Finding the Right Fit: Why Culture Is Key

Finding the perfect job might seem like a universal goal. Not necessarily, say IESE’s Yih-teen Lee and ESSEC’s Aarti Ramaswami, who argue that a lot depends on culture. By learning to recognize the sometimes invisible cultural influences on HR practices, global managers can better understand how to attract, select and retain talent in their organizations.

Watch Fortune’s Q&A with Warren Buffett

Warren Buffett sits down with Fortune Magazine’s Pattie Sellers to discuss the changing landscape for women in business.

James Guszcza, David Steier, John Lucker, Vivekanand Gopalkrishnan, Harvey Lewis

The same body of psychological research that underpins behavioral economics also suggests that we are very poor natural statisticians. We are naturally prone to find spurious information in data where none exists, latch on to causal narratives that are unsupported by sketchy statistical evidence, ignore population base rates when estimating probabilities for individual cases, be overconfident in our judgments, and generally be “fooled by randomness.” … [ Read more ]

The Secret to Effective Motivation

An interview with Heidi Grant Halvorson and E. Tory Higgins, authors of Focus: Use Different Ways of Seeing the World to Power Success and Influence.

Charles Alsdorf, Igor Heinzer, Elayne Ko

Decision framing is often minimized or overlooked. In developing capital project business cases, people tend to start gathering inputs right away and to fill out spreadsheets too soon. When we start building a financial model and collecting data without first framing the decision, we run the risk of falling prey to collecting the wrong data and the common cognitive biases.

Charles Alsdorf, Igor Heinzer, Elayne Ko

Asking the right, sometimes difficult, questions is a key ingredient of framing. When structuring a large strategic investment decision, it is crucial to understand how risks and uncertainties may affect the investment decision. One useful question to ask stakeholders is: “How could we be wrong?” This requires participants to analyze or otherwise consider the assumptions underlying the decision and explore how the investment might turn … [ Read more ]

Why Strengths Matter in Training

Too many training and development efforts fall short because they don’t factor in employees’ talents

How Balanced Is Your Organizational DNA?

If you’re having trouble translating strategy into execution, maybe you’re only using half of your organization. Sure, you’ve assigned decision rights, rearranged the lines and boxes in the org chart, set up a knowledge exchange system for better information flow, and tweaked your incentives. These are the formal mechanisms that business executives usually rely on for organizational change management—they’re familiar, concrete, and measurable. To … [ Read more ]

Have we all been duped by the Myers-Briggs test?

Despite its popularity, the personality test has been subject to sustained criticism by professional psychologists for over three decades.

James Guszcza, John Lucker

Our intuitions can lead us badly astray in a way that is as surprising as it is straightforward. Kahneman identifies two types of mental processes. “Type 1” mental processes are fairly automatic, effortless and place a premium on “associative coherence.” In contrast, “Type 2” mental processes are controlled, effortful and place a premium on logical coherence. Although we fancy ourselves primarily Type 2 creatures, many … [ Read more ]

George Box

Remember that all models are wrong; the practical question is how wrong do they have to be to not be useful.

Why Unqualified Candidates Get Hired Anyway

Why do businesses evaluate candidates solely on past job performance, failing to consider the job’s difficulty? Why do university admissions officers focus on high GPAs, discounting influence of easy grading standards? Francesca Gino and colleagues investigate the phenomenon of the “fundamental attribution error.”

Mark McCord

From a policy standpoint, many countries continue to focus on privatization, liberalization, deregulation and modernization as growth strategies. Unfortunately, according to Jean-Eric Aubert of the World Bank Institute, these policies typically do not yield the expected fruits due to their lack of sustainability, because they often fail to take into account emerging opportunities. For instance, the privatization of aging factories does little to enhance economic … [ Read more ]

What Anonymous Feedback Will (and Won’t) Tell You

A survey evaluating a team’s performance can be a powerful tool for making that team more effective. And the first message that consultants and HR professionals often communicate on these surveys is: “To ensure that the team gets the best data and feels protected, we will make sure responses are confidential.” The widespread assumption is that if team members know their answers are confidential, they … [ Read more ]

John Doerr: What To Look For When Joining a Company

John Doerr, general partner at Kleiner Perkins Caufield & Byers, discusses what one should look for when joining a company.

Can You Really Improve Your Emotional Intelligence?

Who wouldn’t want a higher level of emotional intelligence? Studies have shown that a high emotional quotient (or EQ) boosts career success, entrepreneurial potential, leadership talent, health, relationship satisfaction, humor, and happiness. It is also the best antidote to work stress and it matters in every job — because all jobs involve dealing with people, and people with higher EQ are more rewarding to deal … [ Read more ]

The Truth About How We Think

We’re all prey to cognitive mistakes, says Nobel Laureate Daniel Kahneman. But knowing that can help you avoid them.

Jonah Berger

One thing that my colleagues and I are thinking about now is how the different channels that we use for sharing affect what we say. Face to face, we don’t want to sit in silence, so we say anything to pass the time. But online is a written medium, which allows us more time to construct and refine what we want to pass on. We … [ Read more ]

Beyond Biases

In their new book, Chip and Dan Heath lay out a path for making better decisions.

Olivia “Mandy” O’Neill

There’s a huge degree of variation in organizations, even in the same industry, and a lot of it depends on the extent to which the behavior [kindness] is encouraged, trained, and rewarded. We know from the research on management that there’s a tendency toward attraction, selection, and attrition: People who are kind, generous, and compassionate tend to be attracted to and be selected by organizations … [ Read more ]