Bias busters: When good intentions get derailed

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Does ESG really matter—and why?

by "McKinsey Week in Charts" <publishing@email.mckinsey.com> - 03:28 - 3 Sep 2022

The why and how of ESG

McKinsey&Company

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Monthly Highlights, September 2022

Organizations have been allocating more resources toward improving ESG (environmental, social, and governance) efforts, but the acronym has consistently encountered doubt and criticism—namely, for being perceived as a distraction and intrinsically too difficult. Senior partners Lucy Pérez, Vivian Hunt, Hamid Samandari, and coauthors rebuke those claims, asserting that ESG is now more essential, relevant, and quantifiable than ever. Does ESG really matter to companies? What is the business-grounded, strategic rationale? This month, our featured stories look at the why of ESG (that is, why ESG matters to companies), as well as the how of ESG (that is, how companies can take a more systematic and rewarding approach to ESG). Other highlights in this month’s issue include the following topics:

ten imperatives that should guide organizations seeking to outgrow and outearn their peers
why companies should focus on resiliency and cost but also make intentional bets for longer-term growth
the technology trends that matter most for companies in 2022
why leaders should play offense and defense during times of volatility

Editor’s choice

Although valid questions have been raised about ESG, the need for companies to understand and address their externalities is likely to become essential to maintaining their social license.

Deliver meaningful impact

How to make ESG real

While ESG is likely to evolve both in substance and name in the coming years, its underlying impulse is here to stay. Here’s how companies can take a more systematic and rewarding approach to ESG.

Be effective

THIS MONTH’S HIGHLIGHTS

The ten rules of growth

Empirical research reveals what it takes to generate value-creating growth today. Follow a holistic blueprint

The Great Uncertainty: US consumer confidence and behavior during inflationary times

Our latest Consumer Pulse research shows that there’s more pressure than ever on consumer confidence. But despite a general feeling of pessimism, there are signals of hope in consumer behavior. Tap into consumer sentiment

McKinsey Technology Trends Outlook 2022

Which technology trends matter most for companies in 2022? New analysis by the McKinsey Technology Council highlights the development, possible uses, and industry effects of advanced technologies. Explore the research

Strategic courage in an age of volatility

Today’s challenging environment requires business leaders to hone their edge in three critical areas: insights, commitment, and execution. Focus now

Race in the workplace: The frontline experience

Three of four frontline workers want to be promoted, but less than one in four achieves it. Companies can take targeted actions to better support these workers. Get new DEI insights

Where delegation fails: Five things only the enterprise CEO can do to build new businesses

Business building is increasingly important for company resilience, and CEOs are uniquely suited for the job. Here are five tasks that CEOs can undertake to build successful new businesses. Chart a bold path

ALSO NEW

A reflection on global food security challenges amid the war in Ukraine and the early impact of climate change

Author Talks: Don’t skip the ‘soft stuff’

Network effects: How to rebuild social capital and improve corporate performance

Three big moves that can decide a financial institution’s future in the cloud

How Americans are feeling about economic opportunities and the future

Freelance, side hustles, and gigs: Many more Americans have become independent workers

‘When it comes to mental health, all countries are developing countries’

The growth triathlon: Three pathways to extraordinary growth in the consumer sector

People and places: How and where to work next

‘Making the world a better place never feels like work’: An interview with chief DEI officer Indhira Arrington

Author Talks: 25 million … and counting

SPECIAL FEATURES

2022 summer reading guide

McKinsey’s annual book list from leaders, authors, and editors is back—with something for everyone. Browse 100+ picks

Spotting green business opportunities in a surging net-zero world

Explore how eight industries may transition to a net-zero world, and how organizations can respond with green businesses that create value along the way. Make bold moves

My Rookie Moment

McKinsey senior colleagues share their formative early-career experiences to help you navigate yours. Watch the latest episode

The McKinsey Crossword

Sharpen your problem-solving skills the McKinsey way, with our weekly crossword. Play now

McKinsey Classics

Hard times call for creative solutions. How can companies maintain or improve their service levels while managing costs? Read our classic article, “Maintaining the customer experience.” Rewind

Readers & Leaders

Read a sample of our Readers & Leaders newsletter, and sign up for it or any of our 40+ free email subscriptions. Subscribe

— Curated by Eleni Kostopoulos, a digital publishing manager in McKinsey’s New York office

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by "McKinsey Highlights" <publishing@email.mckinsey.com> - 11:22 - 3 Sep 2022

Voltage ideas, biases, and more essential reads: The Daily Read weekender

Harmony Internal - McKinsey

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CURATED PICKS FOR YOUR DOWNTIME, FROM OUR EDITORS

Joyce Yoo
Digital Editor, New York

It's Labor Day weekend in the US and the unofficial end of summer. Take a moment over the long weekend to dive into some of this week's big reads on biases, hybrid selling models, voltage ideas, and more.

