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by "Budhaditya Bhattacharya" <communities@tyk.io> - 08:02 - 26 Jan 2024

Fixing the health equity gap could be worth $1 trillion

The Shortlist

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FOUR OF OUR BEST NEW IDEAS FOR THE C-SUITE

Curated by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities

Last week at Davos, thousands of leaders converged on the tiny Swiss town to kick around some big ideas. We were there to share our latest research, developed in partnership with the World Economic Forum (WEF), and to find out what’s on CEOs’ minds. In this edition of the CEO Shortlist, we look closely at four of the most critical issues for leaders at Davos—and for the year ahead. We hope you enjoy the read.

—Liz and Homayoun

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What’s new

The numbers are stark: over the course of their lifetimes, women are expected to spend 25 percent more time in poor health than men are. Closing this gap is primarily an issue of health equity and inclusivity. But better health equity would also have a positive economic outcome—potentially to the tune of $1 trillion annually by 2040.

For more on how better health is correlated with economic prosperity, read “Closing the women’s health gap: A $1 trillion opportunity to improve lives and economies,” the new McKinsey Health Institute report, by Kweilin Ellingrud, Lucy Pérez, Anouk Petersen, and Valentina Sartori.

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What’s now

End of an era? The world is becoming more competitive and confrontational, as wars rage, supply chains unravel, and new rivalries emerge in business and politics. Despite these ominous developments, there are hints that global cooperation is not just continuing but even expanding.

Get your read on the global climate with The Global Cooperation Barometer 2024, the new WEF report written in collaboration with McKinsey, by Oliver Bevan, Daniel Pacthod, Olivia White, and their coauthors.

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What’s next

A blueprint for a better world. The Resilience Consortium —which WEF launched in 2022 in partnership with McKinsey—has laid out the framework for a new kind of resilience muscle, one that both public and private sector leaders can use to make sure their organizations are ready for a tumultuous future. In a new report, we profile nine organizations that are turning the framework into action.

Get real with Building a resilient tomorrow: Concrete actions for global leaders, by Bob Sternfels, David Frances, María del Mar Martínez, Daniel Pacthod, Thomas Poppensieker, and their coauthors.

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What’s needed

It’s time to raise the bar on poverty. There was some celebration last week in Davos about the significant progress made toward eradicating extreme poverty. But leaders were also thinking critically about the work left to be done. The McKinsey Global Institute proposes centering the concept of empowerment—rather than poverty—to help ensure the focus stays on quality of life.

For more on what empowerment means—for people and the planet—check out “From poverty to empowerment: Raising the bar for sustainable and inclusive growth,” by Anu Madgavkar, Sven Smit, Mekala Krishnan, Kevin Russell, Rebecca J. Anderson, Lola Woetzel, Kweilin Ellingrud, and Tracy Francis.

We hope you find these ideas inspiring and helpful. See you next time with four more McKinsey ideas for the CEO and others in the C-suite.

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by "McKinsey CEO Shortlist" <publishing@email.mckinsey.com> - 03:42 - 26 Jan 2024

What is the board’s role in managing generative AI?

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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

Keeping watch over AI

In the news

•

AI ambitions. As noted in Harvard Business Review, business leaders have “a once-in-a-career opportunity” to help their organizations devise a strategy for using AI while also factoring in the technology’s risks. In doing so, they’ll face high expectations from their boards, customers, employees, investors, and regulators. In 2024, boards of directors will keep pressing executives to formulate an “AI ambition” for how they intend to use the technology to enhance productivity and augment creativity. [HBR]

•

Risks and rewards. AI experts are imploring governments to enforce standards for AI as policy makers determine where the lines should be drawn, reports Reuters. Although leaders could use the technology to benefit humanity—for instance, tackling cancer and climate change—others warn that risks are significant. Executives can call for greater transparency from those developing AI models, an AI ethics researcher said. [Reuters]

Company leaders should consider appointing a single senior executive to take responsibility for the oversight and control of all generative AI activities.

On McKinsey.com

•

The board’s role. Company boards are responsible for how generative AI (gen AI) is used at the companies they oversee. However, many board members are still unsure how to support executives grappling with the rapid changes unleashed by this nascent technology, explains McKinsey senior partner Alexander Sukharevsky , the global leader of QuantumBlack, AI by McKinsey. By asking management teams the right questions, boards can help organizations create value from gen AI while managing its risks.

