Tag Archives: Organization

This is the one secret to managing an organization

By Maynard Webb – It’s all about people. You don’t have anything if don’t have great people doing great things.

So, what’s the secret? You have to have conviction about what you are doing. You have to have a mindset that says you are doing something amazing and exciting and people will want to be a part of it. In order to attract people to your endeavor, you must believe that it’s an incredible opportunity for others and you must execute and deliver on that promise.

Always be on the lookout for great people, and do so with a mindset of abundance. People are yearning for good opportunities and you have the privilege of being able to offer them a chance. See what you have as what’s scarce—a rare and special opportunity. Instead of thinking of hiring as chore, see it as a gift that can change someone’s life.

Always pick and promote people who will help you and your culture grow.

Don’t eliminate people because they don’t seem like a “culture fit”—embrace differences and stay rigorously focused on the cultural attributes that actually define your company. more>

No, Productivity Does Not Explain Income

Marginal productivity is a thought virus that is sabotaging the scientific study of income.
By Blair Fix – Did you hear the joke about the economists who tested their theory by defining it to be true? Oh, I forgot. It’s not a joke. It’s standard practice among mainstream economists. They propose that productivity explains income. And then they ‘test’ this idea by defining productivity in terms of income.

The marginal productivity theory of income distribution was born a little over a century ago. Its principle creator, John Bates Clark, was explicit that his theory was about ideology and not science. Clark wanted show that in capitalist societies, everyone got what they produced, and hence all was fair.

Clark was also explicit about why his theory was needed. The stability of the capitalist order was at stake!

Clark created marginal productivity theory to explain class-based income — the income split between laborers and capitalists. But his theory was soon used to explain income differences between workers.

In the mid 20th century, neoclassical economists invented a new form of capital. Workers, the economists claimed, owned ‘human capital’ — a stock of skills and knowledge. This human capital made skilled workers more productive, and hence, made them earn more money. So not only did productivity explain class-based income, it now explained personal income.

Given the problems with comparing the productivity of workers with different outputs, you’d think that marginal productivity theory would have died long ago. After all, a theory that can’t be tested is scientifically useless.

Fortunately (for themselves), neoclassical economists don’t play by the normal rules of science. If you browse the economics literature, you’ll find an endless stream of studies claiming that wages are proportional to productivity. Under the hood of these studies is a trick that allows productivity to be universally compared. And even better, it guarantees that income will be proportional to productivity. more>

Europeanization from below: still time for another Europe?

By Donatella Della Porta – Progressive social movement organizations have long been critical of the European Union—and progressively more so. Yet at the same time they have sought to promote ‘another Europe’.

They Europeanized their organizational networks and action strategies, developing cosmopolitan identities.

Research on social movements and Europeanization had indicated a move away from protest towards advocacy, understood as an adaptation of movements to EU structures. But there was also evidence of a repoliticization of EU issues, which saw the selective use of unconventional, protest-oriented strategies among groups forming part of the GJM (global justice movement).

The increasing criticism of existing EU institutions has targeted their democratic deficit, perceived as worsening during the financial crisis and counterposed to national sovereignty, but also their policies, perceived as less and less driven by considerations of social justice and solidarity. There has been criticism too of the definition of Europe as an exclusive polity, with proposals to go instead ‘beyond Europe’. more>

Updates from Ciena

Tomorrow’s cities: evolving from “smart” to Adaptive
Cities are going smart – trying to deal with the proliferation of people, sensors, automobiles and a range of devices that demand network access and generate mind-boggling amounts of data. However, being smart is not an instance in time, and a “smart city” is not static. To be worthy of the name, a smart city must continually evolve and stay ahead of demand. This is only possible if the city’s underlying network is just as smart and can adapt to its constantly changing environment.
By Daniele Loffreda – Cities are constantly in flux. Populations move in; populations move out. Demographics change, economic growth falls and then soars. New leadership steps in and—if you believe all the commercials—technology will make everyone’s life better.

Municipal governments understand the need to consider which smart city applications will best serve the demands of their diverse demographic segments. The City of Austin’s Head of Digital Transformation, Marni White, summed up these challenges stating, “Our problems will continue to change over time, so our solutions also need to change over time.”

The one constant in the smart city is the network running underneath these solutions—and the truly smart city has a network that adapts.

