Opinion & Analysis

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From Supply Chain Risk to Resilience: The How and the Why

  • Opinion & Analysis
  • Read Time: 7 min 
For businesses operating in today’s global economy, supply chain disruption is inevitable. This reality is forcing a mindset shift from risk management to resilience planning. According to UPS and researchers at Ohio State University, businesses can survive and even prosper from disruptive events by widening their view on the sources of risk, building flexibility into their planning and execution processes, and increasing visibility through real-time access to information.
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From the Editor: Disruption Everywhere?

The Fall 2015 issue of MIT Sloan Management Review has two big themes: developing tomorrow's leaders, and disruption. In a special report on leadership, four articles explore how to engage, keep, and train the next generation of managers. “Preparing for Disruptions Through Early Detection” highlights the detection techniques to become more resilient. And “How Useful Is the Theory of Disruptive Innovation?” takes a deep dive into Clayton M. Christensen’s influential theory of disruptive innovation.


Sharing Supply Chain Data in the Digital Era

Effectively managing and coordinating supply chains will increasingly require new approaches to data transparency and collaboration. Supply chains in coming years will become even more “networked” than they are today — with significant portions of strategic assets and core capabilities externally sourced and coordinated. Already, progressive companies are developing novel solutions to the dilemma of data transparency by using data “cleanrooms” and digital marketplaces.


Maximizing Resilience at UPS

  • Opinion & Analysis
  • Read Time: 7 min 

Disruption is a fact of life in today’s world of global supply chains. Leading organizations like UPS have responded by creating cultures of resilience, aided by technologies such as sensors, analytics, cloud computing and social media. Combined with employee empowerment and centralized emergency operations centers, these technology-based approaches enable the near-real-time visibility, collaboration and agility needed to prepare for, detect and manage disruption—and maximize resilience.


The Human Factor in Analytics Success

  • Opinion & Analysis
  • Read Time: 4 min 

An organization can have the best technology and the best analytics but still fail to deliver. As Intermountain Healthcare demonstrates, a commitment to the human dimension can drive return on analytics investment. Its leadership commitment to analytics and organizational processes promotes a culture where every question is welcome and data delivers insights. And its training and incentives for doctors and other analytics ‘consumers’ encourage behaviors that deliver better outcomes.



Rethinking Leadership

Businesses need a new approach to the practice of leadership — and to leadership development. "Leadership is really not about leaders themselves," argues Joseph A. Raelin. "It’s about a collective practice among people who work together — accomplishing the choices we make together in our mutual work." Nelson Mandela was particularly adept at this new model of leadership, Raelin says. "One of the most important leadership lessons we might distill from Mandela was not his acquisition of leadership but the way he shared it."


Why Corporate Social Responsibility Isn’t a Piece of Cake

Corporate Social Responsibility "is fraught with contradictions, subject to political challenges and demands deep commitment," argue José Carlos Marques and Henry Mintzberg. Responsible corporate behavior, they write, isn't simply “doing well by doing good.” Instead, six changes need to be considered, within and beyond our private institutions. These changes include fostering ethical judgment within the enterprise, rethinking compensation and acknowledging the benefits of regulation.


On the Care and Feeding of Your Analytics Talent

A panel of experts discusses the challenges of finding, engaging and organizing data scientists for best results. They talk about how to support your data scientists and keep them engaged in the right kinds of tasks and how to integrate new talent into your existing data and analytics team. They also talk about the skills and traits to look for when recruiting and selecting your data/analytics team, and how to assess existing internal talent for data roles.

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From the Editor: Expecting the Unexpected in Project Management

If there’s one thing that’s certain about undertaking complex projects, it’s that not everything will work out exactly the way you planned. The Spring 2015 issue of MIT Sloan Management Review highlights project management, in “Reducing Unwelcome Surprises in Project Management,” “How Executive Sponsors Influence Project Success,” “What Successful Project Managers Do” and “Accelerating Projects by Encouraging Help.” In a nutshell, managers must expect the unexpected in projects.


