Accelerating leadership performance at the top: Lessons from the Bank of America's executive on-boarding process

This article examines the critical role that on-boarding processes play in the successful development of executive leadership talent. It is based on an in-depth case analysis of one organization's sophisticated on-boarding intervention. Specifically, we explore the potential of these interventions both to pre-empt leadership failures and to accelerate the knowledge and relationships necessary to step into an executive role. Lessons are provided on designing on-boarding interventions for senior leaders.     

Lebesgue measure and social choice trade-offs

Summary An Arrovian social choice rule is a social welfare function satisfying independence of irrelevant alternatives and transitivity of social preference. Assume a measurable outcome spaceX with its (Lebesgue) measure normalized to unity. For any Arrovian rule and any fractiont, either some individual dictates over a subset ofX of measuret or more, or at least a fraction 1–t of the pairs of distinct alternatives have their social ordering fixed independently of individual preferences. Also, for any positive integer (less than the total number of individuals), there is some subsetH of society consisting of all but persons such that the fraction of outcome pairs (x, y) that are social ranked without consulting the preferences of anyone inH, whenever no individual is indifferent betweenx andy, is at least 1–1/4.We are grateful to Roy Mathias and Daniel Waterman for help with some technical matters, and to chairman Jim Follain and the Syracuse University Economics Department for financing the exchange that launched this project. Campbell's research was funded by National Science Foundation grants, SES 9007953 and SES 9209039.     

Banking lessons from the past: The 1938 regulatory Agreement interpreted

We show that the interagency 1938 Uniform Agreement on Bank Supervisory Procedures set the precedent for dynamically varying supervisory standards to conform to national macroeconomic policies and political agendas. Our evidence indicates that the conferences leading to the Agreement were motivated and dominated by the Federal Reserve. Contrary to the goals of the other banking agencies, the Fed sought greater leniency in bank examination in order to stimulate bank credit creation. This precedent for softening examination standards was paralleled in 1991–1992 when the administration and regulatory agencies attempted to offset a proclaimed credit crunch by subordinating bank examinations to the perceived need for more bank credit. The implied risk of trading off bank safety for short-lived economic policies merits more open national debate.Our earlier work on this topic was partially supported by the National Center on Financial Studies, University of California, Berkeley.     

Controlling for the Impact of Variable Liquidity in Commercial Real Estate Price Indices

Liquidity in private asset markets is notoriously variable over time. Therefore, indices of changes in market value that are based on asset transaction prices will systematically reflect intertemporal differences in the ease of selling a property. We define and develop a concept of "constant-liquidity value" in the context of a model that is characterized by pro-cyclical volume of trading. We then present an econometric model that allows for estimation of both a standard transaction-based price index and a constant-liquidity index. Our application to the NCREIF database reveals that, in the case of institutional commercial real estate investment, constant-liquidity values tend to lead transaction-based and appraisal-based indices in time, and also to display greater volatility and cycle amplitude. The differences can be significant for strategic investment policy viewed from a mean-variance portfolio optimization perspective.     

Locally Greater Vulnerability to Background Risk

Willingness to take on risk is influenced by the presence of fair and unfair background risks for decision makers who are risk vulnerable as defined by Gollier and Pratt [1996], for these decision makers are more risk averse when they possess such an uninsurable background risk. We present an alternative derivation of the index of local vulnerability based on Diamond and Stiglitz [1974] compensated increases in risk, such that risk aversion increases with the introduction of any small fair background risk if and only if the index of local vulnerability is positive. We establish that the increase in risk aversion is greater for those who are more vulnerable as measured by the index of local vulnerability.     

Do converters facilitate the transition to a new incompatible technology? A dynamic analysis of converters

This paper analyzes the process of transition in standards between incompatible technologies when converters are available. Contrary to a common presumption that converters facilitate the transition from an old technology to an otherwise incompatible new technology, I find circumstances in which the possibility of transition is blockaded by the existence of converters. In the welfare analysis of converters, a distinction is made between ex ante and ex post efficiency effects. Finally, I also analyze the equilibrium behavior in the provision of converters and compare it to the socially optimal outcome.     

The Announcement Effect of an Airport Expansion on Housing Prices

The purpose of this study is to examine the influence of the announcement of a new airport hub on housing prices near the airport. While numerous studies of airport noise have found that high noise levels reduce property values, few have been able to measure the announcement effect on values. The results indicate that after controlling to extraneous influences, housing property prices in a 2.5 mile band from the Greensboro/High Point/Winston Salem metropolitan airport declined approximately 9.2% in the post-announcement period. In the next 1.5-mile band, house prices declined approximately 5.7% in the post-announcement period.     

Training professionals' usage and understanding of Kirkpatrick's Level 3 and Level 4 evaluations

Training professionals have long acknowledged the necessity of conducting behavior‐based (Level 3) and results‐based (Level 4) evaluations, yet organizations do not frequently conduct such evaluations. This research examined training professionals' perceptions of the utility of Level 3 and Level 4 evaluations and the factors that facilitate or obstruct their attempts to perform them. The research was conducted using Brinkerhoff's Success Case Method and Gilbert's Behavior Engineering Model as its frameworks. The three key factors identified by study participants as having an impact upon their ability to conduct Level 3 and Level 4 evaluations were the availability of resources such as time and personnel, managerial support (organizational) and expertise in evaluative methodology (individual). The research findings indicated a need to further explore how training professionals interpret Level 3 and Level 4 and how they can better develop their evaluative expertise, which in turn may increase effectiveness in gaining organizational support for evaluation efforts.