TODAY’S NEWS. TOMORROW’S INSIGHTS.A daily newsletter from McKinsey & Company
Edited by Belinda Yu Editor, Atlanta
Uncertainty, meet confidence. When the world is so uncertain, how can leaders move forward with confidence? It’s impossible to make perfect predictions, particularly when today’s economic climate seems so ambiguous. One tool to make better decisions is to draw from the wisdom of crowds. Averaging the opinions of a small group of experts often results in more accurate forecasts than any individual prediction, academic research shows. People relying on a sole expert might also be more susceptible to impostors who only feign knowledge. [HBR]
New jobs for uncertain times. Head of team anywhere. VP of flexible work. Head of remote. These are a few of the latest job titles arising from the remote-work era. Routines have been upended, with millions of workers still reluctant to return to commuting. Now, organizations are looking to fill unique roles that reflect changing times, including ones that lift morale. The “chief heart officer” at one agency spends each day connecting with workers, whether through posting staff newsletters or chatting with colleagues about tasty hot sauce recipes. [NYT]
Don’t play defense. CEOs, board members, and others all share that today’s environment is perhaps the most challenging one that they have ever faced, note McKinsey senior partners Michael Birshan, Ishaan Seth, and Bob Sternfels. Organizations confront many challenges: the war in Ukraine, rising inflation, the ongoing global pandemic, supply chain bottlenecks. Although many executives are adopting a defensive stance, our research on corporate resilience suggests that cautious, “wait and watch” tactics tend to produce median company performance.
Volatile times. The most effective leaders focus on near-term threats while also moving boldly into the future. Such leaders understand that when volatility is high, seeing accurately more often than rivals creates competitive advantage. One global bank achieved this by tapping into the collective wisdom of roughly 70 of its chief country officers. This group uncovered trends that enabled sales teams to better identify client opportunities, giving the company an important advantage with clients. To compete in an age of volatility, focus on three critical areas.
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