Over the past seven years, Harvard Business School's Raffaella Sadun and a team of researchers have interviewed managers at some 10,000 organizations in 20 countries. The goal: to determine how and why management practices differ vastly in style and quality not only across nations, but also across various organizations and industries.
Published in 2011
In their new book, The Progress Principle: Using Small Wins to Ignite Joy, Engagement, and Creativity at Work, authors Teresa M. Amabile and Steven J. Kramer discuss how even seemingly small steps forward on a project can make huge differences in employees' emotional and intellectual well-being. Amabile talks about the main findings of the book. Plus: book excerpt.
As global competition intensifies, it's more important than ever that companies figure out how to innovate if they are going to maintain their edge, or maintain their existence at all. Six Harvard Business School faculty share insights on the best ways to develop creative workers.
Can employers motivate employees to work more creatively, ethically, or productively? Or does that power reside solely within the individual? Recent research at Harvard Business School suggests workers can be motivated by their environment.
Throughout recent history, many foundations have tried to induce innovation through competition, offering massive cash prizes to inventors who meet the challenge of creating world-changing inventions. For instance, in 1996 the X Prize Foundation offered $10 million to the first non-government organization to launch a reusable, suborbital manned spacecraft twice within two weeks. The prize was awarded in 2004 to a project financed by Microsoft co-founder Paul Allen. The problem is that inventors cannot win these competitions if they cannot come up with funding to realize their inventions, and research and development costs often exceed the amount of the cash prize. So, does the incentive of an eventual prize really induce innovation? In this paper, Liam Brunt, Josh Lerner, and Tom Nicholas look to answer that question, using a data set of prizes awarded by the Royal Agricultural Society of England (RASE) between 1839 and 1939.
It's all-too-easy to lie on self-reported documents such as tax returns, expense reports, and insurance policy forms. That's why we're generally required to sign a statement declaring that the report is truthful. Usually, the signature line is located at the very end of the form—after it has been filled out already, and consequently, after the potential cheating has occurred. This paper examines whether governments and companies can bolster honesty simply by moving the signature line to the beginning of the form, such that signers are swearing that they will tell the truth rather than that they have told the truth. Research was conducted by Lisa L. Shu, Francesca Gino, and Max H. Bazerman of Harvard, Nina Mazar of the University of Toronto, and Dan Ariely of Duke University.
In marketing, the use of the customer lifetime value (CLV) metric encourages a focus on long-term customer relationships over short-term sales. This paper examines a situation in which a European bank introduced CLV data to its customer-facing employees, while still maintaining the incentives linked to short-term profitability; the goal was to discover whether and how these employees would modify their mortgage sales decisions. Research was conducted by Pablo Casas-Arce of Universitat Pompeu Fabra, and F. Asís Martínez-Jerez and V.G. Narayanan of Harvard Business School.
If you think that banning web surfing at work will improve your employees' productivity, think again. In new research on the effects of temptation, HBS research fellow Marco Piovesan and colleagues found that the act of resisting temptation distracted subjects enough that their work performance actually suffered.
Among the many distractions that keep office employees from their work, surfing the web is arguably the most irresistible time-waster of all. In order to deal with that problem, many companies either prohibit Internet use during working hours, or closely monitor employees' web activity. This means workers must wait until they get home to get their daily YouTube fix. But does forbidding this distraction actually increase productivity? In this paper, researchers find that the answer is no—and that delaying gratification actually has a negative impact on employee performance. Research was conducted by Alessandro Bucciol of the University of Verona and the University of Amsterdam, Daniel Houser of George Mason University, and Marco Piovesan, a research fellow at Harvard Business School.
Work that comes with high risk requires a great deal of trust among the individuals involved, whether it's the financial risk of producing a high-budget film or the personal safety risk of working in a war zone. In this paper, reporting on case study research on a high-risk, multimillion-dollar construction project, HBS doctoral candidate Faaiza Rashid and professor Amy C. Edmondson explore the concept of "risky trust," and examine how colleagues can learn to trust each other in the midst of high-risk work situations.
