The Inherent Failures of Long-Term Contracts — and How to Fix Them

The Inherent Failures of Long-Term Contracts — and How to Fix Them

Author: Harvard Business Review September 3, 2019 Duration: 21:20
Oliver Hart, Nobel-winning Harvard economist, and Kate Vitasek, faculty at the University of Tennessee, argue that many business contracts are imperfect, no matter how bulletproof you try to make them. Especially in complicated relationships such as outsourcing, one side ends up feeling like they're getting a bad deal, and it can spiral into a tit for tat battle. Hart and Vitasek argue that companies should instead adopt so-called relational contracts. Their research shows that creating a general playbook built around principles like fairness and reciprocity offers greater benefits to both businesses. Hart and Vitasek, with the Swedish attorney David Frydlinger, cowrote the HBR article "A New Approach to Contracts."

Each week, the HBR IdeaCast from Harvard Business Review sits down with experts whose ideas are shaping the world of work. This isn't about abstract theory; it's a conversation focused on practical insights for leaders, managers, and entrepreneurs navigating real challenges. You'll hear from scholars, CEOs, and innovators dissecting topics across management, marketing, and organizational strategy, translating complex research into actionable advice. The discussions get into the nuances of building effective teams, driving growth, making strategic decisions, and understanding the forces transforming industries. By tuning into this podcast, you gain access to the forefront of business thinking, a resource for anyone looking to sharpen their skills and lead more effectively. The consistent, in-depth dialogue provides a valuable perspective that goes beyond headlines, offering a deeper understanding of how to succeed in a competitive landscape. It's a direct line to the ideas that matter, presented through thoughtful conversation designed to provoke reflection and inspire change in your own professional approach.
Author: Language: English Episodes: 100

HBR IdeaCast
Podcast Episodes
How Generative AI Changes Productivity [not-audio_url] [/not-audio_url]

Duration: 37:12
How Generative AI Changes Everything is a special series from HBR IdeaCast. Each week, HBR editor in chief Adi Ignatius and HBR editor Amy Bernstein host conversations with experts and business leaders about the impact o…
Disruption Isn’t the Only Path to Innovation [not-audio_url] [/not-audio_url]

Duration: 22:01
Disruptive innovation has proven such a powerful idea that many people now equate innovation with market disruption. But INSEAD strategy professor Renée Mauborgne says there's a powerful way to create new markets without…
Special Series: How Generative AI Changes Everything [not-audio_url] [/not-audio_url]

Duration: 2:01
Generative AI seems to be everywhere right now, but what do you actually need to know? HBR IdeaCast is cutting through the noise in the special series How Generative AI Changes Everything. How will this new technology up…
Reid Hoffman on Building AI and Other Tech More Responsibly [not-audio_url] [/not-audio_url]

Duration: 34:39
As a founding board member of PayPal, cofounder of LinkedIn, and a partner at Silicon Valley VC firm Greylock, Reid Hoffman has long been at the forefront of the U.S. tech industry, from the early days of social media to…
Stop Neglecting Low-Wage Workers [not-audio_url] [/not-audio_url]

Duration: 26:12
Many people blame the shortage of low-wage workers on the enduring impact of the pandemic. But management professor Joseph Fuller and senior researcher Manjari Raman of Harvard Business School say that the real reason ha…
How Managing Your Anxiety Can Make You a Better Leader [not-audio_url] [/not-audio_url]

Duration: 29:15
The business world has increasingly begun to recognize the importance of mental health, but we still have a long way to go in openly acknowledging our challenges with it. Writer, entrepreneur, and podcast host Morra Aaro…
A Forensic Accountant on How Companies Can Avoid Fraud and Scandal [not-audio_url] [/not-audio_url]

Duration: 24:55
From Theranos to Enron, we can't get enough of corporate scandals. We also can't get enough of the intriguing people who perpetrate them. But instigators of fraud are not all Disneyesque villains chasing money and power…
X’s Astro Teller on Managing Moonshot Innovation [not-audio_url] [/not-audio_url]

Duration: 28:20
How do you solve the world's toughest problems? Or find the next big thing in tech? Lots of organizations fail to explore and take big bets on new ideas because they can't tolerate the mess of experimentation and the fea…
Why You (and Your Company) Need to Experiment with ChatGPT Now [not-audio_url] [/not-audio_url]

Duration: 23:39
The online application ChatGPT and its integration into Microsoft search engines have put generative artificial intelligence technology in the hands of millions of people. Early adopters are using them in their daily job…