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Looking Ahead After a Quarter Century Into the Digital Age - CIO Journal
Aug 16, 2019 | WSJ | By Irving Wladawsky-Berger.

* Large economic potential is linked to digitization—and much of it is yet to be captured
* Digital superstars are rising far beyond the U.S. big four and China’s big three
* Digital natives are calling the shots
* Digital changes everything—even industry boundaries
* Agile is the new way to compete
* Playing the platform economy can boost earnings
* Self-cannibalization and innovation are a necessity for digital reinvention
* Going after the right M&A is key
* Effective management of digital transformation is vital—but challenging
* Leveraging and transitioning from digital to new frontier technologies is an imperative


Effective management of digital transformation is vital—but challenging. High incidences of failure can be found across industries and countries regardless of the objectives of the digital transformation, including customer experience, the most common type of transformation.

The report recommends five key actions to improve the odds of a successful digital transformation: shared responsibility and accountability; clarity of objectives and commitment; sufficient resources; investments in digital talent; and flexibility and agility.
artificial_intelligence  digital_economy  industry_boundaries  insights  Irving_Wladawsky-Berger  McKinsey  M&A  millennials  platforms  self-cannibalization 
7 weeks ago by jerryking
An equation to ensure America survives the age of AI
April 10, 2019 | Financial Times | Elizabeth Cobbs.

Alexander Hamilton, Horace Mann and Frances Perkins are linked by their emphasis on the importance of human learning.

In more and more industries, the low-skilled suffer declining pay and hours. McKinsey estimates that 60 per cent of occupations are at risk of partial or total automation. Workers spy disaster. Whether the middle class shrinks in the age of artificial intelligence depends less on machine learning than on human learning. Historical precedents help, especially...... the Hamilton-Mann-Perkins equation: innovation plus education, plus a social safety net, equals the sum of prosperity.

(1) Alexander Hamilton.
US founding father Alexander Hamilton was first to understand the relationship between: (a) the US's founding coincided with the industrial revolution and the need to grapple with technological disruption (In 1776, James Watts sold his first steam engine when the ink was still wet on the Declaration of Independence)-- Steam remade the world economically; and (b), America’s decolonisation remade the world politically......Hamilton believed that Fledgling countries needed robust economies. New technologies gave them an edge. Hamilton noted that England owed its progress to the mechanization of textile production.......Thomas Jefferson,on the other hand, argued that the US should remain pastoral: a free, virtuous nation exchanged raw materials for foreign goods. Farmers were “the chosen people”; factories promoted dependence and vice.....Hamilton disagreed. He thought colonies shouldn’t overpay foreigners for things they could produce themselves. Government should incentivise innovation, said his 1791 Report on the Subject of Manufactures. Otherwise citizens would resist change even when jobs ceased to provide sufficient income, deterred from making a “spontaneous transition to new pursuits”.......the U.S. Constitution empowered Congress to grant patents to anyone with a qualified application. America became a nation of tinkerers...Cyrus McCormick, son of a farmer, patented a mechanical reaper in 1834 that reduced the hands needed in farming. The US soared to become the world’s largest economy by 1890. Hamilton’s constant: nurture innovation.

(2) Horace Mann
America’s success gave rise to the idea that a free country needed free schools. The reformer Horace Mann, who never had more than six weeks of schooling in a year, started the Common School Movement, calling public schools “the greatest discovery made by man”.....Grammar schools spread across the US between the 1830s and 1880s. Reading, writing and arithmetic were the tools for success in industrialising economies. Towns offered children a no-cost education.......Americans achieved the world’s highest per capita income just as they became the world’s best-educated people. Mann’s constant: prioritise education.

(3) Frances Perkins
Jefferson was correct that industrial economies made people more interdependent. By 1920, more Americans lived in towns earning wages than on farms growing their own food. When the Great Depression drove unemployment to 25 per cent, the state took a third role....FDR recruited Frances Perkins, the longest serving labour secretary in US history, to rescue workers. Perkins led campaigns that established a minimum wage and maximum workweek. Most importantly, she chaired the committee that wrote the 1935 Social Security Act, creating a federal pension system and state unemployment insurance. Her achievements did not end the depression, but helped democracy weather it. Perkins’s constant: knit a safety net.

The world has ridden three swells of industrialisation occasioned by the harnessing of steam, electricity and computers. The next wave, brought to us by AI, towers over us. History shows that innovation, education and safety nets point the ship of state into the wave.

