Join the #MITSloanExperts “Superminds: The Surprising Power of People and Computers Thinking Together” Twitter chat, June 26

Superminds: The Surprising Power of People and Computers Thinking Together

MIT Sloan’s Thomas Malone and Brian Moran, CEO of Brian Moran & Associates, dedicated to helping small business owners and entrepreneurs run better businesses, and previous Executive Director of Sales Development at the Wall Street Journal, will discuss Malone’s new book, Superminds: The Surprising Power of People and Computers Thinking Together, which shows how groups of people working together in superminds have been responsible for almost all human achievements in business, government, science, and beyond., during a Twitter chat on June 26th at 2 p.m. EDT.

Thomas W. Malone is the Patrick J. McGovern (1959) Professor of Management at the MIT Sloan School of Management and the founding director of the MIT Center for Collective Intelligence. At MIT, he is also a Professor of Information Technology and a Professor of Work and Organizational Studies. Previously, he was the founder and director of the MIT Center for Coordination Science and one of the two founding co-directors of the MIT Initiative on Inventing the Organizations of the 21st Century. Malone teaches classes on organizational design, information technology, and leadership, and his research focuses on how new organizations can be designed to take advantage of the possibilities provided by information technology.

Malone will discuss his work with host Brian Moran, the CEO of Brian Moran & Associates, dedicated to helping small business owners and entrepreneurs run better businesses. Previously, he was the Executive Director of Sales Development at the Wall Street Journal, and was President of Veracle Media and Moran Media Group, two companies that provided guidance to business owners to help them start, manage and grow their companies.

Join us on Twitter on June 26 at 2 p.m. ET, follow along using #MITSloanExperts, and potentially win a free copy of Superminds: The Surprising Power of People and Computers Thinking Together.

Public companies are about to be flooded with cash, how will they spend it? – Robert Pozen and Robert Steel

MIT Sloan Senior Lecturer Robert Pozen

MIT Sloan Senior Lecturer Robert Pozen

From Fortune

U.S. companies will soon experience a tsunami of free cash flow. Because of the new Trump-GOP tax plan—the Tax Cuts and Jobs Act—we estimate American companies will have over $2.6 trillion of additional cash over the next five years. This will come from three sources: repatriated overseas cash, future foreign earnings, and lower corporate taxes on domestic profits. The critical question is: What will companies do with this inpouring of cash?

For years, many CEOs of public companies have complained of pressure by analysts and activists to focus on short-term profits rather than long-term growth. Now each CEO has a great chance to put their money where their mouth is.

CEOs have two main alternatives for this incremental cash flow; they can boost short-term returns to shareholders through higher dividends and share repurchases, or they can augment long-term growth by investing in plants, people, research, and technology acquisitions.

For the sake of their credibility and the American economy, we urge CEOs to invest in long-term growth, and not in share buybacks as they did in 2004.

Read More »

China, the innovation dragon – Simon Johnson and Jonathan Ruane

MIT Sloan Professor Simon Johnson

From Project Syndicate

China has achieved much since 1978, when Deng Xiaoping initiated the transition to a market economy. In terms of headline economic progress, the pace of China’s transformation over the past 40 years is unprecedented. The country’s GDP grew by nearly 10% per year on average, while reshaping global trade patterns and becoming the second-largest economy in the world. This success lifted 800 million people out of poverty, and the mortality rate of children under five years old was halved between 2006 and 2015.

The question now is whether China, well positioned to become the world’s innovation leader, will realize that opportunity in 2018 or soon after.

China’s transformation has been underpinned by an unprecedented manufacturing boom. In 2016, China shipped more than $2 trillion worth of goods around the world, 13% of total global exports. It has also pursued economic modernization through massive infrastructure investment, including bridges, airports, roads, energy, and telecoms. In less than a decade, China built the world’s largest bullet train system, surpassing 22,000 kilometers (13,670 miles) in July 2017. Annual consumption is expected to rise by nearly $2 trillion by 2021, equivalent to adding another consumer market the size of Germany to the global economy.

Earlier this month, Apple CEO Tim Cook declared that, “China stopped being a low-labor-cost country many years ago, and that is not the reason to come to China.” The country’s manufacturing strengths now lie in its advanced production know-how and strong supply-chain networks. Understandably, China’s leadership wants to increase productivity and continue to move further up the value chain.

Read More »

The Power of Leaders Who Focus on Solving Problems – Deborah Ancona and Hal Gregersen

From Harvard Business Review

Hal Gregersen, Executive Director of the MIT Leadership Center

Hal Gregersen, Executive Director of the MIT Leadership Center

MIT Sloan Prof. Deborah Ancona

In front of a packed room of MIT students and alumni, Vivienne Ming is holding forth in a style all her own. “Embrace cyborgs,” she calls out, as she clicks to a slide that raises eyebrows even in this tech-smitten crowd. “Really. Fifteen to 25 years from now, cognitive neuroprosthetics will fundamentally change the definition of what it means to be human.”

She’s referring to the work that interests her most these days, as cofounder of machine learning company Socos and a visiting scholar at UC Berkeley’s Center for Theoretical Neuroscience. (“So — can I literally jam things in your brain and make you smarter? If you’re curious, the answer is unambiguously yes.”) But the talk has covered a lot more than this, as Ming has touched on many initiatives and startups she’s been involved with, all solving problems at the intersection of advanced technology, learning, and labor economics.

She’s an entrepreneur, a CEO, and a teacher — all leadership roles — but when we ask her about her leadership style, she demurs. “What I’ve learned about myself as a leader, as an executive, is — I’ll be blunt — I’m a pretty mediocre manager. I try to do the right things, but I’m much more focused on problems than I am on people, and that’s not always that healthy.” While she’s utterly confident in herself, she just doesn’t identify as top management. She’s happier to think of herself as a data scientist, a computer geek. She loves talking about hacks she’s pulled off — like the alterations she made to her diabetic son’s medical devices, so she could merge all their data to produce a predictive model. Now, she gets an alert an hour in advance if a spike or drop is coming in his blood glucose level. This is an unprecedented, and highly valuable, thing. “Turns out, it broke several federal laws,” she laughs.

Ming is a tech optimist, believing that all kinds of previously intractable problems will be able to be solved as the tool kit for addressing them is developed. And she’s decided her best way of contributing to that progress is to keep honing her individual-contributor skills. “For a long time, I tried to be the whole package. I put a lot of energy into making certain that I was shepherding everyone along, doing all the right things for my teams. Then I realized: You know what? If I can get some people that are really good at the things that I’m not, then I can focus on my strengths. And my strengths are in creative problem solving — all the way down to writing the code myself.” Read More »

What to do when an employee reports sexual harassment – Daena Giardella

Daena Giardella, MIT Sloan Sr. Lecturer

From Quartz

We know from the 2016 EEOC report on harassment in the workplace and other studies that between 25% and 85% of women, and between 11% and16% of men, say that they have experienced sexual harassment.

That means that, if you’re a manager, it’s very likely that you’ll encounter a sexual harassment situation at some point in your career. You may learn about it anecdotally, or it might arrive at your desk as a formal report or notification from HR or elsewhere.

How you react can determine whether you’re able to build open teams that encourage everyone to have a voice. Here are important steps you should take:

Know the process. It is your responsibility to know your organizational policies, protocols, and investigatory processes as well as what you would need to do. If these procedures are unclear, you should take initiative now to make changes to clarify them. Keep in mind that multiple report pathways and strict protocols are crucial. Read More »