HBR.ORGJanuary–February2020WhenDataCreatesCompetitiveAdvantage76TheNewAnalyticsofCulture60CompetingintheAgeofAI102TheElementsofGoodJudgment...andwhenitdoesn’t94January–February202041SPOTLIGHTTHELOYALTYECONOMY42STRATEGYAreYouUndervaluingYourCustomers?It’stimetostartmeasuringandmanagingtheirworth.RobMarkey51PERFORMANCEMEASUREMENTHowtoValueaCompanybyAnalyzingItsCustomersAguidetocustomer-basedcorporatevaluationDanielMcCarthyandPeterFader56CUSTOMERS“OverTime,theMarketWillDemandThisInformation”VanguardchairmanemeritusJackBrennanoncorporatedisclosureDanielMcGinnContents“Managingforloyaltyhasgonefromanintuitiveideatoaconceptualgoaltoanoperationalpractice.”PAGE56COVERPHOTOGRAPHPotter/GettyImagesBettmann/GettyImagesHarvardBusinessReviewJanuary–February20205January–February202094STRATEGYWhenDataCreatesCompetitiveAdvantage......andwhenitdoesn’tAndreiHagiuandJulianWright102LEADERSHIPTheElementsofGoodJudgmentHowtoimproveyourdecision-makingSirAndrewLikierman112OPERATIONSTamingComplexityMakesurethebenefitsofanyadditiontoanorganization’ssystemsoutweighitscosts.MartinReevesetal.124ECONOMICS&SOCIETYChokePointsCountriesareturningeconomicinfrastructureintopoliticalweapons,andthatposesamajorrisktobusiness.HenryFarrellandAbrahamL.Newman59FEATURES60TECHNOLOGYCompetingintheAgeofAIHowmachineintelligencechangestherulesofbusinessMarcoIansitiandKarimR.Lakhani68HEALTHCAREManagingtheMostExpensivePatientsAnewprimary-caremodelcanlowercostsandimproveoutcomes.RobertPearlandPhilipMadvig76ORGANIZATIONALCULTURETheNewAnalyticsofCultureWhatemail,Slack,andGlassdoorrevealaboutyourorganizationMatthewCorritore,AmirGoldberg,andSameerB.Srivastava84HUMANRESOURCESTheTransformerCLOTheroleofchieflearningofficerisn’tjustabouttraininganymore.AbbieLundbergandGeorgeWestermanIllustrationbyKEITHNEGLEY946HarvardBusinessReviewJanuary–February2020IDEAWATCHNewResearchandEmergingInsights17LEADERSHIPWhyBoardsShouldWorryAboutExecutives’Off-the-JobBehaviorDUIs,traffictickets,andotherfactorscanraiseon-the-jobris...
