Paul Michelman, editor-in-chief of MIT Sloan Management Review
Within the next five years, how will technology change the practice of management in a way we have not yet witnessed?
MIT Sloan Management Review posed this question to 15 of the world’s foremost experts on the intersection of technology and management who responded in a series of essays available in MIT SMR’s new Fall issue, published online today. The essays were commissioned to celebrate the launch of the magazine’s new Frontiers initiative. Appearing as part of both the print and digital editions, Frontiers explores how technology is reshaping the practice of management.
MIT Sloan Prof. Simon Johnson
Not surprisingly, at least some people at the Securities and Exchange Commission have reacted negatively — this is stepping onto their turf, after all. And the lobbyists are, naturally, out in full force.
But with sufficient White House willpower, the administration can see this through. What is needed is a change in the rules set by the Department of Labor, which has jurisdiction over retirement-related issues.
No doubt industry defenders will claim that current practices benefit small investors — a point disputed directly by the CEA. The broader and more interesting question is: Where are the statesmen in the financial industry? Where are the leaders who push for a race to the top, by better serving their clients’ best interests?
MIT Sloan Professor Catherine Tucker
When Google joined the social networking space in 2011 with Google+, more than 25 million people joined in the first month. Now the number of true users on Google+ is less than 1% of the total 2.2 billion users on Google, according to a report by Stone Temple Consulting.
Some of the decline may be explained by the fact that a Google+ profile was created automatically when people registered for Google. That alone would generate an impressive number of profiles, but wouldn’t necessarily lead to active use of the social media platform. According toForbes, just 6.7 million users have 50 or more posts ever, and only 3.5 million have 50 or more posts in the last 30 days.
MIT Sloan Professor Richard Schmalensee
From Harvard Business Review
When most of us think of multisided platforms, the ones that come to mind are those, like Apple and Facebook, that make heaps of money. Or unicorns like Uber that, if cap tables mean anything, someday will. Of course, anyone who really knows the history of platforms may recall the many that aspired to make gobs of money but never did and quickly died (think of the many B2B exchanges that never made it to the other side of dot-com bust). And don’t forget your brother-in-law’s great platform idea, which will make you both rich if only you would invest your life savings in his startup.
What’s amazing, though, is that there are many platforms that have created massive value, but have never made a profit, and don’t even strive to make money — on purpose.
Most likely, you have of one of the worldwide champs in this category in your wallet. MasterCard and Visa didn’t make, or even look, for profits for decades. MasterCard started as a not-for-profit membership association, in 1966, and Visa did the same, in 1971. Both associations managed their brands and ran the clearing and settlement systems for banks that issued cards or helped merchants accept cards. These card networks were allowed to charge their members just enough to cover cost and provide working capital. (For more on this, read Dee Hock’s book about starting up the Visa network.)
Hal Gregersen, Executive Director of the MIT Leadership Center
At age four, we’re fueled with curiosity, asking thousands of questions to better grasp what’s going on around us. Already we are aware, at a very fundamental level, that questioning helps us feel our way around a situation and develop entirely new ways of engaging with the world.
It isn’t long, however, before we enter an educational system that rewards answers more than questions. Consider that the average child between six- to 18-years old asks only one question per one-hour class per month. Contrast that with the average teacher, who peppers kids with 300 to 600 questions a day and waits an average of one second for each reply, and you have a recipe for what I call the “Global Questioning Crisis.”
As adults, many leaders perpetuate this answer-centric culture, playing it safe as they get things done. But, based on my research and firsthand conversations with the most renowned leaders of our time, high-impact innovators know that they must question to disrupt, or risk being disrupted. As such, they sustain this critical skillset, not just by asking more questions, but by identifying the “hot” questions – ones that are provocative, emotional and downright uncomfortable – while also encouraging those around them to be passionate about the same. Finally, they actively pursue answers to these hot questions by leveraging several key discovery skills – observing, networking, experimenting, and associational thinking.