A new era of technological change is ushering the technology officer to the center stage, and expectations are high. Companies want their chief information officers (CIOs), chief technology officers (CTOs), and chief digital and information officers (CDIOs) to deliver on the often-elusive goal of turning the promise of tech into real value. To meet this goal, tech officers are adjusting to ensure that their organizations benefit from the trends that…
In 2023, global beauty market retail sales grew to $446 billion, up 10 percent from 2022. In the year since the release of our inaugural state of beauty report, published in collaboration with The Business of Fashion in May 2023, the industry—comprising fragrance, makeup, skin care, and hair care—beat expectations and outperformed other consumer sectors, such as apparel. But these headline growth figures only tell part of the story. While…
Enterprises are looking to Global capability centers (GCCs) as critical innovation hubs to stay ahead in the competitive landscape, but the difficulty lies in aligning strategic priorities with the capabilities of GCCs to maximize their impact. In this episode of McKinsey Talks Operations, host Daphne Luchtenberg is joined by McKinsey partners Abhilash Sridharan and Malcolm Gomes, Debasis Panda of TransUnion, and Pravin Goel of BlackRock to discuss how GCCs are evolving…
According to McKinsey analysis, between 2023 and 2030, ultra-high-net-worth (UHNW) and high-net-worth (HNW) families in the Asia–Pacific region are set to experience an intergenerational wealth transfer estimated at $5.8 trillion. UHNW families are expected to account for about 60 percent of the total wealth transfer (Exhibit 1), and many are setting up family offices to facilitate the process. Accordingly, the number of single-family offices in Hong Kong and Singapore, the…
The HR function plays an important—if often unrecognized—role in M&A. When it comes to bringing together separate businesses, structures, and cultures, “people make all the difference,” says Lisa Blair Davis, the global head of HR for Johnson & Johnson (J&J) MedTech. Davis has seen and helped drive substantial growth in the healthcare company’s medical-device business in her 25-plus years with J&J. During that time, the organization has acquired companies in…
Lasting performance improvements that establish a competitive advantage: What organization doesn’t want that? For a company undergoing transformation, cultivating employee “will” to change the way it operates is critical for success. Organizations that focus on generating this will, along with building critical skills, executing with rigor, and setting a holistic aspiration, are far more likely to outperform peers. Leaders can take three critical steps to get more employees involved and…
Innovation and interest in the tech sector remain strong, despite market challenges and dips in investment. On this episode of The McKinsey Podcast, McKinsey technology experts Lareina Yee and Roger Roberts share findings from the McKinsey Technology Trends Outlook 2024 report. They talk with editorial director Roberta Fusaro about where innovation is exploding, interest is deepening, and investment is flowing.In our second segment, from our CEO Insights series, McKinsey partner Blair Epstein explores…
Experiential retail is a growing way for retailers to draw in shoppers, increase omnichannel sales, and build their brands. Real estate owners and operators that can attract experiential retailers can benefit in multiple ways. Here’s what it takes. Katy McLaughlin: What is experiential retail? Colleen Baum: It’s a format designed to help customers touch and feel and experience products as well as get to know a brand. Experiential formats tend…
The global supply chain is constantly changing, shaped by manufacturers around the world striving to limit risk, build resilience, manage costs, and explore new markets for production. As many manufacturers seek to reduce their dependence on a single supply source, Southeast Asia is emerging as a prominent manufacturing hub, reflected in the production changes in the region. Indonesia and Vietnam are currently leading the manufacturing and trade flow shifts, as…
Sean Doyle has spent most of his career at British Airways (BA) and was appointed CEO in October 2020 during the COVID-19 pandemic. Since then, Doyle has been focused on rebuilding the company to create a better BA for the airline’s colleagues and customers. Earlier this year, he announced a £7 billion transformation plan, the largest investment in modernization in its history, with more than 600 initiatives to transform the…
When it comes to value creation, retailers have never had it easy. The challenges are well-known: consumer preferences and behaviors are fast changing and rarely predictable. Many retail businesses are highly dependent on supplier actions—a fact that’s become evident to consumers in recent years as supply chain disruptions resulted in rampant out-of-stocks. Given retailers’ heavy reliance on frontline workers, fluctuations in labor markets have a more pronounced effect on retail…
The world remains deeply connected by virtue of global trade, but the geometry of economies’ connections has been shifting. Some major economies are moving toward trading more with geopolitically closer partners, while others continue to deepen their international trade networks both geographically and across the geopolitical spectrum. Asia is at the forefront of this shifting geometry of global trade in all its shapes. How changing trade patterns will play out…
The business world is still coming to grips with the seismic potential of generative AI (gen AI). According to the McKinsey Global Institute, the technology could contribute $2.6 trillion to $4.4 trillion annually to the global economy. In addition, 50 percent of work activities could be automated from 2030 to 2060, a trend that gen AI is poised to accelerate. However, one does not need to look to the future…
