Data reinforced her belief. McKinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. But a focus on communicating, leading by example, engaging employees, and continuously improving can triple the odds of success. Reinvent your business. Insights from the McKinsey 2019 Consumer Social Determinants of Health Survey. Press enter to select and open the results on a new page. Flip the odds. We'll email you when new articles are published on this topic. There needs to be one vision and a clarity of fundamentals or it’s going to be a mess. That’s because if business models and mindsets don’t shift, those costs will just creep back. The good news is that there are companies doing this kind of transformation successfully, and business leaders can learn from their wins. Most transformations fail. Article Karel Bosse ABN AMRO’s program director of IT transformation. Please click "Accept" to help us improve its usefulness with additional cookies. Our flagship business publication has been defining and informing the senior-management agenda since 1964. In this article, we offer a closer look at how E&C companies can realize benefits like these. Arnoldi concurs. Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our cookie policy. By using this Site or clicking on "OK", you consent to the use of cookies. A quick, out-of-the-gate approach not only allows a company to notch early wins—more efficient use of working capital and faster ways of unlocking employee ideas, for instance—but it enables an organization to have the stamina to take on the tougher aspects of true transformation. “The companies that are doing transformation right have an all-in mentality from the start,” Robinson says. Organizational transformations are hard work, and according to the latest McKinsey Global Survey on the topic, 1 companies are no more successful at overhauling their performance and organizational health than they were ten years ago. Doing so is made easier when there’s a growth mindset, she adds. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. Taking a more holistic and expansive approach to transformation increases the chances that an organization will, in fact, see significant and sustainable improvement in the years ahead. It all started with the release of the industry’s first Web browser more than 25 years ago. There’s no denying that the fashion industry has been a major contributor to climate change and biodiversity loss—which... ’Tis the season for year-end lists. But there isn’t a CEO or management team on earth that’s experienced the health, financial and operational headwinds that have resulted from the coronavirus pandemic. Digital. Please click "Accept" to help us improve its usefulness with additional cookies. Our video series looks closer at all the moving parts. Please try again later. McKinsey research shows that more than 40 percent of a successful transformation’s value comes from growth initiatives—not cost cutting, layoffs or other slash-and-burn strategies. Our transformation approaches are underpinned by proprietary tools and technologies to enable real, sustained change. RTS is a unit of McKinsey focused on corporate turnarounds and transformations. trend of institutional pullback in the social contract. Featured Insights. Interview - McKinsey Quarterly Why a cut-and-paste approach to digital transformation won’t cut it: An interview with the founder of Biocon December 2, 2020 – Asian companies can reap many benefits if they not only embrace but also truly understand digital innovation, says Kiran Mazumdar-Shaw. our use of cookies, and In this special collection, we help executives overcome the odds by bringing together fact-based insights about the roles of strategy, innovation, technology, and organization in creating successful transformations. Please click "Accept" to help us improve its usefulness with additional cookies. cookies, McKinsey_Website_Accessibility@mckinsey.com, Harry Robinson: How companies must transform for success in The Next Normal, How six companies are using technology and data to transform themselves. “We looked at the business over a three-year period and saw that we needed to transform our business,” she says. Research by the McKinsey Global Institute indicates that digital transformation can result in productivity gains of 14 to 15 percent and cost reductions of 4 to 6 percent. Use minimal essential This collection is the second of five edited volumes to accompany our multimedia series, airing on CNBC, focusing on the forces shaping the next normal. These odds are simply unacceptable, especially when the stakes are high. up to serve consumers, despite the heightened uncertainty of COVID-19. Please use UP and DOWN arrow keys to review autocomplete results. We use cookies essential for this site to function well. Video The path to true transformation October 28, 2020 – To deliver lasting change, companies need to take actions that both boost performance and inspire their people. “The companies that are doing transformation right have an all-in mentality from the start,” Robinson says. Oliver says OpenBlue was designed to be a game changer, not a quick fix or interim solution. McKinsey senior partner Harry Robinson joins CEOs to discuss what it takes to truly transform an organization. Digital upends old models. Digg. And because Johnson Controls stretched and made those investments early on, it’s been able to respond to the Covid-19 crisis in a more robust way. Learn more about cookies, Opens in new Learn about our use of cookies, and collaboration with select social media and trusted analytics partners here Learn more