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How chief strategy officers think about their role: A roundtable

May 2008

Chief strategy officers from several high-profile companies discuss the complexities and challenges of the role.

Featured Strategy, Strategic Thinking Article, companies response to competitors survey
How companies respond to competitors: A McKinsey Global Survey

May 2008

Management theory suggests that companies facing serious competitive threats should extensively analyze how to fight back. Actual managers, however, say they are satisfied with the results of a less active approach, according to a McKinsey survey. Companies that understand how their competitors really react may be able to gain an edge.

Featured Strategy, Strategic Thinking Article, Communicating with right investors
Premium Content
Communicating with the right investors

April 2008

Executives spend too much time talking with investors who don’t matter. Here’s how to identify those who do.

The Archive

2008
Addressing consumer concerns about climate change Premium Content

March 2008

Businesses must act on global warming and other issues to narrow a general trust gap between them and the public.

Enduring ideas: The 7-S Framework

March 2008

In one of a series of interactive presentations, Lowell Bryan, a director in McKinsey's New York office, examines 7-S, a framework introduced to address the critical role of coordination, rather than structure, in organizational effectiveness.

Innovation in health care: An interview with the CEO of the Cleveland Clinic

March 2008

Delos "Toby" Cosgrove discusses innovation in health care—including a key role for top executives to play in reducing the nation’s health care burden.

Making the board more strategic: A McKinsey Global Survey

March 2008

Corporate directors want to spend more time developing forward-looking strategies that help maximize shareholder value. Boards that are already highly influential in creating corporate value work differently.

The state of corporate philanthropy: A McKinsey Global Survey

February 2008

Consumers’ growing expectations of companies make corporate philanthropy more important than ever. But many respondents to this survey say their companies aren’t meeting social goals or stakeholder expectations very effectively. Companies that are doing well are taking a more strategic approach.

2007
Crafting a message that sticks: An interview with Chip Heath

November 2007

The key to effective communication: make it simple, make it concrete, and make it surprising.

Harnessing the power of informal employee networks Premium Content

November 2007

Formalizing a company’s ad hoc peer groups can spur collaboration and unlock value.

Innovative management: A conversation with Gary Hamel and Lowell Bryan

November 2007

Forward-looking executives must respond to the growing need for a new managerial model.

Strategy's strategist: An interview with Richard Rumelt

November 2007

A giant in the field of strategy ruminates on strategic planning, diversification and focus, and the role of the CEO.

CEOs on strategy and social issues

October 2007

Business leaders are now more inclined to incorporate society’s expectations into their core strategies but face many challenges when they do.

How to improve strategic planning Premium Content

August 2007

It can be a frustrating exercise, but there are ways to increase its value.

Better strategy for business units: A McKinsey Global Survey

July 2007

Executives are most positive about the outcomes of strategy formulation for their companies’ business units when they work at companies that use a collaborative approach. And while they say following best practices yields better results, they use those practices less often than they think they should.

Better strategy through organizational design Premium Content

May 2007

Redesigning an organization to take advantage of today’s sources of wealth creation isn’t easy, but there can be no better use of a CEO’s time.

Building the civilized workplace

May 2007

Nasty people don't just make others feel miserable; they create economic problems for their companies.

Exploring business's social contract: An interview with Daniel Yankelovich

May 2007

A founding father of public-opinion research explains why shareholder value isn't enough.

Investing in sustainability: An interview with Al Gore and David Blood

May 2007

The former vice president and his partner in an investment-management firm argue that sustainability investing is essential to creating long-term shareholder value.

The elusive goal of corporate outperformance Premium Content

April 2007

Few large global companies outperform their competitors on both revenue growth and profitability over a decade. Do those that do have anything else in common?

The halo effect, and other managerial delusions

February 2007

Companies cannot achieve superior and lasting business performance simply by following a specific set of steps.

The new metrics of corporate performance: Profit per employee Premium Content

February 2007

Most measurements of performance are geared to the needs of 20th-century manufacturing companies. Times have changed. Metrics must change as well.

CEOs as public leaders: A McKinsey Survey Premium Content

January 2007

US business executives say they should play a much greater role in shaping debate about sociopolitical issues and leading efforts to effect change.

2006
Improving strategic planning: A McKinsey Survey

September 2006

Executives say their companies could be a lot more effective at developing a strategy and implementing strategic plans, and they suggest some areas for improvement.

One business's commitment to society: An interview with the president of the Novartis Foundation for Sustainable Development

August 2006

Klaus M. Leisinger discusses one company's contribution to the global fight against poverty and disease.

Shaping strategy from the boardroom Premium Content

August 2006

As companies turn their attention from compliance to growth and innovation, boards must focus on strategy.

The irrational component of your stock price Premium Content

July 2006

In the short term, emotions influence market pricing. A simple model explains short-term deviations from fundamentals.

