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How is the US doing on providing economic opportunities? See our latest research.
On Point
What’s surprising about 25- to 34-year-olds?
by "McKinsey On Point" <publishing@email.mckinsey.com> - 10:13 - 18 Dec 2022 -
The year's most popular articles from McKinsey Global Institute
McKinsey&Company
At #1: Human capital at work: The value of experience Brought to you by Liz Hilton Segel & Homayoun Hatami
Global leaders, Industry & Capabilities PracticesAs 2022 draws to a close, we’re revisiting our most popular insights of the year. Today, we give you our best-read pieces from McKinsey Global Insitute, which focus on topics including the new era, Europe’s technology gap, the war in Ukraine, and more. At No. 1. is Human capital at work: The value of experience, by Anu Madgavkar, Bill Schaninger, Sven Smit, Jonathan Woetzel, Hamid Samandari, and Jeongmin Seong. Read on for our full top 10, and don’t miss McKinsey Publishing’s 2022 year in review for a month-by-month journey of some the year’s biggest inflection points.
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by "McKinsey Top Ten" <publishing@email.mckinsey.com> - 08:34 - 18 Dec 2022 -
The week in charts
The Week in Charts
The titanium economy, a new era, and more Share these insights
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by "McKinsey Week in Charts" <publishing@email.mckinsey.com> - 03:09 - 17 Dec 2022 -
How to be a better leader
Harmony Internal - McKinsey
Declutter your mind Brought to you by Liz Hilton Segel & Homayoun Hatami
Global leaders, Industry & Capabilities PracticesHow to be a better leader
Some years ago, a McKinsey partner—Manish Chopra, now a senior partner—was finding it hard to focus on important (and not merely urgent) things, to make time for family and friends, and to control his obsession with fads, devices, and gimmicks. By chance, he stumbled on an ancient meditation technique that helped him develop productive, healthy habits. Much as focused physical activity revitalizes the body, meditation became a kind of mental aerobics that decluttered and detoxified his mind. At work, he learned to focus on ends, not just means. In his life as a whole, he thought more about how his actions would affect other people and about what’s right or fair, not just what served his own interests.
Today’s “always on” society and culture are undermining our capacity for love, work, and leadership. Meditation can be a way to escape the cycle of mind-numbing nonstop activity. To make 2023 more fulfilling, read our 2016 classic “Want to be a better leader? Observe more and react less.”
Happy New Year!Declutter your mind Jacqueline Brassey, Aaron De Smet, and Michiel Kruyt, Deliberate Calm
“How wellbeing improves performance: An interview with Annastiina Hintsa”
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by "McKinsey Classics" <publishing@email.mckinsey.com> - 11:28 - 17 Dec 2022 -
Incorporating creativity in your daily life, the global balance sheet, digital currencies, and more essential reads for the weekend
Harmony Internal - McKinsey
Relax and catch up on these big reads Brought to you by Liz Hilton Segel & Homayoun Hatami
Global leaders, Industry & Capabilities PracticesThe end of the year is upon us. As you relax and reflect on the past year, take a moment to catch up on the week’s big reads on creativity, digital currencies, the global balance sheet, and more.
QUOTE OF THE DAY
—Michael Zeller, head of AI Strategy and Solutions at Temasek, on what can be done to accelerate AI in the transition to net zero in “How AI can assist in Asia’s net-zero transition”
chart of the day
Ready to unwind?
— Edited by Joyce Yoo, editor, New York
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by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 05:10 - 16 Dec 2022 -
Global balance sheet 2022: Enter volatility
Harmony Internal - McKinsey
Monitor and manage Share these insights
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by "McKinsey Global Institute" <publishing@email.mckinsey.com> - 02:24 - 16 Dec 2022 -
The year's most popular articles from the McKinsey Quarterly
McKinsey&Company
At #1: The Great Attrition is making hiring harder. Are you searching the right talent pools? Brought to you by Liz Hilton Segel & Homayoun Hatami
Global leaders, Industry & Capabilities PracticesAs 2022 draws to a close, we’re revisiting our most popular insights of the year. Today, we give you our best-read pieces from the McKinsey Quarterly, which focus on topics including talent, ESG, marketing in the metaverse, and more. At No. 1. is The Great Attrition is making hiring harder. Are you searching the right talent pools?, by Aaron De Smet, Bonnie Dowling, Bryan Hancock, and Bill Schaninger. Read on for our full top 10, and don’t miss McKinsey Publishing’s 2022 year in review for a month-by-month journey of some the year’s biggest inflection points.
