We get the capitalism we deserve

wall street

Every era, every region and every civilization gets the capitalism it deserves. Currently, considered alternatives to capitalism are hard to identify. But within capitalism, very different variants and alternatives can be observed and even more of them can be imagined. It is their development that matters. The reform of capitalism is a permanent task. In this the critique of capitalism plays a central role.

in Jürgen Kocka, Capitalism: A Short History.

(h/t Diane Coyle, photo credit Martin Ceralde)

Less time does not promote deeper thought

mailboxes

[T]he more urgently technology incentivizes us to respond to a proposition, the more we rely on our own heuristics. Less time does not promote deeper thought.

Today, when you are compelled to comment right away, ask yourself, “How would I respond to this differently if I had to invest the time and effort to get an envelope and a stamp?”

via James Shelley – photo credit: Daria Nepriakhina

No need for testing. You CAN interview for emotional intelligence

Last week I was facilitating a People and Business Management workshop with managers from all over the U.S. and a question came up about whether personality instruments might be useful in the hiring process.

As luck would have it, I read an article in the Harvard Business Review that addresses this very issue. Here’s the author’s answer:

Don’t:

  • Use personality tests as a proxy for EI. Most of these tests attempt to measure what they say they do: personality. They do not measure specific competencies of emotional intelligence such as self-awareness, positive outlook, achievement orientation, empathy, or inspirational leadership.

  • Use a self-report test. There are two reasons these don’t work. First, if a person is not self-aware, how can he possibly assess his own emotional intelligence? And if he is self-aware, and knows what he’s missing, is he really going to tell the truth when trying to get a job?

  • Use a 360-degree feedback instrument, even if it is valid and even if it measures EI competencies, like the Emotional and Social Competency Inventory (ESCI) does. A tool like 360-degree feedback ought to be used for development, not evaluation. When these instruments are used to evaluate, people game them by carefully selecting the respondents, and even prepping them on how to score.

Holding a meeting of people from different cultures

In one of the People and Business Management workshops that I facilitate we ask participants to outline how they would approach their first meeting as the manager of a multicultural team. I’m always pleasantly surprised by the imagination and inclusiveness of the responses.

This article in the Harvard Business Review provides useful guidance. Here’s an excerpt:

Do

  • Study up on the variations that exist among cultures and how those differences play out in the workplace
  • Create protocols and establish norms so that your colleagues understand how meetings will run
  • Incentivize colleagues to step outside their cultural comfort zones by institutionalizing rewards around what you’re trying to motivate people to do

Don’t

  • Be hung up on how people from certain cultures are supposed to act—remember, people are capable of adapting and adjusting their cultural default
  • Force a perfect dynamic in meetings—solicit colleagues’ opinions in other venues and encourage people to provide feedback in different ways
  • Overlook the importance of team bonding—encourage colleagues to get to know each other outside of meetings so that cultural differences won’t seem as glaring

 

Visualizing empires decline

I am observing a surge in the management and organizations literature on the life and survival of corporations. I’m keeping a watchful eye on it and will report when relevant. In the meantime, here’s a visual refresher on the life and survival of empires.

The blind side of networks

Twitter will suggest that you listen to people who listen to each other. Amazon will suggest that you read something very much like what you just read. Even your search engine will try to make sure that you get results that are similar to the ones you clicked on last time. If you go with the flow, you’ll end up hearing the same narrow view recycled repeatedly – yet you’ll think you did your due diligence.

Don’t fool yourself.

Gather information from those who do not communicate with one another. In fact, you want to gather information from entire networks that do not communicate with one another. Truly rich and diverse information comes only when you hear, separately and independently, from “worlds” that do not overlap: from different parts of the earth, different economic sectors, different social demographics, different religions, languages, ideologies and cultures.

via Think You’re Well Connected? Stop Fooling Yourself.

20 years after Disruptive Innovation

The theory of disruptive innovation was introduced in the Harvard Business Review in 1995 and it has since become part of common business parlance. Twenty years after the publication of the original article, Clayton Chistensen, Michael Raynor, and Rory McDonald present a state of the art in a recent HBR article.

The authors fear that

disruption theory is in danger of becoming a victim of its own success. Despite broad dissemination, the theory’s core concepts have been widely misunderstood and its basic tenets frequently misapplied. Furthermore, essential refinements in the theory over the past 20 years appear to have been overshadowed by the popularity of the initial formulation. As a result, the theory is sometimes criticized for shortcomings that have already been addressed.

And they are not pleased either with the way the expression itself is being used.

Too frequently, they use the term loosely to invoke the concept of innovation in support of whatever it is they wish to do. Many researchers, writers, and consultants use “disruptive innovation” to describe any situation in which an industry is shaken up and previously successful incumbents stumble. But that’s much too broad a usage.

Nor how

executives with a good understanding of disruption theory tend to forget some of its subtler aspects when making strategic decisions.

They identify four points that get overlooked or misunderstood:

  1. Disruption is a process.
  2. Disrupters often build business models that are very different from those of incumbents.
  3. Some disruptive innovations succeed; some don’t.
  4. The mantra “Disrupt or be disrupted” can misguide us.

 

disruptive innovation

The latter part of the article reviews ways in which the authors’ thinking about disruptive innovation has evolved and it ends on a cautionary note:

Disruption theory does not, and never will, explain everything about innovation specifically or business success generally. Far too many other forces are in play, each of which will reward further study. Integrating them all into a comprehensive theory of business success is an ambitious goal, one we are unlikely to attain anytime soon.

See also A new version of Porter’s five-forces model.

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