Charting retail banking revenues by generation

The global banking industry is facing a long winter, and in the coming months and perhaps years, the COVID-19 pandemic's impact will present banks with many challenges.
Charting retail banking revenues by generation

How COVID-19 has accelerated changes in the B2B sales landscape in Brazil

New analysis makes it clear: The digital revolution is a huge leap forward for B2B sales in Brazil.
How COVID-19 has accelerated changes in the B2B sales landscape in Brazil

How quantum computing could change financial services

Fully scaled quantum technology is still a way off, but some banks are already thinking ahead to the potential value.
How quantum computing could change financial services

COVID-19 vaccines meet 100 million uncertain Americans

More than 100 million Americans are uncertain about vaccination. Public- and private-sector leaders can take action to support adoption, including incremental investment in the range of $10 billion.
COVID-19 vaccines meet 100 million uncertain Americans

The coronavirus effect on global economic sentiment

Executives’ views on the economy continue to brighten as they look ahead to 2021.
The coronavirus effect on global economic sentiment

Economic Conditions Snapshot, December 2020: McKinsey Global Survey results

Executives’ views on the economy continue to brighten as they look ahead to 2021.
Economic Conditions Snapshot, December 2020: McKinsey Global Survey results

Nine scenarios for the COVID-19 economy

Learn more about potential economic outcomes of the COVID-19 crisis and how global executives rate the likelihood of each one.
Nine scenarios for the COVID-19 economy

The resilience imperative for medtech supply chains

The COVID-19 pandemic highlighted issues with supply chains around the world. As medtech companies prepare for the next normal, they have a mandate to rebuild their supply chains with resilience as a new priority.
The resilience imperative for medtech supply chains

Reimagining leadership in Asia’s next normal

Singapore Prime Minister Lee Hsien Loong spoke with Oliver Tonby, Chairman of McKinsey Asia, about the changing role of leaders.
Reimagining leadership in Asia’s next normal

North American wealth management: Money in motion, but not always to the bottom line

We learned from the last crisis that companies were not rewarded for standing still and waiting. Wealth managers will need to be fast, bold, and agile to succeed.
North American wealth management: Money in motion, but not always to the bottom line

How US customers’ attitudes to fintech are shifting during the pandemic

Recent surveys of US consumers reveal some shifting attitudes towards banks and fintechs after more than six months of the COVID-19 crisis.
How US customers’ attitudes to fintech are shifting during the pandemic

Emerging stronger, fitter, faster: The rise of the Asian corporation

Leading CEOs in Asia explain how COVID-19 has accelerated five business trends in the region and why they’re confident that unprecedented opportunities lie ahead.
Emerging stronger, fitter, faster: The rise of the Asian corporation

A unique time for chief risk officers in insurance

Amid rising economic uncertainty, leading insurers are looking to their CROs to do even more than manage risks.
A unique time for chief risk officers in insurance

Twenty images that offer a lens on 2020

McKinsey designers highlight the photos and illustrations that helped us tell the visual story of a remarkable year.
Twenty images that offer a lens on 2020

How the voluntary carbon market can help address climate change

The voluntary carbon market is gaining momentum and plays an increasingly important role in limiting global warming. Here’s how.
How the voluntary carbon market can help address climate change

A tale of 2020 in 20 McKinsey charts

See the story of this unique year through data visualizations from our Charting the Path to the Next Normal series.
A tale of 2020 in 20 McKinsey charts

Digital performance management: From the front line to the bottom line

Industry 4.0 technologies let manufacturers integrate top-down performance management and bottom-up problem solving into business-as-usual routines—without replacing their current systems. The result? A virtuous cycle of improvement. 
Digital performance management: From the front line to the bottom line

Author Talks: Poet Maggie Smith on loss, creativity, and change

In her latest book, Maggie Smith writes about new beginnings as opportunities for transformation.
Author Talks: Poet Maggie Smith on loss, creativity, and change

Challenges and opportunities facing food banks under COVID-19

Greater Chicago Food Depository CEO Kate Maehr looks back on 2020, the challenge of rising food insecurity, and ways the private sector can get involved.
Challenges and opportunities facing food banks under COVID-19

Africa’s insurance market is set for takeoff

Five strategic considerations to help guide insurance companies on their journey to success in Africa.
Africa’s insurance market is set for takeoff

One start-up’s successful organizational approach to speed and flexibility

Once agile practices are truly embedded in a company’s DNA, even a pandemic can’t dent its ability to respond quickly to evolving customer needs—and the competition.
One start-up’s successful organizational approach to speed and flexibility

Sustainability in packaging: Inside the minds of global consumers

In the wake of the COVID-19 pandemic, some global themes regarding consumer sentiment are evident. But perceptions and priorities regarding packaging differ by country and require a granular response.
Sustainability in packaging: Inside the minds of global consumers

Twelve highlights from our 2020 research

These 12 charts distill some of the best research from the McKinsey Global Institute over the course of a year of shocks.
Twelve highlights from our 2020 research

Ten ways to boost Indonesia’s energy sector in a postpandemic world

The success of Indonesia’s energy sector will depend on how the sector reimagines itself—and how public and private leaders address fundamental long-term challenges.
Ten ways to boost Indonesia’s energy sector in a postpandemic world

Collaboration in crisis: Reflecting on Australia’s COVID-19 response

Australia’s response to the COVID-19 pandemic to date offers valuable, actionable insights for decision makers worldwide.
Collaboration in crisis: Reflecting on Australia’s COVID-19 response

A new model for the consumer-goods industry

Twelve trends, accelerated by the COVID-19 crisis, are disrupting the consumer-goods industry’s traditional success model.
A new model for the consumer-goods industry

Rebuilding clinician mental health and well-being after COVID-19

The pandemic has exacerbated existing issues around the mental health of healthcare workers. Providers can learn from other industries to develop an integrated framework promoting overall well-being.
Rebuilding clinician mental health and well-being after COVID-19

From no mobility to future mobility: Where COVID-19 has accelerated change

The COVID-19 pandemic has disrupted mobility, and its effects will linger well into next year. How will changing consumer preferences, technologies, and regulations shape the market in 2021?
From no mobility to future mobility: Where COVID-19 has accelerated change

The disaster you could have stopped: Preparing for extraordinary risks

Ignoring high-consequence, low-likelihood risks can be damaging to an organization, but preparing for everything is impossibly costly. Here is how leaders can make the right investments.
The disaster you could have stopped: Preparing for extraordinary risks

Responding to climate risk: Actions for US state and local leaders

Climate risk costs the United States billions each year. By acting now, state and local leaders can lessen the impact, invigorate economies, and steer the country to a prosperous low-carbon future.
Responding to climate risk: Actions for US state and local leaders

Growth and prosperity: A conversation with economist Dambisa Moyo

From stronger public- and private-sector collaborations to broader corporate-board intentions, the time for stakeholder capitalism may be upon us.
Growth and prosperity: A conversation with economist Dambisa Moyo

Ready for launch: Reshaping pharma’s strategy in the next normal

As pharmaceutical companies reshape their commercial models to prepare for the uncertainties ahead, personalization and digital enablement will be crucial to launch success in the new environment.
Ready for launch: Reshaping pharma’s strategy in the next normal

This way out: How leading companies chart a full-potential COVID-Exit

Half measures and incrementalism won’t work when your company emerges from a crisis. Here’s how leading organizations are thinking about holistic transformation to go all in.
This way out: How leading companies chart a full-potential COVID-Exit

The committed innovator: An interview with Anjali Sud, CEO of Vimeo

When a marketing executive discovered an unexpected market opportunity, she disrupted the company’s original business—and became CEO in the process.
The committed innovator: An interview with Anjali Sud, CEO of Vimeo

Ensuring high service levels to meet high consumer-demand volatility

The pandemic continues to shift consumer demand as CPG companies scramble to adjust. Six best practices can enhance the supply chain now while positioning companies for long-term success.
Ensuring high service levels to meet high consumer-demand volatility

North American asset management: A year of shocks but few surprises

The events of 2020 shook the industry, but a rebound followed. Forward-looking firms will now take stock of what has changed and what has not in a new operating environment.
North American asset management: A year of shocks but few surprises

2020 season recap: Building and scaling new businesses

Listen to learnings on business building from The Venture’s 2020 episodes.
2020 season recap: Building and scaling new businesses

Nigeria’s banking sector: Thriving in the face of crisis

Bold ideas to help the industry build resilience and drive long-term sustainability.
Nigeria’s banking sector: Thriving in the face of crisis

Is luxury resale the future of fashion?

Consumers will increasingly shun cheap clothes and favor preowned designer goods instead, predicts Max Bittner, the CEO of resale platform Vestiaire Collective.
Is luxury resale the future of fashion?

