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Empowering employees with AI
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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
—Edited by Belinda Yu, editor, Atlanta
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by "Only McKinsey Perspectives" <publishing@email.mckinsey.com> - 12:33 - 11 Feb 2025 -
The future of the office
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New from McKinsey Quarterly
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with purpose,
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for connectivity,
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that are digitally enhanced, and
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that are oriented around sustainability.
Access the interactive with a free digital Quarterly membership, which in this commemorative year includes special issues, bonus digital features, and classic articles previously available only in print. Plus, get past digital Quarterly issues and downloads of nearly 100 important reports in The McKinsey Insights Store.
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by "McKinsey & Company" <publishing@email.mckinsey.com> - 09:49 - 10 Feb 2025 -
Streamlined shipments - overcome address errors for good
Don’t let address errors delay your shipments
Don't let address errors delay your shipments
Administrative Division Changes in three countries
Monthly changes
⛰️"Devil's Paradise": Life at the top of the world⛰️
Don't let address errors delay your shipments
Looking to streamline address standardization, reduce CO₂e emissions, or ensure on-time delivery?
GeoPostcodes provides the geolocation data solutions you need to future-proof your shipping operations and minimize regulatory risks.
Meet us in person at Manifest Las Vegas (Feb 10-12)—the world’s largest supply chain and logistics tech event—to discuss how our data can optimize your operations.
The new update reflects the latest administrative division changes that came into effect on January 1, 2025, in Belgium, France, and Germany.
These updates include recent mergers and renamings in municipalities.
The corresponding updates have also been applied to parent administrative divisions (provinces, departments, regions, etc.) to maintain complete geographic hierarchy accuracy.
MONTHLY CHANGES
In January, we updated 114,266 rows in our postal database.
Full Postal & Street updates
Belgium, Germany, United Kingdom
Postal database patches
(small changes)
Canada (P.O. Box), France (Municipalities merges and renames), Italy (Postcodes, Alternative names), Sweden (Alternative names), Switzerland (Alternative names)
Postal boundaries patches (small changes)
Romania
Administrative boundaries patches (small changes)
Belgium, Canada, French Southern Territories, South Korea, United States
For a detailed changelog, take a look at the CSV file.
"Devil's Paradise": Life at the top of the world
Did you know there's a town so high up in the mountains that it defies what we think is possible for human survival?
La Rinconada, Peru, is the highest permanent settlement on Earth, sitting at 5,046m above sea level.
Despite the extreme conditions, around 13,000 people call it home, hoping to strike gold in local mines.
Life expectancy is shockingly low, at just 30-35 years, as the lack of oxygen takes a toll on health.
The town's residents have long been subjects of research to understand how the body adapts to such extreme conditions.
Would you ever visit this high-altitude town? Just don’t forget your oxygen mask! 😉
Follow us on LinkedIn for more geographical facts like this!
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by "Jérôme from GeoPostcodes" <jerome@geopostcodes.com> - 05:29 - 10 Feb 2025 -
A leader’s guide to sustaining growth
Leading Off
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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
All leaders want to realize sustained growth at their organizations, but few accomplish that feat. Among S&P 500 companies, for instance, only one in ten reports growth above GDP for more than 30 years, McKinsey research shows. How can leaders push their organizations to consistently grow and outperform their peers over the long run? They can start by developing a growth mindset. Making a conscious choice to pursue growth helps to shape their decision-making and actions across all areas of the business—and they maintain this attitude even in the face of unexpected or disruptive challenges. This week, we look at how leaders can turn their mindsets into behaviors that enable growth.
Although many leaders say they are committed to long-term growth, their actions don’t always match their ambitions. A McKinsey survey of more than 500 leaders shows that respondents spend only 22 percent of their time on long-term growth initiatives. What’s the antidote, then? McKinsey’s Andy West, Greg Kelly, Jill Zucker, Michael Birshan, and coauthors note that leaders of companies that outperform their peers align their behaviors with five critical mindsets: prioritizing growth, acting boldly, maintaining a customer-centric approach, attracting and nurturing talent, and executing with rigor. When leaders adopt these mindsets, say the authors, they are better able to spend more time on long-term growth initiatives, rather than getting sidetracked by short-term issues. The mindsets also enable leaders to allocate resources to growth opportunities and consistently communicate that growth is their North Star. “The journey to growth is a marathon, not a sprint: It often requires more than 18 months to see results,” the authors say. “To get there, leaders need more than just ambition and business savvy; they need a holistic approach with courage and resilience at the core.”
