Crystallized Intelligence

When it comes to intelligence classifications, your brain might automatically jump to a black-and-white picture of society: those with the brains to succeed, and those without (otherwise known as ‘entity theorists). Others may think of left-brain vs. right-brain, the 7 types of intelligences, or simply have a broader understanding that each brain has different strengths (otherwise known as incremental theorists). Studies show that the more rigid entity theorists tend to be discouraged by negative feedback and challenging learning opportunities, while incremental theorists rebound better from failures because they recognize that intelligence is malleable.

There is, in addition, yet another aspect to intelligence that fits into both of these modes of thinking: fluid intelligence vs. crystallized intelligence. The first, fluid intelligence is what most of us were taught in schools. Fluid intelligence involves comprehension, reasoning and problem solving. Crystallized intelligence, however, involves recalling stored knowledge and past experiences. In short: knowledge vs. wisdom. The bad news? Fluid intelligence peaks when we are in our 30s, and goes into decline after that. Our mental speed and dexterity are no longer what they once were. The good news? Crystallized intelligence begins to rise in proportion to the decline in fluid intelligence. We are able to rely on our stored fluid intelligence to notice patterns and connect otherwise unrelated experiences or events based on shared information. Check out the great advice from Inc.com on the whys and hows of utilizing both of these types of intelligence to your full advantage, and how this can help define your leadership role.

Not to Worry About Quiet Quitting

By now most everyone has heard the new trendy term “quiet quitting”. This in fact, has nothing at all to do with quitting, it simply indicates when employees choose to do the bare minimum that their job requires. Never going above and beyond, never putting in unpaid extra hours, never responding to emails past COB. Some may see this as employees setting healthy boundaries in the quest for work/life balance, while some see it as laziness and a detriment to the company. Over the last month the term gained a lot of traction thanks to one TikToker, whose video on the subject quickly went viral, garnering over 8 million views in just a few weeks. But does this new concern have staying power? Is it actually something that businesses and leadership need to be concerned with? The brains over at Wharton give a resounding ‘no’.

Matthew Bidwell, a management professor at Wharton, has a new quick read (and quick listen on Wharton Business Daily) about what the real issues are that management needs to be worried about. While leadership is of course always interested in getting the highest performance out of their employees, the much bigger issue these days is keeping employees, period. Let’s go beyond the “no one wants to work anymore” mentality here. There has always been those who do not want to be defined by their labor and seek more freedom in their chosen lifestyles. In August, however, 4.3 million workers voluntarily left their jobs, setting a new record. So who has time to worry about quiet quitting when actual quitting is so much more detrimental to a company? Take a few minutes to give Professor Bidwell’s article a quick read, and listen to his discussion on the wider labor market, and where this trend may be going.

Embracing Uncertainty

The only thing certain in life is uncertainty (let’s go beyond the whole “death and taxes” situation here). We all know this on one level or another, but sometimes we need a reminder. Living through a global pandemic has been a great example of this. Some succeeded in adapting to the uncertainty, and some did not. For those in leadership roles, uncertainty can be especially difficult. There can be intense pressure to maintain a sense of control when others look to leadership as a guide. So how do leaders remain confident, even in uncertain times?

It might be easy to assume that with the vast amount of new technologies available to us that we are able solidly predict market trends, economic climates, and political outcomes. Although these predictive algorithms have become much more sophisticated in recent years, we still must account for error one way or another. The good news is, once we are able to embrace the uncertainty of business (and life in general), there are some great tools to help us navigate the ever-winding road.

Don A. Moore and Max H. Bazerman over at HBR have written a new book (out earlier this year) called Decision Leadership. In it they dive deep into leading with confidence, and the advice given is to embrace uncertainty, but provide context. Confidence in data, not certainty in outcomes. Check out their new article where they discuss a few valuable strategies that will demonstrate how leaders remain effective through uncertain times. Because as Voltaire once said; “Uncertainty is an uncomfortable position, but certainty is an absurd one.”

The Four Day Work Week

“A culture of busyness” is the phrase used to describe the American work ethic. Despite the “no one wants to work anymore” rhetoric floating around among those struggling to hire, Americans still overall embrace the daily grind as part of what defines the individual. As a new generation of employees come up in the workforce, they are prioritizing and demanding more of a work/life balance. There are mounds of research that support this shift in priorities, and show that a shorter work week leads to a boost in company morale and overall happiness among employees. There’s even a non-profit called 4 Day Week Global, which is dedicated to promoting the idea of a shortened work week, research surrounding it, and helping implement the transition from a 5 day to 4 day office environment.

This past June, over 70 companies in the UK signed up to be part of a 6-month test run for making the shift to a 4 day work week. Around 40 other countries from North America have joined the program as well. This experiment could be the inspiration that many others need to start their own transitions.

But, are Americans really ready for this? It’s hard to shake off the American cultural ideal that our lives largely revolve around work. Thanks in part, however, to the pandemic shifting to so many remote situations, the concept may be easier to get used to than previously thought.

Now a few of the incredibly talented faculty members at Wharton (Adam Grant, Lindsey Cameron, Matthew Bidwell, and Michael Parke) have contributed to a new article outlining some of the hurdles the US might have to overcome should this trend catch on. Take 10 minutes to read up on how we can embrace the shift if we are ready, and how we can start to warm up to the idea if not. As one CEO put it after shifting abruptly to the 4 day week; “Work will fill the space you give to it. My bet is that we’re going to become vastly more efficient from Monday to Thursday.” If the current research holds, this could be momentous.

