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The part of AI most companies are missing
The part of AI most companies are missing
Hi MD Abul,
I was reading through the latest news over coffee this morning, something about Amazon deploying 750,000 robots and planning to save $16 billion a year with AI by 2032.
And for some reason, it didn’t just strike me as “big tech news.”
It felt familiar. Like déjà vu.
Because we’ve seen this play before.
And we’ve misread it before, too.Amazon’s warehouses are running like a well-oiled machine, robots sorting, drones delivering, and AI optimizing every move. It’s impressive, no doubt. But here’s the thing:
They didn’t just throw AI at a problem and hope it would fix things.
They redesigned their operations around it.
They rewired the way they work, end to end.And that’s the part most companies miss.
We see it all the time, organizations investing in new tools, automation, cloud platforms, AI… but the core of how they operate? It stays the same. Same structure. Same workflows. Same mindset.
That’s why we’re talking more and more about Digital Enterprise Operations (DEO) at Third Stage.
It’s not about adding tech to a broken process, it’s about rethinking the way your business runs in a digital world.If you’re exploring AI, automation, or a system overhaul, the question isn’t “What tool should we buy?”
It’s “What kind of business are we trying to become?”
That’s the shift.
And if you’re ready to make it, we’ll be diving deep into these exact conversations at our Digital Stratosphere conference this August-strategy, systems, AI, and how to build something that actually works.
Our theme this year is Mission: AI-Possible.
Join us in Denver!Use the code "earlybird" for 20% off your ticket(s)!
Best regards,
Eric Kimberling
by "Eric Kimberling" <eric.kimberling@thirdstage-consulting.com> - 09:49 - 3 Jun 2025 -
Learn from the funnel building Phenom! (free training)
We’re just 2 days away!
Russell and Kathryn are training YOU on how to get certified and tap into the MASSIVE BACKLOG of people asking, “Do you know anyone that can build my funnel??”
And just so you know… Russell invited funnel-building phenom, Kathryn Jones Lish, to co-host it with him.
Let me just say this about Kathryn:
✅ She’s a best-selling author.
✅ She’s a Two Comma Club Award winner.
✅ She’s built a 7-figure business selling funnels.
✅ She’s helped thousands of people just like you do the same.
But this is the REAL STORY:
She doesn’t just know how to build funnels… She knows how to launch and scale a funnel building business!
And that’s the reason this training will be massively valuable!!
If you have any interest in turning funnel building funnel building into a legit & profitable business (Or lucrative side-hustle)...
Get your seat reserved today!
REGISTER FOR THE FREE SALES FUNNEL BUILDER TRAINING HERE >>
Who: Russell Brunson and Kathryn Jones Lish
When: Thursday, June 5 @ 10AM PT / 1 PM ET
Where: LIVE on Zoom (not pre-recorded)
Why: Because the opportunity is real, and we want to show you how to claim it!
See you in two days!
© Etison LLC
By reading this, you agree to all of the following: You understand this to be an expression of opinions and not professional advice. You are solely responsible for the use of any content and hold Etison LLC and all members and affiliates harmless in any event or claim.
If you purchase anything through a link in this email, you should assume that we have an affiliate relationship with the company providing the product or service that you purchase, and that we will be paid in some way. We recommend that you do your own independent research before purchasing anything.
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by "Todd Dickerson (ClickFunnels)" <noreply@clickfunnelsnotifications.com> - 07:06 - 3 Jun 2025 -
How Netflix Runs on Java?
How Netflix Runs on Java?
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Disclaimer: The details in this post have been derived from the articles/videos shared online by the Netflix Engineering Team. All credit for the technical details goes to the Netflix Engineering Team. The links to the original articles and videos are present in the references section at the end of the post. We’ve attempted to analyze the details and provide our input about them. If you find any inaccuracies or omissions, please leave a comment, and we will do our best to fix them.
Netflix is a masterclass in backend engineering at scale. Behind the seamless playback, tailored recommendations, and cross-device consistency lies an intricate architecture powered by Java.