That’s the number of strategies that companies can follow to achieve continuous industry-leading growth. McKinsey’s Andy West, Ari Libarikian, Erik Roth, Greg Kelly, and coauthors note that fewer than one in four companies outpace their industry peers on revenue and profit growth. To overcome those odds, the authors’ strategies for “courageous growth” include building an innovation culture and mindset; growing the core business with data, analytics, and AI; and expanding into “right to win” businesses.
That’s McKinsey’s Harald Fanderl, Oliver Ehrlich, Robert Schiff, and Victoria Bough on how companies can grow by improving the customer experience. Rather than aggressively acquiring new customers to fend off competitors, larger companies in many industries can achieve “experience-led growth” by better serving their current customers. The authors note that “80 percent of the value creation achieved by the world’s most successful growth companies comes from their core business—principally, unlocking new revenues from existing customers.”
As cofounder of Cognizant, a global IT outsourcing company, Frank D’Souza quickly learned to manage growth—of both the organization’s performance and its people. In an interview with McKinsey’s Hans-Werner Kaas, D’Souza says that developing a strong client-focused culture was critical to maintaining long-term performance. As Cognizant expanded rapidly—including hiring 75,000 people in D’Souza’s last year as CEO—D’Souza worried about maintaining its culture. His leadership team focused on honoring high-performing employees, establishing meaningful rituals, and “taking time to document and retell the stories of the big and little things that moved the company forward over the years,” he says. “These specific examples were a powerful way for us to make the culture come to life and spread it throughout the organization.”
For consumer goods makers, product and packaging design is about more than creating eye-catching looks. It’s an integral part of achieving an elusive trifecta—boosting sales, cutting costs, and reducing carbon emissions—to support long-term growth. McKinsey analysis shows that consumers increasingly care more about buying eco-friendly products and that most products’ lifetime emissions are determined by design decisions. Sustainable designs can also lead to improved customer experience. To go for the “triple win,” leaders can ask their design teams to pursue concepts that can unlock these broader benefits, Partner Dave Fedewa says on the McKinsey on Consumer and Retail podcast. “Sometimes companies see it as a trade-off—an ‘or’: growth or cost or sustainability,” he says. “What we’re finding is that, when you get into it at the right level of depth and with the right tools, it’s an ‘and’: growth and cost and sustainability. That’s what we call triple wins.”
Lead by prioritizing growth.
— Edited by Eric Quiñones, senior editor, New York
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by "McKinsey Leading Off" <publishing@email.mckinsey.com> - 03:38 - 10 Feb 2025 -
How can companies personalize experiences with AI?
On McKinsey Perspectives
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
•
More powerful personalization. Today’s consumers expect tailored online interactions, according to McKinsey Senior Partner Kelsey Robinson and her coauthors. And while companies often deploy tactical, manual, and stand-alone solutions to engage consumers, AI-based tools present retailers with many new opportunities for personalization. For instance, marketers can now meet customers where they are—and how they want to be reached—with AI-enabled targeted promotions and use gen AI to create and send messages with bespoke copy, images, and experiences at high volume and speed.
—Edited by Belinda Yu, editor, Atlanta
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by "Only McKinsey Perspectives" <publishing@email.mckinsey.com> - 12:35 - 10 Feb 2025 -
The week in charts
The Week in Charts
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by "McKinsey Week in Charts" <publishing@email.mckinsey.com> - 02:55 - 8 Feb 2025 -
Unlocking growth: 5 leadership mindsets
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For today’s companies, the journey to growth is a marathon, not a sprint. To get there, leaders need a holistic approach, with courage and resilience at the core, write McKinsey’s Andy West, Greg Kelly, Jill Zucker, Michael Birshan, and coauthors. In our first featured article, the authors explain how leaders of companies that outperform their peers do so by aligning their behaviors with five critical mindsets: investing in growth, acting boldly, maintaining a customer-centric approach, attracting and nurturing talent, and executing with rigor. In our second featured article, Bob Sternfels and Daniel Pacthod dive into the five leadership practices of great athletes that business leaders can adapt to their own work. Other highlights include the following topics:
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the implications of falling fertility rates and rising longevity
•
what tech leaders should prioritize in 2025
•
why it pays for employers to invest in employee health
•
the biggest barrier to scaling AI
Dependency and depopulation? Confronting the consequences of a new demographic reality
Exploring the implications of a new demographic reality brought on by falling fertility and increasing longevity.
Something must give
New Year’s resolutions for tech in 2025
McKinsey’s technology leaders offer their insights on how leaders can make the most of tech this year.
