McKinsey’s State of Fashion Technology Report 2022

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AN ARTICLE A DAY, PICKED BY OUR EDITORS

Fashion’s been heeding the call of technology for years—and the industry’s future is looking even more digital, with fashion companies expecting to double tech investments by 2030 to stay competitive. There are many ways they can apply innovative digital resources to better serve customers and increase business efficiency. Where are executives leaning in, and what are opportunities for creatively using robotics, AI, and other technologies to their advantage? McKinsey’s State of Fashion Technology Report 2022 dives deeper on the dynamics and highlights five key technology themes with potential. Be sure to check it out.

—Babi Oloko, digital editor, New York

State of Fashion Technology Report 2022

As technological innovation accelerates, fashion companies have an opportunity to serve customers better while also creating a more efficient, responsive, and responsible business.

Keep up

Quote of the Day

“One factor that helps breed confidence around taking risks is having a deeply personal mission. Climate technology companies tend to take on bold objectives and—because it’s personally meaningful to them—ensure they get done end to end.”

—Explore the three-step approach for incumbents seeking to build green businesses in "Building a green business: Lessons from sustainability start-ups"

Chart of the Day

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Portrait of Jeff Dirks, TrueBlue's chief technology and information officer

The business value of innovation in the cloud

In this interview, TrueBlue’s chief technology and information officer explains why migrating to the cloud was always about far more than just technology.

Follow the cloud journey

Woman holding a cup of vanilla ice cream in supermarket

Skinny design: Smaller is better

Designing packaging and products with supply chain and in-stock issues in mind can increase revenues and profits, all while meaningfully improving sustainability. Three steps can point the way.

Implement new strategies

Author Talks: “If you don’t understand … how are you going to help?”

List-based marketing can go in one ear and out the other for consumers, which is why one Fortune 500 adviser says the best branding combines empathy, connectedness, and good storytelling.

Take a new approach

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by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 06:28 - 4 May 2022

[Online workshop] Error Management in New Relic

Register for this 90-minute online workshop to learn how New Relic can help you to manage errors in your applications. You will learn how to configure and manage errors in APM, browser, and mobile applications. You will also learn how to use New Relic Errors Inbox to proactively detect, triage, and act on errors across your application stack, all in one place.

After attending this hands-on workshop, you will be able to:

Configure error reporting in New Relic APM
View and troubleshoot errors in your APM, browser, and mobile applications
Use New Relic Query Language (NRQL) to query and alert on error data
Supplement error data with logs in context
Use New Relic Errors Inbox to manage errors in one place.

Register now

You can claim a free New Relic water bottle for attending this online workshop!*

*Find a list of countries we can ship swag to on the workshop registration page.

by "New Relic EMEA" <emeamarketing@newrelic.com> - 05:16 - 4 May 2022

The metaverse is becoming ever more real. What should leaders know?

McKinsey&Company

On Point | TODAY'S NEWS. TOMORROW'S INSIGHTS

That’s so meta

In the news

•

Mouthful of meta. You can do a lot of lifelike things in the metaverse, but you can’t smell the aroma of a grilling burger or scarf down real fries. Nonetheless, chain restaurants are investing in metaverse marketing in a bid to understand the new landscape’s potential. At one virtual restaurant, players who successfully build a virtual burrito win “Burrito Bucks” that they can spend on real food. Another fast-food chain debuted a virtual restaurant where visitors can play basketball. [WSJ]

•

Virtual world, real crime. As the metaverse expands and more experiences migrate into it, security experts believe criminals will be sure to follow. Cybersecurity is of course an eternal problem, but unique risks are introduced if someone hacks into your VR headset and uses it to peer into your office or bedroom, or control what you see and hear. Industry executives and cybersecurity consultants are increasingly preparing for the metaverse’s criminal element. [CBS News]

“The most storied companies on earth are building a presence in the metaverse, and we have commerce in the tens and soon to be hundreds of billions of dollars.”

On McKinsey.com

•

Coming to fruition. The metaverse has long been theorized but in the past few years, it has edged closer to reality, with hundreds of millions of people connecting every day, says metaverse expert Matthew Ball. Wide broadband penetration and abundant graphics-processing units have helped it pass a critical threshold of visual fidelity, functionality, and online participants. The business case is also firming up: last year, $60 billion or $70 billion was spent on nonfunctional virtual goods, up from $5 billion in 2015.

•

Future dimensions. “Companies need to be investing in the metaverse long before the revenue, the products, and the disruption are here,” Ball says in an interview with McKinsey. Over the coming years, look for companies to fall into four categories typical of transformational eras: those that lead in one era and are eradicated in the next, those that succeed in both eras, those that survive but limp through a new era, and those born in the new era that become even bigger than their predecessors.

— Edited by Katy McLaughlin

Explore the metaverse

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by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:40 - 4 May 2022

Advancing diversity, equity, and inclusion: New McKinsey on Government podcast episode

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AN ARTICLE A DAY, PICKED BY OUR EDITORS

As the world attempts a bounce-back from the pandemic’s challenges, barriers to diversity, equity, and inclusion efforts still remain. Burnout continues to be a widespread problem, especially for women shouldering bigger loads at work while struggling to unplug at home. The data’s clear that diverse organizations, in both the public and private sectors, deliver better performance and value—so how can we keep vital new perspectives in play? When leaders follow through on nurturing all three components of DE&I, it can foster a special, inspirational environment. Don’t miss a new episode of the McKinsey on Government podcast on how to create that in your own workplace.

