Leadership

Leadership is a featured research topic and an initiative at Harvard Business School.

As our world grows increasingly global, intricate, and ever-changing, the role of leaders is becoming more and more complex and critical to business success. In the 1950s and 1960s, Fritz Roethlisberger and Elton Mayo's contributions to the "Hawthorne effect," and work by Paul Lawrence and Jay Lorsch on organizational integration, sparked the field of Organizational Behavior. Early work by Michael Beer on leading organizational change, Rosabeth Kanter on innovation for productivity, John Kotter on power and influence, and Michael Tushman on innovation management helped shape today's understanding of organizational transformation. With an interest in Leadership that spans our academic units, our approach to research is collaborative and multi-disciplinary. We leverage a wide range of research methodologies – from onsite field research to surveys, experiments, and extensive longitudinal studies.

Featured Works

Chapter | The Rise of HR | 2015
Leave No Slice of Genius Behind: Selecting and Developing Tomorrow's Leaders of Innovation
Linda A. Hill
More than ever, leaders of nearly every kind of organization view their human resources teams as essential to institutional well-being and long-term growth and sustainability. That's the central and animating theme of "The Rise of HR: Wisdom from 73 Thought Leaders," a new anthology published by the HR Certification Institute. Professor Hill's essay addresses the question of how to develop leadership talent capable of building and sustaining organizations that can innovate time and again to address the challenges we face as a global community.
Keywords: innovation; human resources; talent management; talent development and retention; leadership; Innovation Leadership; Human Resources; Talent and Talent Management; Leadership; Leadership Development;

Citation:
Hill, Linda A. "Leave No Slice of Genius Behind: Selecting and Developing Tomorrow's Leaders of Innovation." In The Rise of HR: Wisdom from 73 Thought Leaders, edited by Dave Ulrich, William A. Schiemann, and Libby Sartain, 233–240. Alexandria, VA: HR Certification Institute, 2015. View Details
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Article | JAMA, the Journal of the American Medical Association
Professionalism, Fiduciary Duty, and Health-Related Business Leadership
Joshua D. Margolis
Expanding fiduciary duty to leaders of health-related businesses can help leaders meet the challenges of caring for not only the corporation and shareholders but also the patients and medical professionals. How should leaders of health-related businesses weigh the demand for efficiency and profit alongside the care of patients and the professional development of physicians? How might physicians approach these leadership roles to withstand the pressures that can divert behavior away from the espoused purposes and ethical standards of medicine?

Citation:
Margolis, Joshua D. "Professionalism, Fiduciary Duty, and Health-Related Business Leadership." JAMA, the Journal of the American Medical Association 313, no. 18 (May 12, 2015): 1819–1820. View Details
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Article | Harvard Business Review | July–August 2014
How the Other Fukushima Plant Survived
Ranjay Gulati, Charles Casto and Charlotte Krontiris
In March 2011, Japan's Fukushima Daiichi nuclear power plant was devastated by three reactor explosions and two core meltdowns in the days following a 9.0 earthquake and a tsunami that produced waves as high as 17 meters. The world is familiar with Daiichi's fate; less well known is the crisis at its sister plant, Daini, about 10 kilometers to the south. As a result of nature's onslaught, three of Daini's four reactors lacked sufficient power to achieve cooldown. To prevent the disaster experienced up north, the site superintendent, Naohiro Masuda, and his team had to connect them to the plant's surviving power sources. In a volatile environment, Masuda and Daini's hundreds of employees responded to each unexpected event in turn. Luck played a part, but so did smart leadership and sensemaking. Until the last reactor went into cold shutdown, Masuda's team took nothing for granted. With each new problem they encountered, it recalibrated, iteratively creating continuity and restoring order. Daini survived the crisis without an explosion or a meltdown.

Citation:
Gulati, Ranjay, Charles Casto, and Charlotte Krontiris. "How the Other Fukushima Plant Survived." Harvard Business Review 92, nos. 7/8 (July–August 2014): 111–115. View Details
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Working Paper | HBS Working Paper Series | 2018
Do Managers Matter? A Natural Experiment from 42 R&D Labs in India
Prithwiraj Choudhury, Tarun Khanna and Christos A. Makridis
This paper exploits a natural experiment in the entry of new lab managers across India’s 42 public R&D labs between 1995 and 2006 to study the complementarity between lab managers and incentive schemes. While scientists were provided with stronger incentives to patent and license from multinational companies in 1994, the “old generation” of lab managers disagreed with these aims and failed to adequately support scientists’ efforts. First, we show that the introduction of new lab managers aligned with the national R&D reforms is associated with a 58% rise in patenting and 75% rise in licensing revenues from multinationals. Second, using additional information on each scientist in these labs, we examine how their research productivity changed in response to different managers. Notably, we find that the entry of new lab managers is associated with improved research productivity: 15.6% higher h-indices, 11.7% more coauthors, 12.7% more research articles, and 25.1% more citations per scientist. Moreover, using natural language processing (NLP) techniques on the set of research abstracts produced among these scientists, we find that overall mood and sentiment increased by 9.4% following the first managerial change. Our results highlight the important complementarities between incentives and management practices, especially in developing countries. A back-of-the-envelope calculation that suggests India could save on 9–24% of its R&D and related subsidy expenditures under the entry of new generation lab managers.
Keywords: incentives; innovation; management; productivity; Research and Development; Patents; Leadership; State Ownership; Research and Development; Innovation and Management; Performance Productivity; India;

