MIT Sloan Senior Lecturer Douglas A. Ready
From MIT Sloan Management Review
Great leaders are distinguished by their ability to master personal relationships.
“Without mastering collaborative relationships, both inside and outside the company, we won’t produce the outcomes needed to win our customers’ business.”
— Lori Beer, chief information officer, JPMorgan Chase
Mastering personal relationships that build trust and create a collaborative work environment is central to leadership effectiveness in the digital economy. This skill set distinguishes great leaders from merely good ones, based on my interviews with C-suite executives in companies around the world.
In a digital business environment, great leaders are those who appreciate and understand the power of technology and analytics. But that alone is insufficient. They must also have the skills and mindsets to bring together people from diverse businesses and functions to deliver superior customer outcomes. As Lori Beer, CIO at JPMorgan Chase, says:
“We don’t need everybody to know how to write the perfect API, but we do need people with a passion for working together to create an understanding of how those APIs, a blockchain, the cloud, AI, and machine learning can change the way you think about delivering services to our customers.”
MIT Sloan Professor Christian Catalini
We hope you’ll tune in to the next installment of the MIT Sloan Experts Series
Join us on November 7 at 12 noon ET for a live conversation with Christian Catalini, co-creator of Libra, Facebook’s cryptocurrency initiative, and the Head Economist at Calibra, the Facebook subsidiary in charge of the launch. Catalini, a professor at the MIT Sloan School (on leave) and an expert in blockchain, will explain how Libra works, how you will be able to use it once it goes live, and what Calibra is doing to address issues around privacy and security.
Michael Cusumano, Professor of Management at MIT Sloan and co-author of the book, The Business of Platforms: Strategy in the Age of Digital Competition, Innovation, and Power, among others, will weigh in on the political and regulatory challenges that Libra faces.
You will be able to view the live show by bookmarking this page and tuning in November 7 at 12 noon ET.
MIT Sloan Senior Lecturer Otto Scharmer
The Fridays For Future (FFF) climate strike by high school students may well be one of the most important, yet hardly covered stories by the US media today. During the week of March 15th alone, 1.6 million strikers were counted across 125 countries. This environmental movement to reduce carbon emissions was started by Swedish teenager Greta Thunberg in late 2018. In the meantime, a discussion has ensued among politicians in Germany about whether it is the right thing for students to take to the streets instead of the classroom on Fridays.
The principles below weigh in on this conversation from a bigger picture view: how to “update” the world’s educational system, particularly the university, to tackle the technological, environmental, and social disruptions of the 21st century. See figure 1.
Mohammad Jalali, MIT Sloan Research Scientist
From MIT Sloan Management Review
How cybersecurity can affect the market for smart products.
Smart devices, once relegated to science fiction and our imaginations, are now ubiquitous. Today, there’s a market for everything from a Wi-Fi connected refrigerator to a voice-operated speakerthat doubles as a personal assistant. The internet of things (IoT) — the software-operated network of physical devices, appliances, vehicles — grows day by day as these devices become part of our daily lives. A March 2018 survey found that 22% of Americans used IoT appliances in their homes, and this trend is widespread across the globe. Amazon recently announced a plan to expand Amazon Echo services to Italy and Spain.
For consumers, the concept of easily operated, highly adaptable products is great. Smart devices are convenient, useful, and fun. However, many people remain skeptical or anxious about this level of connectivity. News of products leaking private information or being remotely hacked has led customers to fear for their personal safety and reconsider hooking up physical appliances to vulnerable networks.
Tim Kraft, Visiting Assistant Professor of Operations Management
Karen Zheng, Associate Professor of Operations Management
Do consumers place a monetary value on supply-chain visibility? Are they willing to pay more for a product that is “socially responsible”?
A new study led by two professors at the MIT Sloan School of Management suggests that the answer is yes – at least to a point. Tim Kraft, visiting assistant professor of operations management, and Karen Zheng, associate professor of operations management, set up a “behavioral lab” that mimicked the dynamics of a real-world supply chain. It consisted of a three-player game, with participants playing the roles of consumer, seller and worker.
The experiment examined whether a consumer is willing to pay more for a given product if the seller provides visibility into its treatment of factory workers. The decisions of all players directly impacted their ultimate payments. So how much of a premium did the “consumers” agree to pay for products of the socially responsible “seller”? How did their actions affect the lot of the “worker”? And can a limited experiment of this type really mirror behavior in the real world?
Listen to the full podcast at SupplyChainBrain.
Tim Kraft is a Visiting Assistant Professor of Operations Management at the MIT Sloan School of Management.
Karen Zheng is a Sloan School Career Development Professor and an Associate Professor of Operations Management at the MIT Sloan School of Management.