Rotman Executive Summary

"If AI didn’t offer such massive opportunities... we’d likely regulate it out of existence." On the latest episode of the Executive Summary, professor Dan Trefler explores the double-edged sword of artificial intelligence: Are the risks worth the rewards? Is bureaucratic red tape the solution — or just another hurdle? And how can the average citizen help fight the "great regulatory" battle? Show notes:[0:00] In 2023, tech leaders and academics signed a letter agreeing to hold off on future AI development until government regulation caught up…spoiler alert: it didn’t. [0:48] Five years ago, it would have been impossible to imagine where AI development was going to be today…what will we see in the next five years? [1:36] Meet Dan Trefler, a professor of economics and policy at the Rotman School of Management. [2:29] Regulating “Artificial Intelligence” is impossible. [3:50] What’s the 2025 state of affairs when it comes to regulating uses of AI? [4:29] Dan sees one region of the world regulating the tech use about as well as they can. [7:12] What is the competition problem? [7:48] What is the coordination problem? [8:29] What happens when we have competition and coordination working together seamlessly? [9:46] So why can’t AI regulations follow the same successful model as car regulations? [10:19] What’s the interpretability problem? [11:18] California’s failed attempt at regulating AI companies is the perfect microcosm of the challenges we face. [12:45] Where is the last place governments should regulate? [13:49] To get a handle on things now, Dan wants us to focus on (1) extreme risks; [14:28] (2) learning from other successful regulatory bodies like the FDA;[14:49] and (3) exploring regulatory incentives that encourage positive uses of the technology.[15:33] And citizens can help wage the great AI regulatory battle with their own personal choices. [16:03] “I'm asking people to be much more forward looking than we normally tend to be. I want them to start anticipating risks which don't exist yet, because when they do come, as we've seen with past changes in AI, they will come in such a flurry that we won't be able to shovel our way out of our own homes. So let's start thinking hard about regulating things on a precautionary principle, not because they've happened, but because they might happen.”

Extreme heat is reshaping daily life, but what does it mean for companies? Assistant Professor Nora Pankratz joined the Executive Summary to unpack the financial toll of rising temperatures on organizations, and what — if anything— companies can do about it. Show notes[0:00] The world is getting warmer, and it’s costing businesses.[0:37] Meet Nora Pankratz, an assistant professor at the University of Toronto Mississauga, with a cross appointment to the Rotman School of Management. She studies the impact of climate change on organizations.[1:48] One of the biggest risks of heat is its impact on production. [3:06] What does “heat exposure” even mean? [3:32] Heat – specifically days over 30 degrees Celsius – might be costing businesses an average of $650,000 per quarter. [3:54] And it affects indoor and outdoor industries alike, albeit in slightly different ways. [4:49] It also has an impact on investors…[5:39] …and supplier relationships. [7:39] How can businesses adapt?[8:40] Importantly, no one can really study what businesses are doing, since they aren’t sharing, nor are they required to share, their heat mitigation strategies. As a result, we don’t know what works, and what doesn’t. [9:17] Nora studied the impact of heat on worker safety, and the results weren’t great. [10:38] What’s driving heat-related injuries? [11:39] But a simple, low-cost heat-mitigation strategy – training to identify signs of heat stroke – had a huge impact. [12:35] So are businesses doing anything? Well…maybe? [13:46] Nora is hopeful: “Overall, I think over the last couple of years, there has been an uptake in this type of data and analytical work at the firm level. So, I think firms will explore this more and more going forward.”

In just four years, it feels like our workplaces have changed irrevocably. New technologies like AI threaten old jobs; shifting demographics bring new interpersonal challenges on teams; and our work location — be it home, the traditional office or a hybrid of the two — has become a flashpoint between leaders and employees. So what's the antidote? Professor Julie McCarthy joined the podcast to talk about resilience, why organizations should work to instill it in their teams, and how it can help us all move beyond burnout. Show notes: [0:00] The world has been a very stressful place, and some people are talking about burnout as the new baseline. [1:02] Meet Julie McCarthy, a professor of organizational behaviour and HR at the Rotman School of Management. She studies workplace stress. [1:20] Her antidote for a stressful life? Resilience. [1:44] How do you define stress, stress reactions and anxiety? [3:13] While a little bit of anxiety can be useful…[3:36] …too much is detrimental to your well-being. [4:23] What is resilience?[4:48] What chips away at your resilience? [6:10] How do you build resilience? [8:27] What does this look like, organizationally? [9:14] What does anxiety cost organizations? [10:30] Why a one-size-fits-all approach to resilience is destined to fail. [10:55] Step 1: recognize there’s a problem and commit to dealing with it strategically. [11:22] Step 2: Don’t waste your money fixing the wrong problem. [12:04] Step 3: evaluate, re-evaluate, and then evaluate again.[12:53] Be prepared: this is a big cultural shift for lots of organizations. [13:31] Questions to ask yourself to kick things off. [14:46] Look deeper: do you need to change procedures, the people you hire, or the types of training you offer? [15:42] It is a time and financial investment. [17:18] “But if it's done properly, it's not a matter of, will it work, but it's just a matter of when.”