Illustration of a small red ball on blue strings

Cognitive and organizational biases can get in the way of good decision making. Eileen Kelly Rinaudo, Tim Koller, and Derek Schatz offer some ways to address this.

Don’t get sidetracked

As Medtech companies become more omnichannel, implementing remote sales models will help deliver consistent experiences across the buying journey, according to Eric Buesing, Delphine Nain Zurkiya, and their coauthors.

Drive growth with hybrid

Economist John List talks to McKinsey senior partner Yuval Atsmon about how business leaders can assess whether an idea has the power—or the voltage—to successfully scale in a new episode of the Inside the Strategy Room podcast.

Tune in

Our weekly briefing note on sustainable and inclusive growth explores efforts to decarbonize the transport sector.

Get the latest update

Quote of the day

“Industrialized machine learning (ML) uses software and hardware solutions to accelerate the development and deployment of ML and to support performance monitoring, stability, and ongoing improvement.”

—Learn more about industrializing machine learning in “McKinsey Technology Trends Outlook 2022"

Chart of the day

Chart of global investments in sustainable fuels

In an interview at the M30 Mobility Summit, Navistar’s Michael Grahe shares his views on the latest developments in mobility.

ready to unwind?

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Overcoming obstacles to the electrification of transportation

Collaborate and adapt

Space: Building a digital infrastructure above the sky

Venture capitalist Mark Boggett offers an investor’s view of the strides being made in space technology, its practical applications, and its potential impact.

Seize the opportunity

17-Across: I wanted to build a green business, so I flew to Ireland, the ___ ...

Know the answer? Test yourself with the latest McKinsey Crossword, Green Business | No. 91.

Go green

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Motivated reasoning can lead people to believe everything’s fine despite evidence to the contrary. Here’s how to counter emotions with facts.

by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 06:53 - 2 Sep 2022

Bias busters: When good intentions get derailed

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New from McKinsey Quarterly

Bias busters: When good intentions get derailed

Don’t get sidetracked

Related Reading

Bias busters: When the crowd isn’t necessarily wise

Dive into Author Talks

McKinsey Insights - Get our latest thinking on your iPhone, iPad or Android.

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by "McKinsey Quarterly" <publishing@email.mckinsey.com> - 02:04 - 2 Sep 2022

Does ESG really matter? How forward-looking companies see it.

The Shortlist

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OUR BEST IDEAS, QUICK AND CURATED | SEPTEMBER 2, 2022

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Edited by Barbara Tierney
Senior Editor, New York

This week, why the backlash to ESG misses the more sweeping business case for doing it. Plus, three scenarios for the US economy, and Japan’s banks play a bigger role in growth.

Illustration of a digital plant with large blue leaves spreading away from the stem

The focus on ‘ESG’ (environmental, social, and governance) principles has steadily increased since the term was coined nearly 20 years ago. Companies of various sizes across industries and geographies have been allocating more resources toward improving ESG. More than 90 percent of S&P 500 companies now publish ESG reports in some form, and in a number of jurisdictions, reporting ESG elements is either mandatory or under active consideration for being so. Inflows into sustainable funds rose from $5 billion in 2018 to nearly $70 billion in 2021.

Valid questions. At the same time, a growing chorus of critics asserts that the importance of ESG has peaked. They say ESG is just a distraction from more pressing global matters ; it’s not feasible because it’s too intrinsically difficult to measure; and there is no meaningful relationship with financial performance. Others have argued that ESG represents an unstable combination of elements and that attention should focus only on the “E” part: environmental sustainability. In “Does ESG really matter—and why?,” senior partners Lucy Pérez , Vivian Hunt , and team acknowledge these concerns but unpack the business-grounded, strategic rationale.

Valid answers. The article notes that true ESG is consistent with a well-considered strategy that advances a company’s purpose and business model. Long-term value is created from the perception by stakeholders that a business is acting in a way that is fair, appropriate, and deserving of trust. A precondition for sustaining such long-term value is to manage, and address, externalities. Companies can conduct their operations in a seemingly rational way, aspire to deliver returns quarter to quarter, and determine their strategy over a span of five or more years. But if they assume that the base case does not include externalities or the erosion of social license by failing to take externalities into account, their forecasts may not be achievable at all.

