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TOM KOCHAN: Well, good
afternoon, everyone,

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or good morning or good evening.

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No matter where you
are in the world,

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it's some time of
the day or night.

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And I'm delighted that
we can use this time now

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to provide a wrap-up
to the journey

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that we've been on for
the last seven weeks.

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We've covered a lot of ground.

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We've looked at a lot
of different issues

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that are so central to our
future, to the future of work.

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And today, what we want to
do is to try to take stock.

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What did we learn?

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Where are we going?

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How are we going to individually
and then collectively make

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this a better workplace for
the future for all concerned?

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So I'm really pleased that we
can have this session in a very

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interactive way.

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And as we indicated on
the course materials,

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you can post questions or
comments as we go along.

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Some of you, I know,
are already on Twitter.

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There's the hashtag,
and I believe

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that's going to continue to
show for you, those of you who

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are comfortable using Twitter.

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And one of our colleagues
here in the classroom

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will convey your
questions or comments.

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You can also post on
the discussion board

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where we put a heading
for the live discussion.

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So let's make this really
an interactive session.

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I'm joined here this
afternoon by our MBA

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class that has been working
with us throughout the semester.

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As you know, many of them served
as expert facilitators for you.

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So now they all
have a certificate

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in mediation and facilitation.

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They're experienced,
and they're going

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to go out and start doing this
in the workplace of the future.

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But we'll take questions and
comments from our colleagues

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here because they've been
following and working

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on the same issues as we've
been going through this course.

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So why don't we get started?

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And let's see a little
bit first, who are we?

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Well, I want to
thank our partners.

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This enterprise is only
possible because we

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have a lot of good organizations
that are working together

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to make it possible,
starting with edX and MITx,

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our platform and
our delivery source,

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and the team of people
working behind the scenes

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to do the videos with me
and with our colleagues

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and to do the editing and to
put the materials on the course

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site, all part of this process.

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I'm very pleased
that we have partners

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at both Cornell University
and the School of Labor

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and Industrial Relations
and at Rutgers University

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and the School of Management
and Labor Relations,

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where classes have taken the
course on their own campus.

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And in fact, we're going to draw
on some of the material that

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were provided by students
from those classes

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as we move along
here this afternoon.

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And then, finally,
our colleagues

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at the Hitachi Foundation.

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You saw one video that
Barbara Dyer helped

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to produce on entrepreneurship.

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Well, the Hitachi Foundation
is a partner with us

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throughout this course in
providing materials and support

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as we go along.

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So with the MIT
School of Management,

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with our Institute for Work
and Employment Research,

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we have lots of organizations
supporting this enterprise.

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And then, who are we?

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Well, we are at 4,299
students and counting.

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That number went
up this morning,

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so I suspect it may continue
to grow as we go along

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and as we keep this material
live on the course site.

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But it's a very,
very diverse class,

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and that's what makes
it really interesting--

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144 countries.

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We have people-- a
wide distribution

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of educational backgrounds,
from high school, some students

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in high school,
students graduated

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from high school in technical
and vocational schools,

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many who have gotten
four-year degrees,

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and a large number
with advanced degrees.

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So it's a group that reflects
the notion that education

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is important, a theme that we
beat over the head very hard

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throughout the course and
we'll continue to talk

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about here this afternoon.

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Also, a very interesting
age distribution.

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The median age is 31.

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But if you look at
this distribution,

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you see that there are
many younger people

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and then a spattering of
people more senior to age 31,

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all the way up to
someone in their 90s.

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So welcome to our
senior citizens

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who are still interested in
shaping the future of work.

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I think that's fantastic.

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So gender-- we have majority of
males but a good distribution.

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We have distribution
also in terms

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of backgrounds in industries.

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I don't put it on
the slides here,

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but we have people
with experience

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in all different
industries and occupations.

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We have people who
are union members

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or have been union
members, about 18% or 19%.

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That's a larger number than
you find in the United States

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in the distribution
of the population.

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But then around
the world it's more

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reflective of the
workforce as we find it,

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and people of all different
occupational levels,

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from entry level to PhDs
and advanced professionals,

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people working in
the gig economy,

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and people working in
more standard settings.

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So we learned a lot
from each other.

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And let's take a look at what
some of the overriding lessons

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are.

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I put three lessons
here that reflect

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really the motivation
for this course

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and that were
emphasized throughout.

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And I'll only use
these to introduce

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where we're going to go.

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But basically you
put a lot of emphasis

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on this "high road/low
road" distinction,

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as we did in teaching
this material,

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that we know that there are
choices that companies can make

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to create good organizations
that are financially

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successful, and
that if they follow

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a set of well-defined
practices, that can also

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be good for their employees.

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But not all firms
compete that way.

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Not all firms are
organized that way.

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And so we emphasized and you
emphasized the importance

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of trying to encourage
more "High Road"

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firms as a key takeaway
lesson from this course.

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We also emphasize something
that many found surprising,

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the notion that we need to
rebuild worker bargaining

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power, particularly here
in the United States,

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but increasingly
across the world.

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And some of you reminded
us in the discussion forum

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as late as this afternoon that,
in some parts of the world,

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workers don't have a
legal right to organize,

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or a legal right to
voice their concerns,

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or that their efforts
are suppressed

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in a variety of ways.

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And so we have to respect
workers for their rights,

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for the dignity of work, and
the opportunity for expressing

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their concerns with power
and with effectiveness

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so that they can contribute
both to their own improvements

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but also to the viability
of their enterprises.

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And then finally, this emphasis
on trying to get business,

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and labor, education, and
government working together.

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We particularly feel it
here in the United States

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at the moment, with the
rhetoric, the unfortunate

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rhetoric, and my personal
view that is so active

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and maybe even dominating
our political campaign

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at the moment, with people not
respecting each other's rights,

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each other's backgrounds,
each other's traditions,

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and each other's preferences.

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And I think we've
got to find ways

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to get across these
interest group

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lines to solve some
of these problems.

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So that's a bit of an
overview of what we've covered

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and some of the major themes.

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Now let's dig a
little bit deeper.

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And let's start with, what
do you want from work?

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Remember, we started
with a question right

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at the beginning of the class.

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What's the most important
priority for you

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when you think about what
you're looking for in your work

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and in your careers?

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And the results are
quite interesting,

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and I think they're more nuanced
than even this pie chart shows.

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Yes, number one is
getting a good balance

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between work and family life.

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26% of you rated that
your top priority,

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followed very closely by
this interesting concern

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for having an
impact, for dealing

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with real problems, significant
problems, in your society

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and your location,
your community.

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You want to address the issues
that are in front of us today.

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Maybe it's dealing
with climate change

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and saving the
planet for yourselves

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and the next generation,
other generations to follow.

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Maybe it's dealing
with the poverty

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that we find in too
many parts of our world.

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Maybe it's dealing with some
of the social challenges

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and conflicts that we
have in the war-torn areas

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of the world.

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But you want to
make a difference,

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and I think that is fantastic.

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And yes, you want a
good financial return

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for your investments
and your contributions.

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But notice, these
are mixed together.

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And I think when we did
the interviews, when

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we did the exercise
around asking, how

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are your views similar or
different than your parents,

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the dominant thing
that came through

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in your qualitative
comments, to me,

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was that you want many of the
same things as your parents--

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respect, security in some
sense, financial security.

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But you also want more.

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You recognize you
are perhaps more

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privileged than your
parents or grandparents

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and that you are
in a position where

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you can have an opportunity
to have a meaningful job,

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make a meaningful contribution,
and really contribute

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to improving society.

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And so I think there's more
that you expect out of work

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than perhaps prior generations.

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Here is just a
couple of examples.

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And I want to put a little
bit more substance on that pie

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chart, because I think
it tells us something

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about the complexities
of work today

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and of the workforce today.

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And this is one point
that someone made,

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and I think it summarizes
that chart pretty nicely.

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"I dream of a well-balanced work
and family environment, where

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I can develop my
skills and put them

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to service of my
community, as well as

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to get a wage that allows me
to live decently and provide

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for my future offspring."

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So here we bring family
and work together.

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We bring commitment
to an important cause,

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but an expectation that I can
do this in a way that will

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take care of my family needs.

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Our MBA students
here in the classroom

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had an assignment to go out
and talk to other workers,

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to interview them and
do an audio recording.

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And we received some fantastic
recordings and stories

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from workers telling their
own story about work.

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And I just want to
illustrate two of them

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that I think help bring home
the complexity and the diversity

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that we find in work experiences
and in our workforce today.

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This one says-- it's an
immigrant from Ghana working

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in a temporary job in
transportation and construction

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and manufacturing services
and has had a variety

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of these kinds of jobs.

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And what is his aspiration?

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It's very basic and very
simple for an immigrant.

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He wants to finish school.

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He wants to get a better job.

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He wants to start a family.

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And he wants to
live comfortably.

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That's the immigrant story
that builds so many countries

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around the world, where people
take the risks of moving

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from their homeland to somewhere
else in search of a better

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life.

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And it's our
responsibility, therefore,

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to make sure that people
who have that aspiration

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can actually realize it.

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And we appreciate the value
that they bring to our countries

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when they come.

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And I thought that was a
very interesting comment.

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00:12:43,660 --> 00:12:45,310
And this is one.

252
00:12:45,310 --> 00:12:47,590
This might be one of
my most favorite ones.

253
00:12:47,590 --> 00:12:50,500
It's from a 26-year-old
college graduate

254
00:12:50,500 --> 00:12:53,260
who is an Uber
driver at the moment.

255
00:12:53,260 --> 00:12:57,010
And just I'll read this because
it illustrates the complexity

256
00:12:57,010 --> 00:13:00,070
of what's going on in
this individual's mind

257
00:13:00,070 --> 00:13:03,280
and in his life in trying to
figure out where to go next.

258
00:13:03,280 --> 00:13:06,010
And he's saying, what am I
looking for in the next job?

259
00:13:06,010 --> 00:13:08,740
Well, I'm "looking for
a well-paying job--

260
00:13:08,740 --> 00:13:11,810
over $15 an hour."

261
00:13:11,810 --> 00:13:13,550
Whether we consider
that well paid or not

262
00:13:13,550 --> 00:13:15,860
is another question, but
that's what his aspiration

263
00:13:15,860 --> 00:13:16,820
is at the moment.

264
00:13:16,820 --> 00:13:19,650
"Salary is definitely there, but
number one is the environment--

265
00:13:19,650 --> 00:13:22,400
as long as I enjoy
what I'm doing--

266
00:13:22,400 --> 00:13:25,820
be able to live your life
and enjoy what you are doing.

267
00:13:25,820 --> 00:13:29,330
But now I'm finding that
it's really hard to live off

268
00:13:29,330 --> 00:13:33,560
one job; I see lots of people
having to work two jobs.

269
00:13:33,560 --> 00:13:36,410
For me, it's just to be
able to support yourself

270
00:13:36,410 --> 00:13:38,990
and your family with one job."

271
00:13:38,990 --> 00:13:45,560
Seems to me that's a very,
very basic simple aspiration,

272
00:13:45,560 --> 00:13:49,490
that if we can't deliver on
that particular expectation,

273
00:13:49,490 --> 00:13:51,890
there's something wrong
with our work systems.

274
00:13:51,890 --> 00:13:53,800
There's something
wrong with our economy.

275
00:13:53,800 --> 00:13:56,420
And there's something wrong
with the way in which we

276
00:13:56,420 --> 00:14:00,080
are structuring work today.

277
00:14:00,080 --> 00:14:02,630
If we can't really
provide an opportunity

278
00:14:02,630 --> 00:14:05,690
to support yourself and
your family with one job,

279
00:14:05,690 --> 00:14:08,030
we've got a lot more work to do.

280
00:14:08,030 --> 00:14:10,370
These were just a
couple of the interviews

281
00:14:10,370 --> 00:14:15,590
that came from our MBAs.

282
00:14:15,590 --> 00:14:19,910
But I want to turn to the people
in the classroom and ask them.

283
00:14:19,910 --> 00:14:23,840
Just very quickly, just give
a quick one minute or a one

284
00:14:23,840 --> 00:14:26,470
sentence or two summary.

285
00:14:26,470 --> 00:14:28,720
What surprised you when
you talked to workers?

286
00:14:28,720 --> 00:14:30,910
Because I encouraged
the students

287
00:14:30,910 --> 00:14:32,552
to go out and not
just talk to someone

288
00:14:32,552 --> 00:14:37,372
who was very much like them, but
to talk to people [INAUDIBLE]

289
00:14:37,372 --> 00:14:40,508
from a little background
[INAUDIBLE] occupation.

290
00:14:40,508 --> 00:14:42,674
So just very quickly, let's
just get some statements

291
00:14:42,674 --> 00:14:44,944
about what surprised you.

292
00:14:44,944 --> 00:14:46,710
Leo's going to start us off.

293
00:14:46,710 --> 00:14:47,590
AUDIENCE: Thank you.

294
00:14:47,590 --> 00:14:51,130
I think for me it's
reading this and comparing

295
00:14:51,130 --> 00:14:52,390
to what I had in my interview.

296
00:14:52,390 --> 00:14:53,860
I actually interviewed
someone who

297
00:14:53,860 --> 00:14:55,443
worked at management
consulting, which

298
00:14:55,443 --> 00:14:59,055
is very high-prestige
profession, very well-paid.

299
00:14:59,055 --> 00:15:00,430
And the thing they
complained was

300
00:15:00,430 --> 00:15:02,710
balance between work
and personal life,

301
00:15:02,710 --> 00:15:05,280
working 100 hours a
week and having to--

302
00:15:05,280 --> 00:15:07,030
they wanted to quit
just to have more time

303
00:15:07,030 --> 00:15:09,100
to spend doing the
things they liked

304
00:15:09,100 --> 00:15:10,860
and being with their families.

305
00:15:10,860 --> 00:15:14,620
So both on the top
and the bottom,

306
00:15:14,620 --> 00:15:17,740
people are feeling the same
need of, like, maybe they're

307
00:15:17,740 --> 00:15:20,050
overworking and, like,
too much pressure on them.

308
00:15:20,050 --> 00:15:20,758
TOM KOCHAN: Yeah.

309
00:15:20,758 --> 00:15:24,522
So here's this
concern of, I'm always

310
00:15:24,522 --> 00:15:27,842
on the road or [INAUDIBLE].

311
00:15:27,842 --> 00:15:31,340
What else did you hear?

312
00:15:31,340 --> 00:15:34,960
AUDIENCE: So with the first
citation we had up there--

313
00:15:34,960 --> 00:15:37,794
I was interviewing a
French retail worker.

314
00:15:37,794 --> 00:15:40,210
And it was interesting to hear
how that worker didn't want

315
00:15:40,210 --> 00:15:42,043
to use their nationality,
which could easily

316
00:15:42,043 --> 00:15:44,170
be associated with
luxury products,

317
00:15:44,170 --> 00:15:45,140
as their selling point.

318
00:15:45,140 --> 00:15:46,330
So they were trying to
kind of break out of it,

319
00:15:46,330 --> 00:15:47,740
and they recognized the value.

320
00:15:47,740 --> 00:15:49,210
But just interesting
to hear how different

321
00:15:49,210 --> 00:15:50,380
backgrounds and
nationalities can

322
00:15:50,380 --> 00:15:52,810
influence how you approach
work, how you succeed at work,

323
00:15:52,810 --> 00:15:54,610
and how you want to
be identified at work.

324
00:15:54,610 --> 00:15:55,318
TOM KOCHAN: Yeah.

325
00:15:55,318 --> 00:15:59,530
So here is someone [INAUDIBLE].

326
00:15:59,530 --> 00:16:04,190
And the fact that this person
was a wine salesman, well,

327
00:16:04,190 --> 00:16:07,230
we tend to think, French
wine, my goodness.

328
00:16:07,230 --> 00:16:09,510
But he wanted to demonstrate
that he knew wine

329
00:16:09,510 --> 00:16:11,340
not because he was
French and didn't

330
00:16:11,340 --> 00:16:14,910
want to use that as
a marketing device.

331
00:16:14,910 --> 00:16:18,150
He wanted to demonstrate he
really loves this cuisine.

332
00:16:18,150 --> 00:16:19,140
He loves to do it.

333
00:16:19,140 --> 00:16:20,460
He loves to sell it.

334
00:16:20,460 --> 00:16:22,970
And he wants to have an impact.

335
00:16:22,970 --> 00:16:24,806
What else?

336
00:16:24,806 --> 00:16:27,380
Yeah, [? Cueto. ?] Go ahead.

337
00:16:27,380 --> 00:16:29,570
We lost the-- here we are.

338
00:16:29,570 --> 00:16:30,232
Go ahead.

339
00:16:30,232 --> 00:16:31,690
AUDIENCE: I
interviewed someone who

340
00:16:31,690 --> 00:16:34,400
works with the state
of Massachusetts

341
00:16:34,400 --> 00:16:36,094
on the theme of work balance.

342
00:16:36,094 --> 00:16:37,760
He said something
interesting, that even

343
00:16:37,760 --> 00:16:40,093
though a lot of times people
think working in government

344
00:16:40,093 --> 00:16:42,740
doesn't pay well, the
work balance actually

345
00:16:42,740 --> 00:16:44,690
comes into effect
because you're not

346
00:16:44,690 --> 00:16:47,000
allowed to check your
emails when you go home.

347
00:16:47,000 --> 00:16:48,950
So in the private
sector, you may

348
00:16:48,950 --> 00:16:50,810
get a cell phone
and laptops and all

349
00:16:50,810 --> 00:16:53,402
that, but somehow you're
expected to be on 24/7.

350
00:16:53,402 --> 00:16:54,110
TOM KOCHAN: Yeah.

351
00:16:54,110 --> 00:16:58,175
So this technology can either
be our ally or our worst enemy,

352
00:16:58,175 --> 00:17:00,792
and they have a solution or a
strategy for dealing with it.

353
00:17:00,792 --> 00:17:02,000
So that was very interesting.

354
00:17:02,000 --> 00:17:02,611
Good.

355
00:17:02,611 --> 00:17:03,110
[? Ladia. ?]

356
00:17:03,110 --> 00:17:03,735
AUDIENCE: Yeah.

357
00:17:03,735 --> 00:17:05,854
I interviewed a
immigrant worker.

358
00:17:05,854 --> 00:17:09,264
She was a woman from Bangladesh
working for last 10 years

359
00:17:09,264 --> 00:17:10,089
in the US.

360
00:17:10,089 --> 00:17:14,049
And that surprised me when
I asked, what is your wish?

361
00:17:14,049 --> 00:17:15,781
She said that, I
want that I could

362
00:17:15,781 --> 00:17:17,349
save that amount
of money, that I

363
00:17:17,349 --> 00:17:19,329
can afford a
two-bedroom house, and I

364
00:17:19,329 --> 00:17:20,979
can keep my child with myself.

365
00:17:20,979 --> 00:17:23,942
And she was already
doing two jobs.