1. The Great Attrition is making hiring harder. Are you searching the right talent pools?
People keep quitting at record levels, yet companies are still trying to attract and retain them the same old ways. New research identifies five types of workers that employers can reach to fill jobs. Reassess now
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by "McKinsey Top Ten" <publishing@email.mckinsey.com> - 10:21 - 16 Dec 2022 -
Talent trends that companies should understand by now
The Shortlist
Brought to you by Liz Hilton Segel & Homayoun Hatami
Global leaders, Industry & Capabilities PracticesThis week, we look at ways that companies can address the continuing trend of employee attrition. Plus, an innovator whose career melds STEM and the humanities, and a Stanford business school professor on how to wield power (for the good). The Shortlist team wishes our readers happy holidays and a wonderful start to the new year.
Every company strives to be resilient. At the center of organizational resilience is a workforce that can bounce back from challenges of all kinds. But first, employees have to be engaged in what they’re doing, feel valued by their boss and team, and be able to envision a future for themselves at their organization. Recent McKinsey research on European attrition rates shows that European workers, like their global peers, are thinking more about quitting their jobs. In fact, one in three may quit in the next three to six months, even in an uncertain European economic environment.
Warning signs. In addition to McKinsey’s continuing research into global Great Attrition trends, a recent survey of employed Gen Z respondents in the US reveals that this cohort—a crucial part of any organization’s future—is more likely to report that the pay they receive for their work does not allow them a good quality of life; they are also less likely than other generations to report feeling recognized and rewarded for their work.
Many companies remain on the back foot amid these employee trends, months and months in. What are some practical ways that employers can build a truly engaged and productive workforce? Of course, compensation and career advancement still matter. But McKinsey research shows that organizations can step back and bolster capabilities at four levels, including building self-sufficient teams that, when held accountable and given ownership of outcomes, feel empowered to carry out strategic plans and stay close to customers.
Investing in the future. Organizations can also find and promote adaptable leaders who take the time to coach team members through changes the organization is facing. Building these capabilities requires an investment in talent and culture: companies that focus on resilient operations, teams, and developing leaders are more likely to attract the kind of top talent who will have a greater chance of success and, in turn, be more likely to perpetuate a cycle of resilience.
And speaking of talent: There’s a lot of talk about the difference between employees who are “quiet quitting” (disengaged employees performing the bare minimum of work required) versus those who are setting appropriate boundaries. With the year-end review season wrapping up, a recent episode of the McKinsey Talks Talent podcast featured McKinsey talent experts Bryan Hancock and Bill Schaninger on how managers can give honest feedback in a moment when employee engagement is down.
Jayshree Seth, an accomplished engineer and innovator, is the first chief science advocate at 3M. In this episode of the McKinsey Global Institute’s Forward Thinking podcast, she speaks with partner Michael Chui about the need to make science more relatable for people around the world. Each year, 3M commissions a global survey to unearth public perceptions about the role of science in people’s lives. “Science is a very human endeavor and does have a strong humanities context,” says Seth. “We just don’t talk about it.” Her team also created a docuseries called Not the Science Type, which highlights the journey of four women scientists and their paths “to shatter the stereotypes of who enters and who persists and who excels in STEM.”
Three questions for
Jeffrey Pfeffer
In a recent edition of Author Talks, Stanford Graduate School of Business professor Jeffrey Pfeffer discusses his new book, 7 Rules of Power: Surprising—but True—Advice on How to Get Things Done and Advance Your Career, and offers advice for how to gain power through resources, reputation, and relationships. An edited version of the conversation follows.
What is power, and what are its main sources?
I would define power as the ability to get things done your way in contested situations. Different people will have different perspectives, information, and points of view. Almost every decision is going to be somewhat contested, so power is the ability to get your way in these situations.