•

Probing questions. Specifically, boards should ask management four questions, starting with, “How will generative AI affect our industry and company in the short and longer term?” Our research suggests that the first wave of applications will be in software engineering, marketing and sales, customer service, and product development. Explore the four critical questions that boards should be asking executives about gen AI—and one that boards should be asking themselves.

Ask the right questions about AI

— Edited by Jermey Matthews, editor, Boston

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by "Only McKinsey" <publishing@email.mckinsey.com> - 12:13 - 26 Jan 2024

Private markets, debunking myths about women in the workplace, innovation growth, and more reads for your downtime

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CURATED PICKS FOR YOUR DOWNTIME, FROM OUR EDITORS

Brought to you by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities

We’ve made it through another workweek. Find some time this weekend to relax and catch up on this week’s highlights on private markets in 2024, debunking myths about women in the workplace, innovation growers, and more.

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Fredrik Dahlqvist, Alastair Green, David Quigley, and coauthors lay out ten considerations for those looking to get a head start on the private markets in 2024.

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QUOTE OF THE DAY

“When we’re closing gaps, when we’re trying to address inequities, mistrust is an enemy. Investing in communities, I have found, is an antidote to the plague of mistrust in public health.”

—Raj Panjabi, MD, former senior director for global health security and biodefense at the White House National Security Council, on health equity in “‘We need to invest in health workers between major pandemics—not just when we have a pandemic’”

chart of the day

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by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 11:47 - 25 Jan 2024

Inquiry Regarding Opportunities to Learn and Grow in Odoo ERP as a Business Analyst

Dear Odoo,

I hope this letter finds you well. I am reaching out to express my strong interest in learning and working with Odoo, and to explore potential opportunities within your esteemed organization. As a dedicated business analyst with a passion for growth and innovation, I am eager to expand my skill set by delving into the world of Odoo ERP systems.

Having amassed experience as a business analyst, I have honed my abilities to analyze processes and implement strategic solutions that drive efficiency and productivity. Now, I am eager to channel my expertise towards mastering Odoo and leveraging its capabilities to propel businesses forward.

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My ultimate ambition is to become an Odoo Gold partner, and I am prepared to invest time, efforts to realize this goal. I am actively seeking sponsorships to facilitate the development of an Odoo team within my organization and pave the way for future success.

I am particularly interested in pursuing a remote position as an Odoo ERP Business System Analyst, as it aligns with my professional objectives and allows for flexibility in managing my commitments. I am confident that my blend of experience, dedication, and enthusiasm makes me a valuable asset to any team working with Odoo.

I would greatly appreciate the opportunity to discuss how my skills and aspirations can contribute to the objectives of your organization. I am available for a virtual meeting at your earliest convenience to delve into further details and explore potential avenues of collaboration.

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by "saqlain abbas" <saqlainabbas518@gmail.com> - 02:15 - 25 Jan 2024

Forward Thinking on Europe’s existential crisis with Marco Buti

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Forward Thinking on Europe’s existential crisis with Marco Buti

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by "McKinsey Global Institute" <publishing@email.mckinsey.com> - 01:41 - 25 Jan 2024

Women spend more of their lives in poor health than men. How can we improve that?

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As only McKinsey can

Brought to you by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities

Women’s health (and global wealth)

In the news

•

No improvement. As reported in The Hill, the state of women’s health has not improved since 2020, when COVID-19 was spreading rapidly across the world, according to a global survey of roughly 150,000 women and men. Some measures of health show a decline in women’s well-being, the report noted. For instance, the percentage of women who described experiencing physical pain increased to 34% in 2022 from 30% in 2020. [The Hill]

•

Wrongly diagnosed. KFF Health News states that about 25% of US hospital patients who are moved to intensive care units or die are misdiagnosed, per a recent study published in JAMA Internal Medicine. A different study found that about 795,000 people each year are permanently disabled or die due to errors in diagnosis. Medical misdiagnosis disproportionately affects women and minorities; these groups are up to 30% more likely than White men to be incorrectly diagnosed, according to a Johns Hopkins School of Medicine professor. [KFF Health News]

Women are expected to spend 25% more time in poor health than men.

