Thinkers & Ideas BCG Henderson Institute

In Making Sense of Chaos: A better economics for a better world, J. Doyne Farmer challenges traditional economic models, which rely on simplistic assumptions and fail to provide accurate predictions.
Farmer, a complex systems scientist at the University of Oxford and the Santa Fe Institute, argues that with technological advances in data science and computing, we are now able to apply complex systems thinking to build models that more accurately capture reality and enable us to make better predictions about the economy.
Together with Martin Reeves, Chairman of the BCG Henderson Institute, Farmer discusses the limitations of standard models of economics as well as the consequences of such limitations. He proposes an alternative based on complex systems thinking and agent-based modeling—and describes how it can be applied in various fields, including business.
Key topics discussed: 
01:42 | Limitations of the standard model of economics
04:44 | How complex systems thinking works
09:01 | Consequences of using inadequate economic models
12:44 | Agent-based modeling as a powerful alternative
19:02 | Leveraging alternative modeling techniques in business
24:59 | How CEOs can start embracing complexity thinking


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In Co-Intelligence: Living and Working with AI, Ethan Mollick explains how to engage with AI as a co-worker, a co-teacher, and a coach.
Mollick is a professor of management at the Wharton School of Business at the University of Pennsylvania, where he studies and teaches innovation and entrepreneurship. In his new book, he discusses the profound impacts AI will have on business and education, using many examples of AI in action. His book challenges us to utilize AI’s enormous power without losing our human identity, to learn from it without being misled, and to harness its gifts to create a better human future.
Together with Martin Reeves, chairman of the BCG Henderson Institute, Mollick discusses how to train people to use AI effectively, whether AI will substitute or complement workers, and how businesses can move beyond a short-term efficiency gains perspective to generate value with AI in the long term.
 Key topics discussed: 
02:27 | The four rules for living with AI
09:04 | Educating people to use AI effectively
10:47 | What experiments reveal about where AI adds (and destroys) value at work
12:45 | Substituting (vs. complementing) workers with AI
14:14 | Generating value with AI in the long-term
17:10 | Bringing about the social change in organizations alongside the tech change
20:48 | AI regulation
27:18 | How AI will transform education
Additional inspirations from Ethan Mollick:
One Useful Thing (Substack)The Unicorn’s Shadow: Combating the Dangerous Myths That Hold Back Startups, Founders, and Investors (Wharton School Press, 2020)Changing the Game: How Video Games Are Transforming the Future of Business - Co-authored by David Edery (FT Press, 2008)


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In The Intelligence of Intuition, Gerd Gigerenzer challenges a commonly held view of intuition—namely, that it is somehow inferior to logical rationality.
Gigerenzer is director of the Harding Center for Risk Literacy at the University of Potsdam, director emeritus of the Center for Adaptive Behavior and Cognition at the Max Planck Institute for Human Development, and an expert on human decision-making. He argues that intuition is a form of unconscious intelligence shaped experience and evolution in dealing with uncertain and dynamic situations—situations for which logic and algorithms are often ill-fitted. As leaders deal with uncertainty and complexity and embrace new AI technologies, they must not forget the power of intuition.
Together with Martin Reeves, Chairman of the BCG Henderson Institute, Gigerenzer explores the power of intuition, when to use it in business, and how to cultivate and employ it.
Key topics discussed: 
01:23 | Difference between intuition and rationality
04:49 | Role of heuristics
06:29 | Why intuition is often looked down upon
08:06 | Power of intuition
15:21 | How to use intuition in business
18:45 | Distinguishing right intuition from wrong intuition
25:12 | Considering how AI use intuition
Additional inspirations from Gerd Gigerenzer:
How to Stay Smart in a Smart World: Why Human Intelligence Still Beats Algorithms (The MIT Press, 2022)Gut Feelings: The Intelligence of the Unconscious (Penguin Books, 2008)Calculated Risks: How to Know When Numbers Deceive You (Simon & Schuster, 2003)


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In Climate Capitalism: Winning the Global Race to Zero Emissions, Akshat Rathi tells the stories of people around the world who are building impactful solutions to tackle climate change.
Rathi is a senior reporter for Bloomberg News, focusing on climate and energy. He also hosts the weekly Zero podcast, in which he talks to the people leading the fight for a zero-emissions future. In his new book, Rathi argues that the best way to cut carbon pollution is by harnessing capitalism. Combating climate change requires a combination of smart policies, financing, technological innovations, and leadership—without killing markets or competition.
Together with Martin Reeves, Chairman of the BCG Henderson Institute, Rathi discusses the essence of climate capitalism, how to scale up individual success stories, and how to navigate the challenging political context.
 Key topics discussed: 
02:09 | Definition of climate capitalism
07:19 | Success stories: Chinese EVs, Orsted
11:31 | The need to combine tech, policies, and finance
12:52 | How to scale case studies to big solutions
16:24 | Navigating a polarized political context
18:45 | Making climate solutions profitable
24:06 | Where CEOs should start


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In Slow Down: The Degrowth Manifesto, Kohei Saito explores the relationship between capitalism and the climate crisis. He argues, controversially, that to have any chance of achieving true sustainability, we must move to a system which deemphasizes growth, adopts different metrics of progress, expands the commons, and places value on goods and services which are not currently considered as part of the economy, like caregiving and nature.
Saito is an associate professor of philosophy at the University of Tokyo and a recipient of the Japan Society for the Promotion of Science prize, which is awarded to the top scholar in Japan under the age of 45. His book, published previously in Japan, became an unexpected bestseller, shipping more than half a million copies to date.
Together with Martin Reeves, Chairman of BCG Henderson Institute, Saito discusses the arguments for fundamental economic system change, explores the feasibility of less radical alternatives, and assesses implications for business leaders. The book’s propositions will likely seem very radical to many of our business listeners—but as Saito notes, sometimes utopian ideas can be a stimulus for generating new thinking for complex intractable topics like climate change.
Key topics discussed: 
01:50 | Defining the problem and the need for system-level change
06:21 | The relation between capitalism and technological progress
08:41 | Exploring alternative, less radical solutions
13:32 | The need for a new measurement of economic and social progress
17:08 | The feasibility of a transition to a new system
21:41 | Implications for business leaders
25:35 | Reasons to remain hopeful


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In Higher Ground: How Businesses Can Do the Right Thing in a Turbulent World, Alison Taylor explores how companies can navigate the complexity of modern business ethics.
Taylor, a clinical associate professor at NYU Stern, has spent decades advising large multinational companies on risk, corruption, sustainability, and organizational culture. In her new book, she combines her experience with vivid case studies to guide companies toward reaching what she describes as the “higher ground”—a space where companies can act ethically and achieve long-term strategic advantage.
Together with Martin Reeves, Chairman of BCG Henderson Institute, Taylor discusses why good governance is now more important than ever, how leaders can navigate a polarized political landscape, and how businesses can build trust.
Key topics discussed: 
02:44 | The rising importance of internal governance
06:10 | Common traps of internal governance
07:55 | Best practices for deploying purpose
10:53 | Businesses taking political stances
14:58 | Importance of trust and traps in pursuing it
17:12 | Solutions for businesses to pursue
24:15 | How to apply these lessons in your own work


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