Cooperation in a large society of self-interested individuals is notoriously difficult to achieve when the externality of one individual's action is spread thin and wide on the whole society. This leads to the ‘tragedy of the commons’ in which rational action will ultimately make everyone worse-off. Traditional policies to promote cooperation involve Pigouvian taxation or subsidies that make individuals internalize the externality they incur. We introduce a new approach to achieving global cooperation by localizing externalities to one's peers in a social network, thus leveraging the power of peer-pressure to regulate behavior. The mechanism relies on a joint model of externalities and peer-pressure. Surprisingly, this mechanism can require a lower budget to operate than the Pigouvian mechanism, even when accounting for the social cost of peer pressure. Even when the available budget is very low, the social mechanisms achieve greater improvement in the outcome.
In a live chat on LinkedIn, Alan Iny, BCG’s senior specialist for creativity and scenarios and coauthor of Thinking in New Boxes, answered questions and gave concrete tips on bringing creativity to a range of business problems.
The "C" word. Yep, culture. Haunts so many of our efforts. Often it's like a specter hanging over failed projects - "the culture wasn't prepared to accept that technology." We talk about it's importance and about having the right one...
Organizations’ efforts to go digital—and drive growth through digitization—are picking up steam. But many have more work to do before they can scale their efforts and see material impact. A McKinsey & Company article.
Atos together with its business line blueKiwi Software it has won the Forrester Groundswell Award for Excellence in Social Collaboration for its Zero email™ program in the Business-To-Employee: Employee Collaboration category.
This past week I was in Orlando, Florida for SAP’s annual SAPPHIRE conference where I keynoted a session on the future of work and participated in a few panel discussions and videos. I will share all of those here in due time but for now I wanted to share a short 2 minute clip in …
In a great IT industry irony, enterprise social networking software, designed to boost interaction and collaboration, is often ignored by users and ends up forgotten like the proverbial ghost town with rolling tumbleweeds.
The social enterprise sector is hot—it may be worth well over $500 billion in the US alone. But if social business is to solve many of the world’s most pressing problems, we have to make sure it has both internal and external accountability systems in place to do so. What [...]
A few weeks ago I flew to NYC to film a video on the future of work with the folks over at Success Factors. The video was recently debuted at SAP’s Sapphire conference in Orlando. It explores a lot of the themes and ideas that I care about such as employee engagement, workplace flexibility, the …
Digitization is rewriting the rules of competition, with incumbent companies most at risk of being left behind. Here are six critical decisions CEOs must make to address the strategic challenge posed by the digital revolution. A McKinsey Quarterly article.