Handling the Customer Employee Relationship, According to Northwestern – Chicago News
Let’s explore some of the most interesting stories that have emerged from Chicago business schools this week.
Customers Can Be Jerks. Here’s Why Some Employees Retaliate – Kellogg Insight
Northwestern University Kellogg School of Management Clinical Professor of Management and Organizations Cynthia Wang co-authored new research that seeks to understand the broader implications of employee reactions to unpleasant customers. Do they respond in turn with hostility and try to sabotage the customer or do they turn the other cheek?
Among the extensive psychological research in this area, Wang and her co-authors were drawn to a model known as the social intuitionist model, which argues that moral-decision making is the result of snap judgement and heightened emotion.
“In that heightened emotional state,” Wang explains, “we begin to view problem customers as not worthy of fair treatment—a phenomenon psychologists call ‘devaluation of targets’—which leads employees to see those customers as subhuman.” The reverse, where customers also treat employees poorly, also rang true.
Wang adds:
“These decisions are very quick and implicit. We don’t necessarily notice them going on.”
You can read more about the research here.
Brexit Clouded by Uncertainty, Says Gies Professor – Gies School of Business News
United Kingdom Prime Minister Theresa May canceled the House of Commons Brexit vote that was scheduled for December 11, putting a Brexit solution on hold for now, leaving the future of UK’s relationship with the European Union up in the air.
The UK is still scheduled to leave the EU on March 29, 2019 and parliament needs to strike a deal to make the departure as smooth as possible. Major challenges include finding a solution for the border between Northern Ireland and the Republic of Ireland, along with dealing with the consequences of leaving the European Union for businesses and jobs in both the United States and the UK.
Candace Martinez, University of Illinois Gies College of Business Clinical Assistant Professor of Business Administration, remarks, “If the UK cannot arrive at a solution to the Irish border quandary, a ‘backstop’ approach is a last resort,” noting that Northern Ireland voted to remain in the EU on the June 2016 referendum.
Martinez adds, “Uncertainties are everywhere. This is uncharted waters, to be sure.”
You can read more from the interview with Martinez here.
Sales Class Challenges Students to Provide Creative Solutions for Nonprofits – DePaul Business News & Events
As part of the Marketing 386: Social Impact Sales course at the DePaul University Driehaus College of Business Center for Sales Leadership, students are partnered with a local nonprofit, providing marketing and sales advice. “After working in teams, students present their business plans to the nonprofit toward the end of the quarter. A winning team is then selected by Drehmer and the non-profit to present their creative solutions in front of executives at 3M in St. Paul, Minn.,” according to DePaul University’s Jaclyn Lansbery.
(Left to right) Center for Sales Leadership Executive-in-Residence Charlie Drehmer; Isaly Varela; Mark McLellan, national channel operations manager at 3M; Dominique DiVito; Gavin Hultgren; Ava Kilborn and Mike Nowak / Photo via business.depaul.edu
Charles Drehmer (BS `03, MBA `04, MA `16, Ph.D. `17), who teaches the course, says: “The Social Impact Sales class is extremely rewarding for both me and the students in that we truly make difference in people’s lives. The class is as real as it gets, where students meet with the client to discover their needs and wants, design and execute a market research study and then present their recommendations to the client. Not only does the project provide students a hands-on real-world experience, they also get to make a positive impact on underserved communities.”
Last fall, students worked with Chicago Community ToolBank, providing a marketing and sales strategy. “The project focused on a new program, Corporate Days of Service, which offers private companies a unique team-bonding experience where they use the ToolBank’s tools and facilities to build furniture that is donated to a nonprofit organization of their choice. Students also worked together to build bookshelves that were donated so they better understood what new service would entail,” Lansbery writes.
Isaly Varela, an undergraduate business student in the program, adds, “The class has given us the skills to think critically about marketing and sales along with being comfortable with ourselves.
To read more about the program, head on over to the official DePaul Univesity website.
From Disney to Starbucks, and More – Chicago News
Let’s explore some of the most interesting stories that have emerged from Chicago business schools this week.
