1166 Posts found for Source: McKinsey Quarterly

If you can achieve consistent growth, that’s the surest ticket to outperformance, but only 10 percent of companies manage to do that over a decade. Those that can’t should consider a strategy we call “shrink to grow.” This is like pruning back and then growing from there. Over a ten-year period, you may have one or two major dips in your growth that represent large … [ Read more ]

Content: Quotation | Authors: Chris Bradley, Rebecca Doherty | Source: McKinsey Quarterly | Subjects: Management, Strategy

Programmatic M&A is making a series of acquisitions to support a single business theme or strategy. You might do one or two larger anchor acquisitions, then you would follow up with smaller ones to build out the business. The idea is that you develop capabilities to both identify acquisition targets and integrate them, so M&A is a capability in the same way that sales and … [ Read more ]

Content: Quotation | Author: Rebecca Doherty | Source: McKinsey Quarterly | Subject: Mergers & Acquisitions

Oftentimes, companies think that growth is sacrificial—you have to endure long periods of low profit to generate growth. That is not true. The order is not growth followed by profit; it’s high returns followed by growth. In fact, companies that begin with returns on capital higher than the cost of capital go on to grow at double the rate of those that don’t start out … [ Read more ]

Content: Quotation | Source: McKinsey Quarterly | Subjects: Management, Strategy

When is the last time you took stock of your customer base? Two marketing and data experts say it’s due for a systematic review.

Content: Article | Authors: Anita Balchandani, Michael Ross, Peter Fader | Source: McKinsey Quarterly | Subjects: Customer Related, Marketing / Sales

Driving sustainable, inclusive growth requires the right mindset, strategy, and capabilities. Here are some steps that could help foster successful growth.

Content: Article | Authors: Andre Gaeta, Biljana Cvetanovski, Erik Roth, Greg Kelly, Ishaan Seth, Jill Zucker, Michael Birshan, Rebecca Doherty, Tjark Freundt | Source: McKinsey Quarterly | Subject: Strategy

Economic and political turbulence have prompted speculation that the world is already deglobalizing. But the evidence suggests that global integration is here to stay, albeit with nuance.

Content: Article | Authors: Hamid Samandari, Jeongmin Seong, Jonathan Woetzel, Michael Birshan, Olivia White, Sven Smit, Tiago Devesa | Source: McKinsey Quarterly | Subjects: Economics, International, Trade

Integrated business planning is a well-known process, particularly among supply chain leaders. But in most companies, P&L owners are missing out.

Content: Article | Authors: Ali Sankur, Elena Dumitrescu, Ketan Shah, Matt Jochim | Source: McKinsey Quarterly | Subjects: Management, Operations

Where there’s a culture of compliance, where everybody gets paid for coming in on 100 percent of their numbers, there you have a deeply ingrained mindset that aims for safety, not for great. In this case it’s optimizing for personal income, as opposed to optimizing for the acceleration of the organization. There’s real work to overcome the mindset of everybody optimizing for their paycheck, instead … [ Read more ]

Content: Quotation | Author: Deidre Paknad | Source: McKinsey Quarterly | Subject: Organizational Behavior

In transformation, every organization looks like a start-up, learning each quarter as it drives a new business model in new sectors, and operates in new ways. The conditions in large enterprise look very much like the conditions have always looked in a young company trying to create a segment or a category or launch a new product.

Content: Quotation | Author: Deidre Paknad | Source: McKinsey Quarterly | Subject: Change Management

A way to think about KPIs is that they’re operating metrics. There are dashboards of them, millions of them in big companies. They tell us where we are.

The big difference with OKRs is, of the million things we could measure this quarter, on a certain five or ten measures, we want to move the needle, and this is how far we want the needle to … [ Read more ]

Content: Quotation | Author: Deidre Paknad | Source: McKinsey Quarterly | Subject: Management

The forces of fragmentation require a new global IT architecture and operating model that is modular, standardized, and configurable to support local differentiation.

Content: Article | Authors: Andreas Kopper, Mathis Friesdorf, Oliver Bossert, Wolf Richter | Source: McKinsey Quarterly | Subject: IT / Technology / E-Business

While buffeted by the recent market downturn and bankruptcies, digital assets and the technologies underlying them still have the potential to transform business models across sectors.

Content: Article | Authors: Anutosh Banerjee, Ian De Bode, Matt Higginson, Robert Byrne | Source: McKinsey Quarterly | Subject: IT / Technology / E-Business

A dual focus on developing people and managing them well gives a select group of companies a long-term performance edge.

Content: Article | Authors: Anu Madgavkar, Bill Schaninger, Dana Maor, Hamid Samandari, Jonathan Woetzel, Kanmani Chockalingam, Olivia White, Sven Smit | Source: McKinsey Quarterly | Subjects: Best Practices, Human Resources, Training & Development

In today’s business environment, companies seeking to transform all or part of their businesses need to create value quickly.

Content: Article | Authors: Louisa Greco, Zachary Silverman | Source: McKinsey Quarterly | Subject: Change Management

For decades, salespeople have been taught that there is only one possible reason for lost sales: that salespeople have failed to defeat the customer’s status quo. Perhaps the customer doesn’t fully appreciate the problem that their solution is designed to solve. Or maybe they don’t yet see enough daylight between their company’s solution and that of the competition. So, salespeople break out their arsenal of … [ Read more ]

Content: Article | Authors: Matthew Dixon, Ted McKenna | Source: McKinsey Quarterly | Subject: Marketing / Sales

The most successful large-deal transactions follow four key practices during integration execution.

Content: Article | Authors: Alex Liu, Brian Dinneen, Christine Johnson | Source: McKinsey Quarterly | Subject: Mergers & Acquisitions

Whether you’re being interrupted in meetings or challenged at every turn, Amy Gallo shares tactics for getting value out of difficult work relationships.

Content: Article | Authors: Amy Gallo, Roberta Fusaro | Source: McKinsey Quarterly | Subjects: Organizational Behavior, Personality / Behavior

We live in the era of ESG [environmental, social, and corporate governance issues] and we talk a lot about the “E,” but the “S” will also be crucial. This research shines a spotlight on some of the fundamental forces driving the phenomena we see today. One suggestion to business leaders is, know your numbers. What does your company’s value look like by pathway? What does … [ Read more ]

Content: Quotation | Author: Michael Birshan | Source: McKinsey Quarterly | Subject: Social Responsibility (ESG)

Value flows from corporations to households through eight different pathways. If you take a dollar of revenue that the average corporation generates, 25 cents of that flows through as labor income: wages, salaries, and other benefits to employees. Seven cents of that dollar goes to capital income, meaning dividends, share buybacks, and interest payments to debtholders. Six cents goes to investment—earnings that are retained to … [ Read more ]

Content: Quotation | Author: Michael Birshan | Source: McKinsey Quarterly | Subject: Economics

As technology’s strategic importance to the business expands, management needs stronger board guidance. Four engagement models have proven useful.

Content: Article | Authors: Isabelle Tamburro, Sidney Li, Steve Van Kuiken, William Forrest | Source: McKinsey Quarterly | Subjects: Corporate Governance, IT / Technology / E-Business