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Inflation (and fighting it) is upon us. Here’s how US companies can cope.
On Point
Operating in a slowing economy
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My Rookie Moment: Teamwork
Harmony Internal - McKinsey
Watch episode 10 Edited by Joyce Yoo
Digital Editor, New YorkWorking in teams has many benefits, but the power of teamwork can truly be felt when we are going through something challenging, whether it’s trying to fix a mistake, dealing with tough feedback, or embarking on a new and unfamiliar project. In the latest episode of My Rookie Moment, Michael Birshan, Brian Elliott, Alok Kshirsagar, Asutosh Padhi, Michael Park, and Jennifer Stanley talk about what they’ve learned from working with different types of teams—and how having a collaborative mindset brought out the best in them. Tune in and see what they have to say. And be sure to check out Asutosh Padhi and his coauthors’ forthcoming book, The Titanium Economy: How Industrial Technology Can Create a Better, Faster, Stronger America, which shines a spotlight on the industrial-tech sector.
We all know the value of teamwork. As seasoned consultants, our colleagues understand that working in teams and dealing with different types of people in diverse contexts require flexibility, sensitivity, an open mind, and a collaborative mindset. In this episode, Michael Birshan, Brian Elliott, Alok Kshirsagar, Asutosh Padhi, Michael Park, and Jennifer Stanley, look back on learning from mistakes, being a part of diverse teams, overcoming challenges through teamwork, and appreciating what each team member brings to the table—while meeting them where they are.
Quote of the day
Chart of the day
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The Titanium Economy: How Industrial Technology Can Create a Better, Faster, Stronger America
Asutosh Padhi, Gaurav Batra, and Nick Santhanam reveal manufacturing, an under-appreciated and under-valued sector of the economy, for what it really is: a reliable source of high-paying, domestic jobs and soaring stock prices—a bright spot in an economy that has too often been buffeted by external shocks. #TitaniumEconomyBook
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by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 06:32 - 26 Sep 2022 -
‘If you’re going to build something from scratch, this might be as good a time as in a decade’
Harmony Internal - McKinsey
Be ambitious New from McKinsey Quarterly
‘If you’re going to build something from scratch, this might be as good a time as in a decade’
Be ambitious Share these insights
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A leader’s guide to strategic courage
Harmony Internal - McKinsey
The end game Edited by Rama Ramaswami
Senior Editor, New YorkIt’s probably a given that leaders need to be courageous, but that can take many forms—and these days, courage is more likely to be effective if it is flexible, nuanced, and contextual. Just as leadership styles vary, ways of expressing courage can vary, from restrained determination to outspoken self-confidence. Courage in leadership has never been more essential than now, when our uniquely challenging times demand bold and confident responses. But whether your style is swashbuckling warrior or quiet crusader, it is critical to deploy your courage in strategic ways to advance your organization’s objectives and your own personal growth. Here are some tactics to think about.
It takes versatility to play multiple positions in a game—and the same is true in business. In this article on leading with courage amid volatility, McKinsey global managing partner Bob Sternfels, along with coauthors and senior partners Michael Birshan and Ishaan Seth, note that “the best leaders and companies are ambidextrous: prudent about managing the downside while aggressively pursuing the upside.” Adopting a defense-only posture tends to result in median company performance, whereas an offense-only stance may yield a mix of occasional wins and some major failures. Leaders who are courageous enough to pursue both strategies at the same time also hone three types of competitive edge—deep insights, decisive commitment, and speedy execution—that help them take advantage of volatility and use it as a catalyst to act on new opportunities.
That’s McKinsey experts Andrea Alexander, Aaron De Smet, and Leigh Weiss on acting decisively in uncertain times. Courageous leaders make bold moves—and bold moves are required when making strategic decisions, which come with a high degree of uncertainty. There’s no playbook for making such decisions, especially when under pressure or in a crisis, but adhering to these five principles can steer you in the right direction. Some techniques may seem counterintuitive, such as pausing rather than acting immediately, but adopting them “can help avoid knee-jerk reactions that lead to poor outcomes,” say the authors.
Vulnerability in a leader wouldn’t traditionally be considered courageous, but it is part of the authenticity and humility that are at the core of emerging styles of leadership. In this conversation, McKinsey senior partner Ramesh Srinivasan and MindForward Alliance CEO Poppy Jaman discuss the importance of openly addressing mental-health challenges in the workplace. “Until we get leaders to say, ‘I had a breakdown and I’m still successful,’ we are not going to change corporate culture,” says Jaman. She cautions against creating a culture of “toxic perfectionism” that stigmatizes mental-health problems and stifles risk-taking and innovation. Leaders should recognize their own “stress signatures”—responses to stress such as sleeplessness or loss of appetite—and develop a range of interventions to disrupt downward cycles. Also helpful are “micro-practices” (new or different routine behaviors) that improve one’s mental well-being, Srinivasan says.
