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 ]

William A. Galston

Although the cost of excessive caution is harder to measure than that of recklessness, it is no less real.

Max Bazerman

There is a growing set of research that shows “learning or mastery” goals have much more positive effects on performance and internal motivation than “performance” goals.

Producing Sustainable Competitive Advantage Through the Effective Management of People

Achieving competitive success through people involves fundamentally altering how we think about the workforce and the employment relationship. It means achieving success by working with people, not by replacing them or limiting the scope of their activities. It entails seeing the workforce as a source of strategic advantage, not just as a cost to be minimized or avoided. Firms that take this different perspective are … [ Read more ]

‘Goals Gone Wild’: How Goal Setting Can Lead to Disaster

Despite evidence that ambitious goal setting can hurt productivity, damage a company’s reputation and violate ethical standards, its use has become endemic in American business practice and scholarship, even spilling over to the debate on how to improve America’s public schools. A new paper by Wharton operations and information management professor Maurice E. Schweitzer and three co-authors documents the hazards of corporate goal setting and … [ Read more ]

Hell’s Cartel: IG Farben and the Making of Hitler’s War Machine

British journalist Jeffreys (Aspirin: The Remarkable Story of a Wonder Drug) presents a compelling account of the comprehensive collaboration of Germany’s major chemical conglomerate with Adolf Hitler’s genocidal dictatorship. The fourth largest industrial concern in the world, IG Farben was a key element of German foreign policy. Its employees were well treated. Its scientists won Nobel prizes. Its administrators created an international network controlling the … [ Read more ]