likely to engage in rude, selfish, and unethical behavior. This tarnishes their reputations, undermining their influence, and creates stress and anxiety among their colleagues, dragging down their teams' engagement and performance. Dacher Keltner, a psychology professor who has studied this phenomenon in a variety of professional settings, describes how executives can avoid succumbing to this syndrome. The first step is developing awareness: being attentive to the feelings that accompany a rise to leadership, practicing mindfulness, and looking for warning signals in your behavior. The second is to remember and try to practice the three ethics of good power--empathy, gratitude, and generosity--in your interactions, meetings, and communications every day.

The famous magician--half of the magic act Penn & Teller--talks about how he and his partner develop their ideas, what kind of relationship they have, and the secret to connecting with an audience.

The authors concluded that organizational agility required routines in four areas: strategizing, perceiving, testing, and implementing. Routines and capabilities, the authors note, allow organizations to perform key activities reliably and repeatedly. Management processes -- the fundamentals of planning, organizing, controlling, and motivating -- operationalize the routines and capabilities. To support agility, management processes need to be designed well, and some processes must be designed for change. While the authors found that good management processes were a prerequisite for agility, good processes were no guarantee for success. Sustaining high performance was a function of whether certain processes were flexible and fast. They illustrate their argument using two companies from their research: the Brioche Pasquier Group, a multinational bakery headquartered in Les Cerqueux, France, and Netflix Inc., which is based in Los Gatos, California, and streams digital content to more than 80 million customers in more than 190 countries. Both companies demonstrated an ability to operate effectively without being tied to a rigid set of steps. At Brioche Pasquier Group, for example, twice a year individuals and teams identify objectives and actions related to their work that they think can improve short-term performance or develop future capability, and they also review the previous plans. Brioche Pasquier Group uses this as an opportunity to distribute monetary bonuses (funded by savings or new value realized) to the individuals and teams whose actions contributed to the results. At Netflix, executives are committed to putting information into the hands of the people who do the work and making sure that the information flows up and down to everyone who needs it.

The alliances highlight the fact that companies may not need to own all of the resources, skills, and knowledge necessary to undertake key strategic growth initiatives. When conditions are uncertain and the stakes are high, partnerships can be an attractive alternative to going it alone or to mergers and acquisitions. Accordingly, many companies now maintain alliance portfolios. As a result, executives must manage multiple alliances with diverse partners across the globe simultaneously. However, the skills required to develop and manage alliances are still not well understood. In this article, the authors attempt to address these shortcomings by offering an integrative and holistic framework of alliance management along with practical guidance. Although strategic alliances are often viewed as a critical tool for pursuing growth opportunities, recent survey data suggest that roughly half of alliance portfolios underperform. Although the assessments of performance are subjective, it is fair to say that many alliances fail to live up to expectations. Why? As the authors found in their research, companies move at different rates down the learning curve related to managing alliances. Smaller companies may have advantages in this relative to larger partners because they are usually less complex internally and have stronger incentives to learn. Moreover, the benefits of alliance experience depend on the extent to which the organization can actively capture and leverage its experience (for instance, one partner may be able to draw additional benefits from an alliance, while the other may continue to make the same old mistakes). Hence, the authors argue, companies need to take a holistic and strategic approach. Tesla, for instance, doesn't view its alliances as individual deals but as part of an overall strategy to establish a new standard in automotive technology and, along the way, to gain a competitive advantage.