Don’t Let Complacency Derail Your Career – Kellogg Insights
Carter Cast, the Northwestern Kellogg Clinical Professor of Innovation and Entrepreneurship and author of “The Right (and Wrong) Stuff: How Brilliant Careers Are Made — and Unmade,” writes about how “Version 1.0” employees who “lack curiosity and avoid taking risks” may find themselves professionally derailed.
“You have to find ways to stay fresh, especially in this day and age with the massive rate of change in technology. Disruption is everywhere.”
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- Following a promotion, understand your supervisor’s expectations. “Ask the boss: ‘With this new job, what will I have done in two years to make you think that this was a good move to promote me? What are the key success metrics I should be aiming for?’”
- Increase your learning agility, or how quickly you develop and apply new skills by honing a discovery mindset. “[Force] yourself to acquire new skills that could help you down the road. If you work in sales, for example, you might take time to understand how the marketing team leverages its social marketing assets.”
- Identify your particular “area of innate resistance,” which Cast believes can stifle career growth if not addressed. He advises to spend more time being open to what you could learn than spending time and energy on what you already know.
- Cast advises Version 1.0 types to “adopt the ‘lean thinking’ mentality in order to refresh their thinking and test new ideas.”
- Networks that individuals can “rely on for information and assistance” are critical when jobs are constantly in flux. According to the article, “A strong, diverse network can help you bounce back after a challenge or shake-up.”
You can read more from the article here.
From Disney to Starbucks, Shewalter Doesn’t Shy Away From Big Challenges – Gies College of Business News
The U. Illinois Gies College of Business recently profiled Erik Shewalter (BADM ’14) who offers insights from his transition from Disney’s DTC streaming service to product management role at the Starbucks Rewards Innovation Team where he oversees strategy and innovation.
Shewalter spoke at length about a defining moment from his “once-in-a-lifetime” opportunity at the Disney-branded streaming service where he realized how much he loved the work he was doing.
“One of the defining moments of my career will forever be one of my first meetings with Kevin Mayer (Chairman of Direct-to-Consumer and International). I came to the meeting prepared, and because I was so immersed in the data, I was able to share specific insights that influenced decisions like the choice to include Star Wars and Marvel content in the streaming service.”
One major reason Shewalter left Disney for Starbucks was to work alongside his fiancée Naomi Liu (FIN, BADM ’15) who works in food innovation.
“There are so many little perks that materialize every day, such as sharing a commute, or even sharing our networks (which is critical for succeeding at Starbucks). Also, we love to surprise each other by bringing the other person drinks and snacks throughout the day.”
Check out the entire Gies College of Business News interview here.
Rogers Park and Edgewater Businesses Becoming More Sustainable with Loyola’s Help – Quinlan School of Business
With the support of Loyola University’s Quinlan School of Business Experiential Learning Communities in Solidarity program, professor Nancy Landrum orchestrated partnerships with Smack Dab Chicago and Edge of Sweetness Bakery for her Sustainable Business Management class.
Teams from Landrum’s class “performed waste, water, and simple energy audits and completed greenhouse gas inventories” and then organized “cash mob” events to attract customers to the businesses.
According to the article, “Edge of Sweetness saw a 216 [percent] increase in sales during the cash mob, and Smack Dab Chicago saw a 51 [percent] increase.”
Edge of Sweetness co-owner Kate Merrill (BSN ’96) writes, “I was delighted and surprised by how thorough they were during the initial evaluation. They were also very proactive about what they wanted to do with the projects, which was very nice to see.”
Smack Dab Chicago co-founder Axel Erkenswick adds, “I was interested to see how in-depth the students went into their audits, including going through our waste. Energy conservation is important to me, because it shows customers that we are more than a McDonald’s. We are community driven and put our efforts into helping the environment.”
Read more about the Quinlan program here.
Kellogg On Pharma’s Lack of Innovation, and More – Chicago News
Let’s explore some of the most interesting stories that have emerged from Chicago business schools this week.
