McKinsey & Company

Much has been written on performance management. Why do so many employees still find it bureaucratic and unfair? On this episode of McKinsey Talks Talent, talent experts Bryan Hancock and Brooke Weddle speak with global editorial director Lucia Rahilly about new research on what drives performance: what motivates employees most, what matters less than you think, and the changes organizations need to make to ensure their feedback, ratings, and review processes are…

For an industry focused on mitigating risk and providing protection, the world’s insurers are enduring a particularly volatile age. The macroeconomic picture is mixed, with inflation stubbornly high and interest rates uncertain. Consumer confidence remains shaky, even though the economic growth cycle appears to have bottomed out. Geopolitical instability remains a perceived threat to global growth, and trade patterns are shifting amid signs of protectionism. Yet McKinsey’s Global Insurance Report…

This article is an in-depth analysis of commercial property and casualty insurers, one of three sections in the Global Insurance Report 2025.In an industry that revolves around reducing uncertainty for customers, commercial property and casualty (P&C) insurers are themselves confronting macroeconomic uncertainty across multiple fronts. Inflation has remained stickier than expected in many economies, while uncertainty persists around interest rate cuts. Consumer confidence is shaky even though the economic growth…

This article is an in-depth analysis of personal property and casualty insurers, one of three sections in the Global Insurance Report 2025.The personal lines property and casualty (P&C) industry writes about a quarter of the world’s insurance premiums. It protects people and their loved ones wherever they are, every day. Yet that means the disruption consumers have faced globally in recent years—from a global pandemic to rising costs, the increasing…

A male Eastern Bluebird perched on top of a mossy branch and set against a light blue background. Biodiversity refers to the full variety of life on Earth, from bacteria and plants to animals and entire ecosystems, such as mangrove forests or coral reefs. A wide range of flourishing flora and fauna species indicates an ecosystem’s overall health. Because biodiversity is critical to a number of industries—from pharmaceuticals to agriculture—there’s…

We’ve all heard someone say that something is “on” or “part of” the COO agenda. But all too often, what that means is unclear. Indeed, in a recent roundtable discussion, few COOs said that they had taken the time to think through and define their agenda. Part of the reason lies in how people become COOs. Most move into the role from a closely related operations position, making the transition…

In the rapidly evolving healthcare landscape, AI has the potential to reshape how consumers engage with medical services. Today, consumers in the United States can struggle with everything from finding the right insurance coverage to understanding when they should see a doctor, what it will cost, and how to manage their health. Many spend hours researching, conferring with friends and family, and calling providers and payers to find answers to…

Since my last China Brief, consumption has gained momentum, particularly with the unveiling of a series of economic stimulus measures since September 24. The highly anticipated annual Double 11 Shopping Festival, which ended on November 11, well exceeded industry expectations, further fueling excitement among industry executives around the pickup in consumption.Despite this momentum, the uncertainty that has hovered over the Chinese economy and consumption over the past year, driven by…

In this episode of McKinsey on Building Products, a podcast dedicated to the exploration of software product management and engineering, McKinsey partner Rikki Singh speaks with Robert Chatwani, president of growth at Docusign. Chatwani’s decades-long career has focused on the marriage of the marketing and growth functions to create more-compelling products. This discussion explores how to drive sustainable revenue growth and brand love through product-led sales. Singh and Chatwani explore…

Organizational health is crucial to long-term performance, yet it is a moving target. For more than 20 years, McKinsey’s Organizational Health Index (OHI) has examined the practices and outcomes that lead to better health (exhibit). Through extensive research that yielded our latest OHI insights, we identified emerging and evolving trends in technology, worker motivation, talent strategies, and leadership styles, among other critical health factors. Test your knowledge below. Authoritative leadership…

The rapid advancement of AI and generative AI (gen AI) is fundamentally transforming the cybersecurity landscape, presenting both opportunities and challenges for cybersecurity providers. As more organizations in both the private and public sectors use AI to enhance their operations, they risk inadvertently introducing new cyber-related threats. This is creating a significant and growing demand for advanced cybersecurity solutions. AI is also being used by bad actors as a tool…

A pair of red and white concrete road barriers aligned on a street against a light blue background. You know about guardrails on the highway: barriers along the edge of the road that protect vehicles from veering off course and into danger. With the advent of generative AI (gen AI), the concept of guardrails also applies to systems designed to ensure that a company’s AI tools, especially large language models (LLMs),…

On this page: Opportunity | Solution | Impact 0Kdocumentseasily searchable in database$0K+per hourestimated saved via recouped downtime0%improvement inapprox. 1st-time resolution rates The Opportunity Enhancing field service support with generative AI Ascendum is a Portugal-based global provider of machinery and equipment for the construction, infrastructure, haulage, and agriculture sectors. The company distributes and maintains over 25 different brands of construction machinery, industrial and infrastructure equipment, trucks, agricultural machinery, and specialized gear…

