Private Equity’s New Challenge

A changed competitive landscape calls for a different business model.

Encountering Turbulence

As major airlines in the US and Europe restructure or seek bankruptcy protection from their creditors, they have no shortage of culprits-from the September 2001 terrorist attacks to the war in Iraq and surging oil prices-to blame for the problems that have plagued them in recent years. The biggest threats, however, may be more structural. Low-cost carriers have drawn travelers away from the major hub-and-spoke … [ Read more ]

High-Tech Mergers Take Shape

High-tech companies should anticipate the sector’s imminent restructuring by preparing for more deals – some hostile – and perhaps by repositioning themselves, through changing scale and scope, within an evolving industry structure.

Editor’s Note: a bit topical…

The Strategic Value of Web Services

This McKinsey Quarterly Reader contains several articles focused on web services. In “Edging into Web services”, John Hagel points out that too much value lies at the fringes of organizations, where they interact with their partners, to leave the problem of uiversal connectivity unsolved. He argues that the technology will take off first at the connections among collaborating companies and then after proving its worth … [ Read more ]

David Pitt-watson

David Pitt-Watson, the author of the Hermes Principles and managing director of HFAM, runs the UK Focus Fund.

Flexible IT, Better Strategy

IT’s critics say that it lacks strategic importance. So why does technology keep getting in the way of good strategy?

Better Branding

Marketers rely too much on intuition. The key to building brands more scientifically is to combine a forward-looking market segmentation with a better understanding of customers and a brand’s identity.

Editor’s Note: discusses Pathway modeling as an improvement/alternative to techniques like conjoint analysis…

Preparing for a financial crisis

Companies can do much to avoid falling victim to sudden national financial emergencies. Although the tally of such events is rising, many businesses remain unprepared for them.

Running with Risk

It’s good to take risks – if you manage them well.

Can Chinese Brands Make it Abroad?

The answer is yes, but it won’t be easy.

Emerging markets aren’t as risky as you think

Are emerging markets riskier than developed ones? Not if you take a portfolio perspective on corporate investments.

How Businesses Can Combat Global Disease

Multinationals are directly affected by the global epidemic. It can’t be controlled without them.

Change Across the Board

In response to the crisis of US corporate governance, directors are beginning to demand change. McKinsey surveyed 200 of them sitting on some 500 boards and found support for making these bodies more independent of management and for more awareness by directors of the challenges and risks facing their companies. The authors present a seven-part board governance reform program intended to make boards more independent … [ Read more ]

Teamwork at the Top

Increasingly, the top team is essential to the success of the enterprise. Research shows that merely bringing in a new chief executive officer to reshape an organization has mixed results. In reality, long-term success depends on the whole leadership team, for it has a broader and deeper reach into the organization than the CEO does and its performance has a multiplier effect-a poorly performing team … [ Read more ]

How Executives Grow

A McKinsey survey shows that most companies are poor at developing their executives-often, because of a belief that talent will rise by itself or that needed skills can always be brought in from outside. But leaving executive development to chance is risky.

The take-away:
Companies need to focus much more on developing internal talent. They should follow five principles: ensuring that executive development is a … [ Read more ]

Company Philosophy: ‘The Way We Do Things Around Here’

In this adaptation of a chapter from The Will to Manage (1966), by the late McKinsey managing director Marvin Bower, the author writes that a company’s philosophy evolves as a set of rules or guidelines that gradually become established, through trial and error or through leadership, as expected patterns of behavior. Bower, who died in January 2003, explores five such basic beliefs found in the … [ Read more ]

Designing IT for Business

With business leaders calling the shots, some leading companies are transforming their IT architecture by grouping increasingly complex systems into “domains” – sets of applications and databases that have a business rationale for being managed together. The goal is to turn what often resembles a plate of cooked spaghetti, with thousands of applications and databases dispersed across the architecture, into logical blocks with a minimum … [ Read more ]

The Future of Product Development

For the past couple of decades, product developers have improved their performance largely by making the process more disciplined and rigorous. Such improvements can no longer satisfy the increasing demand for better products launched more frequently and aimed at ever-narrower customer segments. Companies must now turn their attention to building a more nimble and flexible product-development organization. To do so, they will have to focus … [ Read more ]