HBR On Leadership – Episode Summary

Episode: How Business Leaders Can Help Solve the World’s Toughest Problems
Date: October 22, 2025
Host: Kurt Nickish (Harvard Business Review)
Guest: Rosabeth Moss Kanter, Professor at Harvard Business School, author of "Think Outside the Building"

Overview

This episode focuses on the expanded role of business leaders in tackling complex, persistent global issues like climate change, political division, and social inequality. Rosabeth Moss Kanter argues that organizations and their leaders possess unique resources and platforms to drive meaningful change beyond traditional business boundaries. The conversation explores “advanced leadership,” highlighting practical skills, mindsets, and real-world examples of transformative corporate action.

Key Discussion Points and Insights

1. The Urgency of Action from Business Leaders

• Persistent Problems: Many of today’s biggest challenges—climate change, political divides, social inequity—have existed for decades. Despite some improvements, entrenched obstacles demand new forms of intervention.
  • "People like to talk about the problems. They don't necessarily want to get up and do something about it." — Rosabeth Moss Kanter [01:44]
• Impatience with Passivity: Kanter’s call is motivated by frustration with inaction and impatience for progress, arguing that business has a responsibility to act, not just discuss.

2. Leadership Beyond the Building: Coalitions & Broader Influence

• Thinking Beyond Silos: Leaders need to operate “outside the building”—meaning beyond their boundaries, sectors, and comfort zones—to find innovative, scalable solutions.
  • "When you take action, you have to think beyond the silos and divides and walls, because you cannot take action all by yourself for a big problem." — Kanter [03:13]
• Examples: IBM works globally on educational initiatives, but succeeds through public-private partnerships, not solo efforts.

3. Why Business Has a Special Role

• Institutional Power & Resources:
  • Businesses have resources, influence, and networks that can be mobilized for societal good—often more nimbly than government or nonprofits alone.
  • "People do listen to business executives. And...should think about the automatic resources available...to tackle a problem like climate change." — Kanter [06:10]
• Restoring Trust:
  • With waning public trust, companies must demonstrate positive societal impact to win back legitimacy and attract talent.

4. Empowerment vs. Helplessness: Start with Small Steps

• Cycle of Action:
  • Taking even small steps toward change can generate energy, break a “losing streak,” and prove that progress is possible.
  • "If you find even one action and get started, you just have to get moving. Just try it. If it doesn't work, fix it. Try something else. And that is an enormous source of energy." — Kanter [07:38]
• Concrete Example:
  • In São Paulo, a bank’s commitment to becoming “green” began with cleaning up a neighboring alley, transforming it into a vibrant community space. Empowered employees then felt motivated to pursue further change. [09:00]

5. Lessons from Sesame Workshop: Outside Partnerships Fuel Innovation

• Adapt and Expand:
  • Citing Sesame Street’s evolution amid declining TV ratings, Kanter illustrates how partnering with new industry players (e.g., commercial cable, IBM’s AI, digital startups) helped create broader impact, including winning a $100 million prize to serve Syrian refugees. [10:20]
  • "What happens when you get successful is you start going inside...and you never really see change happening outside or you ignore it." — Kanter [10:28]

6. Characteristics of “Advanced Leaders”

• Shared Traits:
  • Deep curiosity, meaningful values, a sense of purpose, willingness to take risks, and habit of seeking new experiences.
  • Example: Verizon’s CEO asks executives to do something new every week and visit new places to expand their perspective. [13:45]
• Accessible to All:
  • Advanced leaders are not rare but under-recognized. Their broad interests and outside-the-building thinking are what set them apart.
  • "We have not honored enough the people who have much broader interests..." — Kanter [14:46]

7. Facing Discomfort and Risk

• Hustle and Resilience:
  • Real change is risky and requires perseverance through setbacks ("Kanter's Law": Everything can look like a failure in the middle). [18:10]
  • "You have to say, we're going a place where nobody's gone before. And sure, it's a little risky because of what I call Kanter's Law. Kanter's Law is that everything can look like a failure in the middle." — Kanter [18:32]
• Leadership Outside Authority:
  • Unlike traditional hierarchies, advanced leaders must influence and build coalitions among people they do not directly control, sustaining motivation through shared purpose.
  • "Change is all about not just persuading them so you can do your thing. It's about building a community of people who believe the same thing." — Kanter [19:50]

8. Organizational Examples: CVS and Haier

• CVS:
  • Transitioned from being “just” a pharmacy to a health company, establishing clinics in stores and banning tobacco, despite revenue loss—a bold move aligned with the larger purpose of promoting community health. [21:00]
• Haier:
  • The Chinese appliance giant empowers employees as entrepreneurs, building ecosystems around their products—e.g., shifting washing machines into the context of sustainable clothing and environmental initiatives. [22:14]
  • "They're starting to think much more imaginatively and that's a kind of thinking I think we need inside businesses as well as outside." — Kanter [23:17]

Notable Quotes & Memorable Moments

• "I was irritated at the passivity...people like to talk about the problems. They don't necessarily want to get up and do something about it. And I'm impatient for action and solutions..." — Kanter [01:44]
• "Even the biggest company in the world can't do it by themselves." — Kanter [03:34]
• "Taking a small step outside the building... you see the world differently." — Kanter [08:44]
• Banking example in São Paulo: cleaning an alley as a first “small” step to larger organizational change. [09:00]
• On the trap of complacency: "What happens when you get successful is you start going inside...and you never really see change happening outside or you ignore it." — Kanter [10:28]
• On risk and leadership: "Everything can look like a failure in the middle." — Kanter [18:32]

Timestamps for Key Segments

• 00:42 – 01:27 — Framing the episode: The global leadership challenge
• 01:27 – 03:13 — Kanter’s motivation: Irritation with passivity, the need for bold action
• 03:13 – 05:01 — Defining “thinking outside the building,” building coalitions
• 06:10 – 07:38 — The special responsibility/power of business
• 07:38 – 10:15 — Small steps, overcoming helplessness, São Paulo bank example
• 10:15 – 12:42 — Lessons from Sesame Workshop’s reinvention and partnerships
• 12:42 – 14:46 — What sets “advanced leaders” apart; developing broad interests
• 17:43 – 19:50 — Managing risk, leading without authority, sustaining communities
• 21:00 – 23:29 — Organizational examples: CVS and Haier
• 23:29 – 23:35 — Closing remarks

Conclusion

This episode positions advanced leadership as a practical, actionable approach for business leaders at all levels to help solve society’s toughest problems. Through stories, strategies, and thoughtful analysis, Kanter makes a case for getting outside your comfort zone, building coalitions, and maintaining purpose through setbacks. The message: the world’s hardest problems need business to lead—with courage, creativity, and a willingness to strive for impact beyond quarterly reports.

For further information:

• Book: "Think Outside the Building" by Rosabeth Moss Kanter
• More case studies and episodes: hbr.org