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by "Phil Weber, New Relic" <emeamarketing@newrelic.com> - 04:05 - 11 May 2022 -
Hiring? Look to your existing employees first.
McKinsey&Company
Staving off attrition .Acting on attrition In the news • The gray resignation. Of the five million US workers who left their jobs during the COVID-19 pandemic, the majority—nearly 70%—were 55+. In the UK, meanwhile, the employment rate of over-50 workers fell twice as much as that of workers aged 25 to 49 in 2020. Older workers are leaving the workforce at high rates, reversing a prepandemic trend of older workforces and leaving behind substantive skills shortages. [FT] • The great job switch. About 64% of recent job switchers report that their new job pays more, and nearly 9% say that they’re earning at least 50% more, according to a recent survey of more than 2,000 workers in the US. The job-switching trend is expected to continue: one-fifth of workers aged 25 to 54 expect to leave their current job within a year, and one-fourth expect to stay just one or two years. [WSJ] “Across the board, you see workers saying … if I’m going to go to work, it actually needs to matter.” On McKinsey.com • Acute talent shortage. Workers want more flexibility, more career mobility, more money, and—crucially—greater purpose. STEM [science, technology, engineering, and mathematics] workers especially are leaving their jobs for similar ones that pay more. The ongoing talent shortage is real and may get worse. But as leaders go on the lookout for talent during this Great Attrition, they may be overlooking their best internal talent. • Go internal. McKinsey’s Emily Field, Bryan Hancock, and Bill Schaninger discuss on a recent episode of McKinsey Talks Talent how an internal talent marketplace—an AI-enabled platform that matches openings with internal employees—could help organizations bridge talent supply and demand. Such a marketplace, they posit, can democratize the hiring process and reduce bias by creating more transparency into relevant jobs. The benefits are massive: workers can move into well-fitting internal roles, while employers retain people rather than watch them leave. — Edited by Justine Jablonska Make the match Was this forwarded to you? Sign up here. Or send us feedback — we’d love to hear from you. Follow our thinking This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to the On Point newsletter. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007
by "McKinsey On Point" <publishing@email.mckinsey.com> - 10:09 - 10 May 2022 -
War in Ukraine: Twelve disruptions changing the world
the Daily read
Navigate the crisis .Share this email AN ARTICLE A DAY, PICKED BY OUR EDITORS As the world grapples with the devastating effects of the war in Ukraine, there is much uncertainty on what the future holds. Amid these challenges, it’s crucial to understand how short- and mid-term disruptions—related to the humanitarian crisis, energy dynamics, food security, supply chain management, and more—are affecting lives and livelihoods. A new data-driven article dives deeper with 12 charts on the most pressing issues, offering a useful lens for companies and leaders during scenario planning and other efforts. Don’t miss it. — Joyce Yoo, digital editor, New York War in Ukraine: Twelve disruptions changing the world The war is devastating lives and roiling markets. Here we track the disruptions that seem likely to shape lives and livelihoods, beyond the immediate crisis. Navigate the crisis Quote of the Day —Alan Murray, CEO of Fortune Media, on how business leaders handle non-core business issues in a recent Author Talks interview Chart of the Day See today’s chart Also New Reimagining the future of financial-services headquarters The stakes are high for financial-services firms to reorient their offices around learning, inclusion, and innovation. Keep up When—and how—to prepare for post-quantum cryptography While quantum computers may not be able to crack conventional encryption protocols until 2030, many cybersecurity and risk managers should evaluate their options now. Evaluate your options Navigating America’s net-zero frontier: A guide for business leaders The US government has a goal: net-zero emissions by 2050. Our analysis maps out a pathway to this net-zero frontier—and the growth opportunities that $27 trillion of capital spending could create. Achieve climate solutions Follow our thinking Share these insights Did you enjoy this newsletter? Forward it to colleagues and friends so they can subscribe too.
Was this issue forwarded to you? Sign up for it and sample our 40+ other free email subscriptions here.This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to the Daily Read newsletter. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007
by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 06:50 - 10 May 2022 -
How will global capital shift in the race to net zero?
