Steve Jobs's legacy
by Nancy Koehn
November 5, 2009

First and foremost, Steve Jobs is an entrepreneur. And that is how history will long remember him. Not primarily as a fiduciary or an institution builder or an administrator (though he has worn all those hats), but rather as an individual who relentlessly pursued new opportunities.

Give credit to create jobs - but only where it's due
by Robert Pozen
November 3, 2009

The US unemployment rate is now close to 10 per cent and likely to stay that high all through 2010. Even if the economy begins to recover, job growth tends to be a lagging indicator. This is why the Obama administration is considering a tax credit for employers adding new jobs next year.

Everybody in the Pool of Green Innovation
by Mary Tripsas
October 31, 2009

A popular children's song has a refrain - "the more we get together the happier we'll be" - that may sound like a simplistic formula for solving the complex challenges of climate change and sustainability. But if any area is ripe for sharing and collaboration among organizations, it's green innovation.

There is enough room for optimism
by Tarun Khanna
October 26, 2009

One of the tasks of leadership is to defy the status quo and spell out why the defiance is productive and in society's best interests. Let me consider three spheres where leadership has a role - economic, civil society, and politics. The first is by far the most heartening in India's case. There has been a flowering of productive entrepreneurship over the past couple of decades.

On healthcare reform, carrots work better than sticks
by Regina Herzlinger
October 20, 2009

The U.S. Congress is an assembly of scolds when it comes to raising money for healthcare reform, wanting, for example, to hike the health insurance premiums of people behaving badly - such those who smoke, don't exercise regularly, or eat too much - and tax those who spend what the Congress considers to be "too much" for health insurance or who consume bad foods like sugary drinks.

Making the 'public option' a simple one
by Robert Pozen
October 10, 2009

When the Senate Finance Committee voted down the "public option'' for health care reform last week, the ideological and economic strands of this debate were fused. For certain politicians, the main objective behind the public option is to move toward nationalized health care. For others, it is to move toward a one-payer system in which the federal government disburses payments to private doctors and hospitals. However, neither of those concepts will probably garner enough votes to pass the Senate, and the ideological debate is not likely to be resolved.

A Better Health Care Alternative
by Regina Herzlinger
October 9, 2009

Health care reform is stuck on the public health insurance plan. But a better, less controversial alternative exists in the consumer-driven health insurance system of Switzerland. The many Americans who do not trust private health insurance companies grouse that if they were forced to buy health insurance, they would not want to choose solely from these companies. They want a public insurance option instead. But turning to a health insurance plan run by the U.S .government as an alternative can ruin the economic future of this country--and, likely, the medical care of the sick.

Where were the doctors?
by Sachin Jain and Michael E. Wechsler
October 8, 2009

As the 2009 baseball playoffs begin, the game continues to recover from disclosures earlier this year that some of its biggest stars were among 104 players who tested positive in 2003 for anabolic steroid use. Major League Baseball formally banned steroids in 1991. At the heart of the steroid controversy is how an epidemic of such scale went without notice or response for so long. The players' union, the commissioner's office, owners and management, and the media have all shared blame for their silence and inaction. But that shouldn't be the end of it.

Microfinancing China
by Tarun Khanna
October 7, 2009

China's economy may lead the region in many ways, but in one surprising area it is lagging behind: microfinance. The concept of distributing small loans to the poor has flourished across Asia since its introduction in Bangladesh three decades ago. Yet it has a notably minimal footprint in China.

The World Bank must fix its business model
by Alnoor Ebrahim
October 5, 2009

In the wake of the global financial crisis, the need to deliver aid effectively is more urgent than ever. A new United Nations report finds that the working poor in developing countries have been hardest hit. Yet the World Bank is falling short of its potential. At the heart of the matter is a tension between its mission and its business model. Reconciling this tension, one of the most challenging in its 65-year history, is the critical task for its leaders who will gather in Istanbul on Tuesday.

It's Brand New, but Make It Sound Familiar
by Mary Tripsas
October 4, 2009

Glance through a photo album of early automobiles and you'll find an eclectic assortment of vehicles, including three-wheeled machines and bicycle-like contraptions. You'd be hard-pressed to identify many as cars.

Why We Need Universal, Consumer-Driven Health Care
by Regina Herzlinger
September 20, 2009

Health care reform has two goals: to control our gargantuan health care costs and to enable people, especially sick ones, to buy health insurance at an affordable price. The two goals are related -- the better we control health care costs, the more people can afford to buy health insurance.

Putting America Back to Work
by Bill George
September 17, 2009

Fifty years ago the Soviet launch of Sputnik led to a national commitment to strengthen U.S. science and technology and put a man on the moon. That shift in priorities and the impressive results inspired a new generation of innovators-people such as Bill Gates, Steve Jobs, and Arthur Levinson-to create Microsoft (MSFT), Apple (AAPL), and Genentech. The companies they built created tens of thousands of jobs and revolutionized American industry.

Stop Pining for Glass-Steagall
by Robert Pozen
September 16, 2009

At the depth of the Depression in 1933, Congress passed the Glass-Steagall Act to separate commercial banking from the securities business: JPMorgan here, Morgan Stanley ( MS - news - people ) there. In 1999 the banks persuaded Congress to tear down the wall. Glass-Steagall was repealed. Banks could merge with brokers.

Wall Street's New Gilded Age
by Niall Ferguson
September 16, 2009

Since its birth, the United States has grappled with the problem of an over-mighty financial sector. With the exception of Alexander Hamilton, the Founders' vision was of a republic of self-reliant farmers and small-town tradesmen. The last thing they wanted was for New York to become the London of the New World-a mammon-worshiping metropolis in which financial capital and political capital were rolled into one.

Why a Lehman deal would not have saved us
by Niall Ferguson
September 15, 2009

If only. Lawrence McDonald begins his insider's account of the fall of Lehman Brothers with seven "what if" scenarios, speculating on how different decisions might have saved his former employer. If only Dick Fuld, Lehman's chief executive, had listened to those who warned of impending losses on the bank's property portfolio. If only Mr Fuld had not antagonised Hank Paulson, the then Treasury secretary. And so on.*

Insurance supermarket risks
by Regina Herzlinger
September 15, 2009

Breathing a sigh of relief after President Obama seemed to waffle about the public plan? Not so fast. In the shadows lurks another potential doorway for federal takeover of your health care. Disingenuously labeled as an "exchange" -- countless people wonder what the heck it represents -- it is Uncle Sam's Monopoly Health Insurance Supermarket: the only market open for those who want federal subsidies for health insurance.

Moving Beyond the Conventional Wisdom of Whole-District Reform
by Stacey Childress
September 14, 2009

Faced with dismal international comparisons and federal 'Race to the Top' Fund pressures, school districts must take on two difficult tasks at once: raising the outcomes of top-performing students, while accelerating the learning of students who are behind. And they must find ways to do this in every school, not just in a few exemplars.

We Don't Need a Public Option
by Regina Herzlinger
September 10, 2009

Health-care reformers who want a public health-insurance option to keep private health insurers competitive have a point: If there were ferocious competition in the private health-insurance markets, prices would be better controlled. In Switzerland, for example, competition among that country's 85 private health insurers resulted in negative price increases since 2005 and considerable public support. In the U.S., by contrast, health-insurance prices rose by 16.5 percent and Americans hold insurers in low regard.

An Ounce of Prevention
by David Moss
August 25, 2009

The magnitude of the current financial crisis reflects the failure of an economic and regulatory philosophy that proved increasingly influential in policy circles during the past three decades. This philosophy, guided more by theory than historical experience, held that private financial institutions not insured by the government could be largely trusted to manage their own risks-to regulate themselves. The crisis has suggested otherwise, particularly since several of the least regulated parts of the system (including non-bank mortgage originators and the major broker-dealer Bear Stearns) were among the first to run into trouble. Former Federal Reserve Chairman Alan Greenspan acknowledged in October 2008, "Those of us who have looked to the self-interest of lending institutions to protect shareholders' equity, myself included, are in a state of shocked disbelief."

Government should get back to the basics on health care
by Regina Herzlinger
August 19, 2009

Those who worry about a growing role for government in health care reform have reason for concern: the government already plays a surprisingly large role in our health care system. Like Thomas Jefferson, the father of the Democratic Party, they may feel that: 'Were we directed from Washington when to sow and when to reap, we shall soon want bread.'

The 2009 Health-Care Reform Debacle
by Bill George
August 18, 2009

Health-care reform-version 2009-is heading for a train wreck. The debate in Congress is generating more heat than light. While senators and congressmen are on August recess, they are getting an earful from worried constituents, who sense the flaws in proposed plans. The Obama Administration would be well advised to take its own recess to develop a sound, workable policy proposal that can be reintroduced in the fall.

