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Lifting more people above the ‘empowerment line’
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This week’s headline findings
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With McKinsey, it’s never just tech. Find out how we apply strategy, deep domain expertise, and more to help clients outcompete with technology and transform their companies.Many people in lower- and middle-income countries have built better lives thanks to economic growth, but in wealthier countries—the McKinsey Global Institute estimates—about 20 percent of the population consistently falls below the “empowerment line,” a threshold at which people can afford necessities and start saving. That’s because essentials get more expensive as countries grow wealthier. But if all countries with pricier goods and services could cut those costs to match nations with similar income levels but cheaper necessities, about 230 million additional people could rise above the empowerment line, say senior partners Kweilin Ellingrud and Marco Piccitto and coauthors. Although the public sector would need to play its part in making this happen, the private sector can help by striving to offer affordable goods and services in housing, energy, food, healthcare, and communication.
Underdeveloped leadership is a key reason for the 80 percent failure rate of start-ups, making intentional investment in leadership development crucial. When founders delegate effectively, they not only free up their own time and energy but also empower their employees to take on more responsibility and make decisions on their own. This fosters a sense of trust and autonomy and also allows for growth and innovation within the company, say senior partners Alok Kshirsagar and Arne Gast and coauthors. Well-developed leadership has a profound impact. McKinsey research shows that organizations performing in the top quartile of leadership have almost double the EBITDA of others. But it’s a tricky balance to strike because effective leadership at a start-up needs to allow for rapid transformation while also respecting the entrepreneurial spirit that led to the start-up’s creation.
The apparel industry faces challenges due to supply chain disruptions. To thrive, brands must rethink sourcing strategies, become more efficient, collaborate with suppliers, and embrace digital solutions, say senior partners Karl-Hendrik Magnus and Patricio Ibáñez and coauthors. Apparel businesses understand the urgency and are focusing on efficiency, supply chain resilience, and sustainability, according to McKinsey’s latest global survey of apparel chief procurement officers and its annual apparel sourcing roundtable. AI can help companies analyze consumer data and market trends, allowing designers to create products that are innovative and in demand. By streamlining the design process, technology enables businesses to quickly adapt to changing consumer preferences and market conditions. Embracing digital solutions helps reduce costs and increase efficiency in supply chains. In the near term, brands should set data-driven sustainability goals, use digital tools for sourcing, and establish strong supplier relationships—practices that can help brands reinvent their supply chains and emerge stronger from current challenges.OTHER FINDINGS OF NOTE
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Partner Chhavi Arora and coauthors note that 40 percent of the more than 80 businesses in McKinsey’s CloudSights database have found their cloud transformations to be of limited value—but the right metrics can make a big difference.
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Partners Bengi Korkmaz and Eren Çetinkaya have laid out a scenario that Türkiye could use to reach its goal of achieving net-zero emissions by 2053, which involves spending about 7 percent of GDP on energy, materials, land use, and infrastructure development over the coming decades.
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The Internet of Things is getting more ubiquitous by the day, and the total value created by the technology could reach $12.6 trillion by 2030, according to a new McKinsey Explainer.
WHAT WE’RE READING
A recent edition of Author Talks features Marine Corps veteran and Microsoft executive Nate Boaz sharing life lessons from his new book, Running Toward Fire: Following the Warrior Path (Barbary Tavern Publishing, May 2024). Speaking with McKinsey senior partner Scott Blackburn, Boaz explains that his book is more than just a military memoir—it’s about the idea that when people serve a purpose that transcends the individual, they can achieve amazing things. Boaz explores how his two grandfathers, both World War II veterans, encouraged him to serve something bigger than himself and taught him that great leaders need to balance humility with courage—you can’t have one without the other.
— Edited by Jana Zabkova, senior editor, New York
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Aktiv Software || Odoo Development || Meeting Request
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Introducing McKinsey Publishing Guides
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The gen AI honeymoon can’t last forever
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Small businesses, video games, model makeover of telcos, and more highlights from the week
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Brought to you by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities
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by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 12:20 - 31 May 2024 -
Remote is integrated with Xero, try our salary explorer, find us around the world, and more!
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Cash is no longer Latin Americans’ preferred payment method
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Rapid changes. Latin America has undergone a major shift in payment preferences, and cash is no longer king in terms of how people like to pay for things—although it is still used a lot, partner Jesus Moreno and coauthors explain. According to our surveys of more than 15,000 people in Spanish-speaking Latin America, between 2021 and 2023, debit cards, credit cards, and mobile payments all gained popularity as respondents’ preferred ways to pay. Cash has lost popularity.