There are a number of sources of power. One obvious source is control over resources. Do you have budget control? Do you control real-estate assets? Do you control a physical plant? Another source of power is social relationships: the networks that you have built and that you already have. Management leadership is often defined as getting things done through other people. One source of power, therefore, is how many people you know. How many people are in your sphere of influence, so to speak?
A third very important source of power that I think people sometimes underestimate is how you show up. Are you able to act and speak with power? If you’re perceived as a powerful, effective, efficacious leader, that becomes a self-fulfilling prophecy—good people want to work with you, invest with you, and buy from your company. That becomes an important source of power as well.
How can power be used for good?
Don’t confuse the fact that power is sometimes used for evil with power actually being evil. The people who most need to understand power and build their power skills are people who come from backgrounds or have characteristics that would normally put them at a disadvantage.
There is still, unfortunately, discrimination against women. There’s discrimination against people of color. People from lower socioeconomic classes usually start at some disadvantage, and those are the people who most need the power skills because they’re not starting from the 50-yard line, if we’re using a football metaphor. They have to overcome the most obstacles to achieve career success.
Melvin Lerner, the social psychologist, years ago wrote about the just-world hypothesis, in which people feel a sense of control by believing that the world is just and fair. Unfortunately, the world is not just and fair. Don’t opt out of the game before you’ve even started playing—don’t place yourself at a disadvantage.
What advice do you have for rule breaking?
Breaking rules has many advantages. The first advantage of breaking the rules is that it catches people by surprise. We’re trained from the time we’re little to conform. It’s what schools mostly teach you to do, so when you break the rules, it catches people by surprise. How does David beat Goliath? By breaking the rules. Goliath shows up with armor and swords. David figures that if he puts on all this armor, he won’t be able to move, let alone win the battle, so he fights by using a slingshot.
If you want to disrupt an industry, you disrupt the industry by making your own rules. If we talk about social change, the late Congressman John Lewis talked about making good trouble. If you’re going to accomplish social change, if you’re going to accomplish profound change of any kind in any organization, you’re going to need to break the rules.
— Edited by Barbara Tierney, senior editor, New York
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by "McKinsey Shortlist" <publishing@email.mckinsey.com> - 02:17 - 16 Dec 2022 -
What role will women play in the metaverse?
On Point
How women use the metaverse Brought to you by Liz Hilton Segel & Homayoun Hatami
Global leaders, Industry & Capabilities Practices• Ladies first. To understand gender dynamics in the early-stage metaverse, McKinsey conducted a metaverse consumer survey in Western Europe and Northern Asia. Women are spending more time in the metaverse than men: 35% of women spent more than three hours a week in the metaverse compared to 29% of men, finds research by McKinsey senior partner Lareina Yee and her coauthor. Women are also more likely than men to engage in hybrid scenarios that bridge the physical and digital worlds—such as gaming and live events.
— Edited by Alexandra Mondalek, editor, New York
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by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:33 - 16 Dec 2022 -
Into the storm: CFOs pivot to managing financial headwinds
Harmony Internal - McKinsey
Confront the issues Brought to you by Liz Hilton Segel & Homayoun Hatami
Global leaders, Industry & Capabilities PracticesNearly one-half of CFOs and other financial officers view increasing interest rates as a challenge to company growth, according to McKinsey’s global inaugural CFO Pulse Survey. The survey also finds that while their organizations prioritize strategic planning, for example, they are personally more concerned with improving the management of financial risk, liquidity, and resource allocation. So what do CFOs view as some of the biggest risks to future growth? To learn more about the survey and what these findings could mean for your business, check out this article by McKinsey’s Ankur Agrawal, Christian Grube, and Natalia Podvoyskaya.
Quote of the day
—Hatem Dowidar, the Group CEO of e&, on the role of operators in ESG in “e& Group CEO: Transforming from a telco to a techco”
Chart of the day
ALSO NEW
— Edited by Emily Adeyanju, editor, Charlotte
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by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 06:42 - 15 Dec 2022 -
Every company is a software company: Six ‘must dos’ to succeed
Harmony Internal - McKinsey
Learn a new playbook Share these insights
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by "McKinsey Quarterly" <publishing@email.mckinsey.com> - 04:53 - 15 Dec 2022 -
European companies are struggling to retain workers. What strategies could help?
