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The evolving landscape of leadership in turbulent times

Leading Off

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ESSENTIALS FOR LEADERS AND THOSE THEY LEAD

Brought to you by Alex Panas, global leader of industries, & Axel Karlsson, global leader of functional practices and growth platforms

Welcome to the latest edition of Leading Off. We hope you find our insights useful. Let us know what you think at Alex_Panas@McKinsey.com and Axel_Karlsson@McKinsey.com.

—Alex and Axel

Welcome to the 200th edition of Leading Off. We launched this newsletter in November 2020, when the COVID-19 pandemic was reshaping so many aspects of our lives and livelihoods—including the skills that leaders need to successfully navigate the challenges and opportunities of the day. Since then, Leading Off has examined enduring themes (such as effective leadership approaches, problem-solving, and purpose) as well as the topics that continue to transform business and redefine what it takes to lead well. This week, we look at leadership during unpredictable times—and highlight some of our best thinking from the past few years, based on the articles and topics that resonated most with you, our Leading Off readers.

Whether you’ve been with us since the beginning or subscribed more recently, thank you for reading. We encourage you to explore past issues to see how the conversation about leadership has evolved.

An IDEA

An image linking to the web page “New leadership for a new era of thriving organizations” on McKinsey.com.

Adapt your approach

Modern organizations are facing constant disruptions, from geopolitical tensions to rapid technological advances to major demographic shifts among their workforces. According to McKinsey’s Aaron De Smet , Arne Gast , and Johanne Lavoie , the most effective leaders will take a more open, adaptable, and inclusive approach to guiding their companies through the turbulence. “We are moving from an era of individual leaders to an era of networked leadership teams that steer the organization,” the authors say. “The old hierarchical model of leadership is increasingly seen as an obstacle to meeting the complex demands facing today’s organizations.” To deliver sustainable growth, leaders can embrace five critical shifts in mindsets and ways of working—including moving beyond profit to impact and beyond control to collaboration. “This new model has a clear purpose and focus: to benefit all stakeholders by enabling people to work and learn together to build and operate a continually evolving system for creating value,” they say.

A BIG NUMBER

6

That’s how many steps leaders can take to start their journey toward joining a corporate board. These include understanding the role and objectives of serving as a director and increasing professional visibility. McKinsey Senior Partner Celia Huber and coauthors note that board service provides executives with opportunities for personal and professional growth by helping them develop new skills and learn about different governance processes and leadership styles.

A QUOTE

“The chief of staff should help connect the leader to the rest of the organization and ensure that they are seen as approachable.”

That’s McKinsey Senior Partner Andrew Goodman and coauthors on how to excel as a chief of staff—a role that is critical to helping the CEO and other C-suite leaders execute their mission. They offer eight pieces of advice for people in the role; among them: Clearly define the scope of the position, build trust with executives, and make the role your own. “It’s a privileged position, bringing access to the top leadership and the most pressing corporate agendas but requiring an intense focus and unique skills,” the authors say.

A SPOTLIGHT INTERVIEW

An image linking to the web page “How to master the seven-step problem-solving process” on McKinsey.com.

Taking a structured approach to problem-solving does not mean being inflexible. Quite the opposite, says Monograph Capital Founder Charles Conn. In his book, Bulletproof Problem Solving: The One Skill That Changes Everything, Conn outlines a seven-step problem-solving process. “It’s actually to give you the scope for creativity, which often doesn’t exist when your problem-solving is muddled,” he says. Conn, who cowrote the book with fellow McKinsey alumnus Rob McLean, recommends starting the process by defining the problem at hand—then using “logic trees” to break down the problem into parts and prioritizing the most important elements (or “branches”) to address to achieve the desired outcome. “People spend a lot of time arguing about branches that are either not important or that none of us can change,” Conn says.

JERKS AT WORK

An image linking to the web page “Five Fifty: Jerk factors” on McKinsey.com.

