This week’s episode spotlights how inclusivity, leadership, and technological strategy are driving positive transformation across business and society.

We begin with a pressing issue: the persistent pay gap between immigrants and natives. Marta Elvira from IESE, in a study published in Nature, reveals that immigrants in Europe and North America earn 18% less on average. The core reason? Limited access to high-paying jobs. Elvira urges policymakers and companies to break down structural barriers through inclusive hiring and career advancement support, fostering both equity and economic strength.

From inclusivity, we move to history’s lessons on fair taxation. Ana Elena Azpúrua from HBS revisits the French Revolution, where unpopular taxes—like the salt tax—ignited public outrage and regime change. Her research highlights the need for modern tax policies to be balanced, transparent, and tied to public benefit to maintain trust and social stability, especially during economic shocks.

Next, we explore leadership during uncertainty. Ben Bryant from IMD underscores the importance of balancing vulnerability and authority. He encourages leaders to self-reflect, share stories, and provide candid feedback to build trust and empower teams—critical skills for high-performing organizations.

In the technology space, Hise O. Gibson from HBS presents lessons from a military exercise to showcase AI's role in cybersecurity and crisis management. He emphasizes that AI must be integrated thoughtfully to enhance real-time decision-making and coordination. Success lies in combining human judgment with AI-driven insights and fostering a culture of adaptability and continuous learning.

Continuing with AI, Faisal Hoque of IMD explores how aligning AI with strategic enterprise architecture leads to real business value. He outlines the importance of workforce readiness, process integration, and aligning AI projects with business objectives. A strategic approach ensures sustainable transformation and performance gains, rather than disjointed tech adoption.

Finally, Claudia Zeisberger from INSEAD offers sharp advice to entrepreneurs navigating early-stage credibility gaps. She recommends using team expertise, compelling storytelling, and trusted advisory boards to strengthen investor confidence. These strategies position start-ups to secure funding and scale effectively, even without an established track record.

Across all segments, the common thread is clear: strategic alignment, inclusive practices, and a forward-looking mindset are key to thriving in today’s dynamic environment. From addressing pay disparities to leading through crises and scaling innovation, today’s insights offer a roadmap for leaders striving to create lasting value.

Here’s a 3,000-character summary of the three segments, highlighting key insights across negotiation, career development, sustainability, M&A, leadership, and AI:

In today’s fast-evolving business environment, professionals must cultivate emotional intelligence, embrace adaptability, and think strategically to thrive. Guido Stein of IESE emphasizes that effective negotiation goes beyond logic—it demands emotional awareness and empathy. By using tools like a detachment journal or metamorphosis map, negotiators can gain emotional clarity and anticipate the other party’s fears and interests. This is especially relevant in talent negotiations, where emotions and biases often go unspoken but heavily influence outcomes. The core message: influence through respect and understanding, not pressure.

On the topic of career evolution, Jon M. Jachimowicz’s research, as presented by HBS's Baskin and Kara, challenges the conventional wisdom about pursuing passion. Professionals often fear being judged for quitting a job or shifting careers, but the reality is people judge such decisions far less than expected. Career transitions can be seen as experiments rather than failures. Examples like footballer-turned-environmentalist Mathieu Flamini show that stepping away from one passion can lead to another. The advice: redefine passion as a journey, not a destination, and embrace curiosity and self-direction in your career narrative.

Shifting focus to strategic growth and sustainability, IMD professors Julia Binder and Esther Salvi highlight Lindström’s journey in introducing a circular economy in Asia. Instead of replicating European models, Lindström adapted its strategy to local cultural and regulatory contexts, leveraging technologies such as RFID tracking and water recycling. By prioritizing trust-building and early collaboration with local authorities, the company fosters shared responsibility and long-term value creation with customers.

In the realm of mergers and acquisitions, Patrick Reinmoeller from IMD outlines a practical four-step framework: Select, Secure, Search, and Match. He advises companies to seek acquisitions that complement existing strengths, explore deeply beyond traditional due diligence to uncover untapped value, and thoughtfully reallocate assets that no longer align with strategic goals. This balanced approach ensures sustainable integration, preserving competitive advantages while allowing acquired companies room for autonomy.

On leadership and future-readiness, Mike Rosenberg introduces the PLUTO framework—responding to a world that is Polarized, Liquid, Unilateral, Tense, and Omnirelational. He advocates for stakeholder capitalism, robust scenario planning, and geopolitical awareness to navigate today’s uncertainties. Companies are urged to diversify supply chains and invest in talent that can handle cross-border complexity.

Lastly, Michael D. Watkins explores how AI can enhance rather than replace human cognition. He warns against over-reliance on AI, encouraging its use as a “cognitive amplifier” to boost strategic thinking, pattern recognition, and creativity. Maintaining cognitive primacy—our unique human capacity for deep thought—can be the true competitive edge in a world where AI is becoming ubiquitous.