On Point
Three big reasons workers leave Brought to you by Liz Hilton Segel & Homayoun Hatami
Global leaders, Industry & Capabilities Practices• High churn in Europe. The war in Ukraine, surging inflation, and a likely economic slowdown have created a difficult set of conditions for European employers. To learn more about the state of the European labor market, McKinsey surveyed more than 16,000 people in nine European countries. One-third of respondents say that they expect to quit their jobs in the next three to six months. It’s a remarkably high churn rate for Europe, where labor protections and cultural factors tend to favor remaining in a job, point out McKinsey senior partners Vincent Bérubé and Dana Maor and their coauthors.
— Edited by Belinda Yu, editor, Atlanta
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by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:22 - 15 Dec 2022 -
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by "Jignesh Pardeshi" <official@uffizio.in> - 10:30 - 14 Dec 2022 -
The systemic inequities of long-distance running
Harmony Internal - McKinsey
Be empathetic Brought to you by Liz Hilton Segel & Homayoun Hatami
Global leaders, Industry & Capabilities PracticesDid you know that the best communities for running in the US have a population that is predominantly White? It’s no coincidence that these places also have some of the safest streets, cleanest air, and the best lighting in the country, says Alison Mariella Désir, founder of Harlem Run and Run 4 All Women. In a new Author Talks interview, she shares her personal experience with the systemic inequities facing Black runners and explains what it means to move through space as a Black person in America. As Désir notes, “There’s nothing micro about these aggressions.” Be sure to give it a read. And for insights on Black Americans’ experience in the US workplace, check out this article by Bryan Hancock, James Manyika, Monne Williams, and Lareina Yee.
Quote of the day
—McKinsey expert associate partner Bonnie Dowling on attracting talent back into the workforce in a recent episode of McKinsey Talks Talent
Chart of the day
ALSO NEW
— Edited by Hanna Carney, editor, New York
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by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 06:42 - 14 Dec 2022 -
Don’t just transform. Reinvent.
Re:think
Embrace change While many companies today are attempting some sort of transformation of their core business, long-term success requires reinvention across multiple fronts.
Most industries are facing profound and accelerating disruptions: digital attackers, ecosystem plays that redefine industry boundaries, and the regionalization of value chains, to name a few. Mix in geopolitical tensions and economic woes and many C-suite leaders don’t have the time to think in a fresh and bold manner, falling victim to incrementalism instead.
In our conversations with CEOs, we try to help them step out of the day-to-day by asking, “What do you want your company to become? What will it take to get there?” We also remind them that difficult times can present an opportunity to go beyond incremental strategic and operational changes to reinvent the company and make it fit for the future.
Examples abound of companies that are shifting their portfolios, operating models, and talent strategies significantly—the media and payments industries come to mind. Others have pivoted toward sustainability or omnichannel. What these companies have in common is the ambitious and holistic nature of their transformations, which require employees throughout organizations to work in a coordinated manner toward a common goal.“Business leaders expect that by 2026, half of their companies’ revenues will come from products, services, or businesses that haven’t been created yet.”
While each reinvention will necessarily be different, five actions are crucial.
Separate the “what” from the “how.” To define the “what,” think beyond your traditional industry boundaries to look at your organic growth potential. During a big M&A move, for example, may be the right moment to begin reinventing the newly combined entity. Consider important portfolio moves and anticipate new businesses. According to a McKinsey Global Survey, business leaders expect that by 2026, half of their companies’ revenues will come from products, services, or businesses that haven’t been created yet. Building a new business is difficult, and less than one in five scale successfully. On the upside, the survey revealed that the more new businesses you build, the better you get at building them. Joining the ranks of the successful requires learning by doing.
Involve your teams in the “how.” Allow them to dream big and define what they need to make the transformation happen. This applies to the operating model, which can become more agile, more outsourced, or more integrated. It could mean a very different level of digital and data processes, tools, and skills; a transformed economic model that has lower costs and is less capital intensive; and a transformed people model as it applies to talent and culture. Take stock of your starting point, plan for the transformation journey in a very structured manner, and pilot progress.
