1144 Posts found for Source: McKinsey Quarterly

Artificial intelligence is set to revolutionize strategy activities. But as AI adoption spreads, strategists will need proprietary data, creativity, and new skills to develop unique options.

Content: Article | Authors: Alexander D’Amico, Andrea Tricoli, Antoine Montard, Bruce Delteil, Eric Hazan | Source: McKinsey Quarterly | Subjects: IT / Technology / E-Business, Strategy

There are two problems with relying so much on data.

The first problem is our desire to make business a science and identify cause and effect in isolation. The outcomes of so many decisions that companies make are not determined by inescapable laws of science. They’re determined by the actions of leaders who have agency to affect those outcomes.

The second problem with data is that when … [ Read more ]

Content: Quotation | Author: Zeynep Ton | Source: McKinsey Quarterly | Subjects: Decision Making, Management, Organizational Behavior

In a divestiture, companies must overcome the complexities of disentanglement.

Content: Article | Authors: Anna Mattsson, Jamie Koenig, Tim Koller | Source: McKinsey Quarterly | Subject: Mergers & Acquisitions

While your strategic goals may be the right ones, is the organization built to achieve them? New research reveals a dynamic system that creates value in the face of volatility.

Content: Article | Authors: Alexis Krivkovich, Amadeo Di Lodovico, Brooke Weddle, Dana Maor, Deepak Mahadevan, Richard Steele | Source: McKinsey Quarterly | Subjects: Best Practices, Management

Leadership is about disappointing people at a rate they can absorb.

Content: Quotation | Author: Marty Linsky | Source: McKinsey Quarterly | Subject: Leadership

Build self-awareness to build mutual awareness. If you don’t understand yourself—your work style preferences, your motivators, your strengths, your blind spots—you’re going to have trouble being an effective manager and a leader.

Content: Quotation | Author: Claire Hughes Johnson | Source: McKinsey Quarterly | Subjects: Leadership, Management, Personal Development

We always talk about scaling companies, but companies are just collections of people. If you’re not really thoughtful about them and what they need to succeed, it’s going to be hard to succeed as a company.

Content: Quotation | Author: Claire Hughes Johnson | Source: McKinsey Quarterly | Subjects: Entrepreneurship, Management, Organizational Behavior

There should be two tracks for promotions. Some people are promoted for their expertise, and others are promoted for their people management skills. So keeping those separate is key.

Content: Quotation | Author: Bryan Hancock | Source: McKinsey Quarterly | Subject: Human Resources

Net present value is the bedrock of ROI estimates, but adding other factors to the analyses can help business leaders see how projects can advance corporate priorities beyond financial returns.

Content: Article | Authors: Chris Griggs, Kate Siegel, Mary Helen Matthews, Matt Banholzer | Source: McKinsey Quarterly | Subject: Finance

When appropriate, pay the best middle managers even more than your senior leaders to show how much you value them. If you hear complaints from the executives, make up the difference in equity. Compensation should be commensurate with the value a role creates.

Content: Quotation | Authors: Bill Schaninger, Bryan Hancock, Emily Field | Source: McKinsey Quarterly | Subjects: Compensation, Human Resources, Organizational Behavior

What makes a high-performing innovation team is a diversity of perspectives and experiences, but in a psychologically safe space so that team members can actually share openly, come up with a common vocabulary, and look at the problem through very different lenses.

Content: Quotation | Author: Erik Roth | Source: McKinsey Quarterly | Subjects: Innovation, Organizational Behavior, Teamwork

Team triumphs individuals. This is key. You want to have a unicorn culture eventually, but the team is more important. This implies that probably we need to redefine high-performing individuals.

What is a high-performing individual? This is what the unicorn idea does. A high-performing individual is not just the one who achieves business results. Unfortunately, too many times that’s the key criteria, the ability to perform … [ Read more ]

Content: Quotation | Author: Mauro Porcini | Source: McKinsey Quarterly | Subjects: Management, Organizational Behavior

We apply the three field tests of design thinking to every function of the company. The first is desirability, people, and human beings—what they want. The second is visibility: the technology of and applied to your product, plus process and manufacturing. Does it make sense for my company? Can I scale it up? The third lens is the business lens, the viability. Do I have … [ Read more ]

Content: Quotation | Author: Mauro Porcini | Source: McKinsey Quarterly | Subject: Management

This is one of the problems of focusing on the short term. You have many leaders that rotate every two, three years, so the idea that they’re going to invest part of their budget in something that’s going to generate value for the next manager, it’s not that attractive. So we need to rethink the way we reward these leaders and connect them to long-term … [ Read more ]

Content: Quotation | Author: Mauro Porcini | Source: McKinsey Quarterly | Subjects: Management, Organizational Behavior

The second phase of my [new culture building] journey was the hidden rejection. People were rejecting me, but I was not aware of it. This is very typical when you try to change culture in any kind of organization. I learned something at that moment that changed the trajectory of my professional journey in these companies: every time I pitch an idea, I ask the … [ Read more ]

Content: Quotation | Author: Mauro Porcini | Source: McKinsey Quarterly | Subjects: Change Management, Culture, Organizational Behavior

Leading companies are using transformation to achieve profitable growth—enabled by specific behaviors.

Content: Article | Authors: Drew Goldstein, Louisa Greco, Preeya Mody, Rebecca Doherty, Sandra Sancier-Sultan, Yolanda Zonno | Source: McKinsey Quarterly | Subjects: Best Practices, Management

When employers say the labor market’s tight, it’s that they can’t find people in the way they’re used to looking for people. And we have to ask them questions like, “Who are you considering? How are you getting applicants? What do you have in your ad?” Because we also see employers who will often advertise for more credentials than they need. And then we see … [ Read more ]

Content: Quotation | Author: Betsey Stevenson | Source: McKinsey Quarterly | Subjects: Hiring, Human Resources

We see this correlation between well-being and higher earnings. What’s important is that whatever’s contributing to that ability to earn higher earnings, that ability for the country to be richer, is, in some way, contributing to higher well-being to the population.

And so people who say what they care about is higher well-being do have to be concerned with economic growth. Now, that said, it’s also … [ Read more ]

Content: Quotation | Author: Betsey Stevenson | Source: McKinsey Quarterly | Subject: Economics

This idea that all that mattered was your income relative to others was an idea known as the Easterlin paradox. So we did the simplest possible thing an economist could do, which is we gathered as much data as we could from all around the world. And we confirmed it’s absolutely true that within a country at a point in time, richer people are happier … [ Read more ]

Content: Quotation | Author: Justin Wolfers | Source: McKinsey Quarterly | Subject: Economics

There are a large number of people who say the measure of a country is not its GDP—it’s the smiles, it’s the hugs, it’s the joy. It’s more than just that. It’s the meaning. And that’s true. But that doesn’t make economics irrelevant. It just says we should measure those things.

Content: Quotation | Author: Justin Wolfers | Source: McKinsey Quarterly | Subject: Economics