McKinsey Monthly Highlights in February 2023

 

Here’s why human-centric innovation is necessary

Even a great idea or mission can be crippled by design that doesn’t put people first. Why should human considerations—such as their needs, wants, and dreams—only come into the conversation later? By centering empathy and understanding in design research, companies can both reduce risk in the idea-generating stage and ensure people are at the heart of the process, write senior partners Ewan Duncan and Kevin Neher. These needs also include the needs of the planet, society, and what matters to us as human beings. Explore our insights to learn more about human-centric design, including how to balance designing for individuals versus everyone, why first-hand research can change the game, and why it’s important to innovate for the needs of future people too.

January 22, 2023

Even a great idea or mission can be crippled by design that doesn’t put people first. Why should human considerations—such as their needs, wants, and dreams—only come into the conversation later? By centering empathy and understanding in design research, companies can both reduce risk in the idea-generating stage and ensure people are at the heart of the process, write senior partners Ewan Duncan and Kevin Neher. These needs also include the needs of the planet, society, and what matters to us as human beings. Explore our insights to learn more about human-centric design, including how to balance designing for individuals versus everyone, why first-hand research can change the game, and why it’s important to innovate for the needs of future people too.

Author Talks: PepsiCo’s Mauro Porcini talks meaningful design and mentorship

CX without design only gets you halfway

Innovation: Your solution for weathering uncertainty

Beyond contactless operations: Human-centered customer experience

Human-centered design: A win for real-estate stakeholders

Author Talks: Design your future

The future of the high-rise: Creating people-centric spaces

The rebirth of workspace design: An interview with Gensler co-CEO Diane Hoskins

Fear factor: Overcoming human barriers to innovation

Combining human expertise with state-of-the-art logistics technology

The business value of design

 

Is your pricing strategy cutting it?

February 5, 2023

The Federal Reserve on Wednesday announced another interest rate hike—albeit its smallest since last March—as it pushes to rein in prices. In the meantime, companies are still grappling with if and how they should adjust their pricing to offset continued inflation without jeopardizing future revenues. Re-pricing is necessary to sustain margins in a period of rising costs, write partner Alex Abdelnour and senior partner Emily Reasor. And when done the right way, recovering your cost of inflation on a case-by-case basis can even strengthen relationships and overall margins. Explore these insights to understand why your company should take nuanced approaches to pricing in today’s inflationary environment.

Five ways to ADAPT pricing to inflation

Pricing during inflation: Active management can preserve sustainable value

Winning the race with inflation: The pricing opportunity for industrial companies

Countering inflation: How US P&C insurers can build resilience

Implementing inflation response strategies at defense companies

How Europe’s CPG leaders can navigate inflation

Hitting the mark: Why markdowns matter more than ever

Four ways to achieve pricing excellence in retail marketplaces

Defying cost volatility: A strategic pricing response

The dos and don’ts of dynamic pricing in retail

Pricing and promotions: The analytics opportunity

Pricing: The next frontier of value creation in private equity

Digital pricing transformations: The key to better margins

 

Building business ecosystems that support Black entrepreneurs

February 4, 2023

Despite the ingenuity and striving of generations, Black Americans have found their opportunities systematically limited by racial inequities in virtually every aspect of society and the economy, write senior partner Shelley Stewart and senior partner emeritus James Manyika. Dismantling the barriers that have kept Black Americans from fully participating in the US economy could unleash a wave of growth, dynamism, and productivity. In a four-part series, we’ll dive into the critical gaps Black Americans face in their roles as entrepreneurs, workers, consumers, and residents. In this first collection, check out our research on Black business ownership—and the opportunities to build more supportive ecosystems. Be sure to bookmark this page for more insights from the McKinsey Institute for Black Economic Mobility throughout #BlackHistoryMonth.

A guide to impact investing in Black economic mobility

Expand diversity among your suppliers—and add value to your organization

Building Black-owned brands to accelerate prosperity

Building supportive ecosystems for Black-owned US businesses

Black representation in the beauty industry

The Black unicorn: Changing the game for inclusivity in retail

Black-owned businesses face an unequal path to recovery

More from McKinsey:

McKinsey commits USD 15 million to support Black-owned businesses and help fuel economic development

What will it take to build more Black-owned businesses?

The world of work is still evolving

January 29, 2023The workplace we once knew—but arguably never really loved—is no longer. The pandemic propelled remote work, virtual transactions, and adoption of digital technologies. Then came the Great Attrition: Craving flexibility, employees quit their jobs in droves, taking time to tend to their personal lives or embarking on sabbaticals. HR professionals continue to rethink how they manage their people and the best way to do so, and new HR operating-model archetypes are emerging in response to dramatic changes in business and in the world, write partners Neel Gandhi, Asmus Komm, and Florian Pollner. To say the world of work has been flipped upside-down in recent years is an understatement. Explore these insights to see where we’ve been, where we are, and where we’re going.

Workplace rituals: Recapturing the power of what we’ve lost

HR’s new operating model

What is the future of work?

Reimagining HR: Insights from people leaders

European talent is ready to walk out the door. How should companies respond?

Women in tech: The best bet to solve Europe’s talent shortage

The Great Attrition is making hiring harder. Are you searching the right talent pools?

Talent in a changing market: What now?

Quiet quitting and performance management

This time it’s personal: Shaping the ‘new possible’ through employee experience

(Extremely) out of office: Let nature boost your team’s creativity and performance

Addressing employee burnout: Are you solving the right problem?

Race in the workplace: The frontline experience

How to become a tech-forward business

January 28, 2023In the face of a business environment plagued with uncertainties, organizations are turning to technology to help lower costs and optimize productivity, and with good reason. Among McKinsey-surveyed companies in 2020 that were able to successfully undergo a tech transformation, 50 percent reported moderate to significant impact on realizing new revenue streams, almost 70 percent reported impact on increasing existing revenue streams, and 76 percent reported impact on reducing costs. But modernizing technology requires companies do multiple things well to capture all the value that’s there for the taking, write partners Anusha Dhasarathy and Thomas Elsner, and senior partner Naufal Khan. Dive into these insights to understand how to compete and succeed in a digital world.

The Tech:Forward recipe for a successful technology transformation

Prioritising technology transformations to win

McKinsey Technology Trends Outlook 2022

Seven lessons on how technology transformations can deliver value

Managing the fallout from technology transformations

Tech-enabled business transformation: The trillion dollar opportunity

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