In The Unaccountability Machine: Why Big Systems Make Terrible Decisions and How the World Lost Its Mind, Dan Davies examines why companies and governments systematically generate outcomes that everyone involved claims they do not want.

Davies is an economist, writer, and former investment banker known for his insightful analysis of finance, corporate governance, and decision-making systems. He has written extensively on topics such as financial fraud, accountability in organizations, and the intersections of economics and management. His latest book combines cybernetics theory and real-world examples to explain how decisions are increasingly made not by accountable individuals, but by systems.

In his conversation with Martin Reeves, chairman of the BCG Henderson Institute, Davies describes the pathologies of failing decision-making systems, explains why we tend not to learn from past mistakes, and outlines why he worries that AI might not improve our capability to make decisions unless we carefully redesign decision systems to tap its potential.

Key topics discussed: 

01:03 | Unintended outcomes generated by decision-making systems

07:08 | What we can learn from the theory of cybernetics

09:49 | Pathologies of failing information systems

11:49 | Why we make the same mistakes again and again

14:41 | How AI may impact decision-making

16:39 | Steps toward improving our decision-making systems

Additional inspirations from Dan Davies:

• The Brompton: Engineering for Change, co-authored by William Butler-Adams (The Experiment, 2022)
• Lying for Money: How Legendary Frauds Reveal the Workings of the World (Scribner, 2021)
• Back of Mind (Substack)

In AI Snake Oil: What AI Can Do, What It Can’t, and How to Tell the Difference, Sayash Kapoor and his co-author Arvind Narayanan provide an essential understanding of how AI works and why some applications remain fundamentally beyond its capabilities.

Kapoor was included in TIME’s inaugural list of the 100 most influential people in AI. As a researcher at Princeton University’s Center for Information Technology Policy, he examines the societal impacts of AI, with a focus on reproducibility, transparency, and accountability in AI systems. In his new book, he cuts through the hype to help readers discriminate between legitimate and bogus claims for AI technologies and applications.

In his conversation with Martin Reeves, chair of the BCG Henderson Institute, Kapoor discusses historical patterns of technology hype, differentiates between the powers and limitations of predictive versus generative AI, and outlines how managers can balance healthy skepticism with embracing the potential of new technologies.

Key topics discussed: 

01:05 | Examples of AI “snake oil”

04:42 | Historical patterns of technology hypeand how AI is different

07:26 | Capabilities and exaggerations of predictive AI

11:42 | Powers and limitations of generative AI

17:11 | Drivers of inflated expectations

20:18 | Implications for regulation

23:26 | How managers can balance scepticism and embracing new tech

24:58 | Future of AI research

Additional inspirations from Sayash Kapoor:

• AI Snake Oil (Substack)
• A Checklist of Eighteen Pitfalls in AI Journalism (UNESCO article, 2022)

In The Age of Outrage: How to Lead in a Polarized World, Karthik Ramanna provides a framework for leaders to navigate outrage—the intense, polarized reactions to perceived social injustices, political stances, and misaligned corporate actions—by addressing root causes, engaging stakeholders, and building resilience.

Ramanna, a professor of Business and Public Policy at the University of Oxford’s Blavatnik School of Government, specializes in business-government relations and corporate accountability.

In conversation with Martin Reeves, chairman of the BCG Henderson Institute, Ramanna discusses the three causes of outrage (fear of the future, past injustices, and ideologies of othering), common instincts that mislead leaders, and his five-step framework for navigating the age of outrage.

Key topics discussed: 

01:08 | Managing in the age of outrage

4:21 | Three causes of outrage: fear of the future, past injustices, and ideologies of othering

5:48 | The five-step framework for navigating the age of outrage

19:04 | Instincts which mislead companies into taking the wrong stance or making the wrong analysis

20:45 | The impact of “temperate leadership” and leadership attributes

25:22 | Key factors impacting the age of outrage

Additional inspirations from Karthik Ramanna:

• Political Standards: Corporate Interest, Ideology, and Leadership in the Shaping of Accounting Rules for the Market Economy (The University of Chicago Press, 2015)

In The Corporate Life Cycle: Business, Investment, and Management Implications, Aswath Damodaran presents the corporate life cycle as a universal key for demystifying business finance, strategy and company valuation.

Damodaran is a professor of Finance at the Stern School of Business at New York University. Known as “the Dean of Valuation,” he has published extensively in academic journals, written many books for students and practitioners, and remains the world’s foremost expert on the subject of corporate valuation. In his latest book, he outlines how corporations age, describes the characteristics of each stage of their life cycle, and discusses implications for managers and investors.

In his conversation with Martin Reeves, chairman of the BCG Henderson Institute, Damodaran outlines how to determine where in the life cycle your company is at, what leadership skills and behaviors are required at each stage, and how the distribution of life cycle stages has changed over recent decades.

