MIT Sloan Adjunct Associate Professor Zeynep Ton
From Harvard Business Review
Walmart announced today that it is raising its starting wages in the United States from $9 per hour to $11, giving employees one-time cash bonuses of as much as $1,000, and expanding maternity and parental leave benefits as a result of the recently enacted tax reform. It is part of Walmart’s broader effort to create a better experience for its employees and customers. The new tax law creates a major business opportunity for other retailers as well — if their leaders are wise enough to take advantage of it.
The U.S. corporate tax rate is dropping from 35% to 21%. Retailers, many of whom have been paying the full tax rate, are going to benefit substantially. Take a retailer that makes 15% pretax income. Assuming its effective tax rate goes from 35% to 21%, it could save the equivalent of 2.3% of sales. Specialty retailers with higher pretax income will save even more.
Retail executives have a choice in how they use these savings. I believe the smartest choice — one that will help them compete against online retailers like Amazon — is to create a better experience for customers and to achieve operational excellence in stores. For most retailers, doing both requires more investment in store employees — starting with higher wages and more-predictable work schedules. My research shows that combining higher pay for retail employees with a set of smart operational choices that leverage that investment results in more-satisfied customers, employees, and investors. Read More
Research Affiliate in
From The Conversation
Artificial intelligence and robotics spell massive changes to the world of work. These technologies can automate new tasks, and we are making more of them, faster, better and cheaper than ever before.
Surgery was early to the robotics party: Over a third of U.S. hospitals have at least one surgical robot. Such robots have been in widespread use by a growing variety of surgical disciplines, including urology and gynecology, for over a decade. That means the technology has been around for least two generations of surgeons and surgical staff.
I studied robotic surgery for over two years to understand how surgeons are adapting. I observed hundreds of robotic and “traditional” procedures at five hospitals and interviewed surgeons and surgical trainees at another 13 hospitals around the country. I found that robotic surgery disrupted approved approaches surgical training. Only a minority of residents found effective alternatives.
Like the surgeons I studied, we’re all going to have to adapt to AI and robotics. Old hands and new recruits will have to learn new ways to do their jobs, whether in construction, lawyering, retail, finance, warfare or childcare – no one is immune. How will we do this? And what will happen when we try?
MIT Sloan Associate Prof. Tavneet Suri
From Financial Times
As philanthropy becomes a common source of finance for poverty-fighting programmes, it is natural for donors to want data about their impact on the people they want to help.
Yet measuring the benefits of philanthropy is surprisingly hard. How can we define and measure “income” in a village of subsistence farmers? Can we ask a street kid enrolled in a violence-prevention programme about his illegal activities? How do we know if a change in nutritional outcomes was the result of a social programme and not some other variable, like a change in food prices? How can we measure non-quantitative or non-monetary outcomes, like women’s empowerment or entrepreneurial motivation?
For many years, aid impact studies were based on anecdotal evidence or fragments of data. Over the past decade, searching for a more rigorous approach, development researchers have applied the “gold standard” of medical research: randomised controlled trials. In an RCT, researchers allocate an intervention, such as a microfinance loan, to a randomly selected test group of people and compare their outcomes with a control group. Read More
MIT Sloan Associate Dean of Executive Education Peter Hirst
This spring, I participated in three major IoT-focused events and came away with mixed feelings about the state of the industry. The first was the Internet of Things World in Santa Clara, California. The conference tends to focus on more technological aspects of IoT and draws thousands of attendees. A few days later, I flew to London to take part in the Internet of Things World Forum (IoTWF), an invitation-only event that caters to the C-suite audience. The third was a board meeting and strategy workshop for the Internet of Things Talent Consortium, a spinoff from the IoTWF, of which MIT Sloan Executive Education is a founding member. The three events were highly educational, thought provoking and inspirational in their own right, but all shared a common theme—we, the people, are the main barrier to faster and wider IoT adoption. Moreover, it’s the very nature of humanity, our habits and idiosyncrasies that seem to be stalling the robots’ march toward making our lives wonderfully better—or toward total world domination, depending on how you look at it. More seriously, here are some themes that emerged in my mind once the conference excitement wore off.
Stop Resisting Change
People are creatures of habit. We are comfortable with what we know. It’s not laziness—it’s an evolutionary trick we’ve developed to survive as a species. New is scary and we tend to resist it, willfully or subconsciously, but this resistance can hinder progress. For example, as we heard from the main stage at IoT World Forum in London, GE— who is one of the earliest and relatively successful entrants into IoT—sees organizational inertia as one of the biggest problems in digital transformation. Culture clashes between different kinds of businesses within an organization are dragging down the entire enterprise. Traditional engineers and digital engineers are not speaking the same language. Business leaders are not yet adept in the ways of leading required to drive a digitally-enabled transformation. At IoT World, I was on a panel discussing the future leadership needs around IoT. The panel featured professionals in different industries from education to talent recruitment to defense. And what everybody was saying is that when you look at executives, the need to have agility and resilience is just as great as the need for people who can understand both the technology and the business. In the IoT era, leaders need to have awareness of all sorts of business-environment issues, as well as other important concerns, such as privacy and cyber security, regulation and public policy. Whether it’s strictly IoT or not, you could see that in examples like Uber or Airbnb, as they’ve run into public policy, regulatory and other kinds of situations. I think it’s fairly self-evident that it would be hard for those businesses to succeed without having leaders who are able to take on those kinds of aspects as well.
I’ve touched upon this subject previously, and hearing from companies like GE only reinforced my impression that there is an immediate need to not only train the workers who will work on the IoT implementation, but also to educate leaders on how to lead the transformation. In light of this, the IoT Talent Consortium is redoubling its efforts to help organizations understand and analyze that question. The group sees itself as a community where digital-transformation pioneers and people who believe that they need to or want to go through this kind of journey can share experiences and identify successful practices.
MIT Sloan Senior Lecturer Neal Hartman
From the Huffington Post
Imagine being submerged inside a downed aircraft in icy water, knowing that to reach air and safety you have to work with fellow passengers. Of course, you understand this is only a training exercise, aimed at honing your capacity for trust, collaboration, and team building. Here’s the question: Will defying death succeed better than the rope courses, scavenger hunts, tug of wars and other standbys of traditional corporate team building?
The Groton, Conn.-based company Survival Systems USA is betting that undergoing realistic disaster training is the new trend in helping corporations enhance teamwork, improve leadership and build skills needed for 21st century workplaces. The company is adapting its aquatic survival training into a program for companies seeking to push the envelope in employee team building.
The Survival System training, which involves a mock plane or helicopter crash in nasty conditions, is but the latest in moves toward intensive team-building exercises that go far beyond the classic “trust fall.” Exercises may range from rock climbing, rappelling, wilderness camping and sailing to sophisticated “geo hunts” in which teams use GPS to follow clues.