Intellectual property may not be glamorous, but it’s essential to future business success. Professor Alberto Galasso explains how the right IP strategy can drive growth — or hold your business back— on the latest Rotman Executive Summary.Show notes: [0:00] There are a lot of factors that go into whether a company is innovative or not, so  much so that Professor Alberto Galasso wrote a book on the topic. [1:50] But he warns that people often overlook the importance of IP to the innovation process. [2:25] Let’s define IP, copyright and patents. [3:52] The importance and value of IP has ballooned over the past 20 years. [4:48] Today, it’s something companies big and small are increasingly reliant on.[6:06] How often do patent applications succeed? How often do they fail? [6:58] To get your IP and innovation strategy right, you have to know the overall goal of your organization, and you should think about it early and often. [8:44] Is IP protection even the right approach? Or should you consider trade secrets? What are the trade-offs?[10:59] How can you use IP data to boost innovation? [12:31] And how can you use IP protection like patent filings to incentivize workers? [13:41] What is absorptive capacity, and how does IP protection allow organizations to tap into this critical element of innovation? [15:18] “So from that perspective, it is a crucial asset to this intellectual property to protect the area that are more valuable of your company, but also to share technology and access technology with other firms for which you want to collaborate.”

As companies wrestle with the return-to-office debate, it’s crucial to ask: How much does location really matter for innovation? Surprisingly, where you work can significantly shape how—and how much—you innovate. Assistant Professor Ruben Gaetani dives into the research, revealing why dragging everyone back to their cubicles could stifle the very creativity you’re trying to spark.Show notes[0:00] Downtown offices are in the midst of an identity crisis. As vacancy rates rise, some leaders are demanding workers return to their towers to strengthen culture and innovation. [1:11] Meet Ruben Gaetani, an assistant professor at the University of Toronto, who specifically looks at how office location influences innovation strategy. [2:22] What is conventional versus unconventional innovation, and how do they differ? [3:48] You’re most likely to see unconventional innovation in dense, urban environments, while conventional innovation thrives in the suburbs. But why?[5:53] How should leaders be thinking about office location in relation to their innovation strategy? [6:44] Don’t discount conventional innovation: it plays an important role in company growth.[7:27] But don’t get stuck chasing iterative innovation; make sure you have a strategy for unconventional ideas too. [10:21] If you’re calling people back to their downtown office cubicle, ask yourself: What kind of innovation am I actually chasing…and is an office tower really helping my team meet strangers? [11:48] Downtowns might be dense, but they are not the dense, urban environments that Ruben is talking about. Instead, he says companies chasing unconventional innovation should look for places that encourage random encounters. [13:07] If innovation is the goal of your office strategy, there are some questions to keep in mind. [13:48] Post COVID-19, it’s a great opportunity for businesses and policy makers to reflect on how companies influence their surroundings, and vice versa; Ruben has some not-so-great research to share.[14:36] What can policy makers do to alleviate this negative gentrification of innovative tech clusters? [15:26] And why should business care? “We have been observing in some instances, tech firms, innovative firms are consider by the public opinion as responsible for these negative effects they have on local communities. It reduces their ability to attract talent if a location is extremely segregated. And it reduces the amount of diversity and richness of interactions that firms have in their geographical location.”

From issues of bodily autonomy to climate change to social equality, the world is increasingly polarized, and even companies can't escape hot-button topics. While once, organizations could keep their positions on divisive issues to themselves, consumers are demanding they take sides. But should they? And how can brands weigh in without alienating the people who disagree with their stance? Assistant professor Rhia Catapano explores how businesses can navigate these polarizing topics on the latest episode of the Executive Summary. Show notes:[0:00] In 2022, Disney and the state of Florida became embroiled in a polarizing debate over the state's alleged "Don't Say Gay" bill, which Disney opposed, albeit belatedly. [0:56] Once, businesses could stay silent when hot topics arose, but today consumers are demanding they take sides. [1:32] Meet Rhia Catapano, an assistant professor at the Rotman School of management who studies consumer persuasion. [2:20] Brands most often worry about consumer boycotts when they take stances their audiences disagree with. But that worry might be misplaced. [2:49] Consumers tend to buy from companies when it's inconvenient to maintain their boycott. [3:14] We're also likely to change our memories, thinking we boycotted a product, even when we still loaded it into our carts. [6:10] And we often believe signaling our intentions to boycott is "enough," so we feel less guilty even as we're purchasing items from a brand we've said we'll avoid. [7:36] So if we're so bad at boycotting, why should businesses care? For one, the reputational hit is very real. [7:51] There are always cases where brands don't have to worry - particularly when the audience boycotting the brand isn't it's target audience. See Nike, Colin Kaepernick and the social right in the U.S. [8:31] But when the audiences align, boycotts are particularly effective in this age of social media. First, because social media makes it easier to propagate messages. [9:23] Second, social media creates a "safe space" to share polarizing opinions. [10:10] So how can companies navigate hot button issues? First, make sure you're not being a hypocrite. [10:49] Consider how you frame your stance around an issue, and what you want to achieve by making public statements. [13:08] Be real about whether you can take the heat. [13:58] And consider new audience opportunities when your values don't align with your existing customer base. "It makes the most sense for the company to stick to what are their core values and what can they do that will align with what they've done in the past and what they want to do moving forward, rather than trying to please everyone.

