What the Market Basket struggle means for Labor — Thomas Kochan

MIT Sloan Professor Thomas Kochan

MIT Sloan Professor Thomas Kochan

From Boston.com

Labor Day traditions call for celebrating worker struggles of the past that helped produce better working conditions for all. This year we have a bona fide case in our backyard that may just usher in a new era of workplace dynamics that future labor commentators will herald.

Arthur T. Demoulas captured the essence of this modern day struggle in his triumphant speech to his employees when he noted that they view their “workplace as more than just a job.”

Today’s workforce, young and old, executive and front line employees alike, want to identify with the mission of their workplace—whether it is serving customers well and providing value for scarce dollars, improving the quality of care to vulnerable patients, inspiring and educating children to reach their full potential, or creating and producing goods that help sustain the planet. When united in a cause people believe in and experience the pride and material benefits of a job well done, a deep culture of shared ownership inevitably develops. When combined with leaders who reinforce by word and actions the importance of teamwork, compassion when personal or family misfortunes arise, and a willingness to respond to community needs, the power of talented, motivated individuals multiplies into social capital no traditional competitor can match.

Read the full post at Boston.com

Thomas Kochan is the George Maverick Bunker Professor of Management, a Professor of Work and Employment Research and Engineering Systems, and the Co-Director of the MIT Sloan Institute for Work and Employment Research at the MIT Sloan School of Management.

How to get employees to be more entrepreneurial — Deborah Ancona

MIT Sloan Professor Deborah Ancona

MIT Sloan Professor Deborah Ancona

From Fortune

Organizational change has never been easy, but in the past it was a little more straightforward. Fifty years ago, companies followed a basic blueprint. They had heroic leaders — a CEO and an elite top layer of management — who had tremendous authority and made all the important decisions. When they wanted to make a change, they set a direction and it cascaded down through the firm.

Today things are different. As companies compete more on speed, agility, and innovation, decision-making needs to get pushed down. Sure, there remain some old-school companies that rely solely on top-down leadership. But in an increasing number of firms, leadership is shared across the organization, often in teams. Command and control is out; collaboration and teamwork are in.

These are positive developments, but they don’t make organizational change any easier to pull off. The key for managers is to create an environment where teams and individuals — even those lower in the organization — have the latitude and autonomy to recommend and try out new ideas, be it a new environmental initiative, a new technology, or a way to seize some new opportunity in a different market. The goal is an entrepreneurial workforce at all levels of the company. Here are some ways to achieve that:

Think beyond the official job title.

Managers tend to put employees into neat little boxes according to their place on the corporate organizational chart. But these boxes make it hard for someone lower down in the organization, without an official title, to vet and test a new idea. There’s a prevailing attitude of: “We need a formal manager to do that.” To combat that tendency when assigning people to projects, consider who has the passion, knowledge, and networks to succeed — independent of that person’s title. If this is not politically possible, then think about creating two-person teams or small groups that include people with the necessary expertise.

Read More »

Keeping creative employees inside the firm — Aleksandra Kacperczyk

MIT Sloan Professor Aleksandra Kacperczyk

MIT Sloan Professor Aleksandra Kacperczyk

From the Chicago Tribune

At a large, established company, several employees get together and hatch a plan for a new business. Eventually, they make the leap, exiting their old firm and launching a venture that takes off and achieves great heights.

This oft-repeated tale is usually considered a business success story. Spin-offs have the potential to generate great value. New companies create jobs and spawn new products and services. When the process starts happening at a number of firms in the same place at the same time, business clusters form, spreading prosperity across an entire region.

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Social responsibility can boost bottom line — Caroline Flammer

Caroline Flammer, Lecturer, Global Economics and Management

We generally think of corporate social responsibility (CSR) as a sort of feel-good policy, as something that is good for public policy or public relations but not a company’s bottom line. But my research finds that good corporate citizenship can actually lead to superior financial performance. A company’s social engagement is actually a resource that can create positive value and improve competitiveness. Read More »

Yasheng Huang: Goldman Sachs’ 10,000 Women Initiative will help train the next generation of Chinese entrepreneurs

MIT Sloan Prof. Yasheng Huang

I am just back from an exciting weeklong trip to China to meet applicants for a new program MIT Sloan is helping develop at Yunnan University for women entrepreneurs. The program is part of Goldman Sachs’s 10,000 Women Initiative. Goldman’s initiative is a $100 million campaign designed to provide business and management education to promising female entrepreneurs in developing countries.

I met 15 candidates and found them each to be impressive – educated, articulate, and brimming with ideas. They have already experienced some success: some of them had at least 1 million yuan in revenue, which is about $150,000. Read More »