A playbook. Organizations that are successful with ESG approach it in a rigorous, strategy-driven, socially attuned way. They make ESG intrinsic to their strategy by defining, implementing, and refining a carefully constructed portfolio of initiatives that connect to the core of what they do. They also contribute to a competitive landscape where good corporate citizenship is marshaled against existential challenges, including climate change . They also act to operationalize ESG throughout the organization, sync it with operations, follow through on initiatives to ensure impact, and discern what the numbers do and do not say about ESG.

While ESG measurements are still a work in progress, there have been advancements in reporting and disclosure, as well as regulation. It is worth bearing in mind that financial accounting arose from stakeholder pull, not from spontaneous regulatory push, and did not materialize, fully formed, along the principles and formats that we see today. Rather, reporting has been the product of a long evolution—and a sometimes sharp debate. Amid a thicket of metrics, estimates, targets, and benchmarks, managers can miss the point of why they are measuring ESG in the first place: to ensure that their business endures , with societal support, in a sustainable, environmentally viable way.

OFF THE CHARTS

Boom, bust, or something else?

Chart of potential U.S. GDP growth scenarios over the next five years

The US economy is running both hot and cold, confounding even the most intrepid forecasters. The labor market is as tight as it’s ever been, and inflation remains stubbornly high . At the same time, GDP growth has slowed and consumers are holding back . Is this the end of a boom, the beginning of a bust, or something different? In McKinsey’s latest survey of business executives, more than half said that a recession is due to arrive this quarter or next and will last, in the most pessimistic scenario, for up to five quarters. But nearly half thought a recession could be avoided. At a time like this, forming a view of the economy’s likely direction is even more difficult than usual, so companies ought to avoid a single-point forecast. They can instead consider a set of three scenarios that capture the range of disruptions that could further bedevil the US economy.

Check out our chart of the day here.

INTERVIEW

Hailing more than a ride

Careem, the Middle Eastern ride-hailing pioneer, is using AI to provide customers with the most accurate and up-to-date estimated times of arrival by factoring in a host of conditions, including local weather conditions, prayer times, and even iftar times during Ramadan. In this interview with McKinsey, Selim Turki, head of data and AI at the Uber-owned mobility company, talked about what it means to be an “AI first” company and the outlook for AI tech—and talent—in the region.

More on McKinsey.com

Banking on growth: Ensuring the future prosperity of Japan | Following the launch of Japan’s national strategy to revitalize growth, Japanese banks have renewed opportunities to become engines of prosperity by playing various roles in support of growth.

The growth triathlon: Three pathways to extraordinary growth in the consumer sector | For consumer companies to grow fast and profitably, they must expand their cores, tap into adjacencies, and ignite breakout businesses—all at the same time.

Pricing during inflation: Active management can preserve sustainable value | Most industrial companies recognize the need to address inflation, but many lack the capabilities to do so effectively. Managers should build their plans across three time horizons and adjust their strategies with specific tools and techniques.

PARTING QUOTE

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BACKTALK

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TODAY’S NEWS. TOMORROW’S INSIGHTS.
A daily newsletter from McKinsey & Company

by "McKinsey Shortlist" <publishing@email.mckinsey.com> - 02:51 - 2 Sep 2022

Which cutting-edge technologies are organizations adopting most quickly?

On Point

Edited by Belinda Yu
Editor, Atlanta

Transformative technology trends

The news

•

Curb appeal. From sunup to sundown, city curbs are bustling with activity from deliveries, pickups, and drivers jockeying for parking throughout the day. As streets become more clogged, US municipal leaders are turning to technology to examine how curbs are used and help manage the flow of traffic. One system employs AI to analyze data from digital images of the curb captured by wireless cameras. Using the cameras, a Southern city discovered that most vehicles on its Main Street were only parked for up to 15 minutes at a time. [NYT]

•

From CTO to CEO. For two decades, a majority of newly appointed CEOs at S&P 500 companies have come from a handful of titles like COO and CFO. But a spate of recent CEO appointments this summer, including two companies that have tapped their former CTO and CIO for the top job, demonstrate that technology leaders are increasingly being considered CEO material. As more companies recognize the need to stay abreast of advanced technologies, ambitious leaders with technical backgrounds may have new opportunities. [CNBC]

Despite the uncertainty of these newer trends, most industry sectors we looked at display a meaningful association with five or more technology trends.

Our insights

•

Fourteen tech trends. It’s tough to predict how different technology trends will play out. Still, organizational leaders who track the development of new technologies and anticipate how they might be used to catalyze change will be better prepared for the future, say McKinsey senior partner Lareina Yee and colleagues. Fourteen cutting-edge technologies—including applied AI, advanced connectivity, and bioengineering—are among the most significant trends unfolding today, reveal experts at the McKinsey Technology Council.