Disclose the fair value of complex securities
by Robert Kaplan, Robert Merton and Scott Richard
August 18, 2009

Banks and other financial institutions are lobbying against fair-value accounting for their asset holdings. They claim many of their assets are not impaired, that they intend to hold them to maturity anyway and that recent transaction prices reflect distressed sales into an illiquid market, not what the assets are actually worth. Legislatures and regulators support these arguments, preferring to conceal depressed asset prices rather than deal with the consequences of insolvent banks.

Practicing Medicine in the Age of Facebook
by Sachin Jain
August 13, 2009

In my second week of medical internship, I received a "friend request" on Facebook, the popular social-networking Web site. The name of the requester was familiar: Erica Baxter. Three years earlier, as a medical student, I had participated in the delivery of Ms. Baxter's baby. Now, apparently, she wanted to be back in touch.

Health Care's Taxing Problem
by Regina Herzlinger
August 12, 2009

Mainstream economists generally agree that current U.S. tax policy for health insurance is fundamentally irrational, regressive, and ultimately destructive. Fixing this system should be one of Congress's top priorities when it comes to health reform. Sadly, the current Congressional health-reform proposals would leave the worst feature of the current system in place and make a bad situation worse.

A runaway deficit may soon test Obama's luck
by Niall Ferguson
August 11, 2009

President Barack Obama reminds me of Felix the Cat. One of the best-loved cartoon characters of the 1920s, Felix was not only black. He was also very, very lucky. And that pretty much sums up the 44th president of the US as he takes a well-earned summer break after just over six months in the world's biggest and toughest job.

Staving Off a Spiral Toward Oblivion
by Mary Tripsas
August 9, 2009

Driven by the pressure to innovate, companies facing major technological change have wholeheartedly embraced management gurus' advice on how to develop creative, breakthrough products. As a result, corporate America is flush with incubators, skunk works and innovation silos.

The Shifting Mission of Health Care Delivery Organizations
by Richard M.J. Bohmer and Thomas H. Lee
August 5, 2009

An important transition has begun in payment for health care delivery in the United States: organizations that have long been paid for transactions, such as visits or procedures, are beginning - at least in some markets - to be paid instead for producing outcomes. As physicians and hospital leaders contemplate the implications of new payment models, they realize that the transition will be long, difficult, and messy, with major ramifications for providers.

India's pockets of prosperity?
by Laura Alfaro, Lakshmi Iyer and Semil Shah
July 31, 2009

Imagine that the US government designated Long Island a Special Economic Zone (SEZ). Firms could operate there with tax exemptions, minimal red tape, no tariffs on imported inputs, and superior infrastructure. Many firms would want to locate there, boosting industrial activity, exports, and jobs. But would Long Islanders benefit? Would they be willing to sell their land to firms? What if the government acquired the land on behalf of the firms?

Chatter about a new global currency is overblown
by Robert Pozen
July 30, 2009

At the US-China summit this week, Chinese officials raised concerns that the surging US budget deficit could undermine the value of China's huge dollar holdings. These same concerns motivated the governor of the People's Bank of China to suggest replacing the US dollar as the world's reserve currency with special drawing rights issued by the International Monetary Fund. To be specific, he proposed that central banks be allowed to swap their dollar reserves for SDRs held in a substitution account by the IMF. SDRs represent a basket of four currencies - comprising 44 per cent US dollars, 34 per cent euros, 11 per cent yen and 11 per cent pound sterling.

Some Inconvenient Truths About Medicare and the New 'Public Plan'
by Regina Herzlinger and Robert Book
July 25, 2009

The fundamental problem with health care reform is the absence of realistic plans to reduce unit costs. Without cost controls , tens of millions of newly-insured people will further cripple U.S. global competitiveness, which is already grievously injured because the U.S. spends roughly 70 percent more on health care, as a percentage of GDP, than other developed nations, yet cannot point to commensurate 70 percent increases in value.

Sears' Edifice Complex
by Richard S. Tedlow and David Ruben
July 10, 2009

The Sears Tower is disappearing. Not the building, but the name. This month, the 110-story Chicago landmark, the tallest building in the country, will be renamed the Willis Tower, after the London-based insurance broker that is a major new tenant.

Systemic Risk and the Fed
by Robert C. Pozen
July 9, 2009

Congress is currently debating how to cope with the widespread ripple effects when a large financial institution fails or a risky financial product blows up. The U.S. Treasury has proposed that a council of eight regulatory agencies be appointed to monitor the so-called problem of systemic risk. Treasury also wants the Federal Reserve to become the exclusive regulator of all financial institutions deemed systemically risky.

Limited Choices
by Regina Herzlinger
July 9, 2009

Virtually all current health-care-reform plans feature a monopoly health-insurance store, operated by federal or state governments, for those who lack employer- or government-sponsored insurance and want to qualify for government subsidies. Advocates claim these monopoly markets will control costs through their purchasing power and enhance price competition by simplifying comparison shopping. When insurers are forced to compete on price, they will prod health-service providers for increased efficiency.

HBS Faculty Comment on the Health Care Reform Bill
by HBS Faculty
July 6, 2009

A collection of opinions by Harvard Business School faculty on the Health Care Reform Bill

Anatomy Of A Coup
by Stephen Haber and Noel Maurer
July 3, 2009

Tiny Honduras has managed to grab the world's attention for the past five days. An internal squabble over a non-binding referendum has quickly escalated into an international dispute that has drawn in all of the governments of the Western Hemisphere, as well as the European Union. What is going on in Honduras?

How Boomers Can Change the World (Again)
by Rosabeth Moss Kanter
June 23, 2009

World, get ready! The Baby Boomers are becoming the Senior Boomers, and they want to change you again. The generation that marched in Washington in the 1960s is marching into elementary schools, high schools, hospitals, and homeless shelters seeking opportunities to serve. Activists in civil rights and women's movements four decades ago now want to eradicate diseases, transform education, reform health care, or alleviate global poverty.

Do you really want to tax ability?
by Matthew Weinzierl and N.Gregory Mankiw
June 12, 2009

In a famous interchange between candidate Barack Obama and voter "Joe the Plumber," the soon-to-be President said he wanted to raise taxes on the wealthy to "spread the wealth around." Obama's position may not have persuaded Joe, but it did hearken back to a long tradition in political philosophy and economics.

GM and the world we have lost
by Richard Tedlow and David Ruben
June 3, 2009

The bankruptcy of General Motors Corp. is one tree falling in the forest that every American ought to hear. With GM's collapse, we are losing a lot. The impact that GM's failure may have on the economy has been much discussed. But to understand the full significance and magnitude of GM's decline, one must appreciate the extent to which this now-crippled company once dominated the nation's economic landscape. GM occupies a unique place in modern American history. For that reason, its downfall is genuinely historic.

Don't prop up failing schools
by Clayton Christensen and Michael Horn
June 2, 2009

Historically the federal government has been a small investor in the nation's education system. With the recent economic stimulus bill, however, this changed virtually overnight. There is great danger in the sudden and massive amount of funding -- nearly $100 billion -- that the federal government is throwing at the nation's schools. District by district, the budgetary crises into which all schools were plunging created the impetus for long-needed changes.

HBS Faculty Comment on the General Motors Bankruptcy
by HBS Faculty
June 1, 2009

A collection of opinions by Harvard Business School faculty on the General Motors situation.

How economists can misunderstand the crisis
by Niall Ferguson
May 29, 2009

On Wednesday last week, yields on 10-year US Treasuries - generally seen as the benchmark for long-term interest rates - rose above 3.73 per cent. Once upon a time that would have been considered rather low. But the financial crisis has changed all that: at the end of last year, the yield on the 10-year fell to 2.06 per cent. In other words, long-term rates have risen by 167 basis points in the space of five months. In relative terms, that represents an 81 per cent jump.

Charlie Bolden and the Boomers, Still Flying High
by Rosabeth Moss Kanter
May 26, 2009

President Obama's choice of General Charles F. Bolden, Jr. as the next head of NASA is a big win not just for astronauts (he'd be the second to head NASA) and African-Americans (he'd be the first) but also for all members of the Baby Boomer generation.

Mid-level jobs key to recovery
by Michael Porter
May 19, 2009

The challenge for Massachusetts is that some of our areas of strength are being hit hard by the economic crisis. Firms that manage money have seen their assets under management go down by 20 or 30 percent; that reduces their fees. Universities have been strongly affected by their endowments being down. So some of the areas that have supported and sustained us are feeling the impact.

