Goizueta Effect

Emory University's Goizueta Business School

When you change your perspective you can change business for the better. Join us on Goizueta Effect to hear from leading faculty at the Goizueta Business School on the latest trends, research, and innovations in business, and find out how you can achieve more, do more, and create more in today’s ever-changing marketplace. read less
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Episodes

Climate Crossroads: Business, Innovation, and the Path to Net Zero
Apr 16 2024
Climate Crossroads: Business, Innovation, and the Path to Net Zero
Climate change is real and it’s worsening. Goizueta Business School’s Wes Longhofer and Cameron Bard join to discuss the business imperative for carbon neutrality – and how human creativity, technological progress, and a strong commitment to a sustainable future can drive us toward net zero. There’s no escaping it – climate change is real and it’s worsening. 2023 was by far the warmest year on record, and 2024 is predicted to be even hotter, marking 10 years of consecutive increases. Last year, ocean warming broke records, Arctic sea ice dropped to a record low, and climate-related disasters caused damages exceeding $92 billion dollars.  Wes Longhofer and Cameron Bard of Emory University’s Goizueta Business School join to discuss the role that business can and should play in helping our society transition to carbon-free sources of energy. We unpack the need for truly innovative large-scale ideas and investments, opportunities within developed and developing countries, global threats, and the challenge of pursuing clean energy initiatives while also respecting other environmental and social justice concerns.    Wes Longhofer is an associate professor of organization and management and the executive academic director of the Business & Society Institute at Goizueta. His research on climate change and energy systems has been featured in the Washington Post and Nature. He also serves on Emory's Climate Research Initiative Task Force, as well as Emory's Sustainability Visioning Committee.  Cameron Bard is a student in Goizueta’s Full-time MBA program. He serves as the President of the Goizueta Energy and CleanTech Association and is a Social Enterprise Fellow focusing on climate and sustainability. Post-graduation, he will work for Boston Consulting Group. Outside of class, he volunteers for the Georgia CleanTech Innovation Hub.  Understanding Climate Change Climate change is defined as the long-term alteration of temperature and weather patterns on Earth. Highlighting the pivotal role of human activities, such as the burning of fossil fuels, in these environmental shifts, the conversation points to the direct consequences we're facing: increasingly frequent and severe climate shocks that disrupt the natural balance of our planet.  The Energy Trilemma This trilemma refers to the complex challenge of balancing three critical aspects of energy policy: environmental sustainability, energy equity (affordability), and energy security. It underscores the difficulty of ensuring that future energy sources are not only carbon-free and sustainable to combat climate change but also affordable for communities worldwide and secure from the threats posed by geopolitical tensions and bad actors. In addition, it highlights the interplay between these dimensions in transitioning to a sustainable energy future, emphasizing the need for innovative solutions that address all three aspects simultaneously. Historical Context and Infrastructure Let’s look back at monumental projects like the massive hydroelectric dams constructed during the New Deal era, the creation of the interstate highway system in the 1950s, and the achievement of putting a man on the moon. These examples serve to illustrate the ambition and scale of past infrastructural endeavors, providing a benchmark for current efforts to transition to clean energy. However, there were several challenges these projects faced, such as the protests against the interstate highway system due to its impact on neighborhoods and local ecosystems, and the failure of certain dams and nuclear plants because of resistance from affected communities. The discussion suggests a path forward that respects local interests, protects the environment, and shares benefits equitably, aiming for a more thoughtful and comprehensive approach to developing modern sustainable infrastructure. Innovation and FOAK Projects The focus shifts to the importance of innovative ideas and first-of-a-kind (FOAK) projects in spearheading the energy transition. The deployment of advanced nuclear reactors and large-scale battery storage systems showcase how these FOAK projects are pivotal in overcoming the inherent challenges of reliability and storage faced by renewable energy sources, thereby accelerating the path towards a sustainable energy landscape.  The Pursuit of Clean Energy, While Respecting Other Environmental and Social Justice Concerns Specific instances, such as the opposition to the Lithium Americas mine at Thacker Pass in Nevada, illustrate how NIMBYism ("Not In My Backyard") and BANANA ("Build Absolutely Nothing Anywhere Near Anything") mentalities create significant roadblocks to essential renewable energy projects. Additional protests against the construction of wind farms and solar panels are discussed, where local communities' concerns over environmental and aesthetic impacts lead to delays or cancellations. These examples underscore the complex task of balancing the need for clean energy development with respecting local community values and environmental conservation. The conversation highlights the importance of engaging stakeholders early with transparent, inclusive decision-making processes to ensure energy equity and foster broader acceptance of renewable energy initiatives. Role of Businesses Towards Net Zero by 2050 The role of businesses in reaching net zero emissions by 2050 is crucial. By embracing sustainable practices, innovative finance, and investments in clean energy, companies contribute significantly to climate change mitigation and set standards for ethical business conduct. Despite the challenges lying ahead on the path to net zero, a quiet optimism persists, supported by our belief in human creativity, technological progress, and a strong commitment to a sustainable future. It’s a significant challenge, yet achievable with the business sector leading the way towards the goal of a net-zero world by 2050, demonstrating the essential balance between economic development and environmental care.  For those inspired to learn more, visit Goizueta’s Business & Society Institute for additional resources and information on the intersection of business with climate change, racial justice and inclusive economies. For more insights to equip you with the tools and perspectives to excel in your career, subscribe to the Goizueta Effect podcast.  This episode of the Goizueta Effect was co-created in partnership with MBA students and ClimateCAP delegates Sam Haber, Marco Zgliczynski, and Shweta Agrawal.
Your Political Strategy (or Lack Thereof) Could Make or Break Your Business
Feb 26 2024
Your Political Strategy (or Lack Thereof) Could Make or Break Your Business
As we enter an emotionally charged election filled with uncertainty, Emory University's Goizueta Business School professor Suhas Sridharan joins to discuss corporate political strategy. Learn from the transformative and tumultuous journeys of global giants like Uber and Facebook – and find out how navigating policy making and the regulatory landscape just may make or break your business.   Business and politics. Two huge institutions that are inseparably intertwined. As we enter an emotionally charged election year, businesses and individuals are speculating how political outcomes will impact their lives and the success of their organizations.  Suhas Sridharan joins to discuss how you can navigate political systems to achieve the mission of your organization, actions you can take to influence policy making and political outcomes, and how the regulatory landscape can make or break your business. We’ll also delve into the role that activists, interest groups and corporate social responsibility play in shaping your success. Suhas is an associate professor in Accounting at Emory University’s Goizueta Business School. Prior to this, she earned her PhD in business administration from Stanford University's Graduate School of Business. Her expertise has been featured in leading publications including the Wall Street Journal, Bloomberg, and Financial Times. Identifying Pivotal Politicians Suhas discusses strategies for identifying politicians pivotal to a company's mission, highlighting the use of data-driven tools to measure political ideologies. She offers the resource voteview.com as a starting point for exploration. When it comes to influencing these politicians, she discusses the merits of differing strategies, including reaching out to politicians that run counter to your strategies and convincing them to become allies versus connecting with politicians already aligned with your cause and encouraging them to use their networks and influence to support your objectives, the latter of which is known as sequential lobbying. Melanie and Suhas also delve into additional actions businesses can take to influence politicians and political outcomes. They discuss campaign finance, the role of PACs, and the misconception surrounding corporate contributions to political campaigns, where owners, employees, and families may contribute to these funds, but not corporations themselves.   The Revolving Door Strategy As Suhas elaborates on the value of board appointments, she emphasizes the benefits to corporations of hiring individuals with political experience to navigate regulatory environments, also known as the revolving door strategy. She touches on the power of industry-level cooperation and coalitions, such as trade associations, in influencing policy.  Expansion and Challenges of Uber Melanie and Suhas reflect on Uber's approach to navigating regulatory challenges and the timing of business actions in relation to political landscapes. Suhas begins by examining Uber's journey from a luxury black car service to the more ubiquitous UberX. She highlights the challenges Uber faced, particularly from entrenched taxi industries, and the importance of navigating regulatory landscapes in different markets.  Corporate Political Strategy The conversation shifts towards corporate political strategy, emphasizing the need for businesses to assess issues comprehensively, identify pivotal policymakers, and build coalitions effectively. Suhas stresses the adaptability of such strategies across local and global markets, underscoring the significance of understanding local cultures and contexts.  Facebook's Experience in India Using Facebook's experience in India as a case study, Suhas explores the complexities of expanding into emerging markets. She discusses Facebook's initiative, internet.org, aimed at providing internet access to one of the world’s largest markets, but facing backlash due to concerns over net neutrality and a lack of cultural awareness and understanding.  Activists and Interest Groups Suhas underscores the pivotal role of activists and interest groups in shaping policy agendas and influencing corporate decisions. She illustrates this with historical examples, such as Ralph Nader's impact on automobile safety regulations, and contemporary instances, such as boycotts affecting companies like Kyte Baby.  Corporate Social Responsibility (CSR) The conversation extends to CSR as a strategic imperative for businesses. Suhas explains how CSR initiatives, often driven by market demands, serve as a form of self-regulation, enabling companies to mitigate regulatory risks and enhance reputation. Suhas provides actionable insights for business leaders seeking to develop effective political strategies. She emphasizes the importance of issue identification, leveraging resources like media, lobbyists, and trade associations, and actively engaging with stakeholders to navigate complex political landscapes.  For more insights and success stories that equip you with the tools and perspectives to excel in your career, subscribe to the Goizueta Effect podcast.
Say Goodbye to Busy, Hello to Balance This New Year
Jan 4 2024
Say Goodbye to Busy, Hello to Balance This New Year
Join us as we explore the battle against busyness and ways to bring balance back to our lives. Emory University's Goizueta Business School’s Marina Cooley discusses the history of work/life balance, factors that have pushed us into overdrive, and steps that individuals and institutions can take to even the scale.  Marina Cooley is an assistant professor in the practice of Marketing at Goizueta Business School. Prior to joining Goizueta, Marina spent more than 15 years in strategic marketing roles at Coca-Cola and Lavva, and served as a management consult at IBM. A storyteller at heart, she has been featured in the New York Times and Yahoo Finance - and honored as one of Poets & Quants 40-under-40 Best MBA professors. Currently, she teaches a class on personal development to more than 800 undergraduate students each year, as well as a seminar on Life Design to MBA students.   The Overwhelming Nature of Busyness In researching busyness, Marina Cooley has found data showing an increase in leisure time in America. However, this data can be misleading and is only accurate when you look at data collectively. There is a large class of underemployed individuals who have lots of “leisure time” but may spend much of this time worrying about basic needs. Most highly educated individuals with well-paying jobs have little leisure time due to overcommitment. Marina shares that the discussion today will mostly focus on this "Harried Leisure Class” which is privileged but faces struggles with time management.    Factors Contributing to Busyness Marina identifies five key explanations for busyness: workism, parenting as a verb, the cult of self-improvement, the trend of side hustles, and the impact of social media. Acknowledging the societal privilege to address the issue of busyness, Marina discusses historical events that shaped the modern work landscape, such as the introduction of factory work hours, the eight-hour workday, the postwar era's focus on hobbies, and the introduction of massive corporate downsizing. She highlights the pivotal moment in the 1970s when a proposed bill for subsidized child care faced opposition, shaping the current struggle of parents to balance work and family responsibilities.  Marina's Personal Battle Against Busyness Marina shares personal experiences, illustrating the catch-22 of disposable income, where the pursuit of “more” leads to overcommitment and self-induced stress. Reflecting on her own journey, she emphasizes the need to align time spent with personal values, recognizing the negative impact of overcommitment on parenting and overall well-being.  The Importance of Balance and Leisure As a way to address systemic changes to support work-life balance, Marina advocates for subsidized child care, experimenting with shorter workweeks, creating mandatory periods of corporate email shutoff, and exploring workplace sabbaticals. She recognizes the evolving nature of work arrangements, citing the acceptance of hybrid work as a positive shift.  Teaching A Balanced Life Marina's class at Goizueta Business School teaches personal development as the key focus. The innovative zero-lecture strategy and practical exercises equip students with tools to understand and enhance their time management skills, encouraging a mindset shift towards valuing leisure for its intrinsic worth. Marina encourages the cultivation of joy through deliberate planning, challenging the cultural tendency to view leisure as something to be earned.  Personal Strategies for Finding Joy As she reflects on the pursuit of joy, Marina highlights the role of planning in creating uninterrupted leisure time. She encourages listeners to be mindful of their time choices, emphasizing the privilege of deciding how time is spent. Marina reflects on the power of saying no and gives a toast to a less harried and more balanced new year.  For more insights and success stories that equip you with the tools and perspectives to excel in your career, subscribe to the Goizueta Effect podcast.