Although the term "robot"connotes visions of electromechanical machines that perform human tasks, the term as it relates to service automation refers to something less threatening: software that performs repetitive and dreary service tasks previously performed by humans, so that humans can focus on more unstructured and interesting tasks. In this article, authors Mary C. Lacity and Leslie P. Willcocks focus on "robotic process automation"-- software tools and platforms that deal with structured data, rules-based processes, and deterministic outcomes. They focus on this area (as opposed to more advanced automation technology known as "cognitive automation") because this is where most companies begin their service automation journeys. Currently, companies use robotic process automation for tasks such as those associated with validating the sale of insurance premiums, generating utility bills, paying health care insurance claims, keeping employee records up-to-date, and even generating news stories. In one case, the authors describe how a business process and technology services provider helped an insurance industry client automate a multistep process for processing premiums for new insurance policies. Humans still handle the unstructured parts of the work. However, the structured parts of the process, including finding errors, retrieving the online data, creating the official sales record, and notifying insurance brokers when the process is complete, are now managed by the robotic process automation software. By studying organizations that were early adopters in deploying software robots, the authors were able to identify three ways the companies generated tangible benefits: (1) by developing an approach to service automation supported by top management; (2) by initiating effective processes that deliver value to customers and employees; and (3) by building enterprisewide skills and capabilities.

This is an MIT Sloan Management Review Article. The combination of new analytical capabilities and burgeoning data assets are being used to form value-added "data products."Such products have powered rapid growth in the value and success of online companies, but the expansion of analytics means the standard model for developing these products needs to evolve. An updated model needs to reflect new "time to market"expectations and input from a variety of stakeholders.

Executives should evaluate whether a business model innovation they are considering is consistent with the current priorities of their existing business model. This analysis matters greatly, the authors write, since it drives a whole host of decisions about where the new initiative should be housed, how its performance should be measured, and how the resources and processes at work in the company will either support it or extinguish it. Business models, the authors point out, "by their very nature are designed not to change, and they become less flexible and more resistant to change as they develop over time."Interdependencies between different elements of the business model grow over time, and the business unit develops increasingly ingrained approaches to solving problems. The authors describe the development of a business model across time as a journey whose progress and route are predictable -- although the time that it takes a business model to follow this journey will differ by industry and circumstance. In the authors'view, a business model, which in an established company is typically embodied in a business unit, travels a one-way journey, beginning with the creation of the new business unit and its business model, then shifting to sustaining and growing the business unit, and ultimately moving to wringing efficiency from it. Each stage of the journey supports a specific type of innovation, builds a particular set of interdependencies into the business model, and is responsive to a particular set of performance metrics. The authors argue that this road-map view of business model evolution helps explain why most attempts to alter the course of existing business units fail. Unaware of the interdependencies and rigidities that constrain business units to pursuing their existing journey, managers attempt to compel existing business units to pursue new priorities or attempt to create a new business inside an existing unit.

In this article, author William R. Kerr, who has researched global ventures for two decades, examines subtle but critical differences in how globalization is leveraged even among organizations that seem on the surface to be quite similar (for example, businesses engaged in outsourcing). Traditional approaches to globalization start with a mindset of taking the company's best products or services to global markets and often use cross-border opportunities to lower costs (what the author describes as "globalizing the best that your company can offer"); the core focus is on how globalization can enhance existing products and profit formulas. However, other organizations, the author notes, build their businesses on top of globalization (what he calls "harnessing the best that the world has to offer"). Such businesses display a sharp external focus, harness the resources and ideas of others, and aspire to achieve a large global footprint quickly. Although the digital economy can enable these ventures, the real differentiator, the author argues, is the managerial approach taken toward the business. In addition to looking at Airbnb and Uber, the article examines the global strategies of several companies, including Upwork Global, Alvogen, Rocket Internet, and Home Essentials (HK) Limited. The article highlights best practices that can support managers in globalizing their businesses, ranging from tailoring the businesses for the local environment to leveraging global network effects. Moreover, it looks at the issue of operational complexity and how considering the trade-offs between the benefits and costs can help managers find the optimal global footprint for their organization.

This is an MIT Sloan Management Review Article. Digitally savvy executives are already aligning their people, processes, and culture to achieve their organizations' long-term digital success.

This is an MIT Sloan Management Review Article. We found that obtaining business value using the connections the IoT creates between an organization and its customers, suppliers, and competitors depends on companies'willingness to share data with other organizations.