Progress is a variable. Hamilton, Mann and Perkins would each urge us to mind the constants in the historical equation.
adaptability  Alexander_Hamilton  artificial_intelligence  automation  diadaptability  constitutions  disruption  downward_mobility  education  FDR  Founding_Fathers  Frances_Perkins  gig_economy  historical_precedents  hollowing_out  Horace_Mann  Industrial_Revolution  innovation  innovation_policies  James_Watts  job_destruction  job_displacement  job_loss  life_long_learning  low-skilled  McKinsey  middle_class  priorities  productivity  public_education  public_schools  safety_nets  slavery  steam_engine  the_Great_Depression  Thomas_Jefferson  tinkerers 
april 2019 by jerryking
Supercharging retail sales through geospatial analytics
March 2019 | | McKinsey | By Rob Hearne, Alana Podreciks, Nathan Uhlenbrock, and Kelly Ungerman.

A retailer can now use geospatial analytics to understand the interactions between its online and offline channels. With these insights, it can create a higher-performing retail network.
====================================
Is our outlet store in San Francisco hurting foot traffic and sales at our full-price store two miles away? Or is it doing the opposite—attracting new customers and making them more likely to visit both stores? How are our five Manhattan stores affecting our e-commerce revenue? Are they making consumers more likely to shop on our website or to search for our products on Amazon? If we open a new mall store in the Dallas metro area, what impact will it have on sales at our existing stores, at our department-store partners, and online?

The answers to these kinds of questions are increasingly crucial to a retailer’s success, as more and more consumers become omnichannel shoppers......most retailers don’t give adequate thought to the cross-channel impact of their stores. They rely on gut feel or on high-level analysis of aggregated sales data to gauge how their offline and online channels interact.....there’s a way for retailers (and other omnichannel businesses) to quantify cross-channel effects, thus taking the guesswork out of network optimization. Through advanced geospatial analytics and machine learning, a retailer can now generate a detailed quantitative picture of how each of its customer touchpoints—including owned stores and websites, wholesale doors, and partner e-commerce sites—affects sales at all its other touchpoints within a micromarket......US retail sales are on an upward trajectory.....despite the growth of e-commerce, the vast majority of these purchases still happened in brick-and-mortar stores. .....So why have US retailers closed thousands of stores in the past year, with thousands more closures to come?....Because the consumer journey is changing!!......Consumers are transacting in different channels....engaging across multiple channels, often simultaneously rather than sequentially. It’s critical for omnichannel retailers to have a detailed understanding of the interplay between online and offline touchpoints, and between owned and partner networks.

Quantifying cross-channel effects

the starting point is data......from a wide range of internal and external sources. Inputs into a geospatial model would ideally include not just transaction and customer data but also store-specific details such as store size and product mix; site-specific information such as foot traffic and retail intensity; environmental data, including local-area demographics; and anonymized mobile-phone location data.......A simulation model can then quantify the sales effect of each of the retailer’s customer touchpoints on its other channels within a local market. The model must be sophisticated enough to simulate the upward or downward revenue impact of adding or removing a particular touchpoint.

Geospatial analysis reveals that the consistency and magnitude of cross-channel effects vary significantly across channel types and markets.
analytics  bricks-and-mortar  cross-channel  customer_journey  customer_touchpoints  data  e-commerce  foot_traffic  geospatial  gut_feelings  location_based_services  McKinsey  moments_of_truth  omnichannel  privacy  retailers  store_closings  security_consciousness  site_selection 
march 2019 by jerryking
A new boss for McKinsey - Firm direction
Mar 1st 2018

