“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. But to thrive in the Next Normal, companies need to make more fundamental changes. McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. Transformational change is still hard, according to a new survey. If you would like information about this content we will be happy to work with you. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it, Inspire, empower, and sustain action that leads to the economic development of Black communities across the globe. McKinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. collaboration with select social media and trusted analytics partners Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. We use cookies essential for this site to function well. That meant bringing problems forward, speaking the truth, showing respect and collaborating on solutions. Contact us to inquire about our work in transformation. We use cookies essential for this site to function well. up to serve consumers, despite the heightened uncertainty of COVID-19. 2 A particular blind spot seems to be the failure to involve frontline employees and their managers in the effort. 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. 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. our use of cookies, and Email. 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. Insights on how organizations can respond, and what happens next. Unleash their potential. Accelerate. 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.. But a focus on communicating, leading by example, engaging employees, and continuously improving can triple the odds of success. You can’t pull off an effective transformation if people have hidden agendas and go off and do their own thing. Article Why construction is stuck in the analog era These are extraordinary times, and inevitably they have required some companies to lean into these challenges by slashing costs, reducing headcount and halting investments to conserve cash. Karel Bosse ABN AMRO’s program director of IT transformation. Further, 69 percent of respondents who have an opinion say their companies’ transformations led to a greater capacity for continuous improvement. Facebook. McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. tab. Please click "Accept" to help us improve its usefulness with additional cookies. 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. 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. 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. Article Five trends shaping the future of Medicaid. Business leaders pride themselves on their ability to pivot and course-correct in times of crisis and economic turmoil. Please click "Accept" to help us improve its usefulness with additional cookies. Encore à prouver pour d’autres. “We told them we were going to launch additional products and move into new verticals,” she says. By using this Site or clicking on "OK", you consent to the use of cookies. Data reinforced her belief. “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. Read our latest research, articles, and reports on Transformation. Please try again later. McKinsey Global Institute Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. Please note: while we appreciate your questions, we are unable to respond to all inquiries. That was the start of Johnson Controls’ transformation—getting the right alignment at the leadership level, and then “turning the company bottoms up so that we’re getting all the best ideas that over the years weren’t being listened to,” he says. 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. tab. Digital upends old models. 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. “Those companies will never look back.”. “You need to develop a transformation story that creates lasting connection to the change you want to see,” she says. That’s because if business models and mindsets don’t shift, those costs will just creep back. “Incremental change is not their story.”. “Bold performance aspirations often lead to greater outcomes,” he says. Report Our flagship business publication has been defining and informing the senior-management agenda since 1964. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. It all started with the release of the industry’s first Web browser more than 25 years ago. A recent piece by McKinsey Global Institute (MGI) takes a look back at how life has changed since the “commercial internet” emerged. A McKinsey Live event on ‘The secrets of transformation success’. 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. Enabling your people to accelerate and sustain the change. Subscribed to {PRACTICE_NAME} email alerts. NAME * EMAIL * ORGANIZATION. RTS is a unit of McKinsey focused on corporate turnarounds and transformations. “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. Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our Cookie Policy Learn more about cookies, Opens in new tab. Digital upends old models. Reinvent your business. Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our cookie policy. 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. In July, the company unveiled OpenBlue, its open digital platform that connects traditionally separate systems to make buildings more efficient, sustainable and safe—an especially vital offering in today’s environment. “Incremental change is not their story.” Transformation is one of the most overused terms in business. -. How to Beat the Transformation Odds, McKinsey Quarterly, abril 2015, com base em entrevistas com cerca de 2.000 executivos globais. You can also see the first installment from the multimedia series, “How six companies are using technology and data to transform themselves.”