McKinsey Quarterly
Get your Five Fifty .The Great Reallocation After years of companies playing defense with sustainability, the landscape has shifted to an emerging growth opportunity—for those savvy enough to seize it. Get your briefing A shift in spending from high- to low-emissions assets could create the largest reallocation of capital in history—a potential boon for the environment and the economy alike. Get spending Follow our thinking This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to our McKinsey Quarterly Five Fifty alert list. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007
by "McKinsey Quarterly Five Fifty" <publishing@email.mckinsey.com> - 02:04 - 10 May 2022 -
Climate tech offers hope, but only if enough investment is deployed
McKinsey&Company
Techie fixes for climate change .Cool climate tech In the news • Deus ex machina. Technology got us into this mess, but it also might get us out of it. Energy experts point to tech with the potential to either slow or reverse climate change. Ground-source heat pumps and high-efficiency air conditioners offer more efficient heating and cooling. Direct air capture can remove carbon dioxide from the atmosphere and can operate in any location. Next-generation nuclear power plants and clean electric grids are not fantasies but real options currently being built. [WSJ] • Mind the (funding) gap. Cryptocurrency, the metaverse, and NFTs excite investors looking for the next big thing. That’s a problem for European companies aspiring to raise money for viable climate-change solutions. Investors get excited about start-ups, but funds tend to dry up at the scaling phase that could convert an idea for a better battery or sustainable aviation fuel into a game changer. European companies say that investors will only pony up the hundreds of millions of dollars needed if regulations compel the use of sustainable products and systems. [NYT] Scaling up interdependent climate technologies often requires a more cooperative approach than businesses might be accustomed to. On McKinsey.com • Great need. To reach net zero by 2050, capital spending on low-emission equipment and infrastructure would need to average about $6.5 trillion a year. The annual production of clean hydrogen would need to increase more than sevenfold, requiring an additional $540 billion of investment. The global capacity of long-duration energy storage must increase by a factor of 400 by 2040, which will depend on innovations in chemical, electrochemical, mechanical, and thermal technologies. • Cooperate to compete. Climate technologies are interdependent, so competing in these markets often requires cooperation across value chains and industrial ecosystems. The success of climate technologies, including green methanol, green hydrogen, green steel, and carbon capture, depends on first being able to generate and store renewable electricity. Read on to learn why executives shouldn’t wait for a supportive ecosystem to form, and how they can gain big first-mover advantages. — Edited by Katy McLaughlin Accelerate climate tech Was this forwarded to you? Sign up here. Or send us feedback — we’d love to hear from you. Follow our thinking This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to the On Point newsletter. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007
by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:35 - 10 May 2022 -
Reinventing office spaces for financial-services firms
the Daily read
Keep up .Share this email AN ARTICLE A DAY, PICKED BY OUR EDITORS For financial-services firms, physical spaces—including flagship offices, branches, and satellite offices—have traditionally been an important part of the workforce’s experience. But over the past couple of years, the way we think about physical offices has changed—and now is the time for financial-services firms to reinvent the concept of the headquarters and prepare for the future. Want to learn more about how to future-proof your office? Check out a new article, which outlines ten bold moves that can reorient offices around learning, inclusion, and entrepreneurial collaboration. — Joyce Yoo, digital editor, New York Reimagining the future of financial-services headquarters The stakes are high for financial-services firms to reorient their offices around learning, inclusion, and innovation. Keep up Quote of the Day “Being a mother has helped me to become a better professional. I’m far more efficient and much more comfortable with uncertainty. I have become much more aware of my teams’ and clients’ needs, feelings, and unstated thoughts. Motherhood has opened my mind and heart.” —Valentina Ibarra, McKinsey partner, on being a working mother in “Parent, employee, all of the above? Eight working mothers on the realities of post-pandemic life” Chart of the Day See today’s chart Also New Meeting the challenge of moms’ ‘double double shift’ at home and work As the United States emerges from the pandemic, how can businesses build a more inclusive working environment to improve outcomes for women in the workforce? Listen and learn Forward Thinking on democratizing technology with Anne-Marie Imafidon “Having a computer science degree should not be a prerequisite for being one of the only people in control of what happens next. It’s about democratizing. It’s about giving folks agency so we can make collective decisions about what happens next rather than it being that technical power race. I don’t know if we can call it race to the—I’m going to call it the bottom, race to the dystopia.” Break barriers Author Talks: It’s time to pass the baton To solve decades-old issues, former presidential adviser David Gergen says we need fresh leadership—so he wrote a playbook to guide the next generation of problem-solvers. Address the issues Follow our thinking Share these insights Did you enjoy this newsletter? Forward it to colleagues and friends so they can subscribe too.
Was this issue forwarded to you? Sign up for it and sample our 40+ other free email subscriptions here.This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to the Daily Read newsletter. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007
by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 06:26 - 9 May 2022 -
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by "Max Francisco from New Relic" <mfrancisco@newrelic.com> - 12:02 - 9 May 2022 -
Forward Thinking on democratizing technology with Anne-Marie Imafidon
McKinsey&Company
Break barriers .Share this email New from McKinsey Global Institute Forward Thinking on democratizing technology with Anne-Marie Imafidon “Having a computer science degree should not be a prerequisite for being one of the only people in control of what happens next. It’s about democratizing. It’s about giving folks agency so we can make collective decisions about what happens next rather than it being that technical power race. I don’t know if we can call it race to the—I’m going to call it the bottom, race to the dystopia.” Break barriers Explore this and future episodes of the McKinsey Global Institute’s Forward Thinking podcast on our site, and subscribe to ensure you never miss a new one. Subscribe via Apple Podcasts, Google Podcasts, Spotify, Stitcher, and Amazon Music. Related Reading My Rookie Moment: Watch epsiode 8, Meeting with CEOs Explore McKinsey on Books Follow our thinking McKinsey Insights - Get our latest
thinking on your iPhone, iPad, or AndroidShare these insights Did you enjoy this newsletter? Forward it to colleagues and friends so they can subscribe too.
