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Senin, 29 Februari 2016

INSTANT MBA: Donald Trump, Marissa Mayer, and other big bosses are sleeping all wrong, according to a new McKinsey report

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February 29, 2016

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We're often in awe of the highly successful people who say they only get a few hours of sleep a night, from Martha Stewart and Donald Trump, who clock around four hours, to Marissa Mayer and President Barack Obama, who get closer to six.

We might conclude that somewhere within their sleep deprivation lies the key to success.

But a new report in Harvard Business Review by McKinsey researchers suggests that these people are successful in spite of their sleep habits.

According to the report, sleep deprivation negatively affects four key leadership behaviors and, consequently, can hurt a business's financial performance:

1. Being focused on results

The report points to research that shows how sleep deprivation is comparable to intoxication in the way it impairs cognitive abilities.

The individual performance on a range of tasks of people who are awake for 17 to 19 hours, for example, is equivalent to that of a person with a blood alcohol level of 0.05%, the legal drinking limit in many countries.

Beyond 20 hours of being awake, the same person's performance is comparable to someone with a blood alcohol level of 0.1%, which meets the legal definition of drunk in the US, the report says.

To be results oriented, the report suggests, you need to be able to focus, avoid distractions, and see the bigger picture, something that would be very difficult to do if you were essentially drunk on the job.

2. Solving problems effectively

The McKinsey report points to other studies, which find that eight hours of sleep leads to new insights, afternoon naps help creative problem solving, and REM sleep is directly linked to creative thinking, all of which are key in effectively solving problems.

3. Seeking out different perspectives

Sleep affects all three stages of the learning process: before learning, it helps your brain encode new information; after learning, it helps your brain consolidate information and form new connections; and before remembering, it helps to retrieve information from memory, researchers say.

"These processes are critical to the ability to seek, encode, and consolidate different perspectives," the researchers write.

According to the researchers, sleep has also been shown to improve decision making in situations  that involve weighing different options and avoiding tunnel vision.

"Science supports the commonly heard advice that rather than making an important decision or sending a sensitive email late at night, you should sleep on it," the researchers write.

4. Supporting others

The report points to more research that suggests sleep deprivation negatively affects your emotional state.

When you lack sleep, your brain is more likely to misinterpret facial or vocal cues and overreact to emotional events. You're more likely to express your feelings in a more negative manner and tone of voice. You're less likely to fully trust someone else. And when you're the boss, your employees are less likely to feel engaged with their work.

It's hard to support others emotionally when you're struggling with your own emotions.

All four of these behaviors add up to high-quality executive teams, and as a result, are a strong predictor of a robust bottom line, the McKinsey researchers say. When they are compromised, leaders and their companies suffer.

SEE ALSO: 12 things successful people do right before bed

DON'T MISS: Why you're probably getting more sleep than you think

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The US economy is getting better, but US workers are getting worse

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The US economy is getting better, but US workers are getting worse

While the headline numbers for the labor market are improving, there is an underlying trend that paints a much more ominous picture of the American workforce.

"More educated or experienced workers will likely create more output for each hour they work than less educated or experienced workers," said JP Morgan economist Michael Feroli. "As the workforce becomes more educated over time we should expect to see this growth in 'labor quality' contribute to overall productivity growth."

In a note to clients on Friday, Feroli noted that the contribution to GDP from labor quality has been significantly deteriorating since 2005.

Between 1980 and 2005, Feroli said, labor quality growth — improvements in the education and experience level of workers — contributed one-third of a percentage point to GDP annually. This year that contribution is projected to drop to nearly 0%, and might stay that way.

While this may not seem like a major fall, Feroli highlights why even a small drop matters.

"In recent years, however, that contribution has fallen to less than 0.1%-pt per year," he said. "That may not sound like a big deal, but with trend growth already as low as it is every basis point counts."



There are a few reasons this is happening. Labor quality is a function of experience and education. Feroli noted that experience levels have been damaged by the aftermath of the Great Recession: Marginal workers who were forced into unemployment or out of the labor market entirely may have seen their skills atrophy. Now that they're coming back to the labor force as the economy improves, their time out of employment lowers the average number of years worked among all workers.

Also, baby boomers have skewed the workforce to be older and more experienced. As they retire and are replaced by younger workers, this structurally shifts overall experience lower. This doesn't mean millennials are any worse as workers, however.



"Note that we are not making a subjective judgment about the work ethics of Millennials, Baby Boomers, Gen Xers, etc," wrote Feroli. "Rather, the earlier-mentioned insight of equating of wages with marginal productivity indicates that workers in their 40s and early 50s are, on average, more productive than at other stages of their life cycle."

On the education side of things, a temporary bump in college enrollment has tapered off. Here's Feroli (emphasis added):

"Second, after a brief glimmer of hope early in the decade, college enrollment rates have slumped back to the levels that have prevailed since around the mid-1990s. College enrollment rates are well known to be countercyclical: rising during recessions as the opportunity cost of being out of the labor force is at its lowest. With the benefit of hindsight it appears the rise in college enrollment during the recession was simply a cyclical phenomenon, and the formal accumulation of skills appears to be returning to pre-recession levels."

So, a workforce that is getting less experienced on average combined with a shrinking college enrollment rate has resulted in the worst growth rate in the quality of American workers since the late 1970s. Read »

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This exclusive report reveals the ABCs of the IoT

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February 29, 2016
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