Transformation in Latin American companies McKinsey
1 day ago · Companies commonly use two approaches to set goals: they embrace incremental targets with the hope of building momentum and of ensuring that the entire organization shares the burden, or—more typically—they establish low targets with an “underpromise to overdeliver” mindset. This approach is flawed for three main reasons.
Actived: 7 days ago
How companies can turn the Great Resignation into the
Companies are struggling to address the problem, and many will continue to struggle for one simple reason: they don’t really understand why their employees are leaving in the first place. Rather than take the time to investigate the true causes of attrition, many companies are jumping to well-intentioned quick fixes that fall flat: for
The global company’s challenge McKinsey
At the same time, many companies find deploying and developing talent in emerging markets to be a major challenge. Barely half the executives at the 17 global companies we studied in depth thought they were effective at tailoring recruiting, retention, training, and development processes for different geographies.
How global companies can manage geopolitical risk …
Companies may want to gather internal and external perspectives before deciding what to include in market compacts. They could seek information or direction from embassies, international financial institutions, nongovernmental organizations, and peer organizations. Cultivating such a local risk-management network with key stakeholders and
Tough choices for consumer-goods companies McKinsey
Companies that fail to adapt to these changes—or that make suboptimal choices—will be left behind by more thoughtful, action-oriented competitors. About the author(s) Jim Brennan is a principal in McKinsey’s New Jersey office, Greg Kelly is a director in the Atlanta office, and Anne Martinez is a specialist in the Stamford office.
Critical infrastructure companies and the global
Whether they generate or distribute power, or extract or refine oil, gas, or minerals, heavy industrial companies comprise critical infrastructure for the global economy. As a result, they are attractive targets for cyber crimes. Already by 2018 nearly 60 percent of relevant surveyed organizations had experienced a breach in their industrial control (ICS) or …
McKinsey Downloads: Reports and collections McKinsey
The McKinsey Download Hub. Download McKinsey’s signature reports and special collections on the management issues that matter, from leading through the COVID-19 crisis to managing risk and digitizing operations. For our most recent articles, see our featured insights and coronavirus collection pages.
Valuation: Measuring and Managing the Value of Companies
John Wiley & Sons, 2020 | Tim Koller, Marc Goedhart, David Wessels. Valuation: Measuring and Managing the Value of Companies, celebrating 30 years in print, is now in its seventh edition (John Wiley & Sons, June 2020).Carefully revised and updated, this edition includes new insights on topics such as digital; environmental, social, and governance issues; and long-term …
Specialty-chemical companies create value McKinsey
Specialty chemicals is a diverse market that includes more than 50 chemical value chains across a broad spectrum of products, such as additives, adhesives, flavors, and engineering polymers. Market players include both pure-play companies focused on only one or two value chains and conglomerate players that participate in multiple chains. 00:00.
Emerging economies and the companies that propel them to
For companies in high-income countries, the developing world has thus become both an opportunity for growth and the source of tough new global competition. The rewards for the successful companies that stay on top are substantial: the top 10 percent of large companies with respect to value creation, in the outperforming emerging countries
What happened to the world’s “greatest” companies
Great companies were more likely to do really badly than really well. Their odds of outperforming the market were 52-48, hardly better than a coin toss. But there are more big losers than big winners on the lists. Just eight companies outperformed the index by more than 5%, while twice that number underperformed by the same percentage.
How companies capture the value of sustainability: Survey
companies do on translating the sustainability strategy into definite terms: value creators are significantly more likely to establish clear and focused priorities, set targets or goals, and develop key performance indicators for sustainability (Exhibit 3).
Strategy for a digital world McKinsey
By accelerating digital adoption, the COVID-19 pandemic has widened the gap between the top and bottom companies on the power curve of economic profit, 1 amplifying winner-takes-most dynamics and further separating digital leaders from also-rans. Competitive differentiation, now more than ever, emerges from superior digital capabilities and
How can companies improve diversity McKinsey
Companies collectively spend hundreds of millions of dollars on DE&I initiatives, implementing a range of programs to reach out to a diverse talent pool and to create a culture that supports workers from all backgrounds. For good reason: McKinsey research has shown that large companies in the top quartile for ethnic and cultural diversity
How COVID-19 has pushed companies over the technology
companies in all sectors and regions do business. According to a new McKinsey Global Survey of executives,1 their companies have accelerated the digitization of their customer and supply-chain interactions and of their internal operations by three to four years. And the share of digital or digitally enabled products in their portfolios has
How companies in the CPG industry can sell online
E-commerce profitability has therefore been a challenge for CPG companies. In this episode of the McKinsey on Consumer and Retail podcast, McKinsey’s Lidiya Chapple and Tatiana Sivaeva explain how CPG companies can profitably meet online consumers’ needs. An edited transcript of their conversation with executive editor Monica Toriello follows.
Industrial gas companies advancing through technology
Industrial gas companies can apply Industry 4.0 tools throughout the value chain, such as advanced analytics to enhance plant efficiency or optimize bulk or packaged gas deliveries. Digital and analytical tools could also help strengthen supply chains that are especially crucial during the COVID-19 crisis—particularly ones that involve
Winning the race with inflation: The pricing opportunity
Companies should take three main steps to make consistent price improvements: set the right price, optimize discounts and rebates, and manage leakage (Exhibit 3). We have honed these pricing levers through real-life application and back-testing across hundreds of industrial product families. Here, we briefly explore five of the ten levers.
