Harvard Business Review - 2016.10.pdf

OCTOBER 201638 The Big IdeaThe Cost of Inconsistent Decision MakingDaniel Kahneman et al.100 The HBR Interview Carlos Ghosn on the Future of the Auto Industry112 ExperienceDoes Power Have to Corrupt?Dacher KeltnerBUILDING A WORKFORCE FOR THE FUTUREHow to ensure that your team can handle any change PAGE 49CartierShop the collection www.cartier.us-1-800-cartierCALIBRE DE CARTIER DIVERM A N U FAC T U R E M OV E M E N T 1 9 0 4 M CWATER-RESISTANT TO 300 METERS,THE CALIBRE DE CARTIER DIVER WATCH IS AN AUTHENTIC DIVING WATCH.FITTED WITH THE 1904 MC MOVEMENT,IT COMBINES THE HIGH TECHNICAL REQUIREMENTS OF THE ISO 6425:1996 STANDARD WITH THE ASSERTIVE AESTHETICS OF THE CALIBRE DE CARTIER WATCH.ESTABLISHED IN 1847,CARTIER CREATES EXCEPTIONAL WATCHES THAT COMBINE DARING DESIGN AND WATCHMAKING SAVOIR-FAIRE.THE VALUE WE PROVIDE OUR JETSUITE CLIENTS IS UNPARALLELED IN THE PRIVATE AVIATION INDUSTRY.BETWEEN OUR EXCLUSIVELY COMPANY-OWNED AND OPERATED FLEET,TRANSPARENT PRICING,DEDICATED CUSTOMER SERVICE AND ADDED VALUE,THERE IS NO BETTER SOLUTIONFOR YOUR TRAVEL NEEDS.JETSUITE.COM 866-779-77702016 JetSuite All Rights Reserved.All fl ights operated by JetSuite Air,FAA Air Carrier Certifi cate#9SUA667October 2016Contents50MANAGING ORGANIZATIONSWhy Leadership Training Failsand What to Do About It Until problems with organizational design and managerial processes are fixed,the effects of training will just slip away.Michael Beer,Magnus Finnstrm,and Derek Schrader58ASSESSING PERFORMANCEThe Performance Management Revolution The dreaded annual review is giving way to more-frequent,development-focused conversations between managers and subordinates.Peter Cappelli and Anna Tavis68MANAGING PEOPLEAT&Ts Talent OverhaulAs it reinvents itself for the digital age,the communications giant is revamping the skills of hundreds of thousands of employees.John Donovan and Cathy Benko74THE FUTUREGlobalization,Robots,and the Future of Work Competitive advantage will lie in companies ability to rapidly shift the location of work according to the availability of skills.Former CEO of ManpowerGroup Jeffrey Joerres,interviewed by Amy BernsteinSPOTLIGHT ON BUILDING THE WORKFORCE OF THE FUTUREABOVE Ben Zank Going Nowhere,Untitled 5 Gicle on paper 2015ON THE COVERPeter CrowtherOctober 2016Harvard Business Review5Features October 2016LEANDRO CASTELAO38THE BIG IDEANoiseHuman judgment is often unduly influenced by irrelevant factors like mood and the weatherwhich results in decisions that are surprisingly costly to companies.Daniel Kahneman,Andrew M.Rosenfield,Linnea Gandhi,and Tom Blaser80STRATEGY The Ecosystem of Shared ValueThe collective-impact movement gives companies a way to advance social progress while finding economic opportunities that their competitors miss.Mark R.Kramer and Marc W.Pfitzer90STRATEGYThe Transformative Business ModelSix features recur among new business models.The more of them yours has,the more likely you are to transform your industry.Stelios Kavadias,Kostas Ladas,and Christoph Loch100THE HBR INTERVIEW“Making the Car a Mobile,Connected Workspace”Equipping cars with internet connectivity and autonomous drive is the wave of the future.Renault-Nissan Alliance CEO Carlos Ghosn,interviewed by Adi IgnatiusHBR.ORG6 Harvard Business ReviewOctober 2016Powerful people are more likely to be rude,selfish,and unethical.page 112Departments October 2016IN EVERY ISSUE 10 From the Editor 12 Contributors 18 Interaction 30 Strategic Humor 125 Executive SummariesQuantifying the value of social media followers page 24EXPERIENCE112MANAGING YOURSELFDont Let Power Corrupt YouOnce people reach a position of privilege,the virtues that helped them rise start to fade.Dacher Keltner117CASE STUDY Competing with a Goliath A Peruvian apparel company struggles to position itself against a global brand.Jill Avery122SYNTHESISResisting the Hard Sell To fight the lures of skilled persuaders,first look within.Kevin Evers128LIFES WORKPenn Jillette The magician talks about how he and his partner,Teller,develop their ideas,what kind of relationship they have,and the secret to connecting with an audience.IDEA WATCH22COMPENSATIONThe Case Against Long-Term Incentive PlansResearch shows that pay for performance isnt working and suggests better ways to structure executive packages.PLUS Why“likes”on Facebook are overrated,how workers quit(and why companies should pay attention),and more28DEFEND YOUR RESEARCHYoure Likely to Live Longer If You Retire After 65Working an extra year decreases mortality rates by 11%,a new analysis shows.33HOW I DID ITThe CEO of Popeyes on Treating Franchisees as the Most Important Customers The executive team focused on owners because“no one has more skin in the game.”Cheryl Bachelder128MICHAEL LEWIS;OWEN DAVEY;MELINDA BECK“We never compromise,because that can only lead to mediocrity.”HBR.ORG8 Harvard Business ReviewOctober 2016We work with the worlds leading organizations to create places that amplify the performance of their people,teams and enterp