MIT Sloan Campaign Publication Summer 2018

ISSUE 01

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S U M M ER 2018

A Better World i n the Making T he Evolution of Work

The Evolution of Work Imagine a world in which profit and human prosperity are inextricably linked. In which economically viable healthcare is a given, technology enhances human work, and sustainability is at the center of every corporate agenda. In a world like this, tough problems wouldn’t be considered intractable, but solvable. By those with the expertise, purpose, and sheer willpower to stop at nothing short of “better.”

The world waiting to be fixed is our own.

We are the ones who can create a better world: The tools are already within our grasp.

The dedicated faculty, students, and academic partners of MIT Sloan have all put themselves to work on distinct aspects of this task. The stories and examples that follow are just some of the ways we’re making an impact today—made possible through the support of our community.

We’re passionately committed to bringing MIT Sloan’s unique intellectual and practical resources to bear in actively building a better workplace—and world— for tomorrow. In the words of MIT President L. Rafael Reif, “We must proactively and thoughtfully reinvent the future of work.”

The techempowered workplace: Better, faster, more prosperous.

In the massive leaps technology has taken over the last few decades, we see opportunities to accomplish the work of the world in new ways through AI, automation, and robotics. We can free human and financial capital, empower and augment the abilities of workers across industries, and—perhaps most tantalizingly— provide powerful new ways to take on the epoch-defining threats we face today: issues like inequality, education, health, and global climate change.

ANDREW MCAFEE

Harnessing the Digital Future Andrew McAfee, ’88, ’89, LGO ’90—co-director of the MIT Initiative on the Digital Economy, principal research scientist, and co-author of such books as The Second Machine Age and Machine, Platform, Crowd: Harnessing Our Digital Future, and self-described “AI optimist”— offers salient points and advice from his latest research on ways in which technology is changing business, the economy, and society.

ON ANXIETY ABOUT AI AND “HUMAN OBSOLESCENCE”

While advances in AI have seen dazzling performance in specialized areas like pattern recognition (for example, an AI beating every human master at the strategy game “Go”), McAfee is quick to point out that machine and human intelligences—at least for the foreseeable future— are extremely distinct: Organizations should understand that AIs are excelling at “specialized intelligence” tasks, but can’t yet approach even the most fundamental general and social intelligence at which humans excel. In particular, humans still enjoy a monopoly on emotion.

Citing medicine as an example, McAfee explains: “The world’s best diagnostician [might soon be] a piece of technology…but I haven’t seen a technology that can establish an actual compassionate, empathetic social bond with human beings.” In other words: Machine and human intelligence are complementary, not exclusive.

D ANIELA RUS

AI and the Evolution of Work Daniela Rus, Andrew (1956) and Erna Viterbi Professor of Electrical Engineering and Computer Science, and head of MIT’s Computer Science and Artificial Intelligence Laboratory (CSAIL), discusses the ways in which AI, robotics, and automation may soon be improving quality of life—and creating new opportunities—across fields of human endeavor.

• Agriculture: Robots will allow us to build more efficient,

ON HOW AI AND AUTOMATION WILL IMPACT INDUSTRY

Automation and AI, in collaboration with human workers, will

vertical farms—while AI and big data can help to target

transform a wide cross section of the economy:

use of pesticides and fertilizers with far greater precision, cutting costs and yielding environmental dividends.

• Manufacturing: AI and automation can help shrink the size of factories, and move them closer to population

• Retail: Existing approaches can be transformed through

centers—diminishing their environmental footprint and

the use of virtual fitting rooms and low-cost custom

transportation costs; it will allow greater customization

manufacturing and tailoring of clothing, democratizing

of goods at a fraction of the previous cost, diminishing

access to higher-end products while reducing waste,

waste and improving access to quality goods.

environmental degradation, and carbon costs.

Machine Coworkers

“What’s happened is, technology changes the work of humans: It allows them to do higher-quality work, it allows them to be more efficient, it allows them to be safer...that kind of thing is going to continue.”

Amazon Worldwide Consumer CEO Jeff Wilke, LGO ’93

New AR software from Waypoint Labs aims to give field workers the same kind of access to tools that capture, transfer, and distribute knowledge that desktop workers have enjoyed for decades. “As information technology has improved and made the lives of knowledge workers easier, the tools for front line workers have stayed the same,” explains Waypoint Labs CEO Umar Arshad, MBA ’17.

With Waypoint, while a worker wears a headset, software monitors them audio-visually and spatially, chronicling their movements to document their activities or process in real time. Thus, with the headset on, an experienced worker can create scalable “training” data that an unlimited number of others can access in whatever format the customer chooses—from an interactive website to photos or video. Waypoint gained traction as part of the MIT delta v accelerator— a program made possible through donations provided to MIT Sloan; now in 2018, Waypoint has been acquired by PTC—home of Vuforia, the world’s largest AR platform.

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On Human and

From the lab to the construction site, augmented reality opens new frontiers in job training.

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BUILDING BETTER

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B lockchain Far Beyond Bitcoin

Imagine a technology that could be used to make business

entrepreneurship, blockchain technology, and economic

activities more transparent, fairer, and more equitable; that

activity—worked with colleague Catherine Tucker, Sloan

could serve underserved populations with critical banking,

Distinguished Professor of Management and professor of

saving, or investment services; that could allow workers to

marketing, to conduct a unique, large-scale experiment

keep more of the gains of their economic activity; and that

at the Institute using bitcoin. A total of 4,494 MIT

could dramatically increase personal privacy in the age

undergraduate students were offered access to bitcoin,

of digital breaches.

with their adoption and use reported back to the

According to Christian Catalini (Theodore T. Miller

researchers. The fact that a significant number (nearly

Career Development Professor; associate professor of

half) of students held on to their bitcoins suggests an

technological innovation, entrepreneurship, and strategic

instinctive recognition, even then, that speculation would

management; and part of the MIT Initiative on the Digital

be one of the currency’s first use cases. (Worth $350

Economy and the recently launched Digital Currency

per bitcoin at the time of distribution, the digital currency—

Initiative), such are among the many potential applications

as of this writing—is now worth more than $9,000 per

of blockchain—a relatively new technological innovation,

bitcoin.) Since then, Catalini’s research has broadened

most widely known in its application to cryptocurrencies

to worldwide study of the economic implications of

such as bitcoin and Ethereum. But like any technology,

blockchain, crypto assets, and cryptocurrencies—from

Catalini reminds us, blockchain can be used for socially

examples of massively scaled crowd funding to a

positive or negative purposes: It will be up to us to

hedge fund that uses cryptotokens to both incentivize

determine whether we incorporate blockchain to the

expert participants and make investment decisions.

betterment or detriment of humanity.