For H&M, the future of fashion is both ‘circular’ and digital

Companies that “embrace circularity and digitization at the same time” will dominate the fashion industry, says Vanessa Rothschild, H&M Group’s global sustainability steering and development manager.
For H&M, the future of fashion is both ‘circular’ and digital

The future of sustainable fashion

Consumers will increasingly expect—and demand—an emphasis on sustainability from fashion brands. Circular business models won’t be optional.
The future of sustainable fashion

The growth chessboard: How leaders fuel profitable growth in insurance

We examined the performance of 46 insurers around the globe to identify the behaviors that the outperformers share.
The growth chessboard: How leaders fuel profitable growth in insurance

‘Keep it simple’: Aditya Puri on HDFC Bank’s path to market leadership

The recently retired founder–CEO of India’s highest-valued financial institution reflects on how customer-focused innovation and disciplined risk management led to strong performance.
‘Keep it simple’: Aditya Puri on HDFC Bank’s path to market leadership

COVID-19 and in vitro diagnostics: New market forces at play

The high demand for in vitro diagnostics could seed structural shifts that will have long-term implications for diagnostic-test manufacturers.
COVID-19 and in vitro diagnostics: New market forces at play

Author Talks: McKinsey Global Institute’s Peter Gumbel on searching for identity

In his new book, Peter Gumbel grapples with the complexity of belonging in an increasingly global world.
Author Talks: McKinsey Global Institute’s Peter Gumbel on searching for identity

New at McKinsey blog: 2020 year in review

As 2020 comes to a close, New at McKinsey blog editors share a look at some of the milestones that defined the year—and what inspires them for the future ahead.
New at McKinsey blog: 2020 year in review

Germany’s e-health infrastructure strengthens, but digital uptake is lagging

McKinsey’s eHealth Monitor 2020, a report on digitization in German healthcare, shows a solid—and expanding—digital infrastructure that appeals to patients but remains underutilized by physicians.
Germany’s e-health infrastructure strengthens, but digital uptake is lagging

A credit lifeline: How banks can serve SMEs in South Africa better

Small and medium-size enterprises are crucial to the economy in South Africa, and optimal support is needed to ensure their recovery and growth into the next normal
A credit lifeline: How banks can serve SMEs in South Africa better

The challenge of climate change

Here’s how three leading companies are tackling sustainability in the next normal.
The challenge of climate change

Breaching the great wall to scale

Introducing a new operating model is hard. Doing so quickly is even harder. Under pressure to accelerate their transformation, how can companies overcome the barriers that often hold them back?
Breaching the great wall to scale

COVID-19 has revived the social contract in advanced economies—for now. What will stick once the crisis abates?

Massive government spending has sought to shield individuals from the economic consequences of the pandemic, reversing a long-term trend of institutional pullback in the social contract.
COVID-19 has revived the social contract in advanced economies—for now. What will stick once the crisis abates?

Gen Z and the Latin American consumer today

Our research shows that Generation Z is more pragmatic than millennials, and that Latin American consumers aren’t as optimistic as they used to be.
Gen Z and the Latin American consumer today

How the charitable food system is adapting to life under the pandemic

Feeding America COO Katie Fitzgerald reflects on how food banks have responded to challenges of COVID-19, and lessons learned in the process.
How the charitable food system is adapting to life under the pandemic

Claims 2030: A talent strategy for the future of insurance claims

Digitization is reshaping the workforce of insurance claims organizations, demanding new roles and skills. Creating a digital talent strategy is key to leading in this new context.
Claims 2030: A talent strategy for the future of insurance claims

How COVID-19 is redefining the next-normal operating model

With everything disrupted, going back to the same old thing is a losing strategy. The strongest companies are reinventing themselves by embracing pandemic-driven change.
How COVID-19 is redefining the next-normal operating model

Why business building is the new priority for growth

It can help companies diversify their revenues and keep pace with shifting customers and markets. But incumbents often lack the skills they need.
Why business building is the new priority for growth

COVID-19 vaccine: Are consumers ready?

While details of COVID-19 vaccine administration are still pending, healthcare stakeholders may want to consider their long-term plans for consumer engagement in immunization. Here, we discuss the latest insights on US consumers’ reported acceptance of COVID-19 vaccination and considerations for healthcare leaders.
COVID-19 vaccine: Are consumers ready?

McKinsey’s Global Banking Annual Review

Updated annually, our Global Banking Annual Review offers the best of our research and insights into the global banking industry. Explore the findings from our most recent report and scroll for past years’ reports.
McKinsey’s Global Banking Annual Review

The COVID-19 vaccines are here: What comes next?

Countries must prepare now for the largest simultaneous global public-health initiative ever undertaken.
The COVID-19 vaccines are here: What comes next?

Author Talks: Roger Martin on the high price of efficiency

In his latest book, Roger Martin argues for a new view of the economy as a complex, adaptive system that balances efficiency with resilience.
Author Talks: Roger Martin on the high price of efficiency

The right tools for every job: Lean and agile in maintenance

Why tomorrow’s maintenance function will combine the strengths of lean and agile organizations.
The right tools for every job: Lean and agile in maintenance

Speeding up to become even more consumer-obsessed: An interview with GSK’s Keith Choy

The leader of GlaxoSmithKline’s Asia–Pacific Consumer Healthcare group describes how his organization is speeding up to serve consumers, despite the heightened uncertainty of COVID-19.
Speeding up to become even more consumer-obsessed: An interview with GSK’s Keith Choy

Mental health in the workplace: The coming revolution

Employees are in need and are demanding better coverage. Here’s how leading companies get mental health coverage right.
Mental health in the workplace: The coming revolution

Grief, loss, burnout: Talking about complex feelings at work

Leaders have always navigated emotional dynamics in the workplace—but not at the scale and intensity unleashed by the COVID-19 pandemic. Here’s how to map this shifting terrain.
Grief, loss, burnout: Talking about complex feelings at work

Chemicals and capital markets: Refocusing on the fundamentals

The sector has lagged behind the market over the past five years. Our research shows that the basics—ROIC performance and revenue growth—are the metrics investors reward most.
Chemicals and capital markets: Refocusing on the fundamentals

Getting the price right in logistics

Reimagining the pricing cycle can be the most impactful lever for profitability in the logistics sector, and five steps to reform the entire pricing cycle can maximize the value.
Getting the price right in logistics

COVID-19 and learning loss—disparities grow and students need help

The pandemic has set back learning for all students, but especially for students of color. Evidence-based acceleration approaches can help.
COVID-19 and learning loss—disparities grow and students need help

Navigating the state financial crisis: Moving past business-as-usual planning and budgeting post-COVID-19

The COVID-19 pandemic has created and underscored countless financial-management challenges for state governments in the United States. To meet these fiscal demands, states can use the budget as a strategic-management tool.
Navigating the state financial crisis: Moving past business-as-usual planning and budgeting post-COVID-19

Simple, predictive, proactive, responsive: The future of customer operations

For happier customers and lower costs, companies need a better way to steer their digital-service transformations.
Simple, predictive, proactive, responsive: The future of customer operations

A tale of two markets: How the US electric power sector is diverging

Some regions are prioritizing cutting greenhouse-gas emissions; many are not. What does this mean for decarbonization in the United States?
A tale of two markets: How the US electric power sector is diverging

Finding the sweet spot in product-portfolio management

It’s more urgent than ever to rebalance product portfolios so that complexity creates value rather than destroying it. Here’s how.
Finding the sweet spot in product-portfolio management

Five Fifty: The pandemic’s gender effect

Women are disproportionately affected by the COVID-19 crisis. Here’s how to help.
Five Fifty: The pandemic’s gender effect

Digitizing Europe’s railways: A call to action

The future of train traffic is digital. To accelerate the digitization of Europe’s railways—and thus secure the future of its railroad industry—stakeholders must change the way the industry operates.
Digitizing Europe’s railways: A call to action

Global Economics Intelligence executive summary, November 2020

The global economic recovery strengthened alongside a resurgent wave of COVID-19 cases; with vaccines on the horizon and easing US political uncertainty, investor confidence climbed.
Global Economics Intelligence executive summary, November 2020

Future of insurance: Unleashing growth through new business building

To compete with digital players, traditional insurers should consider building their own new digital businesses. Markers across four critical areas can show if insurers are on track.
Future of insurance: Unleashing growth through new business building

Purpose, not platitudes: A personal challenge for top executives

To harness the power of corporate purpose, CEOs and other senior executives must pressure-test that purpose with their teams, employees—and themselves.
Purpose, not platitudes: A personal challenge for top executives

Building a great digital business

How companies are leveraging technology to address rapid market changes.
Building a great digital business

A fresh approach to logistics forecasting in 2021

Ninety-one percent of surveyed executives acknowledge that forecasting in 2021 needs to look different. We outline one potential approach.
A fresh approach to logistics forecasting in 2021

Why the time is right to reinvent capital-project delivery

What could your business achieve if your large capital projects were 30 to 50 percent faster and cheaper? The opportunity is more real than you think.
Why the time is right to reinvent capital-project delivery

How the European Union could achieve net-zero emissions at net-zero cost

The decarbonization pathways to a net-zero Europe are countless, but not all are cost optimal. We explore one pathway that could reduce the EU’s emissions 55 percent by 2030 while delivering broad economic benefits.
How the European Union could achieve net-zero emissions at net-zero cost

How Asia can boost growth through technological leapfrogging

Asia has experienced a significant technological transformation over the past decade, and there is more to come if the region addresses remaining gaps in core capabilities.
How Asia can boost growth through technological leapfrogging

COVID-19 and behavioral health: Consequences for companies and employees

The pandemic is exacerbating the US behavioral-health crisis, with stress, social isolation, and unemployment fueling up to $140 billion in added spending. A holistic approach to healthcare can help.
COVID-19 and behavioral health: Consequences for companies and employees

It’s time for a new approach to racial equity

Despite decades of efforts by public-, private-, and social-sector organizations, racial inequity has only increased. Can a concerted, coordinated effort reverse this trend?
It’s time for a new approach to racial equity

Higher education enrollment: Inevitable decline or online opportunity?