Everyone Wants Pharmaceutical Breakthroughs. What Drives Drug Companies to Pursue Them? – Kellogg Insights
Northwestern University Kellogg School of Management Professor of Finance Dimitris Papanikolaou recently co-authored new research that illuminates why “pharmaceutical firms these days often make minor changes to existing medications instead of delivering innovative drugs.”
The study, which was co-authored with HBS’s Joshua Krieger and MIT Sloan’s Danielle Li, found that “financial frictions may be limiting innovation.”
According to the article, “The researchers found that firms were eager to work on novel drugs—under the right financial circumstances. When pharmaceutical companies got a windfall, such as a sudden increase in profits, they were more likely to spend it on developing novel drugs than on incremental improvements.”
You can read more about the trio’s research here.
Kadiani Finds Passion for Social Entrepreneurship at Gies Business – Gies College of Business News
The University of Illinois Gies College of Business recently profiled current Master of Accountancy Science student Hamed Kadiani whose social entrepreneurship journey began as part of student organization Illinois Enactus, which helped him understand his desire to see “what the root of the problem is, and then develop a solution that fixes the cause, not the symptom.”
Kadiani later served as project manager for Project Oasis, an “online center that connects immigrants to resources in Champaign-Urbana, provides access to 75 resources in six main focus areas such as healthcare and education, [and] teaches immigrants financial literacy and entrepreneurial skills.”
According to the interview, Kadiani plans to become a CPA but shared his ambitions to some day run for political office.
“I hope I made an impact on campus, but I truly believe this work made more of an impact on me. I am who I am today because of this university and Gies College of Business.”
You can read more from the Gies College of Business News profile here.
Mendoza’s Marketing Major Puts a Strong Emphasis on Digital Skills – Mendoza Ideas & News
Notre Dame Mendoza’s Marketing Department recently recruited Professor Timothy Bohling, who will teaching Digital Marketing to both undergraduate and graduates in spring 2019.
Having previously held senior executive leadership positions at Stratasys, HCL Technologies, and IBM, Bohling’s research and teaching interests are “centered both on scholarly rigor and practitioner relevance in areas of digital marketing, customer relationship management, decision modeling, customer lifetime value and innovation adoption.”
The Mendoza Marketing Department has introduced four specialized tracks that emphasize data-based strategies: marketing decision analytics, brandscaping; consulting and market development; and digital marketing.
You can read more about Bohling, his research, and the 2019 courses here.
Gies Caterpillar Partnership Announced, and More – Chicago News
Let’s explore some of the most interesting stories that have emerged from Chicago business schools this week.
Government Got You Worried? It May Be Affecting Your Shopping Habits – Kellogg Insights
Northwestern Kellogg School of Management doctoral candidate Jessica Gamlin, along with professors of marketing Ping Dong and Aparna Labroo, found that “when consumers are thinking about politics, they are drawn to products they view as utilitarian rather than pleasurable.” In other words: “the more you fret about the state of the government, the more spartan your shopping cart might be.”
Speaking with Kellogg Insights, Gamlin explains her fascination with the dissonance between a seemingly banal meal-kit ad placed amidst a divisive political debate, “I was curious about why advertisers were choosing these different podcasts to advertise on in different quantities.”
Labroo also adds, “A desire for the government to do things in a more responsible manner translates into higher-order goals for the consumer, herself, to be responsible in her actions.”
Dong adds, “The reason is the more people think the political system is irresponsible, the more the desire to see the government be responsible is activated, and therefore, the more the consumer’s own goal is also activated.”
You can read more about the research here.
Caterpillar Invests in Students’ Futures with Illinois Business-Engineering Program – Gies College of Business News
As part of a decades-long relationship between the University of Illinois and the Peoria-based construction equipment manufacturer, Caterpillar has recently invested in the Gies College of Business and the College of Engineering’s new collaborative Hoeft Technology & Management undergraduate minor, in which “teams of business and engineering students learn and work together to develop comprehensive solutions to real-world problems.”