If every company needs to be a software company, do you have a software organization that can deliver? The answer to that question could be decisive for the future of many companies.The ability to compete depends increasingly on how well organizations can build software products and services. Already, nearly 70 percent of top economic performers, versus just half of their peers, use their own software to differentiate themselves from their competitors.…
The UN Sustainable Development Goals were set to be achieved by 2030—yet only 17 percent of SDG targets are on track. In Asia, research has shown that the region will only achieve the SDGs by 2062 if it carries on its present trajectory. Can AI play a meaningful role in accelerating Asia–Pacific’s initiatives to achieve the goals and improve people’s lives while protecting biodiversity? In this episode of the Future…
Cohere is carving a name for itself in the exploding AI market by focusing squarely on business clients and collaborating with major companies such as Google, Amazon, Oracle, and Microsoft, among others. Founded in 2019 by college friends Aidan Gomez, Nick Frosst, and Ivan Zhang, the company maintains offices in Toronto, San Francisco, New York, and London.Gomez sat down with McKinsey senior partner Ben Ellencweig, who leads alliances, acquisitions, and…
Amid growing corporate and public sector cyber breaches and recent high-profile technology outages, significant changes are occurring in both the role of boards in cybersecurity and within the cybersecurity industry itself. In this interview, McKinsey’s Sean Brown speaks with Vinnie Liu, the cofounder and CEO of the cybersecurity firm Bishop Fox, and McKinsey cyber-resilience experts Justin Greis and Daniel Wallance about how boards of directors should approach oversight of cybersecurity.…
Almost nine years after the landmark Paris Agreement and nearly halfway through what has been called a “decisive decade” for climate change, the world stands at a critical juncture in their transition away from fossil fuels. Translating into action the ambitious climate targets that have been put in place by governments and companies depends on accelerating the deployment and adoption of several interrelated technologies. These include renewable energy sources (RES),…
To power the energy transition, mining companies will need to pivot toward producing critical minerals such as copper, lithium, and rare earth elements, which are essential components of electric vehicles, solar panels, and more. Meanwhile, industry leaders are contending with legacy issues on environmental, social, and governance (ESG) topics and recruitment and making progress on exploring technological developments regarding artificial intelligence and automation. McKinsey senior partners Harry Robinson and Richard…
Applying a growth mindset is the best way for businesses to approach the rapid changes born of generative AI (gen AI), says Clara Shih, CEO of Salesforce AI and today’s guest on this episode of the At the Edge podcast. Shih speaks with McKinsey senior partner Lareina Yee about the transformative power of gen AI to help accelerate workflows, the importance of change management, and the top questions business leaders are…
Despite current geopolitical tensions, the global economy remains resilient. Economic growth in surveyed economies is accelerating, as growth in both the manufacturing and services sectors picked up in June. Manufacturing growth was largely stable (except in the eurozone, where it contracted faster) while services sectors remained bright, albeit expanding at a slower pace.Growth in the second quarter was varied but remained positive across the globe (Exhibit 1). In the US,…
A country level perspective of Vietnam can provide a good, general overview of what is taking place in the country—just imagine what a pixelated breakdown 230 times more granular could reveal. Such a granular deep dive is now available with a new dataset, Pixels of Progress, compiled by the McKinsey Global Institute (MGI). This specialized dataset provides a close-up view of human progress in Vietnam by breaking the country down…
Despite forging ahead with generative AI (gen AI) use cases and capabilities, many insurance companies are finding themselves stuck in the pilot phase, unable to scale or extract value. Jörg Mußhoff sat down with Cameron Talischi and Khaled Rifai to discuss how organizations can escape “pilot purgatory” by leveraging traditional AI and robotic process automation in addition to gen AI; the importance of reimagining domains such as claims, underwriting, and distribution;…
The past few years have been a confounding time in performance management. Disruptions of long-standing workplace norms have led many employees to rethink their expectations of employers regarding remote work, employee burnout, and work–life balance. Compounding these challenges, an inflationary economy and a slower hiring market have put pressure on employers to “do more” with the talent they already have.Organizations have responded to this volatility by seeking new formulas to motivate…
In this episode of The Committed Innovator, McKinsey innovation leader Erik Roth speaks with Shiprocket cofounder and CEO Saahil Goel about how he built his e-commerce logistics company into a highly successful platform that is helping launch new entrepreneurs all over India. This is an edited transcript of their discussion. You can listen to the full episode on your preferred podcast platform. Erik Roth, McKinsey: Welcome back to another episode…
Some of the most innovative and creative people in history succeeded because they were versatile. They were able to master more than one discipline and then combine them to forge new ideas and inventions. Benjamin Franklin, for instance, the quintessential Renaissance man, was a writer, printer, scientist, and politician. He played a key role in drafting the Declaration of Independence, helped negotiate the Treaty of Paris to end the American…
Generative AI (gen AI) could provide the productivity boost operations leaders have hoped for, as well as a means to fight cost pressures—if only leaders could get going. McKinsey’s latest tech trends research finds that only 11 percent of companies worldwide are using gen AI at scale.Operations is a major gap: in a February 2024 survey of 150 executives at large North American and European companies, only 3 percent of respondents…