Navigate the trends
Thriving workplaces: How employers can improve productivity and change lives
Investing in holistic employee health can create almost $12 trillion in global economic value.
Take a strategic approach
Superagency in the workplace: Empowering people to unlock AI’s full potential
Almost all companies invest in AI, but just 1 percent believe they are at maturity. Our research finds the biggest barrier to scaling is not employees—who are ready—but leaders, who are not steering fast enough.
Think big
Geopolitics and the geometry of global trade: 2025 update
Trade reconfiguration continues along geopolitical lines, this update with 2024 data shows.
Learn about the 4 measures
How beauty players can scale gen AI in 2025
Beauty brands and retailers have already begun testing gen AI. To scale these experiments quickly, beauty players should focus on high-value use cases and customize gen AI tools to meet their needs.
4 use cases
McKinsey Explainers
Find direct answers to complex questions, backed by McKinsey’s expert insights.
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McKinsey Themes
Browse our essential reading on the topics that matter.
Get up to speed
McKinsey on Lives & Legacies
Monthly obituaries from business and society, highlighting the lasting legacies of executives and leaders from around the globe.
Explore the latest obituaries
The Weekend Read
Curated picks for your downtime.
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McKinsey Classics
Organizations often fall short when it comes to leadership development. Avoiding four common mistakes can help companies develop stronger, more capable leaders. Read our 2014 classic “Why leadership-development programs fail” to learn more.
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Mind the Gap
Biweekly curated reads on Gen Z in the workplace.
Subscribe now— Edited by Eleni Kostopoulos, managing editor, New York
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by "McKinsey Highlights" <publishing@email.mckinsey.com> - 10:38 - 8 Feb 2025 -
EP149: JWT 101: Key to Stateless Authentication
EP149: JWT 101: Key to Stateless Authentication
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JWT 101: Key to Stateless Authentication
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How Digital Signatures Work?
0 to 1.5 Billion Guests: Airbnb’s Architectural Evolution
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JWT 101: Key to Stateless Authentication
JWT or JSON Web Tokens is an open standard for securely transmitting information between two parties. They are widely used for authentication and authorization.
A JWT consists of three main components:
Header
Every JWT carries a header specifying the algorithms for signing the JWT. It’s written in JSON format.Payload
The payload consists of the claims and the user data. There are different types of claims such as registered, public, and private claims.Signature
The signature is what makes the JWT secure. It is created by taking the encoded header, encoded payload, secret key, and the algorithm and signing it.
JWTs can be signed in two different ways:
Symmetric Signatures
It uses a single secret key for both signing the token and verifying it. The same key must be shared between the server that signs the JWT and the system that verifies it.Asymmetric Signatures
In this case, a private key is used to sign the token, and a public key to verify it. The private key is kept secure on the server, while the public key can be distributed to anyone who needs to verify the token.
Over to you: Do you use JWTs for authentication?
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A handy cheat sheet for the most popular cloud services
What’s included?
AWS, Azure, Google Cloud, Oracle Cloud, Alibaba Cloud
Cloud servers
Databases
Message queues and streaming platforms
Load balancing, DNS routing software
Security
Monitoring
Over to you - which company is the best at naming things?
How Digital Signatures Work?
A digital signature is a specific kind of electronic signature to sign and secure electronically transmitted documents.
Digital signatures are similar to physical signatures since they are unique to every person. They identify the identity of the signer.
Here’s an example of the working process of a digital signature with Alice as the sender and John as the recipient:
Alice generates a cryptographic key pair consisting of a private key and a corresponding public key. The private key remains confidential and is known only to the signer, while the public key can be shared openly.
The signer (Alice) uses a hash function to create a unique fixed-length string of numbers and letters, called a hash, from the document. This hash value represents the contents of the document.
Alice uses their private key to encrypt the hash value of the message. This hash value is known as the digital signature.
The digital signature is attached to the original document, creating a digitally signed document. It is transmitted over the network to the recipient.
The recipient (John) extracts both the digital signature and the original hash value from the document.
The recipient uses Alice’s public key to decrypt the digital signature. This produces a hash value that was originally encrypted with the private key.
The recipient calculates a new hash value for the received message using the same hashing algorithm as the signer. They then compare this recalculated hash with the decrypted hash value obtained from the digital signature.
If the hash values are equal, the digital signature is valid, and it is determined that the document has not been tampered with or altered.
Over to you: Have you used digital signatures?
0 to 1.5 Billion Guests: Airbnb’s Architectural Evolution
Airbnb operates in 200+ countries and has helped 4 million hosts welcome over 1.5 billion guests across the world.