The best leaders blend the attributes that fit their individual styles with the needs of their organizations—which could mean being collaborative and curious, visionary and inspirational, or self-reflective and resilient. But there’s one approach that everyone can agree on: Don’t be a jerk. Stanford University professor Robert Sutton identifies some triggers that could cause ugly behavior in the workplace , including wielding power over others, being too competitive, and always being in a hurry. Sutton says that bullying or rude bosses can undermine employees’ decision-making skills, productivity, and creativity. Tomas Chamorro-Premuzic, a professor at Columbia University and University College London and author of Why Do So Many Incompetent Men Become Leaders?: (And How to Fix It), notes that good bosses control their temper , show empathy, and connect with employees on a human level. “If you’re managing people,” he says, “it’s important that you also manage yourself.”

Lead by adapting to the moment.

— Edited by Eric Quiñones, senior editor, New York

An image linking to the web page “McKinsey Quarterly” on McKinsey.com.

McKinsey Classics

If you enjoyed these timeless insights that resonated with Leading Off readers, consider subscribing to our McKinsey Classics newsletter. Each issue surfaces an evergreen article from our archive—complemented by McKinsey’s latest thinking on the topic.

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by "McKinsey Leading Off" <publishing@email.mckinsey.com> - 03:22 - 17 Feb 2025

McKinsey in global media: Early warning systems, competitiveness, climate tech, and more

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New from McKinsey & Company

McKinsey ideas in global media outlets: Early warning systems, competitiveness, climate tech, and more

In the last quarter of 2024, McKinsey authors published more than 70 articles in publications all over the world, including Mexico , India , Kazakhstan , and the United States , and on topics ranging from the future of China to hurricane relief . Here are some highlights.

Using an early-warning system to make supply chains more resilient

Harvard Business Review
By Ani Kelkar, Varun Marya, and Mihir Mysore

Install an emergency light

Leadership for our times: Build on the past to create a better future

Forbes
By Raju Narisetti and Ida Jeng Christensen

Defining great leadership, past and present

The world has only deployed 10% of the climate technologies it needs to achieve net zero

Fortune
By Chris Bradley, Mekala Krishnan, and Humayun Tai

Speed up the energy transition

A cybersecurity handbook for corporate directors

Security Infowatch
By Justin Greis and Daniel Wallance

Build in oversight from day one

Europe’s competitiveness is stalling

Friends of Europe
By Jan Mischke

How to do better

To see more essential reading on topics that matter, visit McKinsey Themes.

— Edited by Cait Murphy, editor, New York

Follow our thinking

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by "McKinsey & Company" <publishing@email.mckinsey.com> - 03:11 - 16 Feb 2025

The week in charts

The Week in Charts

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ALL THE WEEK’S DATA THAT’S FIT TO VISUALIZE

The Week in Charts series offers data visualizations that help explain a changing world—as we strive toward sustainable and inclusive growth. In case you missed them, this week’s graphics explored pharma R&D spending, luxury’s slowing growth, and AI budgets.

FEATURED CHART

Pharma’s Rx for R&D

A chart titled “The growth of outsourced R&D is outpacing overall pharma R&D spending.” Click to open the full article on McKinsey.com.

This week’s other select charts

Luxury’s lull

AI budgets grow in life sciences

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by "McKinsey Week in Charts" <publishing@email.mckinsey.com> - 02:13 - 15 Feb 2025

How small teams can create big wins

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TIMELESS INSIGHTS—AND WHY THEY’RE AS RELEVANT AS EVER

Brought to you by Alex Panas, global leader of industries, & Axel Karlsson, global leader of functional practices and growth platforms

Welcome to the latest edition of McKinsey Classics. We hope you find our perspectives useful. Let us know what you think at Alex_Panas@McKinsey.com and Axel_Karlsson@McKinsey.com.

—Alex and Axel

February 2025

In honor of the 60th birthday of McKinsey Quarterly, the McKinsey Classics newsletter is dedicating a full year to enduring Quarterly articles that were ahead of their time. Enjoy, and check out other celebration highlights such as special themed issues and bonus digital features.

Unleashing the power of small, independent teams

As companies continue to find the right balance of hybrid, remote, and in-office working policies, leaders are grappling with how to create the best conditions for their employees to thrive. They would do well to redouble their efforts in one critical area: supporting small, independent teams.

