Falling green technology costs mean that transitioning to clean energy will be cheaper than not doing so. Meaningful conversations can change minds. Macroeconomic uncertainty inevitably plays out in business decision-making. Consistently buying-in innovation rather than internally developing it is a trap to be avoided. Motivation is key, this can only come from within – identify what you enjoy rather than what you want.
QUOTE OF THE WEEK
ARTICLE OF THE WEEK
Decarbonising the energy system by 2050 could save trillions – Oxford study, News and Events
(University of Oxford, 14 September 2022)
Very good news! According to a new peer-reviewed study (available HERE), transitioning to a decarbonised energy system by around 2050 could save the world at least $12 trillion, compared to continuing our current levels of fossil fuel use. This short summary shows that the idea that going green will be expensive is ‘just wrong’ – green technology costs have fallen significantly over the last decade and are likely to continue falling. Therefore, a fast transition to clean energy is cheaper than slow or no transition – achieving a net zero carbon energy system by around 2050 is possible and profitable (free access – reads in 4-5 min).
Click here to read the full article
Olivier Coibion, Yuriy Gorodnichenko and Saten Kumar, The effect of macroeconomic uncertainty on firm decisions
(Vox-EU, 19 September 2022)
It’s a cliché to say that the world is becoming increasingly uncertain, but how do companies react to it and how does it affect the business cycle? Using a randomised control trial, this column shows (unsurprisingly) that higher macroeconomic uncertainty causes businesses to reduce their (1) prices, (2) employment, and (3) investment relative to prior plans, the effects of which are economically significant (free access – reads in 5-6 min).
Click here to read the full article
Virginia Hughes, How to Change Minds? A Study Makes the Case for Talking It Out
(The New York Times, 16 September 2022)
This article echoes what we seek to pursue at the various MB Summits of Minds and rhymes with our conviction that it is essential to pay attention to dissenting voices and opinions. “Conversation is our greatest tool to align minds” – this is why cognitive neuroscientists found that meaningful conversation among several people can align beliefs and brain patterns, on condition that the group is free of blowhards (gifted article – reads in 6-8 min).
Click here to read the full article
Bijan Khezri, The Perils of Innovation by Acquisition
(Harvard Business Review, 21 September 2022)
The investor who’s developed a neuroscience-inspired governance framework (and whom some of our community members might have met at past MB Summits of Minds in Chamonix) argues that when capital is cheap, companies overdo it on M&A. He claims that too many CEOs have fallen into the comfort zone of strategizing with bankers and external advisors, neglecting to build their internal capacity for innovation. Avoiding this trap requires a wholesale reinvention of a company’s governance, the goal of which is an integrated, internal innovation strategy where top-down and bottom-up innovation support one another (metered paywall – reads in 5 min).
Click here to read the full article
Allie Volpe, How to figure out what you want out of life
(VOX, 19 September 2022)
As this article makes plain, what society expects of us and what we actually want in life can be two different things. We tend to conform our behaviours to those around us to gain acceptance; but to lead a meaningful life, we must get to the root of our motivations. Perhaps unsurprisingly, people feel more competent, more connected to others, and more independent when they are intrinsically motivated — that is, internally or self-motivated. Hence, the question we should be asking ourselves is not ‘What do we want out of life?’ but rather ‘What do I enjoy about life?’ (free access – reads in 6-7 min).
Click here to read the full article
