What’s the biggest fear holding us back from being innovative at work?

McKinsey&Company

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In the news

•

Hidden tensions. Success can be elusive when it comes to innovation. About three-quarters of new product launches fail. Such failures are often blamed on bad luck, or a shortage of talent or money. But the true causes are tensions arising from dynamic work settings, according to academic research. If mismanaged, these tensions can damage organizations. For instance, leaders should know when it is better to be disciplined versus flexible. It’s often better to be disciplined when selecting the right opportunity, but executing it calls for greater flexibility. [MIT]

•

Rethinking uncertainty. When early humans came across a cave, that could have meant they found a safe place to rest or, if a predator was hiding in that cave, just the opposite. To keep us alive, the brain interprets not knowing as threatening. That’s why uncertainty can feel scary. The brain’s bias for certainty is so strong that it makes up stories to provide closure. But when we prematurely fill in the blanks, we can oversimplify complex issues. Accepting uncertainty, however uncomfortable, allows us to be open to new ideas. [Quartz]

We were intrigued to find that the fear of career impact emerged as the biggest differentiator between those who work at top innovation companies and others.

On McKinsey.com

•

Three fears. Innovation is critical to growth. But fear can stop experimentation in its tracks, leading to less creativity and less ambitious ideas. To learn how organizations successfully create a culture of innovation, McKinsey surveyed and interviewed executives who lead innovative projects around the world. The top three fears holding back corporate innovation were fear of criticism, fear of uncertainty, and fear of negative impact on one’s career, McKinsey research found. Yet nine out of ten companies are doing nothing to relieve these fears.

•

Embolden employees. Executives at the leading innovators say that their workplaces are filled with positive energy and enthusiasm. Helping colleagues move past fear isn’t easy, but it’s necessary for companies to build a true culture of innovation. By providing employees with psychological safety, a purpose that prizes innovation, and recognition and rewards, organizations can embolden employees to be willing to risk failure. Explore five fundamentals of innovation culture and how top innovators nurture creative ambition.

— Edited by Belinda Yu

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by "McKinsey On Point" <publishing@email.mckinsey.com> - 10:28 - 14 Jun 2022

Probing reality and myth in the metaverse

the Daily read

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AN ARTICLE A DAY, PICKED BY OUR EDITORS

Are you ready to dive into the metaverse? Whether you’re a proponent or a skeptic, chances are, you are already engaging in some form of the metaverse in your daily lives through immersive devices and experiences. While there is so much information about what it is, what it is not, who it is for, and how it is used, it is clear that consumers will be the driving force in its evolution, according to a new article. Get updated on the current consumer sentiment about the metaverse plus the six myths, and be prepared for the future.

— Joyce Yoo, digital editor, New York

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Probing reality and myth in the metaverse

Despite some skepticism, our recent insights show that Americans of all ages are ready to embrace the metaverse.

Grasp the discrepancies

Quote of the Day

“I’ve always been a big believer that people don’t experience your values; they experience your behaviors. They experience the way things happen, implicitly and explicitly, inside an organization. That defines the smell of the place—the culture of an organization.”

—Rishad Premji, executive chairman of Wipro, on the company's cultural transformation in “Inside Rishad Premji’s quest to create a high-performing culture at Wipro”

Chart of the Day

Chart of reasons why shoppers purchase dairy products

See today’s chart

Also New

Photo of a group of Black women conversing

Black representation in the beauty industry

Black beauty consumers and brands face deep challenges when it comes to equity. Removing those barriers can lead to greater opportunity for everyone in the industry.

Flip the script

Growth sprouts for SMEs in e-commerce

Small and medium-size enterprises (SMEs) can capture a share of Europe’s booming online home-and-garden market—if they fine-tune customer insights and build new capabilities.

Build new capabilities

Author Talks: How to build a damn good business

Business guidance can hinge on an assumption of existing financial access, making the advice irrelevant to budding entrepreneurs with less privilege. Kathryn Finney seeks to level the playing field.

Make it fair

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

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by "Cynthia Gumbert" <cynthia@smartbearmail.com> - 01:31 - 14 Jun 2022

How are Americans feeling about the economy?