Diminished Returns
by Niall Ferguson
May 15, 2009

If financial crises were distributed along a bell curve - like traffic accidents or people's heights - really big ones wouldn't happen very often. When the hedge fund Long-Term Capital Management lost 44 percent of its value in August 1998, its managers were flabbergasted. According to their value-at-risk models, a loss of this magnitude in a single month was so unlikely that it ought never to have happened in the entire life of the universe. Just over a decade later, many more of us now know what it's like to lose 44 percent of our money. Even after the recent stock-market rally, that's about how much the Standard & Poor's 500 index is down compared with October 2007.

Schumer's Shareholder Bill Misses the Mark
by Martin Lipton, Jay W. Lorsch and Theodore N. Mirvis
May 12, 2009

This week New York Sen. Chuck Schumer is expected to introduce the Shareholder Bill of Rights Act of 2009. The stated goal of the legislation -- "to prioritize the long-term health of firms and their shareholders" -- is commendable. The trouble is that its provisions actually encourage the opposite. In its current form, the bill would require annual votes by stockholders on executive compensation. It would grant stockholders a new right to include their own director nominees in the corporation's proxy statement. The bill would put an end to staggered boards at all companies (the traditional option of electing one-third of the board each year). And it would require that all directors receive a majority of votes cast to be elected. Public companies would be forced to split the CEO and board chair positions.

Electoral ATMs
by Shawn Cole
May 2, 2009

Yet, India has been among the slowest of emerging markets to privatise banks. This research and recent events suggest several reasons politicians may be reluctant to give up control of public sector banks. Increasing public sector bank lending prior to elections does not require the passage of any law, and can be targeted relatively precisely, in contrast to state or national initiatives.

Economic Recovery
by David Scharfstein
April 29, 2009

The ongoing financial crisis has made it obvious that we need to overhaul financial regulation. The fundamental problem is by now well known. Financial institutions - banks, insurance companies, hedge funds, and others - have incentives to take excessive risk. Devising effective regulation to control such behavior will not be easy because the incentives to take excessive risk derive from many sources, the measurement of risk is difficult, and regulations intended to control risk can hamper useful financial innovation.

The Economic Crisis Will Shape New Leaders
by Bill George
April 28, 2009

Maybe there's a silver lining in the global economic meltdown after all. I believe all the economic misery, financial disasters, and millions of lost jobs will produce a new generation of leaders who are battle-tested in crisis and ready to get the global economy pointed in a healthier long-term direction.

Health Care Reform that Will Kill the U.S. Economy
by Regina Herzlinger
April 27, 2009

With little fanfare, Congressional leaders may be near to agreeing on the most sweeping expansion of government in a generation - the de-facto takeover of the health insurance market by the government. Congressional Democrats are already icing the champagne. When the President's "Medicare for all" plan is coupled with the budget, which contains a "down payment" of $634 billion over the next decade for health care, government-run health care may be inevitable.

Raise the educational bar
by Stacey Childress and David Thomas
April 26, 2009

Unlike most other developed countries, the US does not have national academic standards outlining what each student must learn to graduate from high school. In fact, it is the opposite, with each of the 50 states setting the bar wherever it wants - and, in many states, that is too low. When standards in one state are lower than those in another, longstanding inequities are perpetuated every September as new groups of kindergarteners take their first steps into school. With US 15-year-olds ranked 25th among 30 industrialised nations on the Organisation for Economic Co-operation and Development's international mathematics exam and 24th in science, the time has come to put aside ideology in favour of the next generation's ability to compete globally.

Give the Big Three another chance
by Daniel Heller
April 23, 2009

Many in America consider saving the Big Three a lost cause. Are the Detroit automakers really as bad as people say? In retrospect, management at General Motors, Ford, and Chrysler certainly should have been quicker to bolster their smaller-car and hybrid-vehicle lineups. But the Big Three were not the only ones fixated on large SUVs and full-size pickups. Throughout the 1990s and early 2000s, American consumers were buying up these vehicles at a torrid pace, while Detroit's Asian and European counterparts scrambled to get into these higher-profit segments. Shortsightedness was a problem all around.

Getting Microfinance Right
by Michael Chu
April 22, 2009

Forty percent of the world's population lives on less than $2 per day, according to the World Bank. Yet even in the midst of the current economic meltdown, there is reason for new optimism in the fight to reduce global poverty. The optimism starts with the evolution of microfinance, which has proved not only that the poor are credit-worthy, but that banking institutions serving the poor are investment-worthy. In addition, microfinance is tapping into a technological revolution that enables areas with deficient land phone service to leapfrog ahead to cellphones and broadband. And, as this takes place, both philanthropy and capital markets are paying careful attention.

The Past and Future of General Motors
by Clayton Christensen
April 8, 2009

Washington has forced General Motors Chairman Rick Wagoner to resign as a condition of providing the next injection of capital that GM needs to get back on its feet. Finding a "sacrificial lamb" on whom to tag blame for complicated problems is an important instrument in the toolkit of politicians, because it deflects blame for the nation's economic woes away from their own regulatory lapses, economic mismanagement and coddling to labor unions. We've seen it before and we'll see it again. In this case, however, they have cast aside a remarkable executive who already has presided successfully over many of the most difficult elements of the rescue of General Motors in a way that is rare in the history of business.

Why Obama and Geithner Should Find a Bank Czar
by Bill George
April 7, 2009

The U.S. government is investing more than $1 trillion in bailing out financial institutions while doing its best to avoid taking them over. Yet no one in the government is in charge of managing this massive investment of taxpayer money. Meanwhile the public is revolting over its suspicion that bankers are using taxpayer dollars for their own purposes, rather than unlocking the credit markets and restoring our financial system.

Letting Ed Liddy Twist in the Wind
by Bill George
March 23, 2009

Populist outrage over $165 million in bonuses paid out by insurance giant AIG (AIG) has set off a feeding frenzy in Washington reminiscent of the 1789 storming of the Bastille. Everyone from the President to the House of Representatives has suddenly become "outraged"- the politician's favorite new word. With lightning speed the House passed a bill to tax bonuses retroactively at 90% for financial institutions that have received $5 billion or more in government funds.

Political Courage Required
by Bill George
March 22, 2009

If Congress passes a retroactive, confiscatory tax on Wall Street bonuses, President Obama should veto it. Congress is in a feeding frenzy over the AIG bonuses, which were officially disclosed in a September, 2008, filing to the U.S. government. But Congress is shedding more heat than light on this situation. Wall Street cash bonuses for bankrupt companies like AIG that have lost billions are not appropriate in this environment.

The Myth of the Lone Star: Why One Top Performer May Not Shine as Brightly as You Hope
by Boris Groysberg , Linda-Eling Lee and Robin Abrahams
March 23, 2009

Amid mass layoffs and a deteriorating economy, snapping up star talent is getting easier. But before investing in a marquee player at the expense of the rest of your team, consider this: Stars shine brighter when surrounded by other stars. The idea that you can catapult your firm into the big leagues with one or two top performers is a myth -- one we call the "lone-star myth." The truth is, in the absence of equally talented colleagues, stars probably won't excel at their jobs or stick around for very long. High-quality colleagues bring four important things to the table: They are sources of information, offer insightful feedback, provide a critical link to clients and help burnish a star's reputation. Here is a closer look at why surrounding a star with other stars is a win-win:

How to Innovate in a Downturn
by Bhaskar Chakravorti
March 18, 2009

As the financial crisis continues to take its toll, a manager's natural tendency will be to hunker down, follow the status quo, and just try to survive in hopes that some day, this, too, shall pass. But that's exactly the wrong prescription. Rahm Emanuel, President Obama's chief of staff, recently echoed Machiavelli when he said, "You never want a serious crisis to go to waste." He's correct. Now more than ever is the time for innovative managers and entrepreneurs to come up with ideas that lead to opportunities to launch new ventures.

Regulate, Baby, Regulate
by Thomas K. McCraw
March 18, 2009

As the United States faces its biggest economic crisis since the Great Depression, Barack Obama and his team have been looking to Franklin Delano Roosevelt for help. The influence so far is obvious: The stimulus measure passed by Congress in February includes money for building infrastructure, strengthening unemployment insurance, and helping state governments--all reminiscent of FDR's New Deal.

Asian footsteps in Africa
by Tarun Khanna
March 11, 2009

Don't look now, but capitalism - maligned in these bailout-ridden recessionary days - is reshaping Africa inexorably. What is different today is that it is emanating from China and India, rather than from the conventional bastions of capitalist prowess. Devi Shetty, a celebrated cardiac surgeon in Bangalore, brings health relief to India's masses through his Narayana Group of hospitals. Some years ago, I witnessed his early experiments with rural telemedicine, especially in the Indian states of Karnataka and West Bengal. In my visit last month, the wall was adorned by a large map of Karnataka festooned with coloured pins, to indicate that he now served most district capitals in the remotest parts of the state. Moreover, a world map showed outreach to rural areas of east Africa and Southeast Asia, and the room has been upgraded to reflect a still-expanding global reach.