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A BETTER WORLD IN THE MAKING

THE FUTURE: INCUMBENTS, EXPECT DISRUPTION

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THE USES AND IMPLICATIONS OF BLOCKCHAIN:

In emphasizing the uniquely innovative aspects of the

A RAPIDLY CHANGING PICTURE

technology, he points out that bitcoin represents “the

In its simplest form, blockchain technology allows

first-ever instance of someone writing and sharing computer

for distributed, tamper-proof ledger records to be kept,

code which then directly led to investment in the creation

and continuously updated—anywhere on the planet.

of a specific, dedicated, worldwide infrastructure”—

Because the verification of accuracy is “baked in” to the

referring to the servers that process and secure bitcoin

functionality of the code, the first and most well-known

transactions. And all without the involvement of a

blockchain applications have been in cryptocurrencies. But

government, private entity, or corporation supporting the

Catalini stresses that the disintermediated transactions

deployment of this novel network. However, Catalini

the technology enables have the potential to impact multiple

notes, the fact that blockchain is still in the “infrastructure

industries: Since the technologies can be used to

building” stage of its development makes it easier for

track, trade, and automatically update any digital asset,

business leaders to make the mistake of underestimating

applications might go beyond currencies and cryptotokens

its ultimate future impact. He predicts that in the next

to include things like provenance of goods, identity,

decade, we’ll see similar instances of code used to

credentials, supply chain data, or even the verification of

incentivize and coordinate economic activity beyond

medical records. “Blockchain can provide costless

cryptocurrency—from digital resources such as data

verification of the digital attributes recorded on a distributed

storage to labor markets across different industry verticals.

ledger,” notes Catalini.

As early as 2014, Catalini—whose research has recently focused on the intersection between

Catalini also identifies two areas CEOs and managers should keep front-of-mind, when thinking about how blockchain may come to affect their businesses: the “cost

“Ask yourself: What parts of my business will become commodified as blockchain gets adopted, and how can I move up the value chain to keep adding value to transactions without being outdated or replaced?” of verification” (which blockchain dramatically reduces) and the “cost of networking” (i.e., the cost of coordinating economic activity on a global scale). This second cost will have the most profound implications for established firms—especially global intermediaries, whose market power and value may be severely curtailed.

“Ask yourself: What parts of my business will become commodified as blockchain gets adopted,” Catalini suggests, “and how can I move up the value chain to keep adding value to transactions without being outdated or replaced?”

THE CRYPTOECONOMICS LAB: ANOTHER MIT FIRST, MADE POSSIBLE BY DONOR SUPPORT

Looking for deep and diverse expertise across many disciplines—one of MIT Sloan’s particular strengths—Catalini asserts that MIT was the logical place to create the new MIT Cryptoeconomics Lab: an initiative seeking to push the envelope in blockchain and cryptocurrencies by bridging economics, computer science, and business.

“With a combined focus on innovation, technology, and entrepreneurship, MIT Sloan was the best place to build this.” (As evidence, he cites the attempt to replicate the 2014 bitcoin experiment at Stanford, where—for lack of interest or resources—“it just never happened.”)

Catalini also stresses how important donations— particularly a $1 million gift—have been critical to his work since the very beginning. Especially for researchers

Access to funds for researchers and faculty at the critical early stage of their work allows MIT to continue to innovate and experiment with new technologies. Support for the MIT Campaign for a Better World can directly impact Christian Catalini’s work with the Cryptoeconomics Lab, helping MIT Sloan continue to invent the future, with technologies like blockchain—and whatever comes next.

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meant “chances to experiment and take big risks early on.”

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and faculty at earlier stages in their careers, that support

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Robotic surgery is expanding the frontiers of medicine—but testing the limits of traditional medical education.

Robotically assisted surgery has yielded many patient benefits, from greater medical precision to quicker recovery time.

But as Matt Beane, PhD ’17, (research affiliate for the MIT Initiative on the Digital Economy) discovered in over two years of research, robotic surgery has “disrupted approved approaches to surgical training”— with clear negative impact on most surgeons’ preparedness. In his recent paper, he reviews how the surgical students he studied learned (or failed to learn) to operate via the widely used da Vinci surgical system—“best practice” left them simply watching a senior surgeon without participating or using the robot themselves with little preparation and support. “Very few residents overcame these barriers to effectively learn how to perform this kind of surgery,” Beane writes. These “shadow learners” made progress in illegitimate ways, expanding our view of how learning can occur in the modern workplace. “The rest struggled—yet all were legally and professionally empowered to perform robotic surgeries when they finished their residencies.” Beane cautions that better approaches must be developed, or medical education risks creating “a shrinking, hyperspecialized minority; a majority that is losing the skill to do the work effectively; and organizations that don’t know how learning is actually happening.” As part of the MIT Initiative on the Digital Economy, Beane’s work was supported by alumni donations and the MIT Campaign for a Better World.

Home care requires trust in your provider.

Now, there’s a techenabled platform to help.

Due to fundamental changes in the market, traditional home-based help in Latin America has been disappearing—creating a gap between care service providers in need of work and families in need of home help. Dan Stern, MBA ’18, building on years of experience at a leading Chilean management consulting firm—and funded by a fellowship from the Legatum Center for Development & Entrepreneurship—has now created Alba: a tech-enabled platform to connect caregivers with families, using advanced recommendation algorithms that can provide the bona fides required to extend trust to a stranger in your home. From child care, elder care, and pet care to home care, users can also experience every step of their loved one’s care through text updates, a nanny cam, and GPS tracking. Stern hopes to transform Alba into the biggest provider of care services in Latin America—empowering Latin American families to find the trusted care they need more efficiently.

With a shortfall of 11 million college graduates, the U.S. labor market needs to find skilled talent— with or without a degree.

As an extension of her work, and supported by a 2013–2014 MIT Legatum Fellowship, Yscaira Jimenez, MBA ’14, created a unique solution for U.S. labor needs: LaborX, an online platform that matches high-tech employers with highly skilled but nontraditional job candidates. “With college so expensive, I thought creating an alternative pathway to meaningful employment in the knowledge economy was critical,” explains Jimenez—who herself grew up among many for whom the privilege of a traditional educational path was unattainable. “The common denominator [for LaborX candidates] is, they have skills and lack social capital. I’m trying to have people judged on ability, not on race, gender, or class.” LaborX has launched in San Francisco with the support of the City of San Francisco’s Office of Economic and Workforce Development and is looking to expand to other cities across the United States.

Myanmar’s uniquely high smartphone usage rate among low-income workers yields a surprising dividend: easier job matching.

While implementing a lending program for laboring migrants in Myanmar, Conor Smith, MBA ’18, saw the urgent need for workers to find better access to employment information.