McKinsey&Company

Reflecting on the US economy

In the news

•

Turbulent times. Some financial experts are warning that the US economy could plunge into a recession in the next year, despite the current strength of the job market and robust consumer demand. Economists are worried about rising costs to borrowers, which they fear could lead to a sudden decrease in spending. The increasing cost of gas and commodities from the war in Ukraine and supply chain issues related to the COVID-19 pandemic have increased anxieties over a potential downturn. [WaPo]

•

Prices climb higher. Annual inflation ticked down slightly in April, but other key measures remained worrisome. The consumer price index increased at a brisk 8.3% in April. Core inflation—which policy makers consider an important barometer that helps to predict where inflation is headed—increased 0.6% in April, a speedier pace than its 0.3% increase in March. Services prices are also rising, as industries offer higher wages in response to shortages of workers. [NYT]

Across almost every demographic, income level, and age group, more respondents believe the US is doing a poor job of providing opportunities for all people.

On McKinsey.com

•

Mounting pessimism. Many Americans consider economic opportunity to be increasingly out of reach, despite rising wages, a sizable pick of jobs, and a low unemployment rate, according to McKinsey’s American Opportunity Survey. Across nearly every demographic group, Americans are more pessimistic than they were in two surveys from 2021. In March–April 2022, optimism dipped 5% lower when compared with a survey from six months ago and 3% lower than in a survey conducted a year ago.

•

Dwindling opportunities. More Americans reported having fewer economic opportunities than they did a year ago and said they expect even fewer opportunities in a year and five years from now. However, there were also bright spots: younger people (aged 25 to 34) had the most positive outlook of all age groups. Among these respondents, optimism was higher across all racial and ethnic groups, and highest among college graduates, higher-income earners, and those living in urban areas.

— Edited by Katrina Parker

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by "McKinsey On Point" <publishing@email.mckinsey.com> - 10:06 - 13 Jun 2022

Black representation in the beauty industry

the Daily read

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AN ARTICLE A DAY, PICKED BY OUR EDITORS

Black Americans are a major force in the beauty industry. They are responsible for over 11 percent of the total beauty market in the US and spent over $6 billion on beauty products last year. Despite this spending power, however, the industry is rife with inequity—there’s limited resources and funding available for Black beauty brands and entrepreneurs, and Black consumers struggle to find quality products or see themselves represented in ad campaigns. This is a missed opportunity worth $2.6 billion, according to McKinsey research. Take a deep dive into the findings and see how investing in the Black beauty industry could lead to greater equity across the board—for shoppers, entrepreneurs, large beauty houses, retailers, and investors.

— Joyce Yoo, digital editor, New York

Black representation in the beauty industry

Black beauty consumers and brands face deep challenges when it comes to equity. Removing those barriers can lead to greater opportunity for everyone in the industry.

Flip the script

Quote of the Day

“It’s about going into that room and making everyone believe you are the coolest person they met that day for the sheer fact that you are probably vastly different than what they see on a daily basis. . . . You come in with that, and it helps you maintain that strength and that belief in yourself.”

—Kathryn Finney, founder and managing partner of the venture fund Genius Guild, on maintaining a sense of self-worth amid setbacks in a recent Author Talks interview

Chart of the Day

See today’s chart

Also New

Semiconductor shortage: How the automotive industry can succeed

As the semiconductor shortage persists, the automotive industry will likely benefit from new sourcing models and stronger bonds between OEMs, Tier 1 suppliers, and semiconductor suppliers.

Understand the challenges

Asian woman with shopping bags and mask on mobile phone

Catering to Asian consumers

The latest Consumer Pulse Survey reveals an optimism unmoved by current economic and geopolitical challenges, though sentiment may be shifting. How can retailers and consumer goods companies keep pace?

Keep pace with sentiment

What are the biotech investment themes that will shape the industry?

From 2019 to 2021, venture capitalists plowed $35 billion into biotech companies with advanced platform technologies that could transform the industry.

Accelerate the impact

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by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 06:50 - 13 Jun 2022

3 Days Left for the Free Webinar on How are AI dash cams transforming transport management systems? Register Now 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.

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Getting digital transformation right: A leader’s guide

Leading Off

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ESSENTIALS FOR LEADERS AND THOSE THEY LEAD

According to a popular meme, it isn’t the CEO or the CTO who is leading digital transformation at most companies—it’s COVID-19. The pandemic accelerated digital transformation at a speed once thought impossible: in a matter of months, companies worldwide adopted digital technologies that normally would have taken three to seven years to implement. By mid-2020, some organizations had sped up the development of digitally enhanced products and services by a stunning ten years. Although many companies adopted digital technologies in some form or other decades ago, only in recent years has digital transformation become a critical component of organizational health. The process can include anything from automating manual tasks to moving in-store sales online to delivering better customer experiences. It’s therefore important to become digitally savvy, no matter what your role is in a digital transformation effort. This week, let’s explore some best practices.