We often reach adulthood without ever being taught how to process our emotions. But an unprocessed emotion never goes away; it simply festers and grows. Associate professor Maja Djikic joined the Executive Summary podcast to talk about how to identify if we're bad at processing our feelings, how we can get better at it, and what role organizations have in helping their leaders and teams understanding that skillset. Show notes[0:00] “A lot of discussion on managing emotions has to do with how to make emotions go away.  Usually they're seen as something negative, something you don't want to have. This is why being called emotional seems like an insult.”[0:48] Meet Maja Djikic, an associate professor at Rotman who studies adult development and authored the recently released book, The Possible Self. [1:18] If there’s one thing she wants you to know about emotions, it’s that an unprocessed emotion never goes away. [1:36] Emotions are tied to our goals, and when we ignore them, we might be missing out on important information that helps move our lives forward. [2:05] What is an emotion? [2:30] How are our emotions tied to our goals, and how does this present itself?[2:53] Positive emotions reinforce that things are going well. [3:10] Negative emotions might tell us something is wrong on our path to our goal. For example, fear might tell you that you’re afraid of getting fired, and that your relationships with colleagues have gone amiss. [4:15] People are bad at processing and understanding their emotions. [4:25] Some of this is evolutionary – our fight or flight instinct often kicks in when we have a strong emotion. [5:07] Let’s sidebar to explain the difference between processing and expressing emotions. [5:55] The other reason we’re bad at processing emotions is we’re likely never taught how.[6:45] The first step in processing emotions is to recognize you’re bad at it and work to improve that skillset. [7:16] The second step is to recognize you’re having a strong negative emotion and bring your pre-frontal cortex back online. [8:34] Step three is to identify what you’re feeling and try and link it back to the goal you’re trying to achieve. [10:11] Why does this matter for a workplace? Leaders who can’t process emotions create toxic environments. [10:55] Learning to process feelings should be top-down. [11:17] As a leader, how can you help your team better process their emotions? [13:10] And when those around you can’t or won’t learn to process their emotions? “If you're in a situation where the leadership is not interested at all and processing there. So then that becomes a choice for you to stay or to leave. There’s all these people around me they're doing a lot of negative expression because they're not able to process. They don't seem to be interested in anything to do with processing in education. Okay, well, how long do I want to hang out here?

A recent study from BMO found that Canadians believed they would need more than $1.7 million to comfortably retire. Yet many individuals nearing retirement have less than $100,000 saved. Why is thinking about saving - even when you have the means - such a daunting prospect? Assistant professor Avni Shah joined the Executive Summary to explain the behavioural barriers to retirement savings, and showcase some of her research into how we might overcome these blockers. Show notes[0:00] Retirement is a rich man’s opportunity, and many people don’t feel they’ll ever have the luxury. [0:30] Meet Avni Shah, an assistant professor of marketing who studies how and why people make financial decisions. [1:14] People probably aren’t saving enough for retirement, even if they understand conceptually that they need to save more. [2:08] Why? Well, we have a bias towards dealing with the needs of today…[2:35] …the future is hard to imagine… [3:07] …and it’s cognitively costly to think about ephemeral things like money when it’s so far into the future. [3:33] Finally, the narrative around retirement – living your best life – might not be effective for large swaths of the population. [5:35] Avni partnered with Ideas 42 and the Mexican government to help increase the rates of voluntary retirement contribution. They devised three experiments. [5:46] How the Mexican pension system works. [6:18] How does beautifying a form impact retirement savings? [8:20] To increase your desire to save, tell yourself a story about your future. [9:40] Sometimes what’s requires is a shift in messaging. Instead of selling the idea of “saving for your future,” companies might want to consider selling the idea of “saving for your family’s future.” [11:58] But it’s important to remember that any behavioural nudge is going to be contextual, and there’s no one-size-fits all approach. [12:48] Simplifying information can also backfire if the info that’s left is demotivating. [13:34] And, for individuals, picturing your life in retirement can be a huge motivator for squirreling away a bit more cash. [14:06] “It makes it easier to see and it's something that is beneficial to them to say okay, that in conjunction with then making it savings automatic and can be tremendously valuable in encouraging people to save and really living in a way that they're not scared about the future.”