A year after a massive data breach at its Ashley Madison adultery service, Avid Life Media relaunched in 2016 under a new name. The move was designed to help the business recover from the hacker attack that had exposed its security and governance issues and dashed the desire of investors to take the company public. It was also a strategic step to regain the trust of customers who had been outed as would-be cheaters. Now known as Ruby, the company has new leadership, and Ashley Madison has dropped the tagline “Life Is Short. Have an Affair.” and replaced it with “Find Your Moment.” While announcing these moves, the CEO assured wedding-vow breakers that the controversial business intended to remain “true to our roots.” <br><br> Ultimately, a business founded to help people deceive their partners will have a fraught reputation regardless of the parent company’s name. That’s why Ashley Madison is a case study that keeps on giving. Long before a hacker group exposed the personal information of millions of Ashley Madison members, we developed an Ivey case study based on Avid Life’s first attempt to go public in 2010. Back then, the business’s controversial nature and aggressive founder were seen as free publicity. Further, the company was considered well-run and profitable. Yet Avid Life failed to attract investment in 2010, which raised issues about the function of businesses, e.g., the shareholder perspective versus the stakeholder perspective. Boardrooms still debate how best to balance the duty to generate returns for shareholders with growing public expectations of corporate social responsibility. To help understand the reputational issues involved, there is perhaps no better case than the jilting of Ashley Madison by investment bankers, who are not typically seen as the moral compass of society.

Want an easy way to become a better leader in the age of uncertainty? Read philosophy. It helps remind us about what we should instinctively already know: to never be afraid to ask questions. As Bertrand Russell said: “To teach how to live without certainty, and yet without being paralyzed by hesitation, is perhaps the chief thing that philosophy, in our age, can still do for those who study it.” Brexit should drive business leaders to review existing strategies and pay extra attention to agility when planning business models. This, of course, requires facing the unknown. And the most powerful weapon for senior managers today is being comfortable in facing uncertainty. After all, unless you’re willing to put decision making on indefinite hold, you must learn to calmly get over the challenges of the unknown and make a call. But just being able to boldly move forward isn’t enough because no organization benefits from blind leaps forward. The key is finding the prudent middle ground between being reckless and timid when facing the unknown. And one of the best ways to learn how to do that well is through understanding philosophy, which complements business smarts and other skills taught in business programs. Philosophy is the study of knowledge through critical thinking and questioning — and that’s where the return on time invested for executives sits, because philosophy sharpens their questioning technique and answer-interpretation skills.

To compete in the digital age, most companies understand that they must see digital and analytics capabilities as a core competency and strategic priority. But with the supply of talent falling further behind demand, attracting elite talent has proven difficult, especially for organizations playing catch-up. Even companies with advanced digital and analytics capabilities are struggling to meet their needs. The challenge is only getting harder, as demand is expected to grow significantly. Based on input from nearly 450 senior executives, A.T. Kearney’s second annual LEAP study validated its view that companies face growing challenges in seeking to build their digital and analytics talent. The authors define four levels of the analytics organization: 1. Leaders: Companies that deploy analytics to generate foresight on future business trends and to play a role in decision-making innovation. 2. Explorers: Companies that use analytics to predict trends to optimize business performance. 3. Followers: Companies that deploy analytics to understand and manage the drivers of cost and revenue. 4. Laggards: Companies that use analytics in the limited role of viewing past performance. <br><br> Various strategies used by leading firms to hire and retain intelligent, driven people who can work seamlessly at today’s intersection of technology, analytics, and business include: building a unique digital and analytics brand; embracing rotational programs; using cross-disciplinary teams; and building industry–university partnerships. Understanding a firm’s unique needs is key to determining how to go about hiring and retaining the right people to address those needs. Nevertheless, success in today’s marketplace requires a new normal in which digital and analytics capabilities are core to operations. Figuring out how to attract and retain “trilinguals” is the key to offering a distinct competitive advantage.