366
00:17:23,942 --> 00:17:27,358
And that made me think that
the price of the housing

367
00:17:27,358 --> 00:17:31,506
is so high, and a person who
is working full time, and even

368
00:17:31,506 --> 00:17:33,214
for the extra
time-- she was doing

369
00:17:33,214 --> 00:17:35,654
two jobs-- it's
difficult for her

370
00:17:35,654 --> 00:17:38,642
to maintain family life
and [INAUDIBLE] work.

371
00:17:38,642 --> 00:17:39,350
TOM KOCHAN: Yeah.

372
00:17:39,350 --> 00:17:43,190
So here's someone
who has a family, set

373
00:17:43,190 --> 00:17:46,010
of responsibilities,
holding down two jobs,

374
00:17:46,010 --> 00:17:49,790
just trying to
survive and get ahead,

375
00:17:49,790 --> 00:17:55,160
another immigrant story that
is very common for people

376
00:17:55,160 --> 00:17:56,480
who are trying to make it here.

377
00:17:56,480 --> 00:17:58,913
Anyone else want to offer?

378
00:17:58,913 --> 00:18:01,830
Yes.

379
00:18:01,830 --> 00:18:07,490
AUDIENCE: For me, my interviewee
is a PhD student in the UAE.

380
00:18:07,490 --> 00:18:12,950
And he has [INAUDIBLE]
for 12 years.

381
00:18:12,950 --> 00:18:17,020
And what surprised me is that,
I'll also mention to you,

382
00:18:17,020 --> 00:18:21,140
is that the labor union in
the UAE or the Arabic area,

383
00:18:21,140 --> 00:18:24,670
most of the countries,
is illegal, which

384
00:18:24,670 --> 00:18:26,410
is my first time to know that.

385
00:18:26,410 --> 00:18:29,110
And previously, I
already heard the news

386
00:18:29,110 --> 00:18:34,255
that the immigrant laborers,
like from Pakistan,

387
00:18:34,255 --> 00:18:37,220
from India, they got
very low payment,

388
00:18:37,220 --> 00:18:46,460
like it's about $200 US per
month probably, or even less.

389
00:18:46,460 --> 00:18:50,830
But before that, I had no idea
that there was no protection

390
00:18:50,830 --> 00:18:53,550
of these laborers.

391
00:18:53,550 --> 00:18:59,230
And generally,
their visa is linked

392
00:18:59,230 --> 00:19:03,600
to the employer, which means
the employer can easily

393
00:19:03,600 --> 00:19:07,464
misuse their right to
force them to work hard.

394
00:19:07,464 --> 00:19:08,130
TOM KOCHAN: Yes.

395
00:19:08,130 --> 00:19:12,410
This is a big, big issue for
immigrants in many countries,

396
00:19:12,410 --> 00:19:13,910
particularly in the Middle East.

397
00:19:13,910 --> 00:19:16,760
I've spent some time
in Saudi Arabia trying

398
00:19:16,760 --> 00:19:20,270
to work with the Minister
of Labor in Saudi Arabia

399
00:19:20,270 --> 00:19:23,150
to change those, and
it's very difficult.

400
00:19:23,150 --> 00:19:26,210
But here is a country
where worker rights

401
00:19:26,210 --> 00:19:27,470
are very much suppressed.

402
00:19:27,470 --> 00:19:29,750
And particularly
the vast majority

403
00:19:29,750 --> 00:19:31,370
of the workforce in
the private sector

404
00:19:31,370 --> 00:19:34,160
are immigrants from very
low-income countries,

405
00:19:34,160 --> 00:19:36,450
and they're tied
to their employer.

406
00:19:36,450 --> 00:19:38,510
So when we think about
the workplace today

407
00:19:38,510 --> 00:19:40,670
and we think about
our aspirations,

408
00:19:40,670 --> 00:19:43,460
we generally tend to
think about the fact

409
00:19:43,460 --> 00:19:45,170
that we have a
free labor market.

410
00:19:45,170 --> 00:19:48,350
We can move if things
are not satisfactory,

411
00:19:48,350 --> 00:19:53,060
or we can raise our voice,
individually or collectively,

412
00:19:53,060 --> 00:19:54,650
to try to change things.

413
00:19:54,650 --> 00:19:58,010
But we have to understand that
a very large number of people

414
00:19:58,010 --> 00:20:01,400
across the globe don't have
those very, very basic rights

415
00:20:01,400 --> 00:20:04,430
or what the International
Labor Organization-- remember

416
00:20:04,430 --> 00:20:07,670
Guy Ryder's introduction
to this course way back

417
00:20:07,670 --> 00:20:11,510
in the first week,
the director-general

418
00:20:11,510 --> 00:20:14,270
of the ILO in Geneva.

419
00:20:14,270 --> 00:20:17,840
A core principle,
a core human right,

420
00:20:17,840 --> 00:20:20,180
according to the International
Labor Organization,

421
00:20:20,180 --> 00:20:22,970
a part of the UN, is
freedom of association,

422
00:20:22,970 --> 00:20:25,460
along with freedom from
discrimination and from forced

423
00:20:25,460 --> 00:20:27,590
labor and child labor.

424
00:20:27,590 --> 00:20:31,040
So those are some
very, very basic things

425
00:20:31,040 --> 00:20:33,540
that we expect in
the world of work.

426
00:20:33,540 --> 00:20:37,880
But not all people and, in
fact, a very significant portion

427
00:20:37,880 --> 00:20:40,820
of the workforce
across the globe

428
00:20:40,820 --> 00:20:42,210
don't have these basic rights.

429
00:20:42,210 --> 00:20:46,550
So we have to remember this
as we think about where we are

430
00:20:46,550 --> 00:20:50,090
and how we advance from
the stage that we're at.

431
00:20:50,090 --> 00:20:51,996
[? Shahid, ?] do you have a--

432
00:20:51,996 --> 00:20:53,704
AUDIENCE: There was
a question on Twitter

433
00:20:53,704 --> 00:20:58,620
where someone asked, do you
have an example of [INAUDIBLE]

434
00:20:58,620 --> 00:21:02,480
country which is sort of
facilitating some of that,

435
00:21:02,480 --> 00:21:06,680
making sure that some of these
[INAUDIBLE] sort of things

436
00:21:06,680 --> 00:21:10,369
are not imposed on the
people, on the workers?

437
00:21:10,369 --> 00:21:12,160
Do you have some good
examples [INAUDIBLE]?

438
00:21:12,160 --> 00:21:14,000
TOM KOCHAN: Well,
there are examples

439
00:21:14,000 --> 00:21:18,680
of countries that are struggling
with this and working on it.

440
00:21:18,680 --> 00:21:22,910
One middle-income country that
is actually quite advanced

441
00:21:22,910 --> 00:21:23,840
is Singapore.

442
00:21:23,840 --> 00:21:28,340
And Singapore has a lot
of immigrant workers,

443
00:21:28,340 --> 00:21:31,520
particularly in the
domestic service sector,

444
00:21:31,520 --> 00:21:34,670
and they've had some scandals,
some terrible experiences.

445
00:21:34,670 --> 00:21:41,300
But they have now imposed some
very strong legal constraints

446
00:21:41,300 --> 00:21:42,470
and strong enforcement.

447
00:21:42,470 --> 00:21:45,420
Because it's one
thing to have a law,

448
00:21:45,420 --> 00:21:47,570
but it's another thing
to try to enforce it.

449
00:21:47,570 --> 00:21:51,950
And so Singapore is
working to make progress

450
00:21:51,950 --> 00:21:54,120
in this direction.

451
00:21:54,120 --> 00:21:57,050
But I have to say,
in the Middle East

452
00:21:57,050 --> 00:21:59,240
some countries are
doing a better job,

453
00:21:59,240 --> 00:22:02,130
but there is a long,
long way to go.

454
00:22:02,130 --> 00:22:05,780
And that's where
perhaps the issue

455
00:22:05,780 --> 00:22:08,900
is most serious
and most profound

456
00:22:08,900 --> 00:22:12,540
because the benefits
to migrant--

457
00:22:12,540 --> 00:22:17,840
immigrant workers going
from Pakistan or Bangladesh

458
00:22:17,840 --> 00:22:20,930
to the Middle East are
quite substantial if they

459
00:22:20,930 --> 00:22:23,540
can stand the harsh
conditions of the work.

460
00:22:23,540 --> 00:22:27,050
And the employers
in the Middle East

461
00:22:27,050 --> 00:22:31,250
understand that there are real
advantages for people coming

462
00:22:31,250 --> 00:22:33,470
to take that work,
and so therefore

463
00:22:33,470 --> 00:22:36,890
that just feeds into some
of the more harsh rules.

464
00:22:36,890 --> 00:22:38,900
I think we will see change.

465
00:22:38,900 --> 00:22:41,390
Those of you who have been
reading the world news

466
00:22:41,390 --> 00:22:43,460
have just heard
that Saudi Arabia

467
00:22:43,460 --> 00:22:47,120
is trying to move away from some
of its dependence on the oil

468
00:22:47,120 --> 00:22:48,200
industry.

469
00:22:48,200 --> 00:22:52,510
Saudi Arabia has also
tried to introduce, slowly,

470
00:22:52,510 --> 00:22:55,940
with the leadership of
their Minister of Labor

471
00:22:55,940 --> 00:22:59,030
a number of years ago,
more rights for women,

472
00:22:59,030 --> 00:23:02,540
because women don't have
many rights to drive a car

473
00:23:02,540 --> 00:23:06,710
or to work in settings
where men are present.

474
00:23:06,710 --> 00:23:08,400
That is slowly changing.

475
00:23:08,400 --> 00:23:10,040
That's going to
take a long time.

476
00:23:10,040 --> 00:23:14,120
But here, again, is an
example of a society that

477
00:23:14,120 --> 00:23:18,500
has a set of values,
historical values, that

478
00:23:18,500 --> 00:23:22,370
are very important to their
identity and their religion.

479
00:23:22,370 --> 00:23:26,790
But as outsiders, we may have
some questions about them.

480
00:23:26,790 --> 00:23:29,120
We have to understand
these countries

481
00:23:29,120 --> 00:23:31,400
in their own cultural context.

482
00:23:31,400 --> 00:23:37,355
But I do believe there are some
very basic core rights of work

483
00:23:37,355 --> 00:23:42,620
that have to be respected
regardless of where people

484
00:23:42,620 --> 00:23:45,350
work, how they work, who
they are, and who they work.

485
00:23:45,350 --> 00:23:47,670
So I think this is a campaign.

486
00:23:47,670 --> 00:23:49,670
It's something that we
can continue to work for.

487
00:23:49,670 --> 00:23:53,400
So thank you for that question,
whoever posted it on Twitter.

488
00:23:53,400 --> 00:23:53,900
OK.

489
00:23:53,900 --> 00:23:54,590
Let's move on.

490
00:23:54,590 --> 00:23:56,390
This is a good start.

491
00:23:56,390 --> 00:23:59,150
We have an understanding,
a deeper understanding,

492
00:23:59,150 --> 00:24:02,210
of what we are looking
from work and now a really

493
00:24:02,210 --> 00:24:04,490
good discussion of what
people around the world

494
00:24:04,490 --> 00:24:09,110
are experiencing as they try
to improve their situation.

495
00:24:09,110 --> 00:24:11,870
We paid special attention
to history in this class.

496
00:24:11,870 --> 00:24:14,960
And I want to thank one of
the participants in the class

497
00:24:14,960 --> 00:24:18,650
for posting this great quote
from Thomas Jefferson, one

498
00:24:18,650 --> 00:24:21,260
of our most famous presidents,
the third president

499
00:24:21,260 --> 00:24:25,040
of the United States
and one of the authors

500
00:24:25,040 --> 00:24:27,290
of the Declaration of
Independence for the United

501
00:24:27,290 --> 00:24:28,010
States.

502
00:24:28,010 --> 00:24:33,230
So Jefferson said that, "History
by appraising them of the past

503
00:24:33,230 --> 00:24:36,500
will enable them"--
that is all of us--

504
00:24:36,500 --> 00:24:41,560
--"to be a judge of the future;
it will avail us to learn from

505
00:24:41,560 --> 00:24:44,740
the experience of other
times and other nations;

506
00:24:44,740 --> 00:24:49,120
it will qualify us as judges
of the actions and designs

507
00:24:49,120 --> 00:24:53,650
of men"-- that's a very
time-honored or an unhonorable

508
00:24:53,650 --> 00:24:56,530
use of the word "men" but
that's the way he wrote--

509
00:24:56,530 --> 00:25:00,290
and "it will enable us to
know the ambitions of others

510
00:25:00,290 --> 00:25:05,560
even under every disguise it
may not assume; and knowing it,

511
00:25:05,560 --> 00:25:07,210
to defeat its views."

512
00:25:07,210 --> 00:25:09,610
Thomas Jefferson was
a student of history.

513
00:25:09,610 --> 00:25:11,860
Thomas Jefferson
respected history.

514
00:25:11,860 --> 00:25:13,660
We respect history
in this class.

515
00:25:13,660 --> 00:25:17,680
Not to repeat it, not to try to
go back to the way things were,

516
00:25:17,680 --> 00:25:19,690
but to learn from it
so that we can lay

517
00:25:19,690 --> 00:25:22,220
a foundation for the future.

518
00:25:22,220 --> 00:25:24,940
So we spent time here
in the United States

519
00:25:24,940 --> 00:25:27,760
talking about this
foundation that

520
00:25:27,760 --> 00:25:30,760
was laid in the 1930s
called the New Deal.

521
00:25:30,760 --> 00:25:33,700
And we even celebrated
some of the people

522
00:25:33,700 --> 00:25:35,530
who helped to bring about it--

523
00:25:35,530 --> 00:25:37,540
a professor from the
University of Wisconsin

524
00:25:37,540 --> 00:25:40,420
whose ideas led to
unemployment insurance

525
00:25:40,420 --> 00:25:42,550
and led to Social
Security and led

526
00:25:42,550 --> 00:25:46,240
to the passage of child
labor and minimum wage

527
00:25:46,240 --> 00:25:49,690
legislation in that state
and in other states before we

528
00:25:49,690 --> 00:25:51,330
got national legislation.

529
00:25:51,330 --> 00:25:53,590
And to Frances Perkins,
the first woman

530
00:25:53,590 --> 00:25:56,470
who was a member of a
president's cabinet.

531
00:25:56,470 --> 00:25:59,590
President Roosevelt asked her
to be the Secretary of State.

532
00:25:59,590 --> 00:26:03,237
And Frances Perkins said to the
president when he asked her,

533
00:26:03,237 --> 00:26:04,570
are you sure you really want me?

534
00:26:04,570 --> 00:26:07,240
Because if you are going
to put me in that office,

535
00:26:07,240 --> 00:26:11,170
I'm going to bring my experience
to bring about Social Security,

536
00:26:11,170 --> 00:26:14,380
some minimum wage, some
basic rights of unemployment

537
00:26:14,380 --> 00:26:18,430
insurance to bear
at a national level.

538
00:26:18,430 --> 00:26:21,220
Frances Perkins
observed firsthand

539
00:26:21,220 --> 00:26:25,480
the terror of a factory fire
called the Triangle Shirtwaist

540
00:26:25,480 --> 00:26:29,410
fire in New York City in the
earlier part of the century,

541
00:26:29,410 --> 00:26:33,160
where over 100 women died
because the fire escapes were

542
00:26:33,160 --> 00:26:37,090
locked as the fire burned
in that particular factory.

543
00:26:37,090 --> 00:26:40,690
And that imprinted
her commitment

544
00:26:40,690 --> 00:26:44,020
to make a better place for
work, a more safe place to work.

545
00:26:44,020 --> 00:26:46,960
And as a result of
leadership and ideas

546
00:26:46,960 --> 00:26:51,040
and commitment and a change
in politics in the 1930s,

547
00:26:51,040 --> 00:26:54,820
we got the foundation
of the Social Security,

548
00:26:54,820 --> 00:26:58,900
the Retirement Security Act
basically, the unemployment

549
00:26:58,900 --> 00:27:02,365
insurance for the first time,
the ability to join a union

550
00:27:02,365 --> 00:27:04,450
and engage in collective
bargaining protected

551
00:27:04,450 --> 00:27:07,930
for the first time, and a
minimum wage and overtime

552
00:27:07,930 --> 00:27:09,490
rules for the first time.

553
00:27:09,490 --> 00:27:12,370
That foundation in
the United States

554
00:27:12,370 --> 00:27:15,430
and comparable legislation
in other countries,

555
00:27:15,430 --> 00:27:19,450
many in Europe before us,
some in Asia after us,

556
00:27:19,450 --> 00:27:21,790
some still struggling
to put these kinds

557
00:27:21,790 --> 00:27:26,350
of basic foundations and floors
on their conditions of work.

558
00:27:26,350 --> 00:27:29,890
But it was that foundation
that allowed us to then build

559
00:27:29,890 --> 00:27:35,140
what we talked about in several
sessions as the social contract

560
00:27:35,140 --> 00:27:38,540
here in the United States
and in other places.

561
00:27:38,540 --> 00:27:43,960
And so the question then
is, can we build on this?

562
00:27:43,960 --> 00:27:46,540
Yes, this worked for
many years, and we'll

563
00:27:46,540 --> 00:27:49,630
look at that in just a moment
just to refresh our minds.

564
00:27:49,630 --> 00:27:52,900
But can we build
a new foundation?

565
00:27:52,900 --> 00:27:57,220
If today's world has changed
as dramatically as we

566
00:27:57,220 --> 00:27:59,920
have discussed it
throughout this course,

567
00:27:59,920 --> 00:28:04,990
then it behooves us to ask,
what's the new foundation?

568
00:28:04,990 --> 00:28:07,150
What's the new
body of legislation

569
00:28:07,150 --> 00:28:09,520
that would lay the
framework for us

570
00:28:09,520 --> 00:28:11,800
to advance and to deal with
some of the issues we're

571
00:28:11,800 --> 00:28:16,240
going to talk about here
in just a few minutes?

572
00:28:16,240 --> 00:28:18,980
So let's-- [? Adelie, ?] did
you have a question or comment?

573
00:28:18,980 --> 00:28:19,563
AUDIENCE: Yes.

574
00:28:19,563 --> 00:28:24,706
Just a comment that,
like, [INAUDIBLE]

575
00:28:24,706 --> 00:28:26,658
specifically said
that, in this country,

576
00:28:26,658 --> 00:28:33,002
any business who is
depending on its existence

577
00:28:33,002 --> 00:28:34,954
by paying less than
the living wage

578
00:28:34,954 --> 00:28:37,394
should not have the
right to be in the US.

579
00:28:37,394 --> 00:28:39,884
And he said that,
by the living wage,

580
00:28:39,884 --> 00:28:43,393
I don't mean just
above existence,

581
00:28:43,393 --> 00:28:45,858
like just [INAUDIBLE].

582
00:28:45,858 --> 00:28:48,486
But I mean that it should
be a living [INAUDIBLE]

583
00:28:48,486 --> 00:28:49,766
the decent wage.