So he founded New Day (Neh Thit in Burmese), the developing world’s first smartphonecentric, entry- to mid-level jobs platform—made possible by the generosity of MIT Sloan alumni, in the form of both fellowship funding and a Legatum seed grant. Providing job matching, skills training, and employee assistance, New Day allows Smith to leverage his unique knowledge of the Myanmar industrial market—which is experiencing surging GDP growth and robust international investment. The result? A more sustainable recruitment and employment ecosystem, helping local companies grow—and workers succeed.

TAVNEET SURI

The Power of Mobile Money in the Developing World Associate Professor of Applied Economics Tavneet Suri shares her work on “mobile money”—and its practical impacts on the lives of Kenyans.

WHAT IS “MOBILE MONEY”?

An innovative family of non-smartphone applications developed about a decade ago, mobile money apps enable mobile phone owners to deposit, transfer, and withdraw funds without having a bank account (in contrast to “mobile banking,” which requires a conventional bank account to function). These apps have surged in popularity particularly in places where the population is often under- or un-banked—allowing them to become far more powerful economic actors.

HOW IS IT USED?

Mobile money’s greatest demonstrated utility so far includes two types of transactions: geographically disparate transactions (those across distance) and transactions where the opportunity cost of holding physical cash may be high, as in high-crime cities. In short, when it comes to certain specific economic conditions (particularly in the developing world),

human) through worker mobility.

WHAT IMPACT DOES THE RESEARCH SHOW?

Better access to mobile money services not only increased household consumption in Kenya but also increased savings, reducing poverty rates. In fact, according to their research, during the period covered by their study, Kenyan extreme poverty rates declined by a full 2 percentage points (196,000 households moved out of extreme poverty).

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improving everything from safe storage of savings to better allocation of capital (financial and

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mobile money both reduces transaction costs and improves security, facilitating trade and

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Putting Collective Intelligence to Work

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A BETTER WORLD IN THE MAKING

Thomas Malone on human-machine collaboration and the “supermind”

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Robotics. Automation. AI. Recent advances in technology have brought society closer than ever to the imminent prospect of automating everyday tasks—from driving to data entry and beyond.

And understandably, some of the public is less than enthusiastic about what they see as the prospect of human obsolescence. But Thomas Malone, Patrick J. McGovern (1959) Professor of Management and founding director of the MIT Center for Collective Intelligence and author of the new book, Superminds: The Surprising Power of People and Computers Thinking Together, has a message of reassurance based on empirical evidence: don’t panic. He

argues that humans remain the most critical element of our systems— and advances in AI technology present an unparalleled opportunity to create the most powerful “collective intelligences” ever. In fact, by harnessing the best of human intelligence and the best machine capabilities, Malone proposes that we could forge “superminds” capable of confronting the biggest global challenges of our time.

FROM “HUMANS IN THE LOOP” TO “COMPUTERS IN THE GROUP”

Thomas Malone has spent more than two decades studying the collective intelligence of groups— something he defines as “groups of

individuals acting collectively in ways that seem intelligent.” With reference material spanning large companies to think tanks, countries to families, Malone’s current research focuses on measuring collective intelligence and applying it to create better-functioning human-machine collaborations.

Perhaps counterintuitively, Malone’s recent work reveals that smart individuals don’t necessarily create smart groups. Rather, he and his colleagues found that the factors most strongly correlated with collective intelligence include social perceptiveness, equal participation in group discussions, and the number of women in the group, who

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tend to score higher on measures of social intelligence. Add AI to the mix, and Malone believes that there’s power to harness the unique— and disparate—strengths of humans and machines. In addition to leveraging social perceptiveness, humans excel when it comes to “general intelligence.” AIs have recently advanced dramatically in “specialized intelligence,” which is a planet as a whole, is the responsibility and create a better world for the many, not just the few. supercharged complement to human of no single authority, government, abilities. Malone suggests that, or group. Climate change also “We need to move from thinking of presents unique challenges as a WHY THIS WORK HAS NEVER MATTERED MORE ‘humans in the loop’ to ‘computers “moving target,” for which linear in the group.’” or binary solutions are unlikely to In explaining why ongoing support While the disruption of familiar be effective. Hence the critical for MIT Sloan is so critical work systems and careers may relevance of platform technologies in creating tools to solve global indeed create an uncomfortable and distributed networks that challenges, Malone points out period of change—Malone suggests enable a scalable model for collective that MIT is unusual in the degree that in the long run, machine problem-solving. Malone cites to which it brings together deep intelligence holds the promise of the example of the MIT Center for expertise in technical fields with opening up human work roles that Collective Intelligence-created deep expertise in the human are higher value and potentially Climate CoLab, which just passed social and organizational aspects of more fulfilling. Since human the 100,000-member threshold. these challenges. He also cites the general intelligence still trumps “The Climate CoLab community quality of colleagues and resources AI, organizational leaders should is generating and evaluating across MIT, adding with a smile: not just be looking at ways to proposals about practical solutions “MIT Sloan is a supermind, and MIT make humans more skilled at using to different aspects of the climate is a supermind of superminds.” computers: Rather, he suggests, change issue, right now,” says Malone, As the donor-supported success will come to those who “from how to generate lowerMIT Campaign for a Better World make computer systems designed emission electricity to how to adapt continues to build momentum, to work and collaborate better to sea-level rise to how to change work like Malone’s will continue with humans. public attitudes.” Annual contests to have unique potential and allow the world’s leading experts value—and a specific affinity with to frame the problems, and judge the strengths of MIT Sloan and SUPERMINDS IN SERVICE OF A BETTER WORLD the solutions, sent in from this the Institute. Ongoing work on collective supermind: Many winning unlocking collective intelligence— Malone’s research points to the and creating more effective many ways collective intelligence can proposals have been developed and—according to Malone—are superminds—bears directly on be applied to create the resilient, already having a big impact in the collaborations between humans tech-empowered organizations the world today. Armed with everand machines, governments and of the future. But no less important improving new technologies, these NGOs, and public and private sectors. for Malone is the application kinds of scalable, platform-based MIT is the place to tackle humanity’s of superminds to solve the grand, supermind collaborations hold most pressing challenges. And complex challenges of our time, a virtually unlimited potential to with the continued support of alumni, such as climate change—a threat take on planetary challenges— this work is only just beginning. which, though relevant to the entire

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Humans remain the most critical element of our systems—and advances in AI technology present an unparalleled opportunity to create the most powerful “collective intelligences” ever.

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T ransforming workplaces into thriving, diverse innovation ecosystems.

Building ever-more inclusive workplaces isn’t simply a matter of business ethics or social responsibility: It’s a key to unlocking the innovations needed to address humanity’s most pressing challenges. As empirical research, coupled with advancing technology, allows us to build more just, more equitable — and often more profitable — workplaces, organizations and companies have more options than ever before to create themselves anew for the 21st century: as thriving, diverse, and innovative ecosystems.

BUILDING BETTER

On the Value of

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A BETTER WORLD IN THE MAKING

Inclusive Innovation

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“Diversity and inclusion are really good business. It’s good for your shareholders.