Smart city applications must be aligned with where a city and its citizens want to go. Some municipalities that created model smart-cities early on have had to initiate extensive revamping. For example, the City of Barcelona has long been at the cutting edge of using digital devices and the Internet of Things to improve municipal operations; however, in 2017, Mayor Ada Colau gave Barcelona’s CTO, Francesca Bria, a mandate to “rethink the smart city from the ground up.”

This meant shifting from a “technology-first” approach, centered on interconnected devices, to a “citizen-first” focus that responds to the changing needs that residents themselves help define. more>

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A New Americanism

Why a Nation Needs a National Story
By Jill Lepore – Carl Degler issued a warning: “If we historians fail to provide a nationally defined history, others less critical and less informed will take over the job for us.”

The nation-state was in decline, said the wise men of the time. The world had grown global. Why bother to study the nation?

Francis Fukuyama is a political scientist, not a historian. But his 1989 essay “The End of History?” illustrated Degler’s point. Fascism and communism were dead, Fukuyama announced at the end of the Cold War.

Fukuyama was hardly alone in pronouncing nationalism all but dead. A lot of other people had, too. That’s what worried Degler.

Nation-states, when they form, imagine a past. That, at least in part, accounts for why modern historical writing arose with the nation-state.

But in the 1970s, studying the nation fell out of favor in the American historical profession. Most historians started looking at either smaller or bigger things, investigating the experiences and cultures of social groups or taking the broad vantage promised by global history.

But meanwhile, who was doing the work of providing a legible past and a plausible future—a nation—to the people who lived in the United States? Charlatans, stooges, and tyrants.

The endurance of nationalism proves that there’s never any shortage of blackguards willing to prop up people’s sense of themselves and their destiny with a tissue of myths and prophecies, prejudices and hatreds, or to empty out old rubbish bags full of festering resentments and calls to violence.

When historians abandon the study of the nation, when scholars stop trying to write a common history for a people, nationalism doesn’t die. Instead, it eats liberalism.

Maybe it’s too late to restore a common history, too late for historians to make a difference. But is there any option other than to try to craft a new American history—one that could foster a new Americanism? more>

Overcoming The Trust Deficit

By Dimitris Avramopoulos – A prosperous, secure and united Europe will not be delivered to us on a silver platter. We will have to fight for it more than ever – with facts, with authenticity, with courage. It will not be enough to have the right solutions on offer – our citizens will have to be willing to trust and accept them too.

Citizens in Europe and across the world today are experiencing a growing deficit of trust. While the world is increasingly becoming globalized, interconnected, digitized and information-saturated, citizens are having trouble discerning what is fact and what is fancy – and most importantly: who to turn to and who to trust. Our citizens are looking for clear and straightforward answers and solutions, in a reality that is becoming all the more complex.

Populists and nationalists are experiencing heydays in times like these. What they tell citizens and their electorate no longer has to be true, as long as it is simple and appealing. We have seen very recently how in the absence of an actual crisis or problem, an imaginary one is created instead and how the seeds of distrust, confusion and fear are sown daily.

Today, there is no single, coherent enemy or threat: terrorism, cybercrime or hybrid threats constitute a particularly toxic and interchangeable cocktail of risks that we need to face on a daily basis, with the same unity in our approach. The cooperation between Member States was enhanced especially in the field of exchange of information between law enforcement authorities, crucial to fight terrorism, organized crime and cybercrime. more>

Averting The Death Of Social Democracy

By Neal Lawson – Reformist social democracy has just two problems that result in its crisis. The first is that it’s heading in the wrong direction. The second is that it’s heading in the wrong direction in the wrong way.

If this crisis is to be averted then we need to understand why the ends and means are wrong and establish a different set of goals and ways of achieving them – ones applicable to the tail end of the second decade of the 21st century.

To set out an alternative course and process to get there is not so difficult. Some ideas are offered below. Others are available. What is difficult, and could well be impossible, is the ability of social democrats to truly adapt or transform both their course and their culture. Instead of change, their stock response is to blame the media, poor communications or even the people, and go on doing the same thing and expecting a different outcome.

Even when some recognize the scale of the crisis, they shrug because meaningful change is more difficult to face than the prospect of electoral annihilation. If social democrats can’t or won’t transform themselves then it will be up to others to carry the torch for a society that is more equal, democratic and sustainable and to fight the lurch to the far right.