584
00:28:49,766 --> 00:28:51,558
So I mean, perhaps
in this course,

585
00:28:51,558 --> 00:28:53,380
that's what we are
trying to stress,

586
00:28:53,380 --> 00:28:56,372
that there should be a decent
living for the workers also.

587
00:28:56,372 --> 00:28:57,080
TOM KOCHAN: Yeah.

588
00:28:57,080 --> 00:28:58,966
No, absolutely.

589
00:28:58,966 --> 00:29:01,510
He was a strong advocate
for worker rights,

590
00:29:01,510 --> 00:29:06,400
for urging business to
provide a living wage

591
00:29:06,400 --> 00:29:10,210
to get us out of the Great
Depression of the 1930s.

592
00:29:10,210 --> 00:29:14,200
And it was that kind of
strong national leadership

593
00:29:14,200 --> 00:29:17,420
that helped to
make this possible.

594
00:29:17,420 --> 00:29:19,420
So let's look at what happened.

595
00:29:19,420 --> 00:29:21,630
We've talked about
the social contract.

596
00:29:21,630 --> 00:29:25,240
And if you look at this chart,
which we used at several points

597
00:29:25,240 --> 00:29:28,450
in the course, it
shows, as you've

598
00:29:28,450 --> 00:29:32,050
seen before, that from
the end of World War II up

599
00:29:32,050 --> 00:29:35,680
through the 1970s
till about 1980,

600
00:29:35,680 --> 00:29:38,800
wages and productivity
moved together in tandem.

601
00:29:38,800 --> 00:29:41,640
That is, as the
economy got stronger,

602
00:29:41,640 --> 00:29:44,380
the institutions of
collective bargaining,

603
00:29:44,380 --> 00:29:47,920
the leadership of personnel
management and human resource

604
00:29:47,920 --> 00:29:51,310
managers in our
large corporations,

605
00:29:51,310 --> 00:29:57,610
made sure that wages were moving
up in tandem with productivity.

606
00:29:57,610 --> 00:30:00,760
So workers shared, by and
large, in the benefits

607
00:30:00,760 --> 00:30:03,520
of the economic growth.

608
00:30:03,520 --> 00:30:06,220
But something happened,
as we all know,

609
00:30:06,220 --> 00:30:09,490
in the late '70s
and the early 1980s

610
00:30:09,490 --> 00:30:10,780
to break this relationship.

611
00:30:10,780 --> 00:30:14,380
And that's when you see wages
flatlining and productivity

612
00:30:14,380 --> 00:30:15,790
continuing to grow.

613
00:30:15,790 --> 00:30:19,750
And that, my friends,
I think explains

614
00:30:19,750 --> 00:30:22,600
a lot of the frustrations
that we are seeing here

615
00:30:22,600 --> 00:30:26,620
in the United States play out
in our political debates today.

616
00:30:26,620 --> 00:30:30,100
That workers today are
saying, we have not shared

617
00:30:30,100 --> 00:30:32,860
or we have been
displaced, and our income,

618
00:30:32,860 --> 00:30:36,400
which came from good jobs,
maybe manufacturing jobs

619
00:30:36,400 --> 00:30:39,970
which have gone offshore or
been outsourced domestically,

620
00:30:39,970 --> 00:30:44,080
or whatever happened to
them, changed by technology,

621
00:30:44,080 --> 00:30:47,000
have not benefited from
a lot of these changes.

622
00:30:47,000 --> 00:30:49,390
And so we are now
reaping the costs

623
00:30:49,390 --> 00:30:54,010
of not addressing these
changes in the economy

624
00:30:54,010 --> 00:30:57,610
so that people could keep
up with this process.

625
00:30:57,610 --> 00:30:59,740
And so one of the things
that we did in the course

626
00:30:59,740 --> 00:31:02,980
is we asked all of you, what
do you think about this?

627
00:31:02,980 --> 00:31:05,080
Do you believe wages
and productivity

628
00:31:05,080 --> 00:31:06,220
should go together?

629
00:31:06,220 --> 00:31:09,400
And the vast majority,
over 80% of you, said yes.

630
00:31:09,400 --> 00:31:10,930
But you're worried about it.

631
00:31:10,930 --> 00:31:11,905
You're also realistic.

632
00:31:11,905 --> 00:31:13,720
You know that the
world has changed.

633
00:31:13,720 --> 00:31:16,480
You know that globalization
is more dominant now.

634
00:31:16,480 --> 00:31:18,790
You know that technology
has eliminated

635
00:31:18,790 --> 00:31:22,090
a lot of routine
jobs, as we covered

636
00:31:22,090 --> 00:31:24,880
in later sections of the
class, and you've seen it

637
00:31:24,880 --> 00:31:26,420
in your own communities.

638
00:31:26,420 --> 00:31:32,080
We know that we're creating new
forms of work that don't always

639
00:31:32,080 --> 00:31:35,650
provide some of the same
supports and benefits.

640
00:31:35,650 --> 00:31:40,360
And so while you know that you
would like to see this happen--

641
00:31:40,360 --> 00:31:44,980
and these comments come, again,
off the discussion board--

642
00:31:44,980 --> 00:31:48,767
you're all worried about
how can we make this happen.

643
00:31:48,767 --> 00:31:50,350
And I think the one
on the left really

644
00:31:50,350 --> 00:31:54,260
captures the
sentiment of the class

645
00:31:54,260 --> 00:31:58,000
as well as any that I saw
on the discussion board.

646
00:31:58,000 --> 00:32:01,570
And it says, "I think
it's important to maintain

647
00:32:01,570 --> 00:32:04,840
the productivity increases
aligned with raising wages.

648
00:32:04,840 --> 00:32:07,780
If we, as a society,
continue to show only

649
00:32:07,780 --> 00:32:10,900
huge social and
economic inequalities,

650
00:32:10,900 --> 00:32:13,810
and that the rich get richer
and the poor get poorer,

651
00:32:13,810 --> 00:32:18,280
then we will not be able to have
a successful and sustainable

652
00:32:18,280 --> 00:32:19,510
society."

653
00:32:19,510 --> 00:32:21,810
That's a powerful statement.

654
00:32:21,810 --> 00:32:25,560
And if people really
feel that way, then

655
00:32:25,560 --> 00:32:29,490
eventually they are going
to act to change this.

656
00:32:29,490 --> 00:32:33,900
And it's our job to turn some
of this anger and frustration

657
00:32:33,900 --> 00:32:36,900
into positive
actions for dealing

658
00:32:36,900 --> 00:32:40,590
with this gap between
economic progress

659
00:32:40,590 --> 00:32:45,340
for some but a lot of
people left behind.

660
00:32:45,340 --> 00:32:46,460
So how do we do it?

661
00:32:46,460 --> 00:32:49,050
We have to go beyond just
hoping that it changes

662
00:32:49,050 --> 00:32:50,950
or wishing that it
changes or worrying

663
00:32:50,950 --> 00:32:52,880
that we can't change it.

664
00:32:52,880 --> 00:32:54,520
And we have to start
to address some

665
00:32:54,520 --> 00:32:58,750
of the core causes
of the change.

666
00:32:58,750 --> 00:33:02,260
And we spent some time talking
about, is this inevitable?

667
00:33:02,260 --> 00:33:04,180
And we started with
the corporation.

668
00:33:04,180 --> 00:33:06,420
What is the corporation for?

669
00:33:06,420 --> 00:33:09,130
Is the corporation
simply an instrument

670
00:33:09,130 --> 00:33:11,800
to maximize shareholder value?

671
00:33:11,800 --> 00:33:13,540
Is the corporation
expected to be

672
00:33:13,540 --> 00:33:18,250
held accountable for additional
interests in society,

673
00:33:18,250 --> 00:33:20,530
for employees, for
their communities?

674
00:33:20,530 --> 00:33:25,000
Well, we heard from one of
the most respected former CEOs

675
00:33:25,000 --> 00:33:27,190
and business leaders
in the United States,

676
00:33:27,190 --> 00:33:29,800
in fact, globally, of
the last generation--

677
00:33:29,800 --> 00:33:34,660
John Reed, president
and CEO of Citicorp,

678
00:33:34,660 --> 00:33:37,810
then went on to be president
of the New York Stock Exchange.

679
00:33:37,810 --> 00:33:40,310
And that interview that
I did with John, which

680
00:33:40,310 --> 00:33:42,640
I did a year ago, I
think that interview

681
00:33:42,640 --> 00:33:45,880
has been replayed by more
business schools than anything

682
00:33:45,880 --> 00:33:47,380
else from this course.

683
00:33:47,380 --> 00:33:50,620
Because here's someone
who is so highly

684
00:33:50,620 --> 00:33:53,920
respected and has lived
through the transition.

685
00:33:53,920 --> 00:33:59,140
And John Reed's view reflected
the views of most people

686
00:33:59,140 --> 00:34:01,090
in the online course.

687
00:34:01,090 --> 00:34:05,450
And he basically said,
look, a corporation, yes,

688
00:34:05,450 --> 00:34:08,860
has to achieve profits
and shareholder value.

689
00:34:08,860 --> 00:34:10,480
That's beyond question.

690
00:34:10,480 --> 00:34:12,699
But we also have to worry
about the customers.

691
00:34:12,699 --> 00:34:14,800
We have to worry
about the employees.

692
00:34:14,800 --> 00:34:17,500
And if we don't do that,
then, in the long run,

693
00:34:17,500 --> 00:34:19,780
organizations are going
to face such a backlash.

694
00:34:19,780 --> 00:34:22,420
And we're not going to prepare
the labor force for the future,

695
00:34:22,420 --> 00:34:25,330
because corporations are
also training engines.

696
00:34:25,330 --> 00:34:28,239
And he's very worried about
the workforce and the training.

697
00:34:28,239 --> 00:34:30,699
That's why he was so
active in education,

698
00:34:30,699 --> 00:34:34,420
both here at MIT as an
officer of our corporation

699
00:34:34,420 --> 00:34:38,980
but also I know in
his private work

700
00:34:38,980 --> 00:34:41,400
around the country and
indeed around the globe,

701
00:34:41,400 --> 00:34:44,260
and trying to
advance particularly

702
00:34:44,260 --> 00:34:47,710
technical education,
advance science, technology,

703
00:34:47,710 --> 00:34:50,679
engineering, and math
education in our universities

704
00:34:50,679 --> 00:34:52,150
and in our high schools.

705
00:34:52,150 --> 00:34:55,780
So here is the challenge.

706
00:34:55,780 --> 00:34:58,780
If we recognize--
and most of you said,

707
00:34:58,780 --> 00:35:02,140
we expect corporations
to behave in ways

708
00:35:02,140 --> 00:35:06,340
that respond to shareholders
and other stakeholders.

709
00:35:06,340 --> 00:35:07,240
What do we do?

710
00:35:07,240 --> 00:35:09,570
That's nice rhetoric.

711
00:35:09,570 --> 00:35:11,950
But if all we do is
complain about it

712
00:35:11,950 --> 00:35:15,370
or go out on the streets and
hold up a sign or a picket

713
00:35:15,370 --> 00:35:18,580
sign, I suppose
that's a statement,

714
00:35:18,580 --> 00:35:20,570
but that's not going
to get the job done.

715
00:35:20,570 --> 00:35:23,950
So we spent a lot of time
talking about what to do,

716
00:35:23,950 --> 00:35:25,720
and we used lots of examples.

717
00:35:25,720 --> 00:35:28,390
And here's just a
few, and you all

718
00:35:28,390 --> 00:35:31,840
heard about these
throughout the course,

719
00:35:31,840 --> 00:35:35,080
as Costco compared to Walmart.

720
00:35:35,080 --> 00:35:40,060
Costco, a retailer that does
invest in its employees, that

721
00:35:40,060 --> 00:35:43,120
does go the high
road, as we call it,

722
00:35:43,120 --> 00:35:45,550
that says we're going to
invest in our employees.

723
00:35:45,550 --> 00:35:48,010
We're going to make
them more productive

724
00:35:48,010 --> 00:35:49,420
than our competitors.

725
00:35:49,420 --> 00:35:50,980
And by making them
more productive,

726
00:35:50,980 --> 00:35:53,350
we can afford to pay
them a higher wage.

727
00:35:53,350 --> 00:35:54,449
This is not charity.

728
00:35:54,449 --> 00:35:56,240
This is the way we're
going to do business.

729
00:35:56,240 --> 00:35:58,840
This is the way we're going
to meet our customer needs.

730
00:35:58,840 --> 00:36:03,220
And it's been very successful
in doing so financially.

731
00:36:03,220 --> 00:36:06,640
And it provides a high
level of customer service,

732
00:36:06,640 --> 00:36:11,230
and it has a loyal customer base
and also provides good jobs.

733
00:36:11,230 --> 00:36:13,390
And we compared
that with Walmart.

734
00:36:13,390 --> 00:36:17,320
Walmart is worldwide, one of
the largest private employers

735
00:36:17,320 --> 00:36:21,040
in the world perhaps,
certainly here in North America

736
00:36:21,040 --> 00:36:24,940
it is and in many of the
countries represented

737
00:36:24,940 --> 00:36:26,230
in this course.

738
00:36:26,230 --> 00:36:29,080
And Walmart does a lot
of very good things

739
00:36:29,080 --> 00:36:30,190
for the environment.

740
00:36:30,190 --> 00:36:32,410
Walmart was one of
the first corporations

741
00:36:32,410 --> 00:36:36,100
to respond when we had
this terrible Hurricane

742
00:36:36,100 --> 00:36:39,100
Katrina in New Orleans in 2005.

743
00:36:39,100 --> 00:36:42,220
And it sent, before
anybody asked it to do it,

744
00:36:42,220 --> 00:36:45,340
trucks of water and
support and food

745
00:36:45,340 --> 00:36:47,920
to help the victims
of that hurricane.

746
00:36:47,920 --> 00:36:50,260
So Walmart does a
lot of good things.

747
00:36:50,260 --> 00:36:53,830
But Walmart also competes on
the basis of just low prices

748
00:36:53,830 --> 00:36:57,370
and low wages and keeping
unions out and in controlling

749
00:36:57,370 --> 00:37:00,550
the workforce in
ways that creates

750
00:37:00,550 --> 00:37:04,420
high levels of turnover, not
such good customer satisfaction

751
00:37:04,420 --> 00:37:06,670
and service, but low prices.

752
00:37:06,670 --> 00:37:09,220
And so here we have
the two comparisons

753
00:37:09,220 --> 00:37:12,280
that allow us to say,
which one do we prefer?

754
00:37:12,280 --> 00:37:16,560
Could Walmart improve
its organization

755
00:37:16,560 --> 00:37:19,900
and its performance on the
employment side the same way

756
00:37:19,900 --> 00:37:22,960
it has demonstrated it can
do on the environmental side

757
00:37:22,960 --> 00:37:24,610
or on the operations
side, where it

758
00:37:24,610 --> 00:37:28,000
is as good as any
company in the world?

759
00:37:28,000 --> 00:37:32,470
If it did, perhaps we could have
a high road retail industry.

760
00:37:32,470 --> 00:37:36,160
But it holds everybody else
down in the retail industry.

761
00:37:36,160 --> 00:37:38,680
We used another example
in retail, a local one

762
00:37:38,680 --> 00:37:42,850
here in the Boston and
New England region, one

763
00:37:42,850 --> 00:37:47,170
that our colleague Zeynep
Ton did a very good video on,

764
00:37:47,170 --> 00:37:48,550
called Market Basket.

765
00:37:48,550 --> 00:37:51,190
And this has now
become kind of an icon

766
00:37:51,190 --> 00:37:54,250
for a high road
retail firm, a firm

767
00:37:54,250 --> 00:37:58,000
where the employees, the
high-level executives,

768
00:37:58,000 --> 00:38:00,790
the store managers, the
clerks, the truck drivers,

769
00:38:00,790 --> 00:38:03,680
the warehouse workers did
an unprecedented thing,

770
00:38:03,680 --> 00:38:05,920
something I've never seen
in all the years I've

771
00:38:05,920 --> 00:38:07,330
been working in this field.

772
00:38:07,330 --> 00:38:10,820
I never saw a coalition like
that come together to say,

773
00:38:10,820 --> 00:38:12,940
we are going to stand
up for a high road

774
00:38:12,940 --> 00:38:16,870
company and a high road CEO who
was being fired by the board

775
00:38:16,870 --> 00:38:19,150
so that they can
extract more money

776
00:38:19,150 --> 00:38:21,470
for the owners of the company.

777
00:38:21,470 --> 00:38:26,500
And for six weeks, they
rallied the employees.

778
00:38:26,500 --> 00:38:29,770
They basically stopped the
business from functioning.

779
00:38:29,770 --> 00:38:31,750
They had the loyal support
of their customers,

780
00:38:31,750 --> 00:38:34,755
because their customers knew
what was at stake for them.

781
00:38:34,755 --> 00:38:36,130
Because here's a
company that has

782
00:38:36,130 --> 00:38:37,960
very low prices
but great customer

783
00:38:37,960 --> 00:38:41,920
service, great community
involvement in stores

784
00:38:41,920 --> 00:38:45,560
all over New England,
family relationships,

785
00:38:45,560 --> 00:38:47,620
that people know each
other when they shop

786
00:38:47,620 --> 00:38:49,300
and they know the employees.

787
00:38:49,300 --> 00:38:52,570
The employees wear their
tenure in a little badge

788
00:38:52,570 --> 00:38:54,940
on their shirt.

789
00:38:54,940 --> 00:38:57,430
And this was all
going to go away.

790
00:38:57,430 --> 00:38:59,020
And you saw how
the community, how

791
00:38:59,020 --> 00:39:01,420
the media, how the
employees came together

792
00:39:01,420 --> 00:39:04,780
to fight for good jobs
and a good company.

793
00:39:04,780 --> 00:39:06,970
And in the end, the
board of directors

794
00:39:06,970 --> 00:39:10,180
relented, and they
reinstated the CEO.

795
00:39:10,180 --> 00:39:13,660
And that company now is not
only successful financially,

796
00:39:13,660 --> 00:39:15,275
it's expanded.

797
00:39:15,275 --> 00:39:19,100
The prices have remained low
relative to their competitors.

798
00:39:19,100 --> 00:39:23,030
And in fact, if you want to go
and see a movie this weekend,

799
00:39:23,030 --> 00:39:25,600
they're going to premier
a documentary here

800
00:39:25,600 --> 00:39:27,460
in a local theater
in Somerville, which

801
00:39:27,460 --> 00:39:32,020
is just near us here
off the MIT campus.

802
00:39:32,020 --> 00:39:34,150
It's called Food
Fight, but it basically

803
00:39:34,150 --> 00:39:36,000
tells the story
of the people who

804
00:39:36,000 --> 00:39:37,660
were involved in that dispute.

805
00:39:37,660 --> 00:39:41,410
It's a very powerful,
powerful movie.

806
00:39:41,410 --> 00:39:42,264
I've seen it.

807
00:39:42,264 --> 00:39:43,930
I don't get any
royalties on it, so this

808
00:39:43,930 --> 00:39:45,610
isn't a commercial for it.