As India embraces digital transformation, inclusion, and a new role as a tech leader exemplified by a decade of technology transformation, or “techade,” new opportunities open up for the insurance sector and the wider financial services industry. With strong valuations and a significant growth trajectory, India’s insurance industry is poised for continued success. Accompanying this positive outlook, however, are concerns about profitability and notably slow innovation within the industry in…

A great aviator is constantly aware of their surroundings. Watching for changes in the weather and in the paths of other aircraft is vital. The same is true for being a great CEO, which is why the business press is full of information about what’s happening in the business environment: geopolitics, regulatory changes, inflation, generative AI, and so on. Equally important for a pilot’s success is understanding their aircraft and…

Today, banks use risk management to help drive strategic development for growth. This is a comprehensive approach to risk that insurers should aspire to emulate, especially as new risks are emerging more quickly and creating new challenges. According to a 2023–24 benchmarking survey from McKinsey, leading European insurers should look to reorganize their risk functions, build out the necessary capabilities, and elevate the status of chief risk officers (CROs) within…

Active portfolio management should always be “Plan A.” Corporations that consistently refresh their business mix outperform their peers in TSR by 3.5 percent over the long term, honing their portfolios to develop, acquire, and divest businesses to realize their enterprise strategy. The goal, after all, is not growth for growth’s sake but to maximize returns—which is achieved through a combination of growth and investing capital in an enterprise’s most important…

Decades after the internet’s debut, millions of Americans still lack access to high-speed broadband service. The Broadband Equity, Access, and Deployment Program (BEAD), part of the US government’s 2021 Infrastructure Investment and Jobs Act, provides $42.45 billion in federal funding to expand high-speed internet service across the country. By the end of 2024, all US states will mark an important milestone: they will be in a position to begin their…

Although hard to predict, even in the best of times, the fashion industry is in for a particularly tumultuous and uncertain 2025. A long-feared cyclical slowdown has arrived. Consumers, affected by the recent period of high inflation, are increasingly price sensitive. There is also the surprising rise of dupes, the acceleration of climate change, and the continued reshuffling of global trade. Regional differences, which came into focus in 2024, will…

Renewable energy is booming. Power generation from renewable sources, such as solar and wind, is projected to grow from its current share of about 25 percent of total US generation, to about 45 percent, by 2030. Although this new renewable capacity will help meet net-zero climate policy goals, it’s also contributing to power price volatility—an impact that many energy players didn’t plan for. The intermittent nature of solar and wind…

Power and gas trading is undergoing a transformation. The global trading value pool for these commodities is growing by leaps and bounds. It hit nearly $33 billion in 2023, up 50 percent from the year before. But that’s only part of the story. The rise of renewable energy has introduced greater volatility into gas and power markets, increasing the value of optionality and drawing new market entrants. This is creating unique…

Companies globally are looking to adopt Fourth Industrial Revolution (4IR) technologies to boost both productivity and sustainability. However, the path to success is fraught with challenges, from outdated legacy systems to the critical need for workforce upskilling. In some cases, companies need to overcome an image problem that makes it hard to recruit and retain the talent required to fill vacant production roles.In this episode of McKinsey Talks Operations, host…

Although capital deployment is strongly linked to enterprise value (EV) and financial health, it has always been difficult to manage. The chemical industry is no exception.Our research finds that the chemical industry anticipates annual growth of 3 to 5 percent by 2030, a 4 percent increase in capital expenditures, and the reallocation of significant capital to meet strategic and operational objectives. At the same time, chemical companies have been grappling…

Product portfolios tend to grow. Companies add new products and variants all the time to meet specific customer needs, pursue new market opportunities, or exploit technological advances. They can also be reluctant to kill off older items, for fear of upsetting long-standing customers. Finding the sweet spot in a portfolio is an ongoing challenge. Offer too little choice and customers will choose to play elsewhere, costing the company revenue. Offer…

The demand for oil and gas has returned to prepandemic levels; however, the energy transition is expected to change the demand trajectory for the industry over the medium- to long term. For oil, under all bottom-up scenarios modeled in our recent Global Energy Perspective 2024 report, demand is projected to continue to grow in the short term before plateauing over the next five to seven years and then declining due…

In this episode of McKinsey on Building Products, McKinsey’s podcast on software product management and engineering, McKinsey partner Rikki Singh speaks with Varun Parmar, general manager of Adobe. Throughout his career, Parmar has led product teams at technology companies that are leaders in product-led growth (PLG), such as Box, Miro, and Adobe. Their topics of discussion include how exceptional products drive growth, the importance of reducing the amount of time…