Phony stars and false testimonials are rampant online. But is this really a problem, how did we get here, and what responsibility to e-commerce platforms have in addressing the problem? Assistant professor Shreyas Sekar explores what the future of reviews looks like, and why platforms like Amazon should probably take the issue of fake reviews more seriously. Show notes: [0:00] When you see thousands of version of the same product you’re looking to buy online, how do you parse through the options to make a selection? This is where reviews come in. [0:46] Shreyas Sekar, an assistant professor at the Rotman School of Management/University of Toronto Scarborough studies how consumers make choices online, and how these choices can be manipulated.[0:59] More than 29 million Canadians made an online purchase in 2022 – and with that comes inevitable fraud. [1:23] Fake reviews are likely a billion-dollar industry. [2:08] A quick brief on how Amazon shows you products in your search results, and why results near the top of the search are more likely to get purchased. [3:31] Reviews play a crucial role in helping sort the rankings, with products with more plentiful and favourable reviews landing higher in the results. [3:57] Estimates peg phony reviews and algorithm manipulation between four and 40 per cent. Shreyas suspects it’s somewhere in the middle. [4:14] Why is this a problem? [5:29] Consumers are likely also buying products on false information, resulting in a substandard experience, likely costing $150 million a year. [6:07] This is likely to erode trust in the entire online buying ecosystem.[6:49] So how did we get here? Let’s look first at how we used to shop a few decades ago.[7:17] Amazon changed the game, first by offering online shopping, but second helping popularize the “marketplace.” [8:02] What is a marketplace? [8:44] How did the marketplace create an even greater reliance on reviews?[9:14] And, in the current system, e-commerce platforms have little incentives to fight this issue.[9:36] Fake reviews have gotten very sophisticated.[10:58] So what can consumers and small businesses do? [12:25] How can AI be utilized to help solve the problem of fake reviews? Shreyas has two suggestions. First, it can create a Coles’ Notes for consumers. [12:56] Second, it can be used to create some randomness. [14:11] Why does it even matter? “Algorithms play a huge role in our life, which means that we have to critically examine this pipeline, in terms of the different ways in which humans can manipulate the algorithms to do their bidding.But when you trick the algorithm, you're not just tricking one consumer, you're tricking 1000s of future consumers, who are going to rely on this algorithm for the purchasing decision.”

Research tells us we're probably not as good at gift giving as we'd like to think. Assistant professor Cindy Chan joined the Rotman Executive Summary podcast to explore the science behind better gift exchanges, how we approach the process asymmetrically, and how presents can actually change - and improve - our relationships. This is an episode you'll definitely want to unwrap ahead of the holidays. Show notes: [0:00] How confident are you in your gift-giving game? [0:55] Meet Cindy Chan, an expert in gifts, experiences and relationships.[1:15] Social norms make gift giving a complex dance. [2:49] Gifts play a role in a system of reciprocity in our society and play a part in building an strengthening our relationships. [3:44] What are the three stages of gift giving?[5:25] Gift giving is asymmetrical - take gifts given out of guilt. [6:44] To give better gifts, stick to wishlists. [7:53] Think about desirability versus feasibility.[8:30] As a giver, remember the gift isn't about you. [9:07] To really build or strengthen relationships, give the gift of experiences. [9:35] The emotions we feel while enjoying that experience is what's socially connecting. [10:44] Bonus: The giver doesn't even need to participate in the experience for it to work. [11:20] That being, shared experience that help you learn, grow or experience something new - typically an active experience - are more socially bonding when shared with another individual. [12:15] Always remember feasibility versus desirability, and keep the recipient's age in mind as well. How people define "happiness" changes as they get older. [13:00] Ultimately think about what you hope to achieve with the present. [13:24] "If you're looking to foster relationship with someone, give an experience rather than a material thing. Give an experience that is emotionally evocative to consume. And if you can share that experience with someone, give them something that's active to share so that you can you know, grow together and as a result grow closer together."

Even as they wrap their heads around AI, business leaders and organizations should be devoting some R&D resources to quantum computing. Though it's still a nascent technology, Professor Francesco Bova joined the Executive Summary to explore the huge potential economic benefits of the new form of computing, and explains why every business should be getting themselves "quantum ready" today.Show notes: [0:00] A new technology is waiting on the sidelines; quantum computing is poised to be worth trillions. [0:23] Meet Associate Professor Francesco Bova, who has been studying the economic potential of quantum for the past five years. [0:45] And he believes now is the time for businesses to get themselves quantum ready. [1:14] What is quantum, and how is it different from classical, or traditional computing?[1:58] The real potential benefit of quantum is speed and it's ability to solve "intractable" problems - that is problems too large for a traditional computer. [3:26] What is the quantum advantage?[3:56] Quantum is in the noisy intermediate scale; it's not fault tolerant, must operate in very specific conditions and isn't commercially available. But it can work, and people are using it in a "hybrid" approach. [5:00] And both public and private investment is flowing.[6:28] A big reason is the "threat" that quantum might break the encryptions that currently underpin much of our secure digital activity, like banking or health data. [7:25] But it may also be a boon for industry, particularly pharmaceuticals, chemicals, automotive and finance. [8:20] It could, for example, be a way to speed up drug discovery. [9:00] And it has a number of applications in the data-heavy finance industry. [11:27] A number of businesses are currently playing around in this space using the hybrid approach. [11:57] So how should businesses get "quantum ready"? Step one: identify your pain points. [12:56] Step two: consider experimenting with the hardware or partnering with a company already in this space. [13:48] Finally, explore a formal education or boot camp on the topic to get up to speed. [14:00] "I would argue that in most cases, especially for larger companies, the opportunity cost of spending a bit of time doing these things is comparatively small, relative to maybe even the short-term benefit you can generate from experimenting with this hardware."

