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IdeaWatch

RE M OTE WORK

Do We Make More
Mistakes When
Working from Home?
When the Covid-19 pandemic forced
many workers to go remote, managers
fretted about possible declines in
productivity. More than two years later,
studies suggest that their fears were
largely unfounded. But what about
remote workers’ cognitive performance? of the series—suggesting that people rank of the highest female member, the
To investigate, a research team turned adapt over time. ranks of all female members, and the
to an unusual empirical setting: profes- number of responsibilities on their
sional chess. dockets. The researchers calculated
ABOUT THE RESEARCH “Cognitive
The researchers analyzed a set of the share of customer-oriented words
Performance in Remote Work:
online tournaments organized during Evidence from Professional Chess,” by in each firm’s annual reports and used
the pandemic by the reigning world Steffen Künn, Christian Seel, and Dainis Tobin’s q (the market value of a firm
champion, Magnus Carlsen, which Zegners (The Economic Journal, 2022) divided by the replacement value of
were structured to mirror traditional its assets) to assess long-term financial
offline contests. Because most par- performance. The greater the female
GENDER
ticipants had competed in at least influence, the higher the firm’s cus-
one recent World Chess Federation How Women tomer orientation and Tobin’s q.
tournament, the researchers were able Women generally operate from a
in the C-Suite
to compare individuals’ online and so-called interdependent self-construal,
in-person performances, using the AI Boost Financial the researchers explain: They are more
in a leading chess engine to assess more Performance likely than men to see things in terms of
than 200,000 moves and associated relationships and to consider the per-
errors. They found that the quality of Women now account for roughly one in spectives of others. So when in positions
play was 7.5% lower, on average, when four executives (though very few CEOs) of influence in the C-suite, they often
participants competed online. Although in the S&P 500. What does that mean for promote strategic decisions that reflect
the researchers couldn’t determine their firms’ financial performance? A a higher focus on customers—which
why that happened, they say that the new study finds that female executives previous research has linked to higher
absence of peers probably contributed. focus on customer relationships more Tobin’s qs.
“Cognitive tasks are important in than their male counterparts do—and The results varied according to
many modern professional, managerial, that bolsters long-term business results. several characteristics of the firm and
technical, and creative occupations,” The researchers studied 389 publicly the management team. The effect of
the researchers note, and so perfor- traded Fortune 500 firms from 2007 to female influence was stronger when
mance in other remote settings might 2015. To measure female influence on the C-suite had a high degree of control
likewise take a hit. However, the decline the top management team, they consid- over strategy—for instance, when it was
in chess players’ performance was ered four factors: the share of positions relatively unburdened by regulations.
steepest in the first two tournaments on the team that were held by women, the It was also stronger when the board had

22 Harvard Business Review


January–February
THE TOGGLING TAX
Employees at three Fortune 500 companies to led among apps and websites nearly 1,200 times a day,
on average. They spent just under four hours a week—the equivalent of five working weeks annually—
reorienting themselves after each switch. “How Much Time and Energy Do We Waste To ling Between
Applications?” by Rohan Narayana Murty, Sandeep Dadlani, and Rajath B. Das

robust female representation or had similar ticket had been sold to another to accept the offers. Those effects were
directors with marketing experience. It customer for the same price; the others attenuated, however, when the bot was
was weaker when firms were contending were told that another customer had got- anthropomorphized.
with unpredictable customer prefer- ten a better deal. Half the participants “Our results reveal that an AI ‘bad
ences, lots of technological change, or in each group interacted with a human cop’/human ‘good cop’ approach to
strong competition, or when they had a ticket agent, while the other half inter- managing discrepant expectations
high degree of family ownership. acted with a bot. Among those offered should have beneficial effects” when
Overall, the findings challenge prior the similarly priced ticket, the type of communicating with consumers
thinking, the researchers say. “Many agent made no difference to acceptance about unforeseen delays or expedited
studies…suggest that female executives rates. But among participants offered deliveries, stockouts or upgrades, and
engage in reduced risk-taking, but cus- the higher-priced ticket, just 19% of so on, the researchers write. They add
tomer orientation may actually result those interacting with a person wanted a caveat: Although customers often
in female executives pursuing riskier to buy it, while 49% of those interacting hold unrealistic expectations about a
strategies,” they write, noting that under with a bot did. When the other customer product or service and would be well
Mary Barra’s leadership, GM surprised was said to have paid a higher price, the served by inducements to accept it, “in
many observers by abandoning several opposite happened: The human agent those instances where the worse-than-
models of sedans in favor of increas- elicited greater willingness to purchase expected offer is objectively detrimental
ingly popular SUVs, thus fundamentally (89%) than the bot did (76%). to consumers, the use of this approach…
changing the firm’s strategic direction. Subsequent studies explored why that raise[s] ethical concerns.”
pattern occurred. People inferred that
the bots were both less selfish than their
ABOUT THE RESEARCH “Bad News?
ABOUT THE RESEARCH “Customer human counterparts (when offers were
Send an AI. Good News? Send a
Orientation and Financial Performance: disappointing) and less benevolent Human,” by Aaron M. Garvey, TaeWoo Kim,
Women in Top Management Teams Matter!”
(when offers were better than expected), and Adam Duhachek (Journal of Marketing,
by Chandra Srivastava, Saim Kashmiri,
and that influenced their willingness 2022)
and Vijay Mahajan (Journal of Marketing,
forthcoming)

A RT I F I C I A L I N T E L L I G E N C E

Let a Robot Be
the “Bad Cop”
Research has shown that consumers
often would rather interact with human
agents than with automated ones. But
a new study paints a more nuanced
picture: When communicating a disap-
pointing offer, a bot gets better results.
In one experiment, participants
imagined that they were thinking of
buying a concert ticket from an online
resale agency. Some were told that a

Harvard Business Review


January–February 23

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