In summary, thriving in modern business requires a combination of emotional insight, strategic agility, cultural intelligence, and thoughtful integration of new technologies. Whether at the negotiation table, in career transitions, or at the helm of organizational leadership, today’s professionals must lead with adaptability and intentionality.

Navigating Industry & Tech Transformations
Industries face disruptions from geopolitics, tech advances, and shifting consumer demands. IESE’s study on Spain’s food & beverage sector highlights the need for diversified strategies, strategic alliances, and attracting talent in flexible work settings amidst a looming farming talent shortage. While AI offers efficiency in production and logistics, many firms lag in adoption, underlining the need for a mindset of continuous transformation.

On AI, IESE’s Philippe Aghion argues it can be a job creator if aligned with societal needs. This requires governments and firms to revamp education for AI readiness, reskill workforces, and foster innovation through competition and effective data policies. A unified European market is vital to prevent Europe from lagging in the AI race.

In Spain’s banking sector, IESE emphasizes scaling and competitiveness to build “banking champions.” Priorities include regulatory adaptation and leveraging AI for efficiency and customer experience. The digital euro aims to reduce payment fragmentation and enhance Europe’s financial autonomy, positioning banks to drive recovery and integration.

Leadership & Organizational Strategies
As markets shift, leadership must evolve. HBS highlights a move from annual reviews to regular feedback cycles, as seen in Progress Software’s quarterly check-ins, improving retention and career clarity while fostering equity through diverse promotion panels.

IMD’s Tariq Farooq stresses transforming supply chains into strategic assets through disciplined execution, foundational capability building, and leadership-operational alignment. Robust processes should precede digital investments, with continuous improvement and incentive alignment enhancing customer-centric flexibility.

Sunita Sehmi from IMD suggests leaders adopt a learning-focused mindset, using questions to empower teams rather than imposing solutions. Tactics like role-playing, “Tell me more” reminders, and reflective journaling can help leaders foster engagement and effective decision-making.

Sustainability, Inclusion & the Human Element
IESE’s Christian Eufinger outlines banks’ critical role in the net-zero transition, emphasizing transparency in financial products and the need for carbon pricing or emission trading despite political challenges. Climate finance progress demands clear incentives and coordinated policies.

IMD’s Misiek Piskorski and Alexander Fleischmann address persistent workplace discrimination against LGBTQ+ individuals despite legal advances. They advocate for legal, economic, and social actions, urging individuals to support pro-LGBTQ+ policies, workplaces to adopt inclusive hiring, and allies to foster safe spaces. Taking one actionable step before the next Pride Month can help close the equality gap.

To prevent burnout, IMD’s Susan Goldsworthy advises leaders to adopt a growth mindshift, meeting employees’ psychological needs for acceptance and achievement. Shifting from managing to coaching, using positive language, and practicing active listening can build supportive environments that enhance innovation and organizational health.

These insights collectively emphasize the need for continuous adaptation, inclusive practices, and human-centered leadership to navigate today’s complex business landscape while positioning organizations for sustainable growth.

This week, we explore how leaders can navigate disruption, develop future-ready skills, and leverage nonmarket and AI strategies to thrive.

At the core is “opportunity framing” (Yuliya Snihur, IESE), which explains how Barnes & Noble survived Amazon’s rise by treating change as an opportunity. Leaders who communicate change with clarity and inclusivity, involving stakeholders, can keep organizations aligned during disruptions like AI transformation.

Harvard’s Fitzgerald and Jay emphasize foundational skills in the AI age. While technical expertise matters, soft skills like communication, critical thinking, and teamwork enable workers to adapt and thrive in evolving environments. They call for addressing educational disparities to ensure equitable access to these skills.

On leadership growth, Paul Vanderbroeck (IMD) notes that leaders must assess readiness for change, delegate, and adopt a strategic lens to align with shifting business goals and cultures, ensuring continuous evolution in their roles.

Michael Yaziji (IMD) highlights nonmarket strategies—shaping regulatory, social, and political environments to reduce uncertainties and gain competitive advantages. Leaders can engage in joint R&D, industry standards, and regulatory dialogues to align investments with societal interests while advancing corporate value.

Jerry Davis (IMD) explores corporate influence and politics, noting that tech leaders’ investments in politics often fail to yield the expected returns, as political leaders prioritize market stability over corporate interests. This dynamic raises concerns about shifting power and potential threats to democratic processes, urging leaders to remain vigilant.

Arturo Bris (IMD) argues for business engagement in geopolitics, encouraging leaders to collaborate with governments, develop geopolitical literacy, and align decisions with societal needs to prevent a drift toward technocratic governance and to uphold values in a complex global system.