I take the view that corporations need to act, rather than just sit around and complain.”

Executive Chairman of Google parent company Alphabet, Eric Schmidt

NAMRATA KALA

The Invaluable Benefits of Teaching Soft Skills So-called “soft skills”—such as good listening, strong communication ability, and being a “team player”—have long been valued in the workplace and associated with long-term career success. But can these skills be taught—and do they actually translate into greater workplace effectiveness?

Namrata Kala, assistant professor of applied economics, shares an answer to these questions—in association with colleagues from Boston College and the University of Michigan.

MEASURABLE BENEFITS FOR WORKERS

In a randomized, controlled study of five manufacturing facilities in Bangalore, select employees were instructed in areas including communication, problem-solving/decision-making, time and stress management, financial literacy, legal literacy/social entitlements, and “execution excellence.”

The trained worker group was found not only to have developed a marginally increased income (0.5 percent), but also had improved opinions of themselves as workers.

Further, they saved more for their children’s education, took greater advantage of government programs, and were more likely to request training for “hard” skills. In short, training for soft skills showed promise as a potentially powerful tool to increase prosperity.

Creating a crowdfunding platform to catalyze Latin American entrepreneurship— and encourage inclusive innovation.

Aspiring Latin American entrepreneurs have experienced a specific unmet need in recent years: an accessible, easy-to-use space where they could meet and collaborate with early investors. Mexican native Maria Fernanda de Velasco, MBA ’17, had just the background—and depth of knowledge—to create a solution. After all, she had just spent five years analyzing companies in Mexico, Peru, Colombia, and Chile as a banking associate for Bank of America, Merrill Lynch, and HSBC. With the support of a 2015–2016 Legatum Fellowship, she channeled her financial and entrepreneurial experience into creating the Play Business investor platform— giving entrepreneurs access to the critical financing they need through an equity crowd-funding model.

Through Play Business, Fernanda de Velasco has helped more than 100 early-stage startups to raise money (~USD 7M), which in turn have created more than 1,500 jobs in the region.

ROBERTO FERNANDEZ

Increasing Diversity the Old-Fashioned Way Referrals are one of the primary means by which people find jobs—often unintentionally perpetuating the exclusion of traditionally underrepresented groups, including women. But, Roberto Fernandez (William F. Pounds Professor in Management and professor of work and organization studies) suggests this very phenomenon may be turned on its head to actively increase diversity.

FIND THE RIGHT INTERNAL CONSTITUENCY

The key, explains Fernandez, lies in measuring and incentivizing the referral rates of different groups within an organization: Since some groups will recruit more heavily than others, eventually the makeup of a workforce comes to reflect that disparity. Research documents instances where immigrant groups have gone swiftly from being a workplace minority to a majority, simply because they refer and recruit more actively through their community networks. Although Fernandez’s work (in collaboration with Brian Rubineau, SB IX, XVIII, ’93; PhD, XV, ’07, of McGill University) focused on gender diversity, their research indicates that the same approach could usefully be applied to referrals based on other employee characteristics— including race, ethnicity, or disability.

Bringing the power of online learning to emerging markets—and the whole world.

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On-demand learning, such as that offered by MITx, can be a critical tool in bringing education and opportunity to people all over the planet. But in emerging markets, these “free” videos aren’t free: Hidden costs include not only a computer, but also purchasing bandwidth that can cost a day’s salary for an hour of poor-quality streaming video. That’s why Sam Bhattacharyya, MBA ’16 (with his partner Tunde Alawode) founded Dot Learn: Using technology they created while at MIT, Dot Learn reduces the file size of educational videos by up to 100x, so that they can be accessed reliably—and affordably—on inexpensive smartphones and 2G connections.

Working with several companies in West Africa, they have already brought online video lessons to more than 50,000 students. A graduate of the MIT delta v accelerator (and supported early on by funding from the Legatum Center, D-Lab, and MIT-Africa Initiative), Dot Learn’s goal is to expand access to online learning to those most in need of it. “We want to put online education into the hands of every student around the world,” says Bhattacharyya. “With this tech, students could download five hours of videos for less than the cost of sending a text message.”

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Unlocking Entrepreneurial Potential for All

Entrepreneurship is and has been a powerful vehicle for job creation, economic growth, and prosperity. But in the 21st century, it’s become something more:

one of the primary drivers of world-changing innovation.

Changing the world is an all-hands-on-deck charge.

So why does entrepreneurship exclude women from full participation, thereby leaving a potentially vast source of valuable new ideas sitting on the shelf and talent sitting on the sidelines?

In two words: unconscious bias. William Porter Professor of Entrepreneurship, Co-director of the MIT Innovation Initiative, and Associate Dean of Innovation Fiona Murray explains: “In the human brain, where we all do things quickly, we have lots of heuristics help us to make quick decisions with relatively little information and lots of uncertainty. Although that’s efficient that’s also when biases creep in.” Particularly in the high-stakes arena of pitching for venture capital, ingrained cultural prejudices regarding gender come to the fore.

Unsurprisingly, pervasive bias against women (and other underrepresented groups) in entrepreneurship and innovation has been extensively observed, and is now being frequently documented (as just one example, Murray cites her newest research into inventor demographics, revealing a mere 8 percent of U.S. patent-holding inventors are women). But now, asserts Murray, it’s time to do something about it.

From her research to new class offerings like “Innovation Engineering” designed to educate the future CTO to her work through MIT’s Innovation Initiative, Murray is on a mission to find, develop, and teach the strategies and skills that will most effectively combat bias and empower female entrepreneurs. She aims to create a more diverse, equitable, productive—and of course, innovative—entrepreneurial economy.

“When MIT backs this kind of transformative work, it gets noticed, and creates a big ripple effect.”

IDENTIFYING ISSUES, TARGETING SOLUTIONS

Murray has been studying and teaching innovation and entrepreneurship for more than two decades. But most recently, she has focused on the ways biases impact the awarding of capital in research grants, prizes, and early stage companies, and has been exploring novel and evidence-based ways to change assumptions.

In a study published in 2014, Murray and her colleagues conducted controlled experiments across three U.S. entrepreneurial pitch competitions, with each leading to a disheartening conclusion: “Investors prefer pitches presented by male entrepreneurs compared with pitches made by female entrepreneurs, even when the content of the pitch is the same.” More bleak still was the finding that attractive males were regarded as “particularly persuasive,” whereas physical attractiveness did not increase perceived credibility of female entrepreneurs.