Shop Small, Shop Local: Unwrapping the Impact of Micro-business
Nov 17 2023
Shop Small, Shop Local: Unwrapping the Impact of Micro-business
Dive into the fascinating world of micro-businesses and explore their remarkable impact on local economies and communities. Discover how these micro-businesses drive innovation, create employment opportunities, racial equity, and contribute to the overall economic landscape. Our guests Brian Goebel, Managing Director of The Business & Society Institute at Emory University’s Goizueta Business School and Mercedes Uzuegbunam, Heart Mercedes Founder share their insights into the stories and strategies behind microbusiness. Join us as we discuss the impact of these small but mighty enterprises, rethink intentionality in our shopping behaviors, and gain a deeper understanding of why small business is truly big. The Importance of MicrobusinessesBrian Goebel discusses how microbusinesses go beyond economic contributions to influence communities. They tailor products and services to the specific needs of their communities, creating a unique and personalized experience. They add cultural richness to communities. Despite their small size individually, their collective impact is significant. They play a crucial role in creating jobs, both directly and indirectly, and contribute to building wealth within communities. Professor Peter Roberts has additional research on microbusiness impact. Additionally, the Association for Enterprise Opportunity (AEO) Bigger Than You Think Report provides helpful insights.  Start:ME: Supporting MicrobusinessesBrian discusses Start:ME, a micro-business accelerator program, operating in underserved communities across metro Atlanta that has served nearly 400 micro-businesses over the last 10 years. The program focuses on supporting businesses to start, grow, and thrive. Follow @StartMeATL on Instagram. Brian and Mercedes also share more about the work of other entrepreneur support organizations in Atlanta including Goodie Nation, Village Micro Fund, The Village Market, Russell Innovation Center for Entrepreneurs, and Women’s Entrepreneurship Initiative (WEI).Journey to Heart MercedesMercedes Uzuegbunam, Start:ME alum and coordinator discusses her journey to launch Heart Mercedes, a statement jewelry line for the whole family. She discusses how it evolved organically, driven by her passion for art and a desire to give back to the community. She shares how Start:ME played a crucial role in her transition from artist to a business owner and her decision to support other entrepreneurs.  Mercedes emphasizes the importance of authenticity in her brand and how her values show up in her business. She engages the community in “random acts of kindness” such as organizing pop-up art classes in schools, contributing to creative expression in children and enhancing community well-being. Follow @HeartMercedes on Instagram.Addressing Poverty and Racial Equity Brian sheds light on how micro-businesses play a role in providing pathways for families to exit poverty, however he cautions that poverty is a systemic issue that entrepreneurship alone cannot solve. Micro-businesses contribute significantly to household income and offer flexibility to entrepreneurs, enabling them to leverage their passions and skills. In reference to economic equity, Brian highlights the racial wealth gap and emphasizes the need for intentional support, ensuring entrepreneurs from underserved communities have access to knowledge, networks, and capital. He also advocates for policy considerations as crucial aspects in creating an equitable environment. Brian highlights several thought leaders and organizations doing great work in the Atlanta area on this topic and references the Atlanta Wealth Building Initiative (AWBI) along with the Partnership for Southern Equity (PSE) as a great starting point to understand the dynamics of Atlanta.Reference: The Atlanta Wealth Building Initiative (AWBI)  Building a Beloved Economy Spending with IntentionMercedes and Brian highlight the significance of researching where to spend your money, aligning your choices with personal values, and the impact that can create. The idea of "Shop Small, Shop Local" is more than a slogan; it's about investing in the community, creating personal connections, and leaving a positive impact. Mercedes emphasizes the value of leaving a positive legacy through intentional and supportive actions. Brian also underlines the role that companies can play in driving impact through intentional procurement initiatives. Taking ActionBrian concludes by inviting listeners to get involved by making mindful choices regarding where they shop and how they invest their time. He invites listeners to support micro-businesses through purchases from the Start:ME shopping guide and volunteering as a Start:ME business mentor. He highlights several organizations working towards economic equity and encourages individuals to get informed about challenges and take collective action for a better, more prosperous community.  Thank you to our guests, Brian Goebel and Mercedes Uzuegbunam, for sharing their insights and experiences. Join us in supporting micro-businesses and making intentional choices that positively impact our communities.
Making The Jump To Entrepreneurship
Oct 5 2023
Making The Jump To Entrepreneurship
Do you have a secret desire to venture into entrepreneurship? In this episode, we unveil stories and strategies on making the jump into entrepreneurship. Our guests Brian Cayce, Managing Director of The Roberto C. Goizueta Center for Entrepreneurship & Innovation and Andrew Rodbell, co-founder of Post Meridiem, the first line of cocktails disrupting the alcoholic ready-to-drink market in the US, share their personal insights on the process.  We explore the mindset shifts required to transition from the corporate environment to the unpredictable world of startups. Get ready to uncover techniques for identifying business opportunities, building your network, and acquiring the essential skills needed to succeed as an entrepreneur.Transitioning from Corporate to EntrepreneurshipAndrew Rodbell's journey from corporate America to entrepreneurship unfolds in this podcast episode. His post-MBA career in brand management at Coca-Cola equipped him with valuable skills, setting the stage for his entrepreneurial venture. In 2017, driven by growth potential, Andrew and a friend disrupted the ready-to-drink alcoholic category.Mindset Shifts in EntrepreneurshipExploring the shift in mindset when moving from corporate to entrepreneurship, Andrew emphasizes newfound autonomy. He navigated decision-making independently, embraced hands-on learning, and acknowledged the emotional rollercoaster that entrepreneurship entails. Challenges in EntrepreneurshipBrian Cayce, Director of the Center for Entrepreneurship and Innovation, discusses common challenges aspiring entrepreneurs face. Financial hurdles, including debt and the salary vs. startup income trade-off, are primary concerns. Brian recommends budgeting for a trial period and factoring in externalities like mental health and personal well-being. Brian and Andrew then go on to differentiate between high-growth and lifestyle businesses.Key Skills for Entrepreneurial SuccessBrian elaborates on essential skills for prospective entrepreneurs. A willingness to adapt, embrace diverse tasks, and maintain a growth mindset are crucial attributes. He stresses the importance of a strong work ethic, open-mindedness, and adaptability.Explore Funding StrategiesAndrew and Brian stress the significance of exploring diverse funding avenues for startups. Brian draws from his venture capitalist background to outline the downsides of traditional venture capital, characterized by high expectations and pressures. They advocate for various capital sources with different return profiles that align with the business vision. Andrew recounts his experience of self-funding, emphasizing the importance of de-risking investments through successful pilot phases.Evaluating OpportunitiesAndrew and Brian underscore the importance of differentiation when evaluating business opportunities. A unique product or service can be a competitive advantage. They discuss the value of prototyping and gathering feedback from distributors, retailers, and consumers. Brian emphasizes identifying the right wave of opportunity and learning from others, even from younger generations.Embracing FailureThe conversation shifts to the topic of failure in entrepreneurship. Brian reflects on his venture capital experience, acknowledging that most startups do fail. However, he highlights the importance of learning from these failures and establishing feedback mechanisms for continuous improvement.Building a Network of Support and ResourcesBoth Andrew and Brian emphasize the value of networking within the startup ecosystem. Mentors, advisors, and peers can provide essential guidance and support. They encourage proactive networking and mentorship-seeking. Brian discusses the role of the Center for Entrepreneurship at Goizueta Business School in supporting students and alumni interested in entrepreneurship.Handling Risk Aversion from Loved Ones & NaysayersAndrew addresses concerns from friends and family regarding entrepreneurship's risks. He advises confidence in one's ideas, data-driven proof of concepts, and developing resilience to skepticism. Brian adds that challenges and questions can lead to refining ideas and making informed decisions. Andrew encourages those with a desire for entrepreneurship to take the leap, provided they align their circumstances to support it.In this episode, listeners gain valuable insights into entrepreneurship, funding strategies, risk management, and the importance of networking and mentorship. Andrew and Brian's experiences serve as valuable lessons for anyone looking to embark on their entrepreneurial journey.
Secrets To Career Switching And Success In The Job Market
Aug 31 2023
Secrets To Career Switching And Success In The Job Market
Switching careers is a pivotal journey that many professionals undertake. It's more intricate than simply landing a new job—it's a transformative process that demands strategic navigation. In this episode we uncover the secrets to career switching success with our guests, Danielle Rubenstein and Chantal McMahon. They shed light on this transformative process from different perspectives. Danielle, a senior director of career management, brings her expertise, while Chantal, a finance leader at Intuitive Surgical, shares her firsthand experiences of navigating career transitions. Together, we unveil the challenges, strategies, and invaluable insights that empower listeners to forge new career paths.Challenges of Career Switching & The Intentional PivotThe journey of career switching is multifaceted, requiring understanding of aspirations and experience building in new domains. Self-awareness, adaptability, and deliberate intentionality are paramount. The focus lies on intentional pivots, grounded in self-assessment rather than idealized notions, fostering success.Success Story: Chantal's Career Switching JourneyChantal's inspirational journey spans R&D and medical technologies to finance leadership. Networking, mentorship, and active exploration play pivotal roles. Embracing uncertainty, strength assessment, and continuous exploration form the bedrock of her advice.The Power of Redefined “Networking”The mystique of networking is unveiled, redefined as relationship-building and knowledge-sharing. Overcoming being perceived as disingenuousness and fears of approaching strangers is addressed. Beyond immediate job gains, networking offers profound benefits. Practical tips and resources for enhancing networking skills are provided.Building Resilience - Reframing Rejection and SetbacksThe emotional toll of rejection and setbacks is acknowledged yet reframed. Danielle emphasizes that rejection doesn't define an individual's worth. Chantal's journey underscores the importance of persistence and learning from rejections. The emphasis is on focusing on one's true strengths and value, while maintaining objectivity.Leveraging Self-Reflection and Skill EvaluationChantal encourages listeners to assess their past experiences. Understanding what energizes and drains them facilitates informed career decisions. The value of deliberate self-reflection is highlighted.Personal Branding's Complex DynamicsPersonal branding's dual nature is discussed while emphasizing the importance of conveying value and skills that align with the target role. Both guests emphasize refining one's narrative through practice and adapting the "talk track" based on feedback.Thank you for joining us in this enlightening episode. As you navigate the intricate path of career switching, remember that each challenge is a stepping stone to growth and learning. For more insights and success stories that equip you with the tools and perspectives to flourish in your career journey, subscribe to our podcast.
