These include embedding risk into strategy and improving overall resilience. Banks can learn to manage nonfinancial risks by observing the effective approaches corporates have developed.McKinsey’s suggested approach can help companies establish sales-led pricing for inflation while maintaining long-term value for the business and its customers.
Businesses facing inflation are caught between the need to reprice and sustain margins and the damage this can do to customer relationships and sales. The Consumer Price Index rose faster in January than at any time in the prior 40 years.Here are other key findings from our research this week: In a conversation with McKinsey Real Estate Practice leader Aditya Sanghvi, Hoskins discusses how COVID-19 made it even more essential to design offices around organizational strategies, leadership models, operational frameworks, and potential outcomes of a company. Companies can improve women’s promotion rates by providing equitable access to skill building, implementing a structured promotion process that seeks to remove bias, and building a strong culture of support for women via mentors and sponsors.ĭiane Hoskins, co-CEO of Gensler, a global design and architecture firm, has been thinking about effective workplaces for decades and is now helping her clients navigate the next normal. In technical roles, only 52 women are promoted to manager for every 100 men, according to McKinsey’s Women in the Workplace 2021 report, coauthored with LeanIn.Org. HR leaders can use people analytics to identify big-picture attrition patterns, illuminate how office space is being used, and automate parts of the recruiting process, including finding diverse candidates. On McKinsey Talks Talent, HR expert David Green speaks with McKinsey talent experts Bryan Hancock and Bill Schaninger. Leaders should think about ways to expand opportunities, including by being honest with themselves and the labor market about which jobs truly require a college degree. Autor identifies pandemic paradoxes, which include that many thought US poverty and joblessness would skyrocket, but the opposite occurred when poverty rates plummeted to unprecedented lows and the United States ended up with a labor shortage. The latest episode of the McKinsey Global Institute’s Forward Thinking podcast features David Autor, the Ford Professor of Economics at the Massachusetts Institute of Technology.
The main risk to the transition to endemicity is a significantly different and more severe new variant that replaces Omicron as the dominant strain. By and large, the six-month outlook in many countries is brighter than at any time in the past two years. As long as Omicron remains the dominant variant, there is reason for relative optimism in the United States, for example, hospitalizations would remain low (exhibit). In the latest edition of our “ When will the COVID-19 pandemic end?” series, McKinsey examined scenarios that would lead to either reigniting a pandemic-level crisis or further steps toward endemicity.
With a possible conclusion in sight, this week McKinsey focused on how postpandemic workforces can be supported with expanded opportunity, digital tools, more equitable promotions, and better office design. But for now, the pandemic phase looks to be ending. A new variant may yet trigger another chapter in the COVID-19 pandemic, and societies must be prepared to respond if and when that happens.