—Edited by Jana Zabkova, senior editor, New York
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by "Only McKinsey" <publishing@email.mckinsey.com> - 11:05 - 30 May 2024 -
A microscope on small businesses: The productivity opportunity by country
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A microscope on small businesses: The productivity opportunity by country
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by "McKinsey & Company" <publishing@email.mckinsey.com> - 12:27 - 30 May 2024 -
A Crash Course on REST APIs
A Crash Course on REST APIs
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Application Programming Interfaces (APIs) are the backbone of software communication.
In the acronym API, the word “Application” refers to software that performs a distinct function. An “Interface” is a contract between two applications that defines a set of rules, protocols, and methods for communication. “Programming” makes all of this possible.
APIs have been around for a long time in one form or the other:
In the 60s and 70s, we had subroutines and libraries to share code and functionality between programs.
In the 1980s, Remote Procedure Calls (RPC) emerged, allowing programs running on different computers to execute procedures on each other.
With the widespread adoption of the Internet in the 2000s, web services such as SOAP became widely adopted.
The late 2000s and early 2010s marked the rise of RESTful APIs, which have since become the dominant approach due to their simplicity and scalability.
In recent years, the API-first approach to software development has gained significant traction, driven by the emphasis on building loosely coupled services. REST APIs, in particular, have emerged as the go-to choice for developers worldwide.
In this post, we will explore the world of REST APIs and cover basic to advanced concepts.
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What makes successful chiefs of staff tick?
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Executing the mission. Originally established in the White House, the chief of staff role has become a mainstay in C-suites across the world. The chief of staff’s primary purpose is to see that the CEO’s mission is executed, says McKinsey senior partner Andrew Goodman and coauthors. In the process of serving their principals, chiefs of staff can also pick up skills and knowledge to advance their own careers, the authors note.
—Edited by Jermey Matthews, editor, Boston
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by "Only McKinsey" <publishing@email.mckinsey.com> - 01:49 - 30 May 2024 -
How to foster a healthier, happier, and more productive workplace
Re:think
FRESH TAKES ON BIG IDEAS
ON EMPLOYEE WELL-BEING Good employee mental health starts at the topKana Enomoto
It’s clear from the data: employees are struggling with burnout and mental health. What’s also clear is that organizations want to support their workforces’ mental health, both because it’s the right thing to do and because healthy employees are more productive, fulfilled workers. But for leaders, how exactly to create supportive work environments isn’t always as clear.
At the McKinsey Health Institute (MHI), we define burnout as a phenomenon that happens when your job demands outstrip your resources to perform your job. It’s when you have too many things to do, and not enough tools, energy, or mind space to do them.
Based on a survey of more than 30,000 employees from around the world, we know that about 20 percent of employees in the global workforce are experiencing symptoms of burnout. Burnout can contribute to alienation, distancing, exhaustion, and even cognitive impairment, and it puts people at risk for increased anxiety, depression, and substance use.
A particularly worrying trend is that young people are experiencing poor mental health at a much higher rate than their older counterparts. Of all the generations, Gen Z has consistently shown increasing rates of anxiety and depression. One in four Gen Zers McKinsey surveyed globally in 2022 self-reported poor mental health. That’s three times the rate of baby boomers. We know this not just through self-reporting but also through epidemiology. During the pandemic, there was a 50 percent increase in children showing up at emergency departments with suicidality.
What’s behind this? Social media tends to be an easy scapegoat because increases in mental health problems appear in parallel to its rise. But there are other factors in play, like changes in social connection, family structures, and even our diets.“We see a 23 percent difference in the profitability of businesses whose employee engagement scores are in the top percentile compared with the bottom.”
A recent academic report found that the top driver of mental health pressures in young people in the United States was a lack of meaning, purpose, and direction. Half of young adults in the survey said that their mental health was negatively influenced by not knowing what to do with their lives. This malaise in the workforce of the future is a concern for employers.
Gen Z workers may be more prone to burnout because many are entering the workforce with preexisting high levels of stress. You have a large percentage of future workers showing signs of mental health distress, and a significant portion of current workers experiencing burnout. Employers have a lot to gain by helping provide solutions: our research shows that if employers proactively invest in employee health and well-being, there’s the potential to increase global GDP by up to 12 percent. So what can employers do?