“ONLY

HERE”: WHY MIT SLOAN ALUMNI NEED TO SUPPORT THIS WORK

the genders of the participants, yielding a similar result

As a designated priority area in the Campaign for a

and conclusion: Significant gender-based bias persists

Better World, supporting innovation and entrepreneurship

in judging the relative “credibility” of early stage startup

is a powerful mechanism to enable MIT Sloan to create

pitches. “Even when the identical words are used, in

impact. According to Murray, impact starts with “giving

these high-risk environments, participating evaluators

people the most extraordinary education we can.

found men more ‘convincing.’”

We’re right out front in terms of theory, and we need to

entrepreneurship, and investors looking to course-correct

keep funding research so we can actually discover what works—how bias is happening, and how to fix it.

around biases, do? Murray suggests a range of tactics,

Let’s give our students the skills and frameworks they

such as adapting the formats of pitches, including women

need to be as effective and inclusive as they can be.

as decision-makers and evaluators, and testing varied

That takes resources.”

methods of evaluation. Murray alludes to the example

Murray adds, “There are lots of pieces in this

of a recent MIT Hackathon, in which pitches were

puzzle that require continued support, from research to

evaluated through a diverse set of methods ranging

redesigned hackathons, inclusive innovation challenges

from a “wisdom of crowds” voting category to a panel

to inculcating inclusive, innovation-driven entrepreneurship

review. Each evaluation method yielded distinct outcomes,

beyond MIT Sloan. We’ll need to keep trying things out

and generated a wider range of ideas from diverse

and experimenting to stay on the frontier of both thinking

participants.

and doing.”

Significantly, Murray reminds employers to look at

Down to her core, Murray believes in MIT Sloan’s

bias correction as being as much about driving innovation

unmatched credibility (and demonstrated ability) to steer

as it is about leveling the playing field. Beyond creating

change in a way no other institution could. “It’s incredibly

more diverse and inclusive organizations, a strong incentive

important that we do work like this here. We’re seen

is to yield superior business outcomes in the form

as exceptionally rational. When MIT backs this kind of

of harnessing ideas that might not otherwise see the

transformative work, it gets noticed, and creates a

light of day.

big ripple effect.”

“I ask employers: Consider best practices for inclusivity

In short, the kind that not only could cascade into

not just through the lens of HR, but also through that of

organizations, but also could change human behavior

your R&D and innovation organizations.”

for the long term. And for the better.

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So what can employers looking to facilitate inclusive

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In an accompanying online experiment, Murray and her team took a pitch video and altered it to reverse

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Creating a More Innovative and Inclusive Future

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A BETTER WORLD IN THE MAKING

“We have only scratched the surface in terms of reaching the number of talented people we’d like to reach with the IIC—and scaling up to truly have a global impact.”

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MEASURE DIGITAL IMPACT

Working within MIT’s own innovation ecosystem, Brynjolfsson has found himself in a unique position both to examine the real-time invention of new technology— and to explore its effect on human lives, economies, and institutions. “With groups like CSAIL, the MIT Media Lab, and the Digital Currency Initiative, advances are happening around here every day,” Brynjolfsson says.

“My work is designed to address the question of how these technologies affect the economy and society.”

As a critical complement to his research examining how AI and machine learning inform work in the 21st century, Brynjolfsson explains that one of his current research priorities is devising new metrics to measure the digital economy with far more precision than previous yardsticks like GDP, which, he points out, excludes zerodollar goods and services. He adds that ongoing support (from sources like the Capital Campaign) for this new research remains critical to develop a system to assess the widespread economic impacts—and opportunities for broadened prosperity—in a digital world.

RECOGNIZING, HIGHLIGHTING, AND REWARDING INCLUSIVE INNOVATION

Beyond measuring the inputs and impact of the digital economy, Brynjolfsson is the lead champion behind the MIT IDE Inclusive Innovation Challenge (IIC)— an effort supported by many gifts, such as those from Eric and Wendy Schmidt, Gustavo Pierini, SM ’87, Walmart, and the Rockefeller and Joyce Foundations.

The IIC is a competitive challenge designed to reward those entrepreneurs and organizations working to create shared prosperity.

Brynjolfsson drew inspiration for the IIC from the DARPA Grand Challenge, which steered the development

MAKING AN IMPACT TODAY . . . A ND TOMORROW

Already, IIC entrepreneurs are creating approaches that have measurable impact. As a recent example, Brynjolfsson cites Cambridge-based Iora Health, which has developed a successful system for healthcare providers that matches algorithm-based predictive power with human coaching to help patients stick with their treatment plans. This new system has led to significant improvements, including a 30 percent reduction in health expenses, higher compliance, and better outcomes for patients, all while leveraging the best of both human and machine skills and creating new work opportunities.

Iora Health gives coaches who might not have a medical degree a key role in improving healthcare delivery, providing a new kind of job and a new kind of benefit.

Increasing the IIC’s scale is now a key goal for Brynjolfsson. “There’s no one silver bullet that will create shared prosperity; it’s about letting millions of entrepreneurs and individuals come up with novel approaches.” This was one obvious reason for the recent expansion of the IIC beyond American shores, in addition to the avid demand from entrepreneurs around the globe. Winners from each region will convene to compete for a Grand Prize in Cambridge this fall.

“We have only scratched the surface in terms of reaching the number of talented people we’d like to reach with the IIC—and scaling up to truly have a global impact.” Right now, Brynjolfsson believes that creating more inclusive innovation represents a unique chance at a unique moment: a chance to actually change the course of history. And that this is the kind of work that could only be steered and supported by the impactdriven leaders of the MIT Sloan community.

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CORRECTING THE BLIND SPOT: CREATING METRICS TO

of some of the first autonomous vehicles. “I’d see grad students and assistant professors working nights and weekends, skipping meals . . . and honestly, it’s clear that the prize was a big part of turbocharging their energy and focus.” Intrigued by this example, Brynjolfsson worked to create a similarly motivating platform to generate breakthroughs in economic and societal applications of technology, rather than just the technology itself. Going into its third year, the IIC focuses on recognizing and rewarding individuals and organizations using new technology for the good of all people.

Brynjolfsson truly sees a role for everyone in creating shared prosperity, beginning with understanding a key principle: “We can steer and choose the way technology is used. It’s a tool: and like all tools, its effects depend on its applications.” Once we recognize that the tools of technology are ours to control, he argues, we then can realize our tremendous collective power to shape the world in a way that aligns our actions with our values.

MITSLOAN.MIT.EDU/CAMPAIGN

As Schussel Family Professor of Management Science Erik Brynjolfsson would be the first to tell you, we are living at a remarkable time. In his studies of the effects of AI and automation on the economy, Brynjolfsson and his colleagues see the unlocking of new wealth and potential for raised standards of living, worldwide—all on a scale not witnessed since the Industrial Revolution.

Yet for all the evident wealth at the top, vast segments of the workforce have been excluded from the equation.

Nearly every advanced economy faces serious issues of inequality, and the developing world faces even greater disparities. In his role as director of the MIT Initiative on the Digital Economy, Brynjolfsson has turned his attention to the creation of powerful, scalable ways to channel technological innovation—and the enthusiasm that drives it—to benefit the many, not just the few.