AN IDEA

Ensure deep involvement from leadership teams

While technology alone can’t guarantee the success of a digital transformation, it is becoming a crucial competitive advantage. More than half of respondents to a McKinsey global survey say that their companies rely on technology to strategically differentiate themselves from competitors. Top performers are ahead of their peers on key digital-technology capabilities and are nearly twice as likely to have technology leaders who shape overall strategy and play a major role in innovation and product development. The best performers are more than twice as likely as the lowest performers to have at least seven top leaders overseeing the technology-related thinking for their organizations. The growing importance of digital signals an urgent need for all leaders in an organization to understand and engage with technology, even if their roles did not call for this in the past.

A BIG NUMBER

10

Many things can go wrong in a digital transformation, but these ten pitfalls are particularly damaging to its success. Not surprisingly, most of them have to do with fundamental strategic blunders, such as lack of discipline and focus, moving too slowly or too fast, underestimating the talent needed, and—a proven recipe for failure—not learning from mistakes. Once a digital transformation project is under way, it’s essential for senior leaders to monitor its progress by checking digital metrics, especially key markers such as return on investment, spending on technology, and time to market. And if the transformation stalls, improving its economic model can keep the momentum going.

A QUOTE

“It’s best to start with a concentration in a particular area rather than sprinkle a little bit of digital or a handful of analytics use cases broadly across the organization.”

That’s just one rule of thumb that McKinsey’s Rodney Zemmel offers up in this podcast on how leaders can assess the transformative value of a digital business. Don’t spread your efforts too thin; rather, increase your odds of success by limiting digital initiatives to a single area at first before extending them to other parts of the organization. Another rule of thumb is to make sure that the transformation is big enough: it may not have much value if its economic impact is less than 15 or 20 percent of an organization’s earnings before interest, taxes, depreciation, and amortization. “If you’re not targeting at least 15 or 20 percent, in our mind it’s hard to call that a transformation and to sustain the level of organizational focus around it,” Zemmel says.

A SPOTLIGHT INTERVIEW

“When it comes to seeing a digital transformation through, you have to be practical,” says Alain Bejjani, CEO of Majid Al Futtaim, a global retail and lifestyle conglomerate. “This means you need to have one eye on the telescope—an ambitious vision—and the other eye on the microscope, which are the short-term developments where you have to adapt as you go.” In this interview with McKinsey, Bejjani discusses the critical role that leaders play in achieving this balance. Although short-term results are important to management teams, leaders must take the long view and serve as role models, inspiring and motivating people by creating a learning culture, investing in skill development, and changing course as needed to meet long-term objectives. “It’s important to avoid ‘transformation fatigue,’” Bejjani says. “Sometimes the actions that have had transformative results in the past don’t work as well in the future, or at a larger scale.”

PARTLY CLOUDY

Contrails from an airplane on blue skies

Can’t tell MLOps from qubits? Now may be a good time to enhance your tech vocabulary. Machine-learning operations, quantum computing, additive manufacturing, and edge computing are just a few of the advanced technologies that will transform businesses across industries and sectors. Companies are already investing heavily in cloud computing to improve their operations. Without an understanding of the impact of emerging technologies, leaders can’t make informed business decisions. Yet only 7 percent of large companies have digitally savvy executive teams, according to a global survey; those that do outperform companies without such teams by more than 48 percent based on revenue growth and valuation.

Lead digitally.

— 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> - 01:06 - 13 Jun 2022

David Gergen tells the boomers leading the US, “It’s time to move on”

McKinsey&Company

Passing the torch

In the news

•

Benching old-timers. Some of the most influential US leaders have the same thing in common, declares former presidential advisor David Gergen: they’re too old. Gergen says the baby boomer generation (and their elders) should stop trying to hold onto power and step aside so that young people—including an impressive cohort of veterans and Black women—can lead. An 80-year-old himself, Gergen says the US Executive Office of the President requires a younger, sharper mind. [PBS]

•

A moral crisis. The US faces a moral crisis that demands the talent of young people, says Gergen. Younger generations are hungry for tough, character-forming leadership experiences, as seen with young activist leaders fighting for changes in the environment and civil rights, he adds. Character, capability, and courage are leadership essentials, yet too many students plan to work in the private sector. We need to offer up public service “in a very big way,” says Gergen. [CBS News]

“What I see in the younger generations is real promise. They have a steel in them, they have an inner discipline, and they care greatly about the country.”