809
00:39:45,610 --> 00:39:47,860
But it really is
the best documentary

810
00:39:47,860 --> 00:39:49,810
of people who have
put their lives

811
00:39:49,810 --> 00:39:51,820
and their jobs on the
line for something

812
00:39:51,820 --> 00:39:55,792
they really believed
in, and it worked out

813
00:39:55,792 --> 00:39:57,982
in a good way for them.

814
00:39:57,982 --> 00:39:59,190
But there are other examples.

815
00:39:59,190 --> 00:40:02,320
Southwest Airlines we've
used, Kaiser Permanente,

816
00:40:02,320 --> 00:40:03,370
highly unionized.

817
00:40:03,370 --> 00:40:05,350
Southwest is highly unionized.

818
00:40:05,350 --> 00:40:08,170
Labor management partnerships,
where they are working together

819
00:40:08,170 --> 00:40:09,700
to improve health care.

820
00:40:09,700 --> 00:40:12,940
We know that the
bundle of practices

821
00:40:12,940 --> 00:40:15,330
that are necessary
to make this work

822
00:40:15,330 --> 00:40:18,730
move from good
operations strategy--

823
00:40:18,730 --> 00:40:21,130
that is, you really need
to manage your inventory.

824
00:40:21,130 --> 00:40:22,870
You need to manage
your operations.

825
00:40:22,870 --> 00:40:26,900
You have to have good
efficient practices

826
00:40:26,900 --> 00:40:30,470
if you're a manufacturer or
if you're a service provider.

827
00:40:30,470 --> 00:40:34,700
And that has to be matched with
effective use of technologies,

828
00:40:34,700 --> 00:40:36,650
but also training
of the workforce,

829
00:40:36,650 --> 00:40:39,140
of respecting the
workforce, for asking

830
00:40:39,140 --> 00:40:42,050
the workforce for their
engagement and their ideas

831
00:40:42,050 --> 00:40:46,785
on how to improve operations
over time, for including

832
00:40:46,785 --> 00:40:51,200
the concerns for work and family
and finding that balance that

833
00:40:51,200 --> 00:40:54,540
makes the most sense for the
nature of the organization.

834
00:40:54,540 --> 00:40:57,140
It means that you have to
have a business strategy that

835
00:40:57,140 --> 00:40:59,900
supports innovation and
good customer service

836
00:40:59,900 --> 00:41:02,870
and values those
kinds of features

837
00:41:02,870 --> 00:41:04,970
as a way of doing business.

838
00:41:04,970 --> 00:41:08,210
The way Southwest does
it, they turn those planes

839
00:41:08,210 --> 00:41:10,460
around more quickly
than anyone else

840
00:41:10,460 --> 00:41:12,500
when a plane lands,
from the time

841
00:41:12,500 --> 00:41:15,320
it lands to the time it takes
off, because people are working

842
00:41:15,320 --> 00:41:18,140
together in teams in
very flexible ways

843
00:41:18,140 --> 00:41:20,000
and solving problems
for each other

844
00:41:20,000 --> 00:41:21,830
and meeting customers' needs.

845
00:41:21,830 --> 00:41:23,720
And so that's the
way in which we

846
00:41:23,720 --> 00:41:27,560
know one can build a company
that works financially

847
00:41:27,560 --> 00:41:31,340
for the share owners
and the investors

848
00:41:31,340 --> 00:41:35,000
and also works for customers
and can work for employees.

849
00:41:35,000 --> 00:41:37,130
But it takes a lot of hard work.

850
00:41:37,130 --> 00:41:39,440
And so one of the
questions we always have

851
00:41:39,440 --> 00:41:41,900
is, well, why is it--

852
00:41:41,900 --> 00:41:45,140
why is it that it's
so hard to see that?

853
00:41:45,140 --> 00:41:47,520
And is the privates--

854
00:41:47,520 --> 00:41:51,290
or the public corporation
the only way to do it?

855
00:41:51,290 --> 00:41:53,390
Some companies,
some organizations,

856
00:41:53,390 --> 00:41:56,060
are turning to different
organizational forms

857
00:41:56,060 --> 00:41:57,450
to make this happen.

858
00:41:57,450 --> 00:41:59,030
And this is just
a sampling, and we

859
00:41:59,030 --> 00:42:02,450
talked about these throughout
the class at various points

860
00:42:02,450 --> 00:42:03,390
as well.

861
00:42:03,390 --> 00:42:07,430
Many of you know about
Patagonia, this clothing maker.

862
00:42:07,430 --> 00:42:09,160
And in fact, Patagonia--

863
00:42:09,160 --> 00:42:11,540
I'll tell you a story
that's going on right now

864
00:42:11,540 --> 00:42:16,820
here in one of our
communities northwest of here

865
00:42:16,820 --> 00:42:21,500
called Lawrence, Massachusetts,
an old textile industry

866
00:42:21,500 --> 00:42:27,470
town that is very highly
populated by immigrants now,

867
00:42:27,470 --> 00:42:33,350
Latinos largely and people
from various parts of Latin

868
00:42:33,350 --> 00:42:34,820
and South America.

869
00:42:34,820 --> 00:42:38,120
And there was a plant there
that was privately owned.

870
00:42:38,120 --> 00:42:39,680
It was called Malden Mills.

871
00:42:39,680 --> 00:42:43,820
And in the 1990s-- and
it was owned by a fellow

872
00:42:43,820 --> 00:42:46,460
by the name of Aaron
Feuerstein, who

873
00:42:46,460 --> 00:42:49,040
had a very good relationship
with the workers,

874
00:42:49,040 --> 00:42:51,620
with the community, with
the union in that plant,

875
00:42:51,620 --> 00:42:53,127
providing decent jobs.

876
00:42:53,127 --> 00:42:54,335
And they had a terrible fire.

877
00:42:54,335 --> 00:42:58,700
And I think it was 1995 or
1997, the plant burned down.

878
00:42:58,700 --> 00:43:01,070
And Aaron Feuerstein said,
we're going to rebuild it.

879
00:43:01,070 --> 00:43:02,750
And by God, while
we're rebuilding it,

880
00:43:02,750 --> 00:43:05,960
I'm going to make sure that
the employees still get paid.

881
00:43:05,960 --> 00:43:08,060
And this made national news.

882
00:43:08,060 --> 00:43:10,190
And he did it not
for the publicity.

883
00:43:10,190 --> 00:43:12,974
He did it because he wanted
to hold onto that workforce.

884
00:43:12,974 --> 00:43:14,390
And he was committed
to it, and he

885
00:43:14,390 --> 00:43:17,510
knew that that
workforce had made

886
00:43:17,510 --> 00:43:19,320
his family very prosperous.

887
00:43:19,320 --> 00:43:22,710
And they rebuilt the
plant, made it more modern,

888
00:43:22,710 --> 00:43:24,770
has succeeded over time.

889
00:43:24,770 --> 00:43:28,190
When Feuerstein retired, it then
got bought by a private equity

890
00:43:28,190 --> 00:43:29,150
firm.

891
00:43:29,150 --> 00:43:31,190
That private equity
firm now wants

892
00:43:31,190 --> 00:43:34,790
to close it down and move it
to another part of the country

893
00:43:34,790 --> 00:43:37,400
or move it offshore.

894
00:43:37,400 --> 00:43:41,150
And so the employees
and their union

895
00:43:41,150 --> 00:43:44,030
have turned to Patagonia,
because they make Polartec,

896
00:43:44,030 --> 00:43:47,560
and Patagonia is a big
purchaser of Polartec,

897
00:43:47,560 --> 00:43:50,960
and said to Patagonia, why
don't you buy this plant?

898
00:43:50,960 --> 00:43:53,000
Why don't you buy
this business and keep

899
00:43:53,000 --> 00:43:55,260
us going in a viable way?

900
00:43:55,260 --> 00:43:58,550
So here's another case where
some choices about how do we

901
00:43:58,550 --> 00:44:01,520
sustain decent
quality employment

902
00:44:01,520 --> 00:44:04,400
with a very good business,
with a very good product,

903
00:44:04,400 --> 00:44:06,500
that is serving
lots of customers

904
00:44:06,500 --> 00:44:11,210
in very innovative ways
and in various kinds

905
00:44:11,210 --> 00:44:13,580
of sport clothing.

906
00:44:13,580 --> 00:44:16,940
Can we find a way to
sustain that business?

907
00:44:16,940 --> 00:44:18,680
I don't know what
the answer will be.

908
00:44:18,680 --> 00:44:21,770
But it's playing out
quietly at the moment

909
00:44:21,770 --> 00:44:26,630
about 40 miles from here,
from the MIT campus.

910
00:44:26,630 --> 00:44:27,660
We have other examples--

911
00:44:27,660 --> 00:44:28,340
Mondragon.

912
00:44:28,340 --> 00:44:33,440
It's a Spanish co-operative
that built over time

913
00:44:33,440 --> 00:44:35,780
to become a major
industrial enterprise

914
00:44:35,780 --> 00:44:37,700
in that part of the
world and, in fact,

915
00:44:37,700 --> 00:44:40,280
has operations around
the world, including

916
00:44:40,280 --> 00:44:43,670
here in the United States.

917
00:44:43,670 --> 00:44:45,680
Employee-owned companies.

918
00:44:45,680 --> 00:44:48,454
We used a couple of
different brewery examples.

919
00:44:48,454 --> 00:44:50,120
And this one happens
to be a local one--

920
00:44:50,120 --> 00:44:51,080
Harpoon.

921
00:44:51,080 --> 00:44:54,200
I put it up there because
I tend to like their beer,

922
00:44:54,200 --> 00:44:57,700
and I like the fact that
they are also employee-owned.

923
00:44:57,700 --> 00:44:59,510
But it's a fine organization.

924
00:44:59,510 --> 00:45:01,670
Again, this is not a
commercial for their beer.

925
00:45:01,670 --> 00:45:03,980
But if you ever have
the opportunity,

926
00:45:03,980 --> 00:45:06,050
I wouldn't discourage
you from trying it.

927
00:45:09,470 --> 00:45:11,120
It's well-made.

928
00:45:11,120 --> 00:45:13,800
And then my favorite example--

929
00:45:13,800 --> 00:45:15,680
people here a little
sick of hearing it--

930
00:45:15,680 --> 00:45:17,720
about my Green Bay
Packer football team.

931
00:45:17,720 --> 00:45:20,540
But here's a little town,
Green Bay, Wisconsin,

932
00:45:20,540 --> 00:45:23,570
that supports a football
team because the football

933
00:45:23,570 --> 00:45:25,210
team is owned by the community.

934
00:45:25,210 --> 00:45:27,830
There's no way that that
football team would have lasted

935
00:45:27,830 --> 00:45:31,670
from 1927, when they were
first formed, and stayed

936
00:45:31,670 --> 00:45:35,630
in Green Bay up until today
and will stay there forever,

937
00:45:35,630 --> 00:45:38,860
because the community owns
it, and it can't be sold.

938
00:45:38,860 --> 00:45:41,450
It can't be sold to
some investor who

939
00:45:41,450 --> 00:45:46,340
wants to have a hobby because
he or she's made their fortunes,

940
00:45:46,340 --> 00:45:48,660
and therefore they just
want a football team.

941
00:45:48,660 --> 00:45:51,020
This is something
that builds community

942
00:45:51,020 --> 00:45:52,910
and the loyalty to
that organization

943
00:45:52,910 --> 00:45:54,860
and to that football
team, carries on

944
00:45:54,860 --> 00:45:57,950
even for those of us who have
moved away for many years.

945
00:45:57,950 --> 00:46:00,020
So we can build
these organizations.

946
00:46:00,020 --> 00:46:02,150
We can use different kind
of governance models,

947
00:46:02,150 --> 00:46:05,930
we can use different kinds
of business strategies,

948
00:46:05,930 --> 00:46:09,860
but we have to respect
the need to respect

949
00:46:09,860 --> 00:46:13,520
the rights of employees, respect
the need to manage in a way

950
00:46:13,520 --> 00:46:17,030
that makes the organization
successful, as well

951
00:46:17,030 --> 00:46:20,870
as responsive to
employee concerns.

952
00:46:20,870 --> 00:46:24,140
And so you have strong views.

953
00:46:24,140 --> 00:46:27,020
Just as you had strong
views about the corporation,

954
00:46:27,020 --> 00:46:29,690
there was a lively
debate on the discussion

955
00:46:29,690 --> 00:46:33,770
board about these high road
firms and low road firms.

956
00:46:33,770 --> 00:46:36,920
And you recognize,
this quote recognizes,

957
00:46:36,920 --> 00:46:40,310
that some firms have a natural
affinity to being a high road

958
00:46:40,310 --> 00:46:43,100
firm, because it's consistent
with their business strategy.

959
00:46:43,100 --> 00:46:44,870
That is, they say
here that if you

960
00:46:44,870 --> 00:46:47,660
want to compete on the
basis of innovation,

961
00:46:47,660 --> 00:46:50,520
and that's part of the
core business strategy,

962
00:46:50,520 --> 00:46:52,820
then you're more likely
to be a high road firm.

963
00:46:52,820 --> 00:46:56,220
But what about firms that don't
have that business strategy?

964
00:46:56,220 --> 00:46:58,640
How are we going to
get them to do it,

965
00:46:58,640 --> 00:47:02,810
and how are we going to get more
firms to compete on this basis?

966
00:47:02,810 --> 00:47:04,700
Well, that's the big question.

967
00:47:04,700 --> 00:47:06,710
The answer that comes
here is it's only

968
00:47:06,710 --> 00:47:11,030
going to come if there's
pressure from employees.

969
00:47:11,030 --> 00:47:14,059
If employees themselves
start to raise their voices,

970
00:47:14,059 --> 00:47:14,850
and how to do this.

971
00:47:14,850 --> 00:47:18,260
So I would ask you, I would
ask the people in this room,

972
00:47:18,260 --> 00:47:20,060
if you were to move
forward and try

973
00:47:20,060 --> 00:47:24,080
to move us to see
high road firms spread

974
00:47:24,080 --> 00:47:28,190
more rapidly and more
broadly cross our industries,

975
00:47:28,190 --> 00:47:30,560
so that more people
in our economy

976
00:47:30,560 --> 00:47:33,020
could benefit from
these strategies, what

977
00:47:33,020 --> 00:47:33,961
needs to be done?

978
00:47:37,650 --> 00:47:40,770
And if you have ideas online,
put them on the discussion

979
00:47:40,770 --> 00:47:45,720
board, send us your comments
on Twitter, but this, to me,

980
00:47:45,720 --> 00:47:51,390
is the most
challenging question.

981
00:47:51,390 --> 00:47:53,610
As you think about your
answer, some of you

982
00:47:53,610 --> 00:47:57,210
recall that two weeks ago,
we were fortunate enough

983
00:47:57,210 --> 00:47:59,940
to have the Secretary
of Labor, Tom Perez,

984
00:47:59,940 --> 00:48:04,500
come and speak to our
MIT Sloan School MBAs,

985
00:48:04,500 --> 00:48:06,220
and he posed that question.

986
00:48:06,220 --> 00:48:09,510
And he challenged the
future leaders in the MBA

987
00:48:09,510 --> 00:48:12,300
and in the Sloan community
to manage in the ways

988
00:48:12,300 --> 00:48:13,890
that we're talking about here.

989
00:48:13,890 --> 00:48:16,140
But privately, as
we talked about it,

990
00:48:16,140 --> 00:48:19,800
he too, asked me and
others, what can we do?

991
00:48:19,800 --> 00:48:25,140
What can we do to spread these
kinds of practices more widely?

992
00:48:25,140 --> 00:48:27,930
And so I'm asking you.

993
00:48:27,930 --> 00:48:28,430
Leo?

994
00:48:28,430 --> 00:48:32,050
AUDIENCE: I think there's
one thing that [INAUDIBLE]

995
00:48:32,050 --> 00:48:33,320
additional policies.

996
00:48:33,320 --> 00:48:37,490
Some policies are necessary, by
just worker voice and stronger

997
00:48:37,490 --> 00:48:39,690
unions, but also, even
higher minimum wage.

998
00:48:39,690 --> 00:48:43,815
If minimum wage is higher,
and [INAUDIBLE] salaries would

999
00:48:43,815 --> 00:48:46,620
be higher, that put
pressure on the companies

1000
00:48:46,620 --> 00:48:49,506
to train their workers and
have more productive workers.

1001
00:48:49,506 --> 00:48:50,880
Because if you're
going to have--

1002
00:48:50,880 --> 00:48:53,220
you're going to be forced
to pay a better salary,

1003
00:48:53,220 --> 00:48:56,390
you're going to try to
extract that value that you

1004
00:48:56,390 --> 00:48:58,890
obtaining, the only way you can
do is by training them more.

1005
00:48:58,890 --> 00:48:59,515
TOM KOCHAN: OK.

1006
00:48:59,515 --> 00:49:01,320
AUDIENCE: And having them like--

1007
00:49:01,320 --> 00:49:01,922
being better.

1008
00:49:01,922 --> 00:49:03,630
And you're also giving
workers protection

1009
00:49:03,630 --> 00:49:05,622
from being laid
off so easily, so

1010
00:49:05,622 --> 00:49:07,580
that also commits the
company a little bit more

1011
00:49:07,580 --> 00:49:08,420
to their workers.

1012
00:49:08,420 --> 00:49:10,590
So in that sense, you
can create maybe a more--

1013
00:49:10,590 --> 00:49:11,298
TOM KOCHAN: Yeah.

1014
00:49:11,298 --> 00:49:15,960
So Leo is reflecting a
view that many people hold,

1015
00:49:15,960 --> 00:49:18,450
that we got to bring up
the floor of the low road,

1016
00:49:18,450 --> 00:49:21,120
and we've got a higher
minimum wage, stronger

1017
00:49:21,120 --> 00:49:24,000
enforcement of other
Labor Standards perhaps,

1018
00:49:24,000 --> 00:49:27,190
that's going to create
some incentives.

1019
00:49:27,190 --> 00:49:30,990
You know, Wal-Mart did raise
its wages by $1 an hour

1020
00:49:30,990 --> 00:49:34,590
above the minimum wage in
response to employee pressure.

1021
00:49:34,590 --> 00:49:36,630
Now what that requires
McDonald's to get

1022
00:49:36,630 --> 00:49:38,874
the return on that
increased wage,

1023
00:49:38,874 --> 00:49:40,540
is they've got to
start to train people.

1024
00:49:40,540 --> 00:49:42,248
They've got to hold
on to their employees

1025
00:49:42,248 --> 00:49:44,190
more, for a longer
period of time.

1026
00:49:44,190 --> 00:49:46,410
Whether they will do that
or not, I don't know.

1027
00:49:46,410 --> 00:49:50,610
But absolutely it sets in
motion some of the dynamics that

1028
00:49:50,610 --> 00:49:52,574
create a stronger incentive.

1029
00:49:52,574 --> 00:49:53,520
Greg?