In the announcement, Caterpillar CTO and VP Tom Bluth says, “Becoming an affiliate of the program is a natural fit for us, because the intersection of business and engineering is at the core of how we develop the products and solutions that benefit our customers.
“We’re also proud to have been connected to the T&M Program since its start: A member of our Caterpillar family had the vision to create the program and the passion to make it possible.”
You can find out more about the Gies Caterpillar partnership here.
Six Marketing Fundamentals Founders Need to Succeed – Chicago Booth Magazine
Catherine Littell ’08
Chicago Booth Magazine recently profiled Catherine Littell (’08), whose Care Concierge LLC has taken an innovative approach to senior-care consulting. Littell, an Entrepreneur-in-Residence at the James M. Kilts Center for Marketing, discussed her “multipoint approach to launching a business in the digital age.”
- Know your customer. “There are a lot of great ideas out there. But can you take that idea and create a product for the right customer at the right time?”
- Hone your message. “It’s really about understanding your customer and creating an authentic experience.”
- Let the data speak. “Data will tell you whatever you want it to, good or bad, so make sure you use it to inform rather than just to affirm your decisions.”
- Run the numbers. “Starting a business is about gut feelings, but knowing the numbers can help you figure out whether or not a business is profitable or can be profitable.”
- Be comfortable with change. “You’ve got to be able to trust your gut and say, ‘If it works, great, and if it doesn’t, let’s change tactics and move forward.’”
- Hire the right team. “If you find people who have drive and passion, plus they love your product and can define what you do and stand for, that’s really powerful.”
You can read the full article here.
Working From Home, Maximizing Profits, and More – Chicago News
Let’s explore some of the most interesting stories that have emerged from Chicago business schools this week.
Are You a Different Person at Work Than at Home? Compartmentalizing Like This Can Lead to Unethical Decisions – Kellogg Insights
Northwestern Kellogg Assistant Professor of Marketing Maferima Touré-Tillery and the University of the Sciences’ Alysson Light coauthored new research, which finds that “people who perceive their personalities as constant across their roles are more likely to behave ethically than those who think of themselves differently in each role.”
Touré-Tillery explains, “If I tend to think about myself the same way from one identity to the next, then if I do something that’s going to make me feel bad about myself, it’s likely that I’ll feel bad about myself across all of my identities.”
She adds, “Every unethical thing amplifies that sense of being a bad person. By having them merge their work and personal lives, you are helping them merge their identities as parent and worker—so they might behave more morally across the board.”
You can read the full Kellogg Insights article here.
Should Public Companies Do More Than Maximize Profits? – Chicago Booth
At a recent panel discussion hosted by Chicago Booth’s Rustandy and Stigler Centers, BlackRock Co-founder Sue Wagner and Booth’s Luigi Zingales and Marianne Bertrand dissected BlackRock CEO Larry Fink’s letter to his fellow CEOs, imploring them to engage more deeply with social issues as part of their long-term strategies.
Moderator Robert H. Gertner explains, “We have seen greater discussion, both within and outside of academia, about the role of corporations. It has come from consumers, from employees, from the government, from academics, and from investors. Perhaps this letter from Larry Fink may go down as a sort of cornerstone of this discussion.”
You can read the full exchange between all the panelists here.
Tech Leader Shares His Views On Innovation, Autonomous Vehicles, and Purpose – Gies School of Business News
The University of Illinois Gies College of Business recently hosted Mobileye ASIC Department Project Manager and Founding Engineer Mois Navon, who discussed how his company’s purpose has driven their success.
The Israeli-based Mobileye is “one of the leaders in driver assistance technology and autonomous vehicle research.” According to the article, “the demonstrated ability of [Mobileye’s] products to help prevent accidents led insurance companies to give discounts to people who used them. People were getting into fewer accidents, and the accidents they did get into were less severe.”
Navon explains Mobileye’s purpose within the Jewish concept of tikkun olam, which means “fixing the world.”