Was this issue forwarded to you? Sign up for it and sample our 40+ other free email subscriptions here.This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to our McKinsey Global Institute alert list. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007
by "McKinsey Global Institute" <publishing@email.mckinsey.com> - 10:10 - 9 May 2022 -
A leader’s guide to making better decisions
Leading Off
The right choice .Share this email ESSENTIALS FOR LEADERS AND THOSE THEY LEAD Business lore is rife with high-profile examples of bad decisions, some of which sank entire companies. But questionable decisions that make headlines aren’t the only ones that can fail. The common, routine decisions we make every day can easily go awry and delay projects, alienate employees and customers, or hurt financial performance. In today’s uncertain environment, leaders are under constant pressure to make smart decisions fast. This week, let’s explore some decision-making practices that can make the process easier. AN IDEA Focus on speed, quality, and results Contrary to what you might expect, it doesn’t take very long to make a good decision. A McKinsey survey shows that fast, high-quality decisions correlate strongly with good company performance. This applies to all types of decisions—big bets that affect the company’s future; cross-cutting decisions, which are smaller in scope and made in collaboration with different groups across the company; and delegated decisions, which are the province of individuals or specific business units. Just 37 percent of our survey respondents say that their organizations’ decisions show both speed and high quality, and only 20 percent make fast, high-quality decisions that also deliver strong financial returns. The top performers’ formula for success? Make decisions at the right level (for example, don’t be afraid to delegate down to lower levels of the organization), focus on enterprise-level value, and get commitment from accountable stakeholders. A BIG NUMBER 11 That’s the number of ingrained myths that could trip up leaders who are trying to justify a decision. These might include beliefs such as, “I don’t have the time to give to this decision,” “I know I’m right,” “I trust my gut,” or “There’s just one way to do this.” An effective way to counter decision-making myths is slowing down and making a strategic stop—taking what the author of this Harvard Business Review article calls a “cheetah pause.” Cheetahs are known not just for their incredible speed but also for their ability to slow down quickly when they spot their prey. Pausing in a calculated way, rather than racing toward a decision, can help you bust the myths and evaluate whether to move in a new direction or stay the course. A QUOTE “The number of alternatives that leadership teams consider in 70 percent of all important strategic decisions is exactly one. Yet there’s evidence that if you get a second alternative, your decisions improve dramatically.” That’s Stanford University professor Chip Heath in this discussion with McKinsey on how senior leaders can boost their decision-making effectiveness. For example, considering just one more option can make good decision making up to six times more likely. Heath suggests using a four-pronged decision-making framework, known by the acronym WRAP: explore a wider set of options to create more debate, reality-test your assumptions through research, step back and attain some distance from your choice, and—although it may be hard to acknowledge—prepare to be wrong at the end of the process. A SPOTLIGHT INTERVIEW A series of biased decisions led to time and cost overruns in a major investment project at the German electric utility RWE. “What became obvious is that we had fallen victim to a number of cognitive biases in combination,” says CFO Bernhard Günther in this McKinsey Quarterly interview. “We could see that status quo and confirmation biases had led us to assume the world would always be what it used to be.” The project’s disappointing performance led Günther to spearhead fundamental changes in decision-making processes at the company. This included launching training programs for leaders and managers on becoming aware of biases, being more open to dissent and conflict, and learning debiasing practices—all of which eventually resulted in better decisions. A key factor in the success of RWE’s debiasing program was that top management set an example. “That’s true of any kind of change, not just debiasing,” Günther says. “If it’s not modeled at the very top, it’s unlikely to happen further down the hierarchy.” JAM SESSION Research shows that having too many choices can confuse people, forcing them to make snap decisions or not decide at all. A well-known study of consumer psychology reveals that shoppers are ten times more likely to make a purchase if they choose among six rather than 24 flavors of jam. Business leaders confronted with a long list of potential courses of action can pare down the choices by using a simple checklist-based approach to eliminating biases and screening bad decisions before they happen—freeing up resources to implement better alternatives. Lead decisively. — Edited by Rama Ramaswami, a senior editor in McKinsey’s Stamford office Follow our thinking Share these insights Did you enjoy this newsletter? Forward it to colleagues and friends so they can subscribe too.
Was this issue forwarded to you? Sign up for it and sample our 40+ other free email subscriptions here.This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to the Leading Off newsletter. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007
by "McKinsey Leading Off" <publishing@email.mckinsey.com> - 03:53 - 9 May 2022 -
The world’s food supply chain is in crisis. Here’s why.