— Sarah Skinner, digital editor, New York

Advancing diversity, equity, and inclusion

During the COVID-19 pandemic, women have had bigger workloads—and have burned out in greater numbers. Government leaders can use proven approaches to address these issues and build better workplaces.

Strive for better

Quote of the Day

“When you put yourself into something, you are automatically exercising creativity simply because that cause, or project, or team you join has never had you. When you collaborate with another person, you are going to come up with something special.”

—Terry Crews, actor and former NFL player, on creativity and collaboration in a recent Author Talks interview

Chart of the Day

See today’s chart

Also New

Redesigning the design department

The best corporate design departments are transforming from fortified castles into vibrant town squares.

Dive into the data

Social media as a service differentiator: How to win

With customers increasingly moving their service interactions onto social media, companies have an opportunity to leverage these channels to differentiate their service experience.

Keep up

NatWest Chairman Sir Howard Davies on operational resilience in banking

Sir Howard Davies discusses the ways regulations, interest rates, monetary policy, climate risk, and economic threats are affecting the resilience of the banking system.

Learn from a leader

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by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 06:49 - 3 May 2022

Ten strategies to attract tech talent

McKinsey&Company

Get technical

In the news

•

Branching out overseas. Software developers, coders, and other tech workers were once limited to employment in certain geographical areas. The COVID-19 pandemic upended all of that. Amid the massive shift to remote work and a tight labor market, US companies are stepping up their hiring of overseas tech talent. Demand for foreign tech talent increased 74% in the past six months. However, since bigger corporations can afford to pay higher salaries, a deeper global talent pool may also disadvantage smaller, local businesses. [Fortune]

•

New tech hubs. As the COVID-19 pandemic makes remote work a day-to-day reality, more tech workers are moving to places outside of the US’s “superstar cities.” Remote work spurred nearly five million workers in the US to move in 2020, and another 19 million plan to relocate. This trend, along with the proliferation of cloud services, aligned with greater investment in tech organizations beyond the typical technology hubs such as Silicon Valley. Now, more than half a dozen US metro areas are considered “rising stars,” with upticks in tech-related job postings. [WSJ]

Our analysis shows that significant skill gaps in technology exist in seven areas, and we expect them to become more severe over time.

On McKinsey.com

•

Hiring hurdles. The need for tech talent is intense, with more than three million cybersecurity roles across the globe unfilled in 2020. Remote work has made it easier for job hunters to seek better opportunities, and companies worldwide are trying to snap up tens of thousands of tech workers. Many are in a tight spot: in a McKinsey survey of senior executives, nearly 90% said their companies weren’t ready to address employee skill gaps. In addition, 61% of HR execs predict that hiring developers will be their biggest hurdle in coming years.

•

Ten talent tactics. Attracting and developing tech talent must be a top priority on executives’ agendas to keep pace with today’s digital demands. That may mean a revamp of the candidate experience, upskilling in-house talent, and weeding out bad practices. Based on McKinsey’s work on more than 80 technology transformations, we’ve identified the top things companies need to get right. Explore ten new realities that businesses should address to draw and develop the best tech talent, along with the seven skill areas most in demand.

— Edited by Sarah Thuerk

Grow tech talent

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by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:35 - 3 May 2022

Actor and former NFL player Terry Crews wants you to open up

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AN ARTICLE A DAY, PICKED BY OUR EDITORS

What if real toughness involves getting a little vulnerable? You’re probably familiar with Terry Crews from his TV and film work, including Brooklyn Nine-Nine. As an actor and former NFL player, he’s often seen as someone who is physically strong and ready for anything. But in his new book, Tough: My Journey to True Power, he pushes back on traditional standards of toughness and goes deeper on his journey to mental health and advocacy for gender and equity issues. He also touches on the creative process and how to ask for help. Don’t miss this new Author Talks interview for more on how business leaders can open up while getting tough.

— Katherine Tam, digital editor, New York

Author Talks: Actor Terry Crews wants you to open up

The Brooklyn Nine-Nine actor and former NFL player tackles the issue of toxic masculinity and explores how “tough guys” can find strength in vulnerability.

Break the cycle

Quote of the Day

“I just encourage you to think about building that human connection before you think about how you might advance someone’s agenda. And get to know them a little bit and show yourself a little bit before you worry about proving yourself to them. And also, remember that spontaneous interactions can sometimes be the best ones”

—Manish Chopra, McKinsey senior partner, on his first one-on-one conversation with a CEO in the latest episode of My Rookie Moment

Chart of the Day

Chart of estimated 2020 California apparel textile flows

See today’s chart

Also New

Two dock workers talking together while standing in a dockyard

Overcoming global supply chain challenges

McKinsey’s Tom Bartman discusses what’s causing disruptions in global supply chains and how key stakeholders are responding.

Understand the issues

Illustration of computer monitor as machine tools

Digital twins: The art of the possible in product development and beyond

Digital representations of physical products are coming to life. Here’s how to make them work for you.