•

Going mainstream. To gauge how quickly organizations are adopting various technologies, McKinsey examined search engine queries, news coverage, patent filings, research activity, and public and private investment. For example, applied AI, a field that attracted $165 billion in investment in 2021, scored a 4 out of 5 on McKinsey’s adoption rate scale (with 0 meaning no adoption to 5 meaning that the technologies have gone mainstream). See our interactive on the technology trends that matter most.

Explore the technologies

Or send us feedback — we’d love to hear from you.

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by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:51 - 2 Sep 2022

Why it’s time for companies to reframe the tech talent search

Harmony Internal - McKinsey

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Providing the kind of experience and skill building that augments human capital can open up a much broader pool of candidates.

Edited by Emily Adeyanju
Digital Editor, Charlotte

As more companies look to build their digital capabilities, the competition for tech talent has become a big barrier. While demand is growing for skills such as software engineering, data management, and cybersecurity, there’s a shortage of candidates that meet the long lists of criteria often attached to these positions. And attracting seasoned talent is even harder for those outside of the tech sector itself. So what’s an employer to do: hold out for the unicorn, or hire someone with potential who can add technical skills? Reframing the notion of the “ideal candidate” may be a game changer. Check out a new article from McKinsey partners Davis Carlin, Anu Madgavkar, Angelika Reich, and senior partner Dana Maor for insight on how to attract, retain, and develop tech talent.

Overcoming the fear factor in hiring tech talent

Revamp your strategy

Quote of the day

“By reducing the need for multiple excavations, a dig-once policy can promote better use of public resources, and potentially help mitigate property damage, service outages, traffic disruptions and accidents, and other potential hazards to public safety.”

—Get insight on the benefits of a 'dig once' approach in infrastructure projects in "'Dig once’ could help states manage material and worker shortages"

Chart of the day

Chart detailing that the largest share of parents in all quantyum technologies belong to belong to China

ALSO NEW

Follow our thinking

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TODAY’S NEWS. TOMORROW’S INSIGHTS.
A daily newsletter from McKinsey & Company

by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 05:14 - 1 Sep 2022

The food system requires exquisite balance. War and climate change are shaking it.

On Point

Edited by Katy McLaughlin
Senior Editor, Southern California

Global food security at risk

The news

•

Having a dry spell. A heat wave in parts of China is the worst since the start of record keeping in 1961. Drought in Southern Europe is the worst in 500 years. But that’s nothing compared with the drought in the American West—the worst in 1,200 years. Summer droughts are intensifying pressure on the world’s energy and food systems, which are already strained from the war in Ukraine. Expect the cotton harvest in the US to decline by at least 40% and European olive oil yields to drop by as much as 33% if the hot and dry spell persists. [WSJ]

•

A shortage smorgasbord. There’s a long list of reasons specific food items have either disappeared from shelves or shot up in price in different countries. Americans hankering for the kick of hot sauce can blame drought for chili pepper shortages, while a dearth of foreign dairy workers has Britons paying more to butter their bread. Meanwhile, Pakistanis are being urged to drink less tea due to low foreign-currency reserves. Grain shortages, provoked by the war in Ukraine, mean less bread and grain in Lebanon and Somalia. [WaPo]

Depending on the duration and severity of the war, the caloric requirements of 250 million people could be lacking from the global supply.

Our insights

•

A breadbasket at war. Direct effects of the war in Ukraine may reduce the world’s grain supply by 18 million to 22 million metric tons this year. Next year could be even worse. The combined effect of challenges in farming (such as reduced farmland due to land mines and ongoing military action) and complications with exports logistics could erase up to 44 million metric tons from Ukraine’s typical export volumes. High harvests and increased exports from various parts of the world may mitigate these reductions, but only slightly.

•

Complex consequences. More than 1.4 billion people live in countries that rely heavily on grain imports, have limited stocks, and have low purchasing power. As food supplies constrict, these nations will face elevated inflation, which will exacerbate budgetary stress. Malnutrition levels could also rise. Previous food crises have led to periods of political instability and violence; the risks could be even higher in this crisis. See our analysis of current food security risks, how next year could unfold, and how to mitigate the current crisis.