McKinsey&Company
Responding to rising risks .Global food system crisis In the news • Scarce rice. The price of fertilizer has skyrocketed so much that rice farmers in Asia are using less of it, which, in turn, means that less rice will grow. As a result, rice crops could drop by 36 million tons by next season, an amount that would feed 500 million people. The lack of rice will likely contribute to the food inequalities already present in developing nations. And the high price of fertilizer is just one of myriad factors contributing to a growing worldwide hunger crisis. [Bloomberg] • Soaring food prices. As COVID-19-era supply chain issues continue, food prices across all categories have hit all-time highs not seen for decades. High fuel costs and worker shortages have now been compounded by recent events—including Russia’s invasion of Ukraine, a serious avian flu outbreak in the US, an ongoing and worsening drought in the American West, as well as border snarls delaying produce from entering the US. [WaPo] “The war in Ukraine threatens to disrupt the food system globally, well beyond the conflict zone.” On McKinsey.com • Regional and global repercussions. Millions of Ukrainians are trapped in the greatest humanitarian crisis since World War II, and among all else, their access to food amid the immediate conflict is in jeopardy. The war is also threatening to majorly disrupt global food systems: the Black Sea, whose north and northeast borders are Ukraine and Russia, respectively, is a key food supply hub. The region’s instability will undoubtedly have secondary effects on other breadbaskets dependent on its wheat and fertilizer. • A whiplash effect. To understand what’s at stake and at risk as the war continues—including the crucial roles that the region plays within the worldwide food system—McKinsey global editorial director Lucia Rahilly sat down with McKinsey partners Daniel Aminetzah and Nicolas Denis for The McKinsey Podcast on April 4. They discussed the supply chain strains already happening as a result of the Russian invasion, as well as potential outcomes and what can be done to help. — Edited by Justine Jablonska Listen in Was this forwarded to you? Sign up here. Or send us feedback — we’d love to hear from you. Follow our thinking This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to the On Point newsletter. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007
by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:41 - 9 May 2022 -
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by "Intel Corporation" <intel@plan.intel.com> - 11:00 - 8 May 2022 -
The week in charts
the Daily read
The week in charts: Clothing waste in California, the transition to a global net-zero economy, and more .Share this email ALL THE WEEK’S DATA THAT'S FIT TO VISUALIZE Our Charting the path to the next normal series offers a daily chart that helps explain a changing world—during the pandemic and beyond. In case you missed them, this week’s graphics explored clothing waste in California, declining global economic sentiment, the transition to a global net-zero economy, strategic investments for merchant leaders, and elevated container freight rates. FEATURED CHART Waste not, want not See more This week’s other select charts Gloomy days ahead? Greener beams Let’s go to the mall Pain in the boat Follow our thinking Share these insights Did you enjoy this newsletter? Forward it to colleagues and friends so they can subscribe too.
Was this issue forwarded to you? Sign up for it and sample our 40+ other free email subscriptions here.This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to The Week in Charts newsletter. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007
by "McKinsey Week in Charts" <publishing@email.mckinsey.com> - 03:10 - 7 May 2022 -
What is the metaverse, and what does it mean for your business?
McKinsey&Company
Plus, the changing role of the CFO .Share this email Monthly Highlights, May 2022 You may have noticed an increasing number of job listings seeking out talent specializing in “the metaverse.” But what exactly is the metaverse, and why should your organization be paying attention to it? This month, our featured stories dive into this developing phenomenon as well as the realities facing companies looking to hire—and keep—top tech talent. Other highlights in this month’s issue include the following topics: - the CFO’s quickly expanding portfolio of responsibilities
- the growing global semiconductor market
- how CEOs can successfully manage the impact of inflation
- why Russia’s invasion of Ukraine risks tilting the food system into global crisis
Editor’s choice What is the metaverse—and what does it mean for business? No official definition yet exists for the metaverse, but companies can’t afford to wait until one does or the metaverse fully evolves to start experimenting and investing in it. Understand opportunities Tech talent tectonics: Ten new realities for finding, keeping, and developing talent Large incumbents can compete successfully for tech talent—but only if they’re ready to completely rethink their entire HR approach. Tech talent think and act differently. Don’t miss out THIS MONTH’S HIGHLIGHTS In conversation: The new CFO mandate How finance leaders can reconcile and fulfill their growing portfolios of responsibilities. Understand changing responsibilities The semiconductor decade: A trillion-dollar industry The global semiconductor industry is poised for a decade of growth and is projected to become a trillion-dollar industry by 2030. Look ahead Navigating inflation: A new playbook for CEOs Few chief executives have faced the challenge of leading a company through an inflationary spike like today’s. Lessons from strong leaders and bold action can help CEOs make the decisions that only they can make. Make smart moves The rising risk of a global food crisis The war in Ukraine poses a looming threat to the worldwide food supply. Here’s what’s at stake—and what might be done to help. Understand the issues Lithium mining: How new production technologies could fuel the global EV revolution Lithium is the driving force behind electric vehicles, but will supply keep pace with demand? New technologies and sources of supply can fill the gap. Keep up Charting net zero: Insights on what the transition could look like See the opportunities and risks of the net-zero transition through eight of our recent data visualizations. Zero in on net zero ALSO NEW Global Energy Perspective 2022 Capital investment is about to surge: Are your operations ready? Hybrid work: Making it fit with your diversity, equity, and inclusion strategy Author Talks: How to handle your work jerk Outsprinting the energy crisis As the cookie crumbles, three strategies for advertisers to thrive Author Talks: Actor Terry Crews wants you to open up Is worker power on the rise? Amid disruption, automotive suppliers must reimagine their footprints Overcoming global supply chain challenges How the fashion industry can get into a metaverse mindset Risk transformations: The heart, the art, and the science SPECIAL FEATURES CEO Excellence Now a New York Times bestseller, the #CEOExcellenceBook dives into the six mindsets that distinguish the best leaders from the rest. Order now McKinsey for Kids Explore the world of gaming in this kid-friendly interactive. Game on My Rookie Moment McKinsey senior colleagues discuss their early encounters with CEOs. Watch episode 8 McKinsey Themes Essential reading on topics that matter. Get up to speed McKinsey Classics Effective storytelling can help build organizations and lead them through times of change. Read “The power of storytelling: What nonprofits can teach the private sector about social media.” Rewind Leading Off Read a sample of Leading Off, 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 Follow our thinking McKinsey Insights - Get our latest
thinking on your iPhone, iPad, or AndroidShare these insights Did you enjoy this newsletter? Forward it to colleagues and friends so they can subscribe too.