Key topics discussed: 

00:56 | The stages of the corporate life cycle

02:21 | How to determine your stage in the life cycle

03:36 | The importance of acting your age

10:06 | Balancing capital allocation across the portfolio

11:27 | Leadership skills for different stages in the life cycle

16:56 | Creating value at any stage of the life cycle

20:21 | How the distribution of life cycle “shapes” is changing

22:58 | The art of communicating complex ideas in simple ways

Additional inspirations from Aswath Damodaran:

• Applied Corporate Finance (Wiley, 2014)
• Investment Valuation: Tools and Techniques for Determining the Value of Any Asset (Wiley, 2012)
• Musings on Markets  (Blog)

In Big Bet Leadership: Your Transformation Playbook for Winning in the Hyper-Digital Era, John Rossman provides a playbook for becoming an innovation and transformation winner.

Rossman was previously an executive at Amazon, responsible for launching their Marketplace business. Now, he is the managing partner of Rossman Partners, advising leading enterprises on large-scale change, and author of the best-selling books The Amazon Way and Think Like Amazon. In his latest book, he examines why high-stakes change efforts fail and how to frame and manage them more effectively. Companies need to think in terms of “big bets,” which will require executives to adopt the right mindset, tactical steps, and leadership habits.

In his conversation with Martin Reeves, chairman of the BCG Henderson Institute, Rossman explains why we need to work in prose, not in PowerPoint; how to think big, while betting small; and how to make the critical decisions to “continue, pivot, or kill” a project.

Key topics discussed: 

01:19 | What makes a “big bet”

04:10 | Thinking in outcomes

06:49 | Prose over PowerPoint

12:51 | Thinking big, but betting small

16:21 | Thinking in systems

19:21 | How to decide to “continue, pivot, or kill” – and avoid confusion

22:45 | Where “big bet” thinking can be applied

Additional inspirations from John Rossman:

• The Amazon Way: Amazon's 14 Leadership Principles (Clyde Hill Publishing, 2021)
• Think Like Amazon: 50 1/2 Ideas to Become a Digital Leader (McGraw Hill, 2019)

In Critical Systems Thinking: A Practitioner's Guide, Michael C. Jackson emphasizes the need for integrating diverse systems methodologies to navigate complexity and uncertainty.

Jackson, an emeritus professor of management systems and former dean of the University of Hull Business School, has also served as president of several prominent systems thinking organizations, including the UK Systems Society, the International Federation for Systems Research, and the International Society for the Systems Sciences. His most significant contribution to the field is his development of Critical Systems Thinking (CST), which emphasizes the combined use of different systems approaches to deal with the complexity that leaders face.

In a conversation with Martin Reeves, Chairman of the BCG Henderson Institute, Jackson introduces the EPIC process (Explore, Produce, Intervene, and Check), a four-stage, sequential framework to help leaders deploy systems methodologies. Their discussion includes how different systems perspectives can be combined, how theory informs interventions, how organizations are embracing system thinking, barriers to adoption, and the relevance of systems thinking to today’s business environment.

Key topics discussed:

2:40 | What systems thinking can offer the traditional MBA toolkit

5:20 | Systems thinking in contemporary business scenarios

6:37 | The EPIC process: Explore, Produce, Intervene, and Check

16:52 | Characteristic tools of systems thinking

17:34 | The five lenses of systems thinking

21:54 | Advancing the agenda of systems thinking

Additional inspirations from Michael C. Jackson:

• Systems Thinking: Creative Holism for Managers (John Wiley & Sons, 2023)
• Systems Approaches to Management (Springer, 2000)
• Critical Systems Thinking and the Management of Complexity (Wiley, 2019)
• Creative Problem Solving: Total Systems Intervention (Wiley, 1991)

There is no shortage of technologists touting the promise of AI, but the frontier of AI fervor is a noted philosopher who thinks the economy could double every few months—and that space colonization by self-replicating machines may not be hundreds of years away.

Enter Nick Bostrom, who previously authored the 2014 bestseller Superintelligence about the dangers of AI, and now considers what can go right with AI in his new book Deep Utopia. Bostrom was formerly a professor at Oxford University, and currently principal researcher of the Macrostrategy Research Initiative.

In this episode, he joins Philipp Carlsson-Szlezak, Chief Economist of BCG, who is skeptical of AI narratives and thinks technology’s economic impact has long-lagged expectations. They discuss different takes on the likely size and speed of AI’s impact on the macroeconomy, and why they disagree about the prospect of tech-driven mass unemployment. Bostrom also explains key themes from Deep Utopia, including stages of utopia, “shallow and deep” redundancy, implications for policy, as well as the unique rhetorical style of the book.

Key topics discussed: 

01:45 | Is tech jumping ahead or behind schedule?

03:24 | Is Deep Utopia really a book about AI or about philosophy?