1030
00:49:53,520 --> 00:49:55,062
AUDIENCE: This is
going back to stuff

1031
00:49:55,062 --> 00:49:57,103
we talked about in the
beginning of the semester,

1032
00:49:57,103 --> 00:49:59,552
but I think getting the right
investors on board, if you--

1033
00:49:59,552 --> 00:49:59,900
TOM KOCHAN: Uh huh.

1034
00:49:59,900 --> 00:50:01,030
AUDIENCE: --need
investors is critical.

1035
00:50:01,030 --> 00:50:01,738
TOM KOCHAN: Good.

1036
00:50:01,738 --> 00:50:04,229
AUDIENCE: And I think that
a lot of the [INAUDIBLE]

1037
00:50:04,229 --> 00:50:06,278
at MIT where people
talk about making sure

1038
00:50:06,278 --> 00:50:08,154
if you're an early
stage [INAUDIBLE]

1039
00:50:08,154 --> 00:50:10,499
get investors that are
aligned what you want.

1040
00:50:10,499 --> 00:50:13,009
I think too often,
we see investors

1041
00:50:13,009 --> 00:50:15,050
that push companies to
try scale really quickly--

1042
00:50:15,050 --> 00:50:15,716
TOM KOCHAN: Yep.

1043
00:50:15,716 --> 00:50:18,494
AUDIENCE: --and a lot of
that necessitates sacrifices

1044
00:50:18,494 --> 00:50:21,120
that this quote kind of talks
about, but I don't think you

1045
00:50:21,120 --> 00:50:23,610
have that motivation,
unless you have

1046
00:50:23,610 --> 00:50:25,932
someone else who kind of
can give you that pressure

1047
00:50:25,932 --> 00:50:27,594
and try to force you to take it.

1048
00:50:27,594 --> 00:50:30,010
TOM KOCHAN: So picking your
investors is really important.

1049
00:50:30,010 --> 00:50:33,030
And in one of the
videos that we did

1050
00:50:33,030 --> 00:50:35,130
for the course, Scott
Stern, one of our colleagues

1051
00:50:35,130 --> 00:50:37,230
who teaches
entrepreneurial strategy,

1052
00:50:37,230 --> 00:50:41,622
is one of our best people in
this field, makes that point.

1053
00:50:41,622 --> 00:50:43,830
And in fact, there'll be a
slide that will illustrate

1054
00:50:43,830 --> 00:50:46,830
this just in a few minutes.

1055
00:50:46,830 --> 00:50:48,570
But absolutely.

1056
00:50:48,570 --> 00:50:52,114
Picking your investors
is really critical.

1057
00:50:52,114 --> 00:50:52,613
Ben?

1058
00:50:52,613 --> 00:50:54,630
AUDIENCE: I wonder
how hard it is

1059
00:50:54,630 --> 00:50:57,030
to change the
momentum of something

1060
00:50:57,030 --> 00:50:58,660
like Wal-Mart, who's
publicly traded.

1061
00:50:58,660 --> 00:51:01,320
But for example, with
Harpoon it had the option

1062
00:51:01,320 --> 00:51:03,320
of being bought out,
and they consciously

1063
00:51:03,320 --> 00:51:06,960
made a decision as
privately held company

1064
00:51:06,960 --> 00:51:09,120
to move towards employee owned.

1065
00:51:09,120 --> 00:51:11,740
So is it too hard to
manipulate Wal-Mart,

1066
00:51:11,740 --> 00:51:16,170
and should we just
focus on advancing

1067
00:51:16,170 --> 00:51:18,750
the Costcos, and the Market
Baskets, and the Harpoons,

1068
00:51:18,750 --> 00:51:24,870
and the Allagashes of the world,
and just kind of let Wal-Mart

1069
00:51:24,870 --> 00:51:28,442
reap what it sows with its
illegal labor practices.

1070
00:51:28,442 --> 00:51:30,150
TOM KOCHAN: Well,
that's a good question.

1071
00:51:30,150 --> 00:51:32,130
I'm not sure that
I have the answer.

1072
00:51:32,130 --> 00:51:34,950
Should we let Wal-Mart alone
because it's the toughest nut

1073
00:51:34,950 --> 00:51:38,530
to crack in some ways, or
because it's the biggest--

1074
00:51:38,530 --> 00:51:40,080
it would have the
biggest effect,

1075
00:51:40,080 --> 00:51:42,030
should we put resources there.

1076
00:51:42,030 --> 00:51:48,090
I do believe that it's a sign
of some mental problems when

1077
00:51:48,090 --> 00:51:51,420
you keep beating yourself
against a wall, right?

1078
00:51:51,420 --> 00:51:53,760
And I think if you
can't really change it,

1079
00:51:53,760 --> 00:51:56,790
then you have to go where you
can really bring about change.

1080
00:51:56,790 --> 00:52:00,630
Yes, we should perhaps
continue to put pressure

1081
00:52:00,630 --> 00:52:03,420
on companies like
Wal-Mart, but perhaps we

1082
00:52:03,420 --> 00:52:05,490
have to go where the
opportunities are.

1083
00:52:05,490 --> 00:52:07,890
And that's why
courses like this,

1084
00:52:07,890 --> 00:52:11,250
educating the next
generation of leaders, is so,

1085
00:52:11,250 --> 00:52:12,870
I think, important.

1086
00:52:12,870 --> 00:52:14,780
Because we can
make a difference.

1087
00:52:14,780 --> 00:52:18,060
And if we can get people
to think about the choices

1088
00:52:18,060 --> 00:52:20,010
and know that
they've got choices,

1089
00:52:20,010 --> 00:52:22,680
and recognize that there are
some directions that they can

1090
00:52:22,680 --> 00:52:26,850
take their company, and as
you go out into the companies

1091
00:52:26,850 --> 00:52:30,180
that you will be employed in and
the people in the online course

1092
00:52:30,180 --> 00:52:32,460
go out and work in a
variety of settings,

1093
00:52:32,460 --> 00:52:34,590
you can be raising
these questions.

1094
00:52:34,590 --> 00:52:37,440
And in fact, I'll
tell you a secret.

1095
00:52:37,440 --> 00:52:41,370
There are some Sloan School
graduates in some companies

1096
00:52:41,370 --> 00:52:44,740
not to be mentioned,
but similar to what

1097
00:52:44,740 --> 00:52:46,380
we're talking
about here, who are

1098
00:52:46,380 --> 00:52:49,920
raising those questions
today, and bringing some

1099
00:52:49,920 --> 00:52:53,240
of their executives back to
campus to see if they can learn

1100
00:52:53,240 --> 00:52:56,780
more about what would it
take, is it possible to do it.

1101
00:52:56,780 --> 00:53:02,540
So I'm maybe an internal
optimist on this.

1102
00:53:02,540 --> 00:53:06,080
I'm not naive, it's
a big road to travel,

1103
00:53:06,080 --> 00:53:08,270
but I think we can
make a difference.

1104
00:53:08,270 --> 00:53:11,360
And so I want to go where the
opportunities are, perhaps more

1105
00:53:11,360 --> 00:53:15,230
than where the
resistance is greatest.

1106
00:53:15,230 --> 00:53:21,020
Well, this is just one way of
proceeding with the high road

1107
00:53:21,020 --> 00:53:23,030
strategies that are
really important,

1108
00:53:23,030 --> 00:53:25,280
there are opportunities
for moving forward.

1109
00:53:25,280 --> 00:53:29,180
And you had-- the folks
in the online course--

1110
00:53:29,180 --> 00:53:32,540
have had the experience
of testing this idea.

1111
00:53:32,540 --> 00:53:34,520
Because one of the
assignments was

1112
00:53:34,520 --> 00:53:38,540
to go out and interview
someone in an organization,

1113
00:53:38,540 --> 00:53:41,210
in an industry of
interest to you,

1114
00:53:41,210 --> 00:53:44,330
and you asked them a
series of questions

1115
00:53:44,330 --> 00:53:46,400
that come from the
research that's

1116
00:53:46,400 --> 00:53:49,340
been done on what does it
take to build a high road,

1117
00:53:49,340 --> 00:53:51,590
high performance
work organization,

1118
00:53:51,590 --> 00:53:53,690
and what does it take
to meet the aspirations

1119
00:53:53,690 --> 00:53:57,140
of the workforce to have
satisfying work experiences.

1120
00:53:57,140 --> 00:54:01,220
And that battery of
questions then ended

1121
00:54:01,220 --> 00:54:06,310
with a very simple
question to the student who

1122
00:54:06,310 --> 00:54:08,990
was collecting the data on
the basis of an interview

1123
00:54:08,990 --> 00:54:11,570
with an employee, and
said to the student,

1124
00:54:11,570 --> 00:54:14,420
if you were offered a
job in this organization,

1125
00:54:14,420 --> 00:54:16,350
would you take it or not.

1126
00:54:16,350 --> 00:54:19,730
And the numbers, the raw
numbers were 60% said yes,

1127
00:54:19,730 --> 00:54:21,560
but 40% said no.

1128
00:54:21,560 --> 00:54:23,330
I didn't hear that
this was the kind

1129
00:54:23,330 --> 00:54:25,190
of organizational
environment that

1130
00:54:25,190 --> 00:54:29,161
would allow me to use my skills,
or to have a satisfying work

1131
00:54:29,161 --> 00:54:29,660
experience.

1132
00:54:29,660 --> 00:54:32,600
That's a pretty
remarkable distribution,

1133
00:54:32,600 --> 00:54:37,190
that 40% after hearing about an
organization, say no thank you,

1134
00:54:37,190 --> 00:54:39,350
I don't think I would
take a job there.

1135
00:54:39,350 --> 00:54:41,160
I think we've got a
lot of work to do.

1136
00:54:41,160 --> 00:54:42,860
But the good news
in this is that you

1137
00:54:42,860 --> 00:54:45,410
do a little bit of
statistical analysis,

1138
00:54:45,410 --> 00:54:49,820
and you ask do these high
performance, high road

1139
00:54:49,820 --> 00:54:53,150
characteristics and
good job characteristics

1140
00:54:53,150 --> 00:54:56,600
predict whether someone
would take a job or not.

1141
00:54:56,600 --> 00:54:59,540
The good news for employers
is that if you provide

1142
00:54:59,540 --> 00:55:04,170
these kinds of opportunities
and features in your workplace,

1143
00:55:04,170 --> 00:55:07,340
you have a 75% chance
of attracting the talent

1144
00:55:07,340 --> 00:55:08,210
that you need.

1145
00:55:08,210 --> 00:55:11,960
That people will accept a job,
it's not 60%, it's now 75%.

1146
00:55:11,960 --> 00:55:15,920
That's a substantial
change, and so the good news

1147
00:55:15,920 --> 00:55:18,680
is that firms can attract
the kind of talent

1148
00:55:18,680 --> 00:55:20,390
and perhaps retain
the kind of talent

1149
00:55:20,390 --> 00:55:24,410
that they need to support a
high performance organization,

1150
00:55:24,410 --> 00:55:29,700
if they invest and engage in
the right set of practices.

1151
00:55:29,700 --> 00:55:31,550
So that's another
reason why I think

1152
00:55:31,550 --> 00:55:33,110
we need to do more of this.

1153
00:55:33,110 --> 00:55:34,940
We need to keep
asking about what's

1154
00:55:34,940 --> 00:55:37,760
going on in organizations.

1155
00:55:37,760 --> 00:55:42,380
There is a growing number
of online platforms

1156
00:55:42,380 --> 00:55:46,130
and various kinds of use
of information technology

1157
00:55:46,130 --> 00:55:49,850
that we'll talk about in just
a moment that is providing

1158
00:55:49,850 --> 00:55:51,980
more information on firms.

1159
00:55:51,980 --> 00:55:54,440
Glass Door is probably
the best known,

1160
00:55:54,440 --> 00:55:57,990
where it collects employee
ratings of their employer.

1161
00:55:57,990 --> 00:56:00,600
Well, we need to use
that kind of data--

1162
00:56:00,600 --> 00:56:06,300
those data to understand
what is the difference

1163
00:56:06,300 --> 00:56:09,330
between an attractive
place to work

1164
00:56:09,330 --> 00:56:11,700
and a less attractive
place to work, and then

1165
00:56:11,700 --> 00:56:16,260
use our skills to move to
where the good jobs are,

1166
00:56:16,260 --> 00:56:20,580
so that we discipline, and again
bring up the lower road firms.

1167
00:56:20,580 --> 00:56:24,340
So I'm encouraged by the
good jobs survey exercise.

1168
00:56:24,340 --> 00:56:27,090
I hope people do that,
maybe informally.

1169
00:56:27,090 --> 00:56:30,000
You don't have to go out and
ask 25 questions every time,

1170
00:56:30,000 --> 00:56:31,890
but you can ask
the key questions,

1171
00:56:31,890 --> 00:56:33,690
because you know what
they are, and you

1172
00:56:33,690 --> 00:56:35,410
know what you're
looking for, and you

1173
00:56:35,410 --> 00:56:38,350
know what's really important.

1174
00:56:38,350 --> 00:56:42,580
Then we came to this
question about well, unions.

1175
00:56:42,580 --> 00:56:45,670
Unions have this great
phrase in the United States.

1176
00:56:45,670 --> 00:56:48,250
In the 20th century,
they say, we're

1177
00:56:48,250 --> 00:56:51,300
the organization that
brought you the weekend,

1178
00:56:51,300 --> 00:56:52,610
and they're right.

1179
00:56:52,610 --> 00:56:55,350
They're the organization that
really negotiated more time

1180
00:56:55,350 --> 00:57:01,470
off, holiday pay, vacation
pay, sick leave, weekend

1181
00:57:01,470 --> 00:57:06,970
over time rates for working
the unattractive hours,

1182
00:57:06,970 --> 00:57:10,080
or working more than
40 hours, and so on.

1183
00:57:10,080 --> 00:57:13,590
And so unions have a very long
history in the United States

1184
00:57:13,590 --> 00:57:18,040
and around the world for
improving wages, hours,

1185
00:57:18,040 --> 00:57:21,270
and working conditions
and helping to lift up

1186
00:57:21,270 --> 00:57:24,037
the standards in our
economies, but we all know that

1187
00:57:24,037 --> 00:57:25,620
particularly here
in the United States

1188
00:57:25,620 --> 00:57:27,690
but in many countries
around the world,

1189
00:57:27,690 --> 00:57:29,400
unions are on the decline.

1190
00:57:29,400 --> 00:57:33,420
And in fact, many people,
probably in the online course,

1191
00:57:33,420 --> 00:57:36,090
never even thought
much about unions.

1192
00:57:36,090 --> 00:57:38,160
Many of the people here
at the Sloan School.

1193
00:57:38,160 --> 00:57:40,650
It's not on the front
burner of their minds

1194
00:57:40,650 --> 00:57:46,020
to think about unions as a
force for economic advancement,

1195
00:57:46,020 --> 00:57:49,350
in our economy or in their
particular work lives.

1196
00:57:49,350 --> 00:57:53,490
So we felt it was important
to engage this question.

1197
00:57:53,490 --> 00:57:54,480
Is there a future?

1198
00:57:54,480 --> 00:57:56,100
Do we still need them?

1199
00:57:56,100 --> 00:57:59,610
And the views were quite
diverse and a good discussion.

1200
00:57:59,610 --> 00:58:02,130
But I think there's a dominant
view that, well, unions

1201
00:58:02,130 --> 00:58:04,560
played an important
role in the past

1202
00:58:04,560 --> 00:58:06,360
in the way in which
they function,

1203
00:58:06,360 --> 00:58:08,910
and they had some
negative features as well.

1204
00:58:08,910 --> 00:58:11,820
They brought maybe
too much rigidity,

1205
00:58:11,820 --> 00:58:15,390
and some work rules that
impeded productivity,

1206
00:58:15,390 --> 00:58:18,390
and that continue to impede
productivity in some cases.

1207
00:58:18,390 --> 00:58:21,330
They were resistant to
change, because people

1208
00:58:21,330 --> 00:58:24,660
got used to the way in
which they were working

1209
00:58:24,660 --> 00:58:28,500
and to the benefits and to their
control over job opportunities

1210
00:58:28,500 --> 00:58:29,340
and so on.

1211
00:58:29,340 --> 00:58:33,850
They restricted access to
union jobs in some cases,

1212
00:58:33,850 --> 00:58:36,610
to their relatives or
people who looked like them.

1213
00:58:36,610 --> 00:58:40,620
And so there's a history of
discrimination in some unions.

1214
00:58:40,620 --> 00:58:42,780
That is not a very
attractive part

1215
00:58:42,780 --> 00:58:44,490
of the history of labor either.

1216
00:58:44,490 --> 00:58:50,640
So unions have a positive and
a negative historical setting--

1217
00:58:50,640 --> 00:58:55,380
or historical record that
we need to understand.

1218
00:58:55,380 --> 00:58:59,130
But the question is what
will replace this void,

1219
00:58:59,130 --> 00:59:02,490
or fill this void, that's
now left in the United States

1220
00:59:02,490 --> 00:59:05,610
and in some other countries
as unions decline?

1221
00:59:05,610 --> 00:59:10,410
Is there a way to revise
unions, rebuild them,

1222
00:59:10,410 --> 00:59:14,160
to create organizations
or entities that advocate

1223
00:59:14,160 --> 00:59:16,890
for workers in a modern way?

1224
00:59:16,890 --> 00:59:19,140
That was a source of discussion.

1225
00:59:19,140 --> 00:59:21,870
It's a source of
debate in this country,

1226
00:59:21,870 --> 00:59:24,420
and in many countries
around the world.

1227
00:59:24,420 --> 00:59:27,720
And basically, I think
most people in the course

1228
00:59:27,720 --> 00:59:31,260
have come to the conclusion
that yes, there is a role,

1229
00:59:31,260 --> 00:59:36,630
but it can't be just, as I put
it in the textbook, your father

1230
00:59:36,630 --> 00:59:38,220
or your grandfather's union.

1231
00:59:38,220 --> 00:59:41,380
Because it was mostly a male
dominated labor movement.

1232
00:59:41,380 --> 00:59:43,370
It no longer, by the way, is.

1233
00:59:43,370 --> 00:59:47,670
We're now in the United
States at just about 50%

1234
00:59:47,670 --> 00:59:52,150
of union members are
women as well as men.

1235
00:59:52,150 --> 00:59:55,500
And so it's changed over time,
but that's kind of the history.

1236
00:59:55,500 --> 01:00:00,170
But there's a recognition
that unions have to change.

1237
01:00:00,170 --> 01:00:03,890
There seems to be, it says
here "a conscious effort

1238
01:00:03,890 --> 01:00:07,130
to revitalize the way
that unions work in order

1239
01:00:07,130 --> 01:00:09,650
to meet the needs of the
most vulnerable workers

1240
01:00:09,650 --> 01:00:13,200
in recent years," particularly,
"in a globalized world."