Professor Walid Hejazi joins the Executive Summary to explain the macro-economic trends keeping the economy chugging along and kept us out of a recession (so far), and why they might be detrimental to our economic health.Show notes: [0:00] In 2022 and 2023, talk of recession was everywhere.[0:20] Historically, when central banks raise rates to fight high inflation, recession follows – though this hasn’t been really tested since the 1980s, according to professor Walid Hejazi.[1:17] And as of October 2023, despite numerous predictions of a recession, none have come to pass. So does that mean we’re economically in the clear? And why is that potentially a bad thing for Canadian prosperity?[2:45] Important caveat: We interviewed Walid in August, recorded the rest of the episode in mid-September, and it airs in October, and while the economy moves slowly, it can sometimes move quickly and in unexpected ways.[3:27] What is the technical and practical definition of a recession?[3:47 Does Canada meet either of those definitions? No – we saw growth in GDP and jobs in the first quarter, a small contraction in the second quarter, and net gain in jobs in that same time period. [4:20] Why did everyone think we were headed towards a recession? Because history tells us that’s the way it is.[4:47] And the leading indicators have all been pointing that a recession is imminent.[5:30] But there’s growing optimism that the central banks will have achieved a soft landing.[6:15] Economist are surprised. They predicted the rate hike cycle would slow the economy. It did, but not as drastically as expected.[6:38] Walid believes there are four reasons we haven’t tipped into a recession yet: low interest rates for too long, the unexpected war in Ukraine, the government’s COVID stimulus and Canada’s immigration policy.[8:41] Are those sources of resilience a good thing? Maybe. But that resiliency might be detrimental to the long-term prosperity of Canadians.[9:13] Why do we have a hot labour economy?[10:03] How might our current approach to immigration cause a problem?[10:50] The heavy debt load as a result of COVID-19 means focus on growth spending takes a back seat to interest payments.[11:35] this is an opportunity for governments to think about the long term, but Walid doubts they’ll be able to think beyond the short-term.[12:11] 50 years ago, Canadians were third wealthiest by household, globally. Today, we’re 15th, and our PPP is about 30 per cent lower than the U.S.[12:45] This is a problem as we look to repay our debts. The wrong way to pay back debt if you want a prosperous economy, is to raise taxes; the right way is to make the existing workforce more productive and wealthier.[13:20] Walid believes Canada needs to fundamentally become more innovative and productive, and diversify into higher-valued industries.[13:48] To do that, we need to first remove protectionism;[14:03] Second, we need to decrease the burdens or credentialing on new immigrants;[14:25] And third, we need to remove the bureaucratic red tape that hinders innovation.[15:18] What we need, Walid says, is bold leadership.[15:49] “Bold leadership is thinking about what's best for Canada's future when it comes to prosperity, and implementing the policies despite the opposition or pushback they get from special interest. Without that bold leadership, a lot can change in 50 years. What kind of a country are we going to leave to our children?”

Four days of work, 100 per cent of the pay — that might sound like a fantastic idea for employees. But there's a lot of benefit to a reduced work-week for employers as well, says professor John Trougakos. He joins the Executive Summary to talk about why a four day work week is  better for employees, what it means for organizations, and how companies can actually make a shorter week work. Show notes[0:00] In February 2023, news broke that a wide-scale experiment that shortened the traditional five-day work week to four days – without an associated reduction in pay – was a success. [0:50] 91 per cent of the participants in the experiment decided to continue, reporting that their employees were happier, more engaged and more productive.[1:12] Meet John Trougakos, a professor of organizational behaviour and HR management at the University of Toronto. He’s an expert in employee well-being, productivity, and recovery, and he’s been studying four-day work weeks for years. [1:44] His research is conclusive: to increase performance, companies need to give employees a break. [1:52] So as companies look at their post-COVID office structure, what does this mean? [2:27] How did we get to five days in the office, and has a four-day work week been tried before? [3:08] Those previous attempts failed because they tried to compress 40 hours into just four days. In comparison, the latest attempts are experimenting with a 32-hour week, which might be why it succeeds now. [3:55] Studies show that business leaders are increasingly on board. [4:32] And the pandemic proved to be a massive change management experiment, showcasing that things can be done differently…so businesses are more open to trying something a little different. [5:32] That’s probably important since employees want a shorter work week, especially as burnout continues to rise. [6:24] Burnout is costing businesses billions each year. [7:04] What is emotional exhaustion, and how does it manifest? [8:22] Time off and breaks play a crucial role in emotional exhaustion and burnout recovery.[9:52] So a four-day work week might be a great opportunity for businesses to give their employees time to properly recover. How do you go about implementing it. [10:03] You have to talk to employees and don’t be afraid to seek outside help.[10:46] Approach a four-day work week like a big change management project – it’s a great opportunity to find new efficiencies as well.[11:58] And don’t forget to communicate – to everyone – how you’re going to pull it off. [1:21] Avoid the pitfall of doing the work and not rewarding your employees. [12:59] If a four-day work week doesn’t work for your company, consider alternatives that still give your employees a meaningful break. [13:51] Companies are made up of people – they are your most important asset. So treat them well, and they will give back to you. [14:37] “We don't want to just keep weighing people down, if you can find an opportunity to reward people for their efficiency and their productivity and their performance. People will give back more at the end of the day.”