The majority of Netflix’s backend services run on Java. This might surprise engineers who’ve watched the rise of Kotlin, Go, Rust, and reactive frameworks. But Netflix isn’t sticking with Java out of inertia. Java has matured, and so has the ecosystem around it. Modern JVMs offer powerful garbage collectors. Spring Boot has become both extensible and reliable. And with the arrival of virtual threads and structured concurrency, Java is reclaiming its place in high-throughput, low-latency system design, without the overhead of reactive complexity.
In this article, we’ll walk through how Netflix uses Java today. We will also cover the following topics:
The architectural backbone of Netflix: a federated GraphQL platform connecting client apps to dozens of Java backend services.
The concurrency model: how Java virtual threads and modern garbage collectors change performance and reliability.
The evolution: a company-wide migration off technical debt and onto Spring Boot, JDK 21+, and beyond.
Backend Architecture with the GraphQL Foundation
At the heart of Netflix’s backend lies a federated GraphQL architecture. This is the primary abstraction through which all client applications interact with backend data. The model provides both flexibility and insulation: clients can express exactly what they need, and backend teams can evolve their services independently.
Every GraphQL query from a Netflix client, whether from a smart TV, phone, or browser, lands at a centralized API Gateway. This gateway parses the query, decomposes it into subqueries, and routes those to the appropriate backend services.
Each backend team owns a Domain Graph Service (DGS), which implements a slice of the overall GraphQL schema. Every Domain Graph Service (DGS) at Netflix is a Spring Boot application.
The DGS framework itself is built as an extension of Spring Boot. This means that it supports the following features:
Dependency injection, configuration, and lifecycle management are handled by Spring Boot.
GraphQL resolvers are just annotated Spring components.
Observability, security, retry logic, and service mesh integration are implemented using Spring’s mechanisms.
Netflix picked Spring Boot because it’s proven at scale and a long-lived technology at Netflix. It’s also extensible as Netflix layers in their modules for security, metrics, service discovery, and more.
The DGSs register their schema fragments to a shared registry. The gateway then knows which service is responsible for which field. This turns one “monolithic” schema into a fully federated, independently deployable graph.
This separation of schema ownership enables:
Independent deployability of services
Schema-driven collaboration between frontend and backend
Cleaner boundaries between domains (for example, recommendations vs. user profiles)
The key idea is that backend services own their part of the graph, not just their internal data.
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Microservice Fan-out: What a Query Hits
Behind the scenes, even a simple query, like fetching titles and images for five shows, fans out across multiple services:
The API Gateway receives the request.
It contacts 2–3 DGSs to resolve fields like metadata, artwork, and availability.
Each DGS may then fan out again to fetch from data stores or call other services.
This fan-out pattern is essential for flexibility but introduces real complexity. The system needs aggressive timeouts, retry logic, and fallback strategies to prevent one slow service from cascading into user-visible latency.
Protocol Choices
Between the client and the gateway, Netflix sticks with HTTP and GraphQL over standard web protocols. This ensures compatibility across browsers, mobile apps, and smart TVs.
Inside the backend, services communicate over gRPC: a high-performance, binary protocol that supports efficient service-to-service calls. gRPC enables:
Low-latency communication
Strong typing via Protocol Buffers
Easy interface evolution
This separation makes sense: GraphQL is great for flexible, client-driven data fetching, while gRPC excels in internal RPC-style interactions.
JVM Evolution
Until recently, much of Netflix’s Java codebase was stuck on JDK 8. The problem wasn’t inertia but lock-in. A custom in-house application framework, built years earlier, had accumulated layers of unmaintained libraries and outdated APIs. These dependencies had tight couplings and compatibility issues that made upgrading anything beyond JDK 8 risky.
In this setup, service owners couldn’t move forward independently. Even when newer Java versions were technically available, the platform wasn’t ready. Teams had little incentive to upgrade because it required effort with no immediate benefit. The result was stalled progress across the board.
Breaking that cycle required a direct approach. Netflix patched the incompatible libraries themselves, not by rewriting everything, but by forking and minimally updating what was necessary to make it compatible with JDK-17. In practice, this wasn’t as daunting as it sounds. Ultimately, only a small number of critical libraries required intervention.