On McKinsey.com

•

New problem solvers. In an interview with McKinsey, David Gergen, who is also a CNN senior analyst and founding director of the Harvard Kennedy School’s Center for Public Leadership, discusses his new book, Hearts Touched with Fire: How Great Leaders Are Made. Gergen contends that the problems facing the US today—including the economy, racial inequalities, and climate issues—require a fresh, dynamic form of leadership. Young Americans show grit and idealism and should be encouraged to enter the political arena, Gergen says.

•

Harness the power of youth. Gergen believes that the US needs a national service program that would allow young people to work for their communities for a year in exchange for relief from college debt. Businesses can strengthen up-and-coming generations by committing to creating more jobs for people of color. But most of all, older leaders need to recognize when it’s time to step aside and offer the support and counsel the next generations need to eventually take over.

— Edited by Katy McLaughlin

Empower youth

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by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:41 - 13 Jun 2022

Join us at Hiring Remote Tech Talent 101 webinar

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by "Remote" <hello@remote-comms.com> - 12:05 - 13 Jun 2022

The week in charts

the Daily read

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

Our Charting the path to the next normal series offers a daily chart that helps explain a changing world—as we strive for sustainable, inclusive growth. In case you missed them, this week’s graphics explored value creation in medtech, the transition to a lower-carbon energy system, remote-first customer service, decarbonization in the petrochemicals industry, and the consumers seeking healthier food.

FEATURED CHART

Diagnosis? Stalled growth

This week’s other select charts

Power forward

Customer service without the call

All in

Millennials go organic

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by "McKinsey Week in Charts" <publishing@email.mckinsey.com> - 03:10 - 11 Jun 2022

La guerra en Ucrania está cambiando el mundo

McKinsey&Company

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Destacados mensuales, Junio de 2022

A medida que persiste la guerra en Ucrania, las disrupciones en una variedad de frentes están cobrando fuerza y podrían remodelar las industrias y las economías. Este mes, nuestras historias destacadas se sumergen en la fuerza potencial y la dirección de estos cambios y sus efectos en las vidas y los medios de subsistencia, así como en las posibles ramificaciones de la guerra en los requisitos clave para una transición hacia cero emisiones netas más ordenada. Otros destacados en la edición de este mes incluyen los siguientes temas:

Las últimas tendencias críticas y riesgos en la economía global
Cómo ha evolucionado el sentimiento y el comportamiento del consumidor estadounidense desde que comenzó la pandemia
Qué hace que una transformación digital sea exitosa
El futuro de los bienes inmuebles en el lugar de trabajo

La selección de nuestros editores

La guerra en Ucrania: Doce disrupciones que están cambiando el mundo

La guerra está devastando vidas y trastornando los mercados. Aquí hacemos un seguimiento de las disrupciones que, probablemente, darán forma a las vidas y los medios de subsistencia, más allá de la crisis inmediata.

Navegue la crisis

La transición a cero neto tras la guerra en Ucrania: ¿Una desviación, un descarrilamiento o un camino diferente?

La invasión de Ucrania, al menos en un principio, complicará el camino de la transición hacia una economía de cero emisiones netas, pero este trágico acontecimiento aún podría ser un punto de inflexión para acelerar el progreso a mediano plazo.

Entienda los eventos globales

LOS DESTACADOS DE ESTE MES

Container box in warehouse in shipping port

Resumen ejecutivo de Global Economics Intelligence abril de 2022

En medio de la alta inflación y la guerra en Ucrania, persiste una fuerte demanda; las instituciones de pronósticos recortan sus estimaciones de crecimiento. Comprenda las tendencias mundiales

Qué están sintiendo, comprando y gastando los consumidores estadounidenses, y qué significa para las empresas

La última encuesta Consumer Pulse muestra que, en todo Estados Unidos, la gente ha adoptado nuevos comportamientos y, al mismo tiempo, ha vuelto a sus viejos hábitos. ¿Qué harán a continuación? Conozca las preferencias

La transformación digital en la agenda del CEO

Las transformaciones digitales exitosas pueden no ser tan elusivas como se cree. Los mejores CEOs saben de antemano cómo es el éxito y qué se interpone en su camino. Mejore más rápido

Los bienes inmuebles en el lugar de trabajo en la era de la COVID-19: De centro de costos a ventaja competitiva

Las empresas de hoy deben construir lugares de trabajo que les ayuden a realizar sus estrategias. He aquí por qué y cómo. 3 pasos para la transformación

Informe sobre el estado de la tecnología de la moda 2022

A medida que se acelera la innovación tecnológica, las empresas de moda tienen la oportunidad de atender mejor a sus clientes y, al mismo tiempo, crear un negocio más eficiente, receptivo y responsable. Manténgase al día

Illustration of electric car being constructed

¿Puede la industria automotriz escalar lo suficientemente rápido?