Competitive advantage from better interactions Premium Content

May 2006

Tacit interactions are becoming central to economic activity. Making those who undertake them more effective isn't like tweaking a production line.

Learning to let go: Making better exit decisions Premium Content

May 2006

Psychological biases can make it difficult to get out of an ailing business.

Distortions and deceptions in strategic decisions

February 2006

Companies are vulnerable to misconceptions, biases, and plain old lies. But not hopelessly vulnerable.

Shaking up the labor movement: An interview with the head of the Service Employees International Union

February 2006

Andy Stern discusses his ideas for reversing the long decline of US organized labor.

The human factor in strategic decisions

February 2006

Executives should recognize and compensate for cognitive biases and agency problems.

2005
Beating the odds in market entry Premium Content

November 2005

How to avoid the cognitive biases that undermine market entry decisions.

Strategy in an era of global giants Premium Content

November 2005

The world's biggest companies are learning to manage complexity.

The next revolution in interactions Premium Content

November 2005

Successful efforts to exploit the growing importance of complex interactions could well generate durable competitive advantages.

From push to pull: The next frontier of innovation Premium Content

August 2005

Some companies are learning how to take a more creative approach to mobilizing resources.

Getting bigger

August 2005

The world's largest companies are more successful than ever, but scale brings its own challenges.

What is the business of business? Premium Content

August 2005

By building social issues into strategy, big companies can recast the debate about their role in society.

Leading a turnaround: An interview with the chairman of D&B Premium Content

May 2005

Allan Loren explains how he delivered double-digit earnings growth during each of the past four years and raised the company's value by more than 300 percent.

The view from the boardroom Premium Content

March 2005

A McKinsey survey of directors shows that they’re tired of playing defense.

2004
Making a market in knowledge

August 2004

For companies and their employees alike, knowledge is power—and profit.

A new look at diversification Premium Content

February 2004

In basic materials, only diversified companies approach an efficient portfolio’s risk–return performance, since they can exploit negative correlations among the business cycles of different commodities.

2003
What transformation means for the defense industry Premium Content

August 2003

Warfare will surely be transformed. But how, and by whom?

The value in organization

June 2003

CEOs must now be more architect than general: the job is to design working environments where thousands of people know what to do, cooperate to get it done, and experience it as personally fulfilling.

Hidden flaws in strategy Premium Content

May 2003

Can insights from behavioral economics explain why good executives back bad strategies?

Strategic minds at work

May 2003

Companies that embrace strategies based on high ethical standards are more likely to succeed.

2002
Edging into Web services Premium Content

December 2002

Automating the flow of information among companies is costly and complex. Web services, argues John Hagel, promise to make it cheap and easy.

How to win in a financial crisis Premium Content

November 2002

When is a good time to make strategic advances? During a crisis, of course.

Are you too focused? Premium Content

June 2002

As successful companies mature, they must diversify to survive—and they can dramatically improve their shareholder returns as they do. The only questions are when and how.

Just-in-time strategy for a turbulent world Premium Content

June 2002

Uncertainty and rising levels of risk make it impossible for companies to determine the future. But a portfolio-of-initiatives approach to strategy can help ensure that companies take full advantage of their best opportunities without taking unnecessary risks.

Learning to love recessions Premium Content

June 2002

Most companies battened down the hatches during the recession of the early ‘90s. But the more successful competitors pressed their advantages.

Loosening up: How process networks unlock the power of specialization Premium Content

June 2002

Cutting-edge companies are swapping their tightly coupled processes for loosely coupled ones—making themselves not only more flexible but also more profitable.

Strategy in crisis

June 2002

The past is no longer a guide to the future. To meet the challenges of discontinuity and to perform like markets, a corporation must learn to change as rapidly as they do.

Tired of strategic planning?

June 2002

Many companies get little value from their annual strategic-planning process. It should be redesigned to support real-time strategy making and to encourage ’creative accidents.’

What makes your stock price go up and down Premium Content

May 2002

Identifying and understanding important individual investors can help corporate executives predict the direction of share prices.

2001
Making the most of uncertainty Premium Content

November 2001

In extremely uncertain environments, shaping strategies may deliver higher returns, with lower risk, than they do in less uncertain times.

Beyond the unbundled corporation Premium Content

August 2001

A new business model may forever change the way companies compete.

The race to the bottom Premium Content

August 2001

When industries deregulate, their managers face unfamiliar challenges. Price wars are often the unfortunate—and unnecessary—result.

The winner-takes-all economy Premium Content

February 2001

Across industries and nations, a select few companies are creating almost all of the new shareholder value. Atomization is driving their success.

2000
Bringing discipline to strategy Premium Content

June 2000

Are you making three very big—and often very bad—assumptions? Don’t assess uncertainty unless you are willing to abandon your favorite formulas. Bets and options may be more important than positioning choices.

