This issue of the Quarterly, available here as a PDF download, examines AI-driven automation and how it will transform the economy, discusses why lifelong learning should be a corporate priority, and lays out the health imperative for organizations. Download the full issue of McKinsey Quarterly 2017 Number 4 (PDF–6MB). Six years ago, economist W. Brian Arthur suggested in the pages of the Quarterl
As design thinking nears its 50th birthday, many companies still struggle to realize value from design. Those that succeed often follow ten best practices. Amazon Prime. The Apple iPhone. Netflix. Tesla. For those companies that get design right, the prizes are rich. The S&P 500 companies that invested most into design processes, capabilities, and leadership over the past decade, including design
Eric Chu Jonathan Dunn Deb Roy Geoffrey Sands Russell Stevens Computers don’t cry during sad stories, but they can tell when we will. Sunspring debuted at the SCI-FI LONDON film festival in 2016. Set in a dystopian world with mass unemployment, the movie attracted many fans, with one viewer describing it as amusing but strange. But the most notable aspect of the film involves its creation: an arti
In an era marked by rapid advances in automation and artificial intelligence, new research assesses the jobs lost and jobs gained under different scenarios through 2030. The technology-driven world in which we live is a world filled with promise but also challenges. Cars that drive themselves, machines that read X-rays, and algorithms that respond to customer-service inquiries are all manifestatio
A quick-service restaurant chain with thousands of outlets around the world is using data to drive a successful turnaround, increase customer satisfaction, and grow revenues. People analytics—the application of advanced analytics and large data sets to talent management—is going mainstream. Five years ago, it was the provenance of a few leading companies, such as Google (whose former senior vice p
New research suggests that the secret to developing effective leaders is to encourage four types of behavior. Telling CEOs these days that leadership drives performance is a bit like saying that oxygen is necessary to breathe. Over 90 percent of CEOs are already planning to increase investment in leadership development because they see it as the single most important human-capital issue their orga
China is already more digitized than many observers appreciate and has the potential to set the world’s digital frontier in coming decades. China has one of the most active digital-investment and start-up ecosystems in the world, according to a new discussion paper from the McKinsey Global Institute (MGI), China’s digital economy: A leading global force. China is in the top three in the world for
What customers want and what businesses think they want are often two different things. Here’s what customers are looking for. Anyone who has gotten an unsolicited and irrelevant offer related to something they’ve done online knows that creepy feeling that someone is watching me. This kind of reaction is the third rail of today’s drive to personalize interactions with customers. That’s a problem b
Are executives too focused on the short term? If so, does it really matter?
Browse our lasting insights on important topics in strategy and corporate finance, from resource allocation to transactions, digital strategy, and more Like it or not, hedge-fund activism is now a feature of the corporate landscape. This collection details how executives and board members can work with—rather than against—activists to improve performance.
It takes more than a discounted health-club membership to move the needle on employee well-being. When Bob Chapman, the CEO of global engineering company Barry-Wehmiller, talks about the impact that organizations have on their people, he gets emotional: “The person you report to at work can be more important to your health than your family doctor. We want to send people home safe, healthy, and ful
Transforming companies to achieve organizational agility is in its early days but already yielding positive returns. While the paths can vary, survey findings suggest how to start. Rapid changes in competition, demand, technology, and regulations have made it more important than ever for organizations to be able to respond and adapt quickly. But according to a recent McKinsey Global Survey, organi
Digital has changed how B2B leaders meet customer demands, but not in all the expected ways. As digital continues to disrupt every aspect of commerce, B2B organizations face challenges and opportunities when they come to terms with this new reality. In our latest Discussions in Digital podcast, Dianne Esber, a partner in McKinsey’s San Francisco office focused on driving digital growth, explores t
Stepping up digital efforts in purchasing could help apparel companies transform. A survey of sourcing executives highlights trends and opportunities. The shirt you are wearing now was probably manufactured in a far-away country, based on a months-old design, and then shipped for weeks across the high seas before reaching your local retailer or e-tailer. You might have picked it up at half price i
Most change programs fail, but the odds of success can be greatly improved by taking into account these counterintuitive insights about how employees interpret their environment and choose to act. In 1996, John Kotter published Leading Change. Considered by many to be the seminal work in the field of change management, Kotter’s research revealed that only 30 percent of change programs succeed. Sin
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