El rápido aumento de la adopción de los vehículos eléctricos podría transformar el ecosistema automotriz y promover innovaciones aún mayores. Para que eso suceda, dos imperativos necesitan atención inmediata. Acelere la evolución

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Afrontar el reto de la doble jornada de las madres en el hogar y el trabajo

A medida que Estados Unidos emerge de la pandemia, ¿cómo pueden las empresas crear un entorno de trabajo más incluyente para mejorar los resultados de las mujeres en la fuerza de trabajo?

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What will it take to boost Latino economic power?

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Reimagining the future of financial-services headquarters

Bias Busters: When the crowd isn’t necessarily wise

Author Talks: Tomorrow’s capitalist is socially conscious

The role of space in driving sustainability, security, and development on Earth

CFO perspectives on leading agile change

Around the world, nurses say meaningful work keeps them going

Forward Thinking on trade, vaccines, and sustainable and inclusive growth with WTO Director-General Ngozi Okonjo-Iweala

Quantum computing just might save the planet

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by "Destacados de McKinsey" <publishing@email.mckinsey.com> - 08:57 - 11 Jun 2022

The Daily Read weekender: Now for something a little different

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CURATED PICKS FOR YOUR DOWNTIME, FROM OUR EDITORS

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Ready for something a little different? The Daily Read is switching things up with a new Friday edition to help you ease into the weekend. You’ll get a glance at our most compelling reads from the week, plus lighter fare to digest in your downtime.

Here’s what broke through this week:

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War in Ukraine. The COVID-19 pandemic. Climate change. In a world defined by these and other complex disruptions, how can organizations build resilience to withstand shocks and drive sustainable, inclusive growth? A new paper, free to download, from the World Economic Forum and McKinsey can help.

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Speaking of the global economy—what’s happening with inflation, growth, and more? Our latest Global Economics Intelligence summary offers a snapshot of critical trends and risks.

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Innovation drives growth. Get a lens on how masters of innovation essentials drive outperformance and how virtual work is accelerating innovation. And if you’re holding back worried your big idea will fail, never fear; you can foster a culture that accounts for the human side of innovation.

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Listen to the latest episode of The McKinsey Podcast—this week’s conversation centers on managing the coming wave of investment in capital projects.

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Dr. Jenny Wang dug into why we need to talk about mental health in Asian American communities in the latest from our Author Talks series.

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Our newsletters offered a guide to leadership development, looked at Gen Z in Asia, explored how quantum computing can fight climate change, and more. Missing out? Sign up here to get the best of our knowledge, hand-picked by McKinsey editors. As with all our content, they're free.

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“[My] main thought was that if those of us who lived outside Africa didn’t come back to contribute, how would things get better? I felt it was our responsibility, our obligation, to come back even if I didn’t know exactly if I could have an impact or how to start.”

—McKinsey senior partner Acha Leke on the pivotal moments of his career in “The importance of purpose: An interview with Acha Leke”

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by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 06:59 - 10 Jun 2022

A quantum leap in the fight again climate change: Quantum computing

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Our best ideas, quick and curated | JUNE 10, 2022

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This week, how quantum computing has the power to revolutionize the fight against climate change. Plus, the ever-expanding CFO role, and three questions for the director-general of the World Trade Organization.

Hot air balloon flying over a desert landscape

Getting back on track. The daunting climate challenges we face can make the future feel overwhelming for many people. But there are technologies out there—and companies pursuing solutions—that give cause for hope. Here, we look at the emerging technology of quantum computing, and how it could transform the economics of decarbonization and become a major factor in limiting global warming to the target temperature of 1.5°C.