If you always wanted to be a ‘chief heart officer’ when you grew up, now’s your chance. The ongoing upheavals in the workplace have given rise to a slew of unique roles and job titles, such as “head of remote,” “head of dynamic work,” or “vice president of flexible work.” Primarily aimed at boosting morale, these jobs involve a gamut of tasks—anything from sharing hot-sauce recipes with employees to planning events with astronauts. Not sold on your new title? Don’t be too quick to write it off. Research shows that rebranding job titles can improve employee engagement and boost recruitment.
Lead courageously.
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by "McKinsey Leading Off" <publishing@email.mckinsey.com> - 02:10 - 26 Sep 2022 -
Companies that violate trust get ‘canceled.’ Are businesses reducing digital risks?
On Point
Our research on digital trust Edited by Alexandra Mondalek
Associate Editor, New York• At risk. Many leaders are highly confident in their company’s ability to establish digital trust, the belief that an organization will protect consumer data, and offer ethical AI-powered products and services. But that assuredness is largely unfounded. Nearly 90% of executives say that they are at least somewhat effective at reducing digital risks. However, less than a quarter report that their organizations are actively mitigating a variety of digital risks across most of their organizations, note McKinsey senior partners Alex Singla, Kate Smaje, and colleagues.
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by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:19 - 26 Sep 2022 -
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by "Adobe Creative Cloud for Business" <demand@info.adobe.com> - 09:10 - 25 Sep 2022 -
Top 10 articles this quarter
McKinsey&Company
At #1: The Great Attrition is making hiring harder. Are you searching the right talent pools? Our top ten articles this quarter look at inflation, tech trends, ESG, and more. At No. 1, senior partner Aaron De Smet, expert associate partner Bonnie Dowling, partner Bryan Hancock, and senior partner Bill Schaninger uncover the five crucial employee personas that companies must understand to solve the attrition and attraction problem for the longer term.
1. The Great Attrition is making hiring harder. Are you searching the right talent pools?
People keep quitting at record levels, yet companies are still trying to attract and retain them the same old ways. New research identifies five types of workers that employers can reach to fill jobs. Reassess now
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by "McKinsey Top Ten" <publishing@email.mckinsey.com> - 03:58 - 25 Sep 2022 -
The week in charts
The Week in Charts
The materials transition, customer care talent, and more Share these insights
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by "McKinsey Week in Charts" <publishing@email.mckinsey.com> - 03:58 - 24 Sep 2022 -
Getting beyond bureaucracy in human resources
Harmony Internal - McKinsey
An antidote to questionnaire overload and multipage templates Getting beyond bureaucracy in human resources
Corporate HR processes are famously complex and time consuming, and corporate HR departments are famously overstaffed. One reason for the bloat might be that many companies have forgotten the business rationale for HR processes. But there’s an antidote to massive HR systems, questionnaire overload, and multipage templates: understanding the function’s strategic goal.
High-quality, timely information about talent pools and gaps, for example, is a competitive advantage that HR is uniquely able to provide. A grocery manager in a global retailer may have proved her value in Argentina, say, just as an important job opens up in Mexico. An oil and gas company could have both a leader who’s running out of growth headroom in the Middle East and a need for someone with similar expertise for a bigger role in Houston. And as digitization becomes more important to cars, an automaker that has long recruited large numbers of mechanical engineers may not have enough software experts or know where to find them. HR can ensure that these connections get made and help executives seize the moment.
It’s easy to say that HR should get out of the way, but the pendulum can swing too far in that direction. Read our classic 2015 article “Getting beyond bureaucracy in human resources.”Learn how HR can help companies realize their goals Mili Bustamante and Neel Gandhi, “Human resources in the age of automation”
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by "McKinsey Classics" <publishing@email.mckinsey.com> - 11:51 - 24 Sep 2022 -
Regional innovation hubs, green infrastructure, and more essential reads for the weekend
Harmony Internal - McKinsey
Unwind with this week's essential reads CURATED PICKS FOR YOUR DOWNTIME, FROM OUR EDITORS
Joyce Yoo
Digital Editor, New YorkAs you get ready for the weekend, take a moment to catch up on this week's big reads on noncoastal US cities driving innovation, Europe's technology gap, investing in green infrastructure, and more.
Quote of the day
—Jaidev Janardana, CEO of Zopa, on growth in the current environment in a recent episode of Talking Banking Matters podcast
Chart of the day
ready to unwind?
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by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 06:45 - 23 Sep 2022 -
Securing Europe’s competitiveness: Addressing its technology gap
Harmony Internal - McKinsey
Understand regional trends Share these insights
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by "McKinsey Global Institute" <publishing@email.mckinsey.com> - 02:10 - 23 Sep 2022 -
Remote wins back-to-back in the G2 Multi-Country Payroll category 🎉
Remote wins back-to-back in the G2 Multi-Country Payroll category 🎉
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Building organizational resilience in volatile times
The Shortlist
Create a framework Edited by Barbara Tierney
Senior Editor, New YorkThis week, we offer a strategic way forward for organizations beset by global challenges. Plus, a look at food loss through the journey of the humble tomato, and McKinsey partner Duwain Pinder on how to build racial and ethnic equity in US higher education.