On McKinsey.com

•

In sickness and in health. In 1800, people could expect to live an average of 30 years. The rise in life expectancy since then has been a big success story. Even so, women spend more of their lives in poor health and with degrees of disability than men, which reduces their earning potential, McKinsey Global Institute (MGI) director and senior partner Kweilin Ellingrud and coauthors explain. Improving women’s health could boost the global economy by at least $1 trillion annually by 2040, the McKinsey Health Institute (MHI) finds .

•

Improving lives. The women’s health gap equates to 75 million years of life lost due to poor health or early death per year. More than half of the gap occurs during women’s working years, which often affects their ability to support themselves and their families. Advancing women’s health could generate the equivalent effect of 137 million women having access to full-time jobs by 2040. Read the report, Closing the women’s health gap: A $1 trillion opportunity to improve lives and economies, to learn how taking action in five areas could improve women’s lives.

See our women’s health research

— Edited by Belinda Yu, editor, Atlanta

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by "Only McKinsey" <publishing@email.mckinsey.com> - 12:23 - 25 Jan 2024

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by "Remote" <hello@remote-comms.com> - 11:15 - 25 Jan 2024

Mastering Design Principles - SOLID

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Mastering Design Principles - SOLID

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In the fast-paced world of software development, writing robust, maintainable, and scalable code is critically important. One way to achieve this is by following a set of fundamental design principles known as the SOLID principles. These principles provide a clear framework for crafting software that is easy to understand, extend, and maintain.

In this newsletter, we will explore the SOLID principles, examining each component in detail. We will review practical implementation guidance and best practices for applying them.

Now, let's begin our exploration with a brief overview of the SOLID principles first.

A Brief Overview

The SOLID principles are a set of five fundamental design principles that were introduced by Robert C. Martin to guide software developers in creating maintainable, scalable, and flexible software systems. These principles, when followed, contribute to the development of software that is easier to understand, modify, and extend over time.

The SOLID acronym stands for:

Importance of Design Principles in Software Development

Design principles, such as the SOLID principles, play a pivotal role in the software development process for several reasons:

Maintainability: Following sound design principles makes code more maintainable. When code is well-structured and adheres to these principles, it becomes easier to identify and fix issues, add new features, and make improvements without causing unintended consequences.
Scalability: Well-designed software is scalable. It can accommodate changes and growth in requirements without requiring extensive rework or becoming increasingly complex.
Code Reusability: Adhering to design principles often leads to code that is more reusable. Reusable components save time and effort in development and testing.
Collaboration: Design principles provide a common framework for developers to work within. This common understanding promotes collaboration and reduces misunderstandings among team members.
Reduced Bugs and Pitfalls: Following design principles helps to identify and mitigate common programming pitfalls and design flaws. This results in fewer bugs and more robust software.
Future-Proofing: Well-designed software can adapt to changing requirements and technologies. It's an investment in the long-term viability of the software product.

Now, let's deep dive into each component of the SOLID principles.

Single Responsibility Principle (SRP)

The “S” in the SOLID principles stands for the Single Responsibility Principle (SRP), which states that a class should have only one reason to change or, in other words, it should have a single, well-defined responsibility or job within a software system.

Illustrating a Violation of SRP

Let's take a look at a Java code example below that clearly violates the Single Responsibility Principle (SRP) principle:

public class Employee {
    private String name;
    private double salary;

    public void calculateSalary() {
        // definition
    }
    public void generatePayrollReport() {
        // definition
    }
}

In the above example, the Employee class has two responsibilities: calculating an employee's salary and generating a payroll report. This violates the SRP because it has more than one reason to change.

Fixing the Violation (SRP)

To address the violation of the Single Responsibility Principle (SRP) in our previous example, let's refactor the code to separate concerns and ensure that each class has a single, well-defined responsibility. We'll create distinct classes for calculating an employee's salary and generating a payroll report:

public class Employee {
    private String name;
    private double salary;

    public void calculateSalary() {
        // definition
    }
}

public class PayrollReportGenerator {
    public void generatePayrollReport(Employee employee) {
        // definition
    }
}

In the refactored solution, the responsibilities of calculating the salary and generating a payroll report have been separated into two distinct classes (Employee and PayrollReportGenerator), each with a single responsibility. This adheres to the SRP.

Let’s take a look at the visual representation of the classes and implementation of the single responsibility principle (SRP).