04:39 | Technological unemployment: Real or fallacious

10:54 | Taxonomy of utopia

13:59 | What about public policy, such as UBI?

15:47 | Concept of shallow and deep redundancy

18:50 | Concept of “interestingness”

21:07 | Rhetorical style of book

23:29 | AI regulation and policy

Additional inspirations from Nick Bostrom:

• Superintelligence: Paths, Dangers, Strategies (Oxford University Press, 2014)

In The Great Disconnect: Hopes and Fears After the Excess of Globalization, Marco Magnani explores the factors that are driving the crisis of globalization we are currently experiencing.

Magnani teaches international economics at LUISS University in Rome and Università Cattolica in Milan. Previously, he was a senior research fellow at the Harvard Kennedy School of Government and worked in investment banking for two decades. In his new book, he discusses the history of internationalization and the benefits that modern globalization has brought—as well as the drawbacks that have become increasingly apparent.

Together with Martin Reeves, Chairman of the BCG Henderson Institute, Magnani discusses the causes of the increasing global disconnect—beyond U.S.-China tensions. He also lays out four scenarios for how globalization may play out, as well as practical tips for how executives can prepare for these different futures in a time of deep uncertainty.

Key topics discussed: 

01:19 | The great disconnect

04:13 | The benefits and downsides of modern globalization

07:21 | Future scenarios for globalization

13:28 | What the history of internationalization reveals about where we are heading

15:25 | Implications of AI for globalization

16:33 | How globalization or de-globalization might play out in practice

21:10 | Implications for businesses

Additional inspirations from Marco Magnani:

• Making the Global Economy Work for Everyone: Lessons of Sustainability from the Tech Revolution and the Pandemic (Palgrave Macmillan, 2022)
• Creating Economic Growth: Lessons for Europe (Palgrave Macmillan, 2014)

In Assembling Tomorrow: A Guide to Designing a Thriving Future, Carissa Carter and Scott Doorley explore the intangible forces that make it hard to anticipate how new technologies create impact and what we can do about this challenge during the design process for new applications.

Carter is the Director of Teaching and Learning at the Hasso Plattner Institute of Design at Stanford – also known as the Stanford d.school. Doorley is a Creative Director at the d.school, having previously worked in the film industry for more than a decade.

Together with Martin Reeves, Chairman of the BCG Henderson Institute, they discuss how designers, technologists, and corporate leaders can more effectively harness transformative technologies like AI and artificial biology by giving more weight to non-technical factors like emotions, perceptions, imagination, and serendipity.

Key topics discussed: 

01:23 | The problem of runaway design

03:16 | The forces that make technology impact unpredictable

09:17 | The role of emotions in design

11:59 | Why we are not thinking about unpredictability in designing technologies

15:17 | Potential solutions to new design problems

22:22 | Applying these solutions to AI

24:20 | Implications for businesses

Additional inspirations from Scott Doorley: 

• Make Space: How to Set the Stage for Creative Collaboration (Wiley, 2011)

Additional inspirations from Carissa Carter:

• The Secret Language of Maps: How to Tell Visual Stories with Data (Ten Speed Press, 2022)

In How to Become Famous: Lost Einsteins, Forgotten Superstars, and How the Beatles Came to Be, Cass Sunstein reveals why some individuals become celebrities—and others don’t.

Sunstein has long been at the forefront of behavioral economics. He is the Robert Walmsley University Professor at Harvard Law School and served as the administrator of the White House Office of Information and Regulatory Affairs in the Obama administration. He has authored numerous best sellers, such as Nudge and The World According to Star Wars. In his new book, he explores the roles played by skill, luck, and social processes in the achievement of fame and success—based on recent research on informational cascades, reputation cascades, network effects, and group polarization.

Together with Martin Reeves, Chairman of the BCG Henderson Institute, Sunstein discusses how a better understanding of these mechanisms can help businesses make better decisions in marketing, talent management, and innovation - and why the greatest composer of all time may not be J S Bach, but rather Taylor Swift.

Key topics discussed: 

03:18 | How to prove whether or not fame is driven by merit

06:08 | The importance of quality and skill to fame

09:33 | Enduring vs. transient fame

11:36 | The greatest composers of all time: Bach vs. Taylor Swift

14:44 | Social factors driving fame

19:54 | The role of group polarization and network effects

28:48 | Implications for businesses: Marketing, talent, innovation

33:19 | The art of manipulating information cascades

Additional inspirations from Cass Sunstein:

• Thinkers & Ideas: Look Again with Cass Sunstein
• Look Again: The Power of Noticing What Was Always There; with Tali Sharot (Atria/One Signal Publishers, 2024)
• Nudge; with Richard Thaler (Penguin Books, 2021)
• Noise: A Flaw in Human Judgment; with Daniel Kahneman, and Olivier Sibony (Random House Audio, 2021)
• The World According to Star Wars (Dey Street Books, 2016)