On February 25th the result of a long election process was made public. Kevin Sneader, the Scottish chairman of McKinsey’s Asia unit, will replace Dominic Barton as managing partner—the top job. He inherits a thriving business. The firm remains by far the biggest of the premium consultancies (see table). Over the past decade, annual revenues have doubled to $10bn; so too has the size of the partnership, to more than 2,000......Mr Barton claims that half of what it does today falls within capabilities that did not exist five years ago. It is working to ensure that customers turn to McKinseyites for help with all things digital. It has had to make acquisitions in some areas: recent purchases include QuantumBlack, an advanced-analytics firm in London, and LUNAR, a Silicon-Valley design company. It is increasingly recruiting outside the usual business schools to bring in seasoned data scientists and software developers.....McKinsey has kept plenty of older ones as clients, such as Hewlett Packard, but it has a lot more to do to crack new tech giants and unicorns (private startups worth more than $1bn). ....McKinsey’s response is to try to gain a foothold earlier on in tech firms’ life-cycles. It is targeting medium-sized companies, which would not have been able to afford its fees, by offering shorter projects with smaller “startup-sized” teams
appointments  CEOs  data_scientists  management_consulting  McKinsey  mergers_&_acquisitions  SMEs  software_developers 
march 2018 by jerryking
Facebook and the future of travel | McKinsey & Company
December 2015
Facebook and the future of travel
By Alex Dichter and Nathan Seitzman
Facebook  future  travel  McKinsey  mobile_applications  frictions 
december 2016 by jerryking
Inside the mind of a venture capitalist | McKinsey & Company
August 2016 | McK | Steve Jurvetson is a partner at Draper Fisher Jurvetson. Michael Chui,
(1) entrepreneurs who have infectious enthusiasm.
(2) sector of the economy believed to be experiencing rapid growth/ massive disruptive change.
(3) wide range of industries, from synthetic biology to rockets to electric cars to a variety of sectors that weren’t ripe for venture investment in prior decades but now are becoming software businesses.
(4) attributes and people somewhat similar to what I look for in the team at work: enough self-confidence to be humble about what it’s proposing and respect for the team over individuals
How should large companies respond? The large companies that are most exciting to me are the ones that innovate outside their core. big companies need to innovate outside their core businesses. The biggest start-up: Space.
Steve_Jurvetson  McKinsey  DFJ  venture_capital  teams  vc  disruption  space  large_companies  software  core_businesses  Moore's_Law  machine_learning  passions  Elon_Musk  accelerated_lifecycles  space_travel  innovation  self-confidence  humility 
august 2016 by jerryking
Five ‘no regrets’ moves for superior customer engagement | McKinsey & Company
July 2012
Five ‘no regrets’ moves for superior customer engagement
By Tom French, Laura LaBerge, and Paul Magill
engagement  customer_engagement  LBMA  McKinsey  no_regrets 
may 2016 by jerryking
Measuring marketing’s worth | McKinsey & Company
Article - McKinsey Quarterly - May 2012
Measuring marketing’s worth
By David Court, Jonathan Gordon, and Jesko Perrey
marketing  measurements  ROI  McKinsey 
may 2016 by jerryking
How should you tap into Silicon Valley? | McKinsey & Company
September 2015
How should you tap into Silicon Valley?
By Alex Kazaks, Eric Kutcher, and Michael Uhl
McKinsey  Silicon_Valley  Communicating_&_Connecting  OPMA  howto  partnerships  innovation  boot_camps  corporate_investors 
february 2016 by jerryking
Check out these mobile shopping myths - The Globe and Mail
HARVEY SCHACHTER
Special to The Globe and Mail
Published Sunday, Feb. 08 2015
m-commerce  mobile  retailers  myths  McKinsey 
february 2015 by jerryking
A Hard Turnaround for Software: Software Companies Caught in a Downward Spiral Find It Exceptionally Difficult to Escape. Yet a Determined Few Succeed
Summer 2002 |The McKinsey Quarterly By Blumling, Mark; Frick, Kevin A.; Meehan, William F.,, III

While executing a turnaround in any industry can be a difficult task, digging a software business ou...
category_killers  cost-cutting  downward_spirals  howto  increasing_returns_to_scale  McKinsey  software  switching_costs  turnarounds  winner-take-all 
january 2015 by jerryking
Roger Ferguson of TIAA-CREF: Always Act as if You’re an Owner - NYTimes.com
NOV. 29, 2014 | NYT | Adam Bryant.
Is there a value on your list that is particularly important to you?

One is about personal accountability. One of the phrases I use is that if you owned this company, what would you do? And if your colleagues were owners, what would you want them to do?

What are your best interview questions?

What do you do with your free time? I’m listening for somebody who is a little more balanced. I’m always asking about team experiences, and about resilience and fortitude. How did you recover from setbacks? What did you do? I like to hear stories, and concrete examples.

What career and life advice do you give to graduating college students?

You have to be prepared to take some risks and maybe fail a little bit. Don’t make the same mistake over and over again, but don’t be afraid of making any mistakes. Because your career is like a climbing wall, not a ladder, and you don’t know where it’s going to end up. You have to be a continuous learner as you go up the wall.
money_management  pension_funds  setbacks  CEOs  African-Americans  McKinsey  Managing_Your_Career  advice  new_graduates  values  accountability  interviews  TIAA-CREF  Harvard  owners 
december 2014 by jerryking
Don’t overlook the other Nigeria - The Globe and Mail
PAUL COLLIER AND ACHA LEKE
Contributed to The Globe and Mail
Nigeria  McKinsey  overlooked 
july 2014 by jerryking
Big data: What’s your plan?
March 2013 | | McKinsey & Company | byStefan Biesdorf, David Court, and Paul Willmott
analytics  data  McKinsey  massive_data_sets  howto 
june 2014 by jerryking
The Value of Project Management
Define the ROI. “Every project plan should begin with an explanation of the business value that project brings
to your organization,” says Mr. Kasabian. That measure can be
used to decide first whether the project should move forward and
later as a metric to determine whether the project brought strategic value to the business.

