| This week, two McKinsey experts on why finding the right talent is still so difficult. Plus, how governments can build credibility for infrastructure projects, and reading picks from Portia Walker, an engagement manager in London and former BBC journalist. |
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| “You’re going out a youngster, but you’ve got to come back a star!” Demanding theater director Julian Marsh famously delivers this line to untested ingénue Peggy Sawyer in 42nd Street. Whether you’re a Broadway producer in 1933 or a CEO in 2020, it seems the same is true: talent rules. So much rests on it. |
| And yet, as McKinsey talent experts Bryan Hancock and Bill Schaninger note, when they’ve asked company leaders if they have enough talent, they almost universally say no, and the biggest regret new CEOs routinely cite is not moving fast enough on talent. This is why leaders need to “reboot,” placing greater emphasis on human capital: What are the critical skills? Which jobs in my organization drive the most value? |
| One role that’s gained prominence over the past decade: the chief human-resources officer (CHRO). In fact, its stature has grown to the point where some believe it can be a stepping-stone to CEO. As Bill and Bryan explain, the value of a role, like the value of a business, can be calculated, which is why they recommend setting a “value agenda,” to determine where new business value will come from and the roles that go with it. |
| At the top of that agenda is tech talent—vital not just for companies but for geographic regions as well. Most countries recognize that tech jobs such as data analysts, web developers, and engineers are a prerequisite for economic development. Which is why anyone undergoing any sort of upheaval that might send talent packing (Brexit, anyone?) needs to rethink their approach to attracting and retaining people—of all stripes, not just tech workers—and focus on long-term planning. |
| OK, so you’ve set your value agenda, made your long-term plans … now what? How do you choose and manage a large talent pool? Larry Fink, chairman and CEO of BlackRock, the world’s largest asset manager, with more than $6 trillion in assets under management, has some ideas. |
| “The most important component of good management, good leadership, and good stewardship is making sure that you have diversity of mind,” he says. Firms fail when they have “groupthink.” He recommends using analytics to make sure you select and maintain a diverse group of thinkers. Because nobody wants to be stuck doing the same old song and dance. |
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| OFF THE CHARTS |
| Plastic recovery: Big challenges, big rewards |
| Why are plastic-waste-recycling rates in the US so low? Some significant supply and demand challenges get in the way, all of which are interdependent. If we find ways to bring more plastics into the recycling system, we also have to increase demand for recycled materials. This requires collaboration and commitment across the value chain. |
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| MORE ON MCKINSEY.COM |
| Helping governments build credibility for infrastructure projects | Many governments find it difficult to pick infrastructure projects that will generate tangible public benefits. Here are four best practices to help them reach that goal. |
| The future of natural gas in North America | What role will natural gas play in North America’s energy mix over the next decades? We look at how players can position themselves to manage threats and capture opportunities from the energy transition. |
| How AI helps teacher time | Existing technology can help teachers, often besieged with paperwork and administrative tasks, reallocate up to 40 percent of their time to activities that support student learning. Further advances in technology could push this number higher and result in changes to classroom structure and learning methods. |
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| WHAT WE’RE READING
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| Portia Walker |
| Portia Walker is an engagement manager in McKinsey’s London office, where she is part of the Organization Practice. Before coming to McKinsey, she was a journalist at BBC News, covering international news.
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| In the realm of nonfiction, Extreme Economies: Survival, Failure, Future—Lessons from the World’s Limits by Richard Davies is a fascinating hybrid of economics and travel. Davies ventures into Syrian refugee camps, Louisiana prisons, and the jungles of Panama to explore how people react when traditional economies have either failed or don’t exist, and what it can teach us about our own economic future. |
| I’ve finally gotten around to reading Daniel Yergin’s The Prize: The Epic Quest for Oil, Money & Power, the blockbuster history of the rise of the global petroleum industry from the 1850s through 1990. It’s a long, detailed, and fascinating account of the relationship between oil and the rise of modern capitalism. Captivating. |
| I also read a lot of fiction—I love novels that show me the world through completely new perspectives. Two books that really did that for me this year were 10 Minutes 38 Seconds in This Strange World by Elif Shafak and Dark at the Crossing by Elliot Ackerman. |
| Set in the Istanbul underworld of the 1970s and ’80s, Shafak’s novel tells the story of a murdered woman’s memories in the few minutes before she dies as her heart stops but her brain remains active. She recalls her childhood in the provinces and her escape to the city where she experiences violence and brutality but also finds deep friendships. |
| Ackerman’s novel, set on the Turkish–Syrian border, tells the story of an Arab–American translator who is trying to cross into Syria to fight the regime. Along the way he meets a revolutionary turned refugee, who forces him to question his sense of purpose. |
| For podcasts, I love How to Fail With Elizabeth Day because Day gets highly successful people to talk about their biggest failures. The episodes are funny and honest—and a great reminder of the setbacks and trade-offs that lurk behind each success. The episode with Mo Gawdat, former chief business officer at Google X, is devastating. |
| I read 10% Happier: How I Tamed the Voice in My Head, Reduced Stress Without Losing My Edge, and Found Self-Help that Actually Works—a True Story by Dan Harris a few years ago but found myself recommending it to people again recently. This is the story of an adrenaline-addicted television news reporter who, after having a panic attack live on air, embarks on a skeptical journey through spirituality and self-help and finds solace (to an extent) in meditation. |
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| BACKTALK |
| Have feedback or other ideas? We’d love to hear from you. |
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