Take another look

Rise of the inclusive, sustainable consumers

How can businesses attract and retain customers when sustainability and inclusion are no longer “nice to have” but critical to business? And how can they do so successfully in this challenging economic environment?

Understand key values

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by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 06:54 - 2 May 2022

A leader’s guide to new and improved communications

Leading Off

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ESSENTIALS FOR LEADERS AND THOSE THEY LEAD

There was no communication playbook when COVID-19 broke out. Beset by the pandemic and overwhelmed by information pouring in from governments and the media, the best leaders focused intensely on communicating with employees in a variety of ways and often in a tone they were not used to employing: by reassuring, listening, comforting, and trying to boost hope and resilience. Traditional top-down mandates gave way to informal and authentic conversations, often in virtual settings. As the crisis abates, the experience of forging deeper interpersonal connections can be a catalyst for lasting changes in the way leaders communicate with employees and stakeholders. This week, let’s explore what your new communications playbook might look like.

AN IDEA

Illustration of a green arrow and a white arrow pointing towards the right

Change your communication style to suit the ‘next normal’

So much changed during the pandemic—relationships between employers and employees, boundaries between home and work, people’s aspirations for the future. Leaders must build these profound shifts into every new communication they plan. As return-to-the-workplace models develop, the goal should not be to issue mandates but to nurture thoughtful two-way dialogues and work as a partner with employees to develop solutions. Listen to and engage with employees when presenting a picture of the future workplace, and keep in mind that a postpandemic, largely burned-out workforce will expect you to deliver compelling and inspiring messages. In the long term, connecting with employees, understanding their needs and feelings, and offering personalized experiences will be key to engaging and retaining workers.

A BIG NUMBER

5

Since returning to the office is such a sensitive topic these days, leaders might want to consider five key strategies to strike the right balance in communicating their plans to employees. Most important, they should avoid dictating an overarching policy that expects everyone back in the office: it signals to the organization that leaders may be engineering a throwback to the old ways—and might send employees running for the exit. It’s also essential to be clear on the “why”: Why do you need your team to be on-site? Even if people know what needs to be done and how to do it, they are rarely motivated to comply if they don’t understand why they should do it, as this Harvard Business Review commentary points out.

A QUOTE

“Whether you are a CEO, a government official, a teacher or a parent, when disaster strikes you need to be able to give people who depend on you basic data to guide their response and an empathetic acknowledgment that things are perilous but will get better.”

That’s Juliette Kayyem, director of the Homeland Security Project at Harvard University’s Kennedy School of Government. In this Wall Street Journal article, Kayyem contends that while today’s organizations have mastered disaster preparedness, they’re not adept at managing communications to ensure coordinated responses. Describing her own experience with an environmental disaster where local authorities were left out of the information flow, Kayyem recommends creating a daily situation awareness report—which can be an email or virtual meeting—that shares information with all stakeholders. Such reports should document “the actions that have been taken, those that need to be done, and problems that are likely to come up in the future—for example, a shortage in the supply chain,” she says. “It’s crucial to establish those systems now, because the next disaster could very well happen tomorrow.”

A SPOTLIGHT INTERVIEW

For Carlos Migoya, CEO of Florida-based Jackson Health, being a good communicator depends on one thing: enjoying people. As a self-described “people person,” Migoya relied on connecting with employees to pull through the crisis when COVID-19 slammed his company. “The only thing I knew to do was leading with humility: telling people we don’t know what’s going on and working through this,” he recounts in this interview with McKinsey. “The worst challenge was the misinformation that was going on. What we were doing was fighting that more and more … we were having town halls with all of our employees twice a week.” In the future, listening to employees and attending to their needs will be the biggest change in how CEOs engage with their organizations, Migoya says.

WE NEED TO TALK

A photo of two goldfish in separate bowls

Poor communication has tangible consequences in the workplace: 44 percent of respondents to a survey of executives say that communication barriers cause delays or failure to complete projects, and 18 percent blame miscommunication for the loss of sales, some worth hundreds of thousands of dollars. The worst culprits are people having different communication styles and not using the right communication tools. For example, presenting hard data to someone who prefers a more intuitive approach is unlikely to work, and sending emails to a recipient who responds best to in-person interaction may misfire. According to the researchers, “Future leaders must have the ability to communicate across styles and modes, reaching across generations.”

Lead by communicating well.

— Edited by Rama Ramaswami, a senior editor in McKinsey’s Stamford office

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by "McKinsey Leading Off" <publishing@email.mckinsey.com> - 03:26 - 2 May 2022

Did the COVID-19 crisis disrupt learning in your household? See our latest report.

McKinsey&Company

Countering COVID-19 learning loss

In the news

•

‘Cognitive wobble.’ After two years of learning disruptions, students are working to catch up academically. Teachers and educational experts believe that now is the time for students to embrace struggling in the classroom. Indeed, one ingredient that hastens learning is when a person strives to be challenged, according to academic research. “My purpose is creating confusion, or cognitive wobble,” says one education company leader. “Like when you are learning to ride a bike and it wobbles—I am trying to create that mental wobble, so they have to think about it more.” [NYT]

•

Ongoing school closures. More than 400 million students in 23 countries are still unable to fully return to school because of COVID-19-related closures, according to a new report from UNICEF. The humanitarian organization says that close to 150 million kids have been absent from half or more of their in-person learning. Even when schools have reopened, some students—girls in particular—have not returned. Catherine Russell, executive director of UNICEF, says that she worries most for children who drop out of school and become susceptible to exploitation. [BBC]

Education can affect not just an individual’s future earnings and well-being but also a country’s economic growth and vitality.