In parallel, the company began migrating all Java services (around 3000) to Spring Boot. This wasn’t a simple lift-and-shift. They built automated tooling to transform code, configure services, and standardize deployment. While the effort was significant, the result is a unified platform that can evolve in step with the broader Java ecosystem.
Now, the baseline across most teams is Spring Boot on JDK 17 or newer. A few legacy services remain for backward compatibility, but they were the exception.
Once services moved to JDK 17, the benefits became obvious:
The G1 garbage collector, already in use, showed a significant improvement: roughly 20% less CPU time spent on GC without changing application code.
Fewer and shorter stop-the-world pauses led to fewer cascading timeouts in distributed systems.
Higher overall throughput and better CPU utilization became possible, especially for high RPS services.
Generational ZGC
G1 garbage collector served Netflix well for years. It struck a balance between throughput and pause time, and most JVM-based services used it by default. But as traffic scaled and timeouts tightened, the cracks showed.
Under high concurrency, some services saw stop-the-world pauses lasting over a second, long enough to cause IPC timeouts and trigger retry logic across dependent services. These retries inflated traffic, introduced jitter, and obscured the root cause of failures. In clusters running at high CPU loads, G1's occasional latency spikes became an operational burden.
However, the introduction of generational ZGC changed the game.
ZGC had been available in prior Java versions, but it lacked a generational memory model. That limited its effectiveness for workloads where most allocations were short-lived, like Netflix’s streaming services.
In JDK 21, generational ZGC finally arrived. It brought a modern, low-pause garbage collector that also understood object lifetime. The effect was immediate:
Pause times dropped to near-zero, even under heavy load.
Services no longer timed out during GC pauses, which led to a visible reduction in error rates.
With fewer garbage collection stalls, fewer upstream requests failed, reducing cluster-wide pressure.
Clusters ran closer to CPU saturation without falling over. Headroom previously held in reserve for GC safety was now available for real workloads.
From an operator’s perspective, these improvements were significant. A one-line configuration change (switching from G1 to ZGC) translated into smoother behavior, fewer alerts, and more predictable scaling.
Use of Java Virtual Threads
In the traditional concurrency model, each request handler runs on a separate thread.
For high-throughput systems, this leads to high thread counts, inflated memory usage, and scheduling overhead. Netflix faced exactly this situation, particularly in its GraphQL stack, where individual field resolvers might perform blocking I/O.
Parallelizing these resolver calls manually was possible, but painful. Developers had to reason about thread pools, manage “CompletableFutures”, and deal with the complexity of mixing blocking and non-blocking models. Most didn’t bother unless performance made it unavoidable.
With Java 21+, Netflix began rolling out virtual threads. These lightweight threads, scheduled by the JVM instead of the OS, allowed blocking code to scale without monopolizing resources. For services built on the DGS framework and Spring Boot, the integration was automatic. Resolvers could now run in parallel by default.
See the diagram below that shows the concept of Java virtual threads.
Take the common example of a GraphQL query that returns five shows, each requiring artwork data. Previously, the resolver fetching artwork URLs ran serially, adding latency across multiple calls. With virtual threads, those calls now execute in parallel, cutting total response time significantly, without changing the application code.
Netflix wired virtual thread support directly into their frameworks:
Spring Boot–based services automatically benefit from parallel execution in field resolvers.
Developers don’t need to use new APIs or change annotations.
The thread scheduling model remains abstracted away, preserving familiar development workflows.
This opt-in-by-default model works because virtual threads impose almost no overhead. The JVM manages them efficiently, making them suitable even in high-volume paths where traditional thread-per-request models fall apart.
Trade-Offs
Virtual threads aren't magic. Early experiments revealed a specific failure mode: deadlocks caused by thread pinning.
Here's what happened:
Some libraries used synchronized blocks or methods.
When a virtual thread enters a synchronized block, it becomes pinned to a physical platform thread.
If many pinned virtual threads block while holding locks, and the pool of platform threads is exhausted, the system can deadlock. No threads can make progress, because the thread that holds the lock can’t be scheduled.
Netflix encountered this exact scenario in production.
The issue was serious enough that Netflix temporarily backed off aggressive virtual thread adoption. But with JDK 24, this problem was addressed directly: the JVM rewrote the internals of synchronized to avoid unnecessary thread pinning.
