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101 Things I Learned in Business School

Leading Blog

B USINESS is not a discipline, but an endeavor made up of disciplines such as accounting, communications, economics, finance, leadership, management, marketing, operations, psychology, sociology, and strategy. A moral hazard exists when organizations and individuals are not required to bear the negative consequences of their failures.

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How to Diversify Your Happiness

Next Level Blog

As a simple example, it makes sense for many people to invest in both stocks and bonds since when one of the two is up the other is often down. You don’t get crazy high returns when you invest this way, but you usually avoid catastrophic losses. Not super sexy rates of return, but rates in which you can have some degree of confidence.

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How to Give a Robot a Job Review

Harvard Business Review

Microsoft’s recent Tay debacle is a perfect example of what happens when you don’t take machine learning “training” seriously enough. Empowering smart machines to — pun intended — live up to their potential may well become the essential new 21st-century leadership skill.

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Requiring Companies to Disclose Climate Risks Helps Everyone

Harvard Business Review

” In such a case, a firm’s leadership may respond sluggishly to evolving risks. A recent NBER working paper documents that from 1985 to 2014 this trading strategy would have yielded a large annualized average rate of return of 9.2%.

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Most Industries Are Nowhere Close to Realizing the Potential of Analytics

Harvard Business Review

An examination of the telecom industry , for example, shows that the analytics leaders have posted three to five times higher returns on their big data investment than the typical telecom company. Lower returns cannot be simply chalked up to the fact that companies are not investing at scale.

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3 Emerging Market Risks Companies Should Watch for in 2018

Harvard Business Review

This means that many emerging market risks get cut from the senior leadership agenda. We believe that business-friendly candidates could win, but companies should make sure that their Mexico investments have an acceptable rate of return even under this populist scenario. When it comes to Brazil, the economy is picking up.

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What to Measure If You’re Mission Driven

Harvard Business Review

Instead, its leadership wondered how to gauge the transformation of people that Bacon identified as the real objective. Regular attendance at a weekly study group, for example, is scored higher than signing a petition. Fair warning: the result will probably be much smaller than your mailing list total.