1241
01:00:13,200 --> 01:00:15,740
So we're seeing
unions try to work

1242
01:00:15,740 --> 01:00:18,560
to deal with the terrible
problems that have occurred,

1243
01:00:18,560 --> 01:00:21,080
for example, in
Bangladesh, where

1244
01:00:21,080 --> 01:00:25,760
the first terrible factory fire
that took over 100 workers'

1245
01:00:25,760 --> 01:00:28,850
lives, and then the terrible
factory collapse that

1246
01:00:28,850 --> 01:00:33,230
took over 1,000 workers' lives
in Bangladesh, where standards

1247
01:00:33,230 --> 01:00:36,110
were not being attended to.

1248
01:00:36,110 --> 01:00:39,800
And so out of that has come
a global effort of unions

1249
01:00:39,800 --> 01:00:42,980
from Europe and from
around the world to say,

1250
01:00:42,980 --> 01:00:46,940
we need to work together with
companies in something that's

1251
01:00:46,940 --> 01:00:50,510
called the Accord, that
is, a negotiated agreement

1252
01:00:50,510 --> 01:00:53,030
for arbitration, for
safety provisions,

1253
01:00:53,030 --> 01:00:55,670
for safety inspections,
and for workers to have

1254
01:00:55,670 --> 01:00:57,800
a voice in that society.

1255
01:00:57,800 --> 01:01:00,440
Long way to go on
that, and in fact,

1256
01:01:00,440 --> 01:01:02,840
some American
corporations say we

1257
01:01:02,840 --> 01:01:04,400
want to address
these issues, but we

1258
01:01:04,400 --> 01:01:07,160
don't want to include
unions in that process.

1259
01:01:07,160 --> 01:01:11,060
So there is a parallel
effort called the Alliance,

1260
01:01:11,060 --> 01:01:16,190
with firms like the Gap and
Wal-Mart and others from the US

1261
01:01:16,190 --> 01:01:17,930
that are going it alone.

1262
01:01:17,930 --> 01:01:19,700
I don't know which
way is the best.

1263
01:01:19,700 --> 01:01:22,430
I'm not an expert
on Bangladesh, I've

1264
01:01:22,430 --> 01:01:25,940
only been there on one
very, very short visit,

1265
01:01:25,940 --> 01:01:29,420
so I wouldn't make a judgment
of what the right strategy is.

1266
01:01:29,420 --> 01:01:32,450
But here we have efforts
to try to do something

1267
01:01:32,450 --> 01:01:35,000
about global labor
standards by bringing

1268
01:01:35,000 --> 01:01:39,440
about some coalition of
the local organizations,

1269
01:01:39,440 --> 01:01:41,210
the local unions to
the extent that they

1270
01:01:41,210 --> 01:01:43,640
exist, international
unions working

1271
01:01:43,640 --> 01:01:47,810
with companies and with brands
to try to enforce standards

1272
01:01:47,810 --> 01:01:49,130
in those factories.

1273
01:01:49,130 --> 01:01:51,240
We talked about
Nike in the course,

1274
01:01:51,240 --> 01:01:53,370
we talked about how they
went through this process.

1275
01:01:53,370 --> 01:01:57,020
We talked about Apple's
struggles in China

1276
01:01:57,020 --> 01:01:59,810
and the suicides and
the terrible conditions

1277
01:01:59,810 --> 01:02:01,760
in organizations like Fox Con.

1278
01:02:01,760 --> 01:02:07,490
This is the front line of
worker voice and representation,

1279
01:02:07,490 --> 01:02:11,540
where we have to invent new
ways to make things work.

1280
01:02:11,540 --> 01:02:16,790
We also talked about the role of
labor management partnerships.

1281
01:02:16,790 --> 01:02:19,550
We've been privileged to
work with Kaiser-Permanente

1282
01:02:19,550 --> 01:02:24,920
for several decades now, in
helping to understand and study

1283
01:02:24,920 --> 01:02:27,350
the labor management
partnership they put in place,

1284
01:02:27,350 --> 01:02:29,330
and to work with
them to improve it.

1285
01:02:29,330 --> 01:02:31,010
Because all of
these institutions

1286
01:02:31,010 --> 01:02:33,050
are sort of fragile,
and there are always

1287
01:02:33,050 --> 01:02:34,950
tensions that are involved.

1288
01:02:34,950 --> 01:02:38,180
But here's an organization
that has worked with its unions

1289
01:02:38,180 --> 01:02:39,180
in health care.

1290
01:02:39,180 --> 01:02:40,640
And now on the
front lines you now

1291
01:02:40,640 --> 01:02:45,860
have 3,500 what they
call unit based teams.

1292
01:02:45,860 --> 01:02:49,790
Teams of employees, doctors,
nurses, technicians, service

1293
01:02:49,790 --> 01:02:52,250
employees, people who--

1294
01:02:52,250 --> 01:02:54,830
the janitors in the
organization work to say

1295
01:02:54,830 --> 01:02:56,960
how can we improve operations?

1296
01:02:56,960 --> 01:02:59,090
How can we reduce
injuries-- back injuries

1297
01:02:59,090 --> 01:02:59,990
for the workforce?

1298
01:02:59,990 --> 01:03:02,990
How can we reduce the
infections that we sometimes

1299
01:03:02,990 --> 01:03:04,280
find in hospitals?

1300
01:03:04,280 --> 01:03:07,490
What are we doing to
change the operation,

1301
01:03:07,490 --> 01:03:09,980
to serve our customers,
to use technology

1302
01:03:09,980 --> 01:03:14,510
to make sure that we're checking
on our clients or our patients

1303
01:03:14,510 --> 01:03:17,042
out there, and saying gee,
I looked on your record

1304
01:03:17,042 --> 01:03:18,500
and I noticed that
you haven't been

1305
01:03:18,500 --> 01:03:21,170
in to fill your
prescriptions, or you

1306
01:03:21,170 --> 01:03:24,260
haven't come in for your
scheduled appointments.

1307
01:03:24,260 --> 01:03:29,360
What's going on, and how can
we get those issues addressed

1308
01:03:29,360 --> 01:03:30,500
more effectively?

1309
01:03:30,500 --> 01:03:33,740
Working in teams, together,
labor and management

1310
01:03:33,740 --> 01:03:35,690
saying this is part
of how we're going

1311
01:03:35,690 --> 01:03:38,690
to create world class
health care delivery, and at

1312
01:03:38,690 --> 01:03:41,760
the same time, then have
industry leading wages.

1313
01:03:41,760 --> 01:03:43,490
And so there are
ways to do this.

1314
01:03:43,490 --> 01:03:46,310
We've learned from
organizations like Saturn that

1315
01:03:46,310 --> 01:03:49,100
started that way, but didn't
get the kind of support

1316
01:03:49,100 --> 01:03:50,480
we've learned from Kaiser.

1317
01:03:50,480 --> 01:03:52,580
We need more of those
kinds of organizations

1318
01:03:52,580 --> 01:03:55,040
according to many of you.

1319
01:03:55,040 --> 01:03:58,450
But you're also thinking
more creatively.

1320
01:03:58,450 --> 01:03:59,980
And there was a
lively discussion--

1321
01:03:59,980 --> 01:04:03,430
I couldn't pass
putting this concept

1322
01:04:03,430 --> 01:04:08,320
of a digital union, which came
right off the discussion board.

1323
01:04:08,320 --> 01:04:11,890
That created quite
a set of comments

1324
01:04:11,890 --> 01:04:15,580
over the course of the term.

1325
01:04:15,580 --> 01:04:17,860
And basically by
digital unions, we're

1326
01:04:17,860 --> 01:04:21,250
really talking about
ways to use information.

1327
01:04:21,250 --> 01:04:23,920
To use online platforms
the way businesses

1328
01:04:23,920 --> 01:04:26,320
are using them, to
share information.

1329
01:04:26,320 --> 01:04:28,730
What-- where are
the good jobs, where

1330
01:04:28,730 --> 01:04:30,310
are there not such good jobs.

1331
01:04:30,310 --> 01:04:32,980
How can we mobilize in China?

1332
01:04:32,980 --> 01:04:36,770
The way workers mobilize today
is through their smartphones.

1333
01:04:36,770 --> 01:04:38,530
They don't have
independent unions,

1334
01:04:38,530 --> 01:04:41,050
but they do have the
technology, and they

1335
01:04:41,050 --> 01:04:43,900
use that to build
their own network when

1336
01:04:43,900 --> 01:04:47,590
they feel most aggrieved and the
need to do something about it.

1337
01:04:47,590 --> 01:04:49,510
Now they have to
often do something

1338
01:04:49,510 --> 01:04:54,020
in a pretty spontaneous
way, and sometimes

1339
01:04:54,020 --> 01:04:57,580
in a very strong
resistance, sometimes

1340
01:04:57,580 --> 01:04:59,170
even in a violent
way, and sometimes

1341
01:04:59,170 --> 01:05:02,560
even holding the
plant manager hostage

1342
01:05:02,560 --> 01:05:09,520
in his or her own facility until
something can be negotiated.

1343
01:05:09,520 --> 01:05:12,400
But they're using
technology to try

1344
01:05:12,400 --> 01:05:16,870
to find new ways of
meeting worker needs.

1345
01:05:16,870 --> 01:05:21,550
Then there are other
organizations that we cited.

1346
01:05:21,550 --> 01:05:25,256
Different kinds of organizations
that aren't even called unions.

1347
01:05:25,256 --> 01:05:27,130
Some of them use the
term, but they're really

1348
01:05:27,130 --> 01:05:30,580
outside of the traditional
form of unions.

1349
01:05:30,580 --> 01:05:33,760
This one up in the upper
left hand corner here,

1350
01:05:33,760 --> 01:05:37,730
Restaurant Opportunities
Center, was cited in the course

1351
01:05:37,730 --> 01:05:40,510
a number of times, but
it's worth focusing on,

1352
01:05:40,510 --> 01:05:43,090
because it's a very
interesting organization that

1353
01:05:43,090 --> 01:05:45,210
came out of a tragedy.

1354
01:05:45,210 --> 01:05:49,270
It was formed after
our terrible experience

1355
01:05:49,270 --> 01:05:55,750
in September 11th, when
the Twin Towers in New York

1356
01:05:55,750 --> 01:05:58,360
collapsed from a
terrorist attack.

1357
01:05:58,360 --> 01:06:01,480
And out of that,
there was a restaurant

1358
01:06:01,480 --> 01:06:04,600
called the Windows on the
World at the top that obviously

1359
01:06:04,600 --> 01:06:11,410
collapsed with it, and many
employees died in that tragedy.

1360
01:06:11,410 --> 01:06:13,240
And so this
organization was formed

1361
01:06:13,240 --> 01:06:16,570
to try to deal with the
families and to help people cope

1362
01:06:16,570 --> 01:06:18,940
with that terrible disaster.

1363
01:06:18,940 --> 01:06:22,180
And what it's evolved
into is an organization

1364
01:06:22,180 --> 01:06:25,870
that works to both improve
job conditions for people

1365
01:06:25,870 --> 01:06:31,150
in restaurants, but also
to publicize good practices

1366
01:06:31,150 --> 01:06:34,270
for sustainable food,
and for food preparation,

1367
01:06:34,270 --> 01:06:38,050
and for the way in which
the workforce is treated,

1368
01:06:38,050 --> 01:06:40,000
the way in which the
customers are treated.

1369
01:06:40,000 --> 01:06:42,730
They encourage customers
to rate not only

1370
01:06:42,730 --> 01:06:46,270
the quality of the food, but
also the quality of the working

1371
01:06:46,270 --> 01:06:49,090
conditions, and ask about
it in the restaurants.

1372
01:06:49,090 --> 01:06:51,070
And they're working
to stay outside

1373
01:06:51,070 --> 01:06:54,910
of the traditions
of labor relations,

1374
01:06:54,910 --> 01:06:57,760
to find new ways
to train employees,

1375
01:06:57,760 --> 01:07:00,964
to provide information
on where good jobs are,

1376
01:07:00,964 --> 01:07:03,130
to make sure that they are
taking care of the safety

1377
01:07:03,130 --> 01:07:05,320
and health and providing
more information,

1378
01:07:05,320 --> 01:07:07,450
and working with
restaurant owners.

1379
01:07:07,450 --> 01:07:11,410
They are working with some of
the most innovative restaurant

1380
01:07:11,410 --> 01:07:13,390
owners in New York
and in San Francisco

1381
01:07:13,390 --> 01:07:14,700
and in other country--

1382
01:07:14,700 --> 01:07:16,780
other cities in
the United States,

1383
01:07:16,780 --> 01:07:20,540
to promote this as part of
their good company, good job

1384
01:07:20,540 --> 01:07:21,710
strategy.

1385
01:07:21,710 --> 01:07:24,430
And so this is just
another way in which

1386
01:07:24,430 --> 01:07:28,630
creative minds, young people,
in this case, young people

1387
01:07:28,630 --> 01:07:31,600
and immigrants working
together, largely, to say we

1388
01:07:31,600 --> 01:07:36,280
can find ways to do this
in a modern fashion that

1389
01:07:36,280 --> 01:07:41,260
is responsive to both
consumers, to employees,

1390
01:07:41,260 --> 01:07:43,150
and to the businesses
that operate.

1391
01:07:43,150 --> 01:07:46,240
So I think we're in
an interesting time.

1392
01:07:46,240 --> 01:07:50,030
Will these grow to be large
enough to have an effect?

1393
01:07:50,030 --> 01:07:54,580
I don't know, but I think
it's really up to all of you,

1394
01:07:54,580 --> 01:07:58,480
all of you, wherever you
happen to be in the world,

1395
01:07:58,480 --> 01:08:01,120
to invent the kinds
of organizations that

1396
01:08:01,120 --> 01:08:05,080
work effectively for you in
the kind of work settings

1397
01:08:05,080 --> 01:08:07,090
that you find yourself today.

1398
01:08:07,090 --> 01:08:10,630
And out of that will come some
models that will grow, perhaps

1399
01:08:10,630 --> 01:08:13,570
over time, and have an effect.

1400
01:08:13,570 --> 01:08:18,130
Well, we didn't just talk
about what others need to do.

1401
01:08:18,130 --> 01:08:21,520
We spent a good deal of time
talking about what individuals

1402
01:08:21,520 --> 01:08:22,359
need to do.

1403
01:08:22,359 --> 01:08:26,330
And we emphasize, obviously,
education as a cornerstone,

1404
01:08:26,330 --> 01:08:28,390
as a necessary
condition, but we also

1405
01:08:28,390 --> 01:08:30,520
emphasize the need
to be proactive

1406
01:08:30,520 --> 01:08:34,420
and engage in a career
planning exercise.

1407
01:08:34,420 --> 01:08:36,760
And so one of the
assignments was

1408
01:08:36,760 --> 01:08:41,529
to fill out the
online questionnaire

1409
01:08:41,529 --> 01:08:43,210
provided by the
Department of Labor

1410
01:08:43,210 --> 01:08:48,399
and it's vocational and
career planning tool, which

1411
01:08:48,399 --> 01:08:49,660
is just a standard one.

1412
01:08:49,660 --> 01:08:51,160
It's not any better,
I don't think,

1413
01:08:51,160 --> 01:08:53,590
or any worse than what
you find elsewhere.

1414
01:08:53,590 --> 01:08:55,693
The advantage is
it's free, and that's

1415
01:08:55,693 --> 01:08:57,609
why we used it, because
we didn't want to have

1416
01:08:57,609 --> 01:08:59,399
to have people pay for it.

1417
01:08:59,399 --> 01:09:02,100
But it was the starting point.

1418
01:09:02,100 --> 01:09:03,779
And out of that
completing that, it

1419
01:09:03,779 --> 01:09:07,080
provides information on
what one's aptitudes are,

1420
01:09:07,080 --> 01:09:10,890
what they might be good at,
what jobs and occupations match

1421
01:09:10,890 --> 01:09:13,830
those aptitudes very well,
what levels of education

1422
01:09:13,830 --> 01:09:16,200
are needed to get
to different levels

1423
01:09:16,200 --> 01:09:20,790
of the occupational structure
in that particular area,

1424
01:09:20,790 --> 01:09:24,240
and that provides an
opportunity to say

1425
01:09:24,240 --> 01:09:27,720
I can now make a roadmap for
how to go from where I am

1426
01:09:27,720 --> 01:09:30,750
to realizing what I want to do.

1427
01:09:30,750 --> 01:09:33,420
But we also asked people
to go out and talk

1428
01:09:33,420 --> 01:09:37,620
to people in those occupations
to get a firsthand sense of it.

1429
01:09:37,620 --> 01:09:41,760
So that they have a more
personalized view of what is it

1430
01:09:41,760 --> 01:09:44,460
that this job is
really all about.

1431
01:09:44,460 --> 01:09:47,430
And I think when I read
the responses, that's

1432
01:09:47,430 --> 01:09:50,340
where the learning really
started to take place.

1433
01:09:50,340 --> 01:09:53,550
And so the ability to go
out and engage with people

1434
01:09:53,550 --> 01:09:55,680
and really learn from
their experiences

1435
01:09:55,680 --> 01:09:59,760
is so critical to making
these career planning

1436
01:09:59,760 --> 01:10:02,010
guides come to life.

1437
01:10:02,010 --> 01:10:06,120
And look at the interesting mix
of jobs and occupations here.

1438
01:10:06,120 --> 01:10:08,130
I got a kick out of--
this is only a sample.

1439
01:10:08,130 --> 01:10:12,300
I just took some of the kind
of more interesting ones.

1440
01:10:12,300 --> 01:10:15,060
I guess they're all interesting,
but we have everything

1441
01:10:15,060 --> 01:10:18,480
from engineers and HR managers
and labor leaders and artists

1442
01:10:18,480 --> 01:10:19,830
and futurist.

1443
01:10:19,830 --> 01:10:24,220
Someone's going to-- is very
interested in being a futurist.

1444
01:10:24,220 --> 01:10:25,690
Holacracy consultant.

1445
01:10:25,690 --> 01:10:28,710
Anyone know what
whole holacracy is?

1446
01:10:28,710 --> 01:10:30,840
Probably not.

1447
01:10:30,840 --> 01:10:35,910
Well, holacracy is basically
organizational consultant

1448
01:10:35,910 --> 01:10:39,180
who works to share
power and authority

1449
01:10:39,180 --> 01:10:41,670
throughout the
organization, and to try

1450
01:10:41,670 --> 01:10:44,790
to reduce or even completely
get rid of hierarchy.

1451
01:10:44,790 --> 01:10:47,250
It's very controversial.

1452
01:10:47,250 --> 01:10:50,100
It has some very
strong advocates

1453
01:10:50,100 --> 01:10:51,990
and it has some
very strong critics,

1454
01:10:51,990 --> 01:10:54,317
but here's someone who
is really committed to it

1455
01:10:54,317 --> 01:10:56,650
and is going to go out and
wants to make a career of it,

1456
01:10:56,650 --> 01:10:59,910
and I applaud that energy.

1457
01:10:59,910 --> 01:11:01,140
A sports agent.

1458
01:11:01,140 --> 01:11:02,640
Psychometrician.