Forward Thinking on making labor markets work smarter--for
Companies could do a lot and would have a high ROI to invest in the talent supply chain through their physical supply chain, through their suppliers, because suppliers don’t have the money to invest as fully in training as they do. But their suppliers are actually where they’re getting their talent because they’re poaching and people are
From good to great in digital: The opportunity for Belgian
Financial-services companies exhibit an effective organizational structure and clearly defined roles for digital and analytics initiatives (67 percent versus just 33 percent for Belgian companies overall), while public and social sector organizations are strong in linking their digital and analytics strategy to the broader business strategy (67
How industrial companies can put ecommerce at the heart of
As companies expand their e-commerce presence, they will need to continue to emphasize customer satisfaction and deliver a seamless omnichannel experience. The e-commerce site itself must be informative, and digital transactions should provide the same value as in-person interactions, or else be supplemented with live interactions where
Organizing for sustainability success: Where, and how
More companies, and their investors, are recognizing sustainability as a strategic priority that involves significant business risks and opportunities. But historically, few companies have organizational structures that are designed to treat sustainability as a material business issue. Instead, sustainability activities—and the organizations
How can companies make hybrid work a success
The Great Attrition: Facing the labor shortage conundrum
Please email us at: [email protected]com. If this labor shortage continues, there will be rising wages, inflation, and supply chain issues in the short term. In the long term, it could halt GDP growth, induce a recession, and cripple the future expansion of sectors dominated by blue-collar and manual workers.
The technology imperative for life sciences companies
Leading companies have a highly skilled workforce with a high proportion of new digital skills (design, engineering, data science, and digital-product ownership). To support this, career tracks that encourage technical growth as well as managerial growth (rather than only celebrating managerial growth), along with different incentive models
How corporates and start-ups can collaborate successfully
Companies will say, “We will run five experiments with R&D. Here is an interesting technology, here is a use case that worked.” But they don’t think about the full pathway across the development life cycle. The pilot needs to give you a good proof of concept, the confidence about a product–market fit that can move on to something bigger
Enterprise-risk-management practices: Where’s the evidence
Companies can periodically challenge these documents and compare them with the risks that competitors take when this information is available. Moreover, they can detect breaches of the risk appetite and trigger predesigned contingency and escalation measures, thus making the risk appetite and strategy a meaningful tool for steering the company.
Enterprise agility: Measuring the business impact McKinsey
This is also relevant for B2B companies, or parts of B2B companies, in which speed can have a large impact on capital expenditure. An oil and gas company, for example, wanted to reduce the time it took to plan and design a new oil well. The health and safety implications of drilling rely on a variety of technical skills and require large
Technology, Media & Telecommunications Insights McKinsey
Managing growth and value creation in SaaS: An interview with a software leader. November 8, 2021 – Sue Barsamian, a veteran executive who now sits on several software company boards, discusses growth, product–market fit, new tools for better metrics, and diversity in the C-suite and boardroom. Podcast.
Digital therapeutics and pharma McKinsey
If digital-therapeutic companies take these questions seriously and show—through randomized clinical trials and real-world settings—that they can deliver lower costs and improved population health, there’s a fair chance payers will speed up adoption.
A new portfolio model for Pharmaceutical & Medical
Companies such as Datavant and VantAI, as well as those with a central manufacturing capability, such as ElevateBio, are emerging as important forces in the pharma-services landscape. In this way, a new wave of vendors could emerge to compete with existing contract research organizations, contract development-and-manufacturing organizations
SaaS and the Rule of 40: Keys to the critical value
Annual recurring revenue (ARR) growth: This measure reflects a company’s ability to drive topline growth, crucial for Rule of 40 performance since revenue lags behind ARR for SaaS companies (the median for top-quartile SaaS companies is 45 percent; bottom quartile is 14 percent). Net retention rate: An important measure of growth efficiency
Five keys to digitizing aerospace and defense companies
Companies should start with a long menu of potential initiatives, ranging from those aimed at powering growth with better products, services, and customer experiences, to those seeking greater efficiency in operations such as engineering, supply-chain management, and back-office support (Exhibit 1).
Why diversity matters McKinsey
McKinsey has been examining diversity in the workplace for several years. Our latest report, Diversity Matters, examined proprietary data sets for 366 public companies across a range of industries in Canada, Latin America, the United Kingdom, and the United States.In this research, we looked at metrics such as financial results and the composition of top …
Organization Design People & Organizational Performance
Organization redesign is inevitable—half of organizations have gone through a redesign in the last two years and the other half expect to in the next two years. The benefits of a successful redesign are clear: faster growth, better decision making, and greater efficiency. But fewer than a quarter of redesign efforts actually improve performance.
The new marketing model for growth: How CPGs can crack the
From there, companies that decide there is enough positive ROI from pursuing a direct connection with consumers should work toward building their own customer-data platform (CDP), which will house complex consumer-data sets and send out relevant messages backed by insights from the intelligence engine. For instance, brands in higher-engagement
Change in the Japanese pharma industry McKinsey
Some companies have begun using analytics and artificial intelligence to support the sales organization—for instance, by recommending the approach and content of personalized information for physicians, suggesting which physician to visit, and deploying chatbots for multiple first-line communication opportunities. 11
The importance of customer experience in developing pharma
Companies also need to support their new customer journeys with mind-set shifts, such as getting their organization comfortable with prototyping. Incentives should be redesigned where possible to focus on journeys and reward customer satisfaction and sales uptake rather than number of touchpoints. Finally, IT needs to be flexible and powerful
LGBTQ inclusion in the workplace McKinsey
Diana Ellsworth: Some companies have ally programs. Visual signals, like allyship stickers, can really have an influence. We’re talking during Pride Month, and if you scroll through LinkedIn, you’ll see many corporate logos that feature rainbows. Similarly, more B2B companies are marching in Pride parades or sponsoring Pride events.