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Collective expectations. When it comes to nonpromotable tasks (NPTs), women are asked to do them more, say “yes” to them more, and even volunteer for them more. But NPTs are exactly that: non-revenue-generating work—such as putting together slides for someone else’s presentation—that doesn’t advance careers and is often done behind the scenes. All these requests and yeses, says The No Club: Putting a Stop to Women’s Dead-End Work author Lise Vesterlund, mean that women lack the time to do the promotable work. That’s why women struggle to compete for promotions and thus continue to fall behind men when it comes to career advancement.

•

It’s up to organizations. The solution isn’t to “fix the women,” Vesterlund says in McKinsey’s latest edition of Author Talks. Instead, organizations can bring awareness to the problem and understand and document who is doing what. Awareness is crucial because it highlights why gender equality in the workplace has been so stagnant for decades, she explains, “despite the fact that we’ve been working so, so hard to try to really equalize the playing field and give people equal opportunity.” Organizations can also eliminate practices that increase the amount of NPTs that may automatically go to women, such as taking notes.

— Edited by Justine Jablonska

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by "McKinsey On Point" <publishing@email.mckinsey.com> - 09:06 - 9 Jun 2022

Cut real-estate emissions

Re:think

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ON NET-ZERO REAL ESTATE

Cut your real-estate emissions

Alastair Green

When people think about cutting emissions, the focus is usually on reaching net zero by 2050 in order to keep global warming within 1.5° Celsius. What often gets overlooked by companies setting Paris-aligned greenhouse-gas (GHG) reduction targets is that significant reductions need to be achieved by 2030, not just net zero by 2050. Real estate is a key but often overlooked area for companies seeking to hit those 2030 goals.

Real estate accounts for about 40% of all GHG emissions. In our experience, real estate (both new construction and existing buildings) can account for more than half of the emissions that most companies can practically reduce between now and 2030. In other words, you can’t get where we want to be without real estate.

So, targeting real-estate emissions is crucial. But delivering all the emissions cuts that are possible isn’t easy. Most companies with significant real-estate holdings face three key complexities, I’d say.

First, few real-estate owners have a high-fidelity baseline for what their emissions actually are. For a company to say, “Dear shareholder, we’ve reduced our emissions by 40%,” that company has to have some kind of baseline, as well as some kind of mechanism for tracking interventions, which could be as simple as swapping out five light bulbs, replacing a heating system, or shutting off the floor of a building at night. If you’re not actually adding these things up, you can’t prove to anyone—whether that means your shareholders, your lenders, or your tenants—that you’re doing what you said you’d do. Even if companies have developed some form of baseline based off of submeter readings, they often lack real insight into the right abatement activities that can help them reduce emissions and improve on that baseline. In other words, owners may fixate on the starting point but not on the solution.

40%

of all greenhouse-gas emissions are related to real estate

The second complexity involves having a holistic view of your real-estate footprint. It would be great if companies could, say, cut their emissions in half by taking one bold action, like putting solar panels on the roofs of every building they own. But we’ve seen time and again that this doesn’t happen. The far more likely route is that a real-estate owner may have hundreds of buildings with enormously different profiles, different amounts of sunlight, different underlying generation mix from the local utility, and different tenant attitudes. To make a real dent in emissions, owners have to look at all the possible levers they have, building by building, and then build a cost curve that shows what’s going to help reduce emissions, what’s going to have an acceptable payback, where is it worth spending the capital, where is it prohibitive. Without that holistic view of your entire real-estate system, you might spend the whole budget and still fall short of your target. One of the most promising benefits about starting on the decarbonization mission early is that tenants are already demonstrating a higher likelihood of lease renewal (and at higher prices) with landlords who are able to offer a lower-carbon facility (or else demonstrate a pathway to a lower-carbon facility). This “green premium” (which has been quantified by academics) can create a positive ROI for many carbon abatement efforts.