Innovation in a Climate-Smart World
Apr 19 2023
Innovation in a Climate-Smart World
Last year alone, 10 climate-related disasters displaced millions of people with damages exceeding $3B. The time to act is now. Goizueta’s Wes Longhofer and Danni Dong join to discuss the role of business and innovation in a climate-smart world.  The past eight years have been the warmest on record, with sea levels are rising twice as fast as they were three decades ago. Often, when we think of innovation we think too narrowly - new technologies, products, or services. However, in tackling a problem as pervasive and complex as climate change, our approach in the business world needs to be broader, more holistic. We’ll talk today about the three pillars of business innovation in a climate-smart world:technology,business models, andeducation. Wesley Longhofer is an associate professor of organization and management and the Executive Academic Director of Goizueta’s Business & Society Institute. His work on climate change has been funded by the National Science Foundation and featured in the Washington Post and Nature. His most recent co-authored book, Super Polluters: Targeting the World’s Largest Sites of Climate Disrupting Emissions, was published by Columbia University Press in 2020. Wes is also a member of the recently launched Emory Climate Research Initiative. Danni Dong is a dual degree graduate student at Emory pursuing her MBA and MSPH at Goizueta Business School and Rollins School of Public Health. Danni is a passionate activist working to tackle climate challenge through public private partnerships. She has worked with several governmental agencies including the Atlanta Housing Authority, Environmental Protection Agency, and Centers for Disease Control and Prevention. Danni recently attended the United Nations Climate Conference in Egypt as a student ambassador with Emory Climate Talks. This episode of the Goizueta Effect podcast was co-created in partnership with Goizueta MBA students and ClimateCAP delegates including Danni Dong, Nikhil Mathur, Jimmy John, and Peter Danis.  A delegation of 11 MBA students from Goizueta Business School recently attended the ClimateCAP Global Summit. Along with hundreds of leading students and professionals from across the nation, they explored the enormous influence and responsibility business leaders hold in driving toward a climate-smart world. Want more insights? Check out #GoizuetaClimateSmart.   What is the Circular Economy? The concept of a circular economy came about as an alternative to the traditional “take-make-waste” model. The circular economy involves designing products and systems that are efficient, durable, and easy to repair, refurbish, or recycle.   Companies like Patagonia and FairPhone have successfully implemented circular strategies, incorporating buyback programs, refurbished goods, and modular products that can be partially upgraded to lengthen their useful life. These strategies not only benefit the planet, but also create customer loyalty and competitive advantage.   First It Was Shareholder vs. Stakeholder Capitalism. Now There Are “Multi-Stakeholders”? A newer way of thinking has come about recently, focusing on the importance of the multi-stakeholder approach in business. Central to this concept is considering the interests of all parties affected by a company's actions, including employees, customers, suppliers, communities, and the environment. Communities are demanding that companies create more value for society than they extract, and the environment is also considered a stakeholder due to the impact of climate change on businesses.   By considering multi-stakeholders, the true cost of climate change is clearer. From recent flooding in Pakistan to the longest recorded drought in Eastern Africa, it is apparent that the environment is a key stakeholder that needs to be considered. Natural disasters triggered by climate change have resulted in $3 trillion worth of economic losses between 2010 and 2020. Companies must take a multi-stakeholder approach to mitigate these risks and account for the impact of their operations.   How Can Innovation Combat Climate Change? Green hydrogen is a promising alternative fuel option for companies looking to reduce their carbon footprint. Companies like Siemens Energy and NextEra Energy are investing heavily in green hydrogen technologies to reach zero emissions without offsets. Widespread adoption of green hydrogen is seen as necessary to compete with natural gas.  Likewise, how we move goods around the planet is an area that can be reconsidered to benefit the planet. Following the pandemic and the realization of fragile supply chains, there is now a shift in the US to reign in supply chains and bring them nearshore or even back onshore. This prompted the passage of the CHIPS Act which focuses on semiconductor manufacturing, but also spurred other industries to consider bringing operations closer to home. Such a shift from offshoring to onshoring could significantly decrease emissions from maritime and aviation shipping, which together currently accounts for more than 20% of global emissions.  What Role Does the Government Play? Th...
In Corporate Valuation, Customers are King
Sep 29 2022
In Corporate Valuation, Customers are King
In 2021, initial public offerings (or IPOs) hit an all-time record with 1,000 companies entering the scene, more the doubling the previous year. From investors to managers to board members, business leaders need to understand the true value of companies, but many of the traditional valuation methods are outdated and incomplete. With increasing access to new data, astute forecasters are deploying new methodologies. Among these is customer-based corporate valuation, a field “equal parts marketing and Wall Street” with a central focus on how customer behavior drives success.  Dan McCarthy joins to discuss customer-based corporate valuation, including which customer data points are most important to monitor and how investors and managers stand to benefit from this approach.  Dan is an Assistant Professor of Marketing at Goizueta Business School. His research centers on customer lifetime value, limited data problems, data privacy, and the marketing-finance interface. He is regularly featured as a key expert, with recent coverage in the Harvard Business Review, Wall Street Journal, Fortune, the Economist, and CNBC. Corporate Valuation as a New Approach to Forecasting Until now, evaluating firms has been a question of forecasting future revenues off of past revenues. Customer-based corporate valuation (CBCV) entails looking at data regarding the flow of customer acquisitions over time.  The model consists of four interlocking submodels governing how each customer of a firm will behave. They are: the customer acquisition model, which forecasts the inflow of new customers the customer retention model, which forecasts how long customers will remain active the purchase model, which forecasts how frequently customers will transact with a firm the basket-size model, which forecasts how much customers spend per purchase  Using this data, predictive models for customer behavior produce forecasts – of revenues, as well as marketing expenses and ultimately cash flows. It’s Wall Street meets marketing.  A Perfect Mix of Finance, Statistics, and Marketing McCarthy is the founder of two predictive customer analytics companies, one of which was acquired by Nike in 2018. Along with Peter Fader at Wharton, he has spent countless hours studying and working to refine CBCV over the last several years. His journey into this method combines many of his passions, including finance, statistics, and marketing.    He shares that predictive and analytical tools, such as his CBCV, can be adapted for a multitude of uses for a variety of audiences, including investors, managers, CEOs, and marketing departments. Those business leaders with access to heavy data can receive detailed predictive information that can be leveraged for future decision making. It isn’t as simple as, “this is how we will perform”, but rather, McCarthy’s tool allows companies to understand the pieces that make them thrive. They can then use this information, such as which customers are more valuable or which marketing tactic is working best, to progress the company and drive growth. This approach, he says, is more of a value management task rather than a value measurement task.   Even amateur investors with statistical aptitude can apply this approach. McCarthy shares the following Excel spreadsheet to make predictions for subscription-based firms.   Corporate Valuation with Movie Pass and Wayfair McCarthy applies the CBCV methodology across industries. He recently evaluated the new three-tier system that Movie Pass implemented earlier this year. MoviePass skyrocketed in popularity in 2018 after it lowered its monthly subscription to $10, garnering 3 million subscribers. But it wasn't sustainable. After burning through hundreds of millions of dollars, MoviePass shut down in 2019 and its parent companies filed for bankruptcy in 2020. Now, Movie Pass just re-launched on Labor Day with a three-tiered payment system. So, what does McCarthy predict? In short, he shares, they likely won’t “lose money as quickly”. He predicts that most customers will head for the cheapest option available as they have already experienced this company’s market adoption. It's the proverbial free lunch. The national average price of movie tickets is approximately $10. So if the cost of the subscription is $10, then as long as someone buys one movie, the company's going to lose money.   McCarthy’s work with ecommerce furniture site Wayfair also underscores the importance of understanding consumer behaviors to accurately interpret company financials. Though its revenue has grown very quickly, he says, there remains a very low margin for profit. A deeper look into consumer behaviors shows that Wayfair has high customer acquisition costs, yet these customers are rarely repeat purchasers. Though the company had been struggling, the COVID-19 pandemic forced buyers into their homes exclusively, and heads turned to ecommerce platforms such as Wayfair. This change helped the company sustain itself for a short period, but it is now realizing the harsh reality of its flawed marketing tactics once again.   Standardization of Data and Definitions One of the biggest challenges that CBCV faces is the disclosure of fully accurate and thorough data, or rather, the lack thereof. Companies are often reluctant to disclose data that may make them look bad, limiting the data sets predictive models can work with. Standardization of industry terminology is also a challenge, because different firms utilize different definitions, and this can lead to the misinterpretation of data. As investors apply pressure, standards are slowly forming. While he recognizes the challenges, McCarthy is hopeful we can converge on “industry specific, informal standards”.  Up Next for Dan McCarthy McCarthy is enthusiastic about what’s in store as he continues to refine predictive data models. He looks forward to applying artificial intelligence and other deep learning models to this work. He is grateful to Kyeongbin Kim, PhD candidate in marketing at Goizueta, for her transformational research in this space.   To learn more about Goizueta Business School and how principled leaders are positively influencing business and society, visit www.goizueta.emory.edu.
Ready for Career Growth? Advocates are Key!
Aug 30 2022
Ready for Career Growth? Advocates are Key!
Career advocates are critical to career growth. In fact, employees with advocates are 23% more likely to advance at work. However, many people assume that their success is based purely on capability.   Renée Dye joins to discuss the key role and critical attributes of advocates, how you can cultivate and attract influential players to meet your goals, and the impact of remote work on relationship management and organizational culture.Renée is an associate professor in the practice of Organization & Management at Emory University’s Goizueta Business School. Prior to this role, she served in McKinsey’s Global Strategy practice for more than 12 years and as chief strategy & innovation officer for Navigant. Her expertise has been featured in leading publications, including the Harvard Business Review, McKinsey Quarterly, and Fortune.  Organizational Politics: A Big Challenge for New & Emerging Leaders  During a recent survey of MBA graduates at Goizueta, Dye uncovered a startling insight. Of the many challenges new and emerging leaders face, these graduates felt least equipped to navigate organizational politics. She encourages universities to add curriculum around this topic–and devotes an entire class to this area to support her students. It takes more than strategies and skillsets to propel yourself to the C-suite; career advocates and champions are key.    Organizations are Not Meritocracies While organizations are not meritocracies, many workers and students feel that career success is predicated purely on capability. Dye shares that excellence is critically important, but it’s not enough. Relationship management is a crucial skill everyone should cultivate.   Research shows that employees with advocates are 23% more likely to advance at work. So, what should you look for in a career advocate?  Mentors vs. Advocates Mentors and advocates are both important for career growth, but the set of attributes necessary for each varies. A mentor is a personal coach that provides a safe place to share. You can go to this person with no fear of judgement or consequence. You can be completely transparent and open about mistakes. On the other hand, an advocate needs to be above you vertically in your own or outside of your organization. They have likely been in the job market longer than you, have accumulated more experience, and can open doors for you. They are in a position of authority and have political power. They also need to have a deep and abiding faith in you and what you can achieve. They know you are not going to let them down.   Common Mistakes in Identifying Advocates  The most common mistake that employees make, particularly underrepresented individuals, is assuming that an advocate needs to look like them. It can be human nature to search for advocates of your same race and gender, but this can greatly limit your pool of potential advocates. Instead focus on your fit in other areas. Do you share similar personalities? Do you approach problems in a like-minded way? Do you have shared interests?  The Advocacy Value Proposition  When you are working with an advocate, their credibility is on the line. They have worked hard to advance in their career and have accumulated social, political, and relational capital along the way. For them to take you on, you must prove that you will add to their store of capital rather than deplete it.   So, what can you do to make it a mutually beneficial relationship?  First off, do excellent work. You will not even be considered unless you always bring your A-game.  Next, make yourself indispensable to your potential advocate. It’s important to note that this does not have to be in the confines of your job description. For example, if they support a nonprofit that is near and dear to their heart, support their work on the board, chair a committee, and get involved. Leaders appreciate this effort because it shows that you're not just in it for a narrow job evaluation, but that you are committed for the long haul.  Show gratitude. Individuals want to know they're making a difference in your life. Communicate gratitude in a heartfelt and thorough way to cement your advocacy value proposition. Remote Work & Career Growth In recent years, we've seen a major shift in employer policies surrounding remote work. Surveys show that workers are eager to embrace the flexibility of this approach, but there are costs to working off site, including diluted company culture and waning employee engagement.   Younger workers benefit most from in-office culture because they are exposed to advocates and can participate as apprentices. It’s very difficult to cultivate a relationship with an advocate remotely, and the exchange can feel transactional. For older employees who have built relationships for decades, remote work may not impact career trajectory; however, while it may seem attractive, you’re not giving back to the younger generation through the advocacy and apprenticeship that you enjoyed earlier in your career.     To learn more about Goizueta Business School and how principled leaders are driving positive change in business and society, visit www.goizueta.emory.edu.