Small teams are the lifeblood of a successful, agile corporation. Any company facing pressure from fast-moving digital natives or digitally transformed incumbents can no longer afford to shift their strategies every few years. They need to move quickly, and small, independent teams can help companies make the right moves to stay ahead of the competition. But small teams—and their managers—need the right conditions to flourish.

Companies can start by empowering teams with the authority and resources they need to make key decisions independently and by providing teams with a clear and unobstructed view of their target customers. Just as important is training midlevel managers on how to let their teams work in a truly agile manner. This may require embracing new ways of interacting with team members, including acting as stewards rather than superiors, and allowing teams to chart their own course.

Life moves pretty fast—companies need to as well. To learn more about staying agile to stay ahead, read our 2018 McKinsey Quarterly classic “Unleashing the power of small, independent teams.”

Let your agile teams loose

Read our latest thinking on this classic topic

Go, teams: When teams get healthier, the whole organization benefits

Team effectiveness is crucial to organizational health, yet many teams struggle to collaborate effectively. New data helps explain what makes teams work, including understanding different team archetypes, encouraging leaders to shift away from a command-and-control mindset, and prioritizing key behaviors—then committing to making them stick. Read our latest insights on the topic from Aaron De Smet , Gemma D’Auria , Liesje Meijknecht, Maitham Albaharna , and coauthors.

Crack the code of team effectiveness

—Edited by Drew Holzfeind, editor, Chicago

Is there a classic business topic you’d like us to feature? Send us an email—we’d love to hear from you.

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by "McKinsey Classics" <publishing@email.mckinsey.com> - 11:46 - 15 Feb 2025

EP150: 12 Algorithms for System Design Interviews

͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

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EP150: 12 Algorithms for System Design Interviews

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This week’s system design refresher:

How the Garbage Collector Works in Java, Python, and Go! (Youtube video)
12 Algorithms for System Design Interviews
How Kubernetes Works?
PostgreSQL 101: The Everything Database
Top 12 Tips for API Security
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How the Garbage Collector Works in Java, Python, and Go!

12 Algorithms for System Design Interviews

No alternative text description for this image

Bloom Filter: Check if a requested item is in the cache before performing disk operations.
Geohash: Used to build location-based services.
HyperLogLog: Counting unique queries performed by users in a search.
Consistent Hashing: Used for efficient data distribution between the cluster’s nodes.
Merkle Tree: Used to detect inconsistencies between data replicas across multiple nodes.
Raft Algorithm: Used to achieve consensus on log replication.
Lossy Count: Network traffic analysis, web analytics, and identifying heavy hitters.
QuadTree: Used to build location-based services.
Operational Transformation: Used to support collaborative editing systems.
Leaky Bucket: Used for rate limiting
Rsync: Synchronizing files and directories between two different systems.
Ray Casting: Used for geospatial analysis, collision detection in video games, and computer graphics.

Over to you: Which other algorithm will you add to the list?

How Kubernetes Works?

Kubernetes (K8S) is an open-source container orchestration platform originally developed by Google and now maintained by the Cloud Native Computing Foundation (CNCF).

Here’s how developers interact with Kubernetes:

Developers create manifest files describing the application.
Kubernetes takes these manifest files, validates them, and deploys the applications across its cluster of worker nodes.
Kubernetes manages the entire lifecycle of the application.

Kubernetes is made up of two main components:

Control Plane: It is like the brain of Kubernetes and consists of the following parts:
- API Server: It receives all incoming requests from users or CLI.
- Scheduler: It decides where to run new pods based on resource availability and constraints.
- Controller Manager: It ensures that the cluster’s desired state matches the actual state.
- Etcd: The key-value store where Kubernetes keeps all of its data, including configurations, cluster states, and desired states of applications.
Worker Nodes: They are the workers in a cluster. Each node has the below sub-components:
- Kubelet: Main worker on each node. It communicates with the API server, gets instructions, and ensures that the containers are running as expected.
- Kube-proxy: Handles networking on each node.
- Container runtime

Over to you: Have you used Kubernetes for your projects?