The third great complexity of reducing real-estate emissions is that owners have to work through a big ecosystem. Very few companies that own these buildings are equipped to do the actual decarbonization work themselves. Who installs the HVAC system? Who are the vendors, the service providers, who are the tenants in each of the buildings? What can you offer the tenant that is going to help them meet their decarbonization objectives (in a way that improves their tenant experience)? All these actors play a crucial part. So, we see owners pressuring the service provider that’s got, say, the five-year contract managing 50 of their buildings in the US to start swapping out high-emission boilers for heat exchangers with much lower emissions.

Owners aren’t just applying the pressure—they’re feeling it, too, on at least three fronts. Investors, of course, are making this an imperative. Regulatory institutions are weighing in. And tenants are increasingly demanding. We see them coming to landlords and saying, “Hey, I’m in this building that you said was very green, but in fact it’s a large part of my emissions footprint. So, what can you do? And by the way, I might even be willing to pay a premium if you can help me meet my own decarbonization commitments in other ways.”

That’s the thing about this moment. It can seem daunting to a lot of organizations. But most real-estate owners are already sitting on top of the data they need to figure this out. It’s within their walls, even though it may be four layers down in the organization. Companies that make a rigorous effort to get a handle on that data are likely to find lots and lots of ways to start making a serious dent in their emissions. But they need to get started. Time is precious, and 2030 is right around the corner.

ABOUT THE AUTHOR

Alastair Green is a partner in McKinsey’s Washington, DC, office.

MORE FROM THIS AUTHOR

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Innovators are designing air taxis and delivery drones. But these won’t take flight unless stakeholders accelerate investment in air-mobility infrastructure.

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IN TWO WEEKS

Anu Madgavkar on human capital

Employers can do a better job of retaining top talent if they recognize how critical it is for employees to be constantly developing their own human capital.

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by "McKinsey Quarterly" <publishing@email.mckinsey.com> - 06:29 - 9 Jun 2022

Let’s talk about reclaiming mental health in Asian communities

the Daily read

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AN ARTICLE A DAY, PICKED BY OUR EDITORS

Talking about mental health isn’t easy, especially for those in Asian communities where opening up about such issues can sometimes be stigmatized. That is why it is so important to destigmatize mental-health conversations and promote self-advocacy among the Asian diaspora, according to clinical psychologist Dr. Jenny Wang. Tune into a new Author Talks interview and hear what Dr. Wang has to say about the rise in anti-Asian sentiment during the pandemic, cultural experiences with racism, intergenerational trauma, and why she created the Instagram account @asiansformentalhealth. You don’t want to miss it.

— Katherine Tam, digital editor, New York

Author Talks: We need to talk about Asian American mental health

Dr. Jenny Wang created the Instagram account @asiansformentalhealth in fall 2019. As the pandemic—and anti-Asian hate—spread, it became a haven for Asian Americans seeking mental-health resources.

Remove the stigma

Quote of the Day

“Fundamentally, you need to play defense on risk and offense on growth. That means figuring out how your climate strategy ties into the value creation story.”

—McKinsey senior partner Laura Corb on the SEC’s proposed climate risk disclosure rule in a recent episode of the Inside the Strategy Room podcast

Chart of the Day

Understand new innovations

Also New

Governors-elect have transition teams. What about their cabinets?

Unlike newly elected governors, top appointees and officials typically start their jobs without the backing of a transition team. Still, with a strategic approach, they can hit the ground running.

Consider 5 steps

Finding hidden value with order-to-cash optimization

Too often, organizations lose significant value in order-to-cash and inside-sales operations. A deeper understanding of process break points can unlock significant hidden opportunity.

Examine deeply

How digital helps a life sciences leader move at light speed

Pfizer’s Chief Digital and Technology Officer explains how digital is transforming her organization’s ability to bring new medicines to patients at speed and at scale.

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by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 05:35 - 9 Jun 2022

Sangoma Webinar: Sangoma’s new P- Series phone range for all your PBX & UC solutions

The Power You Need, The Price You Want!

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by "Sangoma Technologies" <webannounce@sangoma.com> - 04:46 - 9 Jun 2022

Patient demand for telehealth is clear. Why aren’t physicians so sure?

