Sector News

The drumbeat of digital: How winning teams play

July 3, 2019
Sustainability

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

January 29, 2023

How playgrounds are becoming a secret weapon in the fight against climate change

Sustainability

Schoolyards can do more than absorb rainwater and cool neighborhoods. They can also help close the park equity gap nationwide: One hundred million Americans, including 28 million kids, do not live within a 10-minute walk from a park or green space. Communities of color and low-income neighborhoods have even less access to green spaces.

January 22, 2023

BCG-WEF Project: The Net-Zero Challenge

Sustainability

The race to net-zero emissions will forever change the way many companies do business. The immediacy, pace, and extent of change are still widely underestimated. Early movers can seize significant advantage. In this report, coauthored with the WEF Alliance of CEO Climate Leaders, authors explore how other companies can take a similar path by identifying, creating, and scaling green businesses. 

January 14, 2023

Sustainability and ESG in 2023

Sustainability

The current debate over ESG and sustainable investing is noisy and sometimes rancorous, and the temptation is strong to just tune it out until it’s better resolved. But, in the end, leaders must resist this urge and accept that it’s a relevant discussion.

How can we help you?

We're easy to reach