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

Related News

June 2, 2020

5 Ways to Beat Zoom Fatigue

Borderless Future

Have you ever felt that satisfying relief when you finish the last Zoom call of the day, then suddenly wonder: why am I so exhausted? What you’re experiencing is not anything out of the […]

May 28, 2020

Amazon Said To Be In Talks To Buy Self-Driving Startup Zoox

Borderless Future

Amazon may be preparing to make a big move into the self-driving vehicle world as the logistics giant is said to be in “advanced” talks to acquire Zoox, a stealthy […]

May 19, 2020

Looking Ahead: How Silicon Valley Will Be Reshaped In Wake Of The Pandemic

Borderless Future

“In a time of drastic change, it is the learners who inherit the future.” These words by American philosopher Eric Hoffer ring exceptionally true today, particularly as innovators and leaders […]