15

Devising social and civic-minded business models to improve prospects for workers and humankind.

More than ever, technological advances—and systems-based thinking—are allowing both entrepreneurs and established companies to create new models for business, purposebuilt to provide more humane and civic-minded results. For all of humankind to prosper—and share equally in the emerging rewards of unprecedented technologies— governments, organizations, and corporations alike need to discard long-held assumptions. The future of work can be one where rewarding, meaningful jobs go beyond increased profit, toward greater human fulfillment.

ANTOINETTE SCHOAR

Using Behavioral Science to Help Workers Thrive Many systems across society are designed to work as if human beings were “rational actors,” weighing evidence and making decisions based on logic and self-interest.

However, both common sense and recent research suggest that this is anything but the truth. Enter ideas42: a nonprofit consulting firm co-founded by Antoinette Schoar, Michael M. Koerner (1949) Professor of Entrepreneurship and professor of finance— and two colleagues from Harvard and Princeton—with the ambitious mission of using “the power of behavioral science to design scalable solutions to some of society’s most difficult problems.” Their work for companies, governments, and educational institutions worldwide is not only advancing behavioral science, but also showing new ways

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A BETTER WORLD IN THE MAKING

organizations can become more effective and help individuals make better decisions.

16

IDENTIFY THE HIDDEN OBSTACLES

In work with the International Finance Corporation and the World Bank, ideas42 applied behavioral insights to help small businesses make better financial decisions.

They successfully used mobile phone based training modules to teach small and medium-sized enterprise owners simple financial heuristics to calculate their profits, optimize trade credit, or improve their product distribution. They also designed a program to “nudge” federal employees to save more for retirement, and helped the unemployed find new jobs more quickly with simple, timely email campaigns.

Empty nesters and students in need of housing can solve one another’s needs—through an innovative new approach.

Aging residents of Boston want very much to stay in their own homes, but need help with simple things like home maintenance—and companionship. Grad students need affordable housing. Put them together, and you have Nesterly: the brainchild of MIT alumnae Noelle Marcus and Rachel Goor.

According to a recent report, retirement-age boomers in metropolitan areas across the country have 3.6 million spare bedrooms—with 90,000 of them in Boston and Cambridge, where the need for student housing seldom ever declines. “Boston has an ideal demographic for this, because there is a huge student population and the housing supply is very constrained,” says Goor. Twenty-five participants are currently piloting the initiative through a partnership with the City of Boston. “It’s going great,” says homeowner

Brenda Atchison, a current participant. “I’m an empty nester,” she explains, and says her student tenant, a visiting MIT PhD from Greece, “brings a presence into my home that makes it feel so much more alive and full.” Initially receiving support as a winning idea in the IDEAS Global Challenge and developing further as part of the inaugural MIT NYC Summer Startup Studio run by the Martin Trust Center for MIT Entrepreneurship, Nesterly is currently working with the MIT Alumni Angels of New York in seeking funding.

BUILDING BETTER

“At MIT, we are deeply engaged in defining the current problem and forecasting challenges ahead.

And we are urgently seeking allies who want to join in developing creative, collaborative solutions—and in building a future in which technology works for everyone.”

MIT President L. Rafael Reif

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In sub-Saharan Africa, a third of HIV-infected babies—left without treatment— die before their first birthday. Treatment is dependent on timely results from HIV tests, which in turn depend on a complex (and often inefficient) supply chain. Often the lag time for results can be as high as three months. And the result can be a death sentence for young children. That’s why MIT Sloan’s Jónas Oddur Jónasson (assistant professor of operations management) and colleagues undertook a landmark study—as part of the MIT Sloan Initiative for Health Systems Innovation—to identify ways to speed up not only lab procedures, but also the supply chain itself. Testing has traditionally been distributed through a network of 400 clinics and four labs throughout the country, leading to both misused resources and unacceptable time lags. Jónasson and colleagues modeled the operational, medical, and behavioral aspects of the system and concluded that consolidating all diagnostics in a single lab could decrease average turnaround times by an estimated 22 percent. This would increase the number of infected babies initiating treatment by 7 percent—potentially saving the lives of up to 50–60 children per year in Mozambique.

On the Evolution of Work

MITSLOAN.MIT.EDU/CAMPAIGN

Better operation modeling for improved public health: shortening the window to treatment for HIV-infected infants in Africa.

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A BETTER WORLD IN THE MAKING

The High Road to Sustained Prosperity

18

For all the long-term economic opportunities created by the rise of the digital economy, many business leaders today are still reaching for dramatic margins and fast growth. Meanwhile, the global workforce has been pushed into a post-unionized era, in which workers’ influence has been tempered to the point of obsolescence. Without a seat at the table, the people have started to lash out politically: witness Brexit, widespread anti-immigrant sentiment, and the tenor of the 2016 U.S. elections. These deep divisions in society, and the growing economic inequality that drives many of them, must be addressed. Research at MIT Sloan, spearheaded by Tom Kochan—George Maverick Bunker Professor of Management and co-director of the MIT Sloan Initiative for Work and Employment Research— and colleagues, supported by donor grants, are seeking to do just that: unlock implementable solutions to bridge the growing divide between business leaders and labor.

Kochan, a leader in the Good Companies, Good Jobs Initiative funded by the Hitachi Foundation and a prominent voice in the MIT Initiative on the Digital Economy, insists that we need a new way of operating.

According to Kochan, “What we need is a new social contract at work: a better way to collaborate so that all stakeholders—labor and management—see the benefits they need. And we can’t really wait on slowermoving public policy and government interventions.

Business leaders need to be proactive right now.”

BUSINESS AND LABOR: CHALLENGES ON BOTH SIDES

“The enormous growth in inequality in our society is

simply not sustainable in a viable democracy,” argues Kochan. His research in 2015’s Shaping the Future of Work shows that inequality stifles economic growth, both by decreasing broad-based participation in the consumer economy and by restricting human capital.

For its part, labor has to contend with heightened responsibility for building new mechanisms to influence the issues most important to them, such as pay, hours, and working conditions. But workers must be empowered, recognized, and rewarded by employers in order for all parties to unlock the benefits of success.

“Both business and labor have a huge amount to gain from addressing issues of inequality, wage stagnation, job security, and concerns that new technology will further increase inequality. More collaborative, inclusive organizations are a big part of the answer,” argues Kochan.

TAKING THE “HIGH ROAD”

In nearly every industry, Kochan’s research highlights examples of modern companies taking what he calls the “high road”: investing in and collaborating with their employees, while producing high enough productivity to afford the wages to hold on to talent and realize profit. From his research, Kochan cites Southwest Airlines, Kaiser Permanente, and Costco as examples of high-road companies that maintain a healthy bottom line while doing right by their people through wages, training, and ongoing development.