Manage what’s measured. The way to get the most value out of a project management methodology is through metrics, says Mr. Brodnik. “Focus on measures and processes tied to
business goals, collect the data and make it available to everyone,” he says. “When people know what’s being watched, they put more time and focus on it.”
project_management  McKinsey  WaudWare  measurements 
april 2014 by jerryking
Disruptive entrepreneurs: An interview with Eric Ries
April 2014 | McKinsey & Company |

All of our process diagrams [in major corporations] are linear, boxed diagrams that go one way. But entrepreneurship is fundamentally iterative. So our diagrams need to be in circles. We have to be willing to be wrong and to fail. But modern management says, “Failure means you get dinged.”

For example, one of things I’ve tried to do is to tell companies, “Put on your employees’ performance evaluation a concept we call productive failure: ‘How many productive failures did you have this year?’ If someone comes to you and claims that they didn’t fail this year, you know one of two things: they’re either lying to your face or they were incredibly, unbelievably conservative.”

In both cases, it’s actually not a positive attribute. You want to say, “Show me a time when you failed but learned something really valuable, or were able to pivot from something that didn’t work to something that did.” I have a lot of examples now where it’s possible to say: “You saved the company an incredible amount of money, because instead of spending $10 million on something, we spent $100,000 and did an experiment that proves conclusively there ain’t no business here.”
Eric_Ries  lean  open_data  innovation  experimentation  entrepreneurship  McKinsey  disruption  failure  linearity  iterations  performance_reviews 
april 2014 by jerryking
Davos diary: A new angst settles over the world's elites - The Globe and Mail
John Stackhouse - Editor-in-Chief

Davos, Switzerland — The Globe and Mail

Published Friday, Jan. 24 2014,

Another machine revolution is upon us. There is a new wave forming behind the past decade’s surge of mobile technology, with disruptive technologies like driverless cars and automated personal medical assistants that will not only change lifestyles but rattle economies and change pretty much every assumption about work....For all the talk of growth, though, the global economy is also in an employment morass that has the smartest people in the room humbled and anxious. The rebound is not producing jobs and pay increases to the degree that many of them expected. Most governments are tapped out, fiscally, and can only call on the private sector – “the innovators” – to do more....If a 3-D printer can kneecap your construction industry, or an AI-powered sensor put to pasture half your nurses, what hope is there for old-fashioned job creation?

The new digital divide – it used to be about access, now it’s about employment – stands to further isolate the millions of long-term jobless people in Europe and North America, many of whom have left the workforce and won’t be getting calls when jobs come back.... Say’s Law--a theory that says successful products create their own demand.
Davos  John_Stackhouse  Say’s_Law  Eric_Schmidt  digital_disruption  joblessness  fault_lines  Google  McKinsey  creative_destruction  Joseph_Schumpeter  unemployment  machine_learning  disruption  autonomous_vehicles  bots  chatbots  artificial_intelligence  personal_assistants  virtual_assistants  job_creation  global_economy 
january 2014 by jerryking
Opening up open data: An interview with Tim O’Reilly | McKinsey & Company
Opening up open data: An interview with Tim O’Reilly
The tech entrepreneur, author, and investor looks at how open data is becoming a critical tool for business and government, as well as what needs to be done for it to be more effective.
January 2014
open_data  Tim_O’Reilly  McKinsey 
january 2014 by jerryking
What executives should know about open data
anuary 2014 | McKinsey & Company | by Michael Chui, James Manyika, and Steve Van Kuiken.
open_data  McKinsey  executive_management  data  MyData 
january 2014 by jerryking
The future of the Firm
September 21st 2013 | The Economist | Schumpeter.

Life is getting tougher for professional-services firms. Midsized consultancies are already suffering: Monitor Group went bankrupt last year—Deloitte later bought it for $120m—and Booz & Co and Roland Berger are agonising about their futures. If the legal profession is anything to go by, worse is to come: Dewey & LeBoeuf collapsed last year after borrowing heavily in a dash for growth, and other elite law firms are struggling to win business....Are McKinsey’s best days behind it? Two new publications offer some interesting answers. “The Firm”, by Duff McDonald, is a generally admiring book that nevertheless asks hard questions about the organisation’s future. “Consulting on the Cusp of Disruption”, by Clayton Christensen and two colleagues, is a penetrating article in the October Harvard Business Review, arguing that the comfortable world of the strategy consultancies is about to be turned upside down....Eden McCallum cuts costs by deploying freelancers, most of whom once worked for the big three. BeyondCore replaces overpriced junior analysts with Big Data, crunching vast amounts of information to identify trends.
McKinsey  capitalism  professional_service_firms  barbell_effect  HBR  Clayton_Christensen  books  BCG  Bain  alumni  management_consulting  mid-sized  law_firms  hard_questions 
november 2013 by jerryking
Cents and sensibility: 4 new business books you should be reading
Oct. 11 2013 | The Globe and Mail| REVIEWED BY GORDON PITTS.
(1) The Firm: The story of McKinsey and Its Secret Influence on American Business
By Duff McDonald Simon and Schuster, 400 pages, $34.99
(2) Looptail: How One Company Changed the World by Reinventing Business
By Bruce Poon Tip, Harper Collins, 288 pages, $29.99
(3) Hedge Hogs: The Cowboy Traders Behind Wall Street’s Largest Hedge Fund Disaster.
By Barbara T. Dreyfuss, Random House, 320 pages, $31
(4) The Great Degeneration: How Institutions Decay and Economies Die
By Niall Ferguson, The Penguin Press, 192 pages, $28.50
book_reviews  Gordon_Pitts  McKinsey  Niall_Ferguson  travel  entrepreneur 
october 2013 by jerryking
The strategy consultants in search of a strategy - FT.com
August 28, 2013 | FT | By John Gapper.
The strategy consultants in search of a strategy