As Prudential plc embraces digital transformation, the 176-year-old insurance company finds itself navigating a delicate balancing act: harmonizing the power of AI with a human touch, essential to delivering exceptional customer experiences. Prudential prioritizes data-driven insights to offer customers more-personalized, proactive, and efficient services and drive sustainable growth across global markets while preserving the personal connections that insurance customers value. Joe Ngai, chairman of McKinsey, Greater China, and a senior…
The emergence of AI and generative AI (gen AI) has brought new energy to the age-old conversation about productivity. In this episode of the McKinsey on Insurance podcast, McKinsey senior partner Jörg Mußhoff sits down with partners Elena Pizzocaro and Selim Sulos to discuss why revisiting insurance productivity is at the top of CEOs’ agendas, how the most successful transformations use an end-to-end redesign approach, and why CEOs shouldn’t get distracted by…
People often speak of industry momentum as if it were a force of nature independent of individual companies’ actions—like the mysterious “ether” scientists once believed filled the universe and allowed light to travel. While demographics and macroeconomic factors outside organizations’ control do contribute to momentum, the trajectory and pace of industry growth very much rely on the innovation efforts of a sector’s constituent businesses. By harnessing technology and creating new…
At a glance The energy transition is in its early stages, with about 10 percent of required deployment of low-emissions technologies by 2050 achieved in most areas. Optimized over centuries, today’s energy system has many advantages, but the production and consumption of energy accounts for more than 85 percent of global carbon dioxide (CO2) emissions. Creating a low-emissions system, even while expanding energy access globally, would require deploying millions of…
The German healthcare system, renowned for its efficiency and quality of care, is at a critical juncture in the postpandemic era. The results of a McKinsey survey of physicians in Germany highlight substantial challenges that could be affecting the quality and reliability of patient care (see sidebar, “Research methodology”). The survey results also inspire optimism, however: most physicians believe the issues could be resolved with technology-enabled solutions, innovative organization designs,…
The squeeze on retailers’ profits is tighter than ever. And while some retailers are struggling to eke out value, the best are pulling away from the rest (Exhibit 1). Those that are left behind have already picked the low-hanging fruit to combat the sector’s headwinds: they have tried to solve their operational problems with localized solutions, to limited effect. But if they want to protect their margins and gain a…
US banks’ deposit operations have experienced a difficult few years, with total deposit balances declining 7 percent between the first quarter of 2022 and the third quarter of 2023. In 2022, the US Federal Reserve began pursuing quantitative tightening (QT), or reducing its balance sheet by not reinvesting all the proceeds of maturing securities. It also started rapidly raising interest rates. Consequently, banks’ funding costs have risen, ratcheting up pressure…
With between 79 and 98 percent of jobs in Australia predicted to be automated by 2030, enabling vast productivity gains, how will this change the nature of work? Generative AI (gen AI) will have different effects on different sectors; however, early adopters in any sector can drive positive change—at the company and employee level—not only in productivity but also in the quality of work. Top-down thinking will be critical for…
When it comes to creating a more sustainable future, the construction industry has a great role to play. On top of fulfilling critical economic and societal needs for offices, housing, hospitals, and infrastructure, the industry can help meet net-zero goals by 2050 by developing and executing the needed projects, including renewables, low-carbon activities, infrastructure, building insulation, and more.The construction industry could thus be on the brink of remarkable expansion: in…
While AI continues to influence the way we work in exciting new ways, it is crucial for organizations to apply guardrails to keep it safe. On this episode of The McKinsey Podcast, McKinsey senior partners Alexander Sukharevsky and Lareina Yee dig into new research on AI adoption, with editorial director Roberta Fusaro. In our second segment, how do you muster the courage to talk about something uncomfortable at work? Senior partner Sherina Ebrahim has two tips.…
In this edition of Author Talks, McKinsey Global Publishing’s Raju Narisetti speaks with McKinsey senior partners Dana Maor, Kurt Strovink, and Ramesh Srinivasan and senior partner emeritus Hans-Werner Kaas about their new book, The Journey of Leadership: How CEOs Learn to Lead from the Inside Out (Portfolio/Penguin Group, USA, September 2024). Through the lens of CEOs who have mastered invaluable leadership lessons and insights from McKinsey’s Bower Forum and other CEO…
The pace of change in technology has created many opportunities—and raised as many challenges. Overcoming the challenges to grasp the opportunities requires tools and processes that nurture an engineering culture, build stable foundations for resilient technology operations, and manage complex cloud costs. Driving this shift requires modern technology leaders to expand from their traditional role as “guardians of IT” to become closer partners with the business. So says David Pedreira,…
After nearly two years of debate, the verdict is in: generative AI (gen AI) is here to stay, and its business potential is massive. We’ve already witnessed an exponential rate of gen-AI-related innovation, which promises to accelerate automation and enhance productivity, innovation, and the quality of work, as well as the employee and customer experience. The companies that fail to act and adapt now will likely struggle to catch up…