Francesca Gino and Bradley R. Staats explore how the valence (positive versus negative), type (direct versus indirect), and timing (one-shot versus persistent) of performance feedback affects an employee's job productivity. Specifically, through field experiments at a Japanese bank, they investigate the extent to which job performance is affected when employees learn where they stand relative to their coworkers.
In a new study, HBS professors Francesca Gino and Joshua D. Margolis look at two ways that companies can encourage ethical behavior: the promotion of good deeds or the prevention of bad deeds. It turns out that employees tend to act more ethically when focused on what not to do. That can be problematic in firms where success is commonly framed in terms of advancement of positive outcomes rather than prevention of bad ones.
Under terrorist attack, employees of the Taj Mahal Palace and Tower bravely stayed at their posts to help guests. A new multimedia case by Harvard Business School professor Rohit Deshpandé looks at the hotel's customer-centered culture and value system.
Published in 2010
Employees not connected directly to profit and loss can suffer from a collective "I-am-not-strategic" identity crisis. Professor Ranjay Gulati suggests that business managers allow so-called support function employees to become catalysts for change.
Companies generally pay their sales staff with some combination of salary, commissions, and bonuses for meeting quotas-with sales force costs averaging about 10 percent of sales revenue in the United States. This paper aims to gain insight into the most effective way to design a compensation plan, concentrating on whether bonuses boost sales productivity and whether they should be awarded quarterly or annually. Research, focusing on the sales force of a large office supply company, was conducted by Harvard Business School professor Thomas Steenburgh and Doug J. Chung and K. Sudhir of the Yale School of Management.
Boredom and fatigue often hamper the productivity of workers whose jobs consist of repeating the same tasks. This paper explores ways in which companies can combat this problem, introducing the idea of the "restart effect" - a deliberate disruption that kindles productivity. Research, which focused on a loan-application processing line at a Japanese bank, was conducted by HBS professor Francesca Gino and Kenan-Flagler Business School assistant professor Bradley R. Staats.
This month's column yielded many hypotheses to explain why U.S. employees' job satisfaction is at a 23-year low, says HBS professor Jim Heskett. Readers also offered antidotes to job malaise. (Online forum now closed. New forum begins May 5.)
Summing up comments to his March column, Jim Heskett says perceptions vary widely on the issue of "identity" and economic performance, particularly as it applies to the U.S. What will it take to turn around negative trends in employee identity? (Forum now closed. Next forum begins April 2.)
Published in 2009
In directing employees, managers often face a choice between invoking authority and persuasion. In particular, since a firm's formal and relational contracts and its culture and norms are quite rigid in the short term, a manager who needs to prevent an employee from undertaking the wrong action has the choice of either trying to persuade the employee or relying on interpersonal authority. In choosing between persuasion and authority the manager makes a cost-benefit trade-off. This paper studies that trade-off, focusing in particular on conflicts that originate in open disagreement.
It is becoming clear that human behavior is much less rational than we assumed, says HBS professor Jim Heskett. Judging from replies to this month's question, there are many nuances to managing in an irrational world. (Online forum now closed. Next forum begins August 7.)
Accelerated organizational transformation faces a host of obstacles well-documented in the change management literature. Because corporate social entrepreneurship (CSE) expands the core purpose of corporations and their organizational values, it constitutes fundamental change that can be particularly threatening and resisted. Furthermore, it pushes the corporation's actions more broadly and deeply into the area of social value creation where the firm's experiences and skill sets are less developed. The disruptive social innovations intrinsic to the CSE approach amplify this zone of discomfort. Fortunately, the experiences of innovative companies such as Timberland and Starbucks show how these challenges may be overcome.
HBS professor Jim Heskett sums up comments to this month's column. Given the possibility that a naturally pessimistic (or perhaps more realistic) CEO might adversely affect everything from market reactions to employee morale, HBS Working Knowledge readers' comments are full of advice for honesty, candor, and an optimistic bias.
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.