Declines in fertility and dropping international student numbers threaten the future of many higher education institutions, but others are prospering as they adapt to serve a more diverse and adult student base, increasingly online.
Higher education enrollment: Inevitable decline or online opportunity?

Why a cut-and-paste approach to digital transformation won’t cut it: An interview with the founder of Biocon

Asian companies can reap many benefits if they not only embrace but also truly understand digital innovation, says Kiran Mazumdar-Shaw.
Why a cut-and-paste approach to digital transformation won’t cut it: An interview with the founder of Biocon

How European shoppers will buy groceries in the next normal

As the COVID-19 pandemic continues, early evidence shows that some—but not all—of Europeans’ new grocery-shopping habits will stick.
How European shoppers will buy groceries in the next normal

The State of Fashion 2021: In search of promise in perilous times

In 2021, the COVID-19 pandemic will accelerate industry trends, with shopping shifting to digital channels and consumers continuing to champion fairness and social justice.
The State of Fashion 2021: In search of promise in perilous times

From transition to transformation

Public-sector leaders generally don’t have a lot of time to make the changes they want. But there is an approach to speed up the process.
From transition to transformation

Reenergizing an exhausted organization: A conversation with Admiral John Richardson

The former chief of naval operations suggests strategies for leaders to avoid burnout and prevent pandemic fatigue.
Reenergizing an exhausted organization: A conversation with Admiral John Richardson

Private autonomous vehicles: The other side of the robo-taxi story

Although private self-driving cars attract less attention than robo-taxis do, our new market model suggests that they could give OEMs opportunities for growth.
Private autonomous vehicles: The other side of the robo-taxi story

Healthtech in the fast lane: What is fueling investor excitement?

As adoption of healthcare technology accelerates, it’s a good time for healthcare companies to consider investing in digital among nine potential “value pools.”
Healthtech in the fast lane: What is fueling investor excitement?

E-commerce: How consumer brands can get it right

Consumer brands need to make direct-to-consumer economics feasible and the customer experience seamless.
E-commerce: How consumer brands can get it right

The biopharma marketer of the future: Closing the gap

Commercial leaders share the new skills brand marketers need in the digital era to move from brand building to revenue acceleration.
The biopharma marketer of the future: Closing the gap

Rethinking resilience: Ten priorities for governments

Due to the pandemic, governments are under increased pressure to act quickly and at scale. By reimagining how they work, they can create resilient societies and public services for the next normal.
Rethinking resilience: Ten priorities for governments

China’s Gen Z are coming of age: Here’s what marketers need to know

Gen Z represent the next engine of domestic consumption growth.
China’s Gen Z are coming of age: Here’s what marketers need to know

Strong minds, strong futures: Weaving together basic needs and behavioral health

Public and private institutions can play a role in marrying socioeconomic and mental health needs.
Strong minds, strong futures: Weaving together basic needs and behavioral health

Large technology programs: Digital capabilities, proven approaches

To successfully implement large technology systems, first accept the complexity, and then take these six actions.
Large technology programs: Digital capabilities, proven approaches

Challenges emerge for the US healthcare system as COVID-19 cases rise

Recent COVID-19 trends suggest demand for care in the coming months may be higher and more widespread than at any point in the pandemic, while providers are also facing intensified capacity, supply, and workforce challenges.
Challenges emerge for the US healthcare system as COVID-19 cases rise

Overcoming pandemic fatigue: How to reenergize organizations for the long run

Leaders must actively manage the energy of their workforces, cultivate the quality of employee relationships, and demonstrate a capacity for resilience to recharge their organizations during crises.
Overcoming pandemic fatigue: How to reenergize organizations for the long run

Flying start: Powering up Hungary for a decade of growth

Amid the social and economic pain brought by the global COVID-19 health crisis, remembering past strengths and looking beyond the pandemic might be difficult. But as they work to mitigate the impact of the pandemic, Hungary’s public and private leaders must also set aside time to envision and implement measures that will build on the country’s solid fundamentals and seize opportunities, new and old.
Flying start: Powering up Hungary for a decade of growth

Will India get too hot to work?

Extreme heat and humidity could put millions of lives and billions of dollars at risk across India. What will it take to reduce the risk?
Will India get too hot to work?

Managing presidential transitions: Eight tips for taking care of the team

People are your best asset in a transition. Eight best practices can help you to ensure that your team functions at the highest level during the short transition period.
Managing presidential transitions: Eight tips for taking care of the team

The future of European payments: Strategic choices for banks

A joint report from McKinsey and the Euro Banking Association examines the options for banks in a changing landscape.
The future of European payments: Strategic choices for banks

Six golden rules for ecosystem players to win in Vietnam

Focusing on customer engagement, talent, and data analytics could unlock success in the country’s emerging ecosystem economy.
Six golden rules for ecosystem players to win in Vietnam

Climate risk and response in Asia

In many ways, Asia is on the frontline of a changing climate. We analyze the extent of climate risk facing the region and effective responses for adaptation and mitigation.
Climate risk and response in Asia

Driving for resilience: An interview with the CEO of India’s Tata Motors

Guenter Butschek, CEO of Tata Motors, shares his perspectives on the COVID-19-era challenges of leading a major global automotive company based in India, and the opportunities just up the road.
Driving for resilience: An interview with the CEO of India’s Tata Motors

Managing presidential transitions: Five tips for agency review teams

Agency review teams are often the largest function of governmental-transition organizations and critical for continuity of government. A few best practices can help maximize their effectiveness.
Managing presidential transitions: Five tips for agency review teams

Indirect procurement: Insource? Outsource? Or both?

A more thoughtful balance between homegrown capabilities and outsourcing can help companies generate more value from an often-overlooked opportunity.
Indirect procurement: Insource? Outsource? Or both?

The potential of advanced process controls in energy and materials

Optimizing advanced process controls can create significant value for critical industrial processes. Maximizing that value requires a comprehensive approach across people, processes, and technologies.
The potential of advanced process controls in energy and materials

What’s next for remote work: An analysis of 2,000 tasks, 800 jobs, and nine countries

Hybrid models of remote work are likely to persist in the wake of the pandemic, mostly for a highly educated, well-paid minority of the workforce.
What’s next for remote work: An analysis of 2,000 tasks, 800 jobs, and nine countries

When will the COVID-19 pandemic end?

Recent news on vaccine and antibody trials has raised hopes worldwide. When will vaccines be available? And is the end of COVID-19 nearer? Here we update our September 21 outlook.
When will the COVID-19 pandemic end?

Four ways to accelerate the creation of data ecosystems

Public and private organizations rapidly set up data ecosystems to help fight COVID-19. Even in the absence of a crisis, companies can fast-track ecosystem development.
Four ways to accelerate the creation of data ecosystems

Executives see superior capabilities as the key to future growth

In a new global survey, 1,200 businesspeople—many of them leaders—say the pandemic has alerted them to the urgent value of learning. And that their companies are struggling to get it right.
Executives see superior capabilities as the key to future growth

Finance 2030: Four imperatives for the next decade

Over the past decade, finance departments reduced costs by almost 30 percent. The next decade’s focus: achieving even higher levels of effectiveness.
Finance 2030: Four imperatives for the next decade

Scaling sustainable aviation fuel today for clean skies tomorrow

The move to sustainable aviation is now an imperative.
Scaling sustainable aviation fuel today for clean skies tomorrow

‘Prepare for the marathon and be ready for the course to change’: An interview with the Boston Logan Airport CEO

Massachusetts Port Authority CEO Lisa Wieland discusses why the contactless passenger journey is here to stay and how she’s building agility and flexibility for her organization.
‘Prepare for the marathon and be ready for the course to change’: An interview with the Boston Logan Airport CEO

The board’s role in embedding corporate purpose: Five actions directors can take today

A large spotlight is shining on corporate actions these days, and all stakeholders have growing expectations. A board’s involvement in defining purpose helps meet those expectations.
The board’s role in embedding corporate purpose: Five actions directors can take today

‘An environment where everybody can thrive’: A conversation with U.S. Bank’s Tim Welsh

The vice chairman for consumer and business banking at the fifth-largest bank in the United States describes how setting an environment of mission, purpose, and individual generosity is central to building capabilities that achieve strategic outcomes.
‘An environment where everybody can thrive’: A conversation with U.S. Bank’s Tim Welsh

Organizing for speed: Agile as a means to transformation in Japan

Japanese working practices may help or hinder the adaptation of agile approaches that can increase an organization’s speed and customer centricity. Addressing five main areas can allow leaders to master the transition to enterprise agility.
Organizing for speed: Agile as a means to transformation in Japan

