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Brought to you by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities
A strategy for success. Executives face a slew of disruptions, including geopolitical tensions, sluggish growth, and supply chain challenges. In uncertain times, successful companies are proactive about strategy, which helps them adapt to quickly changing conditions, says an entrepreneurship expert and professor. These resilient organizations implement a three-part strategy: forecasting trends and risks, altering their course of action when necessary, and identifying opportunities to grow. [Fast Company]
Open for business. The Chinese economy is rebounding, led by higher retail spending, rising property values, increased infrastructure investment, and export growth. GDP rose 4.5% in the first quarter of 2023 compared with the previous year, beating analyst estimates. With China’s reopening, the country aims to reestablish confidence in the private sector after zero-COVID-19 policies and restrictive lockdowns dampened consumer and investor demand. Private investment ticked up only 0.6% year over year. [FT]
Prioritizing what matters. Soaring energy prices, rising inflation, and other shocks have taken most CEOs into a place they’ve never been before, say Homayoun Hatami, managing partner for global client capabilities, and chief client officer Liz Hilton Segel in an episode of The McKinsey Podcast. Consumer behavior is changing, and China’s reopening means that many companies must focus on how they collaborate with China. “As a CEO right now, your job is all about prioritization,” Segel explains.
What resilient companies do. Priority number one for leaders is building organizational resilience, Hatami shares. By taking action to preempt problems (for instance, putting systems in place to detect cybersecurity threats), resilient companies can withstand shock and adapt more quickly than others. Such companies also put a lot of effort into the most value-driving roles and having the best talent in those roles, Hatami reveals. Reflect on six priorities CEOs and other leaders must consider in today’s business environment.
— Edited by Belinda Yu, editor, Atlanta
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