According to McKinsey, the year 2020 saw huge change and suffering from three main challenges and organizations gained some invaluable insights that we share briefly here.
Major Organizations' Challenges
According to McKinsey, the year 2020 saw tremendous change and suffering from three main challenges:
Challenge No.1: The pandemic
The second one: concerns over racial justice and
The Final challenge: climate change
Meeing those challenges, let the businesses to gain great insights for now and future.
Main Organizations' insights
From the start of what turned out to be a year filled with crises and heroic responses, McKinsey produced a record stream of articles, reports, and new features to help the world come to grips with what was happening and begin to define the next normal that we’re all now living through. Here we have selected our most favorite innovative insights that the McKinsey Global Publishing team brought to the management world in 2020.
We think the following one, would be very useful in meeting most of the above challenges. Inclusion and diversity, for example, are the insights from the second challenge. Considering sustainability and environment management are the lessons learned or re-learned during 2020, to be the final one.
In this article, we set out seven actions that have come up repeatedly in our discussions with business leaders around the world. In each case, we discuss which attitudes or practices businesses should stop, which they should start, and which they should accelerate.
1. From ‘sleeping at the office’ to effective remote working
Stop assuming that the old ways will come back
Accelerate best practices around collaboration, flexibility, inclusion, and accountability
Remote working means no commuting, which can make work more accessible for people with disabilities; the flexibility can be particularly helpful for single parents and caregivers.
2. From lines and silos to networks and teamwork
Stop relying on traditional organizational structures
Start locking in practices that speed up decision making and execution during the crisis
Accelerate the transition to agility
3. From just-in-time to just-intime and just-in-case supply chains
Stop optimizing supply chains based on individual component cost and depending on a single supply source for critical materials
The argument for more flexible and shorter supply chains has been building for years.
Start redesigning supply chains to optimize resilience and speed
Accelerate ‘nextshoring’ and the use of advanced technologies.
4. From managing for the short term to capitalism for the long term
Stop quarterly earnings estimates
Start focusing on leadership and working with partners, especially government to create a better future
Accelerate the reallocation of resources and infrastructure investment
5. From making trade-offs to embedding sustainability
Stop thinking of environmental management as a compliance issue
Start considering environmental strategy as a source of resilience and competitive advantage.
Environmental management is a core management and financial issue.
Accelerate investment in innovation, partnerships, and reporting
6. From online commerce to a contact-free economy
Stop thinking of the contactless economy as something that will happen down the line
Start planning how to lock in and scale the crisis-era changes+
Accelerate the transition of digitization and automation
7. From simply returning to returning and reimagining
Stop seeing the return as a destination
There are four areas to focus on: recovering revenue, rebuilding operations, rethinking the organization, and accelerating the adoption of digital solutions.
Start imagining the business as it should be in the next normal
In case you are interested to know some of other business insights in Persian, you can see here.
If you are interested to read the full text, could you please refer to the following link.
Source: McKinsey website, access date: 25.Dec.2020