The shift to virtual and home care: An interview with Annie Lamont

Holistic healthcare, virtual care, and the integration of mental-health care and primary care are among the trends the COVID-19 crisis moved ahead of schedule. Annie Lamont is keeping tabs on them all.
The shift to virtual and home care: An interview with Annie Lamont

Holiday shopping in 2020

Consumers, longing for normalcy and eager for something to celebrate, plan to spend money during the holidays—but differently from the way they have in the past.
Holiday shopping in 2020

Resilience in a crisis: An interview with Professor Edward I. Altman

One of the leading researchers in corporate financial health discusses what executives can do to help their companies endure the financial stresses of crisis times.
Resilience in a crisis: An interview with Professor Edward I. Altman

Eight lessons on how to get the growth you planned

Now is not the time to slow down. Growth initiatives are critical for value creation, even survival, throughout an economic cycle.
Eight lessons on how to get the growth you planned

Climate change and P&C insurance: The threat and opportunity

Many in the property and casualty insurance industry have underestimated the immediacy of physical—and systemic—effects from climate change. Business models must adapt.
Climate change and P&C insurance: The threat and opportunity

Think fast: How to accelerate e-commerce growth

The most critical tools in successful e-commerce expansion are customer-centricity and a test-and-learn mindset.
Think fast: How to accelerate e-commerce growth

Addressing society’s pain points: An interview with the CEO of Ayala Corporation

Jaime Augusto Zobel de Ayala reflects on Asia’s imperative, and his own, to find inclusive and creative solutions to complex and uncertain challenges.
Addressing society’s pain points: An interview with the CEO of Ayala Corporation

Reimagining the way businesses operate

To reimagine their organizations for the future, leaders must address three critical questions.
Reimagining the way businesses operate

The future of payments is frictionless—now more than ever

Amrita Ahuja, the CFO of Square, explains how the company’s payment platform and services have helped small enterprises stay afloat during the COVID-19 crisis.
The future of payments is frictionless—now more than ever

Five questions to answer before you finalize your media plan

New consumer behaviors require CMOs to rethink their media-spend plans.
Five questions to answer before you finalize your media plan

Hong Kong businesses need to evolve, or risk being left behind

The COVID-19 pandemic has changed the way companies across Asia operate, notably by enabling their employees to work remotely. In Hong Kong, where the culture of “presenteeism” has traditionally run deep, top executives have realized that working from home does not necessarily mean a decline in productivity.
Hong Kong businesses need to evolve, or risk being left behind

The state of AI in 2020

Our 2020 AI survey shows artificial intelligence has become more of a revenue driver. Companies earning the most from AI plan to invest in it more in response to COVID-19.
The state of AI in 2020

Finance 2030: Four imperatives for the next decade

Over the past decade, finance departments reduced costs by almost 30 percent. The next decade’s focus: achieving even higher levels of effectiveness.
Finance 2030: Four imperatives for the next decade

Agility in the time of COVID-19: Changing your operating model in an age of turbulence

Can organizations be transformed while employees are working remotely? Four real-life stories suggest that they can.
Agility in the time of COVID-19: Changing your operating model in an age of turbulence

Diverse employees are struggling the most during COVID-19—here’s how companies can respond

New global research shows that despite companies’ recent efforts, diverse employees need more. Businesses should ask themselves new questions for a changed workplace.
Diverse employees are struggling the most during COVID-19—here’s how companies can respond

Airline data: What next beyond crisis response?

Airlines are using a wealth of new data sources in 2020. Strategy should now replace adrenaline as the fuel for decisions around data adoption and usage.
Airline data: What next beyond crisis response?

Using ecosystems to reach higher: An interview with the co-CEO of Ping An

Expect digital to further blur industry lines, supercharge scalability, and loosen geographical restraints for professional services, says Jessica Tan.
Using ecosystems to reach higher: An interview with the co-CEO of Ping An

Moving teams from campaign to transition: Five things to get right

How the shift from campaigning to transitioning is managed can set the foundation for an administration.
Moving teams from campaign to transition: Five things to get right

Meeting the future: Dynamic risk management for uncertain times

The world is changing in fundamental ways, leading to dramatic shifts in the landscape of risks faced by businesses.
Meeting the future: Dynamic risk management for uncertain times

The economic case for reskilling in the UK: How employers can thrive by boosting workers’ skills

In about 75 percent of cases, it pays for an organisation to reskill an employee—yet few do this systematically. Here’s why, and what companies should do differently.
The economic case for reskilling in the UK: How employers can thrive by boosting workers’ skills

Data will decide success in the next normal of bulk and tanker shipping

COVID-19 and commodity-related trends are likely to depress medium-term demand, but companies that can leverage deep market insights will have the opportunity to outperform in the postcrisis economy.
Data will decide success in the next normal of bulk and tanker shipping

When do you need a chief restructuring officer?

When external shocks rock the business, a chief restructuring officer brings a specialized skill set to restructure the balance sheet.
When do you need a chief restructuring officer?

Closing the capability gap in the time of COVID-19

Building capabilities that durably change workforce behaviors has never been easy, and the pandemic has made it harder. But some organizations have found approaches to thrive in recovery and beyond.
Closing the capability gap in the time of COVID-19

Shaping university boards for 21st century higher education in the US

Many university boards have not revised their governance models in decades and struggle to deliver on their mission. To update their current operating model, boards can focus on three best practices.
Shaping university boards for 21st century higher education in the US

How retail can adapt supply chains to win in the next normal

Retailers in consumer discretionary categories were already struggling in the US before COVID-19. Better supply-chain management could be critical to their recovery.
How retail can adapt supply chains to win in the next normal

Pioneer of healthy aging

Using the tools it has today, China can transform its aging population into a vital social and economic force supporting the country’s growth, writes Jonathan Woetzel in China Daily.
Pioneer of healthy aging

The Best of This Week

The Hidden Values Driving Strategy

Research shows that our subconscious values influence how much risk we are willing to tolerate and how open we are to pursuing innovation — and thus, how we make decisions and achieve our goals as managers. By understanding and acknowledging these biases in themselves and others, leaders can better align decisions with company goals and strategy.

Reaping the Benefits of Conflicting Advice From Mentors

Research shows that mentees tend to make better decisions if they embrace and work through conflicting advice. These tips can help mentees reap the benefits of conflicting advice — and help mentors offer sufficient support.
 

6 Counterintuitive Rules for Being a Better Manager

In an interview with First Round Review, Lambda School chief operating officer Molly Graham shares her six rules for how to be a good manager. From the unassuming traps that even great managers can fall into to why the best leaders spend more time with the highest — not the lowest — performers, this collection of practical tactics can help you take your management game to the next level.

Responding to Growing Regulatory Risks

The blizzard of regulatory action swirling around Big Tech platforms is producing outcomes that will affect many other companies across industries that have adopted — or are considering adopting — platform business models. Yet, few platform operators and owners have fully considered the growing regulatory risk and how it could derail their businesses. Here are the internal and external responses they should consider now.

Social Media Managers Are Essential — and Struggling

In 2020’s relentless news cycle, social media managers are first responders. They make important — and very public — decisions constantly, responding to news and conversations quickly at a very delicate time. While in high demand, their job is still belittled as one that anybody could do, but for such a demanding and psychologically tough role, relief may require more than personal coping skills.

What Else We’re Reading This Week

• In a pandemic, every day is “bring your child to work day” — but not nearly as fun
• Organizations have become flexible about where and when employees work, but they also must attend to the essentials of productivity: energy, focus, coordination, and cooperation
• From strategy+business, a list of 2020’s best business books

Quote of the Week:

“For us, AI has not meant artificial intelligence. We have always talked about amplified intelligence, because we’re amplifying an existing knowledge and competence of our colleagues.”

— Arti Zeighami, H&M Group’s chief data and analytics officer, in MIT SMR’s latest Me, Myself, and AI podcast, “Fashion Forecasting”

The Best of This Week

The conflicted Continent: Ten charts show how COVID-19 is affecting consumers in Europe

European consumers are emerging from lockdown at their own pace—and with new priorities that include personal safety and social values.
The conflicted Continent: Ten charts show how COVID-19 is affecting consumers in Europe

Rethinking the future of American capitalism

American capitalism has evolved time and again, and we may be poised for another such shift. Will the future of capitalism involve tweaks, reforms, or wholesale change?
Rethinking the future of American capitalism

Healthcare innovation: Building on gains made through the crisis

Leaders should consider the lessons and achievements of the COVID-19 crisis in forging new innovation aspirations—and the mechanisms needed to execute them.
Healthcare innovation: Building on gains made through the crisis

The case for stakeholder capitalism

Consumers and society at large are expecting more from business. Embracing these responsibilities can help shareholders, too.
The case for stakeholder capitalism

Scaling digital in the public sector: Building blocks for the future

The upcoming government transition presents public-sector leaders with the opportunity to establish processes for successfully scaling digital technologies.
Scaling digital in the public sector: Building blocks for the future

Making the Most of Conflicting Advice From Mentors

Knowing how to handle conflicting advice is a critical workplace skill. Conflicting advice is more common today because amplified complexity and uncertainty open the door to multiple opinions. Greater workplace diversity also makes conflicting advice more likely: When mentors bring different perspectives, experiences, or backgrounds to the table, they may offer clashing guidance.