PostgreSQL 101: The Everything Database

Built using C language, PostgreSQL is the most popular choice of database from small web apps to enterprise systems. It runs as a multiprocess system and follows ACID principles.

The key points about PostgreSQL’s Architecture are as follows:

PostgreSQL supports concurrent client connections independently. Each client connection to PostgreSQL creates a dedicated server process.
The Postmaster Process is the main supervisor that manages all other PostgreSQL processes. It controls the entire database instance.
Background workers run parallel processes when needed to handle specialized tasks.
PostgreSQL shared memory is a central memory area containing multiple buffers such as Shared, WAL, Clog, and Temporary buffers. All components communicate through this shared memory.
PostgreSQL also has several auxiliary processes such as:
- BG Writer: Manages background writing
- WAL Writer: Handles write-ahead logging
- Auto Vacuum: Maintains database cleanliness
- Checkpointer: Ensures data consistency
- Stats Collector: Gathers statistics
- System Logger: Manages Logging
- Archiver: Handles archiving
- Replication launcher: Manages replication
PostgreSQL has different types of physical files for varied needs such as:
- Data Files: Stores actual database data
- WAL Files: Write-ahead log storage
- Archive Files: Backup and recovery data
- Log Files: System and error logs

Over to you: What else would you add to understand more about PostgreSQL’s architecture?

Top 12 Tips for API Security

Use HTTPS
Use OAuth2
Use WebAuthn
Use Leveled API Keys
Authorization
Rate Limiting
API Versioning
Whitelisting
Check OWASP API Security Risks
Use API Gateway
Error Handling
Input Validation

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by "ByteByteGo" <bytebytego@substack.com> - 10:36 - 15 Feb 2025

Hi there, did you get chance to look at this?

Hi there,

I hope you're well, I wanted to reach out because Your Telecoms Consultant has been recommended to us, and we have a unique opportunity that you may be interested in.

The My Caddie Golf Platform featuring Birchwood Golf Club can help you and the team generate business from our members and visitors, we are looking for a local Telecommunication Company to become our official partner.

Aligning your business with such a prestigious establishment can elevate your brand image and generate a positive association in the minds of potential customers.

This partnership presents an ideal opportunity to put your company in front of a vast, local and affluent audience whilst also giving you complimentary golf to use as you see fit. Even if you're too busy at the moment, we still like to have you on board as a trusted local company, who could provide our other partners with advice and pass on referrals.

Here are some of the features you will receive in the partnership:

- Exclusivity for your sector.
- Providing you with exposure on the members and visitors iPhone app.
- Exposure on the members and visitors Android app.
- Your branding on the flyovers on one of the holes on our Birchwood Golf Club web flyovers which is trackable and targeted to your demographic within the local area.
- Access to our networking groups between all partners and plus ones.
- Complimentary golf for you to entertain clients, colleagues and guests.

The cost is the equivalent of just £26 per week for a 2-year partnership + £399 Artwork (one-off, optional) + VAT.

Artwork is optional but if you want us to do it for you, you can change it up to 8 times over the 2 years so every quarter you can revamp it and put new offers on. We'll also give It to you for further marketing.

I have reached out to a number of companies locally and will be operating on a first come first serve basis so if the above is of interest please let me know as soon as possible to avoid disappointment.

Best wishes,

Jack Stevens
Account Manager
0113 5197 994

We have sent this email to info@learn.odoo.com having found your company contact details online. If you don't want to get any more emails from us you can stop them here - https://w1g.biz/iolmarketinglz/Preference.aspx?p1=MYMTEwNDM0NTE5MDU5MTg3OTYzUzU2NDQ6QkI1RkYzMTkyMkJCRkFEOTJCOTYzN0I4OEY3RDQ5RTc%3d-&p=1

West 1 Group UK Limited, registered in England and Wales under company number 07574948. Our registered office is Unit 1 Airport West, Lancaster Way, Yeadon, Leeds, West Yorkshire, LS19 7ZA.