With challenges including continued upheaval from the pandemic, political and global instability, a changing workforce, new technology, and more, the makeup of the board of directors — and it's ability to shape and influence organizational responses when things go wrong — is more important than ever. And it's crucial to ask: do boards have the right talent at the table, and what it will take to build a better one? Show notes[0:00] Drama is best kept out of the boardroom because when you hear about it, it’s probably no small issue[1:03] Meet Aida Sijamic Wahid, a professor who studies board makeup [1:30] It turns out who sits on a board influences how companies manage flux. So, do boards have the right talent at the table? [2:18] What exactly does a corporate board do? [3:33] Aida started studying board dynamics in the wake of the Enron scandal[3:55] How the Enron fallout impacted its board, and why did no one notice? [4:46] The roll of director homogeny in the scandal [5:33] What is groupthink and why is it bad?[6: 09] Aida’s research shows that when you change the variables – such as introducing a woman to the directors table – fraud and accounting mistakes decline[7:14] Diversity improves board effectiveness by increasing perspective diversity[7:35] Digging into different types of diversity – such as diversity of tenure or gender diversity – and the role it plays on board effectiveness [8:23] Exchanges are now compelling organization to report on board makeup[8:59] What is tokenism and why is it bad for a board? [9:27] But increased diversification makes tokenism harder as the board becomes more balanced[10:00] Director diversification is improving, if slowly, and there are still stumbling blocks [10:29] Do we need to prove that diversification is needed to demand more balanced representation?[11:21] What skills did directors need in the early 2000s? [11:50] And today, they need tech know-how and an understanding of ESG – or environmental, social, governance. [13:12] ESG is complicated and will have big ramifications on businesses, and not every board feels they’re ready for the ESG revolution [13:38] And if a board doesn’t have the right talent, it doesn’t necessarily take a crisis to shake stakeholder confidence – just ask Amazon[14:25] Industries that have a diverse talent shortage – like energy – will have a harder time making sure their directors reflect the broader population; and that’s a problem for innovation[15:08] But not all hope is lost. “It's now that these industries are attracting people with different skill sets in different backgrounds because they have no choice but to if they want to evolve and survive.”

What role should the office play, and can companies create equitable and sustainable WFH policies that work for all employees? Rotman's Sarah Kaplan and Carmina Ravanera weigh in on the future of hybrid work. Show notes[0:00] In 2020, the world embarked on the great work-from-home experiment. And while as of 2022, businesses have called people back to the office, a big question mark remains[0:41] Meet Sarah Kaplan and Carmina Ravanera from the Institute for Gender and the Economy, who explored the tension between what workers and businesses want and need when it comes to a remote work policy[2:10] It turns out remote work can work. But businesses need to make it work for everyone[2:35] Keep in mind the people who can’t work from home[3:24] But for those who can, there are compelling financial upsides for employees – particularly for Black and LatinX employees – when allowed to work from home[4:09] Remote work can also reduce workplace micro-aggressions and discrimination[5:02] And WFH are really beneficial for those in caregiving roles[5:34] But despite the benefits, companies can’t use a WFH policy on its own to make the workplace more equitable[6:01] What’s the ideal worker, and why is it detrimental to people who can’t dedicate their whole selves to their jobs [6:41] There’s a persistent myth that remote workers aren’t as dedicated as those who come into the office. The ideal worker is one who shows up [6:54] And women and people of colour are more likely to suffer from these misconceptions[7:16] Remote work policies that focus on employee monitoring can exacerbate mental health issues and company trust issues [8:02] You can’t just plonk a remote work policy onto an old system. To make it work, businesses will have to rethink the system[8:36] The problem is that change is just hard. And leaders don’t always have time to think meaningfully about an equitable system redesign [9:09] But there are upsides, particularly for companies looking to improve inclusion efforts[10:46] And with employers in a war for talent, it’s worth looking at creating a solution for everyone [11:35] Companies need to make the office worth their employees’ time [11:55] Hotelling doesn’t need to be a bad word. Letting employees make the trade off might be key[13:01] What role to offices play in our social lives?[13:20] Leaders should introspect on why people don’t want to come back[13:45] Effective and equitable remote work policies need government and societal support to change underlying gender and racial inequalities as well[14:19] It’s part of a holistic conversation. “Building trust in organizations is extremely difficult, and it's easy to erode. And so I think we are at a time where the role of the leaders, anybody who has other people who work for them,  supervisors all the way up to CEOs, their role in terms of being culture creators, and maintainers is going to become even more important.”