With that change in place, the engineering team was able to once again push forward. The performance and simplicity gains are too good to ignore, and now the risk has been meaningfully reduced.
Why Netflix Moved Away from RxJava?
Netflix helped pioneer reactive programming in the Java ecosystem. RX Java, one of the earliest and most influential reactive libraries, was born in-house. For years, reactive abstractions shaped the way services handled high-concurrency workloads.
Reactive programming excels when applied end-to-end: network IO, computation, and data storage all wrapped in non-blocking, event-driven flows. But that model requires total buy-in. In practice, most systems fall somewhere in between: some async libraries, some blocking IO, and a lot of legacy code. The result is a brittle mix of concurrency models that’s hard to reason about, hard to debug, and easy to get wrong.
One frequent pain point was combining a thread-per-request model with a reactive HTTP client like WebClient. Even when it worked, it introduced two concurrency layers (one blocking, one non-blocking), creating complex failure modes and resource contention. It was effective for certain fan-out use cases, but operationally expensive.
The introduction of virtual threads shifted the equation. As mentioned, they allowed thousands of concurrent blocking operations without the overhead of traditional threads. Combined with structured concurrency, developers can express complex async workflows using plain code, without the callback hell of reactive programming.
Having said that, reactive programming still has its place. In services with long IO chains, backpressure concerns, or streaming workloads, reactive APIs remain useful. However, for the bulk of Netflix’s backend, which involves RPC calls, in-memory joins, and tight response times, virtual threads and structured concurrency offer the same benefits with lower complexity.
The Spring Boot Netflix Stack
Netflix standardizes its backend services on Spring Boot, not as an off-the-shelf framework, but as a base for a deeply integrated, extensible platform. Every service runs on what the team calls “Spring Boot Netflix”: a curated stack of modules that layer company-specific infrastructure into the familiar Spring ecosystem.
This design keeps the programming model clean. Developers use standard Spring annotations and idioms. Under the hood, Netflix wires in custom logic for everything from authentication to service discovery.
The Spring Boot Netflix stack includes:
Security integration with Netflix’s authentication and authorization systems, exposed through standard Spring Security annotations like @Secured and @PreAuthorize.
Observability support using Spring’s Micrometer APIs, connected to internal tracing, metrics, and logging pipelines built to handle Netflix-scale telemetry.
Service mesh integration for all traffic via a proxy-based system (built on ProxyD), handling TLS, service discovery, and retry policies transparently.
gRPC framework based on annotation-driven programming models, letting engineers write gRPC services with the same approach as REST controllers.
Dynamic configuration with “fast properties”: runtime-changeable settings that avoid service restarts and enable live tuning during incidents.
Retryable clients wrapped around gRPC and WebClient to enforce timeouts, retries, and fallback strategies out of the box.
Netflix stays closely aligned with Spring Boot upstream. Minor versions roll out to the fleet within days. For major releases, the team builds tooling and compatibility layers to smooth the upgrade path.
The move to Spring Boot 3 required migrating from javax.* to jakarta.* namespaces. It was a breaking change that affected many libraries. Rather than wait for external updates, Netflix built a Gradle plugin that performs bytecode transforms at artifact resolution time. This plugin rewrites compiled classes to use the new Jakarta APIs, allowing Spring Boot 2-era libraries to work on Spring Boot 3 without source changes.
Conclusion
Netflix’s Java architecture in 2025 isn’t a relic of the past, but a deliberate, modern engineering system. What makes it interesting isn’t the choice of language, but the way that choice is continuously reevaluated, optimized, and aligned with real-world constraints.
The system isn’t static. Netflix pushed past the limits of Java 8 by aggressively upgrading its stack, not by rewriting it. It embraced Spring Boot as a foundation but extended it to meet the unique demands of a global streaming platform. It adopted GraphQL for flexibility, virtual threads for concurrency, and ZGC for performance.
Some key takeaways are as follows:
Java is still competitive when treated as an ecosystem. Netflix extracts significant performance gains from modern JVM features. It doesn’t settle for default settings or old frameworks. Evolution is deliberate.