Disclaimer: Our app operates independently. While we provide authentic and accurate hole-by-hole guides, we do not have a direct association with Birchwood Golf Club or claim any endorsement from them. We aim to offer golfers a reliable guide as they navigate their favourite courses. As a value-add for our advertisers, we offer free tee times at Birchwood Golf Club which we procure as any customer would, directly from the venue. We also host networking events, which may be held a various local venues as well as online sessions.Furthermore, advertisers have the unique opportunity to be featured in our flyovers of each golf hole. All offerings are subject to availability and terms.

by "Jack Stevens" <jack@w1g.biz> - 06:36 - 15 Feb 2025

Introducing the My Caddie Golf Platform featuring Birchwood Golf Club

Hi there,

I hope you're well, I wanted to reach out because Your Telecoms Consultant has been recommended to us, and we have a unique opportunity that you may be interested in.

The My Caddie Golf Platform featuring Birchwood Golf Club can help you and the team generate business from our members and visitors, we are looking for a local Telecommunication Company to become our official partner.

Aligning your business with such a prestigious establishment can elevate your brand image and generate a positive association in the minds of potential customers.

This partnership presents an ideal opportunity to put your company in front of a vast, local and affluent audience whilst also giving you complimentary golf to use as you see fit. Even if you're too busy at the moment, we still like to have you on board as a trusted local company, who could provide our other partners with advice and pass on referrals.

Here are some of the features you will receive in the partnership:

- Exclusivity for your sector.
- Providing you with exposure on the members and visitors iPhone app.
- Exposure on the members and visitors Android app.
- Your branding on the flyovers on one of the holes on our Birchwood Golf Club web flyovers which is trackable and targeted to your demographic within the local area.
- Access to our networking groups between all partners and plus ones.
- Complimentary golf for you to entertain clients, colleagues and guests.

The cost is the equivalent of just £26 per week for a 2-year partnership + £399 Artwork (one-off, optional) + VAT.

Artwork is optional but if you want us to do it for you, you can change it up to 8 times over the 2 years so every quarter you can revamp it and put new offers on. We'll also give It to you for further marketing.

I have reached out to a number of companies locally and will be operating on a first come first serve basis so if the above is of interest please let me know as soon as possible to avoid disappointment.

Best wishes,

Jack Stevens

Account Manager

0113 5197 994

We have sent this email to info@learn.odoo.com having found your company contact details online. If you don't want to get any more emails from us you can stop them here.

West 1 Group UK Limited, registered in England and Wales under company number 07574948. Our registered office is Unit 1 Airport West, Lancaster Way, Yeadon, Leeds, West Yorkshire, LS19 7ZA.

Disclaimer: Our app operates independently. While we provide authentic and accurate hole-by-hole guides, we do not have a direct association with Birchwood Golf Club or claim any endorsement from them. We aim to offer golfers a reliable guide as they navigate their favourite courses. As a value-add for our advertisers, we offer free tee times at Birchwood Golf Club which we procure as any customer would, directly from the venue. We also host networking events, which may be held a various local venues as well as online sessions.Furthermore, advertisers have the unique opportunity to be featured in our flyovers of each golf hole. All offerings are subject to availability and terms.

by "Jack Stevens" <jack@w1g.biz> - 09:24 - 14 Feb 2025

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by "Babli Tripathi" <bablitripathiseo@gmail.com> - 07:35 - 14 Feb 2025

What’s the future of the office?

On McKinsey Perspectives

DELIVERING ACTIONABLE INSIGHTS ON THE DAY’S NEWS

Brought to you by Alex Panas, global leader of industries, & Axel Karlsson, global leader of functional practices and growth platforms

Welcome to the latest edition of Only McKinsey Perspectives. We hope you find our insights useful. Let us know what you think at Alex_Panas@McKinsey.com and Axel_Karlsson@McKinsey.com.