Why CMOs Are Gaining Ground in the Recession
by John Quelch
March 10, 2009

Some good news for marketing heads: Chief marketing officers are holding on to their jobs longer. Spencer Stuart's annual survey of CMO tenure at the 100 most advertised brands in the U.S. reveals average time on the job has risen to 28.4 months from 26.8 months in 2007 and 23.2 months in 2006. The popular interpretation of those data is that CMOs are aligning better with CEOs. The latter are no longer expecting instant rainmaking, and the former have learned to be humble. CMOs have learned not to pontificate about brand values before researching the issue, and they no longer fire the incumbent advertising agency the day after being appointed. The best CMOs stay low-key and aim to make the CEO, whose background often is not in marketing, comfortable becoming the chief cheerleader for the brand.

2009, Not 1992
by Rosabeth Moss Kanter
March 9, 2009

Last week's health-care summit made clear that, as far as the president is concerned, the question is not whether the U.S. will enact universal coverage but how. When Obama gets it enacted, most historians will revere him as the president who finally dragged barbaric Americans into the modern world. But some may note that the Obama system worsened results for the sick and killed the promising genomic industry, in which the U.S. currently enjoys a world-wide lead. These are the inevitable results of the Obama administration's push for a statist health-insurance market that contains an underpriced Medicare as an option. The phony pricing for Medicare will draw vast numbers of enrollees, over 100 million in one estimate, and create a virtual single-payer health-insurance system.

Our Great Recession
by Niall Ferguson
March 1, 2009

THIS recession, which began in December 2007, has already lasted longer than the average postwar recession. If it turns out to be as bad as the most protracted of the postwar downturns, we will touch bottom next month. But my strong suspicion is that we are now in something more like a Great Recession. It won't produce as steep a fall in American output as the Depression did, but it may prove to be as prolonged. The depression that began in August 1929 did not hit its nadir until 43 months later. The one that started in October 1873 was shallower but lasted 65 months. If the economy were to keep shrinking for that long, we wouldn't start coming out of this until after May 2013.

Switzerland has the medical bills covered
by Regina Herzlinger
February 27, 2009

Can we all be assured of receiving the healthcare services we need at a price the economy can afford? In the UK the answer is a resounding No. A recent report showed that Britain ranks last among the five largest European countries in its uptake of cancer drugs, which may account for its low five-year survival rates for diseases such as breast cancer - 78.4 per cent in the UK compared with 90.1 per cent in the US. But if the country were to restructure its system from one that subsidises institutions to one that subsidises patients, it may improve the care offered and save taxpayers' money.

Seven Lessons for Leading in Crisis
by Bill George
February 24, 2009

Virtually every American institution is facing major crises these days, from declining businesses to evaporating financial portfolios. To get out of these crises, authentic leaders must step forward and lead their organizations through them. The current crisis was not caused by subprime mortgages, credit default swaps, or failed economic policies. The root cause is failed leadership. New laws, regulations, and economic bailouts won't heal wounds created by leadership failures. They can only be solved by new leaders with the wisdom and skill to put their organizations on the right long-term course.

A Disruptive Solution for Health Care
by Clayton M. Christensen and Jason Hwang
February 23, 2009

President Obama has advocated spending $20 billion to modernize the medical records and information systems of health-care providers, the vast majority of whom remain tied to their error-prone and inefficient pen-and-paper systems of yesteryear. The benefits of updating our health information infrastructure seem clear: It will reduce preventable medical errors, avoid the costs of unnecessary or duplicate testing, and cut into some of the paperwork and red tape that continues to drive frustrated clinicians out of practice.

The Bailout Is Robbing the Banks
by John C. Coates and David S. Scharfstein
February 18, 2009

Many Americans are angry at banks for taking bailout money while still cutting back on lending. But the government is also to blame. For reasons that remain unclear, the Troubled Asset Relief Program has channeled aid to bank holding companies rather than banks. The Obama administration's new Financial Stability Plan will have more influence on bank lending if it actually directs its support to banks. To see why, it's important to understand the distinction between banks and bank holding companies. Banks take deposits and make loans to consumers and corporations. Bank holding companies own or control these banks. The big holding companies also own other businesses, including ones that execute trades both on their clients' behalf and for themselves.

Creating a real healthcare market
by Regina Herzlinger
February 18, 2009

Massachusetts healthcare costs are a problem. The state has virtually the highest costs in the country and insurance premiums that rise more rapidly than national rates. The state's near-universal health coverage shows that no good deed goes unpunished: As the state lowered the number of uninsured, costs increased. After the Globe reported that Partners hospital system attained higher prices based primarily on its clout with insurers, Attorney General Martha Coakley began an anti-trust investigation. But the remedies will be a long time coming should she decide to prosecute and then win her case.

Tasting the fruits of effective innovation
by Ranjay Gulati and Nitin Nohria
February 6, 2009

Recessions bring cuts in the size of the labour force, in capital expenditures, in advertising budgets, in travel, even in the loss of coffee and donuts from our meetings. Sadly, investments in research and development and innovation, the seed-corns of our future, are not insulated from these realities either. Over the past four quarters, the total R&D expenditures of S&P 500 companies (based on the approximately 200 companies that report them quarterly) declined 13 per cent - from a total of $43.1bn in the fourth quarter of 2007 to $37.4bn in the third quarter of 2008 - with more cuts almost certain in the near future.

Keeping a keen eye on consumer behaviour
by Katherine E. Jocz and John A. Quelch
February 6, 2009

What promises to be the longest and deepest global recession since the 1930s took many marketers by surprise. What appeared first as a crisis affecting the US home mortgage market soon morphed into a global financial meltdown and the evaporation of consumer credit. Given an average household debt in the US of 130 per cent of annual household income, it was inevitable that a downturn in consumer confidence would follow, along with a substantial reduction in consumer spending, which accounts for 72 per cent of US gross domestic product. How should marketers, few of whom are experts in macroeconomics, respond to these conditions?

Keynes can't help us now
by Niall Ferguson
February 6, 2009

It began as a subprime surprise, became a credit crunch and then a global financial crisis. At last week's World Economic Forum in Davos, Switzerland, Russia and China blamed America, everyone blamed the bankers, and the bankers blamed you and me. From where I sat, the majority of the attendees were stuck in the Great Repression: deeply anxious but fundamentally in denial about the nature and magnitude of the problem.

How Corporate America Can Help Obama
by Bill George
February 3, 2009

In spite of the gloom about the economy I witnessed at this week's World Economic Forum in Davos, hope was in the air about a new era of global collaboration resulting from President Barack Obama's inauguration. After a decade of declining respect for American leadership, the time is ripe to get the U.S. back on the track of economic growth, well-run government, and world respect.

Czar Power
by Ranjay Gulati
January 7, 2009

Czarist solutions to our daunting array of national crises are suddenly everywhere. At current growth rates, we are likely to have a car czar, an energy czar, a financial sector czar and a health sector czar. Who knows how many more will be either named or in place by the time Barack Obama actually takes office?

A Long Winter
by Peter Olson
January 5, 2009

While 2008 ended on a disappointing and even discouraging note for many in the book industry, the outlook for the new year is even bleaker. One-time adjustments by retailers and underlying shifts in the structure of the book industry will make 2009 the worst year for publishing in decades, and could lead to long-term fundamental changes in the business.

Blockbuster or Bust
by Anita Elberse
January 3, 2009

Dark days are upon the book industry. Last month alone, Random House announced a massive restructuring; Simon & Schuster laid off 35 staffers; the adult division of Houghton Mifflin Harcourt stopped acquiring manuscripts for the rest of the year; and HarperCollins sent comedian Sarah Silverman a contract worth $2.5 million to write her first book.

The Innovation Economy
by Bill George
December 16, 2008

As commencement speaker at my alma mater, Georgia Tech, this past weekend, I proposed "the innovation economy" as the best vehicle for restoring long-term growth in the U.S. Watching 565 PhD and master's degree students accept their degrees, I was struck by the remarkable diversity of these students, compared to the school I attended in the 1960s. The majority of the class of 2008 were international students or newly immigrated Americans from China, India, and Eastern European countries.

Rebuilding America - now
by John Quelch
December 5, 2008

The Obama victory promises congressional approval of a major investment in infrastructure. This is long overdue. The evidence of poorly maintained infrastructure is everywhere. Public safety is at risk. Moreover, congested highways, airport hubs and rail terminals are drags on productivity and national competitiveness.

Since Enron, Little Has Changed
by Bill George and Malcolm Salter
December 4, 2008

Enron's demise in 2001 and the collapse of some of our most prominent financial institutions this fall share a common root cause: a shocking breakdown in corporate governance resulting from the endorsement of perverse financial incentives by directors, coupled with ineffective monitoring of firm-wide risk. As Warren Buffett has said, "Executive compensation is the acid test of corporate governance." Financial incentives determine what objectives an organization pursues, and they drive the way managers conduct a business.