Owning the platform enables speed. Building in-house tooling for patching, transforming, and deploying applications turns upgrades from risk into routine. Platform ownership is a leverage for them.
Virtual threads reduce complexity. They preserve a familiar coding style while scaling better under load. The payoff is cleaner code, fewer bugs, and simpler mental models.
Tuning infrastructure and not just code improves reliability. Upgrading the garbage collector and optimizing thread behavior led to fewer timeouts, lower error rates, and more consistent throughput across the board.
References:
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by "ByteByteGo" <bytebytego@substack.com> - 11:38 - 3 Jun 2025 -
Subverting tradition: revolutionary design of carbide valve stem and sleeve
Hello Info,
Hope this email find your well.
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Zhuzhou Chuangrui Cemented Carbide Co.,ltd
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Email:lydia@zzcrcarbide.com
Mobile:+86 18173348105
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by "Genevieve" <Genevieve@carbidecreator.com> - 11:38 - 3 Jun 2025 -
She’s a funnel building Phenom… This will be incredible!
We’re just 2 days away from one of the most exciting live trainings I’ve ever hosted…
And this time, I’m not doing it alone!
I’ve invited my good friend and absolute funnel-building phenom, Kathryn Jones Lish, to co-host it with me.
If you don’t know Kathryn yet… let me just say this:
✅ She’s a best-selling author.
✅ She’s a Two Comma Club Award winner.
✅ She’s built a 7-figure business selling funnels.
✅ She’s helped thousands of people just like you do the same.
But the real reason I asked her to join me is simple:
She doesn’t just know how to build funnels… She knows how to launch and scale a funnel building business!
And that’s the reason this training will blow your mind and be SOOOO valuable!!
If you have any interest in turning funnel building funnel building into a legit & profitable business (Or lucrative side-hustle)...
Then this training is your moment.
REGISTER FOR THE FREE SALES FUNNEL BUILDER TRAINING HERE >>
Who: Russell Brunson (Me!) and Kathryn Jones Lish (Funnel Builder Phenom!)
When: Thursday, June 5 @ 10AM MT / 1PM ET
Where: LIVE on Zoom (not pre-recorded)
Why: Because the opportunity is real, and we want to show you how to claim it!
See you in two days!
Russell Brunson
P.S. – Don’t forget, you’re just ONE funnel away…
© Prime Mover LLC
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If you purchase anything through a link in this email, you should assume that we have an affiliate relationship with the company providing the product or service that you purchase, and that we will be paid in some way. We recommend that you do your own independent research before purchasing anything.
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by "Russell Brunson" <newsletter@marketingsecrets.com> - 11:34 - 3 Jun 2025 -
Save the date. Agentic AI awaits
New Relic
June 2025
New Relic Now: 25 June at 10am BST Join us at New Relic Now to learn about our latest Agentic AI innovations. In this virtual event, you’ll:- Turn insights into actions—explore Intelligent Observability transforming data into proactive, actionable intelligence.
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Level up your skills—build agentic proficiency and predictive capability with demos from our product team.
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Just as the internet and smartphones have become essential for modern business strategies, GenAI will soon become an integral part of every company's growth plan, and organisations will need to adapt and innovate to stay competitive in this new era of AI-driven technology, or risk being left behind.
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by "New Relic" <emeamarketing@newrelic.com> - 05:02 - 3 Jun 2025 -
Excelling as a leader: Growth
Email 1 of 7
Are you a growth leader?
Welcome to “The McKinsey Publishing Guide to excelling as a leader.” In this first email, we’ll dive into the beliefs and behaviors shared by growth leaders. Driving sustainable growth requires the right mindset, strategy, and capabilities. Here are some steps that could help you foster success.
Growth leaders generate 80 percent more shareholder value than their peers over a ten-year period—but about a quarter of companies don’t grow at all. And between 2010 and 2019, only one in eight achieved more than 10 percent revenue growth annually.
“Growth leaders set, communicate, and commit to growth consistently and without significant resourcing,” write McKinsey’s Michael Birshan, Biljana Cvetanovski, Rebecca Doherty, Tjark Freundt, Greg Kelly, Erik Roth, Ishaan Seth, and Jill Zucker.
