The Daily Read

How can leaders create value in the net-zero transition amid challenges such as high energy prices, supply chain pressures, and increased interest rates? Companies that take disciplined and courageous action on both resilience and sustainability have a unique opportunity to differentiate themselves from organizations that focus on just the short-term shocks, or those that step back from their sustainability commitments, write McKinsey’s Laura Corb, Anna Granskog, Tomas Nauclér, and Daniel Pacthod.

Innovation is the key to growth and resilience and companies that are ahead on new digital technologies like generative AI could help them stay ahead of the curve. But in a rapidly changing world, when and how innovative companies deploy gen AI is what distances them from their competitors.

Growth, inclusion, and sustainability are all parts of a complex yet connected system. What would it take for these forces to work together to economically empower communities and contribute to a greener planet?

Generative AI has taken the world by storm over the past year. How can companies stay ahead of it? “Speed is often a strategy in and of itself. So those who run faster will win over time,” explains McKinsey senior partner Alex Singla.

Middle managers are often underappreciated and the subjects of negative stereotypes in popular culture. They are viewed as cogs in an organization’s bureaucracy, whose primary job is to take directives from senior leadership and push paper. In reality, managers play a critical role in developing talent, promoting connectivity across teams, and creating value for organizations.

Since the pandemic, the way we think about work has dramatically evolved—remote and hybrid work have become commonplace and companies are quickly adopting automation technologies such as generative AI. Meanwhile, a remarkable number of workers in the US are changing jobs—more than 8 million occupational shifts took place from 2019 through 2022 and an additional 12 million occupational shifts are expected by 2030. How should we make sense of all of this?

If you’re looking for book recommendations for your downtime or an upcoming vacation, this year’s summer reading guide has got you covered. Browse through 70-plus books in nine genres selected by CEOs, editors-in-chief, and other leaders, including McKinsey’s Bob Sternfels, Tracy Francis, Sven Smit, Homayoun Hatami, Pierre Gentin, Rodney Zemmel, and Joydeep Sengupta, and you’ll be sure to find something that satisfies your interests.

With generative AI developing at lightning speed, company executives and employees are anxiously exploring its possibilities, values, and risks. But what role should a company’s board of directors play to get ready for what lies ahead?

While efforts have been made to advance racial equity in the workplace, fair and equitable progress has been hard to achieve. In order to move the needle on racial equity, it is crucial that we understand the varying needs of different groups, in addition to individuals with multiple “identities.”

Technology companies are shedding the very talent that incumbent players need to meet their own digital objectives. Here’s what HR teams in traditional organizations can do to capitalize.

With digital and AI reshaping the way we live and work, transforming the way companies operate is one of the most pressing business challenges today.

AI has undoubtedly become a major force in our everyday lives. And with the recent rise and early adoption of generative AI, more and more people are grappling with how it will impact our work and society at large.

McKinsey’s long-term aspiration is to accelerate sustainable and inclusive growth for the world. That means the firm is committed to creating positive, enduring change in the societies where we live and work. Our 2022 ESG Report: Creating a More Sustainable, Inclusive, and Growing Future for All, which is now available for download, details our progress toward these commitments.

It’s hard to think of a new technological breakthrough in recent years that has captured the public’s imagination like generative AI. With so much buzz around tools like Chat GPT, many of us can’t help but wonder: what does this mean for our jobs?

After the heady first years in the job, CEOs must sustain momentum and high performance. Here are four ways to avoid complacency and create even more value.

The results of a survey from the McKinsey Health Institute shed light on the health perceptions and priorities of people aged 55 and older.

Organizations have taken lots of steps in recent years to become more diverse, equitable and inclusive—and still, change has been slow.

You may be familiar with the idea of working as “one firm.” But while most leaders understand the importance of working together, capturing the full value of operating as one firm is elusive for most.

Whether you love it or hate it, social media is a major force in our lives. And Gen Z’s relationship with it is particularly complicated.

Did you know that only 50% of business leaders believe their organization would be able to respond quickly to a crisis?

In the future, the launch needs of satellites could further increase due to greater space exploration, the launch of commercial space stations, and tourism, say McKinsey’s Chris Daehnick, John Gang, and Ilan Rozenkopf in a new article.

Leaders around the world are confronting a welter of uncertainties. Here’s how to home in on what matters—and begin making the most of novel opportunities—amid ongoing change.

JPMorgan Chase’s head of global real estate explains how and why the company is investing in tomorrow’s workplace.

The space sector is at an inflection point similar to what commercial air travel experienced after World War II and the internet saw in the 1990s. Is your company ready to capture the opportunity?