From millennia to minutes. Quantum computing leverages the laws of quantum mechanics to produce exponentially higher performance for certain types of calculations. (As an example, factoring a 2,048-bit prime number with today’s supercomputer takes about one trillion years, but with quantum, that calculation could take about a minute.) Even though the technology is in the early stages of development, experts estimate that the first generation of fault-tolerant quantum computing will arrive later this decade. Even now, breakthroughs are accelerating, investment dollars are pouring in, and start-ups are proliferating.

Tackling the hard stuff. Quantum computing could help to reduce emissions in some of the most challenging or emissions-intensive areas, such as agriculture or direct-air capture, and could accelerate improvements in technologies required at scale, such as solar panels or batteries. In “Quantum computing just might save the planet,” McKinsey looks at how its computational powers could also be harnessed to make the production of cement emissions-free, improve electric batteries for vehicles, develop better renewable solar technology, use green ammonia as a fuel and a fertilizer, and more.

In aggregate. Quantum-computing use cases in five key areas could help pave the way to a net-zero economy. By 2035, these use cases could eliminate more than seven gigatons of carbon dioxide equivalent from the atmosphere a year, compared with the current trajectory, or in aggregate more than 150 gigatons over the next 30 years.

Glass half full. The transformation of the global economy that’s needed to achieve net-zero emissions by 2050 will require an exceptional mobilization of resources, expertise, and funds. While that transition is fraught with risks and volatility, it will also bring growth opportunities, as decarbonization creates efficiencies and opens markets for low-emissions products and services. Quantum computing, which can solve specific problems that have long been considered insoluble, could help put the goal of limiting global warming within reach.

OFF THE CHARTS

The CFO’s ever-expanding portfolio

A new survey of chief financial officers found that these execs have increasing influence in organizations. Between 2018 and 2021, the share of roles reporting to the CFO rose in functions including procurement, investor relations, and digital.

Chart of global semiconductor market value, by vertical

Check out our chart of the day here.

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INTERVIEW

A Singapore conglomerate gets singular-minded

Keppel Corporation, which started off as a shipyard in the 1960s, has reinvented itself several times over the decades, from expanding into the offshore-rig business to ultimately focusing on energy and the environment, urban development, and asset management. Now, CEO Loh Chin Hua is on a mission to transform Keppel, one of Singapore’s leading conglomerates, into a future-ready organization with strong purpose and relevance. “I don’t think transformation is just a matter of providing a narrative,” he told McKinsey in a recent interview. “You have to show that you can execute well.”

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by "McKinsey’s Global Survey Panel" <mckinsey_global_surveys@executivepanel.mckinsey.com> - 01:30 - 10 Jun 2022

Nonpromotable work can hurt women’s careers. Why do so many women do it?

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Saying ‘yes’ to no

In the news

•

Why we say ‘yes.’ Saying “no” to work requests can be difficult for myriad reasons. People are social creatures, for one. There is also reciprocity bias and fear of reputational costs—and of damaging a work relationship. Plus, remote work can impede saying “no,” since colleagues miss the relational connection that comes from being in the same physical space. But there are just as many reasons to say “no,” including avoiding becoming overwhelmed and even burned out. Setting career goals can make it easier to say “no” to the tasks that aren’t in line with your vision. [Fast Company]

•

Won’t you be my ally? Women continue to face serious barriers in career advancement, including structural roadblocks that prevent access to equal opportunities, confidence hurdles, “boys’ clubs” that exclude women from professional and social networking, sexual harassment, and racial violence. This is why allyship for women is all the more crucial. Women seeking male allies can begin by identifying growth opportunities in their workplaces and then finding individuals who embody allyship—both in words and actions. [HBR]

“Women aren’t the problem. Organizational practices are.”

On McKinsey.com

•

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> - 10:06 - 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

Preparing for private-equity exits in the COVID-19 era

Exits have all but stopped, for the moment. Leading firms are taking advantage of the extra time.

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Air-mobility solutions: What they’ll need to take off

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> - 07:29 - 9 Jun 2022

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“﻿[My] main thought was that if those of us who lived outside Africa didn’t come back to contribute, how would things get better? I felt it was our responsibility, our obligation, to come back even if I didn’t know exactly if I could have an impact or how to start.”

ON NET-ZERO REAL ESTATECut your real-estate emissions

40%

of all greenhouse-gas emissions are related to real estate

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.

“[My] main thought was that if those of us who lived outside Africa didn’t come back to contribute, how would things get better? I felt it was our responsibility, our obligation, to come back even if I didn’t know exactly if I could have an impact or how to start.”

ON NET-ZERO REAL ESTATE

Cut your real-estate emissions