Check out these insights to learn how to make and follow through on a purposeful choice to grow.This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy.
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by "McKinsey Publishing Guides" <publishing@email.mckinsey.com> - 03:10 - 3 Jun 2025 -
Fast fashion: An industry in flux
On McKinsey Perspectives
by "Only McKinsey Perspectives" <publishing@email.mckinsey.com> - 01:48 - 3 Jun 2025 -
Exploring Collaboration Opportunities in Automotive Shock Absorbers
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We are professional in R&D,production and sales of automotive shock absorbers.Our team has explored your website and noticed significant synergies between our product lines.With in-depth knowledge of your market,we are eager to share valuable insights and explore potential collaborations with you.
Would you like to accept our catalogue?It could open up new avenues for common development.
Best Regards!
Echo Gao
by "Maricordoba Ugo" <maricordobaugo26@gmail.com> - 10:35 - 2 Jun 2025 -
Solution of Mixing Plant and Sand&Gravel Crushing Equipment
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I hope this email finds you well.
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ADD:No.9, Shengyuan Road, Yueyang High-tech Industrial Park, Hunan, China
by "sales01" <sales01@rtzkhn.com> - 05:24 - 2 Jun 2025 -
[FREE TRAINING] Funnel Building Training
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REGISTER FOR THE FREE SALES FUNNEL BUILDER TRAINING HERE >>
See you Thursday!
© Etison LLC
By reading this, you agree to all of the following: You understand this to be an expression of opinions and not professional advice. You are solely responsible for the use of any content and hold Etison LLC and all members and affiliates harmless in any event or claim.
If you purchase anything through a link in this email, you should assume that we have an affiliate relationship with the company providing the product or service that you purchase, and that we will be paid in some way. We recommend that you do your own independent research before purchasing anything.
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by "Todd Dickerson (ClickFunnels)" <noreply@clickfunnelsnotifications.com> - 04:07 - 2 Jun 2025 -
Elevate Your Products with Xinfu’s 2’-FL – Safety, Expertise, Supply Strength
Dear Info ,
I’m Qihan Wang from Hangzhou Xinfu Science & Technology Co., Ltd. It’s a pleasure to connect with you.
At Xinfu, we specialize in developing high-value ingredients for health and nutrition. I’m excited to introduce our 2’-Fucosyllactose (2’-FL) — a safe, consistent, and high-purity HMO produced via fermentation with Corynebacterium glutamicum.
Our R&D team, comprising former senior executives from Amyris and Evonik, brings world-class expertise to every step of the production process. Moreover, Xinfu’s record in Vitamin B5 manufacturing — commanding about 40% of global market share — demonstrates our ability to scale without compromising quality.
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Best,
Qihan Wang
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Hangzhou Xinfu Science & Technology Co., Ltd.
wangqihan@yifanyy.com
by "hmo.trade" <hmo.trade@xinfu-global.com> - 03:44 - 2 Jun 2025 -
HAPP BAR 25000 Puffs 2 flavors in 1 vape - EU warehouse 22 flavors with 3-7 work days fast delivery
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by "Puji Sennin" <pujisennin@gmail.com> - 02:47 - 2 Jun 2025 -
Steel toe Chelsea Working Boots with Goodyear-welt technology
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by "Yarris Flugum" <flugumyarris@gmail.com> - 01:07 - 2 Jun 2025 -
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by "Russell Brunson" <newsletter@marketingsecrets.com> - 12:38 - 2 Jun 2025 -
Eco-Friendly Cardboard Hangers for Sustainable Fashion Brands
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by "Pond Laprete" <lapretepond@gmail.com> - 12:17 - 2 Jun 2025 -
Introducing our new teeth whitening strips – Samples available!
Hi dear Info,
Hope you are doing well.
We are the professional manufacturer for the oral products-teeth whitening kits, whitening strips, whitening gels.