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by "ByteByteGo" <bytebytego@substack.com> - 10:37 - 25 Jan 2024

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The innovation imperative

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by "McKinsey & Company" <publishing@email.mckinsey.com> - 06:24 - 25 Jan 2024

It’s official: New Relic is a 2023 Gartner® Peer Insights™ Customers’ Choice

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January 2024

New Relic a 2023 Gartner® Peer Insights™ Customers’ Choice for APM and o11y

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Maximizing business growth through enhanced user experience

Navigating the digital landscape is akin to exploring a vast ocean: to successfully reach the desired destination, every element of the journey must align perfectly. The end-user experience is the heartbeat of digital interaction and determines how customers perceive and engage with your brand. In this blog, you'll learn why improving the end-user experience is essential for business growth.

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Embracing change in real estate with generative AI

Re:think

FRESH TAKES ON BIG IDEAS

ON GEN AI IN REAL ESTATE
Why generative AI has put the real estate industry on the cusp of change

Vaibhav Gujral

Real estate has been slower than other industries to adopt analytics for decision making and day-to-day operations. Historically, less data has existed and been accessed in real estate compared with other industries. After all, it has traditionally been a business about buildings and their physical use, with less of a focus on the adoption of digital tools.

But generative AI (gen AI) has the potential to change the real estate industry paradigm for several reasons. First, actors in the industry are better prepared to adopt this wave of technological advancement than they were with previous advancements. Today, there is vastly more technology embedded in every aspect of a building, from building management systems to elevators to apps that interface with staff and building users. Modern skyscrapers have the potential to generate millions of data points every day that can be aggregated, processed, and analyzed for superior decision making. Furthermore, real estate organizations have built infrastructure to help capture and harness the potential of this data by making investments in data and technology over the past five to seven years.

Second, the industry used to face a big barrier when it came to experimenting and using AI models. To even get to a proof of concept, companies had to invest heavily in data, infrastructure, and talent. But gen AI has democratized access, as tech firms and venture capital–backed start-ups have made big investments in large language models that can be tailored and adapted to various contexts. That has greatly reduced the cost and time it takes to deploy gen AI models, enabling brokerage firms, title companies, lenders, and real estate investors and operators to experiment at an unprecedented pace.

This technology is coming to fruition at a crucial time for the real estate industry as companies think about what the market truly demands and focus on assets’ operating performance. Using the latest analysis from the McKinsey Global Institute, we believe that gen AI could generate $110 billion to $180 billion or more in value for the real estate industry. Most aspects of the real estate value chain should have applications for gen AI, starting with how buildings are designed and constructed. That doesn’t mean that gen AI will come up with something a human couldn’t have. But it can run many iterations, customizations, and combinations that may be cost or time prohibitive for an architectural or engineering firm to perform. Gen AI has the potential to make it easier to personalize buildings, tailor spaces to end user needs, and incorporate learning from existing spaces into new ones.

Marketing content for new listings can be largely automated using gen AI, and the content can be hyper-personalized for each audience. A home could be virtually staged with modern, minimalist design, for instance, and a listing description could be customized to match the preferences of a specific member of the target buyer audience. Gen AI could also automate communications between building users and staff. The technology, for example, could be used to help tackle maintenance requests or rent payment questions in an entirely automated way, freeing up building staff to focus on more complex tasks that require human intervention.

“We believe that gen AI could generate $110 billion to $180 billion or more in value for the real estate industry.”

To get started, real estate companies will need to accelerate their data and analytics transformations. Step one is creating advantage with proprietary data through aggregation and normalization of relevant data sets from both the organization’s own systems and third-party service providers. This data should be a means to an end, enabling specific decisions and use cases that can deliver tangible business value.

The next step is thinking differently about talent and capabilities. Just as real estate companies compete for the best design, construction, investing, and asset and property management talent, so they will want to think about data scientists and technologists as critical to their competitive edge.

Step three is reconfiguring analog business processes to data- and analytics-informed processes. Changes in business workflow will be required to understand when to take inputs from a gen AI model versus when there should be human oversight. The key is to start experimenting early and to build the internal skills and capacity needed to benefit from gen AI.