McKinsey&Company

Telehealth’s next chapter

In the news

•

Ten thousand apps. Finding a therapist is tough these days, so it’s not surprising that many are turning to mental-health apps to help with everything from anxiety to insomnia. However, choosing the right one may be tricky. More than 10,000 mental-health apps were on the market as of 2017, according to one estimate. Experts recommend looking for programs that teach skills (for example, belly breathing). They also say to find out how the app stores and shares data, and to make sure you’re comfortable with what type of info is collected. [NYT]

•

Tapping into telehealth. Done well, telehealth can boost patient health, trim costs, and make it easier for those who live in areas with too few health providers to gain access to care. Through digital platforms, telemedicine can enable patients to connect to the best doctors even if they practice hundreds of miles away. Virtual healthcare can also prevent avoidable ER trips. One 2019 study found that ER services for nonemergency, treatable conditions can cost 12 times more than visiting a doctor’s office, a difference of $32 billion each year. [HBR]

As the pandemic evolves, consumers still prefer the convenience of digital engagement and virtual-care options, according to McKinsey’s recent survey.

Uncover telehealth trends

•

Divided on digital health. Doctors and patients aren’t on the same page about telehealth. Although 60% of patients agree that virtual health is more convenient for them than in-person care, only 36% of doctors say the same, reveals 2020 and 2021 McKinsey surveys of physicians and consumers. Physician belief in telehealth’s effectiveness has declined since July 2020. More doctors are also recommending in-person care when possible to their patients, even when they offer telehealth. This may suggest physicians are rethinking virtual care.

•

Three trends. Meanwhile, patients remain keen on virtual care. Those under the age of 55, in higher income brackets, and with individual or employer-sponsored group insurance are more likely to use telehealth, reveals a March 2021 McKinsey Consumer Survey. Demand for virtual care in mental and behavioral health is also higher than in other specialties, with 62% of mental-health patients completing their most recent visit virtually versus 20% of patients doing so for a primary-care provider. See three trends in telehealth that could color the next few years.

— Edited by Belinda Yu

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by "McKinsey On Point" <publishing@email.mckinsey.com> - 11:43 - 8 Jun 2022

Building resilience amid crises and disruption

the Daily read

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AN ARTICLE A DAY, PICKED BY OUR EDITORS

As a global community, we are living through continuous, overlapping crises with long-lasting effects. Yesterday’s risk management practices may not be fit for the future. But public- and private-sector organizations that build resilience could find they’re better able to withstand shocks and bounce back better, while driving sustainable, inclusive growth. A can’t-miss white paper from the World Economic Forum and McKinsey explores how to approach the issue across regions, economies, and industries. Available as a free download, it covers lessons from past crises, analyzes the impact of resilience on growth, and defines a common resilience framework, plus seven themes—including climate and healthcare—shaping the future. Give it a read and get resilient.

— Joyce Yoo, digital editor, New York

Resilience for sustainable, inclusive growth

Resilience should be seen as the ability to deal with adversity, withstand shocks, and continuously adapt and accelerate as disruptions and crises arise over time.

Withstand shocks

Quote of the Day

“If you look at the core reasons why investors are excited, the facts are undeniable. The median age in Pakistan is 23 years. . . . There are almost 19 million either middle class or upper-class Pakistanis, which is bigger than all of Germany.”

—McKinsey partner Abdur-Rahim Syed on Pakistan’s emerging start-up ecosystem in a recent episode of the McKinsey on Start-ups podcast

Chart of the Day

Chart of petrochemicals industry shift toward circularity

The war is aggravating financial-system risks such as inflation-led recession, a deflating bubble in China’s property sector, and gridlock in the payments system.

Also New

Author Talks: A new way to think about management

Predicting the future is impossible, but traditional business models try anyway. Roger Martin says management leaders need to revisit the whiteboard.

Get back to basics

US polyethylene price evolution and what to expect

Prices for petrochemicals in the United States have increased significantly, even beyond what fundamentals would dictate.