Partnering with the Frenemy
Jul 28 2022
Partnering with the Frenemy
Corporate partnerships can serve to expand the pie of joint benefits, improve profits, and gain sustainable competition, but successful partnerships don't often last or come easy. Despite the good intentions of both parties, partnerships often don’t pan-out as intended which leaves both sides frustrated and unable to reach their full potential together.Sandy Jap joins the Goizueta Effect Podcast to discuss frenemies in business, including how you can take your partnerships to the next level. She is a Sarah Beth Brown Professor of Marketing at Emory University's Goizueta Business School. Prior to this, she held faculty positions at MIT's Sloan School of Management and the University of Pennsylvania's, the Wharton School. She has published widely on topics such as strategic partnering and organizational relationships, go-to market strategies, and e-procurement. She is the author of Partnering with a Frenemy, a book on the dark side of business relationships. Her work has been featured in the Wall Street Journal, CFO Magazine, and Harvard Business Review.This episode of the Goizueta Effect was co-created in partnership with Emory student Scott Masterson. A Successful Partnership Partnerships are exceedingly important in today’s competitive business environment. A successful partnership often creates a “1 + 1 = 3” scenario: an outcome where both companies are better off collaborating than existing separately.  Common Partnerships Business collaboration comes in many forms. Most simply, you can think of manufacturers working with distributors, distributors with wholesalers, and retailers with suppliers.  All distribution activity in the US accounts for over $3 trillion or about 30% of our nominal GDP. In essence, the sales activities that happen between firms that are often the basis of partnerships represent a huge amount of money in our nation and our economy. If there is such a great incentive for upholding the “1 + 1 = 3” principle, then why are partnerships so difficult to maintain? A Not-So Successful Partnership “Frenemies” Once harmonious partners often become frenemies – organizations that pretend to be friends, but that are also enemies and/or rivals.At the beginning of a partnership, often both parties get a lot out of collaboration, but many times this dynamic turns a corner and starts to unravel. The souring process can be rapid or lengthy. For example, Google and Samsung have collaborated for years to maintain a large market share in the cell phone market: Google provides the operating software for the cell phones, while Samsung is the manufacturer of the phone itself. The partnership resulted in beating Apple in market share handily; however, as the partnership became more successful, it bred dependence between the two companies.  Samsung worried that Google might become too strong and that they, as a partner, might desire a larger share of the pie. At the same time, both partners realized they were heavily dependent on the other. To combat this dependence, firms will often do something called counterbalancing. They will try to push back on the feeling of dependence by doing something that makes them feel like they have power.  In the case of Samsung and Google, Samsung began developing an operating system known as Tizen and Google purchased Motorola...and thus, the unraveling began.  Partnership Life Cycles  When academics discuss life cycles, they are talking about how something unfolds over time. In terms of partnerships, typically, a life cycle will have distinct phases that describe the status of how two firms feel about one another. The Awareness Phase In this first phase, two firms become aware of each other and might get to know each other by engaging in small-scale collaboration. The awareness phase often goes well, and there is little at stake for both parties if one were to disengage from the other.  The Buildup Phase The second phase is all about increasing the connection between the two companies. There may be more monetary transactions taking place between the firms and more sharing of knowledge.  The Mature Phase After the buildup phase, companies often get a gauge of optimal interaction and prefer to remain constant at that level. Firms will have stable transactions over a period without one firm encroaching upon the other’s territory. In this phase, both firms are reaping the greatest rewards from collaboration, and fluidly interacting for mutual benefit.  The Dissolution Phase The last phase occurs when one firm’s growth flattens out. Firms grow suspicious of one another and oftentimes pull back because the benefit isn’t as fruitful or apparent as it once was.   Building Rapport: Helpful or Harmful While building rapport is essential and can grease the wheels of a partnership, you can have too much of a good thing. Sometimes rapport between partners can lead them to make irrational economic choices, throw their clients under the bus, and even discard their morals.  In a recent study, Sandy Jap, Goizueta marketing professor Ryan Hamilton, and Wharton professor Diana Robertson were interested in analyzing the relationship between a buyer and a seller. Most often we think that negotiations should begin by building rapport; however, sometimes focusing too heavily on creating a sound relationship with the person with whom you are partnering may not be in your or your client’s best interest. The experiment used the common Bullard Houses framework, where negotiators attempt to make a deal between a condo owner and a potential purchaser- a deal that using sound negotiating practices should end at an impasse. What Jap and her team found was that when you build rapport, you and your partner may become so overtaken with the importance of building the relationship that's right in front of you that you'll prioritize that relationship over the requests of the client who may not be present. Instead of accepting an impasse, you will move forward with less-than-optimal terms. In fact, at times, the study reported negotiators engaging in unethical behaviors such as lying to one another, misrepresenting details, and over-promising just to appease the other person. Ultimately, the result of these behaviors was that the client’s best interests were compromised.  Tips to Preserving Partnerships: Extending the Mature Phase The Building Blocks Ultimately, organizations are made up of people. We can think of the relationships between people as the building blocks for what's happening at an organizational level. In partnerships, relationships need healthy frequency, a controlled amount of positive rapport, and an appropriate level of clarity in mutually beneficial goals. Relationships at any level take effort from both sides – and this is true for businesses too.  Safeguard Interests Partners can use several tools to en...
From C-Suite to Me-Suite
Jun 28 2022
From C-Suite to Me-Suite
You’re a high performer who wants a career on your own terms. Maybe you’re exploring the best next step? Maybe you feel stuck? Maybe you want more? No matter where you are right now, you need options. When you have options, you’re in control. It may be time to change your mindset from C-Suite to Me-Suite. A well-planned strategy can help you answer the question: “How can I achieve the pinnacle of my career and have a life I cherish, too?”. Donna Peters joins the Goizueta Effect Podcast to discuss strategies for career-driven individuals who want more out of their work and life. She is an adjunct lecturer for Emory University’s Goizueta Business School’s Executive MBA program where she teaches healthy career-growing strategies. She is the founder and CEO of a career coaching organization, The Me-Suite. Her book, Options Are Power, helps high performers understand how the pursuit of their next career success, and a focus on a healthy lifestyle, are inextricably intertwined.  This episode of the Goizueta Effect was co-created in partnership with Emory student Scott Masterson. The “Me-Suite” Mindset Defined In most businesses, the C-Suite is composed of key positions including the chief executive officer, chief financial officer, and chief marketing officer. Among top priorities, these leaders handle three core duties: They marshal the core values of the company, keep the day-to-day operations running smoothly, and stay fresh and relevant for the future of the organization. When looking to lead our fullest lives, we should be thinking as C-suite leaders.   Peters developed this idea while on a business trip and has lived by it ever since. Like the C-Suite, we all need core values, a definition of primacy for ourselves (a sense of what is most important at any given time), a financial plan, a personal brand, relationships, an understanding of skills and strengths, and care for physical and mental health.  Usually, a company has one executive to oversee one specific area -- we should try to think like each of those executives across different scenarios given our lives are riddled with micro and macro decisions, like a business.  Components of the Me-Suite Mindset  Thinking Like a C-Suite: Companies that Lead by their Core Values Airbnb has a core value of “accessibility of home” which creates a warm place of family-like interaction. When the refugee crisis was peaking over this last year, Airbnb started offering free housing to refugees. It was an example of how the core value of the company as a moneymaker was also being used to say, "But this is who we are. And this is what we do. I'm not changing my company and my values. I'm just applying the value in a different situation. Still staying true to the core value of the company."  Airbnb’s decision directly aligned with its positive core values. Companies actively make these decisions since core values are the foundation holding their business up.  Primacy: Not Everything is of Equal Importance When at a crossroads between choices consider asking yourself, “What matters the most right now?” For example, you may need to decide between salary and title, or salary and company reputation. You need to decide which aspects matter more to you in that moment.  While high performers want to achieve, they often always say “yes” to everything. Primacy can provide a great guide in learning to say “no”.  Developing Your Personal Brand in a Remote Working Environment  We have a personal brand whether we like it or not and we need to own it. Develop your brand so it signals what you want to attract.  Think about the mediums you have access to online: What does your LinkedIn profile say about you? What about your punctuality to online zoom meetings? On your screen, what’s behind you and how are you dressed while on call? It’s all up to you and there are no wrong answers if each decision is intentional.  Relationships and Networking: It’s Necessary and More Natural than You May Think People often describe networking as “slimy.” Think of it as a bank account: we’re constantly making deposits and withdrawals by helping one another.  Connections can also be characterized like a temperature on a thermometer; hot, those who will respond to you in 20 minutes with an emoji; room-temperature, people you may have just met or you connected with on LinkedIn because you went to the same university; to frozen, unfortunate relationships that are not helpful to you. Networking is crucial in creating powerful options that you can draw from. Understanding where your connections fall on the temperature scale is a great first step. Career Phases: The Different Career Personas Careers are incredibly dynamic, and individuals face different choices and challenges along the way. The Me-Suite mindset helps us understand ourselves better so that we can navigate these fluctuations and understand which persona(s) we fall under at a given time. When you look in the mirror, what do you see? The vast majority of individuals fall into three personas: Exploration Erica, Crossroads K.T., or Hamster Wheel Hank. Each can be described with thoughts that come to mind if one of the personas were to look in the mirror: Exploration Erica thinks, “I want more out of my career.” Crossroads K.T struggles between choices, "I must now make a big decision. I've got to decide. Do I stay inside this industry? Change industries? Do I go back to school?" And Hamster Wheel Hank may think, "I'm stuck. I don't know where to turn. I'm not sure what my options may be. But whatever it is, this isn't it." Throughout your career you may experience any one of these for any amount of time. By acquiring options and strategizing like a C-Suite leader, you can reach an understanding of how to address them and adapt.  “Options are Power” When we feel trapped, neurological research shows that the amygdala activates a variety of negative responses. In response to the feeling that we don't have options or when we are paralyzed by choices, the amygdala increases cortisol in the body, which has a stress-inducing effect. It can impact the quality of our sleep. If it goes to extremes, it can have outcomes of anxiety and depression. Like an options contract in investing, options in this context give us the right, but not the obligation, to make a change in our life. Being a Hamster Wheel Hank is never a great feeling. That’s when possessing the Me-Suite mindset comes in handy.  Assessing if your current life decisions align with your personal core values allows you to determine if you’re where you should and want to be. Likewise, if you’re at a crossroads in your career, you may consider your own personal brand and which decision aligns most with your next step.   To ease decision-making, ask yourself the following questions: “Does what I’m doing support my core values? Does this decision align with my personal brand?” The process will reduce stress, clear your mind, and boost your decision...