Are the rewards worth the effort? I think that question is going to become irrelevant in the next five to ten years, as many processes and workflows across the industry are likely to be either greatly enhanced or automated by gen AI. The more relevant question is, “How can real estate organizations not just upgrade but completely reimagine what they do?” What would you do differently, for example, if a significant amount of middle-office and back-office activities of your real estate company could be automated? How would you reallocate that investment into creating superior customer experiences and more dynamic, responsive, and environmentally conscious buildings? There is no question that the technology will improve exponentially over the coming years. Competitive advantage will be captured by those who have learned how to harness gen AI’s power in every aspect of what they do—that includes embracing a future where long-sacred operating models and processes can be reimagined.

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Vaibhav Gujral is a senior partner in McKinsey’s New York office.

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by "McKinsey Quarterly" <publishing@email.mckinsey.com> - 02:35 - 24 Jan 2024

Leaving the CEO role for new pastures is tough. Here’s how to get it right.

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A smoother CEO succession

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Expected exits. Executive search experts predict a surge in CEO departures at US companies after a relative lull over the past few years, as many top leaders have hung on to their positions during and after the COVID-19 pandemic. Chief executives were hoping to step down during a tranquil time and are exhausted from hitting a recent period of economic instability. The top job also got tougher during the pandemic as CEOs added operational responsibilities, and that extra work has taken a toll, experts say. [Fortune]

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CFO-to-CEO springboard. More CFOs than usual left their companies last year in the United States and Europe, particularly in the United Kingdom, according to executive search firms. Some of the turnover came as CFOs were elevated to the CEO role. In other cases, CFOs have been pushed out as their companies underperformed. [FT]

“It’s important to think about succession not just as replacing yourself but as leadership development for your team.”

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Start early. Succession planning is crucial for CEOs, but it can get short shrift as leaders get caught up in the day-to-day grind, McKinsey senior partner Kurt Strovink shares in a recent episode of the podcast series Inside the Strategy Room. CEOs should think about who will succeed them from day one of their tenure, not because they’re itching to leave, but because it’s helpful to develop at least three potential internal candidates who can fill the CEO’s shoes, partner Blair Epstein says.

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Last 100 days. Departing CEOs should consider making a 100-day plan for the end of their tenure, allowing for a deft handover of both work and relationships to the new boss. Some CEOs choose to take a gap year or half year after stepping down, helping them “fend off the offers that they start getting right away and to double down on health, sleep, and relationships,” says senior partner Carolyn Dewar, coauthor of the bestselling book CEO Excellence. Learn what leading CEOs do when handing over the reins.

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You’re outgrowing your peers—but are you out-innovating them as well?

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Banks can strengthen their revenues by serving small-business clients better

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The backbone of the US economy

In the news

•

Slightly more optimistic. US small-business sentiment rose by 1.3 points in December from the previous month, according to an index from the National Federation of Independent Business. Although the reading of 91.9 was the strongest since this past summer, it marked the 24th month in a row that the index was below its 50-year average of 98. Labor costs and inflation worries are weighing on business owners’ confidence. [Inc.]

•

Feeling the squeeze. High interest rates are ratcheting up pressure on US small businesses. According to a recent survey by a small-business networking group, 58% of respondents said that high interest rates are harming their businesses, an increase of 13 percentage points from June 2023. Meanwhile, 24% said repaying loans or getting new ones has gotten tougher. Small businesses tend to be hit harder than larger companies by high interest rates because they typically find it more difficult to pass on higher costs to customers. [Reuters]

We estimate that small-business banking represents about $150 billion in annual revenue for the US banking industry across all products.

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Cornerstone of stability. Banks are striving to solidify their positions as rising interest rates and industry turbulence prompt depositors to move their money elsewhere. Serving US small and medium-size enterprises (SMEs)—and doing so in an exemplary way—is an important opportunity for banks to increase deposits, bringing in additional revenues during a challenging time, according to McKinsey senior partner Marukel Nunez Maxwell and colleagues.

•

Unmet needs. To better understand SMEs’ financial needs, McKinsey surveyed more than 1,200 US businesses with up to $50 million in annual revenue. A key takeaway: small businesses would welcome the convenience of having a one-stop shop for all kinds of products and services related to banking, but they generally aren’t getting this from their primary financial institutions. Read our blog Banking & Securities matters to explore five ways for banks to do more for their SME customers.

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ON GEN AI IN REAL ESTATEWhy generative AI has put the real estate industry on the cusp of change

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