For example, Oscar was just offered a new job at another company. Taking the job would mean a higher salary and more leadership responsibilities. But he loves working with his current boss and colleagues, and he really likes his company’s culture.

Faced with this big career decision and unsure what to do, Oscar hopes his three longtime mentors will guide him as they have in the past. But each of them steers him in a very different direction. The first mentor, his boss, strongly urges Oscar to stay in his existing job. She says waiting for a promotion and pay raise at a place he really likes makes the most sense. A second mentor — a colleague in another department — urges Oscar to take the new job, reminding him that he’s been bored for a while and wants more responsibility. The third mentor, whom Oscar met at a conference years ago, advises Oscar to use the job offer to negotiate a promotion at his current company.

Getting conflicting advice from his mentors might seem like a good thing; Oscar can now see three different possible paths and consider which one to follow. Yet his situation is stressful. He looks to his mentors for guidance, but their disagreement about the job offer makes his decision seem less clear, not more. And because he relies on his mentors for sponsorship and support, he worries that any decision he makes could damage his relationship with one or more of them. If he chooses one mentor’s advice, will he annoy or even anger the others?

Our research shows that mentees tend to make better decisions if they embrace and work through conflicting advice. For example, if Oscar sees his mentors’ differing suggestions as a platform for thoughtful reflection and discussion, he can figure out what he really wants and values. He can rationally compare the pros and cons of each idea — and use his gut reaction to identify which path feels right to him. He might choose to follow one advised path, or he might arrive at a decision that matches none of his mentors’ suggestions — perhaps pursuing a more senior position in a different department at his current company.

An added benefit to making the most of conflicting advice is personal growth. Being pushed to make choices without unified guidance from mentors teaches people to find their own voices and trust their internal compasses. As Oscar processes his three mentors’ suggestions and ultimately makes a decision about whether to take the job, he learns to chart his own way. He also gets better at maintaining his mentor relationships by learning how to stay connected despite differences of opinion.

Being able to use conflicting advice effectively is challenging at all career stages. Entry-level employees, who are often young, struggle to figure out what is right for them when they receive conflicting advice. This is because their internal compasses may not be fully developed. Entry-level employees may also be less comfortable disagreeing with their mentors, especially with mentors in powerful positions. Senior employees may struggle less with deciding what to do amid disagreement, but — because their jobs are often more challenging and ambiguous — they are more likely to encounter work issues that provoke especially deep disagreement among their mentors.

So how do you reap the benefits of conflicting advice from your mentors? Below, we offer tips to help mentees.

Tips for Working Through Conflicting Advice:

• Ask for clarification. Reengage your various mentors and ask questions about their advice. Why did they make the suggestions that they did? Why would they recommend their suggested path over others? Also explain your own doubts or concerns about their guidance. Talking more with each mentor will allow you to think through each possibility collaboratively. It will also help you understand where your mentors are coming from and whether their suggestions are driven by the things that matter most to you.
• Ask others for further advice. Although it might seem counterintuitive to add to the pool of suggestions when you are already struggling to choose among the ones you have, gathering more perspectives can be helpful. Try to connect with people who you think understand you well and will support your decision, whatever it is. An added bonus: These people could become new mentors for you in the future.
• Evaluate the strength of each mentor relationship. If you’re worried that deciding not to follow a mentor’s advice will hurt your relationship, try having an open conversation about your concerns. If mentors express genuine support for you regardless of what you decide, you will rest easier. However, if any of your mentors signal conditional support — predicated on you taking their advice — you may want to question whether this person is someone you should continue to rely on.
• Get help with stress. Feeling anxious when you receive conflicting advice is normal. But don’t let stress become the main focus. Instead, try to identify why you are anxious. Are you uncomfortable disagreeing with your mentors or anxious about losing their much-needed support? Are you worried that you don’t know how to make a good decision? Ask someone you trust to help you think about what is causing your anxiety, since it can be hard to do this alone. As you discuss your feelings and what underlies them, you can see more clearly which concerns are valid and develop strategies for addressing them. This will reduce your stress and free up energy to process the conflicting advice.

It is easier for mentees to work through conflicting advice if their mentors offer sufficient support; the above strategies are most effective when mentors understand and respond appropriately to situations involving clashing guidance. With that in mind, mentors can consider the following tips.

Tips for Mentors:

• You are not mentoring in a vacuum. Recognize that your mentees are likely asking others for advice and may therefore be getting conflicting suggestions. Communicate that you are glad they are seeking multiple viewpoints. Be clear that you are open to hearing about and discussing other mentors’ ideas. And be willing to shift your own perspective based on what you learn about others’ guidance.
• Don’t make the decision for them. People often look to their mentors to tell them what to do, and it can feel good to satisfy their need for clear instruction. But you will be far more useful if you resist the temptation to choose among the pieces of conflicting advice yourself. Instead, encourage mentees to make decisions for themselves. Serve as a sounding board and ask good questions. This will lead mentees to choices that are right for them, not you. It will also allow them to grow — people only develop stronger internal compasses if you let them.
• Make disagreement feel safe. Tell mentees that it is not “your way or the highway,” and that two-way debate is expected and appreciated. Signal that your relationship with them will stay strong regardless of the decision they make. Show them that you support their efforts to make a decision for themselves. And let them know that learning to find their own way is an important part of their personal development.
• Share stories about your own mentoring experiences. Describe times when you found it difficult to be mentored by others. This helps people learn more about you and normalizes open dialogue about challenging mentor situations. By talking not only about what happened but also how you felt in such situations, mentees will feel more comfortable discussing their current feelings with you. Stories about times when you disagreed with but stayed close to a mentor are especially useful, since they show that mentor relationships are more resilient than people may think.

Getting conflicting advice from mentors is not easy, but the strategies outlined above can help people capitalize on divergent guidance to make better decisions. By working through mentors’ different viewpoints, mentees grow personally in key ways that equip them to cope better with future challenges.

Making the Most of Conflicting Advice From Mentors

Increasing decision-making velocity: Five steps for government leaders

Government leaders can challenge the norms of how their organizations work and dramatically increase their decision-making speed and agility.
Increasing decision-making velocity: Five steps for government leaders

Agile’s next level: ABN AMRO’s hybrid cloud–DevSecOps transformation

Transformation success required thoughtful mastery of multiple disciplines and coordination of many moving parts.
Agile’s next level: ABN AMRO’s hybrid cloud–DevSecOps transformation

Pathways to decarbonize the Czech Republic

The Czech Republic has reduced GHG emissions significantly after 1990, but it remains fourth-largest GHG emitter per capita in the EU.
Pathways to decarbonize the Czech Republic

Pathways to decarbonize the Czech Republic

Czech republic has reduced GHG emissions significantly after 1990 but remains fourth largest GHG emitter per capita in the EU. This report aims at presenting a cost-effective pathway for the Czech Republic to reduce GHG emissions in line with the expected targets of the European Green Deal, including the investments needed.
Pathways to decarbonize the Czech Republic

The next frontier in Asia payments

Five fundamental themes are reshaping Asia’s payments landscape, requiring a swift response—and in some cases, self-reinvention—from players across the value chain.
The next frontier in Asia payments

The Rising Risk of Platform Regulation

On Oct. 6, 2020, the U.S. House Judiciary Committee’s antitrust subcommittee released a 450-page report following a 16-month inquiry into the digital economy. It recommended fundamental changes to antitrust laws generally and targeted the Amazon, Apple, Facebook, and Google technology platforms specifically.1 Several weeks later, the U.S. Department of Justice filed suit against Google, accusing it of using “anticompetitive tactics to maintain and extend its monopolies in the markets for general search services, search advertising and general search text advertising.”2 Similar regulatory initiatives aimed at platforms are underway around the world, including in the European Union, United Kingdom, Japan, Korea, and India.3

The blizzard of regulatory action swirling around platforms is producing new rules and laws, expanded powers for existing regulatory authorities, and the establishment of new regulatory authorities. These outcomes will not only affect Big Tech but also many other companies, in industries such as construction, health care, finance, energy, and industrial manufacturing, that have adopted or are considering adopting platform business models.

Few platform operators and owners have fully considered how the growing regulatory risk — which includes breakups, line-of-business restrictions, acquisition limits, and interoperability and data portability mandates — could derail their businesses. As a result, they could be caught off guard, just like many companies were caught off guard when the Sarbanes-Oxley Act of 2002 mandated board restructurings and expanded executive financial accountability in the aftermath of accounting scandals.4

The regulatory outcomes being proposed and adopted today could have varying degrees of impact on platform businesses. The most severe proposal in the House Judiciary Committee report would dictate a structural breakup, requiring “divestiture and separate ownership of each business.” This could unravel the network effects that drive platform growth and produce value. U.S. regulators have rarely pursued solutions this extreme, but there are notable exceptions, including the breakups of Standard Oil in 1911 and AT&T in 1984, and the attempted breakup of Microsoft, which settled with the DOJ in 2004. (It’s too early to say whether Google will join this list, but the DOJ complaint leaves open the possibility.)