Auto CEOs Aren't Making Their Case
by Deepak Malhotra
December 4, 2008

I was born in Detroit. My father has, over the last three decades, worked for each of the Big Three as an IT specialist. My brother was a student at what was once the General Motors Institute, an engineering college started by GM. I worked summers as an intern at a subsidiary of GM, and after college, at a consulting firm with Ford as my client. I have deep roots in Michigan and know hundreds of people who are going to be affected by what happens to the U.S. auto industry.

In Defense Of American Cars
by Daniel Snow
December 2, 2008

As they search for the reasons why their country's iconic auto industry fell from grace and profitability, Americans are pointing fingers at CEOs, the auto union and the cars themselves. But in the marketplace, reputation lags behind reality; and in the automobile marketplace, that lag is considerable. I have spent the past decade studying technological innovation and manufacturing at automakers in North America, Europe and Asia. As a result, I am convinced that five years ago the Big Three started producing vehicles that are among the best in the world.

Use bailout money for new ventures, not old ones
by Richard Nolan and Suresh Kotha
December 1, 2008

Failing companies are evidence of failed leadership. The solution lies not in investing more in old, failed ventures, but in using our American system of entrepreneurs, venture capitalists and angel investors to create new companies, and for old companies to show some resilience and pursue new things.

The Leadership Imperative
by Jay O. Light
November 19, 2008

Much has been said about the causes of the collapse of a financial system that has proven to be unexpectedly fragile. Should we have seen it coming? If history is any guide, then probably so. As my friend Bob Bruner from the Darden School has noted, the parallels of the current crisis to the Panic of 1907 are striking.

Team 'Chimerica'
by Niall Ferguson
November 17, 2008

Future historians, I suspect, will look back on Saturday's anticlimactic G-20 gathering in Washington less as Bretton Woods 2.0 and more as a rerun of the London Economic Conference of 1933. Back then, representatives of 66 nations completely failed to agree on a concerted international response to the Great Depression. The fault lay mainly with the newly elected U.S. president, Franklin D. Roosevelt, who vetoed European proposals for currency stabilization.

The Flawed Architecture of the Financial System(PDF)
by Carliss Y. Baldwin
October 2008

The architecture of the financial system is fatally flawed. Without anyone's being aware of it, the core of the system has become what is known as a "hairball." It is a clump of disastrously entangled claims, in which everything is linked to everything else. Given this architecture, it is inevitable that all investors must all pay for the poor judgment of a few.

Why America Needs an Economic Strategy
by Michael Porter
October 30, 2008

With the U.S. election just days away, it has never been more important to consider what the next President must do to keep America competitive. In this time of crisis, Washington has focused on the immediate and the short term. Lost are the more basic questions we really need to worry about: What is the fundamental competitive position of the U.S. in the global economy? And what must we do to remain strong when other nations are making rapid progress?

Disruption, One Step at a Time
by Clayton Christensen
October 27, 2008

Every innovator has it: that moment when you allow yourself to think, even if for a second, "This isn't going to work, is it?" Nancy McCarthy's moment came in 2004. McCarthy, a chemical engineer at Procter & Gamble, was the technical project leader of a group creating a digestive aid. Promising clinical trials and glowing testimonials from consumers convinced her that the product would be a hit.

Just Keep Our Money
by Peter Tufano
October 21, 2008

The government's ever-evolving rescue of the financial sector has already demanded enormous sums. It will cost even more if Congress acts on the second economic stimulus package that Fed Chairman Ben Bernanke proposed yesterday. While a stimulus would lead to spending that boosts the economy, we also need to help families save to withstand economic shocks. Lawmakers should consider an option by which they could help quell the recent chaos, raise as much as $250 billion a year, strengthen families and enhance civic engagement.

This Bailout Doesn't Pay Dividends
by David Scharfstein
October 20, 2008

ON Oct. 13, the chief executives of nine large American banks were called to a meeting at the Treasury Department. At the meeting, Secretary Henry Paulson offered them $125 billion from the federal government in exchange for shares of preferred stock. The chief executives accepted his terms. In some accounts of the meeting, Secretary Paulson is described as playing the role of the Godfather, making the banks an offer they could not refuse. But in one important respect, he was more Santa Claus than Vito Corleone: the agreement allowed the banks to continue paying dividends to common shareholders.

Management must become a profession
by Rakesh Khurana and Nitin Nohria
October 20, 2008

The financial crisis has raised fundamental issues about corporate regulation, governance and business culture. Our first priority must be to get the financial system moving again. But, longer term, it is essential to restore legitimacy to and trust in the practice and profession of management.

Fast track the new president
by Richard Tedlow
October 15, 2008

The next president will be elected on Nov. 4, but will not take office until Jan. 20. Normally, this lag time is not an issue. But with the financial system in meltdown, the "real" economy threatening to follow, and a feckless, lame-duck administration unable to lead, this yawning interval is a problem. If history is any guide, a very big problem.

Bill George: Where Were the Boards?
by Bill George
October 13, 2008

As the financial crisis continues to pummel the markets, the question we need to ask is: "Where were the boards of directors of Lehman, AIG, Bear Stearns, Countrywide Financial, Merrill Lynch, Wachovia, Washington Mutual, Fannie Mae and Freddie Mac?" The first job of the board of directors is to ensure the viability - indeed, the survivability - of the firm. By this criterion, these boards failed miserably.

Wall Street's Latest Crisis of Leadership
by Bill George
October 3, 2008

The current crisis on Wall Street is being characterized in technical terms that few Americans understand: subprime mortgages, credit default swaps, mortgage-backed securities, and CDOs. But this is not a crisis caused by the failure of complex financial instruments. This is a crisis caused by the failure of leaders on Wall Street.

9/11 victims recalled as names, not numbers
by John Quelch
September 11, 2008

For the past seven years, there have already been in place two memorials at Logan Airport, dedicated to the 147 men, women and children who perished the morning of Sept. 11, 2001, on American Airlines [AMR] Flight 11 and United Airlines Flight 175. One stands outside Gate 32 in American Airlines Terminal B. The other stands outside Gate 19 in United's Terminal C. Both memorials appeared spontaneously, raised by airport and airline employees without fanfare or ceremony. These two memorials are one and the same. And there is no grander memorial.

Skilling's Appeal and Enron's Legacy
by Malcolm Salter
August 21, 2008

Nearly seven years after its collapse, Enron continues to fascinate those interested in the leadership and governance of companies. The latest chapter of the Enron story opened on Apr. 2 at the Fifth Circuit Court of Appeals in New Orleans. Lawyers for former Chief Executive Officer Jeffrey Skilling argued that his 2006 conviction on 19 counts of fraud, conspiracy, insider trading, and lying to auditors-along with his 24-year prison sentence-should be overturned. Some four months later, a ruling by the appellate court on Skilling's appeal is near.

What the Olympics tell us about China and India
by Tarun Khanna
August 18, 2008

China has pulled out all the stops revitalising and cleaning up Beijing. This includes building several stadia, sprucing up the roads and other supporting physical infrastructure, and showcasing new-age architecture of a sort hitherto unseen on the mainland.

What the Olympics Means for China, IT
by Warren McFarlan
August 14, 2008

The Beijing Olympics-and the massive media coverage around it-helps China reintroduce itself to the world. Harvard Business School's China guru, Warren McFarlan, explains the ramifications.

How a local squall might become a global tempest
by Niall Ferguson
August 8, 2008

The phrase "perfect storm" has been trotted out once too often to characterise the past year's financial crisis. Yet the real perfect storm may still lie ahead. Fans of the George Clooney film will recall that the perfect storm was caused by the convergence of a hurricane off the Atlantic seaboard, an area of low pressure south of Nova Scotia and a cold front swooping down from Canada. Result: howling winds, vast waves and the loss of at least one boatload of Gloucester fishermen.

A Better Solution for China
by Li Jin
July 3, 2008

Milton Friedman famously taught that inflation is, and can only be, a monetary phenomenon. China is no exception. Although people can point out the various structural reasons behind the asset bubbles and consumer price hikes in China, the fundamental cause of the problems is excess liquidity. Too much money is chasing a limited supply of goods and assets.

Turning 'dirt to dollars'
by John Macomber
June 15, 2008

Among the over $2 billion of private equity investment deals conducted in India this year alone, the recent $18 million investment by leading investment firm Blackstone in a Bangalore-based real estate project management firm may seem relatively small.