Understand food risks

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by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:16 - 1 Sep 2022

Strategic courage in an age of volatility

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We are living through volatile times—the war in Ukraine, inflation, the pandemic, and supply chain disruptions have all contributed to a challenging environment in recent years. So what can be done to weather the storm and thrive amidst uncertainty? The most effective leaders and companies play both offense and defense, and are “prudent about managing the downside while aggressively pursuing the upside,” according to a new article from McKinsey’s Michael Birshan, Ishaan Seth, and Bob Sternfels. See how honing an edge on insights, commitment, and execution can help leaders make bold strategic choices.

Edited by Joyce Yoo
Digital Editor, New York

Strategic courage in an age of volatility

Today’s challenging environment requires business leaders to hone their edge in three critical areas: insights, commitment, and execution.

Focus now

Quote of the day

“Even top-tier tech companies tend to focus on either transformative selling or digital, product-led growth—but not both. In the future, it will be difficult to win in one without getting the other right.”

—Get updated on the four critical pivots in enterprise tech go-to market in "The digital reinvention of enterprise tech go-to-market"

Chart of the day

Here’s how to build a comprehensive, measurable, and objective end-to-end risk appetite framework as a foundation for managing technology risk and cyber risk.

ALSO NEW

Creating a technology risk and cyber risk appetite framework

Support communication

Book cover for The Upside of Uncertainty: A Guide to Finding Possibility in the Unknown

Author Talks: Into the unknown

Nathan Furr and Susannah Harmon Furr provide a tool kit for navigating the growing uncertainty we face in our lives.

Be capable

Delivering the US manufacturing renaissance

The stage is set for a manufacturing resurgence in the United States. Can the country’s producers make it happen?

Embrace the change

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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.

by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 06:45 - 31 Aug 2022

Top 5 from the McKinsey Quarterly

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Top 5 from the McKinsey Quarterly

In case you missed these top McKinsey Quarterly articles, we’ve bundled them up here for another chance to check them out. We hope you enjoy them as much as other readers have—and that you share them with colleagues and friends who might also be interested.

The Great Attrition is making hiring harder. Are you searching the right talent pools?

Reassess now

Gone for now, or gone for good? How to play the new talent game and win back workers

Nearly half of the employees who voluntarily left the workforce during the pandemic aren’t coming back on their own. Employers must go and get them. Here’s how to start.

Understand employee priorities

A military veteran knows why your employees are leaving

She also knows what you can—and can’t—do about it. Here are three surprising lessons from a veteran of the wars in Iraq and Afghanistan.

Understand the Great Resignation

‘Find the smartest technologist in the company and make them CEO’

In the first episode of the new The Quarterly Interview: Provocations to Ponder series, Silicon Valley’s Marc Andreessen tackles tech trends like artificial intelligence, crypto, and Web3—and why incumbents still have a tough time competing with digital start-ups.

Join the conversation

Marketing in the metaverse: An opportunity for innovation and experimentation

Although widespread adoption of the metaverse may take some time, leading brands are already rewriting the rules of marketing.

Understand digital strategies

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by "McKinsey & Company" <publishing@email.mckinsey.com> - 04:39 - 31 Aug 2022

US consumers are feeling gloomy about the economy. What’s their biggest concern?

On Point

TODAY’S NEWS. TOMORROW’S INSIGHTS.
A daily newsletter from McKinsey & Company

Edited by Belinda Yu
Editor, Atlanta

Catching up with US consumers

The news

•

Still spending. For all of their worrying about the economy, American consumers—though anxious—are still opening up their wallets. In June 2022, one index of consumer sentiment fell to its lowest point since 1952, implying that consumers today are more downbeat than they’ve been throughout the entire COVID-19 pandemic. But while US consumers report being very gloomy, major retailers aren’t seeing that pessimism reflected in their earnings, and some are even recording record sales. For now, low morale has not yet dented spending. [FT]

•

Stable sales. Despite rising prices, US consumers are continuing to tackle home improvement projects, update furnishings, and buy personal-care products—all categories that have seen increasing sales. Overall retail sales remained flat between June and July 2022, but one gauge of spending that leaves out gas and car sales increased 0.7% over the same period. One big-box store says that shoppers are still spending, but they’re feeling the pinch of inflation more and more. Some are coping by buying cheaper groceries such as beans instead of beef. [WSJ]

With the exception of Gen Z, higher-income consumers of all ages say that their spending will continue to grow whether or not they’re buying necessities or discretionary goods.

Our insights

•

Feeling glum. With inflation surging to record highs, US consumer confidence has in turn dipped to a new low, find McKinsey senior partner Kelsey Robinson and colleagues. According to our latest Consumer Pulse Survey, 30% of respondents are feeling downbeat about the economy, doubling the amount who were feeling glum throughout the entire COVID-19 pandemic. Americans are overwhelmingly concerned about inflation, and along with it, rising prices. Nearly two-thirds of survey respondents cited inflation as their top worry.

