Organizations today face ten significant shifts. Here’s what to do about them.
McKinsey’s new report, The State of Organizations 2023: Ten shifts transforming organizations, provides leadership teams a road map for operating successfully amid ever-growing uncertainty. Based on a worldwide survey of 2,500 business leaders in 16 industries and conversations with CEOs and their teams, the report takes an in-depth look at the ten organizational shifts that are most relevant to business leaders today.
During a McKinsey Live webinar, senior partners Dana Maor and Patrick Simon discussed the new research and highlighted inspirational examples from beacon organizations that have adapted and forged new paths across some of these transformational shifts, including:
- Increasing speed, strengthening resilience. Half the respondents in the State of Organizations survey say their organization is unprepared to react to future shocks. Those able to bounce forward—and quickly—out of serial crises may gain significant advantages over others.
- Closing the capability chasm. Companies often announce technological or digital elements in their strategies without having the right capabilities to integrate them. To achieve a competitive advantage, organizations need to build institutional capabilities.
- Leadership that is self-aware and inspiring. Leaders today need to be able to lead themselves, lead a team of peers in the C-suite, and exhibit the leadership skills and mindset required to lead at scale, coordinating and inspiring networks of teams. To do that, they must build a keen awareness of both themselves and the operating environments around them.
- Making meaningful progress on diversity, equity, and inclusion (DEI). While organizations are prioritizing DEI, in many cases, the initiatives aren’t translating into meaningful progress. To realize DEI aspirations, leaders will need to identify opportunities to make progress both in their organizations and in their communities and broader society.
- Finding the “true hybrid,” a new balance of in-person and remote work. Since the COVID-19 pandemic, about 90 percent of organizations have embraced a range of hybrid work models. It’s important that organizations provide structure and support around the activities best done in person or remotely.
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For more on this topic, read or listen to the full report on McKinsey.com.
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