Let’s start by observing that the crisis is not tactical or cyclical but existential because it is cultural and structural. It can be witnessed most obviously and dramatically through the electoral decline of almost every social democratic party in Europe. The Dutch, French and Greek parties have or have almost been eradicated. The Germans, the Italians and even the Scandinavians and Nordics struggle for life. more>

How a World Order Ends

And What Comes in Its Wake
By Richard Haass -A stable world order is a rare thing. When one does arise, it tends to come after a great convulsion that creates both the conditions and the desire for something new. It requires a stable distribution of power and broad acceptance of the rules that govern the conduct of international relations. It also needs skillful statecraft, since an order is made, not born. And no matter how ripe the starting conditions or strong the initial desire, maintaining it demands creative diplomacy, functioning institutions, and effective action to adjust it when circumstances change and buttress it when challenges come.

Eventually, inevitably, even the best-managed order comes to an end. The balance of power underpinning it becomes imbalanced. The institutions supporting it fail to adapt to new conditions. Some countries fall, and others rise, the result of changing capacities, faltering wills, and growing ambitions. Those responsible for upholding the order make mistakes both in what they choose to do and in what they choose not to do.

But if the end of every order is inevitable, the timing and the manner of its ending are not. Nor is what comes in its wake. Orders tend to expire in a prolonged deterioration rather than a sudden collapse. And just as maintaining the order depends on effective statecraft and effective action, good policy and proactive diplomacy can help determine how that deterioration unfolds and what it brings. Yet for that to happen, something else must come first: recognition that the old order is never coming back and that efforts to resurrect it will be in vain.

As with any ending, acceptance must come before one can move on.

Although the Cold War itself ended long ago, the order it created came apart in a more piecemeal fashion—in part because Western efforts to integrate Russia into the liberal world order achieved little. One sign of the Cold War order’s deterioration was Saddam Hussein’s 1990 invasion of Kuwait, something Moscow likely would have prevented in previous years on the grounds that it was too risky. Although nuclear deterrence still holds, some of the arms control agreements buttressing it have been broken, and others are fraying.

The liberal order is exhibiting its own signs of deterioration. Authoritarianism is on the rise not just in the obvious places, such as China and Russia, but also in the Philippines, Turkey, and eastern Europe. Global trade has grown, but recent rounds of trade talks have ended without agreement, and the World Trade Organization (WTO) has proved unable to deal with today’s most pressing challenges, including nontariff barriers and the theft of intellectual property.

Resentment over the United States’ exploitation of the dollar to impose sanctions is growing, as is concern over the country’s accumulation of debt. more>

Updates from Chicago Booth

How poverty changes your mind-set
Understanding psychology may be key to addressing the problem
By Alice G. Walton – In a 2013 study published in Science, researchers from the University of Warwick, Harvard, Princeton, and the University of British Columbia find that for poor individuals, working through a difficult financial problem produces a cognitive strain that’s equivalent to a 13-point deficit in IQ or a full night’s sleep lost. Similar cognitive deficits were observed in people who were under real-life financial stress. Theirs is one of multiple studies suggesting that poverty can harm cognition.

But it was the fact that cognition seems to change with changing financial conditions that Chicago Booth’s Anuj K. Shah, along with Harvard’s Sendhil Mullainathan and Princeton’s Eldar Shafir, two authors of the Science paper, were interested in getting to the root of.

They suspected that poverty might essentially create a new mind-set—one that shifts what people pay attention to and therefore how they make decisions.

“Some say you really have to understand the broad social structure of being poor, and what people do and don’t have access to,” says Shah. “Others say that poor individuals have different values or preferences. We stepped back and asked: ‘Is there something else going on?’” more>

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Updates from Chicago Booth

Why we’re all impact investors now
By Chana R. Schoenberger – Laurence “Larry” Fink, the founder and CEO of BlackRock, the world’s largest asset manager, which has more than $6 trillion in assets under management, issued an open letter to CEOs this past January—and reportedly sent many of them into a tizzy.

Fink’s letter said society is demanding that companies, public and private, need to “serve a social purpose,” benefiting not just shareholders but also employees, customers, and neighbors. And, he explained, from that point forward, BlackRock would be “eager to participate in discussions about long-term value creation and work to build a better framework for serving all your stakeholders.”

Executives, he wrote, should be able to answer their questions about the company’s actions. For example, what role does the company play in the community? How is it managing its impact on the environment? Is it working to create a diverse workforce?

“The time has come for a new model of shareholder engagement,” he wrote.

For nearly 50 years, many have been guided by the idea, laid out most famously by Milton Friedman, that the most appropriate way to create social change is to give profits to investors, and taxes to the government, and use that money to make an impact. more>

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