Two decades ago, 70 per cent of McKinsey’s revenues were from strategy and corporate finance but most now flow from hands-on work on risk, operations and marketing.
management_consulting  strategy  professional_service_firms  McKinsey  BCG  Bain  Monitor  Deloitte  winner-take-all 
september 2013 by jerryking
Sizing Up Big Data, Broadening Beyond the Internet - NYTimes.com
June 19, 2013 | NYT | By STEVE LOHR.

The story is the same in one field after another, in science, politics, crime prevention, public health, sports and industries as varied as energy and advertising. All are being transformed by data-driven discovery and decision-making. The pioneering consumer Internet companies, like Google, Facebook and Amazon, were just the start, experts say. Today, data tools and techniques are used for tasks as varied as predicting neighborhood blocks where crimes are most likely to occur and injecting intelligence into hulking industrial machines, like electrical power generators.

Big Data is the shorthand label for the phenomenon, which embraces technology, decision-making and public policy. Supplying the technology is a fast-growing market, increasing at more than 30 percent a year and likely to reach $24 billion by 2016, according to a forecast by IDC, a research firm. All the major technology companies, and a host of start-ups, are aggressively pursuing the business.

Demand is brisk for people with data skills. The McKinsey Global Institute, the research arm of the consulting firm, projects that the United States needs 140,000 to 190,000 more workers with “deep analytical” expertise and 1.5 million more data-literate managers, whether retrained or hired, by 2020.
massive_data_sets  Steve_Lohr  data_scientists  data_driven  open_data  neighbourhoods  decision_making  public  McKinsey 
june 2013 by jerryking
Past lessons for China’s new joint ventures
December 2010 | McKinsey & Company| by Stephan Bosshart, Thomas Luedi, and Emma Wang.
China  joint_ventures  collaboration  partnerships  McKinsey  lessons_learned 
june 2013 by jerryking
Why the U.S. is the player with all the right cards | Business without Borders
June 6th, 2013 | Business Without Borders | by Susan Bourette.

(1) Similarly, harnessing the promise of “big data” could yield productivity gains across many sectors. The United States is uniquely positioned to capture the opportunity given that it has led technological development and owns a disproportionate share of the world’s data assets, the report states.

To put this into perspective, McKinsey has analyzed big data’s potential in four large and markedly different sectors: retail, manufacturing, health care and government services. “In these sample sectors alone, we estimate that the widespread use of big data analytics could produce up to $635 billion in productivity gains and cost savings, resulting in an incremental increase of at least $265 billion in annual GDP by 2020,” the report says.

(2)Canada has a unique opportunity to capitalize on its reputation as a global food superpower, Mr. Barton says, giving a much-needed boost to the industry, which has seen its ranking fall to the seventh-largest global producer from third in recent years.
McKinsey  opportunities  U.S.  Dominic_Barton  cost_savings  productivity  Rhodes  agribusiness  massive_data_sets  food 
june 2013 by jerryking
How Canadian companies can tap into Asia’s consumer boom
Jun. 03 2013 | G&M | by DOMINIC BARTON.

Possible send to Earl Davis of Teachers.

To capture this opportunity, Canadian companies need an intimate understanding of the new Asian consumers. First, on the consumption and services front, they need to locate these consumers, with forensic precision....Second, Canadian companies need to understand the diverse and evolving tastes of Asian consumers. Across the region, the number of higher income households is rapidly expanding. These consumers are often young, are more international in their outlook, and are more willing to pay a premium for quality products. They consume more services, from education and health care to foreign travel....Third, Another significant opportunity for Canada is the provision and delivery of food, energy, and natural resources. By 2030, global demand for food is expected to rise by more than 25 per cent, mostly in Asia, and fertilizer demand will grow by 50 per cent.
Dominic_Barton  McKinsey  China  Canadian  target_marketing  consumer_behavior  shifting_tastes  China_rising  booming  Asia  Asian  Asia_Pacific  BRIC  middle_class  inland  affluence  infrastructure  forensics 
june 2013 by jerryking
Companies need to cut through big data hype
May 9, 2013 | The Financial Times |Michael Skapinker
Along with more than 1,000 other north Londoners, I recently lost my landline. Others were worse off: they lost their internet connections too.
...
massive_data_sets  tacit_data  analytics  McKinsey 
may 2013 by jerryking
Professional firms: Simply the best
Apr 13th 2013 | The Economist |

What It Takes: Seven Secrets of Success from the World’s Greatest Professional Firms. By Charles Ellis. Wiley; 290 pages; $40 and £26.99.