The New World of Work

Advanced digital technologies are swiftly changing the kinds of skills that jobs require. Researchers Frank MacCrory, George Westerman and Erik Brynjolfsson from the MIT Sloan School of Management and Yousef Alhammadi of the Masdar Institute studied the changes in skill requirements over the 2006-2014 time period. While demand has clearly grown for computer skills, it has grown for interpersonal skills, too. The authors advise people in all lines of work to be flexible about acquiring new talents.


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From the Editor: In Praise of Humility

The Winter 2015 issue of MIT Sloan Management Review highlights decision making, in “The Power of Asking Pivotal Questions” and “Using Simulated Experience to Make Sense of Big Data.” It also celebrates acknowledging when you don’t have all the answers, in “Embrace Your Ignorance.” Other articles look at “technostress,” why product category labels matter and why "benevolent" mobile apps may be best at brand-building.

Image courtesey of Quicken Loans Inc.

Embrace Your Ignorance

The overconfidence of presumed expertise is counterproductive. Instead, data trumps intuition. Serious innovators take data seriously, argues Michael Schrage: “Organizations may be confident they know their customers, but they’re very likely to be overconfident. Most executives aren’t nearly as smart, perceptive or customer-centric as they believe." Successful innovators, he writes, “have the courage of their curiosity” and run experiments that challenge their assumptions.

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From the Editor: Strategy in the Midst of Change

How do you develop strategy in a business environment characterized by rapid change and considerable uncertainty about the future? That’s a question that many executives in fast-changing industries face. The Fall 2014 issue of MIT Sloan Management Review features a special report on strategy in changing markets, with articles on creating new strategic narratives, capturing new opportunities and finding the right strategic role for a board.


Bringing Fun and Creativity to Work

How do you inspire employees to become more motivated and perform better? By challenging them to test their creativity and collaboration skills through a team-based contest. “The contest provided a safe environment for participants to unleash their imaginations and form an emotional connection,” write the authors. “That, in turn, triggered an increased level of psychological ownership and positive feelings.“


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The 2014 Richard Beckhard Memorial Prize

This year’s winning article on planned change and organizational development is “Making Mergers Work,” by Hamid Bouchikhi and John R. Kimberly. The authors examine why mergers and acquisitions so often fail to achieve the results and synergies they promise. “Our work in this field has convinced us that there is no ‘one best way’ but rather four distinct paths that can be followed to achieve identity integration: assimilation, federation, confederation and metamorphosis,” they write.

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From the Editor: Innovation and China

In today’s global economy, there aren’t many large companies that can afford to ignore China in their plans for growth. The Summer 2014 issue of MIT Sloan Management Review features a special report on China, with insights about how to learn from China, what the future may hold for the Chinese economy — and how to do business in China despite the challenges of protecting intellectual property there.

Image courtesy of Dupont.

Bridging the Sustainability Gap

Most mainstream investors are unconvinced that sustainability leadership translates into profits and marketplace success. Despite rising importance on the corporate agenda, sustainability —as currently understood and measured — interests only a small niche of investors. The authors argue that a “back to basics” approach for measuring sustainability’s direct impact on revenue growth, productivity and risk would provide mainstream investors with the data that’s critical to their decisions.

UBS Reports Writedowns of 18.5 Billion GBP

Is Your Company Addicted to Value Extraction?

Is your company focused on creating value — or on siphoning it off from others? Capturing value from other stakeholders by manipulating the competitive market process to the company’s advantage exposes a company to reputational or legal risks. It also can undermine corporate values. Value extraction is typically easier than developing a competitive advantage through ongoing value creation. Companies can get hooked on the practice, to the detriment of real value creation.

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No Free Market for Energy

The idea that energy is a “free-market good” is a myth that needs to be abandoned. Subsidies for energy exist for good reason. The authors argue that in order to wean ourselves off hydrocarbon dependence, U.S. and global policies that subsidize oil and gas production at higher rates than renewable energy production need to be changed to reduce the bias in favor of hydrocarbons.

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