If your company quietly allows employees to break some rules with the tacit approval of management, that's a moral gray zone. And your company is not alone. When rules are broken but privileges are not abused, such unspoken pacts between workers and management can allow both to achieve their respective goals of expressing professional identity and sustaining efforts in positive ways, says HBS professor Michel Anteby. Q&A
For decades, goal setting has been promoted as a halcyon pill for improving employee motivation and performance in organizations. Advocates of goal setting argue that for goals to be successful, they should be specific and challenging, and countless studies find that specific, challenging goals motivate performance far better than "do your best" exhortations. The authors of this article, however, argue that it is often these same characteristics of goals that cause them to "go wild."
Published in 2008
Urgency can be a positive force in companies, says leadership expert and HBS professor emeritus John P. Kotter. His new book, A Sense of Urgency (Harvard Business Press), makes that conviction clear. Our excerpt describes how leaders might skillfully transform a crisis into an organizational motivator for the better.
Summing Up HBS professor Jim Heskett sums up comments from his readers on the topic of stretch goals. Does stretch still make sense as an organizing principle? What, if anything, should be done to ensure that stretch is allowed to flourish in companies today? What do you think?
Money can't buy you love but it can buy happiness—as long as it's money for someone else. New research by HBS professor Michael I. Norton and colleagues Elizabeth W. Dunn and Lara B. Aknin, described in the journal Science, looks into how and why spending money on others promotes happiness. Norton explains more in this Q&A.
How do chief executives establish strategic practices around their visions and intents? How do such practices make it possible to create both high commitment and high performance? The central puzzle for HBS professor emeritus Michael Beer and colleagues is not the creation of high commitment per se, but the kind of commitment that is useful for the implementation of strategy and sustainable performance. Beer et al. sought out major companies in North America and Europe that had a history of sustainable, above-average financial performance, and where there were indications of the companies being high-commitment organizations. They then conducted in-depth interviews with 26 CEOs of such companies, asking about activities and practices that help create commitment and performance.
Published in 2007
Online forum closed. It's an open question whether management, as it is currently practiced, contributes much to creativity and innovation, says HBS professor Jim Heskett. What changes will allow managers, particularly in larger organizations, to add value to the creative process? What do you think?
Gen Yers or "millennials"—those born beginning in the late 1970s—are generally bright, cheery, seemingly well-adjusted, and cooperative, says Jim Heskett. Their work styles are sometimes confounding, though. As managers, how will they shape organizations of the future? Online forum now closed.
There's know-how in business and then there's "know why." Purpose is a powerful motivator on many levels, says Jim Heskett. Can we aspire to a strong sense of "know why" even if our organization is not out to change the world? What do you think? Online forum now open.
Published in 2006
IBM has contributed more than $1 billion to the development and promotion of the Linux operating system, and other vendors such as Sun are ramping up open source software efforts and investment. Why do information technology vendors that have traditionally sold proprietary software invest millions of dollars in OSS? Where have they chosen to invest, and what are the characteristics of the OSS projects to which they contribute? This study grouped OSS projects into clusters and identified IT vendors' motives in each cluster.
A new book by Gregory Clark identifies "labor quality" as the major enticement for capital flows that lead to economic prosperity. By defining labor quality in terms of discipline and attitudes toward work, this argument minimizes the long-term threat of outsourcing to developed economies. By understanding labor quality, can we better confront anxieties about outsourcing and immigration?
On its face, self-management looks like a "win-win" answer to the scarcity of good managers and the predominance of low-involvement entry-level jobs. But are sufficient numbers of entry-level employees ready for self-management? And is management ready?
Bobby Knight and Mike Krzyzewski are arguably the two most successful college basketball coaches in the country. But their leadership styles could not be more different. Professor Scott Snook wonders: Is it better to be loved or feared?
A values-driven organization poses unique risks for its leaders—in particular, charges of hypocrisy if the leaders make a mistake. Sandra Cha of McGill University and Amy Edmondson of Harvard Business School discuss what to do when values backfire.