Citation:
Choudhury, Prithwiraj, Tarun Khanna, and Christos A. Makridis. "Do Managers Matter? A Natural Experiment from 42 R&D Labs in India." Harvard Business School Working Paper, No. 14-077, February 2014. (Revised June 2018.) View Details
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Article | Harvard Business Review | October 2014
The Transparency Trap
Ethan Bernstein
To get people to be more creative and productive, managers increase transparency with open workspaces and access to real-time data. But less transparent work environments can yield more-transparent employees. Employees perform better when they can try out new ideas and approaches within certain zones of privacy. Organizations allow them to do that by drawing four types of boundaries: around teams of people (zones of attention), between feedback and evaluation (zones of judgment), between decision rights and improvement rights (zones of slack), and for set periods of experimentation (zones of time). By balancing transparency and privacy, organizations can encourage just the right amount of "deviance" to foster innovative behavior and boost productivity.

Citation:
Bernstein, Ethan. "The Transparency Trap." Harvard Business Review 92, no. 10 (October 2014): 58–66. View Details
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Module Note | March 2015
Power and Influence in Society
Julie Battilana
This module aims to help students understand how power and influence are employed, both to reproduce the status quo and to effect change in society. It first helps them to understand why, more often than not, power is used to reproduce the existing way individuals and organizations operate in society. It then highlights what it takes to implement societal change. This includes a wide variety of initiatives ranging from attempts to change individuals' and organizations' behaviors in a given industry or sector, to efforts to change behaviors throughout a country, region, or even the world. Addressing the issue of power and influence in society in an MBA classroom is critical, especially at a time like now, when the relationship between business and society is attracting increasing attention, and when business leaders are increasingly expected to contribute not only to financial value creation, but also to social value creation. In this context, it is important to prepare business school students to lead not just in their organizations, but more broadly in society. Meeting this aspiration requires equipping them with knowledge and tools that will enable them to understand what it takes to have a positive impact in the world. In line with this objective, this module note focuses on how leaders who are not part of government or other public agencies can spark, organize, and/or guide action to bring about change at the societal level.

Citation:
Battilana, Julie. "Power and Influence in Society." Harvard Business School Module Note 415-055, March 2015. View Details
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Recent Publications

Article | Harvard Business Review | January–February 2019
The Hard Truth About Innovative Cultures
Gary P. Pisano
Innovative cultures are generally depicted as pretty fun. They’re characterized by a tolerance for failure and a willingness to experiment. They’re seen as being psychologically safe, highly collaborative, and nonhierarchical. And research suggests that these behaviors translate into better innovative performance. But despite the fact that innovative cultures are desirable, and that most leaders claim to understand what they entail, they are hard to create and sustain.
That’s because the easy-to-like behaviors that get so much attention are only one side of the coin. They must be counterbalanced by some tougher and frankly less fun behaviors: an intolerance for incompetence, rigorous discipline, brutal candor, a high level of individual accountability, and strong leadership.
Unless the tensions created by this paradox are carefully managed, attempts to create an innovative culture will fail.
Keywords: Organizational Culture; Innovation and Invention; Performance Expectations; Leadership;

Citation:
Pisano, Gary P. "The Hard Truth About Innovative Cultures." Harvard Business Review 97, no. 1 (January–February 2019): 62–71. View Details
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Case | HBS Case Collection | December 2018
Wolfgang Puck: Setting the Table for the Future
Boris Groysberg and Matthew G. Preble
Chef Wolfgang Puck oversees a disparate business empire that includes fine dining restaurants, a catering business, and various licensed products that run from cookware, to soup, to fast-casual restaurants. His businesses activities are divided between three separate entities—Wolfgang Puck Fine Dining Group, Wolfgang Puck Catering, and Wolfgang Puck Worldwide—that share some formal and informal linkages. But the key person holding this all together is Wolfgang Puck himself. Now in his late 60s, Puck wonders what he needs to formalize—in terms of systems, processes, and management—to ensure that his different businesses will endure long after he is no longer involved in the day-to-day management of these three businesses.
Keywords: Brands and Branding; Growth and Development; Management Systems; Business Processes; Leadership; Transition; Food and Beverage Industry; Consumer Products Industry;

