Here’s how workers would spend the corporate tax cut – if they had a voice – Thomas Kochan

MIT Sloan Prof. Thomas Kochan

From The Conversation

Over 200 CEOs have said they will raise wages or give bonuses as a result of the large corporate income tax cut passed late last year by Congress.

Some view their plans as simply a public relations move, others as a response to tighter labor markets or worker pressures. Pretty much everyone hopes that it might signal a new era in which corporate leaders share earnings with workers in ways they have not done in the past.

I’m among those who hold such a hope. Only if such profit sharing becomes the norm will the long-term trends in widening income inequality and wage stagnation be reversed.

But why should this decision be left to CEOs? Don’t workers have a legitimate claim and stake in what is done with the profits they help produce? New research I’ve been leading at MIT finally gives workers a voice on these issues and many others. Read More »

Viewpoint: How can department stores survive in the digital era? – Sharmila C. Chatterjee

MIT Sloan Senior Lecturer Sharmila Chatterjee

MIT Sloan Senior Lecturer Sharmila Chatterjee

From Boston Business Journal

How can a department store survive in the age of digital shopping carts and free home delivery? It’s a question that some of even the most iconic retailers struggle to answer.

As a result, many are closing up shop. Last month, for instance, Macy’s identified seven stores for closure as part of its previously announced plan to shutter 100 locations nationwide. In November, Sears said it would close 63 stores on top of the 350 that it announced would shut earlier in the year. And last summer, J.C. Penney closed about 140 of its stores around the country.

Closing less-profitable locations makes a lot of sense, but that alone is not enough. What’s needed is a reinvention of the traditional bricks-and-mortar model. Stores must rekindle the magic of department store shopping by providing a holistic customer experience, one that’s efficient and satisfying from a purchasing point of view, but also engaging and exciting.

For starters, brick-and-mortar stores need to change how they view their online counterparts: digital stores should be seen as complementary forces rather than competitive ones. Shopping in the future will be a blend of the electronic and physical realms. Read More »

Join the #MITSloanExperts “Superminds: The Surprising Power of People and Computers Thinking Together” Twitter chat, June 26

Superminds: The Surprising Power of People and Computers Thinking Together

MIT Sloan’s Thomas Malone and Brian Moran, CEO of Brian Moran & Associates, dedicated to helping small business owners and entrepreneurs run better businesses, and previous Executive Director of Sales Development at the Wall Street Journal, will discuss Malone’s new book, Superminds: The Surprising Power of People and Computers Thinking Together, which shows how groups of people working together in superminds have been responsible for almost all human achievements in business, government, science, and beyond., during a Twitter chat on June 26th at 2 p.m. EDT.

Thomas W. Malone is the Patrick J. McGovern (1959) Professor of Management at the MIT Sloan School of Management and the founding director of the MIT Center for Collective Intelligence. At MIT, he is also a Professor of Information Technology and a Professor of Work and Organizational Studies. Previously, he was the founder and director of the MIT Center for Coordination Science and one of the two founding co-directors of the MIT Initiative on Inventing the Organizations of the 21st Century. Malone teaches classes on organizational design, information technology, and leadership, and his research focuses on how new organizations can be designed to take advantage of the possibilities provided by information technology.

Malone will discuss his work with host Brian Moran, the CEO of Brian Moran & Associates, dedicated to helping small business owners and entrepreneurs run better businesses. Previously, he was the Executive Director of Sales Development at the Wall Street Journal, and was President of Veracle Media and Moran Media Group, two companies that provided guidance to business owners to help them start, manage and grow their companies.

Join us on Twitter on June 26 at 2 p.m. ET, follow along using #MITSloanExperts, and potentially win a free copy of Superminds: The Surprising Power of People and Computers Thinking Together.

China, the innovation dragon – Simon Johnson and Jonathan Ruane

MIT Sloan Professor Simon Johnson

From Project Syndicate

China has achieved much since 1978, when Deng Xiaoping initiated the transition to a market economy. In terms of headline economic progress, the pace of China’s transformation over the past 40 years is unprecedented. The country’s GDP grew by nearly 10% per year on average, while reshaping global trade patterns and becoming the second-largest economy in the world. This success lifted 800 million people out of poverty, and the mortality rate of children under five years old was halved between 2006 and 2015.

The question now is whether China, well positioned to become the world’s innovation leader, will realize that opportunity in 2018 or soon after.

China’s transformation has been underpinned by an unprecedented manufacturing boom. In 2016, China shipped more than $2 trillion worth of goods around the world, 13% of total global exports. It has also pursued economic modernization through massive infrastructure investment, including bridges, airports, roads, energy, and telecoms. In less than a decade, China built the world’s largest bullet train system, surpassing 22,000 kilometers (13,670 miles) in July 2017. Annual consumption is expected to rise by nearly $2 trillion by 2021, equivalent to adding another consumer market the size of Germany to the global economy.

Earlier this month, Apple CEO Tim Cook declared that, “China stopped being a low-labor-cost country many years ago, and that is not the reason to come to China.” The country’s manufacturing strengths now lie in its advanced production know-how and strong supply-chain networks. Understandably, China’s leadership wants to increase productivity and continue to move further up the value chain.

Read More »

The Power of Leaders Who Focus on Solving Problems – Deborah Ancona and Hal Gregersen

From Harvard Business Review

Hal Gregersen, Executive Director of the MIT Leadership Center

Hal Gregersen, Executive Director of the MIT Leadership Center

MIT Sloan Prof. Deborah Ancona

In front of a packed room of MIT students and alumni, Vivienne Ming is holding forth in a style all her own. “Embrace cyborgs,” she calls out, as she clicks to a slide that raises eyebrows even in this tech-smitten crowd. “Really. Fifteen to 25 years from now, cognitive neuroprosthetics will fundamentally change the definition of what it means to be human.”

She’s referring to the work that interests her most these days, as cofounder of machine learning company Socos and a visiting scholar at UC Berkeley’s Center for Theoretical Neuroscience. (“So — can I literally jam things in your brain and make you smarter? If you’re curious, the answer is unambiguously yes.”) But the talk has covered a lot more than this, as Ming has touched on many initiatives and startups she’s been involved with, all solving problems at the intersection of advanced technology, learning, and labor economics.

She’s an entrepreneur, a CEO, and a teacher — all leadership roles — but when we ask her about her leadership style, she demurs. “What I’ve learned about myself as a leader, as an executive, is — I’ll be blunt — I’m a pretty mediocre manager. I try to do the right things, but I’m much more focused on problems than I am on people, and that’s not always that healthy.” While she’s utterly confident in herself, she just doesn’t identify as top management. She’s happier to think of herself as a data scientist, a computer geek. She loves talking about hacks she’s pulled off — like the alterations she made to her diabetic son’s medical devices, so she could merge all their data to produce a predictive model. Now, she gets an alert an hour in advance if a spike or drop is coming in his blood glucose level. This is an unprecedented, and highly valuable, thing. “Turns out, it broke several federal laws,” she laughs.

Ming is a tech optimist, believing that all kinds of previously intractable problems will be able to be solved as the tool kit for addressing them is developed. And she’s decided her best way of contributing to that progress is to keep honing her individual-contributor skills. “For a long time, I tried to be the whole package. I put a lot of energy into making certain that I was shepherding everyone along, doing all the right things for my teams. Then I realized: You know what? If I can get some people that are really good at the things that I’m not, then I can focus on my strengths. And my strengths are in creative problem solving — all the way down to writing the code myself.” Read More »