During a long career advising senior professionals, Mr Ellis found that a handful of firms were almost universally regarded by their peers as the best in their particular business. As well as McKinsey (management consulting) and Goldman (investment banking), they included Capital Group (investment management), the Mayo Clinic (health care) and Cravath, Swaine & Moore (law). He was surprised to discover that each of the firms had several things in common. These include leaders who devote their lives to serving their firm rather than enriching themselves (though that tended to follow naturally), a good sense of what motivates staff to get up early and work late and the ability to get individualistic professionals to function unusually well in teams.

Above all, these firms are fanatical about recruiting new employees who are not just the most talented but also the best suited to a particular corporate culture. These firms’ bosses spend a disproportionate amount of time on the recruitment process, often putting it before other more immediately lucrative demands on their time. McKinsey interviews 200,000 people each year, but selects just over 1%.

Each McKinsey applicant can be interviewed eight times before being offered a job; at Goldman, twice that is not unheard of. At Capital a serious candidate is likely to be seen by 20 people, some more than once. Recruitment, these firms believe, is the start of a lifelong relationship. At the same time, Goldman and McKinsey also have a policy of helping their staff to find suitable work elsewhere, all in the expectation that they will eventually become loyal customers.
professional_service_firms  book_reviews  lifelong  relationships  recruiting  talent_management  outplacement  McKinsey  Goldman_Sachs  overachievers  disproportionality  organizational_culture  serving_others  high-achieving 
april 2013 by jerryking
Big Data should inspire humility, not hype
Mar. 04 2013| The Globe and Mail |Konrad Yakabuski.

" mathematical models have their limits.

The Great Recession should have made that clear. The forecasters and risk managers who relied on supposedly foolproof algorithms all failed to see the crash coming. The historical economic data they fed into their computers did not go back far enough. Their models were not built to account for rare events. Yet, policy makers bought their rosy forecasts hook, line and sinker.

You might think that Nate Silver, the whiz-kid statistician who correctly predicted the winner of the 2012 U.S. presidential election in all 50 states, would be Big Data’s biggest apologist. Instead, he warns against putting our faith in the predictive power of machines.

“Our predictions may be more prone to failure in the era of Big Data,” The New York Times blogger writes in his recent book, The Signal and the Noise. “As there is an exponential increase in the amount of available information, there is likewise an exponential increase in the number of hypotheses to investigate … [But] most of the data is just noise, as most of the universe is filled with empty space.”

Perhaps the biggest risk we run in the era of Big Data is confusing correlation with causation – or rather, being duped by so-called “data scientists” who tell us one thing leads to another. The old admonition about “lies, damn lies and statistics” is more appropriate than ever."
massive_data_sets  data_driven  McKinsey  skepticism  contrarians  data_scientists  Konrad_Yakabuski  modelling  Nate_Silver  humility  risks  books  correlations  causality  algorithms  infoliteracy  noise  signals  hype 
march 2013 by jerryking
Push to exploit an ocean of information
Richard Waters Source: The Financial Times. (Dec. 10, 2012): News: p19

Like anticipating film demand and judging the effectiveness of window displays, much of the effort in the field of big data analytics is aimed at making existing companies more effective. Designing products, setting optimal prices and reaching the best prospects among potential customers are turning into data-driven exercises.

But it is also throwing up disruptive new businesses. Companies set up from scratch have the chance to draw on public streams of digital data to enter markets that were once closed to incumbents with long-established customer relationships and proprietary information. And such businesses come without the legacy technology platforms, entrenched business processes and cultural norms that make it hard for big groups to change.

"Even if you're not a bank or a healthcare company, you can play in banking or healthcare," says James Manyika, director at McKinsey's research arm.
massive_data_sets  Quantifind  Hollywood  Climate_Corporation  sensors  Euclid_Analytics  Kabbage  Factual  disruption  start_ups  McKinsey  data_driven  new_businesses  large_companies  open_data  legacy_players  digital_disruption  customer_relationships  legacy_tech  cultural_norms  Richard_Waters 
february 2013 by jerryking
Good News and Bad News: THE STRATEGY CONSULTING VALUE CHAIN IS BREAKING UP
March 2005 | Consulting to Management |by SASCHA L. SCHMIDT, PATRICK VOGT, ANSGAR RICHTER.