1459
01:11:02,640 --> 01:11:05,520
Technical writers,
artists, graphic artists.

1460
01:11:05,520 --> 01:11:07,560
So these are jobs--

1461
01:11:07,560 --> 01:11:09,450
these are all jobs
that people will

1462
01:11:09,450 --> 01:11:12,360
feel that they will find
what they really want to do.

1463
01:11:12,360 --> 01:11:14,070
And I want you to
keep these in mind

1464
01:11:14,070 --> 01:11:16,380
when we think about
in two slides down

1465
01:11:16,380 --> 01:11:19,560
the road here, about
the role of technology.

1466
01:11:19,560 --> 01:11:22,620
Because one of the big
worries in this course that

1467
01:11:22,620 --> 01:11:24,780
was voiced by so many
people, is what's

1468
01:11:24,780 --> 01:11:27,900
going to happen to our jobs
as technology comes along.

1469
01:11:27,900 --> 01:11:29,580
So I want to come
to that in a moment.

1470
01:11:29,580 --> 01:11:31,260
But look at, these
are jobs that are not

1471
01:11:31,260 --> 01:11:33,420
going to necessarily
go away and not

1472
01:11:33,420 --> 01:11:36,720
going to be taken over by robots
or artificial intelligence

1473
01:11:36,720 --> 01:11:38,110
in the near future.

1474
01:11:38,110 --> 01:11:40,620
They will be influenced
by them, for sure,

1475
01:11:40,620 --> 01:11:42,850
but we'll come to
that in a moment.

1476
01:11:42,850 --> 01:11:46,830
What are some of the themes
that came up in the career

1477
01:11:46,830 --> 01:11:48,810
development planning
process, this

1478
01:11:48,810 --> 01:11:52,290
is just a sampling from both
this year and last year.

1479
01:11:52,290 --> 01:11:56,040
The themes were almost
identical across the two years.

1480
01:11:56,040 --> 01:11:58,800
Very strong emphasis on
getting the credentials,

1481
01:11:58,800 --> 01:12:02,220
getting some stamp of approval
that I've got the skills,

1482
01:12:02,220 --> 01:12:05,400
that my customers can
trust me to come in and do

1483
01:12:05,400 --> 01:12:09,690
that work in someone's house,
or in community, or in taking

1484
01:12:09,690 --> 01:12:11,850
care of people in my family.

1485
01:12:11,850 --> 01:12:14,534
And so that's a
growing recognition

1486
01:12:14,534 --> 01:12:15,450
that that's important.

1487
01:12:15,450 --> 01:12:18,390
The importance on having
networks, and building

1488
01:12:18,390 --> 01:12:21,240
these networks so that they know
where the good opportunities

1489
01:12:21,240 --> 01:12:22,950
are and have access to them.

1490
01:12:22,950 --> 01:12:25,260
Emphasis on lifelong
learning and emphasis

1491
01:12:25,260 --> 01:12:29,070
on courses like this, that we
can use this online technology

1492
01:12:29,070 --> 01:12:32,030
perhaps to augment
the basic education

1493
01:12:32,030 --> 01:12:35,310
over the course of time to
support the lifelong learning

1494
01:12:35,310 --> 01:12:36,240
process.

1495
01:12:36,240 --> 01:12:40,320
And then recognition that people
will have to keep their skills

1496
01:12:40,320 --> 01:12:43,530
current, because they will be
changing careers and moving

1497
01:12:43,530 --> 01:12:47,160
across occupations
most likely over time.

1498
01:12:47,160 --> 01:12:48,870
And then finally,
this really important

1499
01:12:48,870 --> 01:12:52,890
point that sometimes the
career planning process doesn't

1500
01:12:52,890 --> 01:12:55,080
pay enough attention
to, that we don't make

1501
01:12:55,080 --> 01:12:57,360
these decisions in isolation.

1502
01:12:57,360 --> 01:13:01,440
We live in a community, we live
in a family, we have partners,

1503
01:13:01,440 --> 01:13:04,350
we have children,
and many of us have

1504
01:13:04,350 --> 01:13:06,810
children or other
relatives who depend on us.

1505
01:13:06,810 --> 01:13:10,200
Sometimes elderly parents
who need to be cared for.

1506
01:13:10,200 --> 01:13:12,630
And so as we make
these plans, one

1507
01:13:12,630 --> 01:13:15,580
of the requests in
the planning exercise

1508
01:13:15,580 --> 01:13:17,130
was don't just tell
us what you want

1509
01:13:17,130 --> 01:13:20,070
to do, but make sure
that you tell us

1510
01:13:20,070 --> 01:13:24,750
how it will affect everyone
else in your immediate family

1511
01:13:24,750 --> 01:13:26,370
or social setting.

1512
01:13:26,370 --> 01:13:29,520
And so that's an important
part of this career planning.

1513
01:13:29,520 --> 01:13:30,750
I think we can do this.

1514
01:13:30,750 --> 01:13:33,930
I don't believe that we
should overdo career planning.

1515
01:13:33,930 --> 01:13:36,060
We can't predict the
future completely,

1516
01:13:36,060 --> 01:13:38,250
and we shouldn't be so
determined that there's

1517
01:13:38,250 --> 01:13:41,070
only one course for the future.

1518
01:13:41,070 --> 01:13:44,550
But we should plan to be
ready to take advantage

1519
01:13:44,550 --> 01:13:46,500
of opportunities
when they come along,

1520
01:13:46,500 --> 01:13:49,110
and know which directions
we want to go in and not

1521
01:13:49,110 --> 01:13:54,180
be afraid to take those
steps when an opportunity is

1522
01:13:54,180 --> 01:13:55,350
open to us.

1523
01:13:55,350 --> 01:13:58,590
So the career planning and
the personal development plan

1524
01:13:58,590 --> 01:14:02,460
process in this course was
a vital part of what we did.

1525
01:14:02,460 --> 01:14:04,830
But then we come
to this question,

1526
01:14:04,830 --> 01:14:07,210
and this is a great frame.

1527
01:14:07,210 --> 01:14:09,360
I wish I could take time
take credit for this,

1528
01:14:09,360 --> 01:14:11,340
will technology eat our jobs?

1529
01:14:11,340 --> 01:14:14,010
But I didn't invent that term.

1530
01:14:14,010 --> 01:14:18,840
I did a little bit
of a Facebook chat

1531
01:14:18,840 --> 01:14:23,520
with a very talented
leader from Sama group.

1532
01:14:23,520 --> 01:14:27,030
Her name is Leila Janah,
and she runs an organization

1533
01:14:27,030 --> 01:14:30,000
that really works
with low income people

1534
01:14:30,000 --> 01:14:33,840
all over the globe to try to
help them to use technology

1535
01:14:33,840 --> 01:14:37,230
to improve their livelihood,
and to gain access

1536
01:14:37,230 --> 01:14:38,670
to better opportunities.

1537
01:14:38,670 --> 01:14:43,350
And so she raised the question,
and we had this discussion,

1538
01:14:43,350 --> 01:14:45,990
will technology eat our jobs.

1539
01:14:45,990 --> 01:14:48,390
We took a pretty strong
position in this.

1540
01:14:48,390 --> 01:14:49,950
And here we are at
MIT, and we have

1541
01:14:49,950 --> 01:14:52,890
some of the people who are
known for being some of the more

1542
01:14:52,890 --> 01:14:55,320
pessimistic, and we have
some people who are known

1543
01:14:55,320 --> 01:14:56,620
for being more optimistic.

1544
01:14:56,620 --> 01:14:57,780
We've got 'em all.

1545
01:14:57,780 --> 01:14:59,780
At MIT, I always
say, that if you--

1546
01:14:59,780 --> 01:15:03,150
we have 1,000 faculty members
and on any given issue,

1547
01:15:03,150 --> 01:15:05,130
those 1,000 faculty
members will have

1548
01:15:05,130 --> 01:15:08,150
at least 3,000 points of view.

1549
01:15:08,150 --> 01:15:12,390
And on this, I think, we can
see people all over the place,

1550
01:15:12,390 --> 01:15:14,280
because we don't really know.

1551
01:15:14,280 --> 01:15:17,670
The serious answer is
we don't know how rapid

1552
01:15:17,670 --> 01:15:21,660
or how broad scale artificial
intelligence, machine learning,

1553
01:15:21,660 --> 01:15:24,270
and all of these other things
are going to take over jobs.

1554
01:15:24,270 --> 01:15:27,830
But we know that if we don't do
anything, if we let it happen,

1555
01:15:27,830 --> 01:15:31,040
then we're at the risk
of the worst scenario.

1556
01:15:31,040 --> 01:15:35,560
But if we use technology
to augment work,

1557
01:15:35,560 --> 01:15:39,250
to augment and strengthen
the role of human judgment,

1558
01:15:39,250 --> 01:15:42,430
then we might be able to
have the best of both worlds.

1559
01:15:42,430 --> 01:15:47,980
And that's what even the IBM
Watson creators emphasized here

1560
01:15:47,980 --> 01:15:52,330
at MIT in a technology day
a couple of months ago.

1561
01:15:52,330 --> 01:15:54,730
And so we can do this.

1562
01:15:54,730 --> 01:15:56,290
We will have displacement.

1563
01:15:56,290 --> 01:15:59,200
There's no question that jobs
are going to be displaced.

1564
01:15:59,200 --> 01:16:02,980
The question is are we going
to be ahead of the curve

1565
01:16:02,980 --> 01:16:05,710
and really work to make
sure that we take care

1566
01:16:05,710 --> 01:16:07,540
of those people
who are displaced,

1567
01:16:07,540 --> 01:16:10,170
provide them opportunities
to move to where the job--

1568
01:16:10,170 --> 01:16:12,220
the good jobs are,
make sure that they've

1569
01:16:12,220 --> 01:16:14,710
got the skills built up
over time so that they

1570
01:16:14,710 --> 01:16:18,350
can make those changes, and
then get on with this process.

1571
01:16:18,350 --> 01:16:20,315
So I think we can use it.

1572
01:16:20,315 --> 01:16:22,690
I think we're going to see
more of these workers centered

1573
01:16:22,690 --> 01:16:25,540
apps that help us
adapt to technology.

1574
01:16:25,540 --> 01:16:27,550
I used the example,
we had an interview

1575
01:16:27,550 --> 01:16:29,710
with Sherpa Share,
the founders that

1576
01:16:29,710 --> 01:16:32,320
use the Uber technology
to share information

1577
01:16:32,320 --> 01:16:35,170
with the drivers on what
their real earnings are,

1578
01:16:35,170 --> 01:16:38,860
and now we're seeing drivers use
that app in new creative ways,

1579
01:16:38,860 --> 01:16:41,920
and other competing
apps are also out there,

1580
01:16:41,920 --> 01:16:45,830
even since we did that interview
a couple of months ago.

1581
01:16:45,830 --> 01:16:49,210
So I'm excited about the use
of technology to improve work,

1582
01:16:49,210 --> 01:16:50,470
but we've got to harness it.

1583
01:16:50,470 --> 01:16:53,380
We've got to be proactive if
we're going to be successful.

1584
01:16:53,380 --> 01:16:55,930
And what about entrepreneurship?

1585
01:16:55,930 --> 01:16:58,660
And again, there's a lot of
hyperbolic entrepreneurship.

1586
01:16:58,660 --> 01:17:01,660
That all new jobs are
created by startups.

1587
01:17:01,660 --> 01:17:05,020
Well, that's not quite true,
but a large number of new jobs

1588
01:17:05,020 --> 01:17:06,740
are created by startups.

1589
01:17:06,740 --> 01:17:09,880
So the importance of
startups, the importance

1590
01:17:09,880 --> 01:17:13,630
of entrepreneurship,
is beyond question.

1591
01:17:13,630 --> 01:17:15,310
We've got to make
sure that we have

1592
01:17:15,310 --> 01:17:17,950
a healthy growth
of new enterprises,

1593
01:17:17,950 --> 01:17:20,680
but we've got to do this
in a more inclusive way.

1594
01:17:20,680 --> 01:17:23,050
We've had terrible
scandals, and again, I'm

1595
01:17:23,050 --> 01:17:27,730
glad it's all over the news
these days, about how male

1596
01:17:27,730 --> 01:17:30,850
dominated Silicon Valley
is with its startups,

1597
01:17:30,850 --> 01:17:34,750
and how difficult it is
for women to move to higher

1598
01:17:34,750 --> 01:17:39,790
levels of leadership in
that part of our growing

1599
01:17:39,790 --> 01:17:41,440
sector of the economy.

1600
01:17:41,440 --> 01:17:44,170
And how difficult it is
for women to get money

1601
01:17:44,170 --> 01:17:45,730
from venture capitalists.

1602
01:17:45,730 --> 01:17:48,430
Well, we've got to change that
and build a more inclusive

1603
01:17:48,430 --> 01:17:50,850
capitalism if we are
going to be successful,

1604
01:17:50,850 --> 01:17:52,890
and in fact we know some things.

1605
01:17:52,890 --> 01:17:54,730
And so that's where
the Hitachi foundation

1606
01:17:54,730 --> 01:17:58,390
has been so successful,
in building a program

1607
01:17:58,390 --> 01:18:02,110
to help young entrepreneurs
to find those investors,

1608
01:18:02,110 --> 01:18:05,530
to pick those investors, as Greg
said earlier in this session

1609
01:18:05,530 --> 01:18:08,560
this afternoon, to make sure
that they pick investors that

1610
01:18:08,560 --> 01:18:12,220
are supportive of
growth opportunities.

1611
01:18:12,220 --> 01:18:13,870
We didn't use this
little example,

1612
01:18:13,870 --> 01:18:17,650
but I like it, because maybe
I like the name, called Beepi.

1613
01:18:17,650 --> 01:18:23,800
But Beepi is an online
used car business.

1614
01:18:23,800 --> 01:18:25,460
Started in San
Francisco, spreading

1615
01:18:25,460 --> 01:18:27,370
to other parts of the country.

1616
01:18:27,370 --> 01:18:30,730
We used it in our on
campus course as a case,

1617
01:18:30,730 --> 01:18:33,340
and so our students in the
room here are familiar with it.

1618
01:18:33,340 --> 01:18:36,700
But basically Beepi faced
this question, who would you

1619
01:18:36,700 --> 01:18:38,620
buy a used car from?

1620
01:18:38,620 --> 01:18:41,080
Do you want to buy it from
someone who is a full time

1621
01:18:41,080 --> 01:18:45,640
employee, who was signing
off and certifying

1622
01:18:45,640 --> 01:18:47,530
that this car has
been inspected,

1623
01:18:47,530 --> 01:18:51,670
this car has been
repaired, this car is safe,

1624
01:18:51,670 --> 01:18:54,539
and this car is worth the
price that is being asked,

1625
01:18:54,539 --> 01:18:56,080
or do you want to
buy it from someone

1626
01:18:56,080 --> 01:18:58,960
who doesn't have that same kind
of commitment, is just hired

1627
01:18:58,960 --> 01:19:01,600
as a contractor to go
through the motions to do it?

1628
01:19:01,600 --> 01:19:04,990
And Beepi faced investors
with debates about that,

1629
01:19:04,990 --> 01:19:09,070
and they went in the direction
of hiring and staying

1630
01:19:09,070 --> 01:19:11,260
with a business
strategy that says

1631
01:19:11,260 --> 01:19:14,950
we think trust is so important,
and quality is so important,

1632
01:19:14,950 --> 01:19:17,110
that we're going to
keep the full time jobs

1633
01:19:17,110 --> 01:19:19,510
with decent wages and benefits.

1634
01:19:19,510 --> 01:19:23,800
Now that's a choice that
young firms also can make,

1635
01:19:23,800 --> 01:19:27,220
but I am under no
illusion of the pressures

1636
01:19:27,220 --> 01:19:29,770
that startups face
to conserve costs,

1637
01:19:29,770 --> 01:19:31,390
because they don't
have much money,

1638
01:19:31,390 --> 01:19:33,200
and they don't have
a lot of resources.

1639
01:19:33,200 --> 01:19:36,124
So it's very difficult. But
if we don't imprint good jobs

1640
01:19:36,124 --> 01:19:37,540
right at the
beginning, it's going

1641
01:19:37,540 --> 01:19:41,210
to be very hard to bring
them in a little bit later.

1642
01:19:41,210 --> 01:19:45,970
So making sure that we
worry about inclusive

1643
01:19:45,970 --> 01:19:49,360
entrepreneurship and
inclusive capitalism

1644
01:19:49,360 --> 01:19:52,886
right from the beginning is
very important. [? Astrid? ?]

1645
01:19:52,886 --> 01:19:54,629
AUDIENCE: I was
just thinking, you

1646
01:19:54,629 --> 01:19:56,870
talk about the US
and the unions,

1647
01:19:56,870 --> 01:19:58,862
where [INAUDIBLE]
declined made the most.

1648
01:19:58,862 --> 01:20:02,348
One place where I feel
that the US can help us

1649
01:20:02,348 --> 01:20:06,235
in other parts of the
world is about taking risk.

1650
01:20:06,235 --> 01:20:10,357
Because here, if you're an
entrepreneur, you go for it

1651
01:20:10,357 --> 01:20:12,540
but you fail, maybe
because the technology

1652
01:20:12,540 --> 01:20:15,450
wasn't such a good
idea as you hoped for,

1653
01:20:15,450 --> 01:20:19,740
you have a legal system,
an environmental--

1654
01:20:19,740 --> 01:20:23,430
and like social ecosystem, but
that you go from [INAUDIBLE].

1655
01:20:23,430 --> 01:20:25,828
I think in lots of other
places in the world,

1656
01:20:25,828 --> 01:20:28,612
you've got two red lines
on you, and you're a loser.

1657
01:20:28,612 --> 01:20:30,556
And the funny part is
you are hidden away,

1658
01:20:30,556 --> 01:20:31,850
because you're a loser.

1659
01:20:31,850 --> 01:20:35,769
So think there, there is a
lot to gain with technology,

1660
01:20:35,769 --> 01:20:37,310
but also [INAUDIBLE]
here in America,

1661
01:20:37,310 --> 01:20:39,710
that you can help us in
the rest of the world

1662
01:20:39,710 --> 01:20:42,110
to be more entrepreneurial,
and to try.

1663
01:20:42,110 --> 01:20:44,500
TOM KOCHAN: I think that's
a very important point,

1664
01:20:44,500 --> 01:20:46,300
I'm glad you made it.

1665
01:20:46,300 --> 01:20:49,110
In the online course,
there's also an essay

1666
01:20:49,110 --> 01:20:52,410
from one of our Sloan graduates
from a number of years ago,

1667
01:20:52,410 --> 01:20:54,660
John Jacques Degroof,
who's written

1668
01:20:54,660 --> 01:20:59,010
about European entrepreneurship,
and he works on this in Europe.

1669
01:20:59,010 --> 01:21:00,780
And he's lamenting
the fact that Europe

1670
01:21:00,780 --> 01:21:04,740
is so slow to have that kind
of infrastructure, risk taking,

1671
01:21:04,740 --> 01:21:07,230
and support for
entrepreneurs, and says we've

1672
01:21:07,230 --> 01:21:08,430
got to really change that.