Delivering value to customers Premium Content

June 2000

In many cases the customer—not the competition—is the key to a company's prospects.

Gaining advantage over competitors Premium Content

June 2000

You can outstrip your competitors in myriad ways, many of which call for you to rewrite the standard "rules" of your industry

Games managers should play Premium Content

June 2000

Game theory can help managers make better strategic decisions when facing the uncertainty of competitive conduct. If you don't change your game to gain advantage, one of your competitors will.

McKinsey on strategy

June 2000

Each article in McKinsey on Strategy presents an important perspective on a single aspect of strategy. Taken together, they represent a formidable body of knowledge, distilled from the experience of thousands of McKinsey consultants, about the art and science of business strategy.

On the origin of strategies Premium Content

June 2000

Evolution across a population is nature's trick for mastering uncertainty. Businesses can use it too.

Spider versus spider Premium Content

June 2000

Are "webs" a new strategy for the information age?

Strategy at the edge of chaos Premium Content

June 2000

"Fishbowl" economics once provided the basis of corporate strategy, but no longer. New theories show that markets are "complex adaptive systems." Can managers be more than blind players in an evolutionary business game?

Strategy under uncertainty Premium Content

June 2000

The traditional approach to strategy requires precise predictions and thus often leads executives to underestimate uncertainty. This can be downright dangerous. A four-level framework can help.

The new infomediaries Premium Content

June 2000

Developing and marketing consumer profiles in the information age is a growth industry built on trust.

The real power of real options Premium Content

June 2000

Change the way you create value: The case for applying options thinking to any strategic situation.

Thinking strategically Premium Content

June 2000

A company should make sure that it is the best possible owner of each of its business units—not simply hold on to units that are strong in themselves.

Unbundling the corporation Premium Content

June 2000

The forces that fractured the computer industry are bearing down on all industries. In the face of changing interaction costs and the new economics of electronic networks, companies must ask themselves the most basic of all questions: what business are we in?

Best practice does not equal best strategy Premium Content

May 2000

Benchmarking is an important way to improve operational efficiency, but it is not a tool for strategic decision making. When competitors all try to play exactly the same game, declining margins are bound to follow.

1999
Turning capabilities into advantages Premium Content

February 1999

Operational excellence is not the whole story. Successful companies need privileged assets, growth-enabling skills, and special relationships too. How to bundle them into a competitive edge.

1998
A case for corporate freedom Premium Content

August 1998

Market forces have pushed many countries toward economic freedom. Have our organizations kept pace?

Best practice and beyond: Knowledge strategies Premium Content

February 1998

Value created by knowledge is often not captured. Five accounts of knowledge strategies.

Industrial venture capitalism: Sharing ownership to create value Premium Content

February 1998

The idea is this: share ownership of assets with the managers responsible for generating value from them. Then create greater transparency between markets and these owners. And make sure intervention is both difficult and expensive.

The new economics of organization Premium Content

February 1998

In their purest forms, markets motivate and hierarchies coordinate. Have we learned to combine the best of both? Two challenges for the corporations of the future: entrepreneurialism and knowledge.

1997
The atomization of markets Premium Content

May 1997

"Petropreneurs" have created almost all the market value in the past five years, and deal-making skills have become more important than scale or technology. Is it time the majors did something radical?

A revolution in interaction

February 1997

A new study of interactions reveals how pervasive they are. As they increase in number, answers to fundamental questions about intergration, scale, and scope will change. But what will happen when workers can carry out their jobs in half the time?

Is your core competence a mirage?

February 1997

Managers now consider just about everything a potential competence. Are you measurably better, can you sustain the difference, and does it matter? Building a core competence: three options.

Net Gain: Expanding markets through virtual communities Premium Content

February 1997

Virtual communities will fundamentally change how companies develop, price, and promote their products. Marketers that “get it” will encourage community members to communicate with them and each other. The purpose of advertising will shift from building awareness to selling. There will be new levels of loyalty and disloyalty.

1995
The beginning of system dynamics Premium Content

November 1995

Modeling afforded a number of insights about why high-technology companies fail. It is much harder to change decision-making procedures than we realized when system dynamics started. Whether in school or mangement education, the focus will be on "generic structures."

Technology and evolution: Escaping the Red Queen effect Premium Content

February 1995

The same laws may govern the evolution of organisms and organizations. “Rugged fitness” landscapes determine the rate of innovation. Breaking your company into “patches” to balance order and chaos.

1994
Positive feedbacks in the economy Premium Content

February 1994

An important new theory about how small chance events early in the history of an industry or technology can tilt, forever, its competitive balance.

1993
When and when not to vertically integrate

August 1993

A strategy as risky as vertical integration can only succeed when it is chosen for the right reasons.

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