On McKinsey.com

•

The cost of learning loss. Disrupted learning affects everyone, not just students. When lower levels of learning curb students’ potential for future earnings, that can reduce economic productivity. McKinsey analysis reveals that by 2040, COVID-19-related unfinished learning could cost the world economy $1.6 trillion each year. Academic losses have coincided with rising reports of mental-health struggles and violence against kids. School systems that act decisively can help students recover from academic losses and support emotional health.

•

Worldwide learning losses. As of January 2022, students worldwide have lost eight months of learning since the COVID-19 pandemic began, McKinsey analysis suggests. There are big differences across regions and countries. In the Caribbean, Latin America, and South Asia, students may have lost more than a year of learning, while in Europe and North America, students might be an average of four months behind. See our report for four priorities that school systems can consider as they support students in recovery and beyond.

— Edited by Belinda Yu

Get back on track

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by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:27 - 2 May 2022

The week in charts

the Daily read

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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 the pandemic’s impact on aviation, embedded systems development, the global learning crisis, the future of healthcare delivery, and the ways that revenue growth management is impacting foodservice.

FEATURED CHART

Airline values in a tailspin

This week’s other select charts

Growth spurt

Lost time

With patients come great rewards

The cost of dining out

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by "McKinsey Week in Charts" <publishing@email.mckinsey.com> - 03:22 - 30 Apr 2022

Tough talk with actor Terry Crews

Readers & Leaders

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THIS MONTH'S PAGE-TURNERS ON BUSINESS AND BEYOND

Long regarded as an archetypal Hollywood “tough guy,” Terry Crews is breaking down his journey and sharing how he learned to ditch toxic toughness for healthy masculinity. In this edition of Readers & Leaders, catch a conversation with Crews about his life, his legacy, and what it really means to “be a man.” Don’t miss highlights from interviews on conformity bias, population rise, and more, plus this month’s bestselling business books, prepared exclusively for McKinsey by NPD BookScan. Itching for more good reads? Check out McKinsey on Books for the latest, and to get Readers & Leaders in your inbox monthly, click here to subscribe.

AUTHOR TALKS

Terry Crews wants you to know that it’s okay to ask for help. In a recent edition of Author Talks, the actor and former NFL player got candid about letting go of anger, embracing strength in vulnerability, addressing mental health needs in the Black community, and more from his new book, Tough: My Journey to True Power.

“I was involved in a very competitive world. From growing up among gang members and drug dealers all the way to sports and the NFL, I watched, and I became what I saw. It was about turning off your emotions, turning off what you’re feeling, turning off your pain compass. The revelation that came to me much later was that toughness is not the ability to throw a punch. A lot of times it’s the ability to take hard hits without hitting back.” Watch the full interview.

IT BEARS REPEATING

“For society to think that we can just have thousands of people leave the prison system, have some agency write them a résumé and get them a job, and then have them keep that job is kind of nutty because there are so many challenges. There’s so much support system you have to put around [formerly incarcerated people] to allow them to be resilient enough to do work. What I’m saying is that corporate America needs to think about this differently.”

–Tom Vozzo, CEO of Homeboy Industries and author of The Homeboy Way: A Radical Approach to Business and Life (Loyola Press, February 2022), in a recent edition of Author Talks

IN CASE YOU MISSED IT

Todd Rose implores us to speak up, even if it means going against the group: “Two-thirds of all Americans admit to self-silencing. How does a democracy function if most people can’t be honest with each other about what they actually think?” Watch the full interview.

Laura Watkins shares methods for having wellness and success go hand in hand: “On the performance curve, we’ve cracked the conundrum of how to have effectiveness and well-being—and have the two be mutually reinforcing. We’ve done that by building our inner capacity to deal with change and complexity.” Watch the full interview.

Justin Gest explains how to honor American heritage without reproducing inequality: “What is an identity if everyone shares it? It’s not actually identifying, so there has to be some degree of exclusivity there. You need a minimal amount of exclusivity to create distinction, and you want to maximize inclusion within that. That’s a really tough needle to thread.” Watch the full interview.

Jennifer Sciubba prepares us for a planet of eight billion people: “One of the real fears that we have today is that urbanization trends won’t lead us to shiny, sparkling cities filled with skyscrapers but instead might lead us to a planet of slums. Research-wise, we still have a lot to learn about urbanization’s effects on politics and on the economy.” Watch the full interview.

Sandeep Dayal applies cognitive science to story-based marketing: “The human brain is wired to remember and react to stories much more than it is wired to react to lists or claims like ‘I’m better because I’m faster’ or ‘I’m better because I’m cheaper.’ People forget all that, but what’s the story? That narrative needs to be importantly woven into your brand.” Watch the full interview.

