HBR IdeaCast

Oliver Hart, Nobel-winning Harvard economist, and Kate Vitasek, faculty at the University of Tennessee, argue that many business contracts are imperfect, no matter how bulletproof you try to make them. Especially in complicated relationships such as outsourcing, one side ends up feeling like they're getting a bad deal, and it can spiral into a tit for tat battle. Hart and Vitasek argue that companies should instead adopt so-called relational contracts. Their research shows that creating a general playbook built around principles like fairness and reciprocity offers greater benefits to both businesses. Hart and Vitasek, with the Swedish attorney David Frydlinger, cowrote the HBR article "A New Approach to Contracts."

Laura Morgan Roberts, professor at the University of Virginia's Darden School of Business, says that organizations are still falling short on promoting racial diversity, particularly in their most senior ranks. While many large companies have "inclusion" initiatives, most leaders still shy away from frank discussions about how the experiences of their black employees and executives -- including their feelings of authenticity and potential for advancement -- differ from those of their white peers. She points to several ways we can change these dynamics. With David Thomas and Anthony Mayo, Morgan Roberts is co-author of the book “Race, Work, and Leadership: New Perspectives on the Black Experience.”

Julie Zhuo, Facebook’s VP of product design, started at the company as its first intern and became a manager at the age of 25. Like many first-time bosses, she made many missteps and acted how she thought managers were supposed to act. Eventually, she grew to find joy in the role and today she leads hundreds of people. She says that becoming a great manager also helps you know yourself better. Zhuo is the author of the book "The Making of a Manager: What to Do When Everyone Looks to You."

Daisy Dowling, founder and CEO of Workparent, says that moms and dads with jobs outside the home don't have to feel stressed or guilty about trying to balance their professional and personal lives. The key is to tease apart the different challenges -- from coping with feelings of loss to managing practicalities -- and to adopt strategies to better guide you through each. She points out that while a lot of emphasis is placed on parental leave, and especially new mothers, people at all stages of parenting need practical, immediate, and effective solutions they can implement themselves. Dowling is the author of the HBR article "A Working Parent’s Survival Guide."

Matt Beane, assistant professor at the University of California, Santa Barbara, finds that robots, machine learning, and AI are changing how we train for our jobs — not just how we do them. His study shows that robot-assisted surgery is disrupting the traditional learning pathway of younger physicians. He says this trend is emerging in many industries, from finance to law enforcement to education. And he shares lessons from trainees who are successfully working around these new barriers. Beane is the author of the HBR article “Learning to Work with Intelligent Machines.”

Ranjay Gulati, professor at Harvard Business School, says the most successful organizations tend to have one thing in common: a soul. Moving beyond culture, the "soul" of a growing start-up -- or a more established company -- is built on clear business intent, a strong connection to customers, and a stellar employee experience. Gulati says that leaders must think hard about preserving all three elements of the soul even as they scale and never lose sight of what makes their company special. He's the author of the HBR article "The Soul of a Start-Up."

Helen Lee Bouygues, founder of the Reboot Foundation, believes that a lack of critical thinking is responsible for many business failures. She says organizational leaders often rely too heavily on expertise and then jump to conclusions. Instead, leaders should deliberately approach each problem and devote time thinking through possible solutions. The good news, she says, is that critical thinking skills can developed and practiced over time. Bouygues is the author of the HBR.org article "3 Simple Habits to Improve Your Critical Thinking."

Spencer Harrison, an associate professor at INSEAD, says that managers in any industry can learn from the success of the Marvel movie franchise. While some sequels lack creativity, Marvel manages to make each of its new releases just different enough, so consumers are not just satisfied but also surprised. Research shows that several strategies drive this success; they include bringing in different types of talent while also maintaining a stable core creative team then working together to challenge the superhero action-film formula. And, Harrison argues, leaders in other industries and functions can easily apply them to their own businesses. He is the co-author of the HBR article "Marvel's Blockbuster Machine."

Deborah Ancona and Kate Isaacs, researchers at MIT Sloan School of Management, say many companies struggle to be nimble with a command-and-control leadership culture. They studied Xerox’s R&D outfit PARC and the materials science company W.L. Gore & Associates and found these highly innovative organizations have three kinds of leaders: entrepreneurial, enabling, and architecting ones. These roles work together to give direction and avoid creative chaos. Ancona and Isaacs are coauthors of the HBR article "Nimble Leadership."

Eugene Soltes, associate professor at Harvard Business School, studies white-collar crime and has even interviewed convicts behind bars. While most people think of high-profile scandals like Enron, he says every sizable organization has lapses in integrity. He shares practical tools for managers to identify pockets of ethical violations to prevent them from ballooning into serious reputational and financial damage. Soltes is the author of the HBR article “Where Is Your Company Most Prone to Lapses in Integrity?”

Peter Cappelli, professor at the University of Pennsylvania's Wharton School of Business and director of its Center for Human Resources, says managers at companies large and small are doing hiring all wrong. A confluence of changes, from the onslaught of online tools to a rise in recruitment outsourcing, have promised more efficiency but actually made us less effective at finding the best candidates. Cappelli says there are better, simpler ways to measure whether someone will be a good employee and advises companies to focus more on internal talent. He's the author of the HBR article "Your Approach to Hiring is All Wrong."

Sylvia Ann Hewlett, an economist and the founder of the Center for Talent Innovation, has studied the difference between mentoring and sponsorship and what leaders have to gain from the latter. She says it's important to seek out protégés who outperform, are exceptionally trustworthy, and, most importantly, offer skills, knowledge, and perspectives that differ from your own, so you can maximize the benefits for both parties. Hewlett brings real-world lessons from several successful pairings and tips on how to effectively launch and manage these long-term relationships. She's the author of the book "The Sponsor Effect: How to Be a Better Leader by Investing in Others."

Nathan Furr, assistant professor of strategy at INSEAD, researches what makes great innovative leaders, and he reveals how they develop and spend “innovation capital.” Like social or political capital, it’s a power to motivate employees, win the buy-in of stakeholders, and sell breakthrough products. Furr argues that innovation capital is something everyone can develop and grow by using something he calls impression amplifiers. Furr is the coauthor of the book “Innovation Capital: How to Compete--and Win--Like the World's Most Innovative Leaders.”

Scott Kupor, managing partner at Andreessen Horowitz, says there's a lot about navigating the venture capital world that entrepreneurs don't understand. Some can't figure out how to get in the door. Others fail to deliver persuasive pitches. Many don't know how the deals and relationships really work. Kupor outlines what he and his partners look for in founding teams and business ideas and explains how start-ups work with VCs to become successful companies. He also discusses how Silicon Valley can do a better job of finding more diverse talent and funding new types of ventures. Kupor is the author of the book "Secrets of Sand Hill Road: Venture Capital and How to Get It."

Sinéad O'Sullivan, entrepreneurship fellow at Harvard Business School, discusses how space is much more important to modern business than most people realize. It plays a role in making food, pricing insurance, and steering self-driving cars. While moonshot projects from SpaceX to Blue Origin drive headlines, the Earth-facing space economy is booming thanks to plummeting costs of entry. As tech companies large and small compete to launch thousands of satellites, O'Sullivan says we are actually running out of space in space.