These labor and management strategies have been proven in the marketplace, Kochan explains, but we need far, far more of them.

“Business leaders all have to make the choice between short-term profitability and longterm success.”

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MAKING A DIFFERENCE AT MIT SLOAN

Ultimately, ongoing funding is needed to support the next generation of scholars and researchers working on providing constructive strategies for proliferating

high-road businesses. Kochan lauds the support of donors such as the Hitachi Foundation to the Good Companies Good Jobs Initiative; Jean-Jacques Degroof, SF ’93, PhD ’02 to the Mary Rowe Fund; and Ed Hyman, SM ’69; Steve Denning; Joe Eastin, EMBA ’15; Jim Pastoriza, SM ’88; and Jeff Wilke, LGO ’93 to the MIT Initiative on the Digital Economy. The time for continued research and action is now: “The fact is that we’ve lost some of those opportunities and mechanisms for dialogue between the private and public sectors,” Kochan asserts, “and the world has taken a sharper turn. There’s never been a more urgent need for MIT Sloan’s leading thinkers to steer this work.”

MITSLOAN.MIT.EDU/CAMPAIGN

“It’s been conclusively proven that high-road companies yield sufficient profitability and shareholder value. But between a high-road and a low-road approach, only one of those options creates both good returns for investors and good jobs for employees in the long run. Business leaders all have to make the choice between short-term profitability and long-term success,” says Kochan.

19

A Unique PROMISE to Measure and Incentivize Widespread Prosperity As anyone who’s seen him speak can

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A BETTER WORLD IN THE MAKING

EMPOWERMENT THROUGH

economists would stop and dust off

MEASUREMENT

of Management Roberto Rigobon loves

their hands, Rigobon is just getting

In outlining the ambitious PROMISE

a good joke. But in macroeconomic

started. Not content with having

model, Rigobon explains that no one dimension of the model can be taken

circles the world over, Rigobon’s person

created what has been recognized as

and work command serious influence.

the world’s inflation gauge, he’s now

in isolation—or over-prioritized—

As the co-founder (with MIT Sloan

committed to isolating and defining

on the path to creating lasting health,

colleague Alberto Cavallo, Douglas

the metrics that will enable a better

wealth, and stability. “If we ask China,

Drane Career Development Professor

future—not only in economic terms,

for instance, to lower its pollution

of Information Technology and

but also for companies, workers,

levels, we’re actually asking them to

Management) of the “Billion Prices

and even societies worldwide.

Project” (BPP) and its commercial

20

Where many conventional

attest, Society of Sloan Fellows Professor

To that end (and with the support

lower their standard of living, which could in turn have unforeseen political

arm PriceStats, Rigobon is among the

of funds from the MIT Sloan

and social consequences. The

foremost researchers leveraging

community), he is in the process of

relationship between these elements

big data and newly available analysis

advancing what he calls the PROMISE

is always dynamic. One influences

tools to make economic measurement

framework—standing for Personal,

the others.”

But back to Rigobon’s fundamental

timelier and more precise than

Relational, Organizational,

ever before. In point: BPP monitors

Markets, Institutional, Sociopolitical,

obsession: measurement. As he

prices from hundreds of online retailers

and Environmental well-being—

explains, economic incentives respond

in over 70 countries to measure

to encompass “all the dimensions

to measurement—and if we can

inflation on a daily—not monthly, nor

that matter for true sustainability

better measure some aspects of

yearly—basis.

and prosperity.”

behavior, we can better work to

change behavior accordingly within

of value is the day you can start

all of the PROMISE categories. Within

to positively change the culture of

the “Organizational,” “Personal,”

your company.”

and “Relational” axes in particular,

He adds, wryly, and perhaps

Even more important, Rigobon is an advocate for work that translates into real-world impact. “Only at MIT do we produce research like this—

Rigobon is currently investigating

as further encouragement in his own

for the benefit of all,” he declares. As

the oft-buried institutional and

study, “Even as a hard-nosed

a key area of interest within the MIT

personal biases that truly limit

economist, I’d much rather measure

Sloan Sustainability Initiative (recently

performance, and conceptualizing

something relevant imperfectly

helped by a significant gift from

incentives that would help

than measure something irrelevant

John McEvoy, SF ’94), Rigobon’s work

organizations to correct them.

perfectly.”

As a timely example, Rigobon

with the PROMISE framework lines up directly with the Institute’s broader

cites his current work in conjunction

THE REWARDS OF TACKLING THE

sustainability goals. And of

with Sandy Pentland, Toshiba

TOUGHEST ISSUES

tantamount importance for him and

Professor of Media Arts & Science,

Rigobon is impassioned in his

his colleagues, the end goal is

to measure women’s empowerment

praise of MIT Sloan, and the Institute,

impact: not a paper, but the tools to

on the job. While certain

believing it the only place able to

change the practice of business.

straightforward aspects can be

solve the world’s most challenging

tallied up—the number of women

issues. “I would not be able to

here of the value of project-specific

in an organization, the number

do this work anywhere but MIT.” And

donations in support of his work. He

Rigobon makes special mention

of negative “extreme outcomes”

indeed, Rigobon is a personification

continues, “Work like PROMISE

(lawsuits or harassment complaints),

of the MIT Sloan doer. “Measurement

can only be financed by a community

and wage differences—he has found

seems like a boring discipline,” he

that has a shared vision. That’s

that these metrics aren’t themselves

laughs, “which could be why no one

what we have here.”

predictive of empowerment, nor

else is doing PROMISE. But the

are they meaningful enough to drive

challenge is what inspires me, and

guru like Rigobon—is of immeasurable

culture change. But using a systems

all of us here.”

value.

And that—even for a measurement

lens, he has started to cast light on a metric that he believes can influence better behavior. “It turns out that men are 5–7 times more likely to interrupt a woman than a man.

Women get 15 percent less airtime than men enjoy in meetings. Imagine an app that could track interruptions, and alert people about their behavior.

I believe that 99 percent of people would change that behavior immediately, if we simply measured it and made them aware of it.”

“Start measuring something more relevant to your organization, to your human capital performance, than conventional business metrics.”

These are precisely the kind of measures (and incentive systems) that Rigobon is tracking, and believes will add up to happier, more fulfilled workers and citizens, as well as

“Start measuring something more relevant to your organization, to your human capital performance, than conventional business metrics. And do it now, even if it’s imperfect.

The day you can measure something

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His advice to business leaders:

MITSLOAN.MIT.EDU/CAMPAIGN

better functioning economic systems worldwide.

21

Funding urban-focused startups to create real community benefits.