Citation:
Groysberg, Boris, and Matthew G. Preble. "Wolfgang Puck: Setting the Table for the Future." Harvard Business School Case 419-001, December 2018. View Details
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Case | HBS Case Collection | November 2018
Governance Transition at Anadolu Group
Paul M. Healy and Esel Y. Cekin
Kamil Yazici and Izzet Ozilhan founded and built Anadolu Group Holding; a family business that grew into a multi-billion-dollar regional powerhouse. For 57 years they were equal partners in running the company. They then handed over a leadership role to a next generation family member; Izzet’s son Tuncay; who became the CEO and later also chairman. Under Tuncay’s leadership; the company was primarily run by professional managers; supplemented by a limited number of second- and third-generation family members in senior executive positions. However; in 2017; when the number of next-generation family members reached 85; Kamil and Tuncay began work on a governance structure they hoped would sustain the company when they left. Under their plan; family members would no longer be allowed to hold general management positions. As a result; Tuncay retired as CEO and other family members with senior executive roles resigned. A holding company was created to bring all the company’s subsidiaries under a common structure. And a process was created to allow some members of the two surviving families to hold board seats. Although the stock market reacted positively to the increased transparency brought about by the changes; it remains to be seen whether the new formula will achieve its goal of successfully transitioning the company from a family-managed business to professionally-run company.
Keywords: family-managed business; professionally-run company; second-generation; third-generation; governance; governance changes; succession planning; corporate culture; shareholders; board of directors; long-term sustainability; conglomerate; Family Business; Corporate Governance; Change Management; Management Succession; Leadership; Transition; Organizational Structure; Consumer Products Industry; Turkey; Central Asia; Middle East;

Citation:
Healy, Paul M., and Esel Y. Cekin. "Governance Transition at Anadolu Group." Harvard Business School Case 119-048, November 2018. View Details
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Case | HBS Case Collection | November 2018
Mellody Hobson at Ariel Investments
Francesca Gino, Lakshmi Ramarajan and Alison Wood Brooks
In 2018, Mellody Hobson, President of Ariel Investments, the largest minority-owned investment firm in the U.S., was considering how best to divide her time and use her position and personal characteristics to push for positive change at her firm and in society at large.
Keywords: female protagonist; African-American Protagonist; investment management; Leadership; Personal Development and Career; Work-Life Balance; Financial Services Industry; Chicago;

Citation:
Gino, Francesca, Lakshmi Ramarajan, and Alison Wood Brooks. "Mellody Hobson at Ariel Investments." Harvard Business School Case 419-041, November 2018. View Details
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Case | HBS Case Collection | October 2018
Zenefits Board of Directors (A)
Lynn S. Paine and Will Hurwitz
In early 2018, the time seemed right for Zenefits investor and director Lars Dalgaard to reflect on whether Zenefits had the right board of directors to shepherd the company through its next stages of growth. For the company whose name combined the words “benefits,” reflecting its human resources technology products, and “zen,” loosely defined as a state of calm, the past few years were not entirely zen. Once heralded as one of the fastest growing software start-ups ever, the 5-year old company quickly achieved “unicorn” status—a term given to an elite handful of privately-held start-ups valued at $1 billion or more. But leadership and legal issues that emerged in 2015 had threatened to undermine its success and compelled Zenefits to appoint new board members, hire new executives, reformulate its business model, and transform its corporate culture and philosophy. With those changes in place, Dalgaard now turned his attention once again to the board. Did Zenefits have the board it needed to navigate the next stages of growth as it sought to further distance itself from its rocky past and focus on its future potential?
Keywords: Ethics; Business Model; Corporate Accountability; Governing and Advisory Boards; Corporate Governance; Crisis Management; Entrepreneurship; Human Resources; Leadership; Risk Management; Venture Capital; Technology Industry; Telecommunications Industry; Information Technology Industry; United States; California;

Citation:
Paine, Lynn S., and Will Hurwitz. "Zenefits Board of Directors (A)." Harvard Business School Case 319-034, October 2018. View Details
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Case | HBS Case Collection | October 2018
Phuc Huynh and Teach for Vietnam (A)
Leslie Perlow and Eunice Eun
This Harvard Business School case is about Harvard Kennedy School graduate, Phuc Huynh, who wants to establish Teach for Vietnam (TFV) in his home country and become an official Teach for All partner. It considers the concepts of giving back in one’s career and the process of deciding whether to give up on a seemingly unattainable goal or whether to persevere and follow through on a dream, despite multiple obstacles.
Keywords: Vietnam; Asia; Giving Back; Career Decisions; Education; Social Entrepreneurship; Personal Development and Career; Mission and Purpose; Leadership Development; Education Industry; Viet Nam; Asia;

