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Brought to you by Alex Panas, global leader of industries, & Axel Karlsson, global leader of functional practices and growth platforms
Welcome to the latest edition of Only McKinsey Perspectives. We hope you find our insights useful. Let us know what you think at Alex_Panas@McKinsey.com and Axel_Karlsson@McKinsey.com.
—Alex and Axel
In the news. Geopolitical shifts are reshaping business risks, yet most MBA programs treat geopolitical courses as electives. As one business school professor writes in The Hindu, business schools should weave geopolitics into their core curricula—through real-world cases, simulations, and collaboration with policy schools—to prepare students for navigating sanctions, trade policies, and regulatory tensions in their eventual careers. Doing so can help equip future leaders for corporate roles where geopolitical risk increasingly shapes business decisions. [The Hindu]
On McKinsey.com. Geopolitical tensions and policy changes have put unprecedented pressure on organizations’ corporate-affairs functions. To keep pace, the function—which is responsible for guiding management’s responses to these issues, while navigating the shifts themselves—needs to refresh its approach, say McKinsey Partners Robin Nuttall and Ziad Haider. The authors highlight a five-part playbook for companies to upgrade their geopolitical capabilities, including steps such as mapping geopolitical exposures, refining messaging, and engaging stakeholders proactively. Discover the five actions corporate-affairs teams can take to shape global dynamics, rather than simply react to them.Stay ahead of global shifts
In the news. As leadership becomes more demanding and complicated, the skills needed to lead effectively are evolving as well. But as Fortune notes, the value of a “CEO factory” model—which cultivates leaders through continuous development and a mindset of self-transformation—hasn’t changed. For example, top CEOs who began their careers at McKinsey, where the focus is on developing future leaders, attribute their success to early exposure to rigorous problem-solving, structured thinking, and high-stakes decisions. In a fast-paced and uncertain business environment, it’s equally critical to develop a pipeline of leaders who can manage ethical issues and adapt to disruptions such as gen AI. The result: leaders who think creatively, act decisively, and can reinvent themselves. [Fortune]On McKinsey.com. Leadership development doesn’t happen by chance, especially in an increasingly volatile and complex world. Rather, companies need a systematic way to develop tomorrow’s leaders at scale, say McKinsey Global Managing Partner Bob Sternfels and Senior Partner Daniel Pacthod. The 21st-century leadership factory is a scalable, repeatable approach that requires deep CEO involvement and includes six critical actions. Among them are treating leadership as a capability that’s anchored in certain traits, such as humility and stewardship; engaging high-potential employees early, regardless of their seniority; and rewarding experimentation and risk-taking through a “fail fast, learn faster” ethos.Cultivate the next generation of leaders
In the news. The world’s population continues to get older, a trend that has raised concerns about the eventual economic implications. But this shift doesn’t necessarily signal decline, according to the World Economic Forum. If countries adopt and invest in policies that help older adults age well, the accumulated skills and resilience they contribute to their communities can represent a “silver dividend.” Countries that have already reaped this dividend did so by enacting three critical measures, including reducing social isolation. [WEF]On McKinsey.com. In the US, the ROI from investing in longevity can have significant economic effects: Every $1 invested in healthy aging can yield $3 in future economic gains and reduced healthcare costs. That’s according to Senior Partners David Nuzum and Pooja Kumar and coauthors, whose McKinsey Health Institute analysis identifies 18 specific interventions to help older adults maintain their well-being. For some interventions, the returns are as high as 14 times (for subsidizing defensive-driving courses) and 24 times (for volunteer-matching programs) the initial investment. And the benefits are more than financial; the authors note that each intervention can create meaningful qualitative benefits for individuals and society alike.Consider the case for healthy aging
—Edited by Kanika Punwani, editor, Southern California
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