What powers Airbnb technically?
Airbnb started as a monolithic application. It was built using Ruby-on-Rails and was internally known as the Monorail.
The monolith was a single-tier unit responsible for both client and server-side functionality.
However, as Airbnb went into hypergrowth, the Monorail started facing issues. This is when they began a migration journey to move from monolithic to Service-Oriented Architecture.
For Airbnb, SOA is a network of loosely coupled services where clients make their requests to a gateway and the gateway routes these requests to multiple services and databases.
Various types of services were built such as:
Data Service: This is the bottom layer and acts as the entry point for all read and write operations on the data entities.
Derived Data Service: These services read from data services and apply basic business logic.
Middle Tier Service: They manage important business logic that doesn’t fit at the data service level or derived data service level.
Presentation Service: They aggregate data from all other services and also apply some frontend-specific business logic.
After the migration, the Monorail was eliminated and all reads/writes were migrated to the new services.
Reference: Airbnb at Scale: From Monolith to MicroservicesSPONSOR US
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by "ByteByteGo" <bytebytego@substack.com> - 10:38 - 8 Feb 2025 -
Hi From Third Stage
Hi From Third Stage
Hi MD Abul,
I noticed you recently signed up for our contact list and I thought I would reach out to introduce myself!
I am the CEO of Third Stage Consulting, a technology-agnostic digital transformation consulting firm. I have been in the digital transformation and strategy space for over 20 years. With a global footprint we support our clients through all aspects of business transformation.
Are you currently involved in some type of technology transformation? If so, I would be happy to be an informal sounding board for your project – current or future. How does your schedule look for an introductory call in the next few days?
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by "Eric Kimberling" <eric.kimberling@thirdstage-consulting.com> - 09:49 - 8 Feb 2025 -
Las mentalidades y comportamientos de liderazgo que importan
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El camino hacia el crecimiento es un maratón, no un sprint. Para llegar ahí, los líderes necesitan un enfoque holístico con coraje y resiliencia, escriben Andy West, Greg Kelly, Jill Zucker, Michael Birshan y otros coautores. En nuestro artículo destacado, explican que los líderes de las empresas con mejores resultados alinean sus comportamientos con cinco mentalidades fundamentales: priorizar el crecimiento, actuar con audacia, mantener un enfoque centrado en el cliente, atraer y nutrir el talento, y ejecutar con rigor. Otros temas destacados son:
•
Cuatro casos de uso de la IA generativa en el sector de la belleza
•
Cómo las empresas pueden integrar los debates sobre el talento en sus planes de separación
•
Cinco trampas que los CEOs de las industrias de ciencias de la vida deben evitar
•
Las implicaciones comerciales de la geopolítica
La selección de nuestros editores
LOS DESTACADOS DE ESTE MES
Cómo los actores del sector de la belleza pueden escalar la IA generativa en 2025
Las marcas y los minoristas de belleza ya han comenzado a probar la IA generativa. Para escalar rápidamente estos experimentos, los actores del sector deben centrarse en casos de uso de alto valor y personalizar las herramientas de IA generativa para satisfacer sus necesidades.
4 casos de uso
Cuando se separan empresas, las personas son la clave para generar valor
Al desarrollar modelos operativos sólidos, los líderes de la separación pueden garantizar que las empresas existentes y nuevas prosperen al asignar el talento a los roles adecuados y articular claramente el “por qué”.
Enfréntese al reto
Michael Froman sobre las implicaciones comerciales de la geopolítica
El presidente del Consejo de Relaciones Exteriores explica que las empresas se enfrentan hoy al entorno internacional más complejo de los últimos 80 años.
Perspectiva para líderes
Las trampas ocultas de la creación de negocios: Una guía para CEOs de las industrias de ciencias de la vida
Los CEOs en las industrias farmacéutica, biotecnológica y de tecnología médica están creando cada vez más negocios centrados en el paciente, pero enfrentan dificultades para hacerlo. Evitar cinco obstáculos comunes puede ayudar a los líderes a construir negocios exitosos.
Evite las trampas
El estado del lujo: Cómo navegar en un período de desaceleración
Los vientos macroeconómicos en contra, los cambios en las preferencias de los clientes y el deterioro de la propuesta de valor están afectando al sector global del lujo. The Business of Fashion y McKinsey destacan cinco imperativos estratégicos para los ejecutivos del lujo.
5 imperativos estratégicos
Trazar el camino hacia los pacientes
El desarrollo cuidadoso de la estrategia de activos a lo largo de la cartera de I+D farmacéutica es cada vez más importante para aprovechar las oportunidades de innovación.