BUSINESS BESTSELLERS TOP

8

Grab your picnic blanket and head to the park with one of this month’s top business bestsellers in eight categories, prepared exclusively for McKinsey by NPD BookScan, and explore the full lists on McKinsey on Books.

BUSINESS OVERALL

Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones by James Clear (Penguin Group USA)

BUSINESS HARDCOVER

Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones by James Clear (Penguin Group USA)

DECISION MAKING

Blink: The Power of Thinking Without Thinking by Malcolm Gladwell (Hachette Book Group)

ECONOMICS

COVID-19: The Great Reset by Thierry Malleret (Lightning Source Inc.)

ORGANIZATIONAL BEHAVIOR

Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones by James Clear (Penguin Group USA)

WORKPLACE CULTURE

Who Moved My Cheese?: An Amazing Way to Deal with Change in Your Work and in Your Life by Spencer Johnson (Penguin Group USA)

DIVERSITY & INCLUSION

Caste (Oprah's Book Club): The Origins of Our Discontents by Isabel Wilkerson (Random House)

SUSTAINABILITY

Net Positive: How Courageous Companies Thrive by Giving More Than They Take by Paul Polman and Andrew Winston (Harvard Business Review Press)

BOOKMARK THIS

CEO Excellence

Now a New York Times bestseller, McKinsey’s authoritative #CEOExcellenceBook outlines the six mindsets that distinguish the best leaders from the rest, based on rigorous research across more than 20 years’ worth of data on 7,800 CEOs from 3,500 public companies across 70 countries and 24 industries.

Order your copy now

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Download McKinsey’s signature reports and special collections on the management issues that matter, from leading through the COVID-19 crisis to managing risk and digitizing operations.

Get smart 

Your latest McKinsey Crossword: World Laughter Day

69-Across: Sounds heard on World Laughter Day (celebrated in 2022 on May 1).

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If you’d like to propose a book or author for #McKAuthorTalks, please email us at Author_Talks@Mckinsey.com. Due to the high volume of requests, we will respond only to those being considered.

—Edited by Molly Liebergall, a digital editor in McKinsey’s New York office

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by "McKinsey Readers & Leaders" <publishing@email.mckinsey.com> - 11:09 - 30 Apr 2022

Building a human connection with CEOs

the Daily read

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AN ARTICLE A DAY, PICKED BY OUR EDITORS

In our professional lives, we are used to formal interactions—meetings and presentations that are focused on the work at hand and what needs to be done. But sometimes the most meaningful—and powerful—interactions come in unexpected moments that are less formal and more about the human connection. In the latest episode of My Rookie Moment, McKinsey senior colleagues share their early experiences with CEOs and how establishing a rapport broadened the way they think about these meetings and how they communicate with others. Check it out and tune into the next episode, “Teamwork,” for more life lessons from our senior leaders.

— Joyce Yoo, digital editor, New York

My Rookie Moment: Meeting with CEOs

For rookie consultants, speaking with a CEO is often an exciting experience—but it can also be intimidating. In this episode, Manish Chopra, Carolyn Dewar, Scott Keller, Richard Lee, Vik Malhotra, Michael Park, and Wesley Walden look back on their encounters with CEOs early in their careers, both in formal and informal settings. They reflect on how they were able to build rapport and establish a connection—often in unexpected ways—that made a lasting impression.

Watch episode 8

Quote of the Day

“Leaders cast a long shadow in their organizations and are effectively always on stage. Your organization simply won’t mobilize around the transformation unless they see the executive team’s personal commitment to its success.”

—McKinsey senior partner Jon Garcia in "The role of the executive team in a transformation: A conversation with Jon Garcia"

Chart of the Day

See today’s chart

Also New

The McKinsey Crossword: World Laughter Day

69 across: Sounds heard on World Laughter Day (celebrated in 2022 on May 1)

Play now

Cloud foundations: Ten commandments for faster—and more profitable—cloud migrations

Cloud migrations flounder quickly unless organizations invest in building the right cloud foundations.

Ten actions

Impact officer in chief: The state infrastructure coordinator’s role

As funding from the Bipartisan Infrastructure Law becomes available, a coordinator could help states set priorities and allocate resources across agencies.

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by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 06:18 - 29 Apr 2022

Women want engineering and other roles in the tech field. Does tech want them back?

The Shortlist

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Our best ideas, quick and curated | February 18, 2022

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Tech is on our minds this week: women in technical roles, that is, and our latest Tech for Execs installment explains why you need a cloud foundation. Plus, news from the private-equity world—from McKinsey’s latest Global Private Markets Review to an interview with Carlyle’s Sandra Horbach.

On a blue background a ladder reaches a pink cloud

Wanted: Women in tech. Companies across industries are boosting their efforts to increase the representation of women by focusing primarily on two targets: hiring them into entry-level roles and establishing parity in the C-suite. But our research has found that many organizations are missing the mark at a key moment: equitable advance in early promotion. Across all industries and roles, only 86 women are promoted to manager for every 100 men at the same level. In technical roles—specifically, engineering and product management—just 52 women are promoted to manager for every 100 men. As a result, women are leaving these technical fields in high numbers.

