Troy Carter, Lady Gaga’s manager, says he wants to know “how the fans smell”: he walks the arena during the star’s show to get a sense of how they’re receiving the act. Phil Clarke, chief executive of Tesco, has set in motion a retraining scheme for the UK retailer’s managers called “Making Moments Matter”, preparing them for face-to-face contact with customers.
Yet both men work for organisations (if Gaga can be described that way) that have also pioneered the use of technology – the Little Monsters Gaga fan site, the Tesco loyalty ClubCard – that helps them know their customers and run their businesses more efficiently.
The mixed approach they advocate illustrates a theme that emerged strongly from this week’s FT Innovate conference, where both men spoke: how to put the personal touch back in technology? Or, as Aimie Chapple of Accenture summarised at one roundtable session: how do you add the love to Big Data? Read more
The latest study from the American Finance Association’s Journal of Finance reaches a counterintuitive conclusion: perhaps over-confident CEOs are better innovators. Here’s what it says:
CEO overconfidence is associated with riskier projects, greater investment in innovation, and greater total quantity of innovation as measured by patent applications and patent citations even after controlling for the amount of R&D expenditure. In other words, the R&D investments of overconfident CEOs are more productive in generating innovation [my emphasis].
David Hirshleifer, Angie Low and Siew Hong Teoh rightly point out that this may go against the grain for most business commentators (myself included), who “often point to examples of headstrong, overconfident CEOs who made disastrous decisions”. Read more
Even Europhile economists must have pricked up their ears at the offer of £250,000 to the person who comes up with the best plan for winding up the euro. Only the Nobel offers a more valuable bounty to the dismal scientists.
But whatever you think of the goal, is the Wolfson Economics Prize – offered by Lord Wolfson, the youthful, Eurosceptic, Conservative chief executive of Next, the UK retailer – the best way to achieve it? These days, bright business ideas often emerge through collaboration, rather than competition. Read more