A 3D rendering of light bulb covered with green grass and blooming yellow flowers against light gray backgroundAs with many aspects of modern life, technology has a significant role to play in tackling climate change—arguably the greatest challenge our species has ever faced. But to avoid the most devastating effects of a warming planet, we’ll need to utilize not only the most cutting-edge technological tools but also the natural systems that…

Technology has reshaped banking. Traditional financial institutions have grown their technology teams and are demanding more from them than ever before. Technology teams build innovative new products such as AI-enabled personalized customer experiences, digital payments, and analytics-driven cross-selling. They integrate acquisitions, automate back-office processes, and securely manage vast amounts of data. A look through a bank’s strategy reveals that most of the initiatives require extensive technology delivery. Yet many banks…

Of all the various AI technologies, generative AI (gen AI) has arguably captured the most excitement among organizations in the business world and the public sector. Its ability to automate activities across a range of functions—customer interactions, content generation, and computer coding, for example—promises to reshape how much work gets done and boost performance.McKinsey research has estimated that the application of gen AI to 63 use cases could generate global…

Residential battery energy storage systems (BESS) primarily serve two purposes for homeowners. First, they capture energy generated by solar panels and store it for use when needed, such as in periods of inclement weather or when grid electricity rates increase. Second, they can act as backup generators, providing power during potential outages.In recent years, the European residential BESS manufacturing industry experienced exponential demand growth, fueled partly by consumer desire for…

Mustering adequate human resources for healthcare is a significant challenge for most health systems globally. Everywhere you look, countries are facing shortages in qualified healthcare personnel, uneven distribution of workers, inadequate training, and challenging work environments. These issues are most acute in low- and middle-income countries, particularly in Africa, which carries an estimated 25 percent of the world’s disease burden but accounts for only 3 percent of the global healthcare…

Australia’s general insurers have been facing more frequent and more severe natural disasters, rapid inflation of claims costs, and increased scrutiny from regulators—all while trying to achieve sustainable financial performance. At the same time, the cost of insurance has become increasingly unaffordable for consumers. Insurers trying to outperform in this competitive environment and offer affordable products should look at step-change productivity improvements such as the three levers described in this…

In 2021, we asked whether the private-brand trend would last. At the time, consumers were eagerly snapping up retailers’ owned brands, which were lower-priced and more readily available than similar products from many national brands. Fast-forward to today: our research clearly shows that consumers are continuing to opt for private brands. The trend is continuing in both Europe and the United States. McKinsey’s latest consumer sentiment research shows that nearly 75…

Generative AI (gen AI) promises to transform business processes. The value added from gen AI could reach $ 4.4 trillion per year, according to McKinsey analysis. Historically, the packaging industry has lagged behind other industries in adopting new digital technologies—including traditional AI and machine learning. However, even in this industry, excitement is building around generative AI. We conducted a survey of more than 200 paper and packaging executives across substrates…

Math is wonderful—because it works. Consider a classic valuation question: Is the whole worth the sum of its parts? Put another way, should the total value of a conglomerate be less than the value of its operating companies, if each business were measured on a stand-alone basis? The answer is no, of course not. Two plus two does not equal five, and when it comes to conglomerates, it should not…

A golden outline of a speech bubble is filled with a jumble of colorful, balloon-like spheres. The spheres vary in size, color, and texture, and the image is set against a light-gray background. In recent years, large language models (LLMs) have made tremendous progress in their ability to generate content. But some leaders who hoped these models would increase business efficiency and productivity have been disappointed. Off-the-shelf generative AI (gen…

Hurricanes Helene and Milton wrought destruction as they lashed across the southeastern United States in late September and early October. Lives were lost. Properties were ruined. Amid this devastation, it’s worth noting the considerable toll that storms like these can take on the small businesses that happen to lay in their paths. Small businesses can help knit together the fabric of a community, and many people depend directly on such…

One night, over dinner, Daniel Kahneman changed my perspective on value creation. Why do so many people, including leaders of large corporations, draw back from acting more boldly, even when taking incremental risks can create much greater returns? And perhaps more important: Can anything be done about it? Kahneman explained to me that while it’s hard to change human nature, it’s much easier for organizations to take practical steps to…

The race is on to build sufficient data center capacity to support a massive acceleration in the use of AI. Data center demand has already soared in response to the role data plays in modern lives. But with the emergence of generative AI (gen AI), demand is set to rise even higher. And that is likely to presage a supply deficit. As challenging as this could be, companies and investors…

According to economic historian Dr. Chris Miller, “You can’t understand the modern world without putting chips at the center of the story.” That conviction led Miller, an associate professor at the Fletcher School at Tufts University and nonresident senior fellow at the American Enterprise Institute, to research and write the 2022 nonfiction best seller Chip War: The Fight for the World’s Most Critical Technology. In an interview with McKinsey alumnus…