Pre-2020, the sharing and gig economies were thriving. Then the pandemic changed the game. While Uber's food delivery was up, its ride sharing plummeted. Airbnb saw a wave of cancellations. The entire space stumbled. As we emerge from lockdowns and restrictions, new challenges face these Silicon Valley darlings. With ongoing rights over worker classification, and increased pressure to turn a profit in a rising rate environment, it's time to ask: What's next for the sharing economy?  Show notes[0:00] 2012 was a big year for the sharing economy[00:28] But the following decade was even bigger[00:56] Professor Ming Hu is the person to talk to about the sharing or gig economy [01:43] The pandemic changed the game for companies in the sharing economy. Can the gig economy thrive in a sustainable way?[03:14] What exactly is the sharing economy? [03:47] These companies very quickly transformed parts of our lives…and quickly became the status quo in our lives[04:42] You can thank the network effect for this rapid growth [05:07] Uber is the poster child of the sharing economy[05:25] The pandemic had a devastating impact on Uber’s ride sharing [05:51] Future success is going to be dependent on its relationship with its workers [06:26] The fight over Uber worker classification [07:05] The two types of Uber drivers: Ad hoc and full-time workers[08:00] Why a one-sized fits all solution doesn’t work[08:27] Uber is changing how it deals with drivers as a result of proposed worker classification legislation, putting some control in the hands of drivers[09:12] Ming proposes that different types of workers should be treated differently - just look at how the UK is handling things[10:12] Why now is so pivotal for the sharing economy [10:47] Rising inflation is having a big impact on sharing economy consumers…[11:18] …and on the drivers - gig workers are likely to be the hardest hit by high inflation[12:18] Beyond ride sharing, what at the big opportunities for innovation in the sharing economy? What about energy sharing? [13:10] "There's no shortage of new applications and new markets, where we can apply these ideas to."

The state of innovation wasn't great, even before you threw a pandemic or recession into the mix. And while it's too early to tell the long-term implications that team isolation and rising interests rate might have on the research and development process, associate professor Kevin Bryan explores why our process of innovation might be in crisis, and what might be done to solve the problem. Show notes: [0:00] "There's this worry that growth is slowing down. you might think, how could that be an era of like artificial intelligence and robots and like how growth is slowing down. But if you think back toward, the early 20th century, with airplanes, and electricity, and modern research labs, and automobiles, and home appliances, it seemed like the world was changing very quickly."[0:45] Meet Kevin Bryan, an associate professor at the Rotman School of Management, and expert in innovation. He has concerns. Growth in innovation seems to have stalled. Add a pandemic into the mix, and you have to wonder if innovation is in crisis? [2:12] How do you define innovation?[2:22] There was lots of diffusion and transformation early in the pandemic, but it wasn't true innovation. [2:55] The root cause: a breakdown of teamwork caused by everyone working from home. [3:30] There are two ways of transferring knowledge between colleagues and co-workers: direct and indirect. Both are equally important, and both suffered during the pandemic. [4:51] Our introduction to new people and ideas likely fell during the pandemic, which can have a further impact on the process of knowledge transfer. [6:12] It's too early to say what the long-term impact will be, but Kevin doesn't think it'll be positive. [6:50] Money - or lack-thereof - also plays a roll in our lack of innovation. [7:17] Canada just doesn't spend as much on R&D as other countries.[7:50] Canada's high tax rates and lower income inequality also makes us less appealing for inventors and innovators. [8:39] Rising interest rates does not bode well for research and development. [9:15] Companies need to be judicious with long-run, uncertain projects, which means less investment in unproven ideas. [10:04] COVID-19 vaccines is a good case study for innovating in a crisis, and speaks to what needs to change more broadly if we want to solve the problems surrounding innovation pipelines. [10:50] The first idea isn't always the best idea - just look at the Wright Brothers. And in a crisis, coming in second might be a losing proposition, even if your idea is better. [11:38] So how do you incentivize innovation in a socially useful way?[11:55] Governments and public institutions need to step up and support and incentivize basic innovation.[13:30] Companies probably need to stop being so precious with their trade secrets. Good ideas are more likely to come from outside your organization than within. [14:31] "You know, Emerson, Ralph Waldo Emerson says ideas are in the air, and they literally are in the air, like they're not all written down on a piece of paper. I guess all we can say is that we know it's important and things that would block that informal transfer of knowledge can be really damaging for your organization's ability to take advantage of new ideas in the world."

