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Are you taking enough risks? (You’re probably not.)
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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Increasing your appetite for risk
Amid today’s ever-changing volatility, it’s all companies can do just to stay grounded. From rising interest rates to supply chain constraints to concerns of a looming downturn, what possible room could there be for companies to take any investment risks?
Over a decade ago, businesses, still reeling from the lasting effects of the financial crisis, found themselves in a similar situation. And while conventional wisdom (including our own) typically warns against overconfidence, our authors at the time wrote that a referendum on risk aversion was in order. To wit, organizations that are unaware of the biases that can lead managers to avoid uncertainty, even when the potential earnings far outweigh the losses, face an even greater risk: stifling growth and innovation. Companies need both now more than ever.
Midlevel managers making routine investment decisions are uniquely positioned to shift how their companies approach risk, and easing the burden of risk aversion can be a strategic advantage. For more on how businesses can identify risk aversion and root out the biases that can stymie potential investment projects, read McKinsey partner Tim Koller’s 2012 classic “Overcoming a bias against risk.”Take more risks 
Eileen Kelly Rinaudo, Tim Koller, and Derek Schatz, “Bias Busters: A better way to brainstorm”
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by "McKinsey & Company" <publishing@email.mckinsey.com> - 11:21 - 27 May 2023 -
Competing in the age of digital, leading with humanity, and defending your right to cognitive liberty
Readers & Leaders
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THIS MONTH'S PAGE-TURNERS ON BUSINESS AND BEYOND
What does it really take to make a digital transformation work? In this edition of Readers & Leaders, McKinsey senior partners Eric Lamarre, Kate Smaje, and Rodney Zemmel—authors of the forthcoming book Rewired: The McKinsey Guide to Outcompeting in the Age of Digital and AI—discuss how companies can build and flex their rewiring muscle by leveraging the power of AI, enhancing customer experience, and driving profitability through an ever-evolving process of transformation. In our other featured interviews, retired United Airlines chairman and CEO Oscar Munoz tells his story of personal survival and corporate revival, Duke professor Nita Farahany examines the promise and perils of neurotechnology developments, and University of Oxford professor Paulo Savaget shares why unconventional approaches to problem-solving may bring the most positive results. Itching for more great reads? Check out McKinsey on Books for the latest, and don’t miss this month’s top bestselling business books, prepared exclusively for McKinsey by Circana.
What are you reading this summer? If you can’t get away from it all in a literal sense, you can always escape in a good book—and we want to know which one. Let us know what’s on your bookshelf, and we’ll let you know what’s on ours. Stay tuned for our annual reading list, coming this summer.LOOKING AHEAD
Rewired: The McKinsey Guide to Outcompeting in the Age of Digital and AI
Business leaders will be digitally transforming their companies for the rest of their careers. From McKinsey senior partners Eric Lamarre, Kate Smaje, and Rodney W. Zemmel, Rewired is the reference manual they need for the journey.
BUSINESS BESTSELLERS TOP
8
BUSINESS OVERALL
BUSINESS HARDCOVER
DECISION MAKING
ECONOMICS
ORGANIZATIONAL BEHAVIOR
WORKPLACE CULTURE
DIVERSITY & INCLUSION
SUSTAINABILITY
BOOKMARK THIS
If you’d like to propose a book or author for #McKAuthorTalks, please email us at Author_Talks@McKinsey.com. Due to the high volume of requests, we will respond only to those being considered.
— Edited by Eleni Kostopoulos, a managing editor in McKinsey’s New York office
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by "McKinsey Readers & Leaders" <publishing@email.mckinsey.com> - 08:35 - 27 May 2023 -
The future of wealth and growth, Rewired, digital twins, and more reads for your downtime
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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
Over the past two decades, $160 trillion in “paper wealth” was created but economic output did not keep pace, and inequality rose. What does the future hold? McKinsey’s Jan Mischke, Olivia White, Eckart Windhagen, Jonathan Woetzel, Michael Birshan, Sven Smit, Arvind Govindarajan, and Szabolcs Kemeny explore.
4 scenarios TECH FOR EXECS
Seeing double: what digital twins can do for your organization.
Welcome to Tech for Execs: quick primers on key technology terms to get leaders up to speed.
What are digital twins? The digital twin has become a buzzword, but the core concept is simple: a virtual replica of a real-life asset’s entire lifecycle. This could be a person, object, system, process, or business. You could create a digital twin of a new car model or your entire supply chain.