Be open about the leadership journey. It takes imagination to dream that tomorrow can be different from today. That means changing the mindset of leaders and managers, as well as bringing your board and investors with you early on. The best leaders and companies are prudent about managing the downside while aggressively pursuing the upside. These leaders are thinking about the next decade, not the next month.
Tackle the skills gap. Bringing in the right talent is critical for changing the trajectory of your company. The mindset must be growth-oriented and innovative. CEOs can build these capabilities internally, through upskilling and reskilling, and by hiring externally. Matching talent to the right opportunities is more important than ever as a way to keep employees engaged and feeling like their career objectives are being taken seriously.
Define the reinvention’s success broadly. This is a great opportunity to reground your company in a set of objectives that are better aligned with today’s stakeholder reality. Environmental, social, and governance (ESG) principles can play an important role at a time when most Fortune 500 CEOs believe their companies have a responsibility to address social problems. Most employees also take a company’s ESG commitment seriously when choosing a place to work, as do customers, McKinsey research shows.
Organizations that embrace reinvention have higher ambitions for achieving innovation, making bold bets, and building successes. Companies can overcome today’s business challenges if they have the right framework in place and believe that reinvention is not only necessary but welcome.ABOUT THE AUTHOR
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UP NEXTDiana Ellsworth on diversity
Organizations have demonstrated positive intent on DEI, but progress is slow. A new McKinsey report, developed with the World Economic Forum, surfaces key success factors that have driven significant impact.
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by "McKinsey Quarterly" <publishing@email.mckinsey.com> - 02:34 - 14 Dec 2022 -
Electric vehicles are here. Why aren’t they more widespread?
On Point
Three ways to speed EV adoption Brought to you by Liz Hilton Segel & Homayoun Hatami
Global leaders, Industry & Capabilities Practices• Decade of EVs. The world has entered the decade of the EV, fueled by regulations promoting EV adoption, advances in energy storage and batteries, and concerns about sustainability, says Russell Hensley, coleader of the McKinsey Center for Future Mobility in the Americas, in our latest episode of The McKinsey Podcast. Still, some consumers remain hesitant to pivot to a relatively new technology. In the US, where a large proportion of new cars sold are SUVs and trucks, EV adoption remains slower than in China and Europe.
— Edited by Belinda Yu, editor, Atlanta
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by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:42 - 14 Dec 2022 -
European talent is ready to walk out the door. How should companies respond?
Harmony Internal - McKinsey
Address the attrition Brought to you by Liz Hilton Segel & Homayoun Hatami
Global leaders, Industry & Capabilities PracticesEmployee attrition. It’s a trend that continues among workers around the world, and Europe is no exception. McKinsey’s latest survey shows that European workers are open to quitting their jobs in high numbers, even as the economic picture darkens. Companies also face a high job vacancy rate, a large slice of retirees who are unlikely to return to the workforce, and a longer-term skills gap, making them struggle to hire the people they need, according to a new McKinsey Quarterly article by McKinsey senior partners Vincent Bérubé, Dana Maor, and their coauthors. But smart leaders can use this moment as an opportunity to build an engaged and productive workforce that can deliver in times of radical uncertainty. Check out the article for how companies can move ahead.
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by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 06:35 - 13 Dec 2022 -
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Managing organizations is much tougher today. What are global CEOs focusing on?
On Point
Six priorities for CEOs in turbulent times Brought to you by Liz Hilton Segel & Homayoun Hatami
Global leaders, Industry & Capabilities Practices• Six priorities. The CEO is a company’s ultimate strategist. But with a slowing economy and the ongoing COVID-19 pandemic, managing complex organizations is much harder today. How do executives decide where to start? To find out, McKinsey spoke with hundreds of executives and found six priorities that CEOs are focusing on, including both defensive and offensive moves. That’s much different from the purely defensive agenda that many companies are following, explain McKinsey senior partners Homayoun Hatami and Liz Hilton Segel.
— Edited by Alexandra Mondalek, editor, New York
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by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:42 - 13 Dec 2022