1673
01:21:08,430 --> 01:21:10,860
So he's reinforcing
the important point

1674
01:21:10,860 --> 01:21:14,730
that you made, and I think
it's worth paying attention

1675
01:21:14,730 --> 01:21:18,700
to some of the strengths that we
have here, as we move forward.

1676
01:21:18,700 --> 01:21:23,040
Well, you went through this
very difficult, challenging,

1677
01:21:23,040 --> 01:21:26,430
and for many of you,
rewarding experience

1678
01:21:26,430 --> 01:21:30,120
of saying all right, enough
of this talk about it.

1679
01:21:30,120 --> 01:21:33,300
Enough of this reading about
it, enough of the watching

1680
01:21:33,300 --> 01:21:34,650
boring videos.

1681
01:21:34,650 --> 01:21:38,640
Let's try to negotiate the next
generation's social contract.

1682
01:21:38,640 --> 01:21:41,520
And so I applaud the energy
that you put into it,

1683
01:21:41,520 --> 01:21:45,630
those that participated, and
our colleagues here on campus

1684
01:21:45,630 --> 01:21:47,260
who helped to facilitate it.

1685
01:21:47,260 --> 01:21:50,220
And so I just want to share a
little bit of the settlements

1686
01:21:50,220 --> 01:21:54,900
and what you came away
from that exercise with.

1687
01:21:54,900 --> 01:21:57,420
It's a difficult exercise to do.

1688
01:21:57,420 --> 01:21:59,970
It's challenging because of
the differences in time zones

1689
01:21:59,970 --> 01:22:01,980
and so on, but I
think it's worth

1690
01:22:01,980 --> 01:22:04,740
doing, perhaps maybe in some
modified way, some of you

1691
01:22:04,740 --> 01:22:06,280
some good suggestions.

1692
01:22:06,280 --> 01:22:08,580
And look, we again had a
very broad distribution.

1693
01:22:08,580 --> 01:22:12,240
We had 44 countries
participating

1694
01:22:12,240 --> 01:22:15,480
in this experience,
a nice broad array.

1695
01:22:15,480 --> 01:22:17,760
And here's some
of the priorities

1696
01:22:17,760 --> 01:22:21,000
that you chose to focus on.

1697
01:22:21,000 --> 01:22:23,190
And there were a set
of, as you recall,

1698
01:22:23,190 --> 01:22:26,040
workforce development,
compensation fairness,

1699
01:22:26,040 --> 01:22:29,430
representation, organizational
performance, family

1700
01:22:29,430 --> 01:22:34,020
and community, and basically
not one of those dominated.

1701
01:22:34,020 --> 01:22:36,240
There was a good
distribution of priorities.

1702
01:22:36,240 --> 01:22:39,030
Everyone recognized the
importance of all of these.

1703
01:22:39,030 --> 01:22:42,540
There was clearly a higher
preference for workforce

1704
01:22:42,540 --> 01:22:44,160
development, and
a little bit more

1705
01:22:44,160 --> 01:22:47,210
for fairness and
nondiscrimination,

1706
01:22:47,210 --> 01:22:49,560
but the varied
interests said just what

1707
01:22:49,560 --> 01:22:51,780
you said early on in
the course about how

1708
01:22:51,780 --> 01:22:55,530
important multiple things
are to you in the workplace.

1709
01:22:55,530 --> 01:22:59,070
And so lifelong
learning dominated,

1710
01:22:59,070 --> 01:23:02,280
voice and representation,
the concern for productivity

1711
01:23:02,280 --> 01:23:06,120
and flexibility in
organizations dominated,

1712
01:23:06,120 --> 01:23:08,447
and work and family
came through as well.

1713
01:23:08,447 --> 01:23:09,780
And these are just some numbers.

1714
01:23:09,780 --> 01:23:11,196
I'm not going to
go through these,

1715
01:23:11,196 --> 01:23:14,340
they just reflect basically
what I said a minute ago,

1716
01:23:14,340 --> 01:23:16,920
because we're running a
little bit short on time.

1717
01:23:16,920 --> 01:23:20,310
But let's look at
what you agreed to.

1718
01:23:20,310 --> 01:23:24,516
Well, we had about
157 agreements.

1719
01:23:24,516 --> 01:23:26,640
Some of them were two party,
some were three party,

1720
01:23:26,640 --> 01:23:27,990
some were four party.

1721
01:23:27,990 --> 01:23:31,530
But across those clusters,
what you did is you

1722
01:23:31,530 --> 01:23:34,860
embodied the knowledge
of the high performance

1723
01:23:34,860 --> 01:23:35,790
work organizations.

1724
01:23:35,790 --> 01:23:38,610
You said we can't just
focus on training,

1725
01:23:38,610 --> 01:23:40,560
and many of your
agreements had training

1726
01:23:40,560 --> 01:23:42,600
combined with performance.

1727
01:23:42,600 --> 01:23:44,730
Training combined
with compensation.

1728
01:23:44,730 --> 01:23:48,660
Training combined with
making sure it was inclusive.

1729
01:23:48,660 --> 01:23:50,850
Some of the European
examples said

1730
01:23:50,850 --> 01:23:53,460
we're even going to find ways
to bring it to the platform

1731
01:23:53,460 --> 01:23:55,440
economy, and see if
we can't bring some

1732
01:23:55,440 --> 01:23:59,850
of our training, experience,
and our representative models

1733
01:23:59,850 --> 01:24:01,560
into that sphere.

1734
01:24:01,560 --> 01:24:04,440
And so a very strong emphasis
on lifelong learning,

1735
01:24:04,440 --> 01:24:07,530
on career planning, the
notion that people should

1736
01:24:07,530 --> 01:24:13,320
have representation, emphasis on
partnerships, strong commitment

1737
01:24:13,320 --> 01:24:16,110
to flexibility in
organizations, strong commitment

1738
01:24:16,110 --> 01:24:17,490
to profit sharing.

1739
01:24:17,490 --> 01:24:22,200
That came through in many
of these agreements as well.

1740
01:24:22,200 --> 01:24:25,980
And so I think you found ways
to reach across interest group

1741
01:24:25,980 --> 01:24:29,530
lines to find ways to
find common ground.

1742
01:24:29,530 --> 01:24:32,070
Now if you can do
it in this exercise,

1743
01:24:32,070 --> 01:24:36,510
then perhaps why can't we do
it in our broader societies?

1744
01:24:36,510 --> 01:24:39,300
I would urge everyone
to take the same issues

1745
01:24:39,300 --> 01:24:41,750
and move them to other settings.

1746
01:24:41,750 --> 01:24:43,770
So where did we end up?

1747
01:24:43,770 --> 01:24:46,050
Well the last thing
we asked is what

1748
01:24:46,050 --> 01:24:49,410
are the messages to the
next generation leaders, HR

1749
01:24:49,410 --> 01:24:53,220
professionals, labor educators,
and government officials?

1750
01:24:53,220 --> 01:24:56,190
And our friends at Cornell
helped us out on the HR side.

1751
01:24:56,190 --> 01:24:59,040
So my good friend Lee
Dyer, who led that class,

1752
01:24:59,040 --> 01:25:02,010
and his students provided
these next three slides

1753
01:25:02,010 --> 01:25:04,500
on what do they see,
because they are

1754
01:25:04,500 --> 01:25:05,910
moving into this profession.

1755
01:25:05,910 --> 01:25:10,170
So what is it that they see as
important for the HR profession

1756
01:25:10,170 --> 01:25:11,730
to attend to?

1757
01:25:11,730 --> 01:25:16,410
And they emphasize three themes,
globalization, technology,

1758
01:25:16,410 --> 01:25:18,780
and demographics, and
on the basis of that

1759
01:25:18,780 --> 01:25:22,590
came up with a set
of slides and points

1760
01:25:22,590 --> 01:25:25,140
on what it means
for recruitment.

1761
01:25:25,140 --> 01:25:26,910
That they have to
recognize that there

1762
01:25:26,910 --> 01:25:30,220
has to be a good fit
between the competencies,

1763
01:25:30,220 --> 01:25:34,390
the organization needs, and
what employees need to bring.

1764
01:25:34,390 --> 01:25:37,450
They need to develop new
sets of technical knowledge,

1765
01:25:37,450 --> 01:25:41,260
emphasizing the technical
and STEM skills,

1766
01:25:41,260 --> 01:25:43,900
but also combining that
with problem solving,

1767
01:25:43,900 --> 01:25:46,060
and being able to work
collaboratively in teams.

1768
01:25:46,060 --> 01:25:49,180
So they embody the
integration of technology

1769
01:25:49,180 --> 01:25:52,330
and organizational skills
and understanding the need

1770
01:25:52,330 --> 01:25:54,790
to be responsive to
people's differences

1771
01:25:54,790 --> 01:25:56,440
in culture and backgrounds.

1772
01:25:56,440 --> 01:25:58,300
So I think on the
recruitment side,

1773
01:25:58,300 --> 01:26:01,630
that's a really
powerful set of points.

1774
01:26:01,630 --> 01:26:04,450
On the globalization side,
they saw the positives

1775
01:26:04,450 --> 01:26:05,560
and the negatives.

1776
01:26:05,560 --> 01:26:08,470
That yes, globalization
creates an opportunity

1777
01:26:08,470 --> 01:26:11,170
to compete for talent
all across the world,

1778
01:26:11,170 --> 01:26:13,870
and at the same time,
provides more diversity

1779
01:26:13,870 --> 01:26:15,760
that we need to
manage effectively,

1780
01:26:15,760 --> 01:26:19,235
but it also provides
some low wage havens,

1781
01:26:19,235 --> 01:26:21,860
and that's going to put pressure
on our compensation structure.

1782
01:26:21,860 --> 01:26:24,880
So they were quite realistic
in having to manage

1783
01:26:24,880 --> 01:26:27,260
the tensions of globalization.

1784
01:26:27,260 --> 01:26:30,370
And on technology,
it came back again

1785
01:26:30,370 --> 01:26:33,610
to emphasize the complimentary
nature that technology can

1786
01:26:33,610 --> 01:26:36,000
play, if they are proactive.

1787
01:26:36,000 --> 01:26:38,530
And if there's one message
to the HR community, in fact,

1788
01:26:38,530 --> 01:26:42,280
I delivered it this morning
to a group of HR professionals

1789
01:26:42,280 --> 01:26:44,530
in talking about
these issues, is

1790
01:26:44,530 --> 01:26:47,600
that they have to get out
in front of technology.

1791
01:26:47,600 --> 01:26:50,160
They have to be part of
the technology designers

1792
01:26:50,160 --> 01:26:54,980
and enablers to make work really
complements to technology.

1793
01:26:54,980 --> 01:26:57,160
And I think that's an
opportunity for the HR

1794
01:26:57,160 --> 01:26:58,060
profession.

1795
01:26:58,060 --> 01:27:01,060
And then they commented
as well on demographics,

1796
01:27:01,060 --> 01:27:02,770
along the lines that
we've talked about

1797
01:27:02,770 --> 01:27:06,280
for mentoring the next
generation workforce and so on.

1798
01:27:06,280 --> 01:27:09,970
So thank you, to our colleagues
at Cornell for those inputs.

1799
01:27:09,970 --> 01:27:13,720
But you also raised in your
own conversations issues

1800
01:27:13,720 --> 01:27:16,360
around implications
for worker advocates,

1801
01:27:16,360 --> 01:27:19,510
for needing to listen
to the workforce,

1802
01:27:19,510 --> 01:27:22,600
to learn from the workforce,
to build the new organizations,

1803
01:27:22,600 --> 01:27:26,050
not to be just captivated by
the way in which we did things

1804
01:27:26,050 --> 01:27:26,950
in the past.

1805
01:27:26,950 --> 01:27:28,840
To build on the
strengths of the past,

1806
01:27:28,840 --> 01:27:31,570
but to look to the
future, and particularly

1807
01:27:31,570 --> 01:27:34,330
to use information
technologies as building

1808
01:27:34,330 --> 01:27:36,100
new sources of power.

1809
01:27:36,100 --> 01:27:38,410
And for those of us in
the education community,

1810
01:27:38,410 --> 01:27:41,110
emphasizing we've got to
be more creative in using

1811
01:27:41,110 --> 01:27:46,450
all this technology, online
learning, and other mechanisms

1812
01:27:46,450 --> 01:27:49,990
to provide good guidance for
the next generation workforce,

1813
01:27:49,990 --> 01:27:52,480
and to provide
opportunities for continuing

1814
01:27:52,480 --> 01:27:54,280
to learn as we go along.

1815
01:27:54,280 --> 01:27:57,520
And then the toughest
nut, obviously,

1816
01:27:57,520 --> 01:28:00,880
is breaking the gridlock that
we find in the United States

1817
01:28:00,880 --> 01:28:04,030
and in some other countries
over national politics.

1818
01:28:04,030 --> 01:28:06,610
And here we emphasize
right from the beginning

1819
01:28:06,610 --> 01:28:10,450
that the lessons always come
from the local level first.

1820
01:28:10,450 --> 01:28:12,610
And so if we can build
on the innovations that

1821
01:28:12,610 --> 01:28:15,910
are happening that we've talked
about throughout this course

1822
01:28:15,910 --> 01:28:18,010
at the local level,
then maybe someday

1823
01:28:18,010 --> 01:28:22,780
soon our national leaders will
wake up and say maybe it's time

1824
01:28:22,780 --> 01:28:25,630
for us to start
working together.

1825
01:28:25,630 --> 01:28:28,810
So our bottom line message to
the next generation workforce,

1826
01:28:28,810 --> 01:28:30,667
to all of us, and
to all of you, I

1827
01:28:30,667 --> 01:28:32,500
guess I'm not the next
generation workforce,

1828
01:28:32,500 --> 01:28:36,190
but you are the next generation
workforce, is education.

1829
01:28:36,190 --> 01:28:40,870
Preschool, formal schooling,
and lifelong learning.

1830
01:28:40,870 --> 01:28:43,480
Education throughout
one's life, making

1831
01:28:43,480 --> 01:28:45,790
sure you explore,
but don't become

1832
01:28:45,790 --> 01:28:50,470
a victim of too tight a career
plan, but take opportunities

1833
01:28:50,470 --> 01:28:51,850
when they are available.

1834
01:28:51,850 --> 01:28:55,900
Keep those skills current, work
together, keep your resume up

1835
01:28:55,900 --> 01:28:58,150
to date, and one foot in
the external labor market

1836
01:28:58,150 --> 01:29:01,990
to use that as a source of
power, and get involved.

1837
01:29:01,990 --> 01:29:04,990
And together, if there's
a bottom line here,

1838
01:29:04,990 --> 01:29:07,540
we can shape the future of work.

1839
01:29:07,540 --> 01:29:09,790
So where are we going?

1840
01:29:09,790 --> 01:29:12,430
Once again, we emphasize
the high road importance,

1841
01:29:12,430 --> 01:29:16,270
rebuild bargaining power, get
the parties working together,

1842
01:29:16,270 --> 01:29:18,460
and then let me give
you the real bottom line

1843
01:29:18,460 --> 01:29:21,730
from two students from
our discussion board.

1844
01:29:21,730 --> 01:29:24,809
And I'll just read these
and end on this note.

1845
01:29:24,809 --> 01:29:26,350
And one said, "Taking
this course has

1846
01:29:26,350 --> 01:29:28,630
given me hope that the
future of work and the path I

1847
01:29:28,630 --> 01:29:30,610
wish to take after college.

1848
01:29:30,610 --> 01:29:33,130
The future of work
depends on the mindset

1849
01:29:33,130 --> 01:29:34,510
of individual workers."

1850
01:29:34,510 --> 01:29:35,920
Of all of you.

1851
01:29:35,920 --> 01:29:38,860
"If the workers are hardworking
and have confidence,

1852
01:29:38,860 --> 01:29:41,360
the future of work will
toil in their favor."

1853
01:29:41,360 --> 01:29:43,540
I think that's a
beautiful phrase

1854
01:29:43,540 --> 01:29:46,600
and I appreciate the
author's offering it.

1855
01:29:46,600 --> 01:29:50,440
And then one that
came just today.

1856
01:29:50,440 --> 01:29:54,040
"I came away feeling a personal
'call to action' to help shape

1857
01:29:54,040 --> 01:29:55,620
the Future of Work myself--

1858
01:29:55,620 --> 01:29:58,790
that indeed, the Future
of Work is up to us.

1859
01:29:58,790 --> 01:30:00,940
We have do-- we have--

1860
01:30:00,940 --> 01:30:03,460
we do have the power to
shape the Future of Work

1861
01:30:03,460 --> 01:30:06,560
by bringing together
all the stakeholders."

1862
01:30:06,560 --> 01:30:09,220
These are the bottom line
messages of this course.

1863
01:30:09,220 --> 01:30:12,040
This is what we all put
all this energy, all of you

1864
01:30:12,040 --> 01:30:15,130
put all the energy you put into
it, and the online version,

1865
01:30:15,130 --> 01:30:17,840
and our friends here on campus.

1866
01:30:17,840 --> 01:30:21,520
And I think together we can
shape the future of work,

1867
01:30:21,520 --> 01:30:24,290
so we just need to move forward.

1868
01:30:24,290 --> 01:30:29,270
We will put all of this material
online, it will stay online.

1869
01:30:29,270 --> 01:30:33,470
And you'll be encouraged to
come back and use the material,

1870
01:30:33,470 --> 01:30:36,510
maybe use it in teaching
others in the future.

1871
01:30:36,510 --> 01:30:40,490
So it'll stay on the platform
for anyone who wants to use it,

1872
01:30:40,490 --> 01:30:44,510
or anyone who wants to join
and use it in the future.

1873
01:30:44,510 --> 01:30:47,720
We think that
together, if we use

1874
01:30:47,720 --> 01:30:53,360
what we know about how work has
been structured in the past,

1875
01:30:53,360 --> 01:30:58,040
on what worked in the past,
what stopped working in more

1876
01:30:58,040 --> 01:31:01,610
recent years, why
the world of work

1877
01:31:01,610 --> 01:31:04,550
has to change to keep up
with changes in technology

1878
01:31:04,550 --> 01:31:07,700
and keep up with the people
who are doing the work,

1879
01:31:07,700 --> 01:31:08,750
we can make a difference.

1880
01:31:08,750 --> 01:31:14,600
So I want to thank you all
for the many hours of effort

1881
01:31:14,600 --> 01:31:16,160
that you put into this course.

1882
01:31:16,160 --> 01:31:19,580
I want to thank you for taking
an interest in improving

1883
01:31:19,580 --> 01:31:22,540
the future of work, and I
hope that together we'll

1884
01:31:22,540 --> 01:31:24,150
all make a difference.

1885
01:31:24,150 --> 01:31:25,070
Thank you very much.

1886
01:31:25,070 --> 01:31:27,220
AUDIENCE: [APPLAUSE]