ICYMI: the #MITSloanExperts “Shaping the Future of Work” Twitter chat

MIT Sloan Professor Thomas Kochan

MIT Sloan Professor Thomas Kochan

“Will artificial intelligence help job creation or put people in the unemployment line?”
“Who should pay for retraining so employees can adapt to the technological age?”
“What role does government play in the future of work?”

These were just some of the questions asked and answered last week during the #MITSloanExperts “Shaping the Future of Work” Twitter chat, featuring MIT Sloan’s Thomas Kochan and hosted by former New York Times reporter Steven Greenhouse.

Over the course of an hour, Kochan answered a host of questions pertaining to the future of work and the issues we face as a society as technology advances. More than 100 users chimed in with questions and comments on topics from how the divisive 2016 election is impacting how we work, to generational differences in how work is approached and viewed.

If you missed it, don’t worry – this Storify summarizes everything that was discussed. Stay tuned to the #MITSloanExperts hashtags for future Twitter chats with our roster of experts and guest hosts.

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Preparing for the cyberattack that will knock out U.S. power grids – Stuart Madnick

MIT Sloan Professor Stuart Madnick

MIT Sloan Professor Stuart Madnick

From Harvard Business Review

Cyberattacks are unavoidable, but we’re not going to stop using computerized systems. Instead, we should be preparing for the inevitable, including a major cyberattack on power grids and other essential systems. This requires the ability to anticipate not only an unprecedented event but also the ripple effects that it could cause.

Here’s an example of second-order effects (though not caused by a cyberattack, they’re a good way to think through what could happen in an attack). In February 2017, an area of Wyoming was hit by a strong wind storm that knocked down many power lines. It took about a week to restore power, due to heavy snow and frozen ground. Initially, water and sewage treatment continued with backup generators. But the pumps that moved sewage from low-lying areas to the treatment plants on higher ground were not designed to have generators, since they could hold several days’ worth of waste. After three days with no power, they started backing up. The water then had to be cut off to prevent backed-up waste water from getting into homes. The area had never lost power for so long, so no one had anticipated such a scenario.

Now think about what would happen if a cyberattack brought down the power grid in New York, for example. New Yorkers could manage for a few hours, maybe a few days, but what would happen if the outage lasted a week or more? For an example of the kind of disruption such an attack could cause, consider the 2011 Japanese tsunami. It knocked out both the power lines and the backup generators at the same time. Either event could have been managed, but both occurring at the same time was a disaster. Without power, the cooling systems in three nuclear reactors failed, resulting in massive radiation exposure and concerns about the safety of food and water. The lesson: We need to prepare not only for an unexpected event but also for the possible secondary effects.

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The board’s role in share repurchases – Robert Pozen

MIT Sloan Senior Lecturer Robert Pozen

MIT Sloan Senior Lecturer Robert Pozen

From MIT Sloan Management Review

Capital allocation is a significant function for company directors. How much of the company’s profits gets reinvested in the business rather than distributed to shareholders through cash dividends or share repurchases is a critical decision companies must make. Boards of directors typically approve a dividend policy and precise amounts for each quarter: Everyone knows that cutting the dividend will result in a sharp decline in the share price.

Yet in many companies, decisions about the level and timing of share repurchases are left to management. That stems partly from differences in legal requirements: The board must formally approve the amount of the company’s quarterly dividend but not its repurchases. Moreover, the implementation of the repurchase program is heavily influenced by the company’s actual cash flows.

Nevertheless, share repurchases are something to which directors should pay more attention. Specifically, directors should carefully consider the capital allocated to repurchases relative to the company’s realistic opportunities for value creation through internal development or external acquisitions. They should be highly skeptical of large repurchase programs that are financed by selling debt rather than paid for out of company profits.

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“Gleaners” can help solve hunger, food waste and nutritional deficiencies, if volunteers managed efficiently – Deishin Lee

MIT Sloan Visiting Asst. Prof. Deishin Lee

From the Griffin Report, July, 2017

Food banks have benefited greatly from the incredible generosity of farmers and volunteers who have taken the time and made the effort of gathering produce left in the fields after a main harvest.

Indeed, the practice of “gleaning” which dates back to ancient times, has been growing in recent years as more efforts and associations are organized to meet the simultaneous need of feeding food-insecure persons at food banks and reducing food waste.

Modern-day gleaning in America is a noble endeavor, but is fraught with operational challenges that introduce inefficiencies into the process.

My colleagues Baris Ata, Xiaoli Fan, Miguel Gomez and Erkut Sonmez and I study the root cause of these process inefficiencies and how to address them in a series of papers, based on our work with the Food Bank of the Southern Tier in New York and the Boston Area Gleaners.

We found that a key part of the problem – and ultimately its solution – is tied to how volunteer staff members are utilized in the gleaning process. It’s not necessarily about a lack of volunteers. In its simplest terms, it’s about when and where those volunteers are deployed for gleaning operations.

But before we get into our recent findings on staffing and other key issues, let’s first step back to look at the larger picture of the gleaning activity itself and the challenges it faces.

It’s been estimated that about 6 percent of planted acres go unharvested in the U.S. To be clear: these are edible crops fit for human consumption that will be left in the fields to be plowed under unless someone goes back to harvest, or glean, them.

Simultaneously, it’s been estimated that about 14 percent of U.S. households faces food insecurity. Food insecurity is not just about hunger. It’s also about people not getting the healthy, micronutrient-rich foods that we all need.

So a gleaning operation is ultimately addressing three societal problems: hunger, food waste, and nutritional deficiencies.

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Making economic sanctions on North Korea work – Yasheng Huang

MIT Sloan Professor Yasheng Huang

MIT Sloan Professor Yasheng Huang

From Project Syndicate

China is the only country with the power to compel North Korea to change its nuclear policy. Convincing Chinese leaders to wield that power, by fully isolating the regime economically, must be the international community’s top priority.

Last week, in a brazen rebuff to tough new United Nations sanctions, North Korean leader Kim Jong-un’s regime fired a ballistic missile over the northern Japanese island of Hokkaido – its second launch over Japan in less than three weeks. But, far from indicating that sanctions don’t work, Kim’s move shows that they still aren’t tough enough.

The latest sanctions cap oil imports, ban textile exports, and penalize designated North Korean government entities. Following Kim’s response, sanctions should be tightened even further, to stop all trade with North Korea, including halting all fuel imports.

North Korea is one of the most insular countries in the world. That insularity is a curse for the long-suffering North Korean people, but an advantage for a sanction-based strategy, because only one country is needed to make it work: China.

From an economic perspective, China is the only country that really matters to North Korea, as it controls about 90% of the North’s foreign trade and supplies almost all of its fuel. Yet China’s economy would barely register the effect of new sanctions: North Korea’s annual GDP, at a meager $28 billion, constitutes little more than a rounding error for its giant neighbor.

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