Can corporate America afford to walk away from President Trump? – Neal Hartman

MIT Sloan Senior Lecturer Neal Hartman

MIT Sloan Senior Lecturer Neal Hartman

From The Conversation

After campaigning as the candidate best able to work with business, President Donald Trump has shown he is anything but.

stream of resignations from high-level business counsels hit a crescendo recently when Trump was forced to disband two executive councils. The widespread and public defections were in protest over his unwillingness to unequivocally condemn racism and intolerance over the violence in Charlottesville, Virginia.

As an expert in organizational communication and leadership, I saw the dismissal of the councils as a dramatic and important moment in the relationship between top business leaders and the president. But does it spell the demise of the often difficult partnership between President Trump and corporate America?

A permanent breach?

CEOs like Merck’s Ken Frazier rightly voted their conscience when they began to abandon Trump’s American Manufacturing Council and the Strategic and Policy Forum. Frazier, the first to resign, said he felt “a responsibility to take a stand against intolerance and extremism.”

The Wall Street Journal, however, was quick to point out that many companies have stopped short of saying they would refuse to work with the White House in the future.

Indeed, despite the heated rhetoric, one thing is clear: Corporate America wants and needs to work with the administration, while the president benefits from a healthy relationship with America’s CEOs.

So if they both need each other, the question becomes how this increasingly tenuous relationship will play out.

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How should companies operate in the age of Trump? – Daena Giardella

Daena Giardella, MIT Sloan Sr. Lecturer

From The Hill

“Sensemaking,” one of the four leadership capabilities, is the ability to make sense of what is happening in the greater marketplace and discern emerging changes and patterns. In the era of President Trump, business leaders and CEOs need to shift their sensemaking skills into high gear. Along with that, they may have to exercise Improvisational Leadership skills in the Trump universe.

CEOs, like the rest of the country, are faced with the challenge of making sense of Trump’s policies and actions, but his favorite method of communication – Twitter – sows chaos not clarity. Typically, when CEOs or leaders want to convey an important message, they talk to key stakeholders, convene a meeting, or give a nuanced speech to build relationships and foster buy-in with targeted audiences. A tweet has no eye contact, nod, smile, or handshake. A tweet’s brevity can foster confusion because it has no context.

Tweets by the president singling out specific companies with thumbs up or down can rattle markets, precipitate boycotts, unnerve CEOs and boards, and affect stock prices – if however briefly.But even if they dislike Trump’s tweets, many business leaders are encouraged by the president’s attitude about rolling back regulations; his comments about reducing taxes are music to their ears. However, a reflexive decision to placate or ingratiate oneself to any powerful figure, even the President, may prove to be a big mistake. Trump may be gone in four years, or even sooner, but your customer and client base will be with you for decades.

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Take Back the House – Simon Johnson

MIT Sloan Professor Simon Johnson

MIT Sloan Professor Simon Johnson

From Moyers & company

The House is designed to reflect public opinion, and this can shift quickly — as we have seen throughout the past two centuries, and under Presidents Clinton, George W. Bush and Obama.

Future historians will trace the unwinding of Trump’s presidency back to a speech at Gettysburg on Oct. 22, in which the candidate made some very specific commitments (watch from the 16-minute mark in this video). Specifically, President-elect Trump faces three serious problems rooted in the way political realities — Republican control of Congress — will force him to govern.

First, Trump will not deliver on what he has promised because he can’t.

His first Gettysburg promise was to “propose a constitutional amendment to impose term limits on all members of Congress” — and there were great cheers in the crowd when he said this. Last Wednesday, Senate Majority Leader Mitch McConnell said term limits will not happen (“We have term limits now; they’re called elections”). There is no way the president can force the Senate Majority Leader (or the Speaker of the House) to bring legislation to the floor. Check the Constitution on that.

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The US can’t beat China’s robots but it can win by building the machines that make them – Matt Beane

MIT Sloan Ph.D. Student Matt Beane

From Quartz

As a US presidential candidate, Donald Trump made keeping manufacturing jobs in the country a key economic issue. He promised to bring back jobs from China, Mexico, Japan, and elsewhere; he pledged to force companies from Ford to Apple to Nabisco to open or re-open factories on American shores; and he vowed to revive the coal and steelmaking industries. His promise to create industrial jobs was key to his electoral victory.

Still, many were—and remain—deeply skeptical of Trump’s plans. Mark Cuban, internet entrepreneur and frequent thorn in the side of the president, says that bringing back manufacturing will backfire and lead to overall job losses. Instead, he says, the US ought to invest in robotics to compete with China. “We have to win the robotics race,” he says. “We are not even close right now.” (For what it’s worth, Trump’s labor secretary Steven Mnuchin recently disagreed, saying robots aren’t even “on my radar screen.”)

Cuban is on the right track, but the fact is that it’s too late to go head-to-head with China on building robots alone. We can’t compete with China’s robot revolution. But we can complement it.

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Transforming capitalism: 7 acupuncture points – Otto Scharmer

MIT Sloan Sr. Lecturer Otto Scharmer

MIT Sloan Sr. Lecturer Otto Scharmer

From The Huffington Post

After a year of disheartening setbacks, many activists and change-makers may feel that the critical goal of transforming capitalism is slipping out of reach. Yet, having just returned from a four-week trip to many sites and gatherings working on social, economic, and spiritual renewal, I feel that the opposite is true. There are more fascinating and eye-opening examples of this transformation emerging worldwide than ever before. But something is missing, something that contributes significantly to the sense that we’re heading in the wrong direction. Simply put, what’s missing is a systemic connection between all these initiatives—an enabling mechanism that allows us to not only connect the dots, but also to see ourselves, and the significance of our work, from the whole. Below, I take you on a tour through the landscape of some current initiatives, and at the end of this journey I propose how we might link up and support the larger landscape of economic transformation.

Transforming Capitalism

In previous columns I have described our current moment of crisis—specifically the rise of Trump, the far right, and populist strongmen—as the result of two factors: (1) the increasing rate of disruption and (2) the lack of a capacity to lean into these moments by letting go of the old and letting come new patterns and possibilities (a capacity I call presencing).

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