How do they work? A digital twin is designed to act like a real-world asset, so you can simulate different scenarios and gain insights from how it responds. Like in real life, not all twins are identical—the better the digital twin, the more you can learn. Many twins have an AI component, while the most mature ones can be updated in real-time.
How can they help organizations? A digital twin can be used in many areas of an organization, from design to manufacturing to sales. They’re major time savers and revenue drivers, helping businesses enhance predictability, enable automation, and track performance.
How do I get started? You’ll need a robust data infrastructure (from sources to quality control) to start with so you can keep your digital twins updated. Data engineers and data scientists can help with this. A clearly defined business case is essential, which involves considering where digital twins fit in your broader digital strategy and the use cases you want to leverage them for. Here’s a checklist to help you create a blueprint for success.QUOTE OF THE DAY
chart of the day
Ready to unwind?
—Edited by Joyce Yoo, editor, New York
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Copyright © 2023 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007
by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 06:22 - 26 May 2023 -
ใกล้หมดเขต! เชิญชาวจ.ลำพูนและพื้นที่ใกล้เคียง ร่วมงานเทคโนโลยีอุตสาหกรรม
Schneider Electric
Innovation Day:
Industrial Solutions, Lamphun 2023ชไนเดอร์ อิเล็คทริค ร่วมกับ กรมส่งเสริมอุตสาหกรรมและการนิคมอุตสาหกรรมแห่งประเทศไทย จัดงานเทคโนโลยีอุตสาหกรรม สำหรับกลุ่มโรงงาน เพิ่มประสิทธิภาพด้านการปฏิบัติการ ยกระดับโรงงาน ก้าวทันโลกดิจิทัล
ไฮไลท์สำคัญ- เร่งเครื่องยกระดับอุตสาหกรรมไทยไปสู่ยุค IIoT จากกรมส่งเสริมอุตสาหกรรมฯ
- กลยุทธ์การพัฒนาโครงสร้างพื้นฐานสำคัญในอุตสาหกรรม เพิ่มความปลอดภัย ความน่าเชื่อถือ ประสิทธิภาพ ความยั่งยืน
- ยกระดับภาคการผลิตในอุตสาหกรรม 4.0 ด้วยเทคโนโลยีอันสมัย
- การบริการด้านการจัดระบบไฟฟ้าเชิงรุก วิเคราะห์ คาดการณ์ ลดดาวน์ไทม์ ยุคดิจิทัล
วันและเวลาวันที่ 1 มิ.ย. 2566
เวลา 8:30-16:00 น.
สถานที่จัดกิจกรรมห้องประชุมแกรนด์ ปา โรงแรมแกรนด์ ปา แอนด์ รีสอร์ท ลำพูน เชียงใหม่
© 2023 Schneider Electric. All Rights Reserved. Schneider Electric is a trademark and the property of Schneider Electric SE, its subsidiaries and affiliated companies. All other trademarks are the property of their respective owners.
by "Schneider Electric" <reply@se.com> - 03:01 - 26 May 2023 -
Nursing turnover is an ongoing challenge. How are hospitals confronting staff shortages?
On Point
Brought to you by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities
• Extending a lifeline to nurses. With the stress of the COVID-19 pandemic pushing many nurses to leave the profession, turnover is still a major challenge for many healthcare organizations. Roughly three out of ten RNs in the US might leave their current roles of caring for patients, a survey reported by McKinsey senior partner Gretchen Berlin and colleagues has found. Healthcare systems are working to address staffing shortages and burnout—for example, by creating a quiet space for nurses to take breaks, building more flexibility into shift scheduling, and enabling nurses to see patients virtually.
— Edited by Gwyn Herbein, editor, Atlanta
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by "McKinsey On Point" <publishing@email.mckinsey.com> - 10:11 - 25 May 2023 -
The future of wealth and growth hangs in the balance
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by "McKinsey Global Institute" <publishing@email.mckinsey.com> - 02:27 - 25 May 2023 -
Join the Tray Megacast for an in-depth look at Merlin AI
Hi Md Abul,
You’re invited to the premiere event, the Tray Megacast, where we will showcase Tray Merlin AI – our groundbreaking natural language automation capability for business users. Merlin is the first iPaaS with generative AI that puts the power of automation in the hands of anyone in the enterprise - front-line staff, managers, executives, and business technologists. We’re transforming how businesses approach automation, and we want you to be part of this trailblazing event.