Government and non-profits shouldn’t be the only ones aiming to solve urgent problems like workforce development and transportation shortages: That’s why Julie Lein and Clara Brenner, both MBA ’12, launched an independent research study at MIT Sloan on the lack of “urban innovation startups.” They found such startups weren’t getting enough early funding from investors, and they weren’t getting the regulatory/political support they needed to thrive. So, upon graduation, the duo founded an accelerator focused on addressing these core challenges. This initial portfolio of investments was so successful, that Lein and Brenner went on to raise a more traditional venture capital firm, the Urban Innovation Fund. The fund provides seed capital and regulatory support to entrepreneurs solving our toughest urban challenges—helping them grow into tomorrow’s most valued companies.

Says Brenner: “Our goal is to show that strong financial performance and positive urban innovation go hand in hand.”

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A BETTER WORLD IN THE MAKING

Are organizations ready for the giant leaps that artificial intelligence and machine learning can provide their workforces?

22

In New York City, MIT Sloan’s recent Digital Economy Conference focused on bringing together leading thinkers on the future of work and artificial intelligence. Leaders, including Director of the MIT Initiative on the Digital Economy Erik Brynjolfsson, discussed the impact of artificial intelligence and machine learning on workforce development, measures of the economy, and the connection between humans and machines. Panelists on “The Impact of Machine Learning on the Workforce” described most businesses as focused on the incremental and cost-cutting measures afforded by new technology—those that can improve a worker’s daily productivity or enhance forecasting. When asked how workers can prepare themselves for artificial intelligence, McKinsey Global Institute’s Michael Chui said, “We don’t need to worry about mass unemployment as much as mass re-deployment.” Access to education around machine learning is more accessible than it ever has been, but there’s still much progress to be made. Across the private sector in the United States, for example, numerous incentives drive investment in traditional forms of capital, but far fewer incentives encourage investment in human capital.

ZEYNEP TON

The Case for Good Jobs While millions of jobs exist in retail, casual dining, call centers, hotels, and similar fields, they tend to have the same dreary negatives in common: low pay, few benefits, and no career path to advancement.

But according to more than 15 years of research by Zeynep Ton, adjunct associate professor of operations management (and co-founder of the non-profit Good Jobs Institute), a radically different “operating system” can transform these jobs into significantly more remunerative and satisfying careers, while making a company significantly more competitive. She calls it the “Good Jobs Strategy”—and the volumes of evidence she’s gathered on its implementation means leaders could begin making these changes today, with management, labor, and the broader economy reaping the benefits.

FUNDAMENTALS OF THE GOOD JOBS STRATEGY

• Creating a system of higher expectations from both

Ton’s research decisively shows that implementing a holistic system—

labor and management: At good jobs companies, front

one that addresses not just employee satisfaction and pay, but also

line workers are allowed to be productive, empowered,

a top-to-bottom revamping of inefficient, time-wasting processes—

and customer focused—with all the attendant benefits of

leads to better customer service, increases worker productivity and

customer loyalty and increased productivity. At bad

morale, and overall competitiveness. Important elements include:

jobs companies, HQ decisions waste employee time and increase workload variability, resulting in low wages and

• Ensuring two-way communication between HQ and front

workforce instability.

line stores: Successful Spanish grocery chain Mercadona works with vendors to create shipments that can be quickly

Besides low morale and poor service, bad jobs companies

shelved—and their logistics department gives stores short,

face massive operational disadvantages. Ton’s research

15-to-20 minute delivery windows so that receivers know

paints a clear picture of a bad jobs company: endless, costly

exactly when to be ready (versus inefficient, disruptive six-hour

turnover. Ton cites a company where 60 percent of call

delivery windows Ton observed at many “bad jobs” retailers).

center reps left within a year, costing the company $10.5 million annually.

However, the good jobs companies Ton and her team

• Empowering local leadership to feel like owners: Good jobs and bad jobs companies differ radically in terms of

have studied are thriving economically—with lower turnover

store managers’ roles and attitudes. “At the former, store

and better ROI per store: In the field of large retail chains,

managers feel like owners,” explains Ton. “They believe that

Ton found that increasing average employee hours from less

taking care of customers and developing their employees

than 15 a week to 30 decreased schedule variability,

are their most important tasks, and the operating system is

reducing employee turnover by almost half—and increasing

designed accordingly.”

sales productivity by more than 20 percent.

PAUL OSTERMAN

Managing Long-Term Care and the Long-Term Workforce As tens of millions of U.S. baby boomers

SHIFT EMPHASIS TO THE HOME

approach old age, the need for workers to provide

While home health care workers represent a large segment

long-term home healthcare will skyrocket. But

of the labor market and provide a critical service, they are

according to Nanyang Technological University

not rewarded accordingly. Osterman’s research suggests

Professor and co-director of the MIT Sloan

that reform of restrictive state-level practice rules, and

Institute for Work and Employment Research

additional training, could unlock huge potential in home

Paul Osterman in his new book, Who Will

health workers. “Work could be shifted from higher paid

Care for Us: Long-Term Care and the Long-Term

occupations such as nurses to home care workers; we’d

Workforce, reform of current policies and

save on unnecessary calls to 911 and ER visits; we’d

pay standards could combine to improve the

reduce the use of nursing homes. We’d also have better

situation for both patients and home health

care of long-term chronic conditions, since home health

aides—saving billions of dollars.

aides could be health coaches.”

A better world is our business.

The MIT Campaign for a Better World has been launched because we find ourselves at a critical inflection point worldwide. Technological, environmental, economic, and demographic trends are converging to present new—and complex—challenges. In the MIT community, complexity is our call to action. By harnessing the collective ingenuity of the school and Institute, we can take on the greatest issues of our time, if given the resources to do so.

The MIT Campaign for a Better World is

Because the Campaign is

structured around these crucial global topics:

dedicated to supporting

• Discovery Science

it means that every gift

• Health of the Planet

profound impact. Every

work to improve the world, to the Campaign has a gift is not only a gift to MIT Sloan, but also a

• Human Health

gift to the world.

• Innovation and Entrepreneurship • Teaching, Learning, and Living • The MIT Core

MILLIONS

$200

$100

$0 FY11

FY12

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A BETTER WORLD IN THE MAKING

$300

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*as of May 10, 2018

FY13

FY14

FY15

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FY17

FY18*

Together with the Institute, MIT Sloan is responsible for raising a portion of the total campaign funds across all groups within MIT. This means we need the help of people like you: alumni, colleagues, collaborators, and well-wishers who support MIT Sloan’s mission.

While our aims and goals align with those of the Institute, our responsibility is to fund efforts to bring our particular strengths to the Campaign—namely, applying management theory and practice to tackling the world’s toughest challenges.

While our fundraising is making strong progress, we are still in need of continued support: gifts directly to the Campaign, to the MIT Sloan Annual Fund (which also supports the Campaign), and to other important initiatives at MIT Sloan.

Be a part of the MIT Campaign for a Better World.

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