Why we need to redefine start-up culture with positive mental health habits – Kathleen Stetson and Trish Cotter

Trish Cotter, Senior Lecturer, MIT Sloan School of Management

Kathleen Stetson, Entrepreneur Coach, MIT Sloan MBA ’14

From Thrive Global

Anxiety and depression are rampant among entrepreneurs. The stereotype of a founder — fueled by caffeine and ramen noodles, while forgoing sleep, exercise, fresh air, friends, and family in the quest for success — has been the norm for years. It has been encouraged, and even glorified, by start-up culture.

 

The Inc. article “The Psychological Price of Entrepreneurship” explores this topic and explains, “the same passionate dispositions that drive founders heedlessly toward success can sometimes consume them. Business owners are ‘vulnerable to the dark side of obsession.’” Yet this is not healthy or helpful for long-term success.

Compounding this problem is the start-up founder’s hesitation to show weakness or self-doubt. They feel the need to project confidence for investors and employees, despite any inner insecurities. They also tend to connect their self-worth and identity to their start-ups, which can lead to feelings of depression if their start-up fails.

Read the full post at Thrive Global.

Trish Cotter is executive director of the Martin Trust Center for MIT Entrepreneurship, director of the delta v accelerator, and an entrepreneur-in-residence at the MIT Sloan School of Management.

Kathleen Stetson is an entrepreneur coach, the creator of Entrepreneurial Confidence and Communication, and an MIT Sloan alumna.

How to succeed without being the smartest person in the room – Jeanne Ross

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

From MIT Sloan Management Review

As part of a set of research interviews, my colleague at MIT’s Center for Information Systems Research (CISR), Martin Mocker, and I once asked technology staffers at 40 big companies what impact they thought they were having on their companies. Sadly, many said that they didn’t think they were having any impact. They were doing what they were supposed to do, but they could not see how their companies would apply their efforts to become more successful.

What a waste of resources — and a missed opportunity! I suspect that similar scenarios are playing out in many, many companies. Our research on digital transformations suggests that recruiting, directing, and developing talent is more important than ever but is also more challenging.

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When Boeing’s 737 Max returns to the skies, it will be flying full – Arnold Barnett

Arnold Barnett, George Eastman Professor of Science and Statistics, MIT Sloan School of Management

From RealClear Markets

Someday, more than a year after its second disastrous crash, the grounded Boeing 737 MAX will return to the skies. But will it be awash in empty seats when it does so? If recent surveys are to be believed, the answer is clearly yes. A December 2019 poll conducted by Bank of America estimated that only 20% of Americans would readily board the relaunched MAX. (This figure excludes the 50% of respondents who had not heard of the MAX controversy, but one assumes that these people rarely if ever fly.). Boeing’s own surveys in December 2019 imply that more than 40% of potential air travelers now plan to steer clear of the MAX. Montana Senator Jon Tester probably spoke for many when he declared that “I would walk before I was to get on a 737 MAX.”

To be sure, discrepancies often arise between what people tell pollsters and what they actually do. But is that likely to occur here? In fact, one can make a plausible case both for and against a large passenger boycott of the revived MAX. It is useful to consider the arguments on both sides, and then to hazard a best guess about what might happen.

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Community policing and the public’s attitudes toward police – David Rand, Kyle Peyton, and Michael Sierra-Arévalo

David Rand, Associate Professor of Management Science and Brain and Cognitive Sciences, MIT Sloan School of Management

From Psychology Today

We are in the midst of a crisis of police legitimacy in America. Each case of police brutality and shooting of an unarmed civilian causes more people to lose trust in the police and to question whether officers are really there to serve and protect. Without public trust, how can the police effectively do their job?

In response to this crisis, some police officials and policymakers have promoted the use community-oriented policing (COP), which emphasizes positive, nonenforcement contact with the public to build trust and police legitimacy. COP dates back to the 1970s, and has involved things like foot patrols, community meetings, neighborhood watches, and door-to-door visits. The idea is simple: If interactions with the police don’t always involve a problem—much less punishment of some kind—then the public may come to trust police and, hopefully, cooperate with them in the future to report and solve crimes.

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How globalization may explain consistently low inflation rates – Kristin Forbes

Kristin Forbes, Jerome and Dorothy Lemelson Professor of Management and Global Economics, MIT Sloan School of Management.

From The Hill

Weak inflation is one of the “major challenges” of our time, according to Federal Reserve Chairman Jerome Powell. Not only does persistently low inflation limit the scope of monetary policy, it may also have a damaging impact on the financial system. But the inflation forecasts used by the Federal Reserve to set monetary policy have not been performing very well lately. When the global financial crisis erupted in 2008 and growth collapsed around the world, why did inflation not fall further? As growth has picked up in the United States and unemployment has gone down, why has the inflation rate in this country remained so stubbornly low?

One key to the puzzle may be the forecasts themselves. The frameworks that macroeconomists have relied on to predict inflation primarily use domestic variables dating back to the “Phillips Curve” of the late 1960s which showed that inflation increases when unemployment falls. But the forces that drive our economy are not only confined within our national borders. The models miss what is happening across the rest of the world.

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