On workforce dynamics, Rachel Lewis (IMD) presents a Participatory Action Research approach for employee-driven stress management, empowering employees to analyze data, design interventions, and create tailored solutions that improve well-being and productivity without large financial investments.

For inclusive workplaces, Alexander Fleischmann (IMD) underscores the importance of authentic LGBTQ+ inclusion despite political pressures. Leaders should focus on education, embedded practices, and active allyship to build resilient, innovative cultures that value diversity.

Finally, Didier Bonnet (IMD) discusses AI adoption in the workforce. CHROs should customize AI training, foster experimentation, and encourage sharing best practices while addressing ethical concerns like bias and misinformation. By focusing on augmentation, businesses can unlock AI’s potential to enhance performance and outcomes.

1. Preparing for the Future Workforce and Strategic Leadership
IESE highlights that by 2025, companies must address urgent skill gaps caused by AI, remote work, and demographic shifts. Priorities include developing transversal skills like agility, teamwork, and resilience—especially among younger employees—alongside data analytics and ethical AI capabilities. Leaders must improve virtual team management with clear communication and empathy. Aging workforce strategies, such as intergenerational mentoring, are vital for sustainability and talent retention.

From IMD, Johanna Grosgurin advises leaders to be selective in workplace conflicts, using mindfulness and strategic thinking to focus energy on meaningful challenges. Alyson Meister further emphasizes that advancing to senior leadership requires a mindset shift: fostering strategic vision, building influential networks, and engaging in authentic, courageous conversations while managing energy and staying open to learning.

2. Embracing Innovation and Agility in Business
Innovation often emerges unpredictably. The development of the “like” button, as discussed by Knut Haanaes and Martin Reeves at IMD, is a case in point—it began as a simple friction-reducing tool and became a cultural fixture. This reminds leaders to stay humble, open, and flexible in their innovation approaches.

Pushan Dutt’s analysis of the AI race between the US and China explores how innovation and scalability both determine technological dominance. While the US leads in R&D, China's cost-efficient infrastructure and deployment speed offer key competitive insights. Companies should aim for both breakthrough ideas and scalable systems.

David Bach, Richard Baldwin, and Simon J. Evenett emphasize that today’s multipolar geopolitical environment demands that businesses design for volatility. Firms must decentralize, diversify supply chains, and embed geopolitical strategy into leadership structures. Doing so not only mitigates risk but turns fragmentation into strategic advantage.

3. Building Inclusive and Community-Centric Organizations
Creating inclusive cultures isn’t just about policy—it’s about practice. Robert Vilkelis (IMD) urges leaders to foster LGBTQ+ inclusion by affirming identities, challenging assumptions, and ensuring benefits reflect diverse needs. This strengthens belonging and enhances innovation.

Michael Skapinker builds on this by stressing that DE&I should move beyond metrics. Real progress stems from merit-based recruitment, tapping into broader talent sources, and creating cultures where diverse voices are empowered and respected.

David Wagner presents a framework for embedding community orientation into business models. This includes aligning missions with social impact, involving communities in design processes, and integrating belonging into the organizational fabric.

Finally, Anne Kawalerski, Michelle Lynn, and Elisabeth Oak argue for employee-centric strategies as a foundation for modern workplaces. Emphasizing purpose, trust, and empowerment helps attract and retain talent while fostering innovation and organizational resilience.

In this episode of Insights from Business Research, we explore how organizations can better align leadership, communication, and strategy in a rapidly evolving business environment.

We begin with Daniel Mirny’s research at IESE, which reveals that personalized, opinionated messages resonate more than neutral facts—thanks to source memory. Executives are encouraged to communicate in ways that reflect their identity, building stronger, more memorable connections.

At Harvard Business School, Rand and Ben show how mismatches between CEO leadership style and organizational needs can lead to significant productivity losses. Their findings emphasize the importance of fit and targeted managerial development, especially in fast-growing economies.

Jean-François Manzoni from IMD illustrates strategic clarity through Keppel’s transformation from a diversified conglomerate to a focused asset manager—achieved by divesting non-core assets and fostering cross-unit collaboration.

We also examine the role of AI in transforming finance and business. Xavier Vives (IESE) calls for smarter regulation to mitigate AI risks while harnessing its benefits. Stéphane Girod and Michael Wade (IMD) advocate for ethical AI integration and human-centric skill development. Carlos Cordon (IMD) discusses how GenAI can unlock new efficiencies in supply chain management.

From retail to transportation, we hear how companies like BYD have surpassed giants like Tesla by focusing on their core competencies (Howard Yu, IMD). INSEAD’s N. Furr and colleagues explain how AI agents are changing consumer behavior, pushing brands to prioritize real value and adaptability.

We close with workplace dynamics: INSEAD’s N. Klein and co-authors offer a deeper take on kindness at work—framing it as a growth enabler, not just emotional support.

These insights collectively help leaders navigate change with purpose, strategy, and humanity.