I retrieved this article in connection with a-connect interview
strategy  management_consulting  value_chains  frameworks  disaggregation  McKinsey  bad_news 
january 2013 by jerryking
Manufacturing: The new maker rules
Nov 24th 2012 | The Economist

Yet 3D printing is just one of many production technologies and trends which are transforming the way companies will be able to make things in the future. The old rules of manufacturing, such as “you must seek economies of scale” and “you must reduce unit-labour costs”, are being cast aside. New machines can print every item differently. More flexible robots are getting cheaper and better at doing all the boring and dirty stuff.
3-D  manufacturers  McKinsey  GE  services  economies_of_scale 
november 2012 by jerryking
Rajat Gupta, Ex-Goldman Director, to Serve 2 Years in Trading Case - NYTimes.com
October 24, 2012, 4:17 pm96 Comments
Ex-Goldman Director to Serve 2 Years in Prison on Insider Trading Case
By PETER LATTMAN
Rajat_Gupta  McKinsey  incarceration  sentencing  sentencing_guidelines  insider_trading 
october 2012 by jerryking
Winning in Wireless
MAY 1998 | McKinsey Quarterly | SCOTT ARNOLD, BYRON G. AUGUSTE, MARK KNICKREHM, AND PAUL J. ROCHE.

Can the industry learn to operate at one-third its current price levels? Companies will need to build businesses around key segments. The challenge: reducing churn among the customers who provide most of your profits.
mobile_phones  wireless  McKinsey  strategy  market_segmentation  customer_churn 
august 2012 by jerryking
Why Big Data is the new competitive advantage
July / August 2012 | Ivey Business Journal | by Tim McGuire, James Manyika, and Michael Chui
competitive_advantage  McKinsey  massive_data_sets  exhaust_data 
july 2012 by jerryking
Talent Shortage Looms Over Big Data - WSJ.com
April 29, 2012 | WSJ | By BEN ROONEY

Big Data's Big Problem: Little Talent

"A significant constraint on realizing value from Big Data will be a shortage of talent, particularly of people with deep expertise in statistics and machine learning, and the managers and analysts who know how to operate companies by using insights from Big Data," the report said. "We project a need for 1.5 million additional managers and analysts in the United States who can ask the right questions and consume the results of the analysis of Big Data effectively." What the industry needs is a new type of person: the data scientist.....Hilary Mason, chief scientist for the URL shortening service bit.ly, says a data scientist must have three key skills. "They can take a data set and model it mathematically and understand the math required to build those models; they can actually do that, which means they have the engineering skills…and finally they are someone who can find insights and tell stories from their data. That means asking the right questions, and that is usually the hardest piece."

It is this ability to turn data into information into action that presents the most challenges. It requires a deep understanding of the business to know the questions to ask. The problem that a lot of companies face is that they don't know what they don't know, as former U.S. Defense Secretary Donald Rumsfeld would say. The job of the data scientist isn't simply to uncover lost nuggets, but discover new ones and more importantly, turn them into actions. Providing ever-larger screeds of information doesn't help anyone.

One of the earliest tests for biggish data was applying it to the battlefield. The Pentagon ran a number of field exercises of its Force XXI—a device that allows commanders to track forces on the battlefield—around the turn of the century. The hope was that giving generals "exquisite situational awareness" (i.e. knowing everything about everyone on the battlefield) would turn the art of warfare into a science. What they found was that just giving bad generals more information didn't make them good generals; they were still bad generals, just better informed.

"People have been doing data mining for years, but that was on the premise that the data was quite well behaved and lived in big relational databases," said Mr. Shadbolt. "How do you deal with data sets that might be very ragged, unreliable, with missing data?"

In the meantime, companies will have to be largely self-taught, said Nick Halstead, CEO of DataSift, one of the U.K. start-ups actually doing Big Data. When recruiting, he said that the ability to ask questions about the data is the key, not mathematical prowess. "You have to be confident at the math, but one of our top people used to be an architect".
data_scientists  massive_data_sets  talent_management  talent  Pentagon  SecDef  limitations  shortages  McKinsey  war_for_talent  recruiting  Colleges_&_Universities  situational_awareness  questions  Donald_Rumsfeld  asking_the_right_questions 
june 2012 by jerryking
McKinsey's data whiz mines the social media motherlode
May. 25, 2012 | ROB Magazine - The Globe and Mail | Simon Houpt.

What is "Big Data"?...Let me give it a try. It’s the use of massive sets of data—typically transaction data, motivation data, environmental data, social data—to make better business decisions.
McKinsey  massive_data_sets  Simon_Houpt  Amazon  privacy  social_data  social_media 
may 2012 by jerryking
Three tips to improve your listening skills - The Globe and Mail
1. Show respect: To run a complex organization, you must solicit advice from all corners. Let everyone know that you are open to their viewpoints. Being respectful doesn’t mean avoiding tough questions; good listeners routinely ask them to uncover the information they need. “The goal is ensuring the free and open flow of information and ideas,” he writes.

