During the Covid-19 crisis, resilience rose to the top of the strategic agenda with many leaders also indicating a desire to extract lessons to increase preparedness for future crises. Although less emphasized in stable periods, our research indicates that resilience creates significant value and does so well beyond times of crisis. Nearly two-thirds of long-run outperformers do better than peers in response to shocks.
Crises often precipitate or accentuate the need to transform because of the immediate pressure on performance. Crisis-driven transformations often aim to ameliorate performance pressure by increasing cost and…
Interviewed by Philipp Carlsson-Szlezak
Philippe Aghion is professor of economics at the London School of Economics and Collège de France and INSEAD, and formerly of Harvard University.
He joins BCG Global Chief Economist Philipp Carlsson-Szlezak in conversation to discuss his new book The Power of Creative Destruction: Economic Upheaval and the Wealth of Nations, a broad take on the different variants of capitalism and their shortcomings. Among other things, the conversation zooms in on the trade-off between innovation/growth and social protection and what could be done to balance these more effectively. Prof. …
Reports of “labor shortages” have grown as the US economy continues its strong rebound, giving rise to both microeconomic concerns (hiring) and macroeconomic worries (inflation). However, record high job openings look more like bottlenecks to us than “shortages.”
Both shortages and bottlenecks can arise when labor demand is too high, supply too low, or both — where they differ is their permanence. On the demand side we use a “hiring-firing” matrix, updated with today’s data release, to illustrate the state of labor demand across 28 sectors, very little of which has the hallmarks of a…
We need imagination now more than ever — to find opportunities in adversity, rethink our businesses, and discover new paths to growth. Yet too many companies have lost their ability to imagine. What is this mysterious capacity? How does imagination work? And how can organizations keep it alive and harness it systematically?
The Imagination Machine, published by Harvard Business Review Press, answers these questions and more. Drawing on the experience and insights of CEOs across several industries, as well as lessons from neuroscience, computer science, psychology, and philosophy, BCG’s Martin Reeves and Jack Fuller…
Interview by Massimo Russo
The benefits of sharing data means more and more of our data is centralized, potentially putting it at risk. But new models are emerging, distributing data to keep it safe while keeping all of the advantages.
In this episode of the Inspiring the Next Game podcast series, we hear from Professor Sandy Pentland, Professor at MIT and Co-Creator of the MIT Media Lab, on the future of data sharing and AI.
Companies are investing in technology initiatives to invent new business models and drive efficiencies in their business. There is no doubt that technology has enabled the creation of the world’s most valuable companies. At the end of 2020, seven out of the top ten most highly valued companies and 25% of the S&P value was from GAFAM (Google, Apple, Facebook, Amazon, Microsoft). …
As an extraordinary recovery is underway, it won’t be long before business leaders face a perennial political economy question: With wages rising and workers’ claim on economic output growing, will firms’ profits come under pressure?
With tight economic conditions all but guaranteed, there are multiple scenarios of how output will be shared between workers and firms in the post-Covid expansion. The policymakers who have placed the big stimulus bet also will have to negotiate the path ahead.
We’ve identified a small number of plausible scenarios that sketch the interaction of wage growth…
Interviewed by Martin Reeves
Olivier Sibony is a Professor at HEC Paris and an Associate Fellow of Saïd Business School in Oxford University.
Together with Daniel Kahneman and Cass R. Sunstein he recently published a new book, Noise: A Flaw in Human Judgment, which focuses on the scatter inherent in decision making.
Learn more about how noise differs from bias, how it arises, and how it can be reduced through what the authors call decision-making hygiene.
In a conversation with Martin Reeves, Chairman of the BCG Henderson Institute, Sibony discusses how noise differs from bias, how noise happens, and gives…
Interviewed by David Young
In the newest episode of our Building Competitive Advantage in a Sustainable World podcast, David Young — a BCG Henderson Institute Fellow researching Sustainable Business Model Innovation — continues his interview with Schneider Electric’s Chief Strategy & Sustainability Officer, Olivier Blum.
Together, they discuss the importance of innovation to reframe and unlock sustainability as a source of advantage. In these efforts, it is critical to engage customers and empower employees to drive sustainable innovations. …
By Johann Harnoss and Anna Schwarz
Is Google innovative and diverse, or innovative because it’s diverse?
Innovation and diversity often go hand in hand. Does diversity really drive innovation, or are innovative companies just naturally more diverse? Our societies need evidence-based answers to such foundational questions.
Every year in May, the world celebrates a ‘month of diversity’. The institution of such an awareness month shows both societies’ appreciation of the value of diversity as well as the need to promote it. …
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