America the Difficult
by Mihir Desai
May 29, 2008

Foreign investors increased their acquisition of corporate assets in the United States last year by 90 percent, setting new records for foreign investment. And 2008 began with nearly daily stories of American financial executives courting foreign investors, particularly sovereign wealth funds, for new investments. Citigroup raised more than $7.5 billion from Abu Dhabi, and Merrill Lynch raised more than $5 billion from South Korea and Kuwait.

Getting Japan to capitalize on its innovation
by Andrei Hagiu and Robert Dujarric
May 15, 2008

As they lament the West's obsession with China and prepare to host the Group of Eight in July, Japanese fear becoming a minor planet in the Chinese orbit. Trouble is, Japan still sees manufacturing as the key to prosperity, despite the fact that it is vulnerable to offshoring.

How to Revive Securitization Markets
by Robert Pozen
April 29, 2008

Most markets for securitized debt have dried up. The cause is uncertainty: Since no one knows exactly who owns the potential losses from securitized mortgages, many investors stay away. When the Securities and Exchange Commission Advisory Committee on Improving Financial Reporting meets on Friday, it can take a big step toward reviving this critical part of our financial market. It should recommend that the regulators require someone to "own" the securitization process as well as require more disclosures about who will bear the losses from the assets underlying these securities.

Why China Needs India's Transparency
by Tarun Khanna
April 22, 2008

A few months ago the gentleman driving my car between New Delhi and an old fort in Alwar district in Rajasthan had to stop to accommodate a collection of villagers protesting water shortages. It is perhaps a sad commentary on this serious problem-water shortages are endemic to Rajasthan, a desert state bordering Pakistan -that the protest barely registered with me.

The Gap in the U.S. Treasury Recommendations
by Dwight Crane
April 14, 2008

The U.S. Treasury recommendations for restructuring the nation's system of financial regulation are an important start in the process of strengthening the United States financial system. The proposal is to be commended for some of its recommendations, most importantly for recognizing that fundamental change in the regulatory structure is required for managing risk in the financial system. That said, there is still a fundamental gap in the recommended structure because it leaves some financial firms out of "prudential regulation," to use the report's terminology.

Burmese Squeeze
by Tarun Khanna
April 10, 2008

Orange-robed, serene Buddhist monks recently engaged in the unserene business of unseating the junta in Burma. And the stoic Aung Sang Suu Kyi is engaged in an awkward, and very public, pirouette with the generals. But a quieter battle has been underway for two decades in Burma, entirely undramatic, but profoundly consequential. Its quiet nature should not obscure the fact that it is a slugfest. In one corner, China. In the other, India. Sino-Indian competition for influence in the common hinterland of the two countries is heating up, and will get a lot hotter.

The Leader Within
by Joseph Bower
April 1, 2008

In most of the world's major industrial countries, corporate law assigns the job of selecting the chief executive officer to the board of directors. In practice, however, the board's role in managing a succession process, though important, is distinctly subordinate to that of the incumbent CEO. Indeed, in the case of large publicly held corporations, if the board is actually and not just formally choosing the CEO, it is usually a sign that the succession process has failed and that the incumbent chief executive is on the way out.

Time travellers
by Niall Ferguson
March 22, 2008

Leopold von Ranke's famous definition of what historians should strive for can be variously translated. "As it actually was" is the most common rendering of "Wie es eigentlich gewesen"; "as it essentially was" is probably more exact. The great Oxford philosopher of history, R.G. Collingwood, was more precise: "Historical knowledge is the re-enactment of a past thought."

L'Affaire Spitzer: Leaders Who Lose Their Way
by Bill George
March 13, 2008

The shocking news of New York Governor Eliot Spitzer's liaisons with prostitutes offers yet another tragic example of how powerful leaders get so caught up in their egos that they lose sight of their True North.

Art of retaining professionals
by Thomas J. Delong
March 7, 2008

In the midst of India's economic boom, Indian professional service firms (PSF)-- from management consultancies and investment banks to advertising agencies and law firms -- are competing to attract the best and the brightest. But to be truly successful, they have to do more than that. Like other PSF's around the globe, they need to retain their professionals rather than see them walk ou the door in search of other opportunities. To achieve that, companies often rely on the allure of sprawling campuses and luxurious facilities that include food courts, gyms, and movie theatres. But none of this gets to the heart of the problem.

Ethics Must Be Global, Not Local
by Bill George
February 12, 2008

In business school, we used to debate whether your business ethics should adapt to the local environment or be the same around the world. Many of my classmates argued, "When in Rome, do as the Romans do." In other words, follow local practices. Those were the days when leading ethicists like Joseph Fletcher and James Adams at Harvard were promoting "situation ethics," based on flexible, pragmatic approaches to complex dilemmas.

Why so many companies fail at succession
by Joseph L. Bower
January 2008

Every year for the past five years, the consulting firm of Booz Allen Hamilton (BAH) has conducted a survey of the world's 2,500 largest public companies, attempting to develop a clear picture of the phenomenon of executive turnover. BAH's researchers have found an astounding degree of turnover at the most senior ranks of the corporate world. Much of that turnover isn't voluntary.

Why cooperation matters
by Tarun Khanna
January 15, 2008

There are some telling signs of economic rapprochement between China and India.

An Ottoman warning for indebted America
by Niall Ferguson
January 1, 2008

Future historians will look back on the current decade as a turning point comparable with that of the Seventies. No, not the 1970s. This is not going to be another piece pointing out the coincidence of an unpopular Republican president, soaring oil prices, a sagging dollar and an unwinnable faraway war. I am talking about the 1870s.

Foreign Health Affairs
by Regina E. Herzlinger
November 19, 2007

America, a nation prone to love at first sight with seductive health-care fixes, is now falling for the systems of the Netherlands and Switzerland. Their representatives recently displayed their dowry in D.C., and U.S. Health and Human Services Secretary Michael Leavitt personally checked out the potential brides earlier this month.

Business and innovation
by Michael Porter
November 15, 2007

SIR - I do not agree with your assertion that technology clusters have a "fading lustre" (A special report on innovation, October 13th). The concept of clusters is now well understood and empirical work on their incidence and impact is growing rapidly. But there is still confusion about the policy implications. Should clusters be allowed to form spontaneously, which is what has usually occurred, or should there be some sort of policy intervention?

Avoiding a Succession Crisis
by Joseph L. Bower
November 7, 2007

The rapid changes at Merrill Lynch and now Citigroup highlight the problem many firms face as they consider succession. What we are seeing should be surprising and disturbing to us all: At investment banks of great importance, the board of directors has decided to change the leadership of the firm, yet there is great uncertainty as to who the successor should be, and how the process of finding a successor should be managed. There is something very wrong with this picture.

A Global Tax Credit
by Eric Werker
October 20, 2007

Barack Obama has proposed that the United States double the amount it spends on foreign aid to $50 billion each year. But before promising to spend more taxpayer money, Mr. Obama and the other presidential candidates should look to reform our system of foreign aid by modeling it on the successful programs the United States has used to reduce domestic poverty.

Trigger-Happy Journalists
by Ben Ryan (MBA 2003/D)
October 1, 2007

They are immature shooters and have very quick trigger fingers," says an anonymous lieutenant colonel. "Why are we creating new vulnerabilities by relying on what are essentially mercenary forces?" asks a nameless intelligence officer. "They often act like cowboys over here," says an unidentified commander. Ever since a recent shootout in downtown Baghdad, newspapers have been ablaze with charges that private security contractors in Iraq are trigger-happy."

The M.B.A. Investment
by Carl Kester
September 30, 2007

"Bye, Bye B-School" (Sept. 16) correctly showed that an M.B.A. degree is not for everyone. The M.B.A. program was never designed as a personal get-rich-quick plan. It's about entrepreneurship, building organizations and preparing for a lifetime of principled leadership in all kinds of operations - not just on Wall Street, but around the world.

Nonperforming CEOs
by Bill George
September 6, 2007

The public is outraged these days over CEO compensation, with good reason. Far too many chief executive officers get paid large sums even when they don't perform. I believe that CEOs should be well-paid when they do perform, but there is no justification for paying for nonperformance.

Who Killed U.S. Medicine?
by Regina E. Herzlinger
July 25, 2007

America's physicians are the most trusted and valuable resources in our health-care system. Yet doctors' professionalism and incomes have taken a terrible beating recently. The American Medical Association, which received $286 million in revenue last year to protect the profession, has served physicians poorly.

Where Are the Innovators in Health Care?
by Regina E. Herzlinger
July 19, 2007

No sector of our economy is more in need of innovation than health care, yet its many regulations handcuff entrepreneurs. A consumer-driven health-care system will unlock these shackles to bring about a much-needed entrepreneurial revolution.