Was this issue forwarded to you? Sign up for it and sample our 40+ other free email subscriptions here.This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you are a registered member of our Monthly Highlights newsletter. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007
by "McKinsey Highlights" <publishing@email.mckinsey.com> - 11:17 - 7 May 2022 -
Meeting the challenge of moms’ ‘double double shift’ at home and work
the Daily read
Listen and learn .Share this email AN ARTICLE A DAY, PICKED BY OUR EDITORS Working moms, this one’s for you—and for everyone aiming to do more than pay lip service to a constructive work culture. (Hope I’m not interrupting the two minutes of peace between the end of your workday and the beginning of your second shift on the home front.) The pandemic’s impact and other factors are drawing renewed attention to the structural barriers women face in fully participating in the economy. Need a view on the way forward? McKinsey’s Future of America podcast has you covered with a new episode featuring Reshma Saujani, who founded Girls Who Code and the Marshall Plan for Moms. “We have to stop trying to fix the woman and instead fix the structure,” says Saujani. “If we don’t fix the structure—through paid leave, affordable childcare, flexibility, all the things that make it possible for women to be moms and to work—we’re never going to get to equality.” Check out this can’t-miss interview, just in time for Mother’s Day. — Torea Frey, managing editor, Seattle Meeting the challenge of moms’ ‘double double shift’ at home and work As the United States emerges from the pandemic, how can businesses build a more inclusive working environment to improve outcomes for women in the workforce? Listen and learn Quote of the Day “Going forward in the next year, with the inflationary environment, companies that are able to offer something with value—so a better price, better packaging, something that offers value—while at the same time showing inclusivity or authenticity or other values consumers care about will do very well.” —Tamara Charm, McKinsey partner, on the rise of inclusive, sustainable consumers in a recent episode of McKinsey’s Future of America podcast Chart of the Day See today’s chart Also New The McKinsey Crossword: The Kentucky Derby 11-Down: What the Kentucky Derby winner can win by also winning the Preakness Stakes and the Belmont Stakes. Can you solve it? Play now Petrochemicals 2021: Regional fortunes and growing sustainability The industry has continued to recover after the initial shock of COVID-19. A deep dive into the numbers illustrates several implications for 2022. Stay ahead of the curve The next horizon for grocery e-commerce: Beyond the pandemic bump Consumers will increasingly shop for groceries online in the years ahead. Retailers must make a series of strategic investments to keep pace. Understand shopper behavior Follow our thinking Share these insights Did you enjoy this newsletter? Forward it to colleagues and friends so they can subscribe too.
Was this issue forwarded to you? Sign up for it and sample our 40+ other free email subscriptions here.This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to the Daily Read newsletter. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007
by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 05:15 - 6 May 2022 -
What can CEOs do to tackle inflation? A lot, actually.
The Shortlist
Up, up, and away .Share this email Our best ideas, quick and curated | May 6, 2022 View in browser This week, a playbook for how CEOs handle inflation, which many haven’t dealt with for years. Plus, what’s driving the white-hot semiconductor market, and a McKinsey expert on the future of retail stores in the omnichannel era. Price pressure. Few chief executives have faced the challenge of leading a company through an inflationary spike like today’s. The consumer price index rose by 8.5 percent from March 2021 to March 2022 in the United States (a 40-year high), 7.5 percent in the eurozone, and 7 percent in the United Kingdom. More than half of advanced economies are grappling with year-on-year inflation above 5 percent. Stakeholder management. Operating in today’s uncertain environment, with a wider range of stakeholders, means that CEOs must think about performance in broader terms than just inflation’s implications for profitability. They have to lead with the complete business cycle and their complete slate of stakeholders in mind. Asking the right questions. There are many unknowns right now, and CEOs have to set priorities that work for their organization no matter what direction inflation takes. How can companies design products, services, and experiences to deliver value? How should they pursue repricing? What capabilities will increase a company’s resilience and control costs? How is the new talent landscape affecting compensation, benefits, and workplace norms? These are just a few questions CEOs should be mulling. To say this is a broad portfolio is an understatement. Our research into the behaviors and mindsets of excellent CEOs shows the pivotal role that chief executives play in setting a clear direction, aligning the organization, managing stakeholders, and serving as “motivator in chief.” The best CEOs act boldly, but they also listen a lot first, asking questions and empowering employees. Strategic partners. In “Navigating inflation: A new playbook for CEOs,” we look at how CEOs can create a strategy that does many things at once, including building digital, integrated, and agile supply chains; helping procurement leaders create value, not just cut costs; and setting prices to strengthen customer relationships. Creating an inflation program management office is crucial to this effort, allowing the CEO to set clear goals and communicate them to the entire organization. It also enables them to select a team of functional leaders who may not be department heads, and to empower the CFO or another direct report to coordinate these activities and carry out the mandate. Perhaps most important, the office can follow a systematic, fact-based approach to track execution, diagnose wins and losses, correct course, and learn. OFF THE CHARTS The semiconductor market is hot. What’s driving it? With chip demand set to rise over the coming decade, the global semiconductor industry is poised to become a trillion-dollar industry by 2030. About 70 percent of growth is expected to