Join us on June 14th to see our game-changing AI-powered natural language automation in action and learn how it will reshape the iPaaS landscape by dramatically accelerating automation outcomes for the enterprise.
© Tray.io Inc. 25 Stillman Street, San Francisco, CA 94107, United States
Connectors | Blog | Careers
by "The Tray.io Team" <team@tray.io> - 12:02 - 25 May 2023 -
Embracing Safe Driving Behaviors for a Better Tomorrow
Embracing Safe Driving Behaviors for a Better Tomorrow
A critical aspect of fleet management that can impact everything from safety to costs and productivity.
Find Out What Makes Our Software Stand Out from the Crowd
Driver Performance
Refers to evaluating a driver's skills, behaviors, and effectiveness in carrying out their duties. Used to allocate drivers based on performance, ensuring that the most effective drivers are assigned to the most important routes or tasks.
Driver scoring
Scoring provides a way for fleet managers to objectively assess driver performance and identify areas for improvement. Fleet managers can define their own scoring parameters to tailor assessments to their specific goals and priorities.
Alerts and Reports
- Violation Report
- Driver Rating
- Speeding Alerts
- Harsh Braking Alerts
Provides instances of unsafe behavior by drivers. It includes violations such as speeding, harsh braking, etc.
A report that provides an assessment of individual driver performance based on predefined criteria.
When a driver exceeds the predefined speed limit.
When a driver applies brakes abruptly or forcefully.
Empower your clients with driving behavior and help them save on costs
Uffizio Technologies Pvt. Ltd., 4th Floor, Metropolis, Opp. S.T Workshop, Valsad, Gujarat, 396001, India
by "Sunny Thakur" <sunny.thakur@uffizio.com> - 12:30 - 25 May 2023 -
K–12 schools in the US must spend stimulus funds soon. Can districts help students succeed?
On Point
Brought to you by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities
• Stimulus spending. With a September 2024 deadline approaching, K–12 schools in the US still have money to spend from the $190 billion Elementary and Secondary School Emergency Relief Fund. A survey of 260 district decision makers reveals the administrative challenges schools experience when working to disburse the funds and manage districts’ shifting priorities, say McKinsey partner Jake Bryant and colleagues. One urban district has invested $45 million in professional development for staff. Others are focusing on overcoming ongoing staffing shortages, supporting student mental health, and addressing unfinished learning.
— Edited by Gwyn Herbein, editor, Atlanta
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by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:15 - 25 May 2023 -
Sumo Logic named a Challenger in the Gartner APM and Observability MQ
Sumo Logic
A single source of truth for analytics is the single biggest reason to switch to Sumo Logic.
Sumo Logic is absolutely thrilled (and honored) to be named a Challenger in the 2022 Gartner Magic Quadrant for APM and Observability. In a market estimated to grow to $8.9B by 2026, we are poised to maintain leadership in this field moving forward.
Read the report to learn why Sumo Logic was named a Challenger, about the APM and observability evaluation criteria, and the strengths of Sumo Logic.
While we’re on the subject, Sumo Logic was also named a Visionary in the 2022 Gartner Magic Quadrant for Security Information and Event Management (SIEM). Only five companies have earned a place on both of these prestigious rankings. To modernize your DevOps and SecOps, choose Sumo Logic.
Learn more about Sumo Logic. The infinite power of log analytics. Start a conversation to discover if Sumo Logic is a good fit for your team.
Sumo Logic, Level 9, 64 York Street, Sydney, NSW 2000
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by "Sumo Logic" <marketing-info@sumologic.com> - 09:00 - 24 May 2023 -
How to revive US productivity
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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
What does it mean to be productive? In economics, productivity is the output per worker for each hour they work, such as the number of lattes a barista makes in an hour. More broadly, it can also be viewed as “doing more with less,” according to McKinsey senior partner Olivia White. In a new episode of The McKinsey Podcast, she and partner Charles Atkins discuss McKinsey Global Institute’s recent report, Rekindling US productivity for a new era, and explore why boosting US productivity is crucial to confronting current workforce shortages, debt, inflation, and the energy transition. Tune in to see which US states, cities, and industries are the most productive, and what companies can do to lead the US to more prosperity.
Quote of the day
Chart of the day
ALSO NEW
— Edited by Joyce Yoo, editor, New York
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by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 06:28 - 24 May 2023 -
A fork in the road to net zero
Re:think
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ON NET ZERO
Will the US energy transition be orderly?