Diversity in tech. Diverse teams can help debias the technologies that are ever-present and ever-expanding elements of modern life. Artificial intelligence, for example, has tremendous potential to help humans make fair and impartial choices, but only if the AI systems themselves are not embedded with human and societal biases. One hiring algorithm—at a technology company, no less—was discovered to be penalizing applicants from women’s colleges. Its development was subsequently discontinued, but the example shows how AI can not only bake in bias but also deploy it at scale. Conversely, AI can identify and reduce human bias. And AI systems can be improved to prevent the systems from both reinforcing human and societal biases and creating new ones. Disciplines will need to collaborate on technical improvements, operational practices, and ethical standards to make that happen.

Parity. Women earn about half of science and engineering degrees, but they comprise less than 20 percent of the people working in these fields—and the ones who do pursue this career path can often be the only person of their gender in a room. Without a doubt, retaining women in technical roles is crucial for organizations to reach gender parity not just at the top but also throughout the entire workforce. That cannot happen, however, if companies do not retain and advance women in tech roles—and see them as innovators—early in their careers. The task is not simple. It will require management commitment, as well as a systemic approach that includes equitable access to skill building, a structured process that debiases promotions, and a strong culture of support for women.

Removing barriers. AI technologies have tremendous potential to contribute to the global economy. For women, automation presents not only myriad opportunities but also new challenges overlaid onto existing ones. McKinsey estimates that between 40 million and 160 million women across the globe may need to transition into higher-skilled roles by 2030, and they will have to be tech-savvy, mobile, and skilled to do so. If they transition successfully, they will need access to better jobs. But women face pervasive barriers that will require concerted and creative new solutions to enable them to move forward in our ever-automated world.

— Justine Jablonska

OFF THE CHARTS

Private markets: Scaling new heights

After a year of pandemic-driven turbulence that suppressed fundraising and deal activity, private markets rebounded across the board in 2021. According to McKinsey’s latest Global Private Markets Review, fundraising was up by nearly 20 percent year over year to reach a record of almost $1.2 trillion. Dealmakers were busier than ever, deploying $3.5 trillion across asset classes, and assets under management grew to an all-time high of $9.8 trillion as of July, up from $7.4 trillion a year earlier.

Chart showing private markets funds by region

Check out our chart of the day here.

INTERVIEW

‘Tenacity and grit’: Building a career in private equity

Sandra Horbach, managing director and cohead of US buyout and growth at Carlyle, oversees the private-equity company’s three largest funds, with approximately $60 billion in capital under management. She spoke about the state of private equity at McKinsey’s Women in Private Equity Global Forum, held virtually in late 2021. “Technology has completely reshaped the investment landscape,” Horbach told the gathering. “It’s affecting every part of our business now. And, fortunately, it’s opening the door to a lot more interesting investment opportunities.”

The best outfit you’ll ever own but never wear

McKinsey&Company

Fashion-forward

In the news

•

Fashion in another realm. Mainstream brands appeared alongside digital upstarts in a different kind of fashion week—one taking place in the metaverse. The inaugural Metaverse Fashion Week included digital fashion items that users purchased and “wore” as nonfungible tokens (NFTs). It also featured light shows synced to music, a tide pool that guests could wade through without ever getting wet, and a closing performance by the musician Grimes. By 2030, metaverse gaming and NFTs could make up 10% of the luxury-goods market. [Vogue Business]

•

Bling and blockchain. Jewelry—now sold as NFTs—is bedecking metaverse avatars and adorning buyers virtually on videoconferencing platforms. After NFTs were made popular by artists, multiple fashion start-ups and established jewelry brands started selling their designs as NFTs. Some pieces are designed to be worn only in augmented reality (AR) or virtual spaces, while others are packaged as “phygital” offerings—allowing buyers to use the pieces in digital realms and in real life. [NYT]

“We’re just at the tipping point of this new era.… It starts to change the meaning of fashion itself.”

On McKinsey.com

•

Express yourself. From gaming to social media, consumers are spending more time online. Many users want their avatars to be an extension of themselves and to express their individuality in virtual worlds. In particular, Gen Z consumers—who clocked up to eight hours a day in front of screens in 2020—prize personal expression, and fashion is one of the top three categories that they’ll splurge on. The ever-expanding digital universe offers opportunities for brands to pursue new avenues for consumer engagement.

•

Digitally dressed for success. Consumers are accustomed to using filters on social-media platforms. Digital fashion is, for some, the next natural foray into the metaverse mindset. Companies already display seasonal collections through AR, and some luxury brands use NFTs to authenticate products or to create collectible, limited-edition pieces. See our research on new frontiers in digital fashion and learn how to cut through the hype.

— Edited by Sarah Thuerk

Explore virtual fashion

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by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:32 - 29 Apr 2022

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by "Intel Corporation" <intel@plan.intel.com> - 11:05 - 28 Apr 2022

Make it an inside job: Source talent internally

the Daily read

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AN ARTICLE A DAY, PICKED BY OUR EDITORS

We all know quitting has hit record highs. But did you know that more than 80 percent of job seekers are specifically looking for work that enables them to grow? Simply put, there are many more jobs than people looking for work—and employers have to do more than ratchet up their pay scales to retain their best employees. One solution is adopting digital marketplaces, which use AI to match open roles with internal employees who might otherwise have been overlooked. Tune into a recent episode of the McKinsey Talks Talent podcast to learn how talent-marketplace technologies could help you fill your most valuable roles faster—and keep your best talent from joining the Great Attrition.