A more likely outcome is the separation of platforms from the products and services sold on them, which some policymakers advocate to combat self-preferencing, a catchall term for actions that favor a platform owner’s offerings over those of its competitors. In its limited form, such a rule might restrict potential bias in search listings. In its extreme form, it could forbid vertical integration — a significant source of value in many platform models — by precluding a company from selling its own offerings on its platform, even when they offer superior value to users. In 2019, for example, India imposed a flat rule forbidding companies from owning more than 25% equity in any product sold on their platforms.5

Another outcome proposed in the House Judiciary Committee report is the forced sharing of commercial data with competitors, which is aimed at creating an even playing field by providing equal access to data. But giving competitors access to user data also entails privacy and security risks, including secondary misuse of data and ambiguities in accountability for data breaches.6

The report also recommends strict limits on the merger and acquisition activity of platform companies to prevent what the committee believes are anti-competitive activities, such as dictating prices and the rules of commerce in their markets. However, these limits can also hamper the ability of platforms to reach scale, to acquire new functionality that they can share with large pools of users, and to obtain the talent and capabilities needed if they are to innovate.

More generally, the House Judiciary Committee report proposes changing presumptions about how antitrust works in ways that would benefit plaintiffs — for example, by reducing the need to show causal harm (aka antitrust injury) to bring a claim. These presumptions, along with the extension of antitrust by adopting vague, noneconomic factors (such as “fairness”), could make many of the value-creating everyday business decisions currently made by platform operators (such as exclusive dealing, bundled offerings, and price cuts) more prone to antitrust litigation, fines, and other restrictions.

How should companies with platform businesses respond to the rising prospect of regulation? We suggest taking the following actions.

Internal Responses

Companies that own and operate platforms can forestall regulatory action and perhaps avoid the most draconian interventions by embracing self-regulation and shared governance. In doing so, they may be able to allay the fears of regulators without destroying the value-creating network effects on which they and their partners and users depend.

Toward this end, companies can erect firewalls between their platforms and their products by compartmentalizing employees and information into separate business units. Then they can offer third-party sellers the same competitive terms accorded to the walled-off product units. Google did this when, in response to a European Commission decision, it created equal access for its competitors by auctioning off positions in the shopping box adjacent to its search engine results.7

Companies also can offer their partners a role and a voice in the governance of platforms. The German software company SAP, for example, offers three tiers of platform access.8 The lowest tier provides access for apps that are vetted for security and compatibility. The middle tier represents products that SAP’s sales teams promote alongside SAP’s own products. The top tier of platform partners, who must be approved by SAP’s board, get a voice in determining platform strategy.

External Responses

Given that regulation can have such a powerful effect on markets and business results, platform companies should prepare to engage in the regulatory process as a more fundamental and integral element of business strategy. Toward this end, they should identify theories of value creation (platform effects that make society better off through more efficient outcomes) as distinct from theories of harm (platform effects that are detrimental to social welfare or competition) to better frame regulatory risks and their responses to regulatory initiatives.

To avoid regulations that could confer advantage on some platforms over others, companies should seek commercially neutral regulatory outcomes that allow them to compete on their merits. For example, the Glass-Steagall Act, which was repealed in 1999, forced banks to separate retail from investment banking. This reduced the advantage that integrated banks had in terms of access to funds, but it also reduced investment banks’ bets with depositor funds. Studies have shown that there was more banking competition and that bank customers were better off both before Glass-Steagall was enacted and after it was repealed.9

Moreover, lobbying efforts should seek to promote regulation that’s narrowly targeted. Focused regulation can improve markets. In the EU, for example, a revised Payment Services Directive enables open banking by giving consumers more control over who can access their accounts. But overly broad regulation can distort markets. For example, the General Data Protection Regulation has made it harder for small advertisers to compete with larger ones and reduced investment funds available to technology startups.10

New regulations do not always work as intended. Nor do existing regulations, especially when they misapprehend new business models. The taxi industry, with its monopoly on medallions, clearly suffered from regulatory capture that drove up prices for drivers and riders until ride-sharing platforms arrived with expanded services and lower prices.11 Platform businesses and companies that want to build platforms can avoid these problems by using internal firewalls and shared governance to reduce bias and the need for regulation, and by identifying new external sources of value and highlighting specific market distortions to shape the ways and means of regulation.

The Rising Risk of Platform Regulation

Modernizing the investment approach for electric grids

Customer and community expectations for the US electric grid are evolving. Utilities must adapt by pursuing integrated modernization plans.
Modernizing the investment approach for electric grids

In conversation: Culture in M&A

Why assessing the cultural fit cannot be an afterthought in deal making
In conversation: Culture in M&A

Divesting with agility

Research shows that active, efficient reallocation of resources creates better returns for companies than simply standing pat does. Here’s how to make portfolio decisions faster.
Divesting with agility

Government transitions during crisis: How new leaders can take charge

Transfers of power are complex—in times of crises, especially so. Here are seven lessons for leaders at all levels of government transitioning into new roles.
Government transitions during crisis: How new leaders can take charge

Value creation in industrials

The industrials sector is vital to global economic health. What factors help top companies stand out from the pack and generate the greatest value?
Value creation in industrials

Elevating aftermarket services

Customers increasingly prefer digital and remote engagement, so industrial companies must build these capabilities quickly.
Elevating aftermarket services

Building new businesses in industrials

New digital offerings hold the key for industrial companies to counteract the effects of disruption and better serve their customers.
Building new businesses in industrials

Scaling voluntary carbon markets to help meet climate goals

Voluntary carbon markets help companies supplement their emissions-reduction efforts and finance climate action. The Taskforce for Scaling Voluntary Carbon Markets offers a draft blueprint for them.
Scaling voluntary carbon markets to help meet climate goals

The state of the chemical industry—it is getting more complex

Three trends may change the future of the chemical industry.
The state of the chemical industry—it is getting more complex

Creating value in US insurance investing

Despite market complexity, many opportunities exist for private equity players to create value in insurance. We studied the US industry and offer a set of investment recommendations to guide PE firms’ decisions.
Creating value in US insurance investing

Taking a fresh look at temporary-labor sourcing amid uncertainty

With many industries operating remotely, companies that can implement new processes to harness fluctuations in the temporary-labor market may achieve greater flexibility in the recovery.
Taking a fresh look at temporary-labor sourcing amid uncertainty

The Hidden Values Driving Strategy

A growing cadre of managers is recognizing that their companies’ long-term prospects depend on demonstrating positive societal impacts.1 To that end, they’re taking pains to clearly articulate what they and their organizations value. This is helping them to define meaningful business goals, appeal to customers, and motivate a rising generation of workers who seek purpose, not just a paycheck.

But in doing all this, leaders tend to focus on values that are consciously held and shared in their organizations, such as sustainability or diversity and inclusion. They often fail to recognize how their very personal subconscious values — for instance, how much they value debate versus harmony — influence how they make plans and decisions and achieve their goals.2 These subconscious values shape our organizations’ strategies and tactics by directing our focus and influencing which plans we make and how we implement them.

Our research and consulting experience suggests that our values are among the biggest drivers of our strategic decisions. While conscious values may be clearly articulated by the CEO or other leaders, our very personal subconscious values are frequently not acknowledged. And knowing our values is crucial. As long as they are implicit, we can’t recognize and work to counter our biases.3

In our consulting experience, we have observed that leaders’ subconscious values particularly affect three aspects of their strategic decision-making: how and where they grow their businesses, how open they are to new ideas and new ways of solving problems, and how they interact with people. Within each of these areas, individuals typically lean toward one of two opposed values.

Our personal attitudes toward growth are shaped by how much we value security or embrace risk.4 Are we very risk averse, or can we tolerate uncertainty? Keep in mind that there is a significant difference between saying that we like risk and actually taking risks.

Our openness to new ideas and processes is influenced by whether we value learning or knowing.5 Are we willing to accept new ways of solving current problems, or do we stick with what we know has worked in the past? And, more important, how much do we value the intellectual development of ourselves and our team?

How we relate with people is based on whether we enjoy debate or prefer harmony. Do we suppress critical points of view to preserve harmony in the team? Our inclinations in these cases also reveal what kind of people we prefer to work with — those who are more confrontational or those who are more conformist.

Identifying Our Subconscious Values

Leaders who want to surface and understand the subconscious values that drive strategy creation need to interrogate themselves honestly. Given that our values affect both business and personal decisions, introspection about our preferences and behavior can yield insight into our hidden values.

To start this reflection process, use our assessment tool (see “What Values Drive Your Leadership?”) or simply consider the following questions: When it comes to personal investing, do you keep your savings in risky equities or stash them in capital-preserving funds? The answer to this question can indicate your tendency along the growth dimension. When it comes to interacting with people, do you enjoy a good argument or find those engagements stressful? And how do you feel about relying on existing knowledge versus developing new ideas? Now imagine your retirement: Are you more interested in finding ways to share your expertise or in signing up for classes to learn about a new subject?