Get the scoop

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Understanding the SEC’s proposed climate risk disclosure rule

A new rule proposed by the SEC would require companies to significantly increase their reporting on climate risk. We look at the implications for senior executives.

Read deliberately

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by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 05:14 - 8 Jun 2022

[Webinar] Build a foundation for integration success

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Hi Md,

How are you preparing your IT ecosystem for the future? Nucleus Research states that "integration platforms have become essential for their ability to manage data flows, ensure data quality, and support ever-changing software ecosystems by uniting disparate systems and applications."

Join us June 22 at 12pm PT / 3pm ET and learn " How to build a technology foundation for integration success".

Nucleus Research and Tray.io will cover:

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by "Kayla Gibbons, Tray.io" <kayla@tray.io> - 10:16 - 8 Jun 2022

You're' invited 🎙 Webinar: Remote for refugees

Hi MD,

You are invited to join Remote's VP of Special Operations, Filipa Matos, Senior Product Marketing Manager, Peter Maher, and Lorraine Charles, the Co-Founder and Executive Director of Na'amal, for our next webinar.

🎙 Webinar: Remote for refugees

Date: 20th June

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Announcement about a new platform to help employers find vetted refugee talent

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by "Remote" <hello@remote-comms.com> - 09:02 - 8 Jun 2022

Don't Miss Out On This Live Webinar On How are AI dashcams transforming transport management systems?

Live Webinar - Register for Free!!!

We are happy to announce that we’ve collaborated with Howen Technologies for another exciting webinar. On 16th June 2022, expert speakers from Uffizio and Howen Technologies will talk about the role of AI dashcams in the transport industry.

Tune in with us and learn more about how AI dashcams are changing the face of transport management systems. See how artificial intelligence is affecting fleet management operations.

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2. Why does the transport industry need AI dashcams?

Let's speculate why AI dashcams have become so important in the transport sector. The risk of accidents, the rising cost of vehicle repairs, and pricey insurance premiums are just a few reasons to get you started.

3. How are modern dashcams changing the face of fleet management systems?

ADAS and DMS have raised the standards of safety. They have changed the way drivers get assessed and monitored. We’ll discuss how AI dashcams can enhance video telematics—in a way that benefits all involved parties.

4. Howen reveals their new Smart AI dashcams!

What makes Howen’s new dashcams so smart? Let’s find out together!

5. How do these AI dashcams function on Uffizio’s fleet management software?

You need a fleet management system to store, analyze, and understand the data generated by Howen’s AI dashcams. See how Uffizio’s platform can help you make the most out of your dashcams.

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by "Uffizio Technologies Pvt Ltd" <official@uffizio.in> - 07:29 - 8 Jun 2022

How is the war in Ukraine changing the world? See the effects in 12 charts.

McKinsey&Company

Ripple effects

In the news

•

The great shake-up. The war in Ukraine has set off a chain of reactions that is reshaping the whole world. Some countries, particularly in Africa and the Middle East, are experiencing huge price spikes in wheat, cooking oil, and other agricultural products. The exodus of 5.8 million Ukrainian refugees, shortages of natural gas and oil, and political and military realignments mean that life is changing in profound ways across the globe. [NPR]

•

Economic repercussions. The Ukraine invasion’s domino effect on the world economy is gradually becoming clear. The IMF and World Bank have both cut global growth forecasts, citing the war’s impact on the price of commodities traditionally supplied by the region. Central banks are attempting to tame inflation with aggressive interest rate hikes, which is rattling financial markets. The situation is also intensifying supply and demand imbalances and harming consumer sentiment. [CNBC]

•

Facts and figures. In 12 charts, McKinsey examined the consequences of the war in Ukraine for society and the global economy. A few headline numbers: a key index of food prices could rise by as much as 45% this year, McKinsey analysis suggests. In 2021, Europe imported 36% of its gas from Russia; the continent could reduce this to 10% this year. About 80% of Western tech firms have exited Russia or are scaling back, while more than 60% from other parts of the world are staying put.