Published in 2005
When research on leadership pays more attention to financial results than a person's ability to give the company a sense of purpose, something crucial is lost. Three Harvard Business School scholars are working to change the debate. A Q&A with Joel M. Podolny, Rakesh Khurana, and Marya Hill-Popper.
Published in 2004
Any new CEO who tries to wield power unilaterally will pay for it, according to Harvard Business School professors Michael E. Porter, Jay W. Lorsch, and Nitin Nohria. An excerpt from Harvard Business Review.
Former CEO Lou Gerstner established a diversity initiative that embraced differences instead of ignoring them. In this Harvard Business Review excerpt, professor David A. Thomas describes why IBM made diversity a cornerstone strategy.
Confidence is infectious, says HBS professor Rosabeth Moss Kanter, author of Confidence: How Winning Streaks and Losing Streaks Begin and End. In this excerpt, she explains how leaders must bring out the best in others.
What does a team leader do so that employees know they are being supported? A Q&A with HBS professor and creativity expert Teresa Amabile about new research.
What do you do when you’re the new CEO and your employees tell you, "But that’s the way we’ve always done it"? An excerpt from Bill George’s new book, Authentic Leadership.
Many strategies never take off for lack of honest discussion, say Harvard Business School's Michael Beer and co-author Russell A. Eisenstat. A Harvard Business Review excerpt.
Published in 2003
How should organizations juggle the need for the right skills as well as the right attitudes? What goes wrong when one or the other is missing?
Polar explorer Sir Ernest Shackleton is the subject of a new HBS case study. Professor Nancy F. Koehn discusses lessons for leaders from the voyage of the Endurance.
When resources are scarce, you need a plan for managing your career, your team, and even your boss. Here's what works: balance, focus, and effective communication.
B players are the heart and soul of top organizations, says HBS professor Thomas J. DeLong. Here’s why—and what you can do to manage B players better.
In difficult times, organizational pathologies can cause a death spiral. Here’s how the CEO can win back the hearts and minds of staff, according to HBS professor Rosabeth Moss Kanter.
Published in 2002
If you want large-scale change in your organization, you must change people's behaviors, say authors John Kotter and Dan Cohen. In an excerpt from their new book, The Heart of Change: Real Life Stories of How People Change Their Organizations, the authors outline the importance of imparting urgency to the troops.
What are the characteristics of companies that successfully transition in times of dramatic change? HBS professor Rosabeth Moss Kanter separates the leaders from the laggards in times of turmoil.
We all know it's true: Managing up is as important as managing down. That's especially true when you are starting a relationship with a new boss. HBS professor Michael Watkins discusses the importance of clearly defining goals with your superior.
Leaders of professional service firms face challenges unknown to most other CEOs. Jay W. Lorsch, an HBS professor, and Thomas J. Tierney, of The Bridgespan Group, explain why, in this excerpt from their new book Aligning the Stars: How to Succeed When Professionals Drive Results. Plus: Q&A with Jay Lorsch
Think of a business leader and who comes to mind? A brash type like Jack Welch? But real leaders solve tough problems in all kinds of ways, and often quietly, says Harvard Business School's Joseph L. Badaracco, Jr.
Published in 2001
In a frank discussion on diversity with a large group of Harvard University managers, HBS professor David A. Thomas explains why managers need to do more than just mentor.
Do religion and business have anything to say to each other? HBS senior research fellow Laura Nash believes they do.
Old-school leadership practices are back in the spotlight, according to consultant Melissa Raffoni. The boisterous dot-com style has died down, she writes in this Harvard Management Update article, and now it's time to air out the tried and true.
What's up for leaders next year and in the next century? HBS faculty members Linda A. Hill, Christopher A. Bartlett, and Rosabeth Moss Kanter offer new insights in Management 21C: Someday We'll All Manage This Way, a new collection about 21st century leadership.
Leadership comes in many shapes and sizes, and often from entirely unexpected quarters. In this excerpt from the HBS Bulletin, five HBS professors weigh in with their views on leadership in action.