MHI has found that solutions to employee burnout frequently begin at the top. One of the leading causes of burnout is a toxic workplace. That means employees don’t feel supported, respected, or included. Leaders really need to look at the environment they’re creating for their workers. A global pharmaceutical company, for example, created a role modeling program for 250 leaders that aimed to help them understand how they’re communicating, supporting their employees, and creating a culture where people can thrive. Other companies have included specific targeted training in their onboarding programs, including buddy programs pairing new joiners with more experienced colleagues.
It’s also up to leaders to create the vision and mission for organizations that younger workers can believe in. Gen Zers probably aren’t going to stay in a job for 40 years and retire with a gold watch. They believe they are meant to achieve something, to do something big and important, and when they don’t have that, they often feel an emptiness. This is an opportunity for C-suite leaders to support all their employees in feeling that connection to purpose and meaning in the workplace.
Our research indicates that if organizations can help people feel better, they’re also going to work better—and become an employer of choice for young professionals. We see a 23 percent difference in the profitability of businesses whose employee engagement scores are in the top percentile compared with the bottom. These are major bottom-line impacts for employers.Share Kana Enomoto’s insights
ABOUT THIS AUTHOR
Kana Enomoto is a partner and director of brain health at the McKinsey Health Institute. She is based in McKinsey’s Washington, DC, office.
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Mark Patel on carbon removals
To become an industrial segment in its own right, the carbon removals industry needs investment in innovation, technology, and infrastructure. Businesses that generate carbon credits based on removals have a lot to gain—an estimated $200 billion to $950 billion by 2050.
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by "McKinsey Quarterly" <publishing@email.mckinsey.com> - 03:07 - 29 May 2024 -
Rejoignez-moi au Meetup des utilisateurs New Relic : Paris
Bonjour MD,
Rejoignez-nous à notre prochaine rencontre des utilisateurs, le mercredi 19 juin entre 14h00 et 17h30 pour un après-midi gourmand et bien sûr une conversation sur les données à L'Equiria de Paris ! Nous vous avons concocté un programme bien rempli où vous aurez l'occasion d'entendre nos ingénieurs locaux et de brillants clients.
Vous découvrirez les nouveautés de New Relic dont Mobile User Journeys, Session Replay, AI Monitoring et New Relic AI. Et nous vous donnerons également un avant-goût de nos prochains aperçus limités, ainsi que notre feuille de route de ce que nous appelons la troisième phase de l'observabilité, Observability 3.0.
Nous plongerons ensuite dans une série de conférences éclair sur :
- Sidekick - l'enregistrement de scripts synthétiques
- Les toutes dernières nouveautés de CodeStream
- Le paramétrage des cookies dans les contrôles Synthetics
- La présentation des visualisations personnalisées
- Un zoom sur NRQL
Pour terminer l'après-midi, nous remonterons le temps jusqu'en 2013 avec notre version du classique jeu électronique, « Flappy-Birds », animé par New Relic Browser, APM et Logs. Vous pourrez jouer sur votre appareil mobile et les scores s'afficheront en direct sur un tableau de classement. Les meilleurs scores seront récompensés.
Nous terminerons la journée par une session de networking suivie d'une petite restauration et boissons.
Réservez votre place dès maintenant.
N'oubliez pas d'apporter votre ordinateur portable. Nous avons hâte de vous retrouver !
Cordialement,
Harry
Harry Kimpel
Ingénieur principal des relations avec les développeurs - EMEA
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by "Harry Kimpel" <emeamarketing@newrelic.com> - 05:19 - 29 May 2024 -
How cities are faring postpandemic
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Empty desks. After the COVID-19 pandemic, cities with a glut of office space could see continued declines in the commercial-real-estate market as companies reduce their footprints or relocate to lower-cost areas. But cities can avoid an “urban doom loop” because property tax rates are variable, Harvard University economist Ed Glaeser says in an episode of the McKinsey Global Institute’s podcast Forward Thinking, cohosted by McKinsey partner Michael Chui.
—Edited by Jana Zabkova, senior editor, New York
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by "Only McKinsey" <publishing@email.mckinsey.com> - 01:24 - 29 May 2024 -
Tire Pressure Monitoring System - Keep Your Fleet Safe on the Road.
Tire Pressure Monitoring System - Keep Your Fleet Safe on the Road.
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by "Sunny Thakur" <sunny.thakur@uffizio.com> - 08:00 - 28 May 2024