Tips for Organizational Development

Growing any company, group, or organization in a safe and sustainable way is paramount on any leader’s list of goals. As organizations progress and evolve along side workplace culture and institutional practices, often times they are left to figure out that evolution on their own. Obviously organizations are well equipped to problem solve as they develop, but - until now- there has been no set of guidelines or structure.

Now, HBR’s Michael O’Malley has put together an amazing list of guiding principles for any organization. This set of 10 principles to promote and lead organizational development. Take a peek and see if these principles have the potential to lead your organization to higher ground.

Acquiring Obsession

What defines success to a small startup? Is it creating a unique and life-altering product? Or is it creating something that is just similar enough to an established corporate product so that the offers to buy come soaring in? These days, it seems that the latter may be the benchmark more often than not.

Of course, this does not apply to ALL startups; there are absolutely those out there producing new and unique creations that will change the world. When we start to look at recent trends, however, we see more and more that acquisitions are defining the space. Facebook bought WhatsApp, Instagram, Oculus, etc. Amazon bought Zappos, Audible, ThredUp, etc. This is great news for those executives who sold with a cash windfall, but according to two researchers at Kellogg, bad news for innovation.

Kellogg’s own Steven Callender and Niko Matouschek have written a new article detailing their research on startup acquisitions relating to innovation in the industry. Their research demonstrates that not only are these cash outs stifling innovation, but it’s also sparking new discussions in antitrust debates. Where this discussion takes the world of start ups is anyone’s guess, but this article is a VERY fascinating place to start. Take a few minutes to read the research and see where you land on the issue.

Social Issues and the Private Sector

It’s hard to argue with the idea that we are living in a time of immense social upheaval. Thanks to social media and the 24-hour news cycle, we are inundated with divisive issues whenever we turn a dial or turn on a screen. The constant barrage of news is of course, a double-edged sword. It keeps us informed, but it is undeniably stressful. This has been more pronounced than ever over the past several years, so much so that more and more privately owned companies are beginning to take a stand.

Wharton’s own Stephanie Creary, who studies organizational behavior, has a new podcast episode and article about why companies are taking a stand on social issues. While historically companies have used financial contributions to make their social views known (which often involved donations on both sides of the aisle), the divisive nature of the last 15 years has pushed leadership into new action. As much as leadership may have wanted to stay above the political fray, times have changed.

In today’s corporate world, there are now positions held with titles such as the ‘director of employee activism’, or ‘DEI executive director’. “Their job is to keep talking about it,” Creary said of chief diversity officers and others in similar roles. This new reality is just the beginning in a two-steps-forward, one-step-back state of change. Check out the article and her interview for a fascinating read on our shifting private sector.

The Stats on Social Media

Creating a strong social media presence can be overwhelming to some business owners. Larger businesses with bigger budgets are fortunate enough to hire entire teams to manage their online social platforms. For smaller businesses, however, this can pose a challenge. Given that such a large portion of the population uses social media, and much of it is available for free (for now), it seems crazy not to utilize this platform.

Luckily, our friends over at Internetadvisor.com have put together a list of 10 Social Media Statistics that will help anyone understand the whys and hows of establishing a social media presence. This incredibly comprehensive list goes beyond the basics of video marketing. To really understand the fundamentals of social media, take a deep dive into these stats and see how they can launch a better version of your business for the online community to see.

Holding Banks Accountable on Climate Change

The Supreme Court has just ended a controversial term with one last decision to curtail the EPA’s ability to regulate polluters. In a summer when Americans have already seen devastating flooding and fires, this decision is one in a slew that doesn’t exactly inspire hope in most of us. In the fight against climate change, it is time to step up collective action. Businesses, even more than individual consumers, have the ability to make statements with whom they choose to bank.

Thanks in part to the efforts of environmental groups like the Rainforest Action Network and 350.org, banks are now being called out on loaning money to polluters, financing fossil fuel drilling, pipeline expansions, etc. While switching banks alone won’t stop global temperatures from rising, Ivan Frishberg, Senior Vice President and Chief Sustainability Officer at Amalgamated Bank, described some practical and powerful steps businesses can take that support a growing movement.

With more capital than the average individual, companies make a powerful statement when they choose to bank with a carbon neutral company. As an added effect, it can also draw more like-minded consumers to these companies. Check out HBR’s new article that profiles how businesses can start to make a change for the better, in the hopes that a cascading effect of good decisions will follow.

A Better Bargaining Table

Whether one approaches the bargaining table from the perspective of leadership or a team member, it always helps to come in with the right attitude. As entertainment mogul Shonda Rhimes said in a recent interview: “Never enter a negotiation you’re not willing to walk away from. If you walk in thinking, ‘I can’t walk away,’ then … you’ve already lost.” Sometimes, however, it’s not about winning or losing. It’s about building better relationships between team members, upper management, and leadership. Now Wharton professor Maurice Schweitzer has co-authored a paper titled: “When Should We Care More about Relationships Than Favorable Deal Terms in Negotiations: The Economic Relevance of Relational Outcomes.”

This may be seen as revolutionary sentiment, and for many it is just that. In the paper and in a new interview, however, Mr. Schweitzer does his best to explain why traditional approaches to hard ball negotiations can be flawed. So flawed, in fact, that he and his co-authors developed a new negotiation paradigm called the Economic Relevance of Relational Outcomes (ERRO). Check out his recent interview and read the full article here. For the next time you’re at the table, it might help to keep some perspective on what is most important.