come from the automotive, data storage, and wireless industries. Check out our chart of the day here. PODCAST Making the metaverse your business No official definition yet exists for the metaverse, but companies can’t afford to wait until one does to start experimenting and investing in it. In a series of episodes from the McKinsey Technology Council’s new podcast, At the Edge, metaverse experts explore this ever-evolving cutting-edge technology—and what it means for companies. MORE ON MCKINSEY.COM Singapore emerges as a new-business-building hub | Singapore, home to an array of large regional companies and multinationals, is especially well positioned to host new businesses that can scale quickly. How machine learning can improve student success in higher education | Deploying machine learning and advanced analytics thoughtfully and to their full potential may support improvements in student access, success, and the overall student experience. Making hybrid work fit with your diversity, equity, and inclusion strategy | New research details what employees love about hybrid work models and the risks to diversity, equity, and inclusion if managers get the evolving flexible workplace wrong. THREE QUESTIONS FOR Tiffany Burns Tiffany Burns, a partner in McKinsey’s Atlanta office, works with apparel, consumer, and retail clients to design enterprise-wide and functional transformations. She leads the firm’s retail-store focus in North America. When we talk about the trends reshaping the future of stores, we see some retailers are getting omnichannel wrong. On the flip side, what are the best retailers doing on this front? Many retailers still think, “There are omnichannel interactions and store interactions, and I’m optimizing those two things separately. I have two different teams working on and thinking about those experiences.” But as a consumer, when I go on the retailer’s website or app, I expect to see availability, a connection to what’s in the store, and a way to order things that I can pick up in-store. I also expect to be able to stand in the aisle in the store and research a product. Today, consumers are figuring out work-arounds to do all those things: they’re switching over from the app to Google, looking up the product, and searching for reviews. But we see some retailers saying, “We’re going to make shopping a seamless experience for you. Our app will help you with wayfinding, give you inventory visibility in the store, and allow you to access all of our omnichannel opportunities to place an order and pick it up. We’ll allow you to stand in the aisle and do research on a product by scanning a QR code.” The best retailers—the ones who we believe will create winning omnichannel experiences in the future—are those who are solving for seamless interactions across channels. Demand is growing for same-day delivery and even instant delivery. But is a backlash also growing, particularly as it relates to congestion in some neighborhoods and cities? How should stores be thinking about zero wait time? The expectations for speed have significantly advanced. Five years ago, you didn’t expect an online order to get to you in less than a week. You also were completely fine ordering your Friday night pizza and waiting 90 minutes for it; you weren’t sitting in front of your phone and watching the dot as it turned down your street and stopped at the red light. The question gets down to, “Where is it all going to land? What will be the future standard for delivery?” What we do know, though, is when you tell a customer that it will take three days [to receive a product], how often they say, “Never mind.” We’ve seen that when the wait times are higher than customers’ expectations—and that varies; it’s not one definitive number for all customers—half of them will abandon their carts. Retailers lose sales when they don’t get this equation right. You asked about congestion. Funny enough, I had a delivery from a mass retailer to my house. The delivery person backed up across my driveway, onto my front yard, and onto the retaining wall. We had to get a tow truck and the police to come. And it was raining, so I was outside with the umbrella trying to help. It was too crazy. I thought, “I would’ve been so much better off just going to the store.” So, to your point, the inconvenience to neighborhoods that could come with zero wait time is a consideration. Although I don’t think we’re at a breaking point yet, you could imagine that we could be in the near future. Zero wait time almost certainly means more packaging, more delivery vehicles on the road—not great from a sustainability perspective. How should retailers reconcile those contradictions? Folks are starting to acknowledge that our delivery preferences are creating more waste. Some retailers are saying, “Are you willing to combine your shipments?” In the packaging space, they’re doing a lot in product development to try to use recyclable materials. One interesting example on the sustainability side is solar energy. IKEA, for example, is installing solar car parks. Is it as convenient for consumers to navigate the parking lot with these structures? Probably not. But consumers are excited to see retailers putting a stake in the ground and saying they want to be more energy efficient. They are more willing than they’ve historically been to trade off a little bit of convenience in the spirit of more sustainable outcomes. In the past year and a half, we’ve seen a broadening of the things that matter to consumers. One thing that matters to consumers now is diversity—both in terms of gender and race—of founders and creators of products on retail shelves. Consumers are saying, “I want to use my wallet to help promote equity. It’s one thing that I can do as an individual.” — Edited by Barbara Tierney Share this Q & A BACKTALK Have feedback or other ideas? We’d love to hear from you. Tell us what you think Follow our thinking Share these insights Did you enjoy this newsletter? Forward it to colleagues and friends so they can subscribe too.
Was this issue forwarded to you? Sign up for it and sample our 40+ other free email subscriptions here.This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to The Shortlist newsletter. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007
by "McKinsey Shortlist" <publishing@email.mckinsey.com> - 01:13 - 6 May 2022 -
Grateful for moms? See three meaningful ways to support working parents.