•

Strong savings. Consumer confidence is low overall, but there are still signs of hope. US consumers have twice as much saved in cash as they did before the pandemic. In addition, although real spending is slowing down, some categories and channels are still growing. Cosmetics, grocery stores, and pet supplies are all experiencing double-digit sales growth. Credit and debit sales at wholesale clubs and discount stores are also going strong. See four areas companies can focus on as they grapple with shifts in sentiment and spending.

Understand US consumers

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Keep your customers happy

by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:42 - 31 Aug 2022

How to monetize your audience

A close-up of a man in a blue button-up shirt and white t-shirt writing in a notebook.

You worked hard to build a devoted blog audience. Now, how do you turn that into revenue?

An online store might be the solution for you. Elina is here to explain how bloggers can monetize through merchandise, tips, paid newsletters, and more.

Monetize your audience

New in our Marketplace

Pages of the Basti theme displayed on a desktop and mobile device.

Stand out with clean, eye-catching design

Fashion meets function in Basti, our new minimalist theme that makes customization simple.

Create a beautiful, mobile-first site in minutes with four distinct premade layouts – then adjust each element directly from the page editor.

Build a minimalist store

Automate your customer support tickets

Offer users a remarkable support experience with WSDesk.

Every customer message is automatically converted into a ticket that is tagged, assigned, and tracked within the extension, so you’ll never miss a support request.

Bite-sized updates

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by "WooCommerce" <noreply@woocommerce.com> - 10:15 - 30 Aug 2022

Delivering the US manufacturing renaissance

Harmony Internal - McKinsey

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The stage is set for a manufacturing resurgence in the United States. Can the country’s producers make it happen?

Edited by Joyce Yoo
Digital Editor, New York

Did you know that manufacturing accounts for $2.3 trillion in GDP and employs 12 million people in the United States? While growth in manufacturing has fallen in the US in recent decades, some recent trends show the potential for a resurgence. An effective transformation of the US manufacturing economy could add up to 1.5 million jobs and boost the US GDP by $275 billion, according to analysis by the McKinsey Global Institute. So what will it take to reinvent the sector and unlock opportunities? Eric Chewning, Mike Doheny, Anu Madgavkar, Asutosh Padhi, and their coauthors explore the changing landscape of manufacturing and how US companies can successfully overhaul their position in the market in a new article. And for more insights on the future of the American economy, be sure to check out the upcoming book, The Titanium Economy by McKinsey authors Asutosh Padhi, Gaurav Batra, and Nick Santhanam.

Delivering the US manufacturing renaissance

Embrace the change

Quote of the day

“To manage technology risk and cyber risk effectively, organizations must lay out an objective risk appetite framework that supports business decisions on risk and uses objective metrics and reporting to achieve alignment with the risk appetite.”

—Understand the importance of managing risks in "Creating a technology risk and cyber risk appetite framework"

Chart of the day

Chart detailing consumers pessimism about the economey is double what it was through the pandemic.

Our latest survey shows global supply chains on the move.

ALSO NEW

Taking the pulse of shifting supply chains

Read more

Clean skies for tomorrow: Delivering on the global power-to-liquid ambition

As aviation shifts from fossil to sustainable fuels, power-to-liquid fuel could emerge as a critical pathway, with reductions in greenhouse gas emissions of up to 100 percent.

Fly high

A row of bright orange construction barriers

‘Dig once’ could help states manage material and worker shortages

Multiple excavations for infrastructure improvements can be disruptive to the public. Coordinating projects could minimize negative impacts and help states manage supply chain and labor shortages.

Plan early

Follow our thinking

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TODAY’S NEWS. TOMORROW’S INSIGHTS.
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by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 05:13 - 30 Aug 2022

[August Update] All the tools you need 🔨 to master global hiring

Hi MD,

It's easy to feel overwhelmed when you manage a distributed team — but have no fear! Remote is here with a host of helpful tools, great new guides, and time-saving integrations. Whether you want to help your team avoid burnout or run the numbers for a new international hire (or several of them), we have just the thing.

Effectively budget for global hires

Remote's free cost calculator shows you the cost to hire an employee in a new country so you can more effectively budget for your global team!

To use our employee cost calculator, simply enter your new employee’s location, title, and salary. We’ll then calculate the cost to hire in that country based on that employee’s salary. Compare across multiple countries and job titles to plan ahead!