Elija su rutaEsperamos que disfrute de los artículos en español que seleccionamos este mes y lo invitamos a explorar también los siguientes artículos en inglés.
McKinsey Explainers
Find direct answers to complex questions, backed by McKinsey’s expert insights.
Learn more
McKinsey Themes
Browse our essential reading on the topics that matter.
Get up to speed
McKinsey on Lives & Legacies
Monthly obituaries from business and society, highlighting the lasting legacies of executives and leaders from around the globe.
Explore the latest obituaries
The Weekend Read
McKinsey Classics
Sidestepping four common mistakes can help companies develop stronger and more capable leaders, save time and money, and boost morale. Read our 2014 classic “Why leadership-development programs fail” to learn more.
Rewind
Mind the Gap
Biweekly curated reads on Gen Z in the workplace.
Subscribe now— Edited by Joyce Yoo, editor, New York
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Copyright © 2025 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007
by "Destacados de McKinsey" <publishing@email.mckinsey.com> - 07:37 - 8 Feb 2025 -
What we learned at Davos
The Shortlist
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Curated by Alex Panas, global leader of industries, & Axel Karlsson, global leader of functional practices and growth platforms
Welcome to the latest edition of the CEO Shortlist, a biweekly newsletter of our best ideas for the C-suite. This week, we’re reflecting on learnings from this year’s World Economic Forum (WEF) Annual Meeting in Davos, Switzerland. Every year, we collaborate with the WEF to investigate the year’s most critical issues, and our in-house institutes—covering global business trends, human health, and Black economic development—examine many more. We appreciate the opportunity to connect and hope you find our perspectives novel and insightful. You can reach us at Alex_Panas@McKinsey.com and Axel_Karlsson@McKinsey.com. Thank you, as ever.
—Alex and Axel
A little tense. Business leaders today see geopolitical tensions as the biggest risk to economic growth. For those who want to take an active role in the current moment of uncertainty, we explore how to build a geopolitical strategy around ten value drivers. Equally, we don’t believe this period of geopolitical distancing will last forever. As Axel told the Financial Times’ Andrew Hill in Davos, “I am a big believer in globalization. . . . I think it is only a matter of time before we see globalization swing back.”
Actioning AI. It’s been two years since ChatGPT changed the global conversation about AI. Now, as Alex said in a Davos interview with LinkedIn, “Generative AI is at the forefront of every conversation we have with CEOs and management teams.” But that conversation is changing. Last week, folks were buzzing about DeepSeek, the new wild card in the race for AI leadership. And, as Alex reports, chats with leaders are moving beyond questions about creating value with gen AI and toward conversations about how gen AI can “fundamentally transform the business.”
We already know why. If there was any remaining doubt as to why urgent climate action is needed, last month’s California wildfires put it to rest. “The question is,” Axel emphasized in Davos, “how long will the energy transition take?” Leaders must move beyond the why to focus on how to reduce emissions, ensure affordable energy and materials, provide reliable and secure energy systems, and strengthen competitiveness for companies and countries.
We hope you find these ideas inspiring and helpful. See you in a couple of weeks with more McKinsey ideas for the CEO and others in the C-suite.Share these insights
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by "McKinsey CEO Shortlist" <publishing@email.mckinsey.com> - 03:26 - 7 Feb 2025 -
What a new book reveals about women’s career journeys
On McKinsey Perspectives
Brought to you by Alex Panas, global leader of industries, & Axel Karlsson, global leader of functional practices and growth platforms
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Why women fall behind. Women often excel academically, earning 56% of all college degrees in the US and the UK. But once women begin their careers, many do not find the same success in the workplace. Why? McKinsey Senior Partners Kweilin Ellingrud, Lareina Yee, and María del Mar Martínez say the greatest barrier to women’s advancement isn’t the glass ceiling. It’s the “broken rung,” a missing step on the career ladder that prevents women from getting their first promotion to manager, an obstacle that only grows over the course of their careers.
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Achieving career success. The authors’ research finds that over the course of a career, roughly half of one’s lifetime earnings may be linked to the education and skills brought to a first job. The other half is based on “experience capital”: that is, the experience, skills, and wisdom that are learned on the job. Read the Author Talks interview for more on their upcoming book, The Broken Rung: When the Career Ladder Breaks for Women—and How They Can Succeed in Spite of It, and on the ways that women can accumulate experience capital and fulfill their potential.
—Edited by Belinda Yu, editor, Atlanta
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