Citation:
Perlow, Leslie, and Eunice Eun. "Phuc Huynh and Teach for Vietnam (A)." Harvard Business School Case 419-036, October 2018. View Details
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Case | HBS Case Collection | October 2018
African Bank Investments Limited (A)
Lynn S. Paine and Will Hurwitz
Less than a year after joining the board of African Bank Investments Limited (ABIL), the newest director finds himself in difficult discussions with other directors about removing the struggling company’s CEO. The case is set in South Africa in mid-2014 as shares in ABIL, which traded on the Johannesburg Stock Exchange, are declining precipitously. The case describes ABIL’s origins and evolution, including the acquisition and growth of its wholly owned subsidiary African Bank, a provider of unsecured loans to help individuals pay for expenses such as vehicle repairs, home renovations, funeral costs, medical bills, and education. As ABIL’s profits rose and share price soared, it became the darling of analysts. However, when the South African economy turned sour, customers started defaulting on their loans, and ABIL and African Bank began to struggle. As ABIL’s stock price dropped, the management team faced difficult questions about the company’s lending practices, risk management processes, and plans to turn the business around. By 2014, the situation was grim, and pressure mounted from shareholders and market regulators for the board to take action. The case details the history of unsecured lending in South Africa, describes the regulatory, social, and legal contexts for the company and its business model, and explores the company’s unique corporate structure and executive and director dynamics.
Keywords: Ethics; Personal Finance; Corporate Accountability; Governing and Advisory Boards; Corporate Governance; Crisis Management; Insurance; Leadership; Management; Risk Management; Banking Industry; Financial Services Industry; Insurance Industry; Africa; South Africa;

Citation:
Paine, Lynn S., and Will Hurwitz. "African Bank Investments Limited (A)." Harvard Business School Case 319-052, October 2018. View Details
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Case | HBS Case Collection | October 2018 (Revised November 2018)
The Boston Beer Company: Managing the Bullwhip
Christina R. Wing and Marco Iansiti
Keywords: Beer/brewing industry; supply chain; succession; Leadership; Change; Supply Chain; United States;

Citation:
Wing, Christina R., and Marco Iansiti. "The Boston Beer Company: Managing the Bullwhip." Harvard Business School Case 619-021, October 2018. (Revised November 2018.) View Details
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Article | Management Science | October 2018
Strategy and the Strategist: How it Matters Who Develops the Strategy
Eric J. Van den Steen
This paper addresses primarily two questions. First, when (and why) should a company’s strategy be developed by its CEO versus by some outside analyst or other insider? Second, how does strategy interact with vision (in the sense of a strong belief about the right course of action)? The paper studies these questions using a functional definition of strategy as “the smallest set of choices to optimally guide other choices.” Among other things, the paper shows that strategy formulation by the CEO leads to both better strategy and better execution, and that a strategist’s vision may improve execution. In the process, the paper also identifies criteria that make a decision strategic and derives explanations why strategies often reflect the background of the strategist.
Keywords: strategy; strategy and leadership; strategy and execution; Strategy; Leadership;

Citation:
Van den Steen, Eric J. "Strategy and the Strategist: How it Matters Who Develops the Strategy." Management Science 64, no. 10 (October 2018): 4533–4551. View Details
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Case | HBS Case Collection | October 2018
Innovation at Uber: The Launch of Express POOL
Chiara Farronato, Alan MacCormack and Sarah Mehta
Set in March 2018, the case follows ride-sharing company Uber as it develops and launches a new product called Express POOL. This product offers a reduced price to riders willing to carpool, walk a short distance to/from their pick-up and drop-off points, and wait a few minutes before being matched to a driver. Two weeks after the launch of Express POOL in six U.S. cities, Uber’s product managers discover that if riders are made to wait five minutes to be matched to a driver—rather than the standard two minutes—rider cancellation rates increase, but Uber’s costs per ride are reduced. Together with data scientists, engineers, and product operations specialists, the product managers must decide whether to keep rider wait times at two minutes or increase wait times to five minutes in the six newly launched cities. The decision is complicated by the fact that Uber’s data science team normally places a five-week moratorium on changes to any new product, to allow robust data to be collected on its performance.
This case is paired with a supplementary dataset from Uber (courseware no. 619-702). In advance of the class discussion, students can analyze the data and draw their own conclusions about the trade-offs of maintaining the standard wait times or increasing them.
Keywords: Innovation and Management; Innovation Leadership; Innovation Strategy; Technological Innovation; Technology; Mobile Technology; Software; Technology Platform; Decision Making; Technology Industry; California; San Francisco;

Citation:
Farronato, Chiara, Alan MacCormack, and Sarah Mehta. "Innovation at Uber: The Launch of Express POOL." Harvard Business School Case 619-003, October 2018. View Details
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