1159 Posts found for Source: McKinsey Quarterly

Several trends are creating a new imperative for strong portfolio management of businesses. Companies need six capabilities to build and manage a winning portfolio, using M&A strategically.

Content: Article | Author: Marc Augustin | Source: McKinsey Quarterly | Subjects: Mergers & Acquisitions, Strategy

The most ancient and still crucial element of strategy is focus. In military terms, it is the concentration of force on an opponent’s weakness. More generally, it is the coordinated application of resources and effort to an important yet addressable challenge. Strategic focus means bringing sources of power to bear on a selected target. If the power is weak, nothing happens. If it is strong … [ Read more ]

Content: Quotation | Author: Richard Rumelt | Source: McKinsey Quarterly | Subject: Strategy

To execute strategy well, one must consider the logic of challenges instead of wished-for end states. At a moment in time, a properly configured strategy is a mixture of policy and action designed to surmount a high-stakes challenge. (Were the challenge not high stakes, it would not be called strategic.) It is not a financial goal, or a plan for hitting a financial goal, or … [ Read more ]

Content: Quotation | Author: Richard Rumelt | Source: McKinsey Quarterly | Subject: Strategy

Forward-looking companies think carefully about communications—not just in terms of what resonates with investors, but with a range of stakeholders; and not just communications for the sake of announcing to others but in order to learn, become smarter, and improve as an organization. Employees are a key constituency and are invariably an important source of insight. Companies can also continuously improve by engaging through trade … [ Read more ]

Content: Quotation | Authors: Dame Vivian Hunt, Donatela Bellone, Hamid Samandari, Lucy Pérez, Robin Nuttall | Source: McKinsey Quarterly | Subjects: Communication, Organizational Behavior, Public Relations

Forward-looking companies recognize that they cannot be distinctive by pursuing every initiative that qualifies as ESG. To the contrary: because they have a clear understanding of their strategy, and their own strengths and gaps, they focus on identifying initiatives that matter most to their business models. ESG is an essential strategic concern, which means it affects how and where a company competes.

Content: Quotation | Authors: Dame Vivian Hunt, Donatela Bellone, Hamid Samandari, Lucy Pérez, Robin Nuttall | Source: McKinsey Quarterly | Subject: Social Responsibility (ESG)

Decades of research show the efficacy of programmatic M&A—and our latest findings make it even more clear. Whether external conditions are favorable or challenging, programmatic acquirers continue to invest in their M&A capabilities and demonstrably outperform companies that take a less strategic approach to M&A.

Content: Article | Authors: Cathy Lian, Patrick McCurdy, Paul Daume | Source: McKinsey Quarterly | Subjects: Best Practices, Mergers & Acquisitions

The huge impact of culture on M&A performance means that culture should be factored into integration planning from the start. We recommend focusing on five cultural attributes.

Content: Article | Authors: Emily O’Loughlin, Jocelyn Chao, Kameron Kordestani, Rebecca Kaetzler | Source: McKinsey Quarterly | Subject: Mergers & Acquisitions

This article consolidates insights from around 100 senior leaders on five common dilemmas that complicate their ability to lead in the face of competing priorities.

Content: Article | Authors: Gautam Kumra, Janice Koh, Jennifer Chiang, Joydeep Sengupta, Mukund Sridhar | Source: McKinsey Quarterly | Subject: Corporate Governance

Automation and artificial intelligence are poised to reshape the finance function. Knowing what to automate and managing the disruption can lead to a new era of productivity and performance.