•

Twelve disruptions. The war’s effect on supply chains and on the future of globalization is multifaceted, dynamic, and will depend on its duration and intensity. McKinsey has put data behind our view on how several scenarios are likely to play out. “Just in time” supply chain management is giving way to “just in case” approaches. Global tech standards are now more likely to separate than to unify. Defense spending is on the rise. Explore 12 disruptions that are changing our world.

— Edited by Katy McLaughlin

See the big picture

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by "McKinsey On Point" <publishing@email.mckinsey.com> - 11:22 - 7 Jun 2022

Learn More About Software Quality Market Trends with IDC Research Director [Webinar Invite]

Hey Abul!

On June 14th, we are hosting a webinar to explore key findings from the recent IDC MarketScape research on Automated Software Quality and Continuous Testing.

Join us for this informative panel discussion with guest speaker Melinda-Carol Ballou, IDC Research Director, and SmartBear Senior VP of Product Marketing Joanna Schloss.

Highlights include:

How shifting left approaches are pulling quality earlier into development to enhance relevance, and responsiveness, time, and expense
How AI and smart analytics are shaping the future of testing through automation, self-healing, and autonomous testing.
How to establish effective continuous testing and quality strategies that encompass new and evolving development approaches like cloud-native and no-code/low-code.

Global Economics Intelligence executive summary, May 2022

Hope to see you there,

Cynthia Gumbert

P.S. We will be sharing a recording of the live session after the event in case you cannot attend!

by "Cynthia Gumbert" <cynthia@smartbearmail.com> - 08:40 - 7 Jun 2022

The latest on inflation, world trade, and unemployment in China

the Daily read

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AN ARTICLE A DAY, PICKED BY OUR EDITORS

Inflation is everywhere and its effects are being felt all over the globe. The latest update on McKinsey’s Global Economics Intelligence explores rising food and energy prices, slow GDP growth and growing unemployment in China, a slowdown in world trade, an increase in interest rates, the World Economic Forum (WEF)’s meeting in Davos, and more. For a deeper dive on the key issues affecting the world economy, be sure to check out the full Global Summary Report and the Critical Trends and Risks.

— Joyce Yoo, digital editor, New York

Central banks move against inflation; US industry expands while China’s economy contracts amid COVID-19 measures; supply challenges persist.

Get updated

Quote of the Day

“The healthcare industry is being rewired across the entire patient journey. . . . The intersection of healthcare with the digital sector is accelerating this transformation. The pandemic acted as a catalyst, making people more fluent in using digital technologies and more receptive to virtual engagement.”

—Lidia Fonseca, Chief Digital and Technology Officer at Pfizer in “How digital helps a life sciences leader move at light speed”

Chart of the Day

Chart of organizational investment in remote-first service options

Embrace new possibilities

Also New

Image of massive freeways with Houston skyline in background

Houston as the epicenter of a global clean-hydrogen hub

Clean hydrogen is emerging as a viable way to reach net zero. In the United States, clean-hydrogen efforts in Houston, Texas, could serve as a template for other regions.

Read the report

Author Talks: Think digital

People have long worried about being replaced by machines, but Tsedal Neeley says the true threat to job security in the digital age is other humans—namely those who know how to use digital tools.

Improve your skill set

Fear factor: Overcoming human barriers to innovation

Worries about failure, criticism, and career impact hold back many people from embracing innovation. Here’s how to create a culture that accounts for the human side of innovation.

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by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 04:14 - 7 Jun 2022

MD, Today's 🎙 webinar starts in less than 1 hour.

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by "Remote" <hello@remote-comms.com> - 09:32 - 7 Jun 2022

Level up your Kubernetes observability with New Relic

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by "New Relic" <emeamarketing@newrelic.com> - 03:37 - 7 Jun 2022

Dragging yourself out of bed? Eight questions can help address employee burnout.

