The Inherent Failures of Long-Term Contracts — and How to Fix Them
HBR IdeaCast3 Syys 2019

The Inherent Failures of Long-Term Contracts — and How to Fix Them

Oliver Hart, Nobel-winning Harvard economist, and Kate Vitasek, faculty at the University of Tennessee, argue that many business contracts are imperfect, no matter how bulletproof you try to make them. Especially in complicated relationships such as outsourcing, one side ends up feeling like they're getting a bad deal, and it can spiral into a tit for tat battle. Hart and Vitasek argue that companies should instead adopt so-called relational contracts. Their research shows that creating a general playbook built around principles like fairness and reciprocity offers greater benefits to both businesses. Hart and Vitasek, with the Swedish attorney David Frydlinger, cowrote the HBR article "A New Approach to Contracts."

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Why Some Companies Thrived During the Pandemic

Why Some Companies Thrived During the Pandemic

Keith Ferrazzi, founder of the consulting firm Ferrazzi Greenlight, led a survey of more than 2,000 executives to study how they reengineered operations during the pandemic. The research identified a ...

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Inside Companies that Get the Purpose-Profit Balance Right

Inside Companies that Get the Purpose-Profit Balance Right

Purpose has become a corporate buzzword over the past decade. Leaders are embracing the idea that companies can’t just do well financially; they also have to do good for society. But how many organiza...

15 Helmi 202228min

The Positives—and Perils—of Storytelling

The Positives—and Perils—of Storytelling

Jonathan Gottschall, a distinguished fellow at Washington & Jefferson College, has researched storytelling and its unique power to inspire. But as he spoke at business conferences and grew aware of th...

8 Helmi 202225min

Need a Reset? Try This One Quick Meditation Session (Bonus)

Need a Reset? Try This One Quick Meditation Session (Bonus)

You've probably heard about the benefits of mindfulness and how meditation can help you achieve it. But you still can't find the inclination to start or the time to practice regularly. In this short b...

3 Helmi 202215min

No, Tech Start-ups Aren’t Taking Over the World

No, Tech Start-ups Aren’t Taking Over the World

Looking at business news and stock market coverage over the past decade (including a few HBR articles), you'd think that just about every traditional, old-economy company has fallen prey -- or will so...

1 Helmi 202228min

Why Companies Should Stop Political Spending Now

Why Companies Should Stop Political Spending Now

A decade ago, the U.S. Supreme Court changed the rules on how businesses could donate to political campaigns. Since then, hundreds of millions of corporate dollars have been spent on local, state, and...

25 Tammi 202226min

How Companies Reckon with Past Wrongdoing

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Sarah Federman, assistant professor at the University of Baltimore, studies how companies handle their historical misdeeds and what that means for employees and customers. From insurance firms that ba...

18 Tammi 202222min

To Get Ahead, You Need Both Ambition and Humility

To Get Ahead, You Need Both Ambition and Humility

We know that great leadership takes not just intelligence and drive but also the ability to get along well with and learn from others. The key, says Amer Kaissi, is to be both ambitious and humble thr...

11 Tammi 202225min

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