—Alex and Axel

The office of tomorrow

In the news

•

Shortage of premium space. Even as office vacancy rates remain high, some US employers are underwhelmed by their workspace options, notes The Wall Street Journal. Large companies (which are increasingly asking staffers to work in person) often seek buildings with higher-end features, such as eateries, gyms, and outdoor space. But they are less than impressed with the current stock. To meet the rising demand for premium offices, real estate companies are starting to develop new sites, including one that plans to break ground this year on a project near New York City’s Grand Central Station. [WSJ]

•

Record vacancies. In spite of a wave of return-to-office mandates, office vacancies in the US reached a record high in 2024, Axios reports. Across 50 US metro areas, an average of 20.4% of office space remained unoccupied as many employees continued to work remotely, a US data and analytics firm found. Demolishing older office buildings—along with their outmoded cubicle farms—and transforming them into residential buildings could help to reduce the amount of vacant space. [Axios]

The stabilized global average for office attendance is now 3.5 days per week.

On McKinsey.com

•

Real estate’s new era. The COVID-19 pandemic has had a lasting effect on office attendance, occupancy, and demand, according to McKinsey research from Senior Partners Olivia White and Sven Smit and coauthors. In Empty spaces and hybrid places: The pandemic’s lasting impact on real estate, their findings reveal that in San Francisco, for example, the share of total office space that was vacant was ten percentage points higher in 2022 than it was in 2019. By 2030, demand for offices in major global cities will likely remain lower than it was before the pandemic.

•

Bringing workers back. Real estate owners, operators, and the companies that occupy offices must conceive of a new generation of workplaces—which may mean offering top-notch amenities and prime locations to entice people back into the office. “To beat the working-from-home alternative, spaces should ‘earn the commute,’” McKinsey Senior Partner Aditya Sanghvi suggests. Explore our new interactive, “The future of the office,” for more information on four crucial attributes of the office of tomorrow, and discover more of McKinsey Quarterly’s insights in a special edition to mark its 60th birthday.

Reenvision the office

—Edited by Belinda Yu, editor, Atlanta

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hello manager

Estimado gerente,
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Non-Functional Requirements: The Backbone of Great Software - Part 1

͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

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Non-Functional Requirements: The Backbone of Great Software - Part 1

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Non-functional requirements (NFRs) are as critical as functional requirements because they define a system's qualities and operational parameters.

While functional requirements specify what a software product should do (for example, “users must be able to log in”), non-functional requirements define how well it must accomplish these tasks under real-world conditions (for example, “the login process should respond within two seconds under peak load” or “all user credentials must be encrypted and stored securely”).

Together, functional and non-functional requirements create a foundation for building great software systems.

NFRs are essential for the following reasons:

Quality of Service: NFRs like response time, availability, and usability directly affect the user’s perception of quality. A system that fulfills its functional requirements but is slow, constantly crashes, or is difficult to use can undermine user trust and satisfaction.
System Stability: Requirements such as reliability, fault tolerance, and recoverability help maintain stable operation even when part of the system fails. Without these, unhandled errors can escalate into large-scale outages.
Security and Compliance: Security-related NFRs dictate how data is protected, how access is controlled, and how audits are conducted. Neglecting these can lead to breaches, legal consequences, or reputational damage.
Scalability and Performance: Requirements for throughput, capacity, and resource utilization ensure the software can handle growth in users or data. If not addressed from the start, scaling can become prohibitively expensive or technically challenging later on.
Maintenance and Evolution: Maintainability, testability, and modularity requirements determine how easily bugs can be fixed, features added, or adaptations made to changing environments. Overlooking them can lead to ballooning technical debt, slowing down future development.

In short, non-functional requirements are not mere “nice-to-haves” but essential components that ensure a software system truly meets user expectations and withstands real-world challenges.

In this article (Part 1), we’ll look at the differences between functional and non-functional requirements. Then, we’ll explore the various trade-offs in NFRs and their architectural impact on building systems.

Functional vs Non-Functional Requirements...

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by "ByteByteGo" <bytebytego@substack.com> - 10:36 - 13 Feb 2025

Re: Join us for the most transformative platform update yet

Hi MD,

Just bumping this up in what I'm sure is a very busy inbox. Are you available for a discussion prior to the event?

