MIT Sloan Management Review Fall 2022

THE 2020s ARE PLACING EXTRAORDINARY DEMANDS ON organizations and the people who run them. Effective leaders must have courage and a strong sense of purpose, and be able to adapt to rapidly changing circumstances. Many of the biggest challenges call less for vision and the ability to inspire — the historically vaunted hallmarks of leadership — and more for being able to consider new perspectives and test new approaches to getting work done. Companies that have diverse perspectives and a broader range of experiences on their leadership teams and boards may be better able to navigate the volatile business conditions of the 2020s. Yet, despite pressure from shareholders and investment firms, companies struggle to bring in new directors with markedly different points of view and instead too often merely replace outgoing…

One of the founders and architects of the field of organizational development, professor Richard Beckhard was a member of the MIT Sloan School of Management faculty for more than 20 years. A longtime friend of MIT Sloan Management Review, Beckhard was known for his efforts to help organizations function in a more humane and high-performing manner and to empower people to be agents of change. His books include Organizational Development: Strategies and Models; Organizational Transitions: Managing Complex Change; Chang ing the Essence: The Art of Creating and Leading Fundamental Change in Organizations; and his autobiography, Agent of Change: My Life, My Practice. The prize was established in 1984 by the faculty of the MIT Sloan School of Management upon professor Beckhard’s retirement, and it was renamed the Richard Beckhard Memorial Prize after his…

Globalization is in retreat, and multinationals are on the defensive. Across the world, countries rich and poor have erected trade barriers and set up outright export bans to cope with the pandemic and the war in Ukraine. In 2020, respirators, surgical gowns, medicines, and other lifesaving equipment were hard to come by. Two years later, it’s wheat, palm oil, beef, and other food products — and that’s not including other items related to the sanctions that nations have imposed on Russia. Citing national interest, governments have reclaimed much of the power multinationals had acquired over decades of almost unfettered globalization. The tilt in the balance of power can be traced back to the 2008 global financial crisis, when banks and corporations had to be bailed out by governments with taxpayers’ money.…

An increasing number of CEOs are deciding to leave their posts on their own terms in the wake of COVID-19, for factors ranging from burnout to wanting to move on to the next stage of their careers and lives. Others are simply coming to the end of their agreedupon term in office. Most want to minimize disruption to the company and preserve a positive legacy, but best practices on how to navigate the last 100 days of a CEO’s tenure are an under-researched topic. Beyond the first step of the CEO and board agreeing to an orderly transition, including timing and financial terms, how should the CEOs and boards proceed? A CEO’s last 100 days typically can be divided into three phases: preannouncement, when only the CEO, chair, and board are…

Confronted by employees seeking meaningful work, customers demanding sustainable and traceable products, and investors who want companies to do both well and good — while inequality is rising and climate change is an increasingly dire threat — business leaders are redefining the purpose of their organizations. These days, one is hard-pressed to find a major company that has not incorporated the greater good into a statement that lays out the organization’s reason for existing. But if corporate purpose is to be more than window dressing and deliver on the promise of an engaged, motivated workforce and more loyal customers, companies must develop a capacity that is still lagging for most: They must be able to accurately assess the results of executing their purpose-driven strategy, particularly when that strategy extends to making…

Turning trash into treasure through repurposing and recycling can be a very sustainable materials sourcing strategy. But marketing the products that result can be a challenge, particularly for upcycled items with visible traces of their past, like bags made from old bicycle inner tubes, tables made from decommissioned boats, and laptop sleeves made from used mosquito nets. Visible traces of a product’s past might show that the repurposing process has minimized energy use, making a product particularly sustainable. However, repurposing products and materials comes with unique production challenges, so they are typically not low cost. Rather than paying a premium for products made from trash, many consumers would rather spend their money on brand-new items. How can we convince consumers to pick repurposed products that might show signs of wear and tear…