PARTNERSHIP NEWS

Streamline your HR program with our new HiBob integration

We love making things easier for our customers. ❤️ Now, Remote customers can connect their Remote and HiBob accounts to automatically sync employee data across platforms for even faster onboarding. Less time spent on duplicate data entry means more focus on helping new employees and contractors reach top productivity faster. 🚀

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Have you visited the Partner Marketplace?

Building globally distributed teams demands a world of help. Discover trusted partners to help solve your biggest business challenges. Plus, Remote customers get special discounts from our partners through the marketplace.

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How to improve the life-work balance of your employees

How can you prevent burnout in remote teams? Global HR experts from Greenhouse and Remote share practical advice to help you support and improve the life-work balance of your distributed team. Download our newest guide to better motivate, support, and retain your team.

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Where to Hire Report

We teamed up with Kamsa to create a powerful, live database of the best places to hire based on cost, roles, talent availability, and more. Compare the costs of hiring and finding talent across 16 countries, then sort by benefits requirements and timezones!

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NEW EVENTS

Remote hits the road!

Remote is excited to announce that we will be hitting the road this September as we participate and sponsor a number of exciting events. Whether you are based in Europe or North America or are in the Legal, HR, or Financial sectors, this will be your opportunity to meet the Remote team!

Remote's VP of People, Nadia Vatalidis, will take the stage at Zukunft Personal Europe discussing "Remote-first vs. remote-forced: how to make remote work the core of the company." While Sam Ross, Remote's General Counsel, will discuss "Global hiring—opportunities and risks" in New York. Or catch our VP of Finance, Pedro Barros, in a panel discussion with MultiChoice Group and General Mills on "Tomorrow’s treasurers today: finding, retaining and retraining staff."

Where we will be:

Zukunft Personal Europe, Cologne, on September 13-15
Economist: General Counsel US, New York, on September 15
EuroFinance, Vienna, on September 21-23
Internal Communications Conference, London, on September 22

Check our events page for more information on all the upcoming events or click here to submit a meeting request.

Check out our events page

from the blog

Workato trusts Remote for stress-free compliant hiring in new countries

When Workato wanted to expand its team, its leaders needed a rock-solid guarantee they would be compliant when hiring in new countries. See how Remote gave Workato’s leaders the confidence they needed to hire abroad.

Read their story

The future of digital jobs: Which skills will be the most important to businesses?

If you’re considering a new role, just starting out in your career, or looking to improve on your skill set within digital industries, you need an understanding of which skills are the most important.

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On-Demand Webinar: The Practical Approach to Growing Remote Teams

Missed the live event? We've got you covered. Watch as Remote's VP of People Nadia Vatalidis joins experts from Loom to share real-world strategies that have helped maximize productivity and promote great culture within their remote work environments.

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by "Remote" <hello@remote-comms.com> - 11:02 - 30 Aug 2022

Discover 11 ways you can use modern observability to drive results across your business

Observability is becoming mission-critical but what have we learned about how the industry uses observability? In our infographic, “2022 O11y Trends Report at a Glance” we looked at what we have learned about observability this year. We found out that:

90% of IT leaders thought it was essential to them in 2022
72% of people have to toggle between 2 tools and 13% used more than 10 tools to monitor the health of their systems
Observability cultivates collaboration among engineering teams

Download the Infographic

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by "New Relic" <emeamarketing@newrelic.com> - 05:36 - 30 Aug 2022

The dearth of automotive chips drags on. Can the auto industry get creative?

On Point

Edited by Sarah Thuerk
Copy Editor, Atlanta

Semiconductor scarcity

The news

•

Auto opt out. The one-two punch of inflation and strained supply chains is putting a dent in the demand for autos in Europe. European passenger-vehicle sales in June were 15.4% lower than the year before, with consumers snapping up fewer than 900,000 cars. That marks the worst month of auto sales for the region in more than 25 years. Supply chain problems arising from a worldwide shortage of computer chips are largely responsible for the dip, but rising inflation also has consumers holding off on making big purchases. [Fortune]

•

Motor-less City. The longtime heart of the US auto industry is idling. Global shortages of semiconductors—essential components of vehicles’ electrical systems—are stalling sales all over the country, including in a famed hub of car manufacturing. Some dealerships receive new cars with missing components that rely on computer chips. One dealer refers to these as “build shy,” since the cars are almost ready to sell but still shy of parts. Inflation has put the cost of new and used cars alike out of reach of the factory workers who build them. [WaPo]

The auto industry has quickly moved to deal with the chip shortage, but even more decisive action is necessary, especially since the situation is likely to persist far into 2023.