Giving feedback is like a hand grenade. No matter how positive a spin you put on it, criticism is still hard to hear. So what can we do differently in tough conversations for a better outcome? Assistant professor Rachel Ruttan shares best practices from her research on advice-giving...and getting. Show notes [0:00] “I read this book called difficult conversations. And they use this analogy, any kind of tough or difficult conversation, like negative feedback is basically hand grenade. no matter how much you dress up the hand grenade, it's still a hand grenade. So I think, in the role of giving that tough news or information or feedback, it's good to just accept the difficulty of that conversation going in and to be compassionate to yourself.”[0:25] Meet Rachel Ruttan, an assistant professor of organizational behaviour who studies how to navigate difficult motivational tensions. She explores topics including how to make giving advice and feedback more palatable. [1:28] Her interest stems from the sometimes compassionate, sometimes harsh world of competitive figure skating. [2:16] How we hear and internalize feedback will influence whether or not we take the advice. [3:37] To create a space where people are more welcoming of receiving feedback, Rachel suggest setting goals and expectations at the outset. [4:10] The “Feedback Sandwich” is real, and it works. [4:33] Advice is best received when your team believes you have their best interest at heart – and that your team is a safe place to take risks. [5:13] Giving advice shouldn’t be a one-way street; people may have their own suggestions on how to improve performance. [5:43] Be aware that your own emotions can get in the way. Don't give feedback in anger. [6:37] And how can you provide feedback to a superior? Try framing issues and suggestions you might have as questions. [8:00] Negative feedback is part of every career – consider talking to colleagues about the harsh criticism they've received over their careers to help normalize it. [8:52] The TV show The Voice offers a fantastic lens into how we pick our mentors. It turns out, we’re drawn to mentors who shower us in positivity, even if someone a bit more negative might be a better fit for us. [10:43] Social support and positivity are important, but so is a person’s success at mentorship. Ideally, you would have mentors who can do both. [11:51] “We spend a lot of our time imagining what other people think, and want to hear, and what the right thing is for somebody to do. But we also know from a lot of literature that we're actually really bad at perspective taking. It's hard, you don't know what's going on in someone else's mind. So just ask them. Again, this sounds so simple, but I think it's something that we can forget to do along the way.”

From social media to AI to celebrity endorsements — brands interact with us on a more personal level than ever. But how does that change our relationship with the products we buy and the companies that serve us? In the latest episode of the Rotman Executive Summary, professor Pankaj Aggarwal explores how the way we anthropomorphize brands is changing, and why that matters.Show notes [0:00] “Think back to your childhood and the foods you ate. Did you enjoy Tony the Tiger’s Frosted Flakes? Lucky the leprechaun’s Lucky Charms? Snap, Crackle and Pop’s Rice Krispies? As adults, we cook with Betty Crocker, eat at Wendy’s, clean with Mr. Clean. The products we buy and the food we eat are replete with mascots and human stand-ins. It’s called anthropomorphizing — the act of humanizing inanimate objects or situations. Companies have long known that putting a human — or human-esque — face on a brand makes it more relatable.”[0:45] Why Coca-Cola might be the post famous anthropomorphized brand. [1:21] Meet Pankaj Aggarwal, an expert in marketing who has extensively studied how, and why, we we sometime treat brands like humans. [2:45]: Why do we anthropomorphize objects as kids? And how does that change as we become adults? [3:48] A brief overview of how we humanize products, think mascots and celebrities. [4:32] When we treat brands like their humans, we tend to form more “human-like” relationship and start applying human norms on otherwise inanimate objects. [6:00] For example, we use humanized products to be extensions of ourselves… [6:41] …we’re less judgmental when it comes to anthropomorphized object… [7:31] …and, we are less likely to haggle on prices… [7:58] …and we really want all the parts to be from the same manufacturer. [8:54] What are the implications in our social connected, "cancel culture" for when a humanized brand screws up?[10:27] Gender-neutral products, and the unintended consequences of best intentions. [12:09] Companies need to be more purposeful in how they talk to customers.[13:13] The situations where you probably don’t want to anthropomorphize a brand[15:36] "I think in some ways, it's better to be overtly clear to the consumers what gender for example, the brand has, what personality trait your brand has. Because that is the cue that people use to imbue on the brand. If you leave it abstract or vague, different consumers may think of it somewhat differently. And it's obviously going to be biased by say their own views of the world their own views of humans. And that's not ideal, so it's better to be as clear as possible, whether it's giving it a name, whether it's giving it a personality through advertising, through commercials, whether it's kind of showing the celebrity or the or the mascot, any of those things is better than just leaving it ambiguous."

Blockchains and cryptocurrencies went into a spectacular meltdown in 2022. Professor Andreas Park — an expert of finance innovation at the University of Toronto — says that despite the ill tidings, businesses should keep an eye on the space...or risk missing out on a game-changing technology. Show notes: [0:00] “So I think there's a disconnect between what people are building on the blockchain and what the use cases are. There's a lot of beautiful ideas of how to streamline existing blockchain operations, how they can have some gimmicky trading tools and so on and so forth, but thinking about what business case you can solve and what value you bring to customers is a much harder problem.”[1:08] A short journey through the recent history of cryptocurrency and blockchain. [2:11] What is a blockchain? What is a cryptocurrency? What is a token? And how do they work together? [3:17] Why Bitcoin is like Beanie Babies.[4:16] A breakdown of utility tokens, stablecoins, asset tokens, futures and derivatives tokens, and governance tokens. [7:10] Crypto’s first boom/bust/boom cycle.[8:03] The current Crypto winter, and how it compares to the 2000s dot.com bubble bust. [9:30] Is Cryptocurrency a Ponzi scheme? [10:24] To solve the current crisis, cryptocurrency needs to be more user friendly… [11:25] …and some regulatory support.[12:07] But not all is lost. The dot.com bust paid dividends for some companies. Crypto and blockchain might follow the same path. [13:00] Crypto and blockchain is more than just a currency to be traded and sold. So what businesses should keep an eye on this space?[14:38] “The reality is that a blockchain is a very useful piece of technology for borderless digital transfers of value. I cannot see a world in which just is not used, and this is not useful.”