— Emily Adeyanju, digital editor, New York

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Stave off attrition with an internal talent marketplace

Is your best talent hiding in plain sight? An internal talent marketplace helps match existing employees to open roles—in novel and sometimes unexpected ways.

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Quote of the Day

“We’re going to need jobs that are skill-based, don’t necessarily require college degrees, and are colocated in communities where they could use the jobs.”

—McKinsey partner Eric Chewning, on the impact of US manufacturing on inclusion and sustainability in a new episode of McKinsey’s Future of America podcast

Chart of the Day

Chart of estimated annual value creation/destruction by airlines, per region

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B2B growth is where it’s green

Two authors of an upcoming article on sustainability opportunities share their views on how this imperative goes beyond ethics.

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Number of pebbles and small rocks arranged in a ship's wheel pattern

Hybrid work: Making it fit with your diversity, equity, and inclusion strategy

New research details what empowered employees love about hybrid work models and the risks to diversity, equity, and inclusion if managers get the evolving flexible workplace wrong.

Meet in the middle

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How Latin American physicians view the future of healthcare

The COVID-19 pandemic has accelerated trends in the healthcare industry. A survey of Latin American physicians reveals how they believe the industry will evolve as the pandemic evolves and the future unfolds.

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by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 06:26 - 28 Apr 2022

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by "Remote" <hello@remote-comms.com> - 01:01 - 28 Apr 2022

Harvard takes on its ties to slavery

Intersection Subject Line

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DELIVERING ON DIVERSITY, GENDER EQUALITY, AND INCLUSION

In this issue, we look at an effort by Harvard University to address its ties to slavery. Plus: how student loans are affecting Black Americans.

THE ZEITGEIST

Recognition and redress

A close-up of the hands of a Black college student who is wearing a graduation gown and holding a graduate cap with a yellow tassel.

Pursuing repair. This week, Harvard University announced that it is committing $100 million in support of efforts to “redress—through teaching, research, and service—our legacy with slavery.” The university noted that “the profound harm caused by [Harvard’s] entanglements with slavery and its legacies cannot be valued in monetary terms alone.” Still, Harvard described its financial commitment as “a necessary predicate to and foundation for redress.”

As part of its reparative efforts, Harvard will deepen its partnerships with historically Black colleges and universities (HBCUs), recognizing their “invaluable role … in the educational landscape and the persistent underfunding of these colleges.” McKinsey research shows that HBCUs, which confer 13 percent of bachelor’s degrees earned by Black Americans, are uniquely positioned to accelerate Black economic mobility and boost the economic performance of the United States as a whole.

Among the signatories of the Harvard letter: Harvard Law School graduate Ken Chenault, former CEO of American Express and a leading voice on racial equity, voting rights, and business leaders’ responsibility to take a moral stand against injustice. As Chenault recently told McKinsey: “the role of a leader is to define reality and give hope.”

A Spelman woman. Spelman College, one of two historically Black women’s colleges, has named Dr. Helene Gayle as its next president. Dr. Gayle is an epidemiologist, global public-health leader, and CEO of the Chicago Community Trust. “This is a moment,” she says, “where HBCUs are once again being recognized for the importance that they bring to every sector of this country.” Gayle has set out to make Spelman more affordable and to decrease the amount of debt that its students take on.

Black families across America are disproportionately burdened by student loan debt. Federal data show that Black college grads hold nearly $25,000 more student debt than their White counterparts four years after graduation. By that point, thanks to interest, half of Black grads owe more on their federal loans than they did on the day they graduated (that’s compared with less than one in five White graduates).

The big picture: student loan reform could help the United States advance racial equity.

Editor’s note: Among the Spelman alums congratulating Dr. Gayle was Walgreens CEO (and Spelman board chair) Roz Brewer, who reflected in her 2018 commencement address on the experience of “getting mistaken.”

— Edited by Julia Arnous, an editor in McKinsey’s Boston office

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by "McKinsey Intersection" <publishing@email.mckinsey.com> - 01:51 - 28 Apr 2022

Hackers are ramping up attacks. How much will cybercrime cost by 2025?

McKinsey&Company

The future of cybersecurity

In the news

•

In search of tech talent. As millions of remote workers log onto their computers from home, ransomware and phishing attacks are spiking. But even as cyberthreats keep growing, the talent shortfall in cybersecurity is stark. About 600,000 cybersecurity jobs in the US remain unfilled, and job openings have shot up 29% over the past 12 months. The lack of technical talent is particularly challenging for smaller companies, since they often can’t pay the higher salaries required to entice workers, says one cybersecurity leader. [Bloomberg]

•

Think before you click. In the ever-expanding world of cybercrime, there’s something new to watch out for: QR-code scams. These types of scams aren’t that common, but security experts think there’s a growing risk. QR-code downloads have soared 750% since March 2020. In January, the FBI warned the public to be wary of QR-code tampering, which can direct users to fake websites where criminals steal sensitive personal and financial data. To avoid falling prey to the ruse, never share your personal info with unfamiliar websites. [WSJ]

Today, cyberhacking is a multibillion-dollar enterprise, complete with institutional hierarchies and R&D budgets.