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On Feb 11, 2025 9:14 AM, "Thomas Sampassa-Ilunga" <tilunga@newrelic.com> wrote:

Hi MD

I’m thrilled to invite you to New Relic Now+, where Intelligent Observability breaks new ground on 27th February (9am GMT / 10am CET).
At this free virtual event, we’re unveiling New Relic’s most transformative platform update yet, designed to go far beyond system health and uptime to power real-time business impact and leverage intelligence to accelerate developer velocity.

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What it takes to achieve—and sustain—growth

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Mindsets for growth

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More risk averse. CEOs must be willing to take risks to ensure their organizations’ long-term success, The Financial Times reports. Yet as senior leaders contend with technological change, geopolitical uncertainty, and job-related stress, it can seem harder and harder to pursue bold goals. A US not for profit found that CEOs have focused less on charisma and strategy and more on implementation since 2008. But leaders who take the leap to pursue larger-scale initiatives and investments in the future can energize their organizations, lift ambitions, and unite employees—as well as generate more value. [FT]

•

Long-term success. In the face of economic uncertainty and cost pressures, CFOs are becoming increasingly strategic and growth-focused leaders of their organizations, Raconteur reports. While cutting long-term initiatives (such as environmental, social, and governance programs) can have near-term benefits, it can also jeopardize future growth. For finance leaders to maintain a balance between short-term wins and long-term planning, they may need to convince other C-suite leaders of why—and how—the business should stay focused on its goals for the long run. [Raconteur]

High-growth companies experience 50% higher TSR than their peers.

On McKinsey.com

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Five key mindsets. Through-cycle outperformers (the companies that grow faster and earn higher profits than peers do by prioritizing long-term growth through an economic cycle’s ups and downs) tend to produce higher revenue growth than others. Yet our research finds that, on average, leaders spend only 22% of their time on long-term-growth initiatives, with the rest being spent on short- and medium-term projects. Explore five critical mindsets that can foster sustainable growth.

Learn to lead for growth

—Edited by Belinda Yu, editor, Atlanta

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Superagency: The transformative potential of AI

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AI in Action: An interactive learning journey is a complement to our Superagency in the workplace report , both inspired by Silicon Valley pioneer Reid Hoffman’s book Superagency: What Could Possibly Go Right with Our AI Future.

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How to build your leadership muscle

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Champion CEOs

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Maintaining peak performance. How can companies maintain high levels of productivity and, at the same time, prevent burnout? When expectations for employees exceed sustainable levels of performance, it’s helpful to consider the work culture’s cadence—that is, the speed at which things get done—an expert shares in Financial Management. Successful athletes know that they can’t constantly push themselves to achieve. By managing their energy and creating periods of recovery, athletes, as well as workforces, can reach their highest potential. [Financial Management]

•

Making time to recover. Top athletes understand the importance of rest, and one doesn’t have to be an elite athlete to take advantage of their tried-and-true recovery practices. As The New York Times reports, a US ice hockey team recommends that its players spend up to five minutes soaking in a cold tub after games. Players say that the practice reduces inflammation and feels refreshing. Stretching, avoiding sugary foods, and using a cold mattress can also help the body and mind recover after a grueling game, professional athletes say. [NYT]

Rest and recovery contribute to peak performance. For CEOs, this means scheduling recovery periods on the job and engaging in activities off it.

On McKinsey.com

•

CEO as athlete. Elite athletes and modern CEOs have a lot in common, according to Bob Sternfels , McKinsey’s global managing partner, and Daniel Pacthod , senior partner. Just as modern sports stars are stronger, better coached, and better prepared than those of the past, today’s best leaders have made profound shifts in their thinking about and approach to the job. Indeed, McKinsey research has identified several traits that are required to lead in the 21st century: for example, positive energy, a sense of service, and a belief in continuous learning.

•

Depending on downtime. One thing that enables great athletes to perform at their best is using their time purposefully. Similar to an elite athlete who maintains a game-day routine, the best CEOs manage their time meticulously. A helpful practice is to develop a “tight but loose” calendar that includes both promptly run meetings and blocks of unscheduled time. For instance, the CEO of a global tech company said that he keeps 20% of his calendar empty, which enables him to reflect and to react to emerging situations. Discover five practices of elite athletes that business leaders can adapt.

Outperform like a star athlete

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