Assessment: What Values Drive Your Leadership?

With enhanced self-understanding, leaders can strive to make less-biased choices. One way to begin investigating our own tendencies and building a values profile is to use the simple assessment tool and values map below, which we have used in our consulting work. In our experience, the knowledge gained by using this simple instrument can help leaders better manage, or even override, their subconscious leanings.

Take the assessment

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The answers to these questions offer a starting point for better understanding which of the opposed values we lean toward in each of the three areas — growth, ideas, and people.

How Our Values Shape Our Strategy

We make hundreds of decisions, large and small, that reflect our subconscious values. Whether we decide how aggressively to push for innovation, how much risk we are willing to accept, or how we enter new markets or territories, in all of these situations our values shape our choices, frequently without our being aware of it. For instance, favoring security or embracing risk will lead to drastically different strategic choices.6 When we tend toward risk, we will be more likely to explore new opportunities and create a bigger push for innovation or even disruptive projects. When our value system is more directed toward security, we will opt for a steadier path toward growth and choose multiple smaller projects to balance risk.

When our values lean more toward knowing than learning, we may like the status quo both in terms of our own as well as our team’s development. Rather than exploring new technologies, processes, or management practices, we prefer to stick to what we know.7 On the other hand, if we value learning, we will create an environment in which new ideas flow freely, we recruit people who have new ideas, and the development and growth of our people is a natural priority. This value dimension may thus also drive how we approach innovation and how open we are to change.

Regarding our values toward people, a tendency toward diversity means that we value discussion and a diverse set of opinions that also allow us to experiment. We believe that a certain level of arguments spices things up and leads to better results in the team.8 In contrast, if our value system favors harmony, we will create a more homogeneous team, in which quick discussions are the norm and decision-making is aligned. When creating a strategy, homogeneous teams may be less open to new trends and developments and thus tend toward a more steady strategy.

In summary, we can argue that the more our orientation is inclined toward risk, learning, and debate, the more our strategy will focus on dynamic adaption and innovation, whereas the more we lean toward security, knowing, and harmony, the more our strategy will favor a more consistent and long-term orientation.

Are Our Values Aligned With Our Company’s Goals?

Tim Cook is not Steve Jobs. Yet both executives led Apple at the right time — one in a phase of disruptive innovation that created an industry of its own, and one in a period of steady and strategic growth that made Apple the first company to surpass a valuation of a trillion dollars.

While it is crucial that leaders’ conscious personal values are aligned with their organization’s stated values, their subconscious values must also align with the approaches needed to attain organizational goals. Without that alignment, the executive’s values may drive the company in an undesirable direction with every major decision that is made.

Most of the time, we take for granted that executives’ values are aligned with their company’s goals. But often, that’s not the case, and it’s tough to address that, because values are stickier than we think and cannot be changed easily.9 In addition, many people are not even aware of their subconscious values or have not thought about how they shape their decisions and strategies.

Executives must have or develop sufficient insight into their own subconscious values to understand, and sometimes override, their tendencies — because they will scale their values throughout the entire organization.10 This is a consequence not only of the decisions that they make, but also the culture they create and whom they choose to hire. Many studies have shown that executives tend to hire employees who are like themselves and share their values.11 This creates a hidden force that underlies the company culture and affects every strategy, innovation, and transformation implemented in the organization.

Building the Right Teams for Change

As leaders, once we better understand our own values, we need to ask ourselves whether they match the goals of the company or division we are in. Maybe if we prefer growth and innovation, there is a new and upcoming business that we can manage rather than working to sustain a core business. And conversely, an executive oriented toward security and harmony might not be the best candidate for running a high-growth or new division.

If change is needed either by restructuring or by designing and implementing new strategic initiatives, senior executives should carefully consider the value dimension when deciding who should be responsible for carrying out the project. This is true both for individual executives and for teams.

Ensuring that the values of a team tasked with implementing change are aligned with the new company goals is crucial. This creates a common subconscious pull toward the desired outcome. It motivates the team and translates into a unified focus and strategy. This fit between the team and the revised goals can support transformation of the organization by gradually changing people’s mindsets and practices and ultimately aligning them with the new company goals.12

Examining ourselves and honestly recognizing our deep-seated preferences in the areas of risk, new ideas, and interpersonal relations can be challenging and uncomfortable. But the more self-knowledge we bring to decision-making, the better able we are to manage the extent to which we allow our subconscious values to steer our choices — and potentially move beyond our natural comfort zones to better align decisions with company goals.

The Hidden Values Driving Strategy

Global Economics Intelligence executive summary, October 2020

Economic recovery is sustained by manufacturing, trade, and the consumer sector; public health has been restored in China while European countries impose new restrictions amid rising COVID-19 levels.
Global Economics Intelligence executive summary, October 2020

Subscribed to future auto finance yet?

Auto financing’s future will be dynamic, disruptive, and different. Here’s our perspective on the European market.
Subscribed to future auto finance yet?

Five Fifty: The big experiment

Crisis-fueled experimentation has become a primary source of organic growth during the pandemic. But you’ve got to escape pilot purgatory first.
Five Fifty: The big experiment

How to find and maximize digital value in any M&A deal

Even when digital capabilities aren’t the centerpiece of a deal, they still can provide significant deal value with the right due diligence and integration planning.
How to find and maximize digital value in any M&A deal

China: Still the world’s growth engine after COVID-19

Consumers, one of the key drivers powering China’s economic rebound, have regained confidence and are spending at levels seen before the outbreak of the COVID-19 pandemic.
China: Still the world’s growth engine after COVID-19

How industrial companies can jump-start a rapid revenue recovery

Five analytics-driven go-to-market strategies can give organizations valuable insights to boost revenues.
How industrial companies can jump-start a rapid revenue recovery

To unlock better decision making, plan better meetings

How can senior managers get better, faster business decisions from the meetings they attend or lead? Planning is key.
To unlock better decision making, plan better meetings

Four Principles to Ensure Hybrid Work Is Productive Work

Leaders and the teams they manage are experimenting with new ways of working — both in the short term during COVID-19 and longer term for a post-pandemic world. The axes of work are pivoting simultaneously in terms of both place and time, with leaders designing hybrid ways of collaborating that have few precedents. It’s tough and, not surprisingly, causing confusion. How much flexibility around where and when people do their jobs is best? What strategies are most effective? Some CEOs envision that work will happen “anywhere” going forward, while others are asking employees to return to central office spaces. Some are accommodating flexible time commitments, while others are requiring their staffs to be available 9 to 5.

To find the right way forward, leaders must understand the axes of hybrid work — the upsides and downsides of where and when people work — and align them so that they feed the energy, focus, coordination, and cooperation needed to be productive.

In this article, I’ll lay out what I’m seeing in the evolution of hybrid workplaces and describe four emerging principles: Use office space to amplify cooperation, make working from home a source of energy, take advantage of asynchronous time to boost focus, and use synchronized time for tasks that require coordination.

The Axes of Hybrid Work: Place and Time

The place of work for many people has historically been the office. Separate from personal space and outfitted with all the furniture and technology necessary for people to do their jobs efficiently, the office has been a place of congregation, where people gather for one primary goal — to work.

During COVID-19, this has changed dramatically. For many people, work is now located in their personal spaces — their homes — while others are working in coffee shops, local hubs such as smaller satellite offices or flexible shared office space, or various combinations of remote locations.

But place is not the only axis that is pivoting.

There is now much flexibility around time — the periods when people are actively engaged in work. Time is being reassigned as schedules are extending into what was “private” time, with people fitting work into personal schedules that might include caring for family and friends, taking time out to keep healthy and fit, and even doing professional upskilling. At play is chronological time (based on a specific schedule, such as 9 to 5); synchronous vs. asynchronous time (the extent to which colleagues’ schedules coincide); and control of time (the degree of autonomy that can be exercised about work hours).

The Goal Is Productivity

To ensure that a hybrid work arrangement works, leaders have to build a context of place and time that accentuates rather than depletes productivity. As they do this, they need to consider the elements of productivity that are particularly sensitive to these features.

The essentials of productive work begin with energy. In most jobs, people are more productive when they experience positive vitality and well-being, and their productivity is depleted when they are exhausted or stressed and their working habits become unhealthy. The next essential for many jobs where real concentration is necessary is focus. When the context — that is, the place and time of work — allows people to focus, they can be highly productive. Their focus suffers when their context is distracting and their attention is scattered.

Beyond these independent aspects of work are those tasks that require teamwork. Some tasks demand significant coordination with others. When people can fluidly align with one another, they are able to be goal-oriented and efficient; when this alignment breaks down, teams become divided and disjointed. And then there are jobs and tasks that require teams to cooperate and actively share ideas in ways that enable them to ideate and innovative. When the contexts of place and time create barriers to cooperation, productivity can suffer. People can become resistant, and infighting can break out.

Choices about place and time present trade-offs. For example, with regard to place, working in an office aids cooperation because colleagues are better able to develop trusting face-to-face relationships, but it can also deplete energy if it involves a long commute and hours sitting at a desk. With regard to time, working constrained, inflexible hours aids coordination since colleagues’ time can be easily synchronized. But it depletes focus because it fails to respond to individual rhythms of concentration.