Content: Article | Authors: Frank Plaschke, Ishaan Seth, Rob Whiteman | Source: McKinsey Quarterly | Subjects: Finance, IT / Technology / E-Business

There are things the company needs to do. Those things are activities. Those activities convert to tasks. Previously, those tasks probably were grouped together into a set of responsibilities. We called that a role and drew a box around it. Now, we’re questioning all the tasks and asking what skills we need to feel confident that a person can accomplish the task. That’s matching task … [ Read more ]

Content: Quotation | Author: Bill Schaninger | Source: McKinsey Quarterly | Subjects: Human Resources, Organizational Behavior

A digital talent marketplace creates more transparency and visibility into open opportunities. Additionally, we know that it can reduce bias. As we think about this from the diversity, equity, and inclusion [DEI] lens, we know that women are much less likely to apply for jobs if they don’t meet the qualifications. We often hear that a man will apply for a job if he has … [ Read more ]

Content: Quotation | Author: Emily Field | Source: McKinsey Quarterly | Subjects: Diversity, Human Resources

At companies with top-performing cultures, there’s actually slightly more tension because they’re turning toward problems together. In bad cultures, a problem comes up, and people kind of turn away from it, right? In good cultures, they get super interested and turn toward it. They will have vibrant arguments about which idea is best because those arguments are taking place in the bounds of safe connection. … [ Read more ]

Content: Quotation | Author: Daniel Coyle | Source: McKinsey Quarterly | Subjects: Culture, Organizational Behavior

McKinsey research suggests that society is a key source of meaning for employees, along with company, customer, team, and individual. Together, they make up a collective, integrated whole that leaders can address.

Content: Quotation | Authors: Brooke Weddle, Tera Allas | Source: McKinsey Quarterly | Subjects: Human Resources, Motivation, Organizational Behavior

Maslow’s famous hierarchy of needs was both right and wrong at the same time. On the one hand, it recognized that people have many desires in addition to basic bodily needs such as water, food, and shelter. On the other hand, it assumed a fixed hierarchy where psychological needs—such as belonging and self-esteem—became relevant only after basic physical and safety needs were met. However, modern … [ Read more ]

Content: Quotation | Authors: Brooke Weddle, Tera Allas | Source: McKinsey Quarterly | Subjects: Organizational Behavior, Personality / Behavior

Revenue growth is good. Profitable growth is better. Profitable growth that advances ESG priorities is best. Here’s how outperformers who actively choose growth deliver the growth trifecta.

Content: Article | Authors: Anna Koivuniemi, Claudia Kampel, Lucy Pérez, Rebecca Doherty, Werner Rehm | Source: McKinsey Quarterly | Subjects: Best Practices, Social Responsibility (ESG)

Adaptation doesn’t really exist as a quality on its own. Adaptation lies in having at the ready a repertoire of available responses… Adaptation means having a tool kit of backup preparedness: people, plans, responses, ideas, possibilities, attitudes, and equipment that allow you to construct solutions quickly.

[…]

Adaptation requires a mindset that deals with uncertainty. That’s not a mindset so much of seeking ever-increasing profits and … [ Read more ]

Content: Quotation | Author: W. Brian Arthur | Source: McKinsey Quarterly | Subjects: Management, Organizational Behavior

In a very stable world, where you know the probabilities and the risks, you can optimize. But even in that case, I would counsel against optimizing with a narrow criterion. I don’t think that is ever a good idea, because it brings brittleness to a system. This is because when a system is optimized, all its parts need to work properly, and some are going … [ Read more ]

Content: Quotation | Author: W. Brian Arthur | Source: McKinsey Quarterly | Subject: Management

In a world where we don’t trust the ground we stand on, what really counts is adaptation or resilience.

Content: Quotation | Author: W. Brian Arthur | Source: McKinsey Quarterly | Subjects: Management, Organizational Behavior

Organizations that successfully pull off a high-performing transformation don’t choose between either holistic performance or business reinvention. They pursue both.

Content: Article | Authors: Cesar Okajima, Fábio Stul, José Pimenta da Gama, Sara Pliego | Source: McKinsey Quarterly | Subject: Change Management

A data-driven look at the link between the strategic moves of new CEOs and the performance of their companies highlights the importance of quick action and of adopting an outsider’s perspective.

Content: Article | Authors: Kurt Strovink, Michael Birshan, Tom Meakin | Source: McKinsey Quarterly | Subject: Corporate Governance