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Conventional wisdom suggests that negotiators need alternatives to succeed. Alternatives give negotiators the confidence to negotiate offers more ambitiously, to push for more optimal outcomes, and to walk away from the table when needed. But negotiators often have no alternative at all. For example, a recent survey by GMAC suggests that the average MBA graduate only has a single job offer to choose from, suggesting that many MBAs have to negotiate their job offer without an alternative to fall back on.
So what can you do if you lack an alternative? How can you w [...]
“If you went to bed last night as an industrial company, you’re going to wake up this morning as a software and analytics company.” Jeff Immelt, former CEO of General Electric
The second wave of digitization is set to disrupt all spheres of economic life. As venture capital investor Marc Andreesen pointed out, “software is eating the world.” Yet, despite the unprecedented scope and momentum of digitization, many decision makers remain unsure how to cope, and turn to scholars for guidance on how to approach disruption.
The first thing they [...]
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Leaders today hear a lot about the importance of having good networks. For example, firms with better-connected CEOs can obtain cheaper financing, and firms with well-connected board directors see better performance. We wanted to explore whether the diversity of CEOs’ networks might affect their firms.
Our study, published in the Journal of Corporate Finance, found that CEOs with strong connections to people of different demographic backgrounds and skill sets create higher firm value. We also found that this greater firm value comes from better corporate inno [...]
Hayon Thapaliya for HBR
There is a paradox when it comes to what we expect in leaders. On the one hand, we believe that effective leaders display humility — they bring out the best in others, are open to admitting their shortcomings and mistakes, and give appreciation and credit to their followers. Recent public scandals demonstrate what lack of humility can do in a public setting. Take United Airlines CEO Oscar Munoz, whose initial response to the violent removal of a fare-paying passenger from one of the company’s planes led to a public backlash. Or the notorious [...]
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The relentless rise of online retailers has led to deep soul searching among brick-and-mortar retailers to find ways to compete. The traditional methods of competing through convenience, assortment, and pricing are largely ineffective against online retailers who outperform brick-and-mortar retailers in these dimensions. The last arrow in the quiver is to use service as a way to distinguish themselves from online retailers. Yet, research suggests that retailers tend to view store associates as an expense to be controlled rather than as a medium to provide bett [...]
The Miriam and Ira D. Wallach Division of Art/The New York Public Library
The Industrial Revolution, which brought together large-scale coal-based industries like mining, steel, pottery, and textiles, helped create the foundation of modern society and wealth. At the same time, the early industrial economies that formed in this era were also associated with brutal working and living conditions. Our research, recently accepted by the Journal of Personality and Social Psychology, shows that areas where coal was king may still be feeling the effects.
In countries like the UK and the U.S. that in [...]
Kenneth andersson for hbr
Many countries and regions declare that they want to develop their own Silicon Valley and be a hub for innovation. The page for Technology Centers on Wikipedia, for example, lists no fewer than 90 places that have billed themselves as “Silicon This” or “That Valley”, hoping to emulate the Valley’s success in generating innovation. It is usually followed by a variety of policy initiatives, such as R&D tax credits, public grants for innovation, public procurement of innovation, grand innovation challenges, and support for intellectua [...]
Dave Wheeler for HBR
A hundred fifty years ago, poet Emily Dickinson described loneliness as “the horror not to be surveyed, but skirted in the dark.” Had she been running a modern company, she might have felt differently. Loneliness should be as important to managers, CFOs, and CEOs as it is to therapists. The last half-decade of research has demonstrated that loneliness threatens not only our physical health and well-being, but also our livelihood. Research shows that loneliness has the same effect as 15 cigarettes a day in terms of health care outcomes and health care co [...]
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A person’s gender, race, and age are often fairly obvious at first introduction. But many other meaningful characteristics — such as a person’s religion, sexual orientation, or parental status — are not immediately visible. People whose invisible characteristics are commonly stigmatized or devalued in the workplace have to make decisions regarding if, when, how, and to whom they will disclose these identities to, while weighing the costs and benefits of their choices.
Undoubtedly, prejudice and discrimination post-disclosure [...]
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You’ve probably encountered managers you admire more for their technical skills than for their actual leadership skills.
Perhaps it’s the familiarity of this experience that lends the Peter Principle its popular appeal. The Peter Principle, laid out in a 1969 book by Dr. Laurence J. Peter, describes the following paradox: if organizations promote the best people at their current jobs, then organizations will inevitably promote people until they’re no longer good at their jobs. In other words, organizations manage careers so that everyone “ri [...]
Osman Rana/Hayon Thapaliya/Unsplash
Cyberattacks are on the rise, with over 1,000 data breaches occurring at U.S. organizations in 2016 alone, most often through hacking or external theft. And it isn’t only violated firms that are hurt by these incidents. Studying hundreds of data breaches, our research has found that they create significant ripples that affect other companies in the industry.
Our research shows that data breaches sometimes harm a firm’s close rivals (due to spillover effects), but sometimes help them (due to competitive effects). What is more, we found [...]
GABRIEL BOUYS/Staff/Getty Images/Hayon Thapaliya
Entrepreneurs often seek external capital to accelerate their growth. This is especially true in hotly contested markets where fast growth can be the difference between success or failure. And yet this outside funding may come with strings attached, which can (and perhaps should) give entrepreneurs pause. Founders will likely find their influence diluted, in terms of both financial equity and their control over the board of directors. They may even find themselves out of a job if their investors decide to fire them and find [...]