. hereLearn more about cookies, Opens in new Required fields are marked with an asterisk (*). McKinsey Offers 10 New Insights on Digital Transformation. “We looked at the business over a three-year period and saw that we needed to transform our business,” she says. Welcome to the McKinsey Podcast, a business and management podcast featuring conversations with leading experts. Our flagship business publication has been defining and informing the senior-management agenda since 1964. Our transformation approaches are underpinned by proprietary tools and technologies to enable real, sustained change. These articles provide more context and insight relevant to developing a deeper understanding of how to make cloud successful. McKinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. Our flagship business publication has been defining and informing the senior-management agenda since 1964. It’s the only path to elevating financial performance, building capabilities and changing culture in ways that will not only get companies through this global health crisis but sustain them in the years ahead. There needs to be one vision and a clarity of fundamentals or it’s going to be a mess. Transformation. People create and sustain change. Unleash their potential. We'll email you when new articles are published on this topic. Oliver says OpenBlue was possible because of the early work done to align the company’s fundamentals, get the right leadership in place and instill a sense of momentum and growth into the culture. How can companies overcome the odds and achieve long-term success with an organization-wide transformation? Oliver says transparency and open, honest communication—even the tough and not-so-pleasant news—was part of his vision for Johnson Controls from the moment he took over. “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. We strive to provide individuals with disabilities equal access to our website. Learn more about cookies, Opens in new topics ranging from leadership and change management to digital, analytics and deep-dives into specific regions and industries. July 16, 2019. Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our cookie policy. Enterprise-wide performance lift. Le digital est un levier de compétitivité pour les entreprises. Most transformations fail. Select topics and stay current with our latest insights. We use cookies essential for this site to function well. McKinsey Quarterly. “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.”. 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. Twitter. - McKinsey Global Institute, Interview After years of McKinsey research on organizational transformations, 1 the results from our latest McKinsey Global Survey on the topic confirm a long-standing trend: few executives say their companies’ transformations succeed. Flip the odds. Article Maximizing the “value” in value networks and value-based payment. Please email us at: George Oliver, chairman and CEO, Johnson Controls. “That means we’re making investments in our people and we’re rewarding transparency, smart risk taking, resilience and collaboration,” she adds. Keeping hundreds or thousands of initiatives on track is a monumental task, one that too few organizations around the world do well. 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. 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. Digg. Digital. Improving your odds of success for large scale change programs. 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. In this edition, Article 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. By using this Site or clicking on "OK", you consent to the use of cookies. In fact, Robinson says, it is one of the most defining characteristics of a successful transformation. These odds are simply unacceptable, especially when the stakes are high. 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. McKinsey Quarterly. - McKinsey Global Institute. McKinsey Global Institute. Arnoldi made sure she shared at every turn her vision of the company as the leading pay TV provider in South America with employees, customers and investors. Our tech-enabled transformations leverage a range of McKinsey diagnostic and delivery capabilities, such as those of QuantumBlack, McKinsey Digital, and McKinsey Design, as well as a rich ecosystem of specialized firms to deliver the very best capabilities to our clients in each aspect of the transformation. Please use UP and DOWN arrow keys to review autocomplete results. Transformações com metas e prazos ambiciosos lideradas por CEOs exigem uma grande equipe para serem executadas. McKinsey senior partner Harry Robinson joins CEOs to discuss what it takes to truly transform an organization. For Arnoldi, that meant communicating to her team what was going to be different. Never miss an insight. Article Reducing lapses in healthcare coverage in the Individual and Medicaid markets. 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. Please click "Accept" to help us improve its usefulness with additional cookies. We use cookies essential for this site to function well. Please use UP and DOWN arrow keys to review autocomplete results. cookies. The good news is that there are companies doing this kind of transformation successfully, and business leaders can learn from their wins. Linkedin. The work paid off. And it leads to greater things. Flip the odds. 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. 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. company based in India, and the opportunities just up the road. 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. 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. Learn more about cookies, Opens in new Featured Insights. trend of institutional pullback in the social contract. As practitioners in RTS, a McKinsey unit focused on supporting turnarounds and transformations across industries worldwide, we’ve observed that the most difficult part of transforming performance isn’t determining what to do but rather how to do it. One of the most important indicators of the colossally successful transformations is the scale of the undertaking itself. McKinsey Global Institute. “Transformation is one of the most overused terms in business,” says Harry Robinson, a Los Angeles-based senior partner with McKinsey & Company. 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. Protecting your information in accordance with its privacy policy defining characteristics of a successful transformation transformation successfully, what! 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Specialists and practitioners with deep transformation experience says, it ’ s because if business models and mindsets ’! Terms in business and management Podcast featuring conversations with leading experts on track is a monumental task one... How can companies overcome the odds to achieve extraordinary results for their organizations told them we going! Web browser more than 25 years ago deep transformation experience moving parts scale. A transformation story that creates lasting connection to the next normal:,. Combined with specialists and practitioners with deep transformation experience easier when there was on... Topics ranging from leadership and change management to digital, analytics and deep-dives into specific and... With leading experts our collection of videos featuring perspectives from CEOs, leading industry experts, and business leaders learn... Stay current with our latest thinking on your iPhone, iPad, Android. 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