What these trade-offs mean is that while aspects of hybrid work have the potential to bolster productivity, they need to be designed with a level of intentionality about place and time that is not practiced in traditional work systems, where both aspects are constrained. This intentionality means understanding the crucial productivity drivers necessary for clusters of jobs (such as the ability to focus) and the context of work that best accentuates these drivers while being aware of the trade-offs. Addressing these design choices in ways that enable productivity to flourish will be crucial to facing the economic challenges stemming from COVID-19.

New Principles of Place and Time

I’ve been studying a range of companies to see how this intentionality is being played out. These are companies I was following even before the pandemic began. In a recent webinar for the companies in my research consortium that I hosted with HSM colleague Anna Gurun, we talked about the hybrid/productivity model. I asked the companies one question: How are you going to successfully navigate the next year of your company?

What I heard is hopeful: Across the world, some organizations are rapidly building practices and processes that enable them to use hybrid work to accentuate the elements of productivity (energy, focus, coordination, and cooperation). Others are honing procedures that have been their signature management practices for years. Taken together, we see the emergence of new principles for a productive workplace. They are designing short-term fixes to the challenges that COVID-19 has created while looking into the future to be sure that they build practices that are sustainable.

Place Principle: Design the Office for Cooperation

Being in the office is essentially a social activity. In my April column on how to help employees work from home with kids, I cited Stanford professor Nicholas Bloom’s celebrated study of call center workers who were given the option to work from home. After six months, over half wanted to return to the office, even with long commutes. They yearned for the sociability and face-to-face cooperation of being in a shared space with colleagues.

As companies begin to coax or expect employees to return to offices, it will be important to make the most of the experience. That will mean creating a place where cooperation and interaction can thrive right now while COVID-19 is still a concern — and in the longer term as hybrid work becomes the norm.

Making an office a place of cooperation depends a great deal on how a space is designed. This idea was uppermost for the global design group Arup and its design leader Joseph Correnza in building its Melbourne office. While the design decisions were made pre-pandemic, they were sufficiently flexible and “hackable” to be reconfigured for current circumstances while not losing the long-term aim of creating a highly collaborative, dynamic space allowing informal movement.

“We need these encounters with each other, and the quality of the space is crucial to how we listen and how we learn,” said Jenni Emery, Arup’s global people and culture leader. “We had to be really intentional and considered.” The number of closed offices was limited and much of the space was opened up. Sight lines across the entire building allow people to easily catch a glimpse of one another and see that they are part of something bigger. Emery says this has created all-important moments of serendipitous encounters. Cork flooring helps reduce the ambient noise and let human voices be heard.

I asked Correnza how a company without the mighty resources of Arup could approach this cooperative principle. He had three ideas: Reduce small personal spaces and give them back to cooperative space (when such seating arrangements are safe again); encourage teams to meet in the open, outside of meeting rooms, so others can feel the buzz; and move groups of people every quarter to new seating so that they meet new people.

Place Principle: Make Working From Home a Source of Energy

One of the overwhelmingly positive results of working from home during the pandemic is that people are able to reassign their former commuting time to activities that boost their physical energy (through exercise and recreation) and their emotional energy (by spending time with family and friends). Many home workers are also boosting their energy by walking in parks, eating healthy home-cooked food, and establishing closer links to neighbors.

That said, those with young children have found it tough to manage the boundaries between being a worker and a parent. If home working is to continue to be a source of energy in the longer term, it requires a level of intentionality in the expectations of both employees and employers.

For the telecom company BT, COVID-19 has created an opportunity to hone and accelerate its long-established home working principles. BT was, in 1992, an early adopter of large-scale, experimental work-from-home trials when call center operators showed that, even using rudimentary technology, there was a positive impact on their energy, well-being, and productivity. Since then, BT has steadily introduced new technologies to support the significant proportion of its workforce who were remote workers even before the pandemic sent more people home.

When Nicola J. Millard, a principal innovation partner at BT, studied the most-veteran home workers, she found that their home office setups played a key role in their success. While each remote worker had fashioned a unique space, what made a real difference was having a separate room, a large computer screen, and a good chair. Rituals also were important, including dressing in work clothes and following a “getting ready” routine as if they were leaving the house.

Many of these veterans also maximized their energy by using technology to ensure that they maintained boundaries between “on” time, when they were available to respond and collaborate with others, and “off” time, when they could engage in energy-boosting activities. They took proper lunch breaks and made sure they symbolically left the workplace at the end of the day. They also negotiated with family and colleagues so these boundaries would hold up.

Culture and management style is essential, Millard explained. “We have used our communication platforms to build lots of virtual team check-ins so people don’t feel isolated, and we engineer virtual encounters like ‘virtual coffee’ so people have a chance to chat with people they don’t know so well.” Most important, BT home workers have been able to succeed in this model. “We’ve really learned that focusing on outcomes rather than being present in the office is crucial,” said Millard. That has meant developing processes for virtual performance management that include regular team check-ins, one-on-one conversations, and monthly reports to management.

Time Principle: Let Asynchronous Time Boost Focus

There are some jobs for which focus is a primary productivity driver. Crafting a schedule that allows employees to disconnect for a solid five hours to concentrate, and at a time that fits their natural energy rhythms, can be hugely beneficial, whether they do this in a corporate or a personal space. For these people, asynchronous schedules are ideal.

The Washington-based consulting practice Artemis Connection was built around giving its people the tools to work on complex tasks that require deep concentration, creativity, and focus. CEO Christy Johnson explained to me that to be focused and productive, everyone is able to define and control their time in terms of when — and how much — they work.

What lies behind the capacity is a well-honed project management system. Each piece of work is divided into its component tasks and analyzed based on the likely amount of time needed to achieve them. They are then bundled up into 15- to 20-hour blocks. These blocks are then considered within the group and assigned to individual employees. “For example, we are scoping a client project to write an intelligence brief,” said Johnson. “We think it’s going to be roughly 60 hours of work a week, in three 20-hour blocks. We look at the permutations — for example, one person doing two blocks and another doing one.”

Employees can decide that their maximum focus time is 20 hours a week, while others can take on more. An up-front agreement of time and tasks “ensures that work won’t expand to fill the time,” said Johnson. It also means that people can work at their own rhythms. “For example, my best work is when I intensely focus for 90 minutes and then take a break,” said Johnson.

For many Artemis employees who have come out of the big consulting firms, owning their time is a real source of liberation.

Time Principle: Enable Synchronized Time to Be the Basis of Coordination

While some tasks are best fulfilled when people can focus and work on their own, others require coordinating in real time on projects with in-the-moment dialogue and feedback.

Typically, synchronized time occurs naturally because people are in the same place at the same time. But technological advances have enabled the design of synchronized time that is place-agnostic and where it is possible to create opportunities for fruitful, real-time virtual interactions. That was the insight of Selina Millstam, who heads up talent management and culture change at the Swedish communications technology company Ericsson. Her goal was to have a companywide conversation that would encourage people to share and coordinate their beliefs about which values and behaviors would be crucial to the long-term success of the business. The moderated conversation took place over 72 hours, with more than 95,000 employees across 180 counties invited to participate.

Employees were asked to set aside time to join the online dialogue. Facilitators from locations across the world kept the jam from being a chaotic free-for-all. For example, when people joined in the first hours, they were encouraged to jump onto conversational threads about each of the focus areas being driven by the culture change initiative. The shared time allowed people in different time zones to connect. For instance, a software developer in India talked at length to a customer relations person in Germany, creating an important thread to which others contributed. “There was something raw and authentic about listening to people speak and contemplate in the moment,” said Millstam.

Each participant was encouraged to reengage with the exchange in an asynchronous way as well over the three days — creating, in the end, more than 20,000 conversational threads.

Looking Forward

Every organization will have to brainstorm how to heighten energy, focus, coordination, and cooperation to make hybrid work productive work. I suggest that leaders keep four recommendations in mind in the coming weeks and months:

Don’t move too fast. Individual preferences will take time to become clear. It took six months of home working for the Bloom study participants to decide they wanted to return to the office. And in the early stages of the BT experiments, the productivity of home workers fell sharply before rising. Be wary of making early decisions that will have long-term effects — leave your options open.

Keep the trade-offs in mind. In designing new ways of working, be prepared for the downsides of each model. Working from home will boost energy, but it will also deplete cooperation. Managing these trade-offs takes creativity — such as the way the BT team established satellite offices for people living in similar communities to come together occasionally.

Resolve to experiment. There is a great deal we do not yet know. It is crucial to be prepared to take risks. The team at Ericsson overcame the challenges of virtual coordination by using a state-of-the-art online participative and facilitated platform. It took courage to do so — but along the way, team members learned how to encourage chance meetings across the organization.

Nurture the leadership skills that managing preferences will require. The variety of combinations of time and place that are possible will require highly competent and motivated leaders committed to making this work. It will require a degree of intentionality that has not been necessary in traditional working practices. For leaders, that means being empathic and listening to individual needs while also being creative in developing solutions.

Four Principles to Ensure Hybrid Work Is Productive Work