Humayun TaiThe United States is at an inflection point that could determine whether it meets its commitment to reach net-zero greenhouse-gas emissions by 2050. Fulfilling that ambition would mean achieving a more orderly energy transition in which emissions reductions rapidly put the country on a path closer to a 1.5°C global-warming scenario while balancing affordability, reliability, resilience, and security. This transformation would require new policies, market mechanisms, business models, and technologies to be developed and deployed at scale. There is considerable debate about whether it will be possible to do so by the target date.
An orderly transition would follow a natural sequencing. You would start with the decarbonization of the power sector because you need clean power to support the other sectors. Then you would take on transportation—electric vehicles (EVs) or long-haul transport—because much of the technology behind EVs is already becoming economically viable, and consumers increasingly want these vehicles.
After that, however, you get into the tougher segments, including the fossil fuels needed to heat buildings—typically natural gas in many parts of the United States. Those emissions are hard to abate because alternatives are further from economic viability. Another tougher segment is the production of cement, steel, and aluminum—energy-intensive industries that typically rely on fossil fuels to produce electricity.
Some business owners, typically in thin-margin, commoditized sectors, would have to be persuaded to make changes. Many owners may be unwilling to switch to different, more expensive technology, even if it’s carbon abating.
Then you get into sectors such as agriculture. From a technology perspective, you would push renewable-energy sources, such as wind or solar. But for that to work at scale, you would need to ensure that there are enough stable backup power resources—typically gas-fired plants—to support the variability of renewables. You would need to expand the power transmission network to accommodate more green energy. And, of course, coordinating county, city, and statewide rules for all 50 states, in addition to federal mandates, is difficult.
What’s more, all of this would have to be achieved while attending to the societal effects. You need to reduce carbon emissions in an affordable way while also paying attention to economic justice. This means that as lower-income consumers gain access to the new technologies, you are managing short-term supply chain fluctuations and maintaining energy security.“This decade will be critical: the technologies needed to decarbonize require immediate investment so that they can have a cumulative effect—and can be depreciated.”
Ideally, that’s what an orderly energy transition would look like. But some near-term challenges—including the war in Ukraine, high fuel costs, oil and gas supply chain disruptions, and elevated inflation—seem poised to lead the United States toward a more disorderly energy transition in which the country either fails to meet emissions goals or delays action and then rushes to catch up at considerably greater cost.
This has sparked what I see as a healthy debate about whether the country will achieve net-zero emissions by 2050. The general view is that making it happen would be very difficult. This decade will be critical: the technologies needed to decarbonize the power, energy, and other sectors require immediate investment so that they can have a cumulative effect—and can be depreciated—over the next 20 or 30 years.
On the flip side, some people say that it’s myopic to view the transition only in terms of the challenges, citing the power of innovation, as well as declining costs. Indeed, technology innovation could help. The clean-tech industry, for example, is making improvements in the quality and efficiency of new technologies faster than forecasted. Policy resources, such as the US Department of Energy’s “Energy Earthshots,” are helping to make these learning curves even faster.
Optimists also point out that consumers are increasingly willing to pay a green premium and that carbon offsets, carbon compliance, and voluntary markets are developing. They argue that people often underestimate society’s ability to innovate quickly. And with the 2022 Inflation Reduction Act and other recent measures, the United States seems to be indicating that climate technology will be a pillar of the economy. All of this is evidence that the country could make huge progress toward its 2050 goals.
But even if you believe that unlocking innovation will indeed spur progress over the next 15 years, the United States could still be looking at a somewhat disorderly transition.
What I find encouraging is that people are less likely than they were until only quite recently to say that the transition shouldn’t happen or that a push for a 2050 deadline is a waste of resources. There has been a change in mindset, particularly in the United States. Everybody I talk to and work with, such as clients and colleagues, believes in the need to head toward a net-zero world.
So the debate is really about how fast to move. Are people willing to pay a high cost for a rapid energy transition, or are they prepared to endure extended supply chain disruptions that increase the price of solar panels, battery cells, and control technologies for carbon management? Some people would rather wait another ten years because they think the transition will be too expensive in certain areas. The discussion almost always results in the same conclusion: the United States must get to net zero, even if it doesn’t get there by 2050.ABOUT THE AUTHOR
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UP NEXTSteve Noble on how consumers react to sustainability labels
A study examined how well products labeled to highlight sustainability perform with customers. The results finally put data behind how much consumers value companies’ ESG efforts and claims.
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by "McKinsey Quarterly" <publishing@email.mckinsey.com> - 02:45 - 24 May 2023