McKinsey&Company

Battling burnout

In the news

•

A sacred pause. For many entrepreneurs, extreme exhaustion is a familiar feeling, but burnout is also becoming commonplace for everyday workers. Still, making some changes can help. Besides finding a therapist, it’s important to learn what activities recharge you and set aside time for them. One CEO suggests creating “a very sacred pause” in the week, such as Friday night dinners, to help people relax and be present. When discussing burnout with your boss, explaining why your request is good for the company can convey confidence. [Bloomberg]

•

It’s complicated. In March 2022, around 4.5 million US workers quit their jobs. A growing number of unfilled roles can complicate life for the colleagues who stay. Half of US workers who responded to a 2021 survey said they had to accept more responsibilities after a former coworker left. With burned out workers resigning in search of better work–life balance, executives say companies need to figure out what to do now. Increasing flexibility in work schedules, supporting caregivers, and listening with empathy can help increase engagement and retention. [FT]

Prevent workplace burnout

•

A disconnect. Employers are responding to unprecedented levels of burnout by investing in a multitude of wellness programs. Across the globe, four in five HR leaders say that mental health and well-being is a top priority, a McKinsey Health Institute survey reveals. Yet in many cases, employee attrition and burnout remain stubbornly high. Why the disconnect? McKinsey research suggests that many employers focus on relieving symptoms of burnout among individuals but don’t deal with solving the root causes of burnout in the workplace.

•

Burnout’s biggest predictor. Employees who report experiencing high levels of toxic behavior in the workplace are eight times more likely than their peers to have symptoms of burnout, according to McKinsey Health Institute’s survey of nearly 15,000 employees and 1,000 HR leaders. Burnout is costly: respondents who have symptoms such as extreme tiredness are also six times more likely than others to say they intend to quit their jobs in the next three to six months. Explore eight questions that can help organizational leaders address burnout at work.

— Edited by Belinda Yu

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by "McKinsey On Point" <publishing@email.mckinsey.com> - 11:36 - 6 Jun 2022

Don’t be afraid of innovating

the Daily read

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AN ARTICLE A DAY, PICKED BY OUR EDITORS

Fear is a natural emotion and something we’ve all experienced at some point in our careers. While fear can sometimes motivate us to act boldly, it can also stand in the way of us achieving great things. In a recent survey, 85 percent of executives said that fear holds back innovation efforts often or always in their organizations. How can companies cultivate a culture of innovation while recognizing the role of fear? Be sure to check out a new article to explore the five ways to move past these barriers and drive growth.

— Joyce Yoo, digital editor, New York

Fear factor: Overcoming human barriers to innovation

Worries about failure, criticism, and career impact hold back many people from embracing innovation. Here’s how to create a culture that accounts for the human side of innovation.

Embrace new possibilities

Quote of the Day

“When we enter the digital mindset arena, we have to change how we frame everything that we do. It’s a process of changing how we think—how we think about collaboration, how we think about computation, and how we think about change.”

—Tsedal Neeley, Naylor Fitzhugh Professor of Business Administration at the Harvard Business School, in a new Author Talks interview

Chart of the Day

Be rigorous and specific in your training efforts

Also New

photo of hand holding grocery receipt in front of shopping cart

Navigating inflation in retail: Six actions for retailers

Retailers are facing the possibility of persistent inflation—but they can meet that challenge in ways that streamline operations, retain customers, and drive profitable growth.

Weather the storm

Failure is not an option: Increasing the chances of achieving net zero

Countries and companies globally are taking action to pursue net-zero emissions, but their plans could easily be derailed by myriad factors. Here are some considerations for helping to keep them on track.

Monitor and adapt

How to be a great 21st-century CEO

What do CEOs do? Why do they do it that way? And what matters most?

Learn to lead

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by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 05:34 - 6 Jun 2022

Is your leadership training effective? A leader’s guide

Leading Off

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ESSENTIALS FOR LEADERS AND THOSE THEY LEAD

Leadership development programs are a thriving business. Prior to the COVID-19 outbreak, the market was estimated to be worth more than $50 billion, and it is one of the few learning and development markets that continues to grow despite other economic trends. Yet over the decades, organizations have been consistently dissatisfied with the results of their leadership training efforts. For example, only 11 percent of executives in a McKinsey study believe that their leadership development interventions achieve and sustain the desired results. Strong leadership is more critical than ever as the world grapples with crisis and uncertainty. This week, let’s explore what’s missing in leadership training programs and how to adjust them to the needs of a new generation of leaders.

