Sector News

The drumbeat of digital: How winning teams play

July 3, 2019
Borderless Future

Most executives we know have a powerful, intuitive feel for the rhythm of their businesses. They know how hard and fast to pull strategic levers, move their organization, and drive execution to achieve their objectives. Or at least they did. Digitization has intensified the rhythm of competition in many industries, leaving executives adrift, with information-gathering systems that are too slow or disconnected, direction-setting approaches that are too timid, and talent-management norms that are misaligned and incremental.

These leaders know their companies must adjust and accelerate. Digital is putting pressure on profit pools as it transfers an increasing share of value to consumers. Furthermore, those profit pools are bleeding across traditional industry lines as advanced technologies enable companies to forge into adjacencies, changing who in the value chain is making money, what share of the pie they capture, and how. The slow and inefficient are left behind, competing for scraps.

What is unclear to these executives, however, is how much and how fast to adapt their business rhythms. The exhortation to “change at the speed of digital” generates more anxiety than answers. We have recently completed some research that provides clear guidance: digital leaders appear to keep up a drumbeat in their businesses that can be four times faster, and twice as powerful, as those of their peers.

In earlier studies, we identified 11 strategic and operational practices that are tightly correlated with the successful execution of digital efforts. More recently, we asked more than 1,500 executives how frequently their companies carry out these 11 practices. The responses of the best-performing companies—those in the top decile for organic revenue growth—suggest that the accelerated repetition of certain critical practices is closely associated with adaptive cultures that are comfortable with change, learning all the time, and swiftly responsive.

> Read the full article on the McKinsey website

By Jacques Bughin, Tanguy Catlin, and Laura LaBerge

Source: McKinsey

comments closed

Related News

November 27, 2022

A green hydrogen bet, GM expects EV profits by 2025 and the world’s population hits 8 billion

Borderless Future

The United Nations estimated that the world’s population hit 8 billion people. That’s just 11 years after the global population hit 7 billion. The U.N. estimates that the rate of growth has started to slow down, and is only expected to hit about 10.4 billion people by the end of the century.

November 19, 2022

COP27: It will take visionary pragmatism to accelerate decarbonization in the downturn

Borderless Future

At a time when they are plotting their downturn strategy, many corporations that set ambitious decarbonization targets are wrestling with what they can now afford to do to accelerate decarbonization and monetize it with customers. Getting ahead of peers will be those that embrace visionary pragmatism and follow through during the downturn.

November 13, 2022

Solar panels must cover large parking lots, rules French Senate

Borderless Future

French senators have ruled that parking lots with 80 or more cars must have at least half of the spaces covered with solar panels. The decision—passed on November 4—still has to gain assent in the Assemblée Nationale upper house.