Recently our company launched two new strips which want to share with you below:
-6% HP Alcohol-free dry strips
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The samples can be sent if you want to try them. Waiting for your earlier response.
by "Eilish Sema" <magielsehendrie569@gmail.com> - 12:07 - 2 Jun 2025 -
The CEO’s unique role in resilience: A leader’s guide
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
For leaders and their organizations, resilience is not just about rebounding from adversity. It also means viewing today’s constant changes and disruptions as opportunities for growth. In an environment of profound technological, geopolitical, and workplace shifts, leaders—and CEOs in particular—can focus on fostering resilience and adaptability to help their businesses thrive. This involves guiding their teams to develop new capabilities, consider new mindsets and behaviors, and rally around new directions for the organization’s future. This week, we look at how CEOs can be “chief resilience officers” and play a singular role in infusing resilience into their companies’ DNA.
From strategy to finance to operations, CEOs have a distinctive view of every facet of an organization—and as such, are best positioned to build the resilience companies need to thrive amid disruption. According to McKinsey’s Ida Kristensen, Linda Liu, and their coauthor, CEOs should understand the four core types of resilience: financial, operational, organizational, and external. The authors prescribe five actions chief executives can take to help their companies withstand shocks and grow stronger in volatile times: for example, embedding resilience in the company’s vision, forcing decisions with senior leaders in resilience-testing moments, and cultivating a gritty and adaptable team. “They must set the tone for everyone in the organization,” they say. “The CEOs who do this well routinely focus on several key principles: They purposely consider short- and long-term perspectives and adopt a through-cycle mindset, they inextricably link resilience and growth, and they proactively inject stressors into the system.”
That’s the percentage of leaders who feel underprepared for future disruptions, according to a survey of more than 250 private sector leaders. The survey, conducted by McKinsey in collaboration with the World Economic Forum, reveals that many leaders focus on short-term fixes and often lag in developing long-term capabilities, such as foresight and proactive risk management. “Resilience must become a central element of long-term strategic planning rather than being treated as a stand-alone issue—yet only 13 percent of companies currently incorporate resilience KPIs comprehensively into their strategies,” McKinsey Senior Partners Cristina Catania, Daniel Pacthod, and Thomas Poppensieker and their coauthors note in the full report.
That’s McKinsey’s Ben Fletcher, Chris Hartley, and Dana Maor on the importance of encouraging “contributory dissent,” which can help organizations build healthy, resilient cultures. The authors cite several steps that leaders can take to gather diverse perspectives to improve problem-solving and their overall resilience. These include modeling more open behaviors, embedding robust debate into decision-making processes, and helping employees strengthen their communication skills to effectively contribute dissenting opinions.
Developing organizational resilience involves risk-taking—which is not for the faint of heart. In an episode of The McKinsey Podcast, Senior Partner Ida Kristensen emphasizes that leaders should not be preoccupied with how things look as they aim to build a resilient company. “Some CEOs talk about if they have 70 percent of the information, it’s time to move. And that means, by definition, it’s not always going to be pretty,” she says. “Some of your decisions are not going to be the right ones. But a culture of learning from imperfection and moving ahead is where we see the ability to learn and grow.” Kristensen adds that it’s important for CEOs to model resilient behaviors for their teams, both by showing composure during difficult times and by being honest about how hard certain situations can be.
Don’t confuse vulnerability with weakness. McKinsey research indicates that showing vulnerability can help leaders build organizational resilience by enhancing trust and psychological safety within their teams. CEOs have found that being vulnerable can help them strengthen relationships with their leadership teams, employees, and even investors. Leaders may not naturally feel comfortable embracing or showing vulnerability—but it’s a critical step in their growth, according to McKinsey’s Dana Maor, Hans-Werner Kaas, Kurt Strovink, and Ramesh Srinivasan, the authors of The Journey of Leadership: How CEOs Learn to Lead from the Inside Out. The key for leaders is to shift their mindsets from proving to improving themselves. “You must be willing to take risks, to invest in relationships that may or may not work out, and to act with no guarantees,” the authors say. “Vulnerability is the willingness to be touched by others’ perspectives while also allowing yourself to be seen fully by others—even if you fear being judged.”
Lead by building resilience.
— Edited by Eric Quiñones, senior editor, New York
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by "McKinsey Leading Off" <publishing@email.mckinsey.com> - 04:20 - 2 Jun 2025