about cookies, Opens in new tab. For true transformation to occur, employees need to aspire to something greater, the kind of mindset that makes them believe a cultural shift is possible. NAME * EMAIL * ORGANIZATION. Porte-étendard de la transformation digitale, le cabinet de conseil en stratégie McKinsey tire les enseignements d’un accompagnement à long terme d’entreprises de tous secteurs, privés et publics, en France et à l’international. This sense of urgency is one of the key elements that allowed Vrio, AT&T's Latin America digital entertainment services business unit, to gain market share and diversify its services over the past two years. Ulrich Weihe Senior Partner, Frankfurt Unterstützt weltweit Firmen der Chemie-, Biotech- und Prozessindustrien zu den Themen Strategie, M&A, Restrukturierung und Transformation, R&D und Merger Management. Reinvent your business. A McKinsey Live event on ‘The secrets of transformation success’. “I don’t think any leader has all the answers, but it is our responsibility if we’re going to embark on a transformation to have some guideposts for what the vision looks like, and to grow that vision over time,” she says. The Truth About Transformation | McKinsey & Company The truth about transformation Most organization-wide transformations fail. Read our latest research, articles, and reports on Transformation. McKinsey Quarterly. Insights on how organizations can respond, and what happens next. Share. Article Healthcare consumerism today: Accelerating the consumer experience. McKinsey’s research on more than 80 large-scale transformations shows that companies that conduct a comprehensive “full potential” analysis and set transformation targets that nearly doubled trailing earnings were more likely to realize outsized total return to shareholders gains. our use of cookies, and For instance, part of the OpenBlue platform uses cameras that can scan multiple people as they enter a building to detect if any of them have an elevated temperature, one of the biggest indicators of infection. Im Konsumsektor und in vielen anderen Branchen scheitern Transformationsprogramme oft. Mehr als 1.000 Digitalisierungsexperten arbeiten Digital Labs und unterstützen unsere Klienten in der digitalen Transformation der Grundlagen, des Kerngeschäftes und auch beim Aufbau neuer Geschäfte. Please fill out the form below to inquire about our work in Transformation. “And we were specific, saying that we’re going to transform our business to be over 60 percent digital by the end of 2020 and over 80 percent digital by the end of 2023.”. Facebook. For George Oliver, chairman and CEO of Johnson Controls, a building technology and solutions company, the transformation challenge was as clear as it was big: Make the 2016 merger of Johnson Controls and Tyco more cohesive, with a unified strategy and a leadership team all moving in lockstep. Recent research reconfirms earlier findings that only 30 percent of transformations deliver their intended benefits and meet the targets committed to during the program-planning stage.. Our flagship business publication has been defining and informing the senior-management agenda since 1964. Something went wrong. “Transformation is one of the most overused terms in business,” says Harry Robinson, a Los Angeles-based senior partner with McKinsey & Company. Stepping into the CEO’s role in September 2017, Oliver was convinced that small, discreet changes would not fix what was ailing the company. “You create a performance and growth culture when everyone is clear on how value is created and what their role is in creating that value, how they are accountable for making the company better and stronger,” he says. Transformation Insights. Learn about “You can’t pull off an effective transformation if people have hidden agendas and go off and do their own thing,” Oliver says. Please click "Accept" to help us improve its usefulness with additional cookies. “But there are companies out there undergoing real transformations that are creating a sense of urgency, resiliency and momentum to deliver material and sustainable results.”, Of course, a company would never seek out a pandemic to catalyze a transformation, Robinson says. Unleash their potential. If you would like information about this content we will be happy to work with you. Our work ranges from acute crisis and liquidity management to large-scale transformations. Our flagship business publication has been defining and informing the senior-management agenda since 1964. We strive to provide individuals with disabilities equal access to our website. cookies. Interview - McKinsey Quarterly Why a cut-and-paste approach to digital transformation won’t cut it: An interview with the founder of Biocon December 2, 2020 – Asian companies can reap many benefits if they not only embrace but also truly understand digital innovation, says Kiran Mazumdar-Shaw. Required fields are marked with an asterisk (*). Email. Learn about our use of cookies, and collaboration with select social media and trusted analytics partners here Learn more about cookies, Opens in new tab. But there are companies out there truly undergoing transformations that are creating a sense of urgency, resiliency and momentum to deliver real and sustainable results. “It’s almost a sense of ‘the bridge is burning and there’s no going back,’” says Melissa Arnoldi, Vrio CEO. Learn about Our flagship business publication has been defining and informing the senior-management agenda since 1964. It also meant engaging employees at every level of the organization. The numbers behind successful transformations October 17, 2019 – Crunching the numbers on transformations suggests good news for companies that go broad, move fast and renew often, prioritize health, and keep stretching their aspirations. Go behind the scenes and get more insights with “Harry Robinson: How companies must transform for success in The Next Normal” from our New at McKinsey blog. Please email us at: George Oliver, chairman and CEO, Johnson Controls. The series features... Watch our collection of videos featuring perspectives from CEOs, leading industry experts, and authors. -. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. And it leads to greater things. Digital upends old models. collaboration with select social media and trusted analytics partners We use cookies essential for this site to function well. Article Five trends shaping the future of Medicaid. We use cookies essential for this site to function well. “If we didn’t make the big changes we needed to at the beginning, I don’t know that we’d be in the good position we are today,” Oliver says. In fact, Robinson says, it is one of the most defining characteristics of a successful transformation. Das McKinsey Digital Lab in Berlin sowie acht weitere Digital Labs weltweit sind spezialisierte Kompetenzzentren, die Strategieberatung mit Design-, Agile- und Technologieexpertise vereinen. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. Article How to become ‘tech forward’: A technology-transformation approach that works. McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. The magnitude of the ambition needs to be a huge step change in performance. But for that kind of transformation, the right culture is required. “You have to paint a picture of where the business needs to head and why.”, Arnoldi says a flurry of macroeconomic forces, including foreign exchange fluctuations, government regulations and mounting competition from new and nimble streaming platforms in Vrio’s 10 markets, made it easier for her to make the case that quick and decisive action was necessary. But it doesn’t stop there. Please use UP and DOWN arrow keys to review autocomplete results. Trending topics. “We told them we were going to launch additional products and move into new verticals,” she says. Transformation. The work paid off. McKinsey Global Institute. July 16, 2019. “When that all comes together, it’s magic.”. Contact us to inquire about our work in transformation. Enterprise-wide performance lift. Flip the odds. When it comes to transformation, speed is your friend. Article Reducing lapses in healthcare coverage in the Individual and Medicaid markets. “That means we’re making investments in our people and we’re rewarding transparency, smart risk taking, resilience and collaboration,” she adds. Article The … A recent piece by McKinsey Global Institute (MGI) takes a look back at how life has changed since the “commercial internet” emerged. But to thrive in the Next Normal, companies need to make more fundamental changes. It started with making sure the company had the right leadership in every line of business, but Oliver says it was more expansive than that. hereLearn more about cookies, Opens in new “You have to be able to back up your vision with data to get people to understand why you’re doing something.”, Any truly successful transformation has to begin with the CEO creating conviction in employees to drive the change being sought. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. Research shows that 70 percent of transformations fail, but by starting boldly, acting fast, sharing a vision and stretching aspirations, business leaders can flip that script. tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. “People had been doing their jobs for years, but no one had been asking them what their ideas were or how things could be better,” Oliver adds. “Tyco and Johnson Controls each had a lot of legacy, but we still needed to blend multiple cultures together and reformulate it in such a way that the combined companies were in a position to win,” he says. Topics ranging from leadership and change management to large-scale transformations and management Podcast featuring conversations leading... Value for your organization are simply unacceptable, especially when the stakes are high performance aspirations often lead greater... 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Started with the release of the most defining characteristics of a successful.. Over a three-year period and saw that we needed to transform our business, ” Robinson says por! Asterisk ( * ) spot seems to be the failure to involve frontline employees and their in! Function well, a business and management bring to bear our firm ’ s going be! Regions and industries meant communicating to her team what was going to be one vision and a of! Why construction is stuck in the analog era transformation the senior-management agenda since 1964 additional cookies series features... our. Meant engaging employees at every level of the global economy, despite the heightened uncertainty of COVID-19 us mckinsey transformation insights usefulness... Tech forward ’: a technology-transformation approach that works to transform our business, ” says... An effective transformation if people have hidden agendas and go off and do their own thing and was. But to thrive in the effort from CEOs, leading by example, employees... Since 1964 article Healthcare consumerism today: Accelerating the Consumer experience Johnson Controls browser... `` OK '', you consent to the use of cookies 2015, com base em entrevistas com cerca 2.000! Chosen by 61 percent, is that there are companies doing this of...