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How to Reduce Risk in the Financial System
by Mohamed El-Erian
July 10, 2007

Regulatory authorities face two challenges that need to be addressed forcefully if they are to contain a new source of systemic risk in international finance. First, the increasing migration of complex market activities to supervisory bodies that lack the necessary sophistication to oversee them; and, second, a growing threat of politically motivated changes to regulatory regimes.

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The bad dream of options expensing lingers
by Mihir Desai
June 7, 2007

Remember the bad old days when we tricked ourselves into thinking stock options used to compensate executives did not need to be "expensed" on income statements? Thanks to the efforts of accounting standard setters, who resisted considerable pressure, we fixed that problem by forcing companies to recognise options grants at the time of grant and at a reasonable approx-imation to their fair value. The wheels of capitalism did not fall off, as critics had warned. Now the confusion over the issue seems like a bad dream.

Set Benchmarks for Funding the Iraq War
by Bruce R. Scott
May 22, 2007

The Democratic leadership in Congress has tried to respond to the desire of the majority of Americans to reduce US involvement in Iraq by establishing performance benchmarks that would have to be met by the commanders on the ground and still more by the Iraqi authorities if the US is to maintain its troop commitments and Congress is to continue the funding of those commitments.

Capital Currents
by Mohamed A. El-Erian and Michael Spence
March 24, 2007

For the past few years, the U.S. has generated insufficient domestic savings to cover its investment needs. The difference has been covered by large capital inflows from abroad, the counterpart of which is the much-discussed current account deficit, which has been running at unprecedented rates of 6%-7% of GDP.

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In the New Liquidity Factories, Buyers Must Still Beware
by Mohamed El-Erian
March 22, 2007

Market drivers of liquidity currently exceed influences coming from traditional monetary policy instruments. But this is not to say that these instruments are no longer effective. They still are, but at wider levels of economic fluctuations and with less precision - thus raising interesting issues for policymakers and investors.

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Board Silly
by Guhan Subramanian
February 14, 2007

SLOWLY but surely, corporate America is giving up the staggered board. Some businesses are responding to corporate governance rating agencies, which penalize companies that do not elect all of the directors each year. Some are responding to shareholder resolutions or to behind-the-scenes pressure from large shareholders. Georgeson Shareholder Services reports there were more than 90 resolutions among S.&P. 1500 companies in 2006 to abolish staggered boards, half proposed by the companies and half by shareholders. More are expected in the 2007 proxy season, and some corporate governance experts are urging companies not to fight the issue.

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How Multinationals Can Reduce Global Poverty
by George C. Lodge and Craig Wilson

As Ban Ki-moon begins his tenure as secretary-general of the United Nations, the world's poor continue to cry out for help and hope. One-sixth of the world's population lives in "deep poverty" -- generally defined as surviving on half or less of the annual income of those at a nation's poverty line. And yet, more than a trillion dollars has been spent by bilateral and multilateral organizations since World War II to try to alleviate this problem.

Chimerical? Think Again
by Niall Ferguson and Moritz Schularick
February 5, 2007

Global markets boomed last year -- and nowhere was the euphoria more pronounced than in the initial public offering of Industrial and Commercial Bank of China, the biggest IPO in history. But Chinese banking stocks were only the extreme example of a general surge in asset prices that also manifested itself on global bond markets, real-estate markets and even art markets.

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Call It the 'Andy Amendment'
by Richard S. Tedlow
February 4, 2007

Andy Grove fled Hungary at the age of 20 in 1956, shortly after Soviet tanks rolled into Budapest to put down any illusion that freedom could flourish behind the Iron Curtain. He made his way to the United States and enrolled at the City College of New York, graduating first in his engineering class in 1960. He then went to UC Berkeley for his PhD in chemical engineering.

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New Giant of Steel
by Tarun Khanna
Februry 2, 2007

The Tata Group is celebrating its acquisition of the Anglo-Dutch steel firm Corus, and the catapulting of Tata Steel into world steel's big-five status (by revenue). It should. The deal is a marker in the ground. Not that it is the biggest deal ever from an emerging market.

There's Nothing Wrong with Sharing
by Josh Lerner
December 7, 2006

Some 53 years ago, Judge Harold Medina dismissed charges brought by the Justice Department against 17 leading investment banks. A case built up over a decade of investigations and almost three years of trial collapsed when the government was unable to show that the industry's collaborative practices constituted an anti-competitive conspiracy. The judge observed that activities that the government depicted as nefarious were "nothing more nor less than a gradual, natural and normal growth or evolution by which an ancient form has been adapted to the needs of those engaged in raising capital."

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India Should Open up More to China
by Tarun Khanna
November 23, 2006

Everyone points out that China-India bilateral trade, at roughly $19 billion in 2005, is a far cry from the $2 billion in 1999. Indeed, the increase is to be celebrated . Chinese President Hu Jintao's current visit to New Delhi cements the diplomatic and economic bridges created by Premier Wen Jiabao last year during a similar visit.

If Andy Grove Had Been Chairman of the HP Board...
by Richard S. Tedlow

The train wreck that has become the board of directors of Hewlett-Packard has been in the national business spotlight for weeks. The story has all the elements of high drama: name calling, spying, lying, backbiting, double-crossing, and so on. The question now facing the HP board: How can it be reconstituted not just in terms of its members but its morale and mores? One answer that has been bruited about recently in the press and behind closed doors is Andy Grove, Intel's semi-retired, legendary leader.

Leadership Change at Ford Motor Company
by Joseph Bower
September 2006

Listen to Prof. Joseph Bower discusses the recent changing of the guard at Ford Motor Company in an interview with Harvard Business School Media Relations Director Jim Aisner.

Think Like A 'Disrupter'
by Scott D. Anthony and Clayton M. Christensen
August 23, 2006

Most managers fiercely believe that creating growth through innovation is fundamentally a risky, random endeavor. Indeed, there is a general sense that a fog enshrouds the world of innovation, obscuring high-potential opportunities and making success fleeting.

Big Pharma's Prognosis
by Clayton Christensen
August 1, 2006

Big Pharma is not an industry that typically engenders pity. With historical growth rates in double digits and 20% operating margins, pharmaceutical firms have enjoyed a heady combination of growing demand and big profits. But times are changing.

India, China Two Contrarian Forces
by Tarun Khanna
July 27, 2006

China and India both have unbelievable amount of entrepreneurship. But the way it is growing in the two economies is very different and is being shaped by two fundamental factors.

Enron Jury Sent the Right Message
by Malcolm S. Salter
July 21, 2006

Although the actions of Enron's executives were in many areas neither clearly legal nor illegal, jurors sent an unambiguous message that all executives should heed: Truth telling and ethical discipline are the cornerstone values in corporate governance.

Open-Door Policy Works Best
by Clayton Christensen and Jessica Alter
July 21, 2006

In 1982 when I was a White House fellow, my colleagues and I enjoyed a private lunch with Richard M. Nixon. One asked what had driven the former president to establish diplomatic relations with China in 1972 — a move that was counterintuitive to many at the time. I recorded Nixon's response in my journal (the italics represent Nixon's verbal emphasis):

The Case for Consumer-Driven Medicaid
by Regina E. Herzlinger
July 14, 2006

The Medicaid program is a health insurance safety net for 52 million Americans, but the price tag threatens the financial stability of the states. Regina Herzlinger looks to South Carolina for a model in consumer-driven healthcare.

Kraft's Innovation Challenge
by Clayton Christensen
July 6, 2006

There's clearly a collaborative vibe in the air. Consumer products giant Procter & Gamble claims that 35% of its innovation initiatives have critical components that originated outside the company. Web-browser provider Mozilla recently asked passionate users to design its advertisements. Web sites such as YouTube.com and MySpace.com feature content that is almost entirely user-created. And a recent article about so-called "crowd-sourcing" in Wired magazine breathlessly described how "everyday people using their spare cycles to create content, solve problems, even do corporate R&D" is the "new pool of cheap labor."

Corporate Governance Activists are Headed in the Wrong Direction
by Joseph Hinsey
July 5, 2006

Corporate governance reformers are pushing the idea of majority voting for directors. But that solution, as Joseph Hinsey sees it, won't produce the desired outcome. The answer? Keep CEOs and board chairs separate.

They'd Sooner Fix Medicaid
by Tom Coburn and Regina Herzlinger
May 18, 2006

Oklahoma City -- The state Legislature here is working to finalize an agreement for Medicaid reform legislation creating personal health accounts (PHAs) for Medicaid enrollees. This comes hard on the heels of similar innovations in South Carolina and Florida. Reform is in the air -- much the way it was when Wisconsin revolutionized its welfare system in the early 1990s, forerunning a stunning national success. Are we on the verge of consumer revolution in health care?