On McKinsey.com

•

The cost of cybercrime. Cyberattacks are on the rise as hackers launch increasingly sophisticated attacks. And companies are increasingly vulnerable. Remote work, increased access to the cloud, and many more internet-connected devices offer flexibility, computing power, and convenience but also create entry points. By 2025, cybercrime may cost organizations $10.5 trillion each year. Soon, hackers will start speeding up their attacks from weeks to days or even hours. Yet many companies still don’t have the cybersecurity talent, knowledge, and expertise to be protected.

•

Three big trends. McKinsey’s work helping global organizations shows that many leaders see the need to step up cybersecurity capabilities. By 2025, organizations are projected to spend $101.5 billion on cybersecurity, McKinsey analysis shows. Employees remain a key vulnerability. In early 2020, cybercriminals used compromised employee credentials to access millions of guest records at a top hotel chain. See three cybersecurity trends that will have the biggest significance for organizations over the next three to five years.

— Edited by Belinda Yu

Look ahead in cybersecurity

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by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:33 - 28 Apr 2022

Social media as a service differentiator: How to win

the Daily read

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AN ARTICLE A DAY, PICKED BY OUR EDITORS

Let’s say you have a question about a product or some feedback for the company about your experience with it. Chances are you’ll head to social media. Indeed, one survey discovered that when consumers have a bad experience, half will complain publicly on social channels. These days, customer service is a public affair, and more companies are turning to social as a full-service channel that can help customers and drive positive brand experiences. And while there are challenges aplenty, organizations that get it right could see an edge. A new article lays out a framework on six key areas of social media servicing excellence—check it out for #HappyCustomers.

— Joyce Yoo, digital editor, New York

Graphic image displaying social media likes as thumbs up

Social media as a service differentiator: How to win

With customers increasingly moving their service interactions onto social media, companies have an opportunity to leverage these channels to differentiate their service experience.

Keep up

Quote of the Day

“Without an inclusive environment, even an organization with a diverse employee population will probably struggle to improve its long-term performance. The widespread adoption of hybrid work has complicated the struggle to build and maintain such cultures.”

—Get informed on how hybrid work can work for everyone in “Hybrid work: Making it fit with your diversity, equity, and inclusion strategy”

Chart of the Day

Chart showing satisfaction with patient-centric healthcare models

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Also New

Logistics disruptors: Flexport’s Sanne Manders on being customer obsessed and thinking differently

Founded in 2013, Flexport rose to become the sixth-largest freight forwarder in the transpacific region in less than a decade. How?

Learn from a leader

Map of the planet representing a global social network

Space around the globe

The United States remains the epicenter of space activity, but many more countries are getting involved and increasing their investments.

Shoot for the stars

Fueling digital operations with analog data

Intelligent document processing, with humans in the loop, allows companies to bridge the business operations gap between the analog and digital worlds.

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by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 06:24 - 27 Apr 2022

The semiconductor industry still struggles with shortages. Here’s how chip companies can succeed.

McKinsey&Company

Semiconductor snapshot

In the news

•

Tech talent wanted. The semiconductor industry has a talent issue, particularly in the US. As demand for chips has increased, semiconductor companies are struggling to hire engineers and other skilled workers in a tight labor market. From 2020 to 2021, job openings for electrical engineers in the US chip sector jumped 78%, far faster than in other sectors. Part of the problem is a shortage of workers with the technical skills that are most in demand. Some tech companies and colleges are launching semiconductor-specific higher-education programs that are intended to build up the talent pipeline. [Axios]

•

Clouds forming? The Semiconductor Industry Association reported $52.5 billion in global sales for the month of February, a monthly record that’s also a one-third increase from the same month last year. While those numbers sound promising, the industry still faces tough challenges. Long lead times—beyond 35 weeks on average for certain types of chips—are on the rise. The cyclical nature of the semiconductor business, combined with higher interest rates, has given investors pause. Chip stocks have generally been down for the year. [WSJ]

Last year, semiconductor shareholders saw even higher returns, averaging 50% per annum. Behind the scenes, however, semiconductor companies are facing a host of challenges.

On McKinsey.com

•

Chip crunch. As chip demand has taken off, semiconductor companies would appear to be in a strong position. Annual revenue increased by 9% in 2020 and by 23% in 2021, up from the 5% reported in 2019. Even before the pandemic—when remote work became the norm and consumers and businesses upped their technology purchases—semiconductor companies delivered an annual average of 25% in total shareholder returns from the end of 2015 to the end of 2019. Still, chip shortages continue to be a challenge, as companies deal with increased design complexity, talent shortages, and supply chain disruptions.

•

Start strategizing. Despite ongoing chip shortages, semiconductor companies have an opportunity to improve productivity and revenues. Focusing on leading-edge chips, pursuing innovations, and improving the talent pipeline are among the ways industry players can potentially stay ahead. McKinsey analysis reveals that strong growth is possible for semiconductor companies of all sizes. Read on to learn more strategies on how to lead in the semiconductor world, including six critical areas to gain competitive advantage.

— Edited by Andrew Simon

Succeed in semiconductors

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by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:53 - 27 Apr 2022

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