Peanut Butter on the Chin

What The Lucifer Effect, Philip Zimbardo’s landmark book on a prison experiment at Stanford University, tells us about the dangers of corporate conformity.

Atanu Chaudhuri, Craig Giffi, Kumar Kandaswami, Shalabh Kumar Singh

While companies assume there is necessarily a trade-off between efficiency and responsiveness in a constrained environment, research shows that only those organizations operating near the performance frontier (the optimal performance a company can achieve) should expect trade-offs. The companies that operate away from the frontier have the potential to improve both … [ Read more ]

Better Decisions Through Teamwork

The U.S. Supreme Court benefits from differences of opinions among the justices. Research that included studying how teams make decisions says when a narrow majority exists, pressure of the minority forces the majority to think with more complexity and to consider diverse evidence, says Stanford Business School Professor Deborah Gruenfeld.

Recognizing Organizational Culture in Managing Change

The purpose of this article is to examine how organizational culture influences the likelihood of success for change strategies, and to provide tools for the reader to apply within his or her organization. In particular, the Integrated Cultural Framework (ICF), which was adapted by the authors from the work of Hofstede and Kluckhohn and Strodtbeck, is introduced. The ICF has been used to analyze culture … [ Read more ]

Getting Rid of Grades to Boost Performance

The practice of assigning letter grades to jobs has had perverse consequences. Aligning jobs with accountability is a much better idea.

Brian Dive

Accountability entails being answerable to another person for a product, process, or result that is measurable in terms of quantity, quality, and time. When reviewing an employee’s role in an accountable system, three key questions should be asked: First, why does the job exist? Does it ultimately add value for the customers? (By “customers” we mean anyone who benefits from the organization’s work or products, … [ Read more ]

Modigliani and Miller Meet Chandler: Organizational Complexity and Capital Structure

We study how the degree of organizational complexity of a firm relates to its corporate financial policies. We measure complexity as the number of layers in the firm’s subsidiary structure, and focus on a sample of US firms over the period 1996-2006. We argue that organizational complexity makes the firm opaque and increases the asymmetry of information between it and the market. We show that … [ Read more ]

Letting the Air Out of Title Inflation

Title inflation is an easy move that makes everyone happy, one with few costs other than a couple of boxes of new business cards. Right?

Wrong. Companies have employed this seemingly harmless strategy since they began etching executives’ names on office doors, and all the evidence points to very real and negative results.

What’s your moral profile?

A survey across 163 countries by Professor Roger Steare found that people divide into six types of moral profile, each with a discrete ethicability.

E. L. Kersten

Gratitude has received little serious attention in the literature on job attitudes. This may be because most people see it as a spontaneous emotional response to an external event. But University of California psychologist Robert Emmons makes a compelling argument that gratitude is better thought of as a discipline or a skill, more akin to goal-setting or time management, rather than simply another dimension of … [ Read more ]

John C. Maxwell

You can tell the caliber of a person by the amount of opposition it takes to discourage him or her.

Why Money Messes with Your Mind

Our relationship with money has many facets. Some people seem addicted to accumulating it, while others can’t help maxing out their credit cards and find it impossible to save for a rainy day. As we come to understand more about money’s effect on us, it is emerging that some people’s brains can react to it as they would to a drug, while to others it … [ Read more ]

Geoff Colvn insists you are naturally good at nothing

You are not talented at your job. You never will be. But wait: That’s the good news—because talent, argues Geoff Colvin, doesn’t exist in the first place—at least not in the traditional sense of the word. It is not, he points out, an innate ability. The sooner you realize that Jack Welch, Bill Gates, Warren Buffett, and you were not meant to be great business … [ Read more ]

Making It Easy to Do the Right Thing

In recovering from a crisis, ethical business practice and high performance aren’t opposed.

E. L. Kersten

Threatened egotism occurs when people or events undermine an individual’s high but unstable self-esteem. It doesn’t affect those with a stable self-esteem, since external threats are unlikely to faze such people. And those with a low self-esteem are unsusceptible to threatened egotism because external threats simply reinforce already low self-perceptions.

Millennials, then, are especially vulnerable to threatened egotism, because their inflated self-perceptions are generally grounded in … [ Read more ]

When Goal Setting Goes Bad

If you ever wondered about the real value of goal setting in your organization, join the club. Despite the mantra that goals are good, the process of setting beneficial goals is harder than it looks. New research by HBS professor Max H. Bazerman and colleagues explores the hidden cost when stretch goals are misguided. Q&A.

Weird Ideas That Work: 11 1/2 Practices for Promoting, Managing, and Sustaining Innovation

Who’d have thought fighting with each other would be good for employees? Or that ignoring superiors would be a wise business practice? Sutton, consultant and professor at the Stanford Engineering School, advocates taking a nontraditional approach to innovation and management in this quirky business manual. He advises taking unorthodox actions, suggesting managers should forget the past, especially successes; hire people who make them uncomfortable and … [ Read more ]

How ethical are you?

Are you an enforcer, philosopher, judge, angel, teacher or guardian? Find out the composition of your moral DNA with our test.

Gilman Louie

The most surprising thing was that if terrorists rolled a hand grenade down the middle of a room, all our CIA employees would jump out of their seats and throw their bodies on it to protect everyone else. They would all give up their lives for one another and their country. However, if someone ran into the room and said, ‘I need someone to make … [ Read more ]