Trump’s rhetoric may topple adage that there’s no such thing as bad publicity — Neal Hartman

MIT Sloan Senior Lecturer Neal Hartman

MIT Sloan Senior Lecturer Neal Hartman

From The Conversation

Is there such a thing as bad publicity?

Donald Trump’s campaign appears to be a test case in whether this old adage is true or not. His business interests are intricately linked to the Trump brand, which has been taking a hit as a result of his more extreme statements and proposals on the campaign trail.

At least in terms of political support, his comments have appeared only to improve his numbers. He’s dominated the polls since July, and repeated predictions that the latest remark would send his numbers tanking have all been wrong.

But how long can Trump continue to alienate and disparage various groups without harming his own brand and broader business deals?

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4 things successful change leaders do well — Douglas A. Ready

MIT Sloan Senior Lecturer Doug Ready

MIT Sloan Senior Lecturer Doug Ready

From Harvard Business Review

We know that two-thirds of large scale transformation efforts fail. But that’s not a terribly helpful piece of information―unless we’re looking for confirmation that this is hard, really hard. What is useful is to understand what leaders can do to substantially increase the odds that their companies won’t be among the two-thirds of those that fail. From my research and work with companies around the world leading large-scale transformation initiatives, here are the four things I’ve found that virtually all successful change leaders do really well:

Recognize embedded tensions and paradoxes

Smart, capable, solid professionals most often perform well in their roles until they reach a level in their organizations at which they are confronted with a series of embedded tensions and paradoxes that make leading effectively much more complicated. The most common paradoxes leaders face when driving a transformation effort are:

  1. Revitalization vs. Normalization. At the core of every change initiative is the desire to breathe new life into the organization―to revitalize ways of thinking, behaving and working. But one change initiative often morphs into many, and before long employees become “change weary.” Thus, we find ourselves in the conflicted situation of needing revitalization but desiring normalization.
  2. Globalization vs. Simplification. Doing business today means doing business globally, but the complexities brought on by globalization are often in conflict with the need for organizations to make it simple for customers to do business with them. Leaders struggle with creating organizational responses that address the need to master globalization while offering customers and employees optimal simplification.
  3. Innovation vs. Regulation. Many organizations, particularly in the aftermath of the global financial crisis, are saddled with trying to do business, let along innovate, under increasingly crushing regulatory environments. This is a stifling tax on a company’s capacity to find creative approaches to solving unmet customers’ needs. As such we struggle with the tension between the desire to boost innovation and the need to operate under increasing regulation.

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How to succeed when facing digital disruption — Jeanne Ross

Jeanne Ross, Director & Principal Research Scientist at the MIT Sloan School's CISR

Jeanne Ross, Director & Principal Research Scientist at the MIT Sloan School’s CISR

From TechCrunch

In a digital economy, companies are constantly faced with opportunities, challenges and threats. Business changes are critical to successfully navigate in this environment, but there are plenty of pitfalls to watch for along the way.

Some companies, like those in the media space, are probably closer to the head of the pack in addressing these issues. They’ve either survived or not at this point. Others, in areas like retail and financial services, are in the eye of the storm, while industries like oil and gas and consumer goods see this more as an issue on the horizon.

Regardless of where they are in dealing with digital disruption, everyone’s assumptions about what is necessary to succeed are being shaken up. Digital disruption comes at you in unexpected ways, and businesses need to be prepared. MIT’s Center for Information Systems Research (CISR) has been studying this issue for years through case studies, interviews and surveys. Based on that research, we’ve identified five propositions about thriving during digital disruption.

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New technology might help rein in big banks — Simon Johnson

MIT Sloan Prof. Simon Johnson

MIT Sloan Prof. Simon Johnson

From ShanghaiDaily.com

After nearly a decade of crisis, bailout and reform in the United States and the European Union, the financial system — both in those countries and globally — is remarkably similar to the one we had in 2006. Many financial reforms have been attempted since 2010, but the overall effects have been limited. Some big banks have struggled, but others have risen to take their place. Both before the 2008 global financial crisis and today, just over a dozen big banks dominate the world’s financial landscape. And yet the ground is shifting beneath the financial sector, and big banks could soon become a thing of the past.

Few officials privately express satisfaction with the progress of financial reform. In public, most of them are more polite, but the president of the Federal Reserve Bank of Minneapolis, Neel Kashkari, struck a chord recently when he called for a reevaluation of how much progress has been made on addressing the problem of financial institutions that are “too big to fail” (TBTF).

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Investors should worry about China’s debt-burdened cities — Deborah Lucas and Doug Criscitello

MIT Sloan Prof. Deborah Lucas

MIT Sloan Prof. Deborah Lucas

Doug Criscitello, Executive Director of MIT’s Center for Finance and Policy

Doug Criscitello, Executive Director of MIT’s Center for Finance and Policy

From Fortune

High rates of debt growth by local governments are a cause for concern in any country. In China, where recent turmoil in the equity and foreign-exchange markets has put a spotlight on that country’s economy and growth prospects, increasing levels of borrowing by provincial and other lower levels of government has resulted in local indebtedness rising nearly four-fold since 2008, reaching about 40% of GDP.

Debt growth of that magnitude raises concerns about fiscal sustainability, debt affordability, transparency and accountability. Cautionary tales abound. From New York City in the ‘70s, emerging market countries in the ‘80s, Russia in the ‘90s, and Detroit, Greece and Puerto Rico more recently, there is a long list of governments that have experienced the painful economic repercussions of taking on debt they could not afford.

While the massive debt buildup in China presents challenges, the situation is not as dire as a full-blown debt crisis, a new policy brief from the MIT Center for Finance and Policy by Xun Wu, a visiting scholar, suggests.

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