The Journey of an Idea
May 23 2022
The Journey of an Idea
When CEOs are asked, "What is a skill you most value in your people?" time and again, creativity, problem-solving, and innovation top their list. However, according to Ad Age, 75% of people believe they are not living up to their creative potential.  It’s easy to see why. It can be a long slog from initial concept to final product. Even in organizations that pride themselves on rapid iteration and experimentation, most truly novel ideas either stall out or lose their originality along the way. How do you defy those odds? Jill Perry-Smith joined the Goizueta Effect Podcast to discuss creativity and how businesses can take ideas from the mind to the marketplace. She is a professor at Emory University’s Goizueta Business School where she has researched the intersection of creativity, innovation, and business for nearly 20 years. She received her PhD in organizational behavior from the College of Management at the Georgia Institute of Technology, has consulted numerous Fortune 100 companies, and has been featured in the Harvard Business Review, CNN, and Fast Company. This episode of the Goizueta Effect was co-created in partnership with Emory student Scott Masterson. Can You Learn Creativity? Similar to the question, “are leaders born or made?,” creativity may come naturally for some, but everyone has the capacity to develop a creative skillset. Nowadays, the workplace is more flexible than ever before. Creativity is rewarded and encouraged in the most successful firms.  Harnessing a Broader Definition Typically, when we think of creativity, we think of artistic expression. In the workplace we think of breakthroughs in technology, but some of the most important creativity has to do with creative problem-solving.  The Process of Creating an Idea   One fundamental way of studying the journey on an idea is categorizing the different phases that an idea goes through from the time the idea is birthed to the time when the idea is implemented.  The journey an idea takes isn’t always linear: ideas have a bumpy journey. The ideas may cycle backward several steps in the process after months of planning. Creators may get less confident in their idea and be less willing to take the risk and put it forward. They must also deal with an onslaught of input and valuable feedback from others along the way, which lengthens the process. Alongside such a complex process, the novelty often gets snuffed out of the essence of the idea. The Phases of the Idea Journey: With Whom Should I Collaborate? Each phase of the idea journey is unique and requires specific attention to ensure optimal results. For example, the collaborative needs change across phases. Risk must be considered when developing an idea as well: an idea is original since it has not been done before. As humans, we tend to stick to what is most comfortable and this can combat the innovation process. The Generation Phase The generation phase is when a concept is born. For this phase, the best people to associate with are acquaintances and strangers. Innovators need inspiration and an open mind. Speaking with strangers is a great tool for spurring this inspiration. Since people that are close to us tend to be more like us and potentially over supportive, going outside our comfort zones and talking to people in different social spheres will facilitate open-mindedness.  The Elaboration Phase During the elaboration phase, creators need support and encouragement to develop their ideas. It's risky so friends and close peers are extremely beneficial to the process. Typically, managers are not the most helpful as they can be viewed as evaluative.  Deeply analyzing the idea with one or two other people as opposed to sharing it with a larger collective is most valuable.  The Promotion Phase During the promotion phase, influence and reach are critical due to the risk associated with the idea and lack of precedent. This phase can entail the acquisition of resources and the selling of the idea to others. It's not always easy to get decision-makers to understand or buy into an idea, because of these inherent characteristics of creative concepts or ideas. At this point, we want to seek network brokers: people who are linchpins connecting otherwise disconnected people across the organization. They provide access to people and exposure.  The Implementation Phase Shared vision and trust are what's needed during this phase. A cohesive team with a shared north star can drive success. Tips and Best Practices for Facilitating Workplace Creativity  You don’t have to hire a Chief Innovation Officer to encourage creativity and innovation in your workplace. You can make simple changes to the way your organization and teams operate.  The first tip is to make creative problem-solving a priority. This means always asking for more problem-solving alternatives: the more alternatives, the more likely there is to be variety and creativity.  The second tip is to be collaboratively flexible and reduce conformity processes: think of teams as a tool that is helpful when necessary. Companies that are experts in facilitating workplace creativity are Apple, Google, and 3M. Apple and Google are likely not surprising choices, but 3M is a case-study in its own right.  3M has weathered economic storms and existed for a long time in part due to its creative decision-making practices. They were at the forefront of understanding the value of providing time for people to work on what they want to work on, because people are very intrinsically motivated when they can make decisions about how to spend their time. They have also made it possible for workers to see the end results of their innovation. Innovation and the Pandemic While the pandemic created many challenges, it also opened up new opportunities for unique problem-solving. The pandemic pushed us to put our creative problem-solving skills to the test as the world of business has drastically changed.  The negative effect of the pandemic is the reduction of valuable network-building and face-to-face communication: people are working at home now more than ever. It’s important to continue having in-person communication to allow for creative inspiration and the facilitation of ideas: you can’t have those valuable talks with acquaintances as easily in an online setting.  We also need to consider who is most likely to work from home - more junior employees, women, parents – and the effects of that shift on innovation and career progression.  To learn more about Goizueta Business School and how principled leaders are driving positive change in business and society, visit goizueta.emory.edu.
Climate & Business: Are Net Zero Targets Enough?
Apr 21 2022
Climate & Business: Are Net Zero Targets Enough?
Despite huge hurdles, we are seeing traction in the climate space. In his 2020 letter regarding corporate governance, BlackRock CEO Larry Fink turned heads when he asserted that “climate risk is investment risk”. In 2021, money held in ESG and other sustainability focused funds rose globally by 53% to $2.7 trillion. This past March, the SEC proposed new requirements for publicly traded companies to report detailed information on greenhouse-gas emissions and risks related to climate change.Suffice it to say, climate change is and should be front and center as a key business issue for a diverse set of stakeholders across all sectors including leaders, investors, and regulators.Brian Goebel and Sonia Sharma joined The Goizueta Effect Podcast to discuss climate change and business, including the enormous influence and responsibility business holds in driving toward a climate-smart world.Brian is the Managing Director of Goizueta’s Business & Society Institute. Through the Institute, students, faculty, staff, and partners focus on addressing complex challenges confronting people, the planet, and the business community through academic discovery and purposeful action.Sonia is a second-year MBA student at Goizueta Business School. She’s also a Social Enterprise Student Fellow and future consultant at McKinsey. She recently attended the ClimateCAP Global MBA Summit, along with hundreds of leading students across the nation to dig in on these issues.This episode of the Goizueta Effect was co-created in partnership with MBA students and ClimateCAP delegates Sonia Sharma, Vaishali Nijampatnam, Margot Merwin, and Carlos Vazquez.  Defining the Climate Issue  Climate Change  In 1992, the UN held a framework convention on climate change. The UN determined that climate change is attributable directly or indirectly to human activity and that human activity has altered the composition of the global atmosphere. In addition to natural climate variability, human activity has accelerated the change by adding more carbon and impacting the environment.  Sustainability  In order to promote sustainability, we must ask ourselves, “how do we integrate our future generation into our decision today?” In 1987, the UN defined sustainability as meeting the needs of the present without compromising the ability of future generations to meet their own needs.  ESG ESG (Environmental, Social and Governance) is a set of metrics that helps investors and organizations prioritize making a positive impact on the planet and its people in addition to generating profits. Environmental metrics help corporations refine their practices that affect the environment. For example, companies have begun examining how their supply chains and carbon footprint impact the environment. Social metrics involve serving the community of which the corporation is a part. How much does the corporation support the people in their community, especially with regard to diversity, equity, and inclusion? Lastly, governance metrics involve how the company, its board, key directors, and employees make decisions and how to hold themselves accountable.  Climate Justice Should Be Front & Center   Dr. Adrian Hollis is a senior climate justice and health scientist at the Union of Concerned Scientists. She explains that minority communities are harmed “worst and first” when it comes to the impact of climate change both globally and here in the United States. To promote climate justice, we must shift beyond a business mentality that only considers decarbonization and shift to a system that recognizes and challenges the disproportionate effects the climate crisis has on diverse communities.Too often, companies claim to care about climate change, yet they are only involved in greenwashing. Greenwashing is a form of deception: it’s when companies spend time, money, and resources marketing their products, aims, and policies as environmentally conscious, but in reality, they are not doing anything to minimize their environmental impact. For example, Starbucks released straw-less lids in 2018 but the lid contained more plastic than the old lid and straw combined. Greenwashing reflects a broader accountability challenge for companies and governments. For more examples of corporate greenwashing click here.On the positive side, 20% of the world’s 2,000 largest publicly-listed companies have announced commitments to reach net zero emissions in the coming years. Keeping companies transparent and accountable is the key for tracking their progress toward environmental goals.Climate-Conscious Decisions Drive Growth Climate-conscious business can be broken down into four different areas: growth opportunities, justice issues, leadership imperatives, and accountability challenges.MBA Edge, a resource developed by Duke University, provides an insightful report called, “Climate Change in Business-What Every MBA Student Needs To Know Today.” The facts in this report speak to how climate-conscious business decisions can promote growth. The report notes that 225 of the world’s 500 biggest companies estimated that climate-related opportunities represent a financial impact totaling over $2.1 trillion across all industries.For example, General Motors has been a successful company for many years, but recently began losing revenue. Now, GM is reinventing itself with electric vehicles (EVs) and different forms of mobility. GM is committing by investing billions in EVs and planning to go all-electric by 2035.Further, Inland Empire Energy Center in California, a fossil fuel power plant, is being demolished years ahead of schedule because it cannot compete economically with electricity generated from wind and solar. In fact, in the last decade, wind energy prices have fallen 70%, and solar has fallen about 90% on average in the United States. Globally, the cost of solar has also fallen 99% in 40 years. Now, solar is a cost competitive option and is leading the renewable energy field.  New MBA Graduates and the Potential for Meaningful Change  There are many...