McKinsey&Company
How ‘work–life sway’ can help .On working moms In the news • Childcare needed. Although the US economy has recovered from the early shocks of the COVID-19 crisis, there are still fewer active workers than prepandemic. That’s especially true for women, who often handle the bulk of childcare. Nearly 5 million Americans couldn’t work in early April because they were looking after kids who weren’t in school or daycare. Greater participation in the labor force is good for everyone because it increases productivity, which can in turn lower prices and tamp down inflation. But parents—in particular, moms—can’t come back to work if they don’t have access to affordable childcare. [Fortune] • Banish ‘mom guilt.’ Working moms, it’s time to let go of guilt, says Lara Bazelon, a law professor, criminal-defense lawyer, and mom of two. Kids learn important lessons from moms with careers, including how to develop independence and resilience. In fact, daughters of working moms enjoyed greater success at work than those with stay-at-home moms, found one study from 2018 that included about 100,000 individuals in nearly 30 countries. Adult sons of working moms did more chores around the home for their own families. [Atlantic] “The motherhood penalty, from a hiring standpoint and employment standpoint, still persists.” On McKinsey.com • Gendered role expectations. Men and women alike are subject to gendered role expectations that force them into boxes, says Joann S. Lublin, a former editor for the Wall Street Journal and author of Power Moms: How Executive Mothers Navigate Work and Life. Moms with kids under 18 earn 69 cents for every dollar earned by working dads. Generally speaking, that’s a much bigger pay gap than the one that exists between working women and men, reflects Lublin. In addition, many men are hesitant to take paid parental leave. • ‘Work–life sway.’ “The idea of work–life sway is that we accept that when we need to be 110% there for our jobs, we will, but if we’ve got to deal with our family, we will move into family mode,” says Lublin. Now that the work-from-home experiment has proven successful, Lublin adds, employers can make remote work a permanent policy, trusting their employees to figure out what works best. Read the full interview for how to fight stereotypical expectations at work and what companies can do to help parents succeed. — Edited by Belinda Yu Get her take Was this forwarded to you? Sign up here. Or send us feedback — we’d love to hear from you. Follow our thinking This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to the On Point newsletter. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007
by "McKinsey On Point" <publishing@email.mckinsey.com> - 10:16 - 5 May 2022 -
What Black and Latino consumers want healthcare stakeholders to know
the Daily read
Understand diverse needs .Share this email AN ARTICLE A DAY, PICKED BY OUR EDITORS Healthcare is a basic human right, yet health access and outcomes in the US vary across racial and ethnic groups. For example, many Black and Latino consumers have noted they receive lower quality of care due to their race. So what can be done to create a more equitable healthcare framework that works for everyone? A new article delves into the underlying sentiment, experiences, and attitudes around healthcare for Black and Latino consumers and explores four areas to improve health outcomes to address the root causes of healthcare inequity. Get perspective on what needs to be done to close the equity gap. — Joyce Yoo, digital editor, New York What Black and Latino consumers want healthcare stakeholders to know Understanding consumer behavior and attitude drivers may help stakeholders improve health outcomes and experiences for Black and Latino patients. Understand diverse needs Quote of the Day “You really want to have a strong global company strategy that is fully aligned with large markets. The enemy of any go-to-market digital transformation is fragmentation… You need to ruthlessly prioritize, and recognize that six months down the road, new shiny objects could creep in to dilute your initial objectives, and slow down your ability to create big wins.” —Dr. Pius S. Hornstein in “Driving digital transformation in healthcare: An interview with Dr. Pius S. Hornstein, Country Chair Sanofi Greater China” Chart of the Day See today’s chart Also New A digital path to sustainability Sustainability and productivity needn’t be at odds when enabled by Fourth Industrial Revolution technologies. And with an empowered workforce leading the way, outsize gains can be the result. Make a green impact Net-zero steel in building and construction: The way forward Rising demand for greener approaches creates an imperative for the industry to seize the moment, adopt new mindsets, and set standards for the transition to a greener future. Read the report Building a green business: Lessons from sustainability start-ups Green tech and climate technology companies are rapidly altering the competitive landscape. With sustainability now a business imperative, incumbents need to move quickly—or risk being left behind. Protect the planet Follow our thinking Share these insights Did you enjoy this newsletter? Forward it to colleagues and friends so they can subscribe too.
Was this issue forwarded to you? Sign up for it and sample our 40+ other free email subscriptions here.This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to the Daily Read newsletter. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007
by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 06:29 - 5 May 2022 -
Securing Europe’s future beyond energy: Addressing its corporate and technology gap
McKinsey&Company
Understand regional trends .Share this email New from McKinsey Global Institute Securing Europe’s future beyond energy: Addressing its corporate and technology gap European leaders have shown great resolve in their initial response at scale and speed to the war in Ukraine. They will need to build the same momentum to face the region’s slow-motion corporate and technology crisis. An estimated €2 trillion to €4 trillion of annual value could be at stake—six times the amount needed for the net-zero transition—and with it Europe’s long-term prosperity and strategic autonomy. A program of 11 actions can turn the tide. Understand regional trends Related Reading A new look at how corporations impact the economy and households The net-zero transition: What it would cost, what it could bring Follow our thinking McKinsey Insights - Get our latest
thinking on your iPhone, iPad, or AndroidShare these insights Did you enjoy this newsletter? Forward it to colleagues and friends so they can subscribe too.
Was this issue forwarded to you? Sign up for it and sample our 40+ other free email subscriptions here.This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to our McKinsey Global Institute alert list. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007
by "McKinsey Global Institute" <publishing@email.mckinsey.com> - 04:04 - 5 May 2022 -
Excessive energy costs are hurting European industry. Here are two ways to respond.