According to our latest Global Private Markets Review, private markets faced a year of two halves in 2022, with buoyancy in the first half and plummeting deal volumes, declining performance, and falling valuations in the second.

Corporate leaders are addressing the risks while finding the opportunities in digital disruption, the economy, and geopolitical uncertainties.

The need for board-level strategic conversations on geopolitical risk is urgent.

During these times of economic volatility and uncertainty, many executives are prioritizing building new businesses as a way to boost growth and value to their organization.

What’s the latest on inflation, energy prices, and economic performance across the globe?

Do consumers really care about buying environmentally and ethically sustainable products?

How leaders can invest in a sustainable future and navigate near-term energy pressures successfully.

It’s too big to ignore—yet its future is far from certain. Companies need to dip a toe in the water and plan to take the plunge should developments warrant.

Leaders need clarity on what works to improve diversity, equity, and inclusion. Our 2023 report shows success factors that contributed to significant, quantifiable, scalable, and sustainable DEI impact.

McKinsey Technology leaders offer their insights on how business leaders can make the most of tech this year.

Setting up a winning digital and advanced-analytics organization is hard. Decisions about talent and technology will often determine the transformation’s success.

In an uncertain economy, executives’ first instinct might be to cut costs and shore up established holdings. A better way is to build new businesses.

Our world is big and complex, but human progress is still about life on the ground, up close and in detail.

The results of this year’s McKinsey Global Survey on AI show the expansion of the technology’s use since we began tracking it five years ago, but with a nuanced picture underneath.

Space is no longer the sole domain of governments and aerospace and defense companies. Businesses that pursue emerging opportunities now may gain a first mover advantage.

Five early indicators on women in the metaverse reveal gender inequality—especially in the leadership creating and setting metaverse standards.

The best CEOs use the first six to 12 months of their tenure as a moment of great personal transition and institutional renewal. There are four keys to success.

How many more years can be spent in optimal health if our society viewed mental and substance-use disorders as we do other conditions? The McKinsey Health Institute and the Healthy Brains Global Initiative collaboration sought to answer this question through a series of interactives.

Business leaders are often focused on ambitions and achieving results—and less about developing an action plan, according to Richard Rumelt, professor at the UCLA Anderson School of Management.

Behind every great CEO, there’s a great COO. After a few years out of vogue—in 2018, only 32 percent of Fortune 500 companies had one—the COO is back in a big, bold way. Nearly half of Fortune 500 companies in the energy and financial sectors have COOs in 2022.

In recent years, companies in Silicon Valley have dominated headlines—and for good reason: they are among the best performing stocks of the past decade.

Did you know that for every 100 men promoted to managerial levels, only 87 women experience similar advancement?

Put away your crystal ball. For enterprise organizations, the metaverse has the potential to help predict what's next with tremendous precision through mass simulations and artificial intelligence technologies.

In stormy weather, survey respondents maintain realism about the global economy. While geopolitical conflicts and inflation remain top of mind, concerns about energy volatility predominate in Europe.

A new McKinsey Health Institute survey finds that Gen Z may have higher levels of perceived stigma compared with other generations, but they may be more accepting of people with mental illnesses.

The US economy continues to throw off mixed signals. But one thing is becoming clear: executives should prepare for an extended period of higher interest rates.

McKinsey reveals 35 cutting-edge companies in the industrial tech sector, highlighting a robust “titanium economy” that creates American jobs and fuels innovation through sustainable, inclusive growth.

More than two billion tons of food—representing up to 40 percent of the world’s food—are lost or wasted every year, yet one in nine people in the world can’t get enough to eat.

Today’s challenging environment requires business leaders to hone their edge in three critical areas: insights, commitment, and execution.

Which technology trends matter most for companies in 2022? New analysis by the McKinsey Technology Council highlights the development, possible uses, and industry effects of advanced technologies.

Many respondents to McKinsey’s American Opportunity Survey say limited opportunities and a lack of skills are keeping them on the sidelines of the tightest labor market in 50 years.

Although valid questions have been raised about ESG, the need for companies to understand and address their externalities is likely to become essential to maintaining their social license.

Three of four frontline workers want to be promoted, but less than one in four achieves it. Companies can take targeted actions to better support these workers.

For many companies, getting employees back into the office has been a challenge. Employees want in-person connectivity—younger folks, especially—but they want flexibility at the same time. And the commute can be—well, daunting.

You may have seen the stunning new images captured by the James Webb Space Telescope last week. Space is an endlessly fascinating topic, and there is a lot of excitement and activity surrounding it, especially in recent years.

Your job is a big part of your life, and the highs and lows that come with it—frustration at being micromanaged, pride from a glowing review—have a major impact on your day-to-day.