Emerging Trends in the $450 Billion Wine Industry
Feb 28 2022
Emerging Trends in the $450 Billion Wine Industry
Giacomo Negro is a professor of organization and management at Emory University's Goizueta Business School. He holds a PhD in management from Bocconi University where he also received a Laurea degree in economics and business. He recently published the book Wine Markets: Genres and Identities. According to Fortune, in 2020, the global wine market was valued at nearly $349 billion dollars. By 2028, it’s expected to grow exponentially – topping $450 billion. Wine market identities and genres play a key role in shaping the industry. Giacomo joined The Goizueta Effect Podcast to discuss the core audiences that impact how producers make and sell wine – and how wine communities react to evolving trends, like mixing genres. He also shed light on how organic and biodynamic farming are changing the way wine is produced and evaluated.  What are Wine Genres and What Features Define Them? Wine has incredible diversity with hundreds of thousands of labels in the market introduced every year. Whether you are a producer or consumer, genres are useful in understanding and communicating about wine. They also affect how wines get interpreted, evaluated, and valued in the market – and serve as the building blocks of the collective market identities of producers.   Key genre-defining feature may include region, grape, vintage, producer, effervescence, and source materials, among others.   The Important Role of Terroir Terroir is the complete natural environment in which a particular wine is produced, including factors such as the soil, topography, and climate. Terroir can be a source of competitive advantage in the market to the extent that it identifies a unique place, both geographical and cultural, that is not possible to replicate or imitate. While locations are vital to the notion of terroir, the concept also includes the people that work in and inhabit these places and the history of the culture.   What are Market Identities of Wine and Why Do They Matter? Market identities are different from brands. The two concepts are interconnected, but separate. A brand is created by a producer or an agency, while a market identity is attributed to a producer by an audience. A brand is fungible and can be purchased and sold, whereas a market identity cannot. Market identities are a sociological concept that the audience controls.   Who are Key Audiences in the Wine Market? When referring to audience in the wine market, we are referring to those individuals and groups who screen and evaluate the products and services available. Several audiences have decisive influence including consumers, producers, and market intermediaries such as critics and retailers. State authorities also influence the market dictating rules of production.    The Important Role of Intermediaries With producers changing practices all the time in response to shifts in climatic conditions and technical developments, wine is constantly changing. Without a base, wine quality can only be accessed accurately through consumption.   Intermediaries have significant influence on these matters, especially for fine wine that requires more interpretation and more knowledge to be understood.  One role that critics play is gatekeeping by narrowing the field of wines from hundreds of thousands to the top picks. Critics are also able to better evaluate features such as terroir with complex social context that require expert knowledge to decode.   The Reaction of Communities to Shifting Wine Genres  In cognitive psychology, people like and value objects that fit in their conceptual distinctions. More typical objects are valued more positively than atypical ones which is dependent on cognitive fluency; an experience with an object or situation is fluent for someone if they have to exert little cognitive effort in understanding and interpreting that object or situation.  Similar to the outrage of certain fans when Bob Dylan began using an electric guitar, new wine genres or the mixing of genres can generate great uncertainty.   In Wine Markets: Genres and Identities, Giacomo Negro identifies a key difference between the success and failure of wine genres lies in the social structure of production and the resulting community solidarity among producers.   He argues that more homogeneous communities of producers develop greater social cohesion within them that helps establish a genre, which in turn organizes and galvanizes a producer's identity.  How Findings May Apply to Other Industries  In the book, Giacomo provides three examples of successful mobilization by winemakers around wine genres and one failure to create a powerful market identity. He shares findings can be applied to many social movements. Examples include the interplay between categories of chefs and cuisines, like molecular versus traditional gastronomy, fashion, including the tension between ethical fashion and traditional fashion, as well as artistic styles.   The Rise of Organic and Biodynamic Farming  In the regions Giacomo studied, in 1980, only one winery was biodynamic and one organic. By 2010, roughly half of the wineries in his study had joined one of these categories.   Organic farming is defined by the use of fertilizers solely of organic origins, such as compost manure and green manure, to improve the humus content of soils. Organic farming also emphasizes techniques such as crop rotation and companion planting, biological pest control, and mixed cropping. The fostering of insect predators is also encouraged. Legal standards regulate production methods for organic agriculture.   Biodynamic farming shares many features with the organic technique; however, this type of farming takes it a step further. It proposes a unified approach to agriculture related to the ecology of the farm and its association with planetary and cosmic rhythms.  Biodynamic farming includes a set of preparations to promote healthy soil and plant growth through prohibiting certain practices and mandating others. For many, the practices are colorful and mystical.   Should The Market Pay a Premium for Organic and Biodynamic Wine? In blind taste tests by critics, organic and biodynamic wines receive higher scores than traditionally produced wines, however, biodynamic wines do not outperform organic varieties.  Wines produced through non-conventional farming methods are sold at higher prices on average, but the price increase does not necessarily cover the cost increase. Thereby, non-conventional wineries often make less profits. The fact that they continue to work using these practices demonstrates their commitment to quality. It is also possible that they are working to drive repeat purchases and long...
Combatting Urgency Overload
Jan 27 2022
Combatting Urgency Overload
Brandon Smith is an Adjunct Faculty in the Practice of Management Communication at Emory University’s Goizueta Business School and author of “The Hot Sauce Principle: How to Live and Lead in a World Where Everything Is Urgent All of the Time”. He is the founder of the website “The Workplace Therapist” – a resource dedicated to eliminating dysfunction at work, improving workplace health and restoring a sense of optimism and hope. Brandon has consulted numerous Fortune 100 organizations and leading individuals – and has been featured in Market Watch, Nasdaq, and Wall Street Journal.   He joined The Goizueta Effect Podcast to discuss how we can live and lead in a world ruled by urgency – and put ourselves back in charge. As he states in his book,we are in the middle of an urgency epidemic. More and more, people find themselves in an environment that cuts them no slack, provides no respite, and is ever pushing them on. We’ll talk about the history of urgency in our culture and how things have changed over time. We’ll discuss when urgency is necessary and how you can apply it in just the right amount to bring out the best in your work and home life. And when uncontrolled urgency strikes, we’ll give you tips and best practices to protect and bring balance to yourself and your loved ones.   Uncontrolled Urgency  Urgency is a lot like hot sauce. When applied in the right amounts, both urgency and hot sauce can create focus and add flavor, but too much can easily overwhelm the consumer. When people and organizations face too much urgency, chaos and confusion ensues – and productivity decreases.   What’s the History of Urgency and What Forces Drive It? Urgency has always been part of the human condition and is necessary for survival, change, and growth. However, in recent years, we’ve seen a major uptick.  Over the last 10 to 15 years, there have been two leading factors at play.   First, through the advent of technology and the smart phone, many workers are “accessible” all of the time and the natural boundaries between work and life have eroded. Second, many organizations feel pressured to transform and produce more with less. With most organizations lacking strong bench strength paired with the constant availability of workers, teams are at a breaking point.   Trust Before Urgency: A Key Component  When you're creating urgency, you're intentionally creating a state of discomfort. Essentially, urgency is anxiety. To use this tool effectively, trust is essential.   In “The Hot Sauce Principle: How to Live and Lead in a World Where Everything Is Urgent All of the Time”, Brandon Smith has created the following trust formula: [authenticity + vulnerability] * credibility = trust.   If credibility goes to zero, there is no trust. To earn credibility, consistency and responsiveness are key. Authenticity and vulnerability are also extremely important, so leaders need to get comfortable being more transparent.    Tips and Best Practices for Responding to Uncontrolled Urgency  Too much urgency creates chaos. Overusing urgency causes a loss in productivity and creates burnout.   In order to reduce urgency, it’s import for leaders and team to make urgent items more visible. Leaders should focus on prioritizing the number of urgent items for their teams. It’s also important that leadership has a clear sense of urgent items being handled by the team already.  As a worker facing urgency, protecting your time is key. You need to create air in your calendar to allow time to complete the action items from endless meetings. It’s healthy and necessary for teams to have boundaries, such as no emails on weekends.   Keeping Kids Safe from the Urgency Epidemic With competition for college at an all- time high, parents are getting caught up and involved in crafting the resumes and college applications for their children. They’re not creating room and space for kids to breathe and play.   Play is where we learn agency. Play is where we learn we're enough. As a first step, parents should take a step back and make sure that they’re not getting overly involved and contributing to the urgency.   Finding time for vacations and breaks is a great way to reduce the pressures from the world- and reconnect with family.  Hope for the Future The pandemic has shifted how leaders think. They have a greater openness to authenticity and vulnerability, which can lead to higher levels of trust. In general, people have a desire for more connection and community.   In many areas, communication and collaboration have increased and improved. Leaders are getting better and more thoughtful about clearly communicating their expectations and the why behind their decisions.   New Release: Author Versus Editor  Interested in learning more? Check out Brandon Smith’s new release - Author Versus Editor – set to publish in spring 2022. The book focuses on maximizing and managing our time as leaders, including tips on team structure, time management, delegation, and boundaries.    Check out more about Brandon and his work at theworkplacetherapist.com.   To learn more about Goizueta Business School and how principled leaders are driving positive change in business and society, visit www.goizueta.emory.edu.
The Science of Decision Making
Dec 15 2021
The Science of Decision Making
Ryan Hamilton is an Associate Professor of Marketing at Emory University’s Goizueta Business School. He joined The Goizueta Effect Podcast to discuss the science of decision making.It's estimated that the average adult makes more than 35,000 decisions each day. They can be small like where to grab your next cup of coffee or big like who to pick for president. As individuals, how can we make better decisions for ourselves, families, and communities? As business leaders and managers, how can our understanding of the human mind and key motivators help us position our products, services, and teams for growth?Ryan’s work centers on consumer psychology, pricing, branding, and effectively managing customer experiences. He has been featured in the Harvard Business Review, New York Times, Wall Street Journal, and CNN Headline News. He also cohosts the podcast – The Intuitive Customer.Why Decision Making All human behavior can be boiled down to decision making; the behaviors of customers, employees, and family are all just a series of decisions. When you model how others make decisions, that model is either informed by the science of decision making or it's not. Researchers who explore the human decision-making process are contributing to the body of knowledge around this complex topic and hoping to provide better insight so individuals can anticipate the actions of others and understand themselves better.Grounding Tenets: The 4R’s of Decision Making Ryan Hamilton developed the 4Rs framework after teaching decision making to students and business executives. With so much research on decision-making and new studies constantly being published, this framework gives people a starting point to approach decision making in our own lives and in business.  Reference Points - People evaluate things by comparing them to a reference point. If you want to understand how people make decisions, you need to understand their options. These are not always direct competitors. In business, often, customers compare you to things in a completely different category.  Resources– When talking about resources with decision making, we’re focused on cognitive resources – the amount of time and energy we have available to devote to a decision. In marketing, organizations often assume that customers are fully engaged, but in reality, they almost never care as much as the company. When customers are in a low-resource environment where they're distracted, overwhelmed, or just don't care, it affects how they make decisions.  Reasons - Choice justification is a huge research topic. When people generate reasons to justify their decisions to themselves or others, it changes their choices and evaluations. Some reasons might be subconscious or difficult to articulate. From a business standpoint, do companies know the reasons why people choose their products and services and are they accidentally giving people a reason not to choose them? Replacements - Many times, people face evaluations that are too difficult for them to make. Instead of giving up, people often replace that decision with an easier one. For example, we may replace difficult questions like “Who should I vote for president?” with easier questions like “Which candidate is more likable?” These replacement evaluations guide our choices.  How Cognitive Resources Impact the Decision-Making ProcessOur minds consume fuel in the form of attention and cognitive energy. When we have a lot of fuel on hand and apply that to a decision, we make different decisions than we do when we're starved of those resources. In addition, we're all cognitive misers. When it comes to exerting mental effort, we don't want to spend it or think about things we don't have to. As human beings, we’ve developed a number of ways to conserve cognitive resources, for example, habits. Habitual purchases and behaviors are easier because they conserve cognitive energy. Therefore, it's important to understand how people approach decision making, not just when they're fully engaged and motivated and really want to make the best decision, but also when they're tired and distracted and looking for an easy way out.The Mental Load of COVID There's no question that, for many people, the pandemic has been cognitively exhausting. Stress, changes in routine, and multitasking/ switching between roles is cognitively depleting. We should expect to see more self-regulatory failures and less self-control when we have fewer resources. For example, many people exercised less frequently or didn’t adhere to diets during the COVID pandemic because they didn't feel like they had the cognitive resources to do so and because their habits were interrupted. We’ve also seen an uptick in emotional regulation failures, such as unexpectedly snapping at others. Hopefully, as we come out of the pandemic and return to some semblance of normalcy, we'll start to see improvements related to our mental load.  Importance of Reference Points for Businesses The canonical example of reference points is when you have a reference price for something you buy frequently, like milk or gas. But many reference points are vague. In business, if you're trying to anticipate someone's decision making, try to figure out what reference points they're using. Marketers have some power to influence those reference points to their advantage. Sometimes, you can change a failure into a victory by doing nothing more than changing customers' expectations around it. Halo Effects: Impact on Perceived Prices and Satisfaction Levels The halo effect is the tendency for an impression created in one area to influence opinion in another area. For example, when people have a positive evaluation of one personality characteristic (“she seems really nice”), they draw additional judgments based on this one overarching evaluation (“she probably did well in school”, “she must be a good mom”.) This is true in the business world and in marketing, too. Part of what a brand does is create a halo so that consumers make more specific inferences about that offering based on the data. Ryan Hamilton’s recent research shows consumer decisions are influenced not only by the prices of individual items but also by a retailer's price image, which reflects a consumer's impression of the overall price level of a retailer. Halo Effects: Impact on Satisfaction Levels Satisfaction levels can be measured in different ways, from ratings on a scale to functional magnetic resonance imaging machines. In one study, experimenters had people taste test the same wine, but were told that it was either cheap or expensive. The subjects physically experienced the wine as being better when they were told that it was more expensive; the reward centers in their brain actually lit up. Halo Effects: Impact on Individual Perception The earliest research on the halo effect focused on person-to-person perception. Stereotypes, positive and negative, are a type of halo....