McKinsey&Company
Why companies are pursuing renewables .Coping with the cost of energy In the news • Going green. The war in Ukraine is spurring Europe to reduce its dependence on foreign fossil fuels. These efforts could be speeding up investment in green energy. Already, large companies are building wind farms and installing solar panels to generate on-site power. Moreover, steep energy costs are increasingly prompting businesses to sign purchase agreements that secure clean energy at fixed rates. From January to October 2021, companies worldwide signed 203 such agreements, a 44% increase from the previous year. [Reuters] • Fuel, food costs rise. The energy price hikes of recent years have been the biggest since the 1970s. Now, the World Bank projects that fuel and food costs will continue to increase in 2022. According to its April report, energy prices will shoot up 50.5% from the previous year, while food prices will increase nearly 23%. Inflation is surging in many parts of the world. In the US, the consumer price index hit 8.5% in March, the highest it’s been in 40 years, and in 19 European countries, inflation climbed to 7.5% that same month. [WSJ] Our modeling indicates that companies that move boldly and quickly in two areas could improve margins by up to 10% while reducing their carbon footprint by 40%. On McKinsey.com • Soaring production costs. The energy crisis is hitting Europe’s industrial sector hard. Surging demand and the war in Ukraine have contributed to expensive energy prices. In energy-intense industries, production costs have spiked by nearly 50% in some sectors, McKinsey analysis shows. Moreover, futures markets are pricing European gas at double or triple its 2021 rate for the next three years. • Relying on renewables. Today’s high prices mean that using renewables to meet some of a plant’s energy needs could cut costs and improve price security. Before the current crisis, a chemicals company acquired some land next to its plant, intending to build a solar farm. Under a power purchase agreement, the project supplied 45% of the plant’s energy, with a one-year payback period. This project would pay for itself in weeks at today’s prices. By acting boldly, industrial leaders can make their companies stronger, cleaner, and more profitable for years to come. Two moves could create significant value for big energy users. — Edited by Belinda Yu Outsprint the energy crisis Was this forwarded to you? Sign up here. Or send us feedback — we’d love to hear from you. Follow our thinking This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to the On Point newsletter. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007
by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:37 - 5 May 2022 -
The “invisible” women who work in homes across America
Intersection Subject Line
Valuing care work .Share this email DELIVERING ON DIVERSITY, GENDER EQUALITY, AND INCLUSION In this issue, we consider the women doing paid care work in America. THE VIEW “What a childcare worker produces is human potential. What a home care worker produces is dignity and quality of life for the people who raised us. What could be more valuable?”
— Ai-jen Poo
Ai-jen Poo is the cofounder and president of the National Domestic Workers Alliance. As she puts it from the podium: “We represent the 2.5 million women who work inside of our homes, who make everything else possible.” Who are these women? Who’s doing this work? More than half of US domestic workers are Black, Hispanic, Asian American, or Pacific Islander women—and for too long, Poo says, they have been “invisible.” Her advocacy began with a question: “Who’s taking care of them?” Poo points to a stark figure: $18,000. That’s the typical annual pay of a home healthcare worker in the US. “It would be difficult,” a recent White House brief notes, “to sustain a family by running a care-providing business.” Poo points out the irony: “The professionals we count on to care for us can’t care for themselves and their own families by doing this work.” Domestic workers sustain American families—and the US economy. A few stats for context: nearly one in four American children live with a single parent, and more than half of American families have two income earners. Meanwhile, 10,000 baby boomers are reaching retirement age each day; by 2040, more than one in five Americans will be 65 years or older. Most want to continue living in their current homes as they age, but they may not have access to long-term care. Poo lays out the stakes: “We rely on a workforce of professionals to provide care as early childhood educators, childcare workers, home care workers, and personal-care aides. These are jobs that can’t be outsourced. They’re not going to be automated. And, right now, they’re poverty wage jobs with high rates of turnover because no one can survive on $18,000 a year. These are going to be a huge share of the jobs in the future, and we have got to make them good jobs.” McKinsey research shows that domestic work is one of the top two areas (along with transportation) where net labor demand will increase the most following the COVID-19 pandemic. The increase in demand for domestic work in the US by 2030 is expected to be 16 percentage points higher than prepandemic estimates. Globally, the rise in demand will principally be driven by occupations such as home health aides and childcare workers. McKinsey analysis confirms that while automation can disrupt some domestic work—robot vacuums can help with the cleaning, for example—most tasks in this arena can’t be automated easily. As Poo points out in a conversation with strategist Heather McGhee, quality is essential to care—“and that quality is rooted in a human interaction and a human experience. The value is in the ability to support the human dignity of an older person or a person with a disability and the ability to nurture human potential.” Poo is calling for the US to invest in care as infrastructure. She sets forth a vision of a world “where every single person, regardless of age or ability, can get access to the care that they need at every stage of life” and “where the lives and the contributions of women and women of color are valued, seen, respected, and protected.” That means ensuring access to affordable childcare, paid family and medical leave, and long-term care—including for those who provide it. — Edited by Julia Arnous, an editor in McKinsey’s Boston office Follow our thinking Share these insights Did you enjoy this newsletter? Forward it to colleagues and friends so they can subscribe too.
Was this issue forwarded to you? Sign up for it and sample our 40+ other free email subscriptions here.This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to the Intersection newsletter. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007
by "McKinsey Intersection" <publishing@email.mckinsey.com> - 12:09 - 5 May 2022