This article reviews the role of a global commercial organization, The Coca-Cola Company, in contributing to national stability in developing markets through a strategic approach to social and economic contribution. The company's initiatives complement the role of policymakers, who are primarily responsible for the safety and prosperity of citizens, often using the Golden Triangle model that aligns government, civil society, and the private sector. Examples are drawn from the empowerment of women and youth; leverage of specialist expertise in water replenishment and in distribution and logistics; the impact of global standards of compliance; and the creation of high-value jobs throughout the expansive value chain. The Coca-Cola system is global in scale but multi-local in its operations, leveraging universal human traits with high relevance in individual markets.

Ethical leadership can lead to many positive organizational outcomes. Previous studies have shown a correlation between ethical conduct and profitability; in addition, firms that have high ethical standards have fewer legal issues. The existing ethical leadership literature assumes a stable external environment. The business and peace literature, on the other hand, assumes instability but has thus far largely ignored the role of leadership within companies as a possible driver of peacebuilding activities. The practitioner community has already begun to recognize that leaders of organizations are the key drivers of change in the peacebuilding context. The Business for Peace Foundation, the foremost organization in the practitioner community, gives its annual award to business leaders who promote peace within their organizations and communities. These Business for Peace honorees represent the 'ethical leadership' qualities of peace promotion, without reference to academic theories in either area. We conducted semi-structured interviews with the 2015 Business for Peace honorees and combined those with their public speeches at the Business for Peace events to examine what role these business and peace leaders saw between ethical leadership and peace promotion. Unlike the academic research that suggests only a theoretical and sometimes a direct but tangential connection to peacebuilding, the honorees highlight the direct and visible connection of ethical leadership to peace in unstable environments. We begin by describing the relevant business for peace and ethical leadership literatures. Then we highlight the significant aspects of the interviews and speeches and relate these to the prevailing theories of both business and peace and ethical leadership.

Businesses have many opportunities to foster sustainable peace. To illustrate the possibilities and limits of businesses reducing violence, we describe the case of ABN AMRO in Brazil and its social program in Novo Lino, one of the poorest municipalities in the country characterized by high levels of violence toward children. With ABN AMRO's support, Novo Lino was able to significantly improve the living conditions of abused children assisted by the social project and raise awareness of children's rights protection. However, despite the corporation's efforts, the project ended after ABN AMRO withdrew its financial support. This case study intends to stimulate discussion on the roles and possibilities of corporations in the social context of extreme poverty. We conclude that businesses need to adopt an integrated approach that simultaneously addresses the several factors related to extreme deprivation and reduces the likelihood of violence in situations of extreme poverty.

While we know that business is key for stable peacebuilding, less is known about why business actually becomes involved in peace processes and peacebuilding. Based on a review of the academic literature and of case studies at the global level, this article addresses this question from three perspectives: First, business needs peace to solve specific problems related to their operations in unstable contexts. Second, some business leaders believe that social change is positive and in their self-interest and are willing to promote transformations (creed). Finally, business participation in peacebuilding may be motivated by the anticipation of renewed investment, profit, and growth (greed). The article argues that none of these perspectives alone can explain the bulk of business participation in peacebuilding efforts. Rather, depending on actor and context, each business strategy can be traced to multiple combinations of these motivations. The article suggests that simplistic generalizations hurt the development of desperately needed partnerships in mutual learning processes between business and other social actors. We need improved knowledge and understanding of the mechanisms of private sector decision making in transitional processes in order to stem unrealistic expectations or frustrations as to the capability and willingness of the private sector in supporting peace-related activity. This interdisciplinary approach should draw from management sciences, political science, and economics.

With the growing role of the private sector in global politics comes increasing challenges and opportunities, an example of which is conducting business in pre- and post-conflict environments. While the extant business literature discusses the work these actors can do to reduce tensions in conflict zones, the role of these actors is notably absent in studies of conflict resolution. In this article, I offer an overview of the findings on conflict resolution processes by scholars in the field of political science. I then draw from business scholarship and offer an overview of the positive contributions the private sector can and does make toward peace. I conclude by highlighting the problems of having disjointed approaches and offering a conceptual framework for how these distinct approaches can be combined to generate a more comprehensive understanding of conflict resolution.