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The 'White Coat' Economy of Massachusetts
by Rosabeth Moss Kanter
May 9, 2006

A decade ago, it was clear that the Commonwealth would never regain lost blue-collar jobs. We had become a white-collar economy. Today, our economy is not just white-collar, it is ''white coat." Scientists and health professionals donning white lab coats keep the economy vibrant.Although corporate headquarters have fallen to out-of-state acquirers, corporate research and development centers have grown.

The Endangered Land of Renter-World
by Nicolas P. Retsinas
May 5, 2006

Welcome to Renter-World, home to more than 34 million households. Renter-World denizens, aka tenants, comprise all ages. Eighty percent of all twentysomething households rent; so do 4 million senior households. Tenants come in all socioeconomic strata: Twenty percent of renters earn more than $60,000 a year; another 20 percent earn less than $10,000. Yet a myopic Uncle Sam barely sees Renter-World.

Keeping the Core Healthy
by Clayton Christensen
April 24, 2006

Those following the sale of newspaper giant Knight Ridder know the company had come under increasing shareholder pressure in recent years. As circulation declined and the nation's second-largest newspaper chain faced ever-growing threats from new online providers, investors grew anxious, then ultimately forced the company to put itself up for sale.It seems straightforward, but here's the rub: Knight Ridder actually had one of the most innovative and quickly growing online operations of any newspaper company. The public perception that the company was in trouble, even as its new line of business boomed, highlights how difficult it is to manage the pace of creating new-growth businesses.

Health Policy in Maryland and Massachusetts: A Study in Contrasts
by Regina E. Herzlinger
April 13, 2006

The Maryland legislature's decision to require that its big businesses spend 8 percent of payroll on health insurance has turbo-charged the AFL-CIO's "Fair Share" campaign to enact similar legislation in 30 states. As always, the word "fair" implies that someone's pocket is about to be picked. In this case, it is that of the American business community. The problem the legislation addresses is serious. Sadly, the Maryland solution could not be worse. States should look to the best features of Massachusetts's recent reform efforts for a more promising approach.

Commentary: Innovation and Its Discontents
by Adam Jaffe and Josh Lerner
March 21, 2006

The problems of the U.S. patent system are under discussion today with an urgency not seen in decades. The Supreme Court will soon hear oral arguments in eBay v. MercExchange LLC, which promises to be its most far-reaching examination of patent law in many years. Today the court will also consider LabCorp v. Metabolite Laboratories -- the contested matter is whether a patent can be issued for the correlation between a disease and a naturally occurring substance in the human body. That is: Can you actually patent the laws of nature?

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Selling Livedoor
by Robin Greenwood
February 6, 2006

The fall from grace of Livedoor, Japan's formerly high-flying internet company, has Tokyo Inc. recalling America's Enron scandal. That may be premature, given that its CEO, Takafumi Horie, hasn't yet been charged. And there's even a chance that his main transgressions -- the exploitation of regulatory loopholes -- were legal.

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What Do 'Hot Mamas' Want? Access to Capital, Markets
by Rosabeth Moss Kanter
January 12, 2006

Even before I entered the ballroom of the Coral Gables Biltmore Hotel, I could feel the heat rising inside. The air-conditioning was on full blast. Yet pulses of warmth emanated from hundreds of high-spirited women business leaders. I was there to talk about confidence and success with members of the Commonwealth Institute (TCI), a national mentoring and networking organization that began in Boston to help entrepreneurial women grow their businesses. (I'm a founding board member.)

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Made to Measure Is the Best Fit for Future Pensioners
by Roberto Mendoza and Robert Merton
January 6, 2006

Changes in accounting rules are forcing companies that report under International Financial Reporting Standards or US Generally Accepted Accounting Principles to confront the economic reality of obligations under defined benefit pension plans. For most companies such plans are unaffordable; as a result we are seeing a shift to defined contribution plans, coupled with a growing interest in immunising existing obligations through "liability driven investment" strategies, which seek to match plan assets with the company's pension obligations. Both trends are ill-conceived as long-run solutions

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With Surveillance, You're Never Alone
by Rosabeth Moss Kanter
January 4, 2006

To make this New Year's greeting special, I am writing it in the total privacy of my office, with the door closed. You are the very first person to read this. That is, except for the FBI, CIA, NSA, IRS, EOP and Big Brother. Also the IT department controlling my server, Microsoft sending pop-up "install update" messages, and my husband, whose "Go to My PC" program can get into my laptop.

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Transformation
by John Kotter
January 2006

No Organization is immune to change. To cope with new technological, competitive, and demographic forces, leaders have tried total quality management, reengineering, restructuring, mergers and acquisitions, turnarounds and transformations-yet few of these efforts meet their goals.

Online Images Open a Heart, Then a Home
by Debora Spar
December 18, 2005

FOR about a year, for the first time in my life, I was addicted to a Web site. Well, two Web sites actually, both of which did the same thing. They listed beautiful children, tragic children, children whose photographs were displayed in colorful rows or with banner headlines, looking out from the desktop and pleading with someone to take them home. There were some babies in the mix and some older kids. Most were toddlers, clasping toys or wearing huge bows in their hair. Technically all of these children were available; "waiting," in the parlance of adoption, for their "forever families."

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Generosity Can Unite Us
by Rosabeth Moss Kanter
December 15, 2005

Is charity just a chance for a tax deduction? Philanthropic donations appear high on lists of year-end tax saving tips, especially now that Katrina relief provisions dangle a one-time deduction of up to 100 percent of income as an incentive for giving. Total annual giving in the U.S. is a relatively constant $250 billion. Roughly 75 percent of this comes from individuals, not corporations or foundations, as reported on www.charitynavigator.org. And half of all annual giving by individuals occurs now, in the weeks between Thanksgiving and Christmas.

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The Education of Andy Grove
by Richard S. Tedlow
December 12, 2005

In 1991, an instructor at Stanford's Graduate School of Business presented his class with a case study. It went like this: A CEO was scheduled to address a major industry gathering, and he could give one of three speeches. The first would publicly commit his company to incorporating a sexy, sophisticated new technology in its products. The second speech would reaffirm the company's commitment to developing its existing technology. The third speech would do neither, leaving the decision to "the market." The stakes were enormous: A wrong decision could well ruin the business. What should the CEO do? The question was more than academic, because the CEO described in the case was also the man at the front of the classroom. Dr. Andrew S. Grove, like professor Indiana Jones, was better known for his exploits as "Andy," the famous leader of Intel Corp.

A New Agenda for Business Schools
by John Quelch
December 2, 2005

In 2005 around 110,000 students in the United States graduated with M.B.A. degrees — more than three-quarters of all M.B.A.'s granted worldwide. Graduate business schools were invented in this country 100 years ago, and, by one measure, all but four of the top 20 business schools in the world are American. The work of these institutions has contributed enormously to the training of talented managers and leaders who have helped guide American economic growth.

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The Case for Consumer-Driven Medicaid
by Regina E. Herzlinger

The Medicaid program provides a much needed health insurance safety net for 52 million of our nation's poor and medically needy, but its price tag threatens the financial stability of the states, growing 9.5 percent in 2004 alone--far in excess of revenues. Fiscally responsible governors and state legislators who decline to raise taxes and, instead, attempt to control these costs, face three choices: cut Medicaid expenses through reductions in enrollment, benefits, and provider reimbursement; cut other state expenditures for the likes of education and roads; or try a new approach.

It's the Purpose Brand, Stupid
by Clayton M. Christensen, Scott Cook and Taddy Hall
November 29, 2005

Earlier this month, Coca-Cola announced that it was pulling the plug on Vanilla Coke. The news made headlines, but in fact, most new products are doomed to an early death. Of the 30,000 new consumer products launched each year, over 90% of them fail. Why has product innovation become a gamble with such horrifyingly low odds? We believe that prevailing models of segmentation and brand building are to blame. Carving up markets by product, price point or customer type often causes marketers to deliver products overloaded with unwanted features or designed to improve on a product or appeal to a demographic profile -- but not necessarily real customers.

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Newspapers in an Electronic Age
by Clark Gilbert and Scott D. Anthony
November 8, 2005

As innovative technologies and business models with transformational potential continue to emerge, the world of the newspaper publisher has grown progressively darker. Five years ago, eBay and Monster.com started to slice off pieces of the classifieds. Recently, Google's news and search offerings and the Web logs began to threaten the hegemony of the traditional media's command-and-control structure. Throw in podcasts and free commuter newspapers and you have a potent brew indeed.

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Lessons from Columbia and Discovery
by Michael A. Roberto, Amy C. Edmondson, and Richard M. Bohmer

The shuttle Discovery is safely home, yet NASA finds itself under fire once again — first, the problems on Discovery's flight, and now the issuance of a scathing minority opinion from NASA's Return to Flight Task Group. Though this criticism has some merit, we believe that the agency has shown some encouraging signs of improvement on its journey from Columbia to Discovery.