“I think that technology is that driving force for fixing the world—even though new technologies can engender difficult transitions. I think humanity is ultimately driven by purpose. We’re here to fix ourselves. We’re here to fix the world. And I hope you’ll join me.”
You can read more about the company and Navon’s speech at Gies here.
Supreme Court Ideology, Deniability, and More – Chicago News
Let’s explore some of the most interesting stories that have emerged from Chicago business schools this week.
Supreme Court Justices Become Less Impartial and More Ideological When Casting the Swing Vote – Kellogg Insights
In a new paper coauthored by Northwestern Kellogg Associate Professor of Managerial Economics and Decision Sciences Jörg Spenkuch and Emory University’s Tom S. Clark and B. Pablo Montagnes, the trio found that “the effect of a justice’s ideology on how he or she votes essentially doubles when the vote is pivotal.”
Spenkuch explains, “”Our idea of a good judge is that of an impartial umpire. But justices in some cases disregard the role of the umpire in favor of that of the politician.”
“During confirmation hearings, no justice ever admits that they’re interested in making policy. There is a nontrivial number of cases that would be decided differently if justices did not vote strategically. It draws into doubt the notion of the Supreme Court as an institution where litigants come to get justice.”
You can read more about the trio’s research here.
Sidestepping the Pitfalls of Overconfidence with Plausible Deniability – Mendoza Ideas & News
In Notre Dame University Mendoza College of Business postdoctoral Research and Teaching Associate Nathan Meikle’s forthcoming Journal of Personality and Social Psychology paper, he illuminates how people in positions of power—politicians, business leaders—can successfully toe the line between confidence and arrogance.
According to the article, “expressing confidence non-verbally through making eye contact, gesturing, adopting an expansive posture or speaking in a strong voice allows people to enjoy the social benefits of expressing confidence while simultaneously reducing the risk they’ll be punished for overconfidence.”
The key is to leverage plausible deniability — “the ability to deny responsibility due to a lack of concrete evidence.”
Meikle explains, “The plausible deniability hypothesis explains why overconfidence sometimes, but not always, is punished. For example, verifiably overconfident claims, void of plausible deniability, will face consequences. However, there are a number of ways people can create plausible deniability.”
“Future claims necessarily enjoy some degree of plausible deniability because they cannot be proven wrong in the moment,” Meikle continues. “Thus, individuals boasting about future events would be expected to enjoy the benefits of expressing confidence while simultaneously sidestepping the potential costs. However, even if overconfident claims are eventually proven false, people can still create plausible deniability by undermining the messenger, such as calling it ‘fake news.’”
“One strategy is to make audacious claims about future events. President Trump frequently makes bold claims, such as he alone can bring coal mining jobs back to West Virginia,” Meikle explains / Photo via DOMINICK REUTER/AFP/Getty Images
You can read the full article from Mendoza Ideas & News here. “Is Overconfidence a Social Liability? The Effect of Verbal Versus Nonverbal Expressions of Confidence” is also available here.
Hurricane Victims Face Long, Uncertain Road to Recovery – Gies College of Business Blog
U. Illinois Gies College of Business Professor of Finance Tatyana Deryugina, who studies the financial impacts of natural disasters on families, explains that “even after the floodwaters recede … families displaced by Hurricane Florence will face months and months of financial hardship.”
Deryugina explains, “If you have kids, there’s the school closures—so parents might have to figure out what to do with their children in the meantime. Even if your workplace is open, you may not be able to go back and work. Building materials will be expensive in the short-term. A lot of people rebuilding causes supply issues.”
“Even if you rebuild, and it looks nice and new, people are going to remember this event. Not only are you going to face building and repair costs, but now your home is worth less than it was before”
She adds, “What we’re seeing with Florence is rivers overflowing, which is worse than just having the floodwater accumulate from the heavy rain because that’s going to be longer-lasting.”
“New Orleans was below sea level, so the flooding just persisted. The longer areas stay uninhabitable, the more people are going to leave and just not return. If you’re somewhere for a couple months, it becomes much easier to stay there.”
You can read the full article here.