While the world is still figuring out the metaverse and its role in our daily lives, one thing is certain: its potential is too big to ignore.

Black Americans are a major force in the beauty industry. They are responsible for over 11 percent of the total beauty market in the US and spent over $6 billion on beauty products last year.

As a global community, we are living through continuous, overlapping crises with long-lasting effects.

Human capital—the strength of all the collective knowledge, attributes, skills, experience, and health of its workforce—is the most vital resource for any organization or economy. Individuals accumulate human capital throughout their working lives, and taking on new roles helps them become upwardly mobile.

The metaverse: So much has been said about it, but what is it exactly? Although many continue to debate its definition, the metaverse can be characterized as an evolution of today’s internet—and an opportunity for marketers to engage consumers in new ways via immersive digital worlds.

When it comes to flying, business trips have always been crucial to the airline industry. Before the pandemic, corporate trips made up about 12 percent of air traffic but accounted for about half of the airline sector’s profitability in the US.

It’s no surprise that sustainability is on the minds of both companies and consumers. Many companies have made public commitments to sell goods that have less impact on the environment, and consumers want to buy products made from recycled plastics.

As industries and governments around the globe look toward a net-zero future, the road to decarbonization will be a challenge, particularly for sectors that produce the majority of global greenhouse-gas emissions.

As technological innovation accelerates, fashion companies have an opportunity to serve customers better while also creating a more efficient, responsive, and responsible business.

We’re in the midst of an energy transition that continues to evolve.

The war in Ukraine continues to have devastating consequences—particularly for vulnerable populations, both within the conflict zone and beyond. Now, the war is converging with other disruptions—supply-chain strains, inflation, the pandemic—to pose a looming threat to our global food supply.

As more institutions step up in their commitments to achieve net-zero emissions of greenhouse gases, new business opportunities are emerging. In a net-zero future, there will be more demand for climate-friendly goods and services, and companies will tilt away from investing in high-emission assets.

Why is Gucci getting into gaming? For the same reason Louis Vuitton, Ralph Lauren, and other high fashion brands are linking up with the $176 billion industry. Shoppers—especially those in Gen Z—are spending more time than ever before in virtual spaces, or “second worlds.”

Who doesn’t want to live a happier, healthier life? While we’ve made incredible progress in human health over the past century, there’s so much more we can do to improve the quality of life for everyone.

Who are we at our most raw? Rich Diviney, retired Navy SEAL commander and author of the book The Attributes: 25 Hidden Drivers of Optimal Performance, has a view.

Russia’s invasion of Ukraine has caused the greatest humanitarian crisis in Europe since World War II. How can leaders get to grips with the dynamics of this unfolding crisis?

Human resources is playing a critical role in helping organizations respond to the COVID-19 pandemic. Chief human resources officers expect that influence to persist.

The authors of the new book CEO Excellence, who interviewed dozens of the top-performing chief executives, share their most memorable encounters and stories.

The insurance industry struggles to create economic profit. But amid COVID-19’s enduring changes, opportunities await.

Real-estate leaders should revalue assets, decarbonize, and create new business opportunities. Here’s how.

She also knows what you can—and can’t—do about it. Here are three surprising lessons from a veteran of the wars in Iraq and Afghanistan.

Structured conversation during brainstorming sessions removes some of the risks that can thwart honest discussion.

Despite a shortage of cloud talent, top companies are finding ways to get past table stakes and build the capabilities needed.

With endless meetings, incessant emails, and casts of thousands, companies have mastered the art of unnecessary interactions. Winning in the next normal requires much more focus on true collaboration.

Women are doing more to support employee well-being but face higher stress levels as a result. Here’s how leaders can help.

To solve the burnout epidemic, organizations need to look beyond traditional wellness perks.

Get up to speed on what could lie ahead with an in-depth look at how Omicron affects a range of scenarios based on infectiousness, immune evasion, and disease severity.

Half of banks can't cover their cost of equity, and more findings from McKinsey's Global Banking Annual Review 2021.

The climate crisis is top of mind for many leaders. And while the world has seen promising developments in promoting a sustainable future, including country- and company-level commitments and rising attention from investors, net zero is not currently in sight.

For many organizations, traditional talent-resourcing models no longer work. The disruption to business models prompted by the pandemic made it clear that companies need to get better at utilizing employees’ existing skills and capabilities. How can you prepare for the future of work and improve organizational speed and responsiveness?

Hindsight, as they say, is 20/20. Back in January, we made a series of projections about the trends that could characterize the economy in 2021. So, how have they held up?

In the next decade, the world may see more progress than in the past 100 years, and organizations need to watch how technology is reshaping health and materials sciences, energy, transportation, and myriad other industries and domains.