The decades-long orthodoxy of globalization is under strain as the world continues to face shocks: war, inflation, the long tail of the pandemic. According to a recent McKinsey survey of global economic conditions, CEOs continue to view geopolitical instability and supply chain disruptions as among the top threats to global growth. These challenges (and others yet unknown) may become more acute as the competition for global influence rises in the years ahead.
An analytical approach. CEOs need to know whether they can still remain global players and, if so, how. One way to respond in the face of fragmentation and uncertainty is by intensifying focus on resilience. Of course, global executives have an intuitive sense of where to focus initially to build this skill into their organizations. Now, however, many are looking for a more rigorous and analytical approach. In a recent article, senior partner Andrew Grant and his colleagues focus on six dimensions where CEOs can challenge their organizations to build resilience: business model, reputation, organization, operations, technology, and finance.
Concrete actions. In the case of business model resilience, they write that the board can take the lead in developing an understanding of geopolitical developments that are material to the organization. Boards can identify priority risks by creating a tiered approach, with tier five reflecting markets with the highest level of geopolitical risk and tier one denoting markets with localized risks that can be managed by local leadership and teams. A mechanism can be established for internal teams—legal, security, finance, risk, and communications—to assess the aggregate risk of operating in a particular market and offer options to recalibrate the organization’s presence.
You were an author of a recent report on racial and ethnic equity in US higher education. What did the research reveal?
These findings are not novel, but what is significant is the slow rate of progress in driving inclusive growth. For Black and Native American students and for faculty from all underrepresented populations, there was effectively no progress from 2013 to 2020.
The analysis suggests that higher education has opportunities to address these gaps. What are some of the key ways to make progress?
Three focus areas are recruiting more first-time students from these populations, driving up completion rates, and creating a more diverse faculty. Several strategies can help. First, reflecting on an institution’s role in these inequities can create an environment of intellectual and psychological honesty. After a comprehensive review, institutions can identify how processes, systems, and norms contribute to the marginalization of underrepresented racial and ethnic groups. For instance, universities could incorporate processes designed to boost racial equity in their administration of research and grant activities or implement strategies to reduce disparities in their local community.
Institutions can then embed new racial-equity priorities into their culture. That involves incorporating equity as part of the strategic plan, dedicating sufficient resources to the effort, and assigning a senior leader and staff to support the president or chancellor in implementing ideas and tracking progress. Clear and frequent communication with stakeholders—including alumni, staff, and donors—at each stage of this work will ensure that people in every part of the institution and its extended community are progressing together toward a shared goal.
You’ve done a lot of work with historically Black colleges and universities (HBCUs). How can their unique position help Black Americans make economic progress?
The US racial wealth gap is the product of several factors, including intergenerational transfers, lower incomes, and a lack of financial inclusion. Yet, our data show that a strong HBCU network could increase Black worker incomes by about $10 billion in addition to strengthening the economy with $1.2 billion in incremental business profit, $300 million in decreased student-loan debt, and $1 billion in additional consumer expenditures.
In your role as a leader of the McKinsey Institute for Black Economic Mobility, what are you really excited about?
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by "McKinsey Shortlist" <publishing@email.mckinsey.com> - 02:35 - 23 Sep 2022 -
What could life be like in the 2030s?
On Point
McKinsey leaders envision the next decade Edited by Belinda Yu
Editor, Atlanta• Your rocket is boarding. The COVID-19 pandemic launched companies and industries into an era of head-spinning change. With businesses going digital in a matter of days, the next decade could bring more innovation than at any other time in our modern history. What might life look like in the 2030s? For one thing, imagine boarding a rocket in New York and landing in Paris 30 minutes later. That’s the premise of point-to-point transport, and just one way that the concept of space could support life down on Earth, says McKinsey’s Jesse Klempner.
• Electric air taxis. In the next decade, expect electric flying vehicles to become an accessible, seamless, and common way to travel, reveal McKinsey partners Kersten Heineke and Robin Riedel. For the same price as a taxi, electric air taxis could land in people’s neighborhoods, routinely ferrying travelers and cargo within a 100-mile radius. In our multimedia series, The Next Normal, McKinsey leaders and business executives envision what the future may hold. Explore our new interactive and consider how life might change.
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by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:34 - 23 Sep 2022 -
How to attract and retain talent amid the Great Attrition
Harmony Internal - McKinsey
Confront the issues Edited by Joyce Yoo
Digital Editor, New YorkPeople are still quitting their jobs. Some are leaving the workforce entirely. Companies are continuing to struggle to fill positions. As the Great Attrition persists, what can employers do to find and retain talent? In a new episode of The McKinsey Podcast, associate partner Bonnie Dowling digs into the latest McKinsey research on this topic. She delves into the five worker personas of those who left their jobs—the traditionalists, the do-it-yourselfers, the idealists, the caregivers, and the relaxers—and what companies can do to attract them. Tune in and confront the attrition problem.
Quote of the day
—Associate partner Christie McNeill on the shift in sentiment among US insurers in “Climate and insurance: How carriers are preparing for a net-zero future”
Chart of the day
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by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 06:43 - 22 Sep 2022