AN IDEA

Illustration of two people leading a workplace seminar

A one-size-fits-all program that develops generic leadership competencies is unlikely to suit the unique objectives of your organization. One company held a workshop to help leaders foster a “more global mindset”—with little discussion as to why a global mindset was essential to the company strategy to begin with or what participants should do differently in their daily work. A more effective approach is to rigorously connect your organization’s objectives with the critical leadership behaviors needed to achieve them. For example, an oil and gas company might emphasize operational discipline and safety, whereas a private-equity investment firm might value swift decision making and action. Clearly identify the gap that the leadership development program needs to fill, and focus on a few priority behaviors rather than making sweeping changes all at once.

A BIG NUMBER

20

That’s the number of fundamental leadership traits that correlate closely with organizational performance and should be at the center of any leadership development program. These characteristics include simple but effective tactics such as facilitating group collaboration, giving praise, and being supportive; in turn, they fall under the four broader leadership qualities of insight, integrity, courage, and agility. Collectively, these four attributes have the power to drive the kind of sustained innovation that can take organizations in bold new directions.

A QUOTE

“Corporations are victims of the great training robbery.”

With that provocative statement, the authors of this Harvard Business Review article launch into a critique of why most leadership development programs don’t deliver a good return on investment. A key reason is context: even highly motivated participants fail to apply what they have learned because their units are still entrenched in the old ways of doing things. Individual development, therefore, needs to come after organizational redesign. And since each region, function, and operating group has its own unique needs, senior leaders should consider a unit-by-unit change strategy that integrates individual education with organizational development objectives. Context is a critical element of successful leadership, and providing it involves equipping leaders with a small group of capabilities that will make a significant difference to performance.

A SPOTLIGHT INTERVIEW

“We need to prepare the leaders of the future—people who are going to return this country to a better place,” says former presidential adviser David Gergen. In this McKinsey Author Talks interview, Gergen calls for a younger generation of leaders to tackle urgent issues such as economic challenges, racial inequities, and climate problems. He advises that doing so will require a hard head and a soft heart: “Both things are important. You do need someone who’s tough. . . . [But] an important element of leadership today is to understand the little guy, to understand the women who’ve been discriminated against, to understand the people of color who’ve been discriminated against, and to join them in trying to make their lives better.”

NEW DEAL

Many of the favored leadership qualities of yesteryear—assertiveness, charm, charisma, risk taking—aren’t necessarily the ones that organizations choose to develop today. Increasingly, companies are looking for leaders who demonstrate humility, empathy, and the ability to look beyond their own self-interest. People-focused traits such as integrity, ethics, connectedness, and awareness of social-justice issues are increasing in importance, and more organizations offer specialized programs to develop leadership character.

Lead by developing good leaders.

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

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by "McKinsey Leading Off" <publishing@email.mckinsey.com> - 01:25 - 6 Jun 2022

European consumers’ cost of living rises as optimism drops

McKinsey&Company

The adaptable European consumer

In the news

•

Déjà vu. European consumers may feel like they’re back in 1999, when consumer price growth soared upon the creation of the single currency. Inflation in the eurozone has climbed for ten months straight, with the index of consumer pricing hitting 7.4% in April 2022; economists expect it to rise even more. Since the war in Ukraine began, the prices of energy and raw materials have soared, further driving up inflation. At the same time, the easing of COVID-19-related restrictions has intensified demand. [FT]

•

Not-so-stiff upper lip. Facing the biggest cost-of-living uptick on record, British consumers are feeling more pessimistic than ever, according to a market research company that has been tracking sentiment since 1974. UK consumers are more downbeat than their peers in France and Germany and more negative than they were during periods of high inflation and unemployment in the 1980s and 1990s. The future is murky, with inflation in the UK predicted to exceed 10% this year. [Reuters]

Rising prices, followed by the invasion of Ukraine, have eclipsed COVID-19 as the number-one worry among European consumers.