Sports Fandom: Diehard or Dying?
Nov 2 2021
Sports Fandom: Diehard or Dying?
Michael Lewis is a Professor of Marketing at Emory University’s Goizueta Business School, faculty director of the Emory Marketing Analytics Center, and host of the popular podcast Fanalytics. He joined The Goizueta Effect Podcastto talk about the future of fandom, what defines a fan, and why fandom is an important measure of modern culture. He discusses what sharp declines in fandom for Generation Z mean for sports leagues, teams, networks, and studios. Finally, he unpacks how young women may represent an unanticipated and untapped opportunity for the industry. Lewis’s work centers on the intersection of sports analytics and marketing, with research ranging from player performance to brand equity. His thought leadership has been featured in The New York Times, Yahoo Sports, USA Today, Bleacher Report, and NPR. To access his research and find out more, visit Lewis’s website at fandomanalytics.com.  What Is Fandom and Why Is It an Important Reflection of Culture? When people hear the word fan, they often conjure trivial examples, like a jersey-wearing individual sitting in the rafters, or a kid excited for the latest big rock concert. But if you take a step back, at its core, fandom is intense passion for elements of culture. Understanding what people care about, and what they are passionate about, is an important pursuit.   Declines in Fandom in Gen Z Males Typically, in his academic studies, Lewis conducts quantitative research measuring fandom across teams.   Last summer, however, he commissioned original survey research - The Next Generation Fandom Survey- to take a deeper look into what's happening across generations. America is continually going through a shift in generations. Lewis expected Gen Z to behave similarly to millennials because both are digital natives, albeit with greater intensity for Gen Z. The results surprised him.   Research shows a tremendous drop-off in sports fandom for Gen Z. Millennials turned out to be the most avid fans, with Gen X and the baby boomers slightly less interested than the millennials. In particular, Gen Z males demonstrate a sharp decline in fandom.   To dig deeper, sports fandom is driven by two psychological constructs: self-identity and the need to belong to communities. Gen Z males’ scores on those traits were much lower than Gen Z females, as well as other groups. Gen Z males seem to be alienated from sports with an apathy to commit or connect. Sports fandom is public and lifelong, which sets it apart from other kinds of fandoms, and Gen Z males seem particularly uninterested.  This apathy is mostly reported in the sports realm, not within all fandoms. Gen Z males are lagging, in terms of their peers and other older generations, across all sports except esports. However, in terms of entertainment categories, like music, movies, television, comedy, they score relatively closely to their female peers.   Sports, Gen Z Females, and Female Leadership Research shows the idea of belonging to something bigger, to proclaim that you are a fan, is more consistent with Gen Z female psychology. This suggests Gen Z females feel less alienated and represent an opportunity for leagues to grow their female fandom.   When it comes to sports and female leadership, positive trends have emerged such as the San Antonio Spurs' hiring of Becky Hammon as assistant coach, to last year's hiring of Kim Ng by the Marlins as the first GM in Major League Baseball. This shift may have to do with women starting to take on more important roles in male-dominated sports. A larger cultural force may be driving both sides, leading to more female representation in sports management and, simultaneously, more fandom on the side of young women.   Until now, the marketing of sports has been segmented to males. However, now we're seeing this shift where different leagues and teams are seeing growth opportunities with women. Businesses want to grow their fan bases, and the female fan has always been a little bit elusive. The classical marketing issue is that businesses want more customers, but new fans and consumers affect the image of the product.  Lewis raises the question: as sports become more inclusive, do they become less appealing to different segments? As a pure theoretical marketing idea, most marketing remains segment-based rather than to the masses.  So as a sports league markets to different groups, does it become less interesting to other groups? Does sports shift away from the domain of boys? While this may be positive change, does this shift make sports less appealing to males? While Lewis doesn’t know the answer to that question, he thinks it is interesting to consider.  Measuring Fandom In The Next Generation Fandom Survey, Lewis and his colleagues studied attitudes, preferences, and behaviors to capture the elusive concept of fandom. They polled participants about the types of sports they engaged with, whether they wore team clothing and collected memorabilia, as well as social media engagement and spending habits. They drilled down further into fundamental psychological concepts like the need for belonging and the importance of self-identity. Fandom is an elusive concept that can be measured in different ways, but fandom also includes an element of magic. Data can’t explain everything. That extra human element is where the magic happens.  Millennials as the Biggest Sports Fans According to the study, by far, millennials are the most willing to connect with organizations and display their fandom. These fans show loyalty through social media, attendance, and active display of sports shirts and jerseys. Millennials had the highest scores for almost every sport. This generation received a lot of criticism when they were growing up; for example, kids were regularly given participation trophies. But they were also more connected with the internet, had smartphones at a relatively younger age, and received higher levels of encouragement and positive reinforcement. In terms of being connected to society, it could be theorized that the environment millennials grew up in helped them become the most committed fans of any generation. This is an advantage for sports organizations right now because millennials are the core audience. Gen X may pay for pricier tickets, but the millennials are, across the board, the most connected generation. This is why the falloff to Gen Z was so surprising.  The Future of Fandom: Sport by Sport  At the moment, every sport is operating in a slightly different context.   Football Football, both college and pro football, seems to be the most protected from decline. Whether it's SEC or NFL football, the experience is a true spectacle. Man...
What Goes into Your Cup of Coffee?
Oct 1 2021
What Goes into Your Cup of Coffee?
Peter Roberts, Professor of Organization & M anagement at Emory University’s Goizueta Business School, was founding academic director of Social Enterprise @ Goizueta. He joined The Goizueta Effect Podcast to explore the vast inequities between growers and retailers/roasters, how historical movements like colonialism and slavery have shaped the origins of this industry, and what role climate change and the pandemic are playing today. He also delves into how consumers, roasters, and retailers can work together to balance the scales. Peter also serves as the academic director of specialty coffee programs for The Roberto C. Goizueta Business & Society Institute.His research focuses on how the behavior and performance of organizations evolve over time. His current projects focus on social entrepreneurs and accelerators, microbusiness development, and the global specialty coffee industry. He has been featured in the Harvard Business Review, Forbes, Bloomberg, Food and Wine, and Salon. The Magnitude of the Coffee Industry By the Numbers In 2019, roughly two-thirds of American adults drank coffee every day. Over the past 30 years, the specialty coffee market has expanded exponentially and now accounts for up to 40% of all coffee consumed.  In 2020, the coffee market was valued at more than $102 billion.  With 25 million families around the world responsible for growing coffee, the economic and social impacts of this industry are broad and deep.  Evolution of the Coffee Industry The global coffee industry has always been characterized by stark contrasts. Retailers, roasters, and importers often do very well financially, while those who grow coffee struggle to break even.  This is not a new phenomenon. The coffee industry only exists because of colonialism and slavery. Originally, coffee was not grown in Central and South America, but when Europe and the United States started consuming inordinate amounts of coffee, coffee plants and people were brought from Africa.  In the late 1800s, formal slave owning and colonialism went out of fashion. At this point, global markets kicked in, and coffee became a lucrative way for middlemen, such as roasters and sellers, to maintain low coffee grain prices.  Major brands like Folgers and Maxwell House dominated the first wave of coffee consumption, then Peet's and Starbucks and Caribous set up a second wave of coffee. Recently, the third wave of coffee has become popular, which is the movement focusing on small, micro lot-oriented, and direct-trade roasters.  While coffee has often been lucrative for retailers and roasters, most coffee producers in the world are not able to cover the cost of production. From Bean to Cup Consumers often assume that all the magic happens in a coffee shop. However, the people that work on coffee farms, or in beneficios, pour a lot of skill, talent, work, and time into the production of coffee. Before coffee is roasted, it's a bean. Before that, it’s a cherry. And prior to this, it’s on shrubs. Before the beans are ready to be harvested, the grower cares for the plant for at least three to four years. Often, at least 25 sets of hands play a role in shaping a single pound of coffee.  Coffee growers handle much of the heavy lifting and shoulder much of the risk. However, the payoff is not even. On the retail end, $15-$20 is a reasonable per-pound price for specialty coffee, but the median price that coffee growers receive is just $2.60.   Specialty Coffee Production Exchange grade coffee or commercial/commodity coffee has fairly low standards for quality, which allows for many defects. However, specialty coffee must secure a grade of at least 81, which involves cupping and scrutinizing all of its elements. This product cannot feature green beans that would change its flavor profile. The coffee has to be picked, processed, and sorted multiple times. The world of specialty coffee involves high quality expectations. All of that extra work needs to be paid for. The Effect of Climate Change on Coffee Growing Coffee production is impacted by many external forces, including climate change. In the next 20 years, 60-70 percent of the land that currently grows coffee may become ill-suited for cultivation.  For instance, in Nicaragua just a decade ago, coffee farmers set their watches by when the weather changed from wet to dry to determine when it was time to pick coffee. Now, the weather is variable, which makes it difficult for farmers to grow. Economic and social mobility proves difficult for coffee farmers who don’t have hefty savings. If we don't start valuing the work that goes into coffee, paying the people that do the work, accounting for some of the investment and risk, we may not have enough coffee to satisfy demand in 10 or 20 years. Rural communities are oriented around growing and selling coffee, so their economy is built around their core industry. Farmers who are looking ahead to an unsure future can invest in climate change adaptation, using concepts such as shade-grown coffee, which shifts conventional agriculture back to growing coffee in forests. Organizations such as The Nature Conservancy are exploring coffee growing as a form of reforestation. If we can figure out how to pay farmers for growing excellent coffee the right way, there is a built-in incentive for people to reforest, contributing to both adaptation and mitigation of climate change. The Impact of the COVID-19 Pandemic on Buying Patterns, Growers, and the Coffee Industry The initial shock of the COVID-19 pandemic hit the coffee industry as hard as the general public. The industry had several concerns: If people go back to drinking coffee at home, then would they stop drinking better-produced or specialty coffee? What happens to local retailers and coffee shops? What price would consumers be able to pay? Like many products, the industry also faces multiple supply chain issues. For instance, without shipping containers for coffee coming from certain suppliers, coffee can’t reach consumers quickly and its quality decreases. Industry leaders also worry about workers’ and farmers’ health and safety as they grow the coffee.  However, “the new normal” did introduce a few silver linings such as subscription services. As people missed specialty coffee, producers realized that people would be willing to spend more to have better coffee to brew at home. Therefore, subscription services and online sales of the specialty shops did fairly well during the pandemic. Nonetheless, the industry is still uncertain about how the specialty coffee industry will settle down over the next few years.  Coffee Movements Create a More Equitable System
Millennials at Work
Aug 31 2021
Millennials at Work