Our insights

•

When the chips are down. Automakers are in a tenuous position as the gap between computer chip supply and demand widens. Many OEMs and suppliers that order car parts close to production decreased their chip orders when car sales fell in 2020. This left them low in inventory when demand for cars increased, according to McKinsey senior partner Ondrej Burkacky and colleagues. The auto sector is stockpiling chips, but producing them can take at least four months, and often longer. Overordering is also part of the problem.

•

Looking long term. There aren’t short-term solutions for the current chip crisis, but companies can ensure their continued resiliency by developing longer-term strategies. OEMs and auto suppliers often have “control rooms” composed of procurement, sales, and supply chain staff who solve immediate chip needs. But these teams may lack the needed tools, skills, or capacity to develop lasting, strategic solutions. Explore three crucial ways to manage the semiconductor shortage in the immediate future and beyond.

Build a technology road map

Or send us feedback — we’d love to hear from you.

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by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:51 - 30 Aug 2022

Uncertainty can be an opportunity

Harmony Internal - McKinsey

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Whenever we embark on something new, we are faced with uncertainty. Instead of stressing about things that cannot be controlled, fully embracing uncertainty can be an opportunity for positive change and possibility, according to authors Nathan Furr and Susannah Harmon Furr. In a new Author Talks interview, they lay out tools to help navigate unchartered waters and turn unpredictable, often difficult situations into opportunities for growth, innovation, and creativity. Check it out and see how letting go can help activate and unlock our potential. And for more insights on managing amidst uncertainty, tune into this episode of the Inside the Strategy Room podcast with McKinsey’s Sean Brown, Patrick Finn, Mihir Mysore, and Ophelia Usher.

Edited by Joyce Yoo
Digital Editor, New York

Author Talks: Into the unknown

Nathan Furr and Susannah Harmon Furr provide a tool kit for navigating the growing uncertainty we face in our lives.

Be capable

Quote of the day

“What the metaverse is really all about is community. The value of belonging to this community. The role you can play as a user in this community so that you feel like a stakeholder and not as a ‘user.’”

—Brian Solis, global innovation evangelist at Salesforce, on how businesses should approach the metaverse in "Building the next big experiences" as part of McKinsey's Metaverse Talks series

Chart of the day

Chart detailing potential value pools worth more than 12 trillion of yearly revenues by 2030

As customers demand both transformational expertise and simplified, self-serve experiences, the traditional enterprise sales playbook is being disrupted from the top down and bottom up.

ALSO NEW

The digital reinvention of enterprise tech go-to-market

Personalize at scale

Man in biking helmet holding packages and delivery bag, looking at phone

Freelance, side hustles, and gigs: Many more Americans have become independent workers

Independent work is booming, the American Opportunity Survey shows. For these workers and society, the upsides and drawbacks are all part of the gig.

Understand the shift

Perspectives on model risk management of cybersecurity solutions in banking

The sooner banks start their journey and establish an effective approach to model risk management of cybersecurity solutions, the quicker they will be able to manage risk and establish controls.

Build your capabilities

Follow our thinking

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She also knows what you can—and can’t—do about it. Here are three surprising lessons from a veteran of the wars in Iraq and Afghanistan.

by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 06:35 - 29 Aug 2022

In case you missed it: A military veteran knows why your employees are leaving

Harmony Internal - McKinsey

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New from McKinsey Quarterly

A military veteran knows why your employees are leaving

Understand the Great Resignation

McKinsey Insights - Get our latest thinking on your iPhone, iPad or Android.

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by "McKinsey Quarterly" <publishing@email.mckinsey.com> - 04:58 - 29 Aug 2022

Most popular recent issues—and a brief pause

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Thanks for your continued interest in Leading Off—and for joining tens of thousands of other subscribers to make it one of our fastest-growing newsletters. Because leaders need a break too, Leading Off will be taking a brief, two-week pause, but we’ll be back in your inbox on September 12.

In the meantime, you can always browse through past issues here, and below are three of our favorite recent issues featuring some of our most-read articles. Take a look in case you missed them the first time around.

And if you have friends or colleagues you think might enjoy Leading Off when it’s back, we hope you’ll consider forwarding this email or sharing it on LinkedIn, Twitter, or Facebook. If they want to get future issues in their inbox—or to see our 40+ other free email products—they can sign up at mckinsey.com/subscriptions. (You might want to check it out, too, to revisit your subscriptions or find out about new publications.)

A leader’s guide to personal development

What really motivates people to grow and change? A leader’s guide

A leader’s guide to solving even the toughest problems

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