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Has your organization set priorities for this year? A leader’s guide

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ESSENTIALS FOR LEADERS AND THOSE THEY LEAD

Brought to you by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities

Many of us make personal New Year’s resolutions that we may not always keep. Organizations, however, don’t have the luxury of letting their objectives slip. Despite the geopolitical upheavals of 2023—the top concern among respondents to our latest McKinsey Global Survey—and the continuing threat of instability this year, leaders still need to establish business priorities, performance milestones, and anticipated outcomes for the months ahead. While unexpected shocks can scuttle even the most airtight of plans, some trends and developments stand out as essential for organizations to consider in 2024.

AN IDEA

An image linking to the web page “What matters most? Eight CEO priorities for 2024” on McKinsey.com.

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CEOs already have a lot on their plate—and this year will likely deliver more than its share of challenges and disruptions. “It’s the most difficult operating environment we can remember,” observe McKinsey senior partners Homayoun Hatami and Liz Hilton Segel in an article on CEO priorities in 2024. Based on numerous conversations with heads of companies, Hatami and Segel discuss eight priorities that may top leaders’ agendas this year. Growth is always a priority, but there are many ways to get there: through increased market share, implementing advanced technologies, or bumping up sales productivity, to name just a few. Leaders may also want to consider programmatic M&A: our research shows that companies that regularly pursue small deals perform better than do their industry peers using other M&A strategies.

A BIG NUMBER

44

That’s the percentage increase in postings for generative AI jobs between 2021 and 2022—a striking contrast to the 13 percent decline in overall job postings during that time. Demand is also rising for talent in other high-tech fields, such as Web3 and next-generation software development, for which job postings surged 40 percent and 29 percent, respectively. For other big, surprising, or noteworthy numbers from last year, check out “2023: The year in charts,” a compilation of our favorites from our Chart of the Day series.

A QUOTE

“I’m very concerned about the country’s economy, especially over the last year and the last three to six months.”

That’s one consumer’s response to our latest ConsumerWise survey of US shoppers. Consumer sentiment held relatively steady in 2023, but Americans are increasingly cautious about the economic outlook and are keeping an eye on their spending. Mixed feelings also prevail in the five European countries we surveyed, with optimism tempered by concerns about inflation, climate change, and geopolitical upheavals. In both the US and Europe, most shoppers expect to spend mainly on essentials and trade down to cheaper products where possible.

A SPOTLIGHT INTERVIEW

An image linking to the web page “Author Talks: Ron Shaich shares leadership lessons on what matters most and why” on McKinsey.com.

Business leaders may mistakenly believe that “entrepreneurs are risk-takers or risk seekers,” says author and investor Ron Shaich in an interview with McKinsey. “We’re not. I’m not. I’m a risk-averse guy. What I do is I see opportunities.” As the founder and former chairman of Panera Bread and Au Bon Pain, Shaich seized every opportunity that came his way to innovate and transform the companies he led. His “contrarian” view of the world helped him differentiate his organizations from those of his competitors, he says. “If you do what everyone else is doing, you will get your market share, but you will not do anything better.” Transforming a business to achieve differentiation means figuring out what’s going to matter in the future—and then doing it. “The key to most everything is, first, tell yourself the truth, where you really stand, what the competitive marketplace is. Second, based on that, know what matters. Third, get done what matters.”

SPA DAY

An image linking to the web page “Author Talks: How to learn and lead calmly through volatile times” on McKinsey.com.

Paying attention to their own well-being may be a New Year’s resolution that leaders need to make—and keep. The pandemic brought home the heavy costs of worker burnout, and the stress on managers in particular continues to increase. While some high-achieving leaders may disparage self-care as frivolous, a healthy diet and fitness regimen, along with emotional self-regulation, can improve productivity, creativity, and the ability to make good decisions. Leaders may need to be cautious about discussing their own self-care routines with employees, however: alluding to your expensive workout equipment or flexible work schedule could alienate people who may not have access to those things. Instead, offering empathy, compassion, and practical assistance may be more effective.

Lead by prioritizing what matters most.

— Edited by Rama Ramaswami, senior editor, New York

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by "McKinsey Leading Off" <publishing@email.mckinsey.com> - 04:47 - 8 Jan 2024

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info@learn.odoo.com

Middle managers don’t always want to be promoted. How should leaders reward them?

Planning your next trip could get much easier with generative AI

Has your organization set priorities for this year? A leader’s guide

Explore a range of growth options

“I’m very concerned about the country’s economy, especially over the last year and the last three to six months.”

Archives

in

info@learn.odoo.com

Middle managers don’t always want to be promoted. How should leaders reward them?

Planning your next trip could get much easier with generative AI

Has your organization set priorities for this year? A leader’s guide

﻿Explore a range of growth options

“I’m very concerned about the country’s economy, especially over the last year and the last three to six months.”﻿

Explore a range of growth options

“I’m very concerned about the country’s economy, especially over the last year and the last three to six months.”