Andrea Hershatter has led the Undergraduate BBA Program for two and a half decades, overseeing its growth and curricular development and helping to secure its place among the most elite undergraduate business programs in the world. Andrea holds a faculty position in organization and management and teaches entrepreneurship. She regularly provides consultation to top corporations and leaders in academia on the millennial generation.  Defining Generations Each generation has a particular personality and role in society. Biologically, a generation is defined as a range of anywhere from 15 to 23 years. As babies are born, their parents raise them in response to what's going on in the world. Therefore, they are influenced not only by societal dynamics but also by what they see in the generation coming of age. Dynamics about child rearing emerge that lead them to have certain propensities in the way that they raise their kids. What Makes a Millennial? Millennials are so named for the high school class of 2000, born in around 1982, that started the generation that entered adulthood at the turn of the millennium. This was a dynamic generation that the media shone a dynamic spotlight on. Strauss and Howe’s theory of fourth turning suggests that generations move in cycles and that the generation coming of age is being raised to fulfill the societal gap being abandoned by the generation that's phasing out.  Therefore, millennials are being conceived of as the generation that will replace the GI generation. The GI generation was the generation that became profoundly impactful leaders whose job was to change and protect the world. Millennials were put in a similar spotlight of being expected to grow up to shoulder heavy societal burdens and have a profound impact on the world.  Exploring Boomers Boomers are associated with the baby boom and, at their moment of coming of age, were in the center of a generational war and redefined culture. They fought in and protested Vietnam. As boomers created their own culture, they shut out older generations and have held onto that role until now. These boomers responsible for creating culture retain a profound influence on how American culture is depicted in movies because even if they are not directly acting or producing them, they control the flow of money. That entertainment gets disseminated all over the world. A Look at Gen X Gen X was the victim of the educational wars and performed poorly on standardized tests because they lacked a common body of knowledge. At the same time, mothers went back to school, but society lacked after-school support and infrastructure. Therefore, Gen X became the latchkey kids who came home to empty houses, becoming free thinkers that were dismissed as slackers. They also came of age at the dawn of the technological revolution, creating the infrastructure and changing the capacity of information to revolutionize our current lives. Zoomers According to the fourth turning, Gen Z, or Zoomers, will replace the “silent generation” in terms of their societal role. The silent generation actually ushered in the civil rights and women's rights movements, so Gen Z is fighting systemic inequities, pioneering movements about gun access, climate change, and Black Lives Matter. This generation understands diversity as non-binary and not fixed, which is difficult for older generations to grasp. They think about self-identity and roots in ways that have created an entirely new language. They will likely shape the world in fascinating ways that are unimaginable right now. Millennials and Technology For millennials, technology was embedded into their earliest ways of knowing, rendering it a noncognitive sixth sense instead of an intellectual endeavor. Millennials approach a problem using technology without thinking about it and are capable of multitasking while using it. In terms of how it influences the workforce, there are two important aspects. Technology impacts how millennials work and how firms reach consumers. In the workforce itself, millennials demonstrate competence in using the technology that suits the task at hand. It is important to them that others understand which mode fits a certain message and intention. Through social media, millennials and zoomers have created a performative life that expects immediate feedback, a cycle which leads to extrinsic motivations. That influences how, for example, millennials expect to be acknowledged for the work they do in a company. This can be stress-inducing if you don’t receive positive feedback, affecting your sense of personal agency. Using Steve Nowicki’s assessment of locus of control, over time, generations have developed a more external locus of control. This is problematic because when you feel out of control (such as in a global pandemic), your locus of control determines what you believe you can do to influence your own personal circumstances. Ages of Millennials in the Workforce Early studies showed the leading edge of Millennials demonstrating a strong desire to have personal purpose aligned with their company. However, with younger respondents, that importance drops as people work to fulfill Maslow's hierarchy of needs. Research shows this younger cohort is more concerned with stability and economic security. In a recent Harris poll, it was determined that millennials are willing to take on supervisory responsibilities leading to career advancement, but feel burnt out and find it difficult to unplug. Millennial managers also have a less traditional focus, prioritizing communication, culture, and people rather than operational results or budgetary responsibility. As the younger millennials enter the workforce, they want feedback, collaborative opportunities, flexibility, and autonomy. However, peer-to-peer, millennials are harsh judges with high expectations who have been held to high standards. The question is, how will older managers, whether they're millennials or Xers, motivate younger workers by giving them flexibility, while maintaining the accountability and performance standards? Millennials’ Relationship with Organizations Across every socioeconomic dynamic, the parents of millennials devoted more of their discretionary income into raising their children than ever before, including enrollment in expensive schools and extracurriculars. As consumers of those, parents micromanaged these organizations to shape them into the ideal experience for their children, demanding what they wanted to see. Millennials who grew up being told they were the future were accustomed to the organization molding itself to meet their needs. Many millennials or zoomers entering a workplace will demand the tools they need to contribute to the organization and improve it, which clashes with older generations’ ideas of an organization with set principles and rules. This clash results in the older generation seeing millennials as entitled. Google is a prime example of an organization that has molded to is employees. The entire campus is lifestyle-based, which builds trust and makes employees feel cared for by the company. Google knows that if they fuel the whole person, employees will be able to bring something better, m...
Entrepreneurship Done Right
Jul 27 2021
Entrepreneurship Done Right
Charlie Goetz, Senior Lecturer in Organization & Management and Distinguished Lecturer in Entrepreneurship at Emory University’s Goizueta Business School, joined The Goizueta Effect Podcast to discuss the world of entrepreneurship, including key advice for success, the psychology of purchasing, and the dreaded cold call. Goetz, a serial entrepreneur and three-time author, has started and built nine new ventures and employed more than 1,000 individuals in industries as diverse as finance, healthcare, broadcasting, sports, real estate, and advertising. In addition to teaching and writing books, Goetz is actively involved in investing in new businesses and sits on a number of boards for both private businesses and not-for-profit organizations. Goetz is also responsible for the development of “Marketnomics”. Why Businesses Fail According to data from the Bureau of Labor Statistics, while most small businesses survive the first year, by year 5, about half will have failed. And at year 10, the rate climbs to 70%. The number one reason is lack of sales; running out of money is simply a symptom. Lack of sales can happen for many different reasons, including things like poor product market fit, ineffective marketing, or selling processes. While creating sales on an Excel spreadsheet is easy, many businesses find out later that selling in real life is a lot harder than it is on a computer program. The “Entrepreneurial Trait” People who build successful businesses have the ability to pivot when necessary. Most businesses don’t go as planned when starting. This is the beauty of being an entrepreneur. One day, you're doing business one way. The next day, you have changed the business to do something in a totally different way that the market prefers. And sometimes it ends up being a totally new business and a totally different market. Many successful companies have had to pivot multiple times to find just the right product, market, and strategy to be successful. Why Marketing is Essential for Entrepreneurial Businesses Entrepreneurial ventures have a lot to overcome, and a very small budget to do it. The average person remembers less than 0.2% of the hundreds of ads they see every day. Every one of these companies has spent valuable time and money crafting their advertising messages and placing them where the market sees them. However, almost all of them have failed in gaining your attention. While large companies can play this game because they have robust marketing budgets and can afford to use the strategy of frequency and reach, small businesses and startups must think differently. In order for companies to be more effective, first, they need to understand their true cost of acquisition, which is the cost in both marketing and sales dollars spent to obtain a new customer. Many small business owners spend money ineffectively with messages that are minimally impactful and/or sub optimally placed. These practices cause businesses to run out of money because the cost of acquisition is frequently higher than the lifetime value of the average incremental customer. Second, business leaders must craft messages that stand out and are memorable. If your message isn't memorable, they will forget it, and they will forget you when it comes time to buy. Overcoming Barriers Faced by Entrepreneurs Small businesses and entrepreneurial ventures have little to no credibility in the market in their early days. Without trust and market awareness, it's difficult to garner the number of customers that a business needs in order to build their reputation and credibility. Without credibility, the cost of acquisition becomes extremely high. But, there are a number of different ways to gain credibility if you don't already have it. Build a board of advisers who include people from your industry that prospects already know and trust. In this way, the company can leverage their credibility to the benefit of their business. Partner with a larger company where they either sell your product for you or provide you referrals for a commission. Get well-known leaders, celebrities, or influencers in the market to promote your company.  Find leaders in your market and give them your product for free, then solicit them for positive references that you can use to market to your prospects. The majority of people are followers when it comes to buying something new, so new products in the market fail at a greater rate. So, position your product or business in a way that your product does not look new to the market, as a truly valuable extension to what is already out the market.  The 3 Core Components of a Compelling Value Proposition Define the need you are solving.  Differentiate yourself from competitors.  Ensure your message is clear and concise. Large established companies have the marketing budget to create a well-known brand that anchors a specific feeling in prospects’ minds. Lacking this budget, small businesses can start with a well-known brand that recalls a specific image, then differentiate themselves in one way. This one way is what the company does best, and what it believes will attract a certain percentage of that brand's market to try its product. The idea is that prospects will appreciate the company’s similarities to the big company but also value how it’s different. Pricing Products The number one way that most companies price their product is in relationship to how others in the market price theirs. Entrepreneurs are no different. Frequently, this results in many businesses leaving a lot of money on the table. Price creates a certain perception in the minds of your prospects and customers in the market. Low price implies good value, but not as good for service. High price is perceived as high quality and good service, and special because it’s exclusive. A price in the middle doesn't stand out and frequently is seen by the consumers as not saying much about the product or service, and in turn, about the buyer who's purchasing these products either. First time entrepreneurs often price their products too low, confident that this will add to its attractiveness, and expect to raise the price later to create a more favorable impression and higher margins.  However, this is a mistake since most CEOs of early-stage entrepreneurial ventures are not confident in their products' perceived values. Low pricing results in lower margins, which makes it difficult to cover future marketing and operating costs. This results in the company never being able to grow sufficiently or later raise prices, as its image has already been created as being a discounter.  Tips for Cold Calls The best way to make a cold call is to not to make a cold call. Instead, use a series of well-scripted, value-added voicemails. Each voicemail needs to feature a key component of the sales pitch. In cold calling, the relationship is much more important than the product itself in making a sale. The first voicemail provides prospects with information they can use to do their job...