2. Keep quiet: Your conversation partner should be speaking 80 per cent of the time while you limit yourself to about 20 per cent. To make your speaking time count, ask questions that point the other party in the right direction. “That’s easier said than done, of course – most executives are naturally inclined to speak their minds. Still, you can’t really listen if you’re too busy talking.”

3. Challenge assumptions: Good listeners seek to understand and challenge the assumptions beneath the surface of the conversation. Take a tip from baseball manager Earl Weaver, who titled his autobiography It’s What You Learn After You Know It All That Counts.
listening  McKinsey  books  Communicating_&_Connecting  conversations  tips  questions  assumptions  respect  hard_questions 
may 2012 by jerryking
The High Cost of the Gender Gap - WSJ.com
NOVEMBER 21, 2011 | WSJ | By REBECCA BLUMENSTEIN.

The High Cost of the Gender Gap
Dominic Barton, Geena Davis and Debra Lee on why CEOs need to focus more on women.
By REBECCA BLUMENSTEIN
Viacom  BET  McKinsey  actors  gender_gap  Dominic_Barton  CEOs  women  executive_management  high-cost 
december 2011 by jerryking
Inside McKinsey - FT.com
November 25, 2011 9:32 pm
Inside McKinsey

By Andrew Hill
McKinsey  management_consulting  humility  values 
november 2011 by jerryking
Growth through acquisitions: A fresh look
MAY 1996 | McKinsey Quarterly | PATRICIA L. ANSLINGER AND THOMAS E. COPELAND

LBOs outbid corporate buyers and then produce extraordinary returns. How do they do it? A study of over 800 acquisitions shatters some myths about the value of timing and leverage. Don’t do the deal if you can’t find the leader.

Making acquisitions work

But making this type of acquisition work is not easy. Our research found that successful corporate and financial buyers adopt seven key operating principles. These principles affect almost every stage of the acquisition process, from the identification of candidates to postmerger management. They are:

* Insist on innovative operating strategies.(The lesson: Don't look for growth only in high-growth industries.)
* Don't do the deal if you can't find the leader.
* Offer big incentives to top-level executives.
* Link compensation to changes in cash-flow.
* Push the pace of change.
* Foster dynamic relationships among owners, managers, and the board.
Hire the best acquirers.

MAY 1996 • PATRICIA L. ANSLINGER AND THOMAS E. COPELAND
financial_buyers  incentives  LBOs  McKinsey  mergers_&_acquisitions  M&A  private_equity  value_creation 
november 2011 by jerryking
"Structural Breaks" and Other Timely Phenomena -
December 12, 2008 |Adam Smith, Esq.|Bruce MacEwen.

Finally, some words about strategy in the midst of a structural dislocation. Times like these—especially times like these—call for coherent responses on behalf of your firm to the challenges out there in the marketplace. This, rather than any tepid or hypocritical "mission statement" or allegedly scientific market segmentation analysis that will be overtaken by events before it can be bound and distributed,, is the type of strategy that actually has traction today.

And the essence of such a strategy is a thoughtful and reflective view on the marketplace forces at work, and how they'll affect your firm, your talent pipeline, your geographic centers of gravity, and your client base. To produce a coherent, nuanced, and dynamic view of what's happening, there's no substitute for the hard work of thinking about this multi-dimensional chessboard, with almost daily midcourse corrections based on new data points and new conversations, essentially incoming at you all the time.
Bruce_MacEwen  McKinsey  financial_history  simplicity  ratios  strategic_thinking  talent_pipelines  structural_change  howto  customers  Five_Forces_model  competitive_landscape  situational_awareness  course_correction  disequilibriums  accelerated_lifecycles  dislocations  hard_work  dynamic 
november 2011 by jerryking
U.S. Targets Insider Culture in Gupta Case - WSJ.com
OCTOBER 27, 2011 | WSJ | By MICHAEL ROTHFELD, SUSAN PULLIAM and S. MITRA KALITA. Gupta Case Targets Insider Culture
Gupta Indictment Shows New Twist in Crackdown; Case Is Gamble for Prosecutors
McKinsey  insider_trading  SEC  Wall_Street  prosecutors  Rajat_Gupta  P&G  Goldman_Sachs  Preet_Bharara  Department_of_Justice 
october 2011 by jerryking
Physicist Makes 'Big Bang' at Citi - WSJ.com
OCTOBER 6, 2009 | WSJ | By DENNIS NISHI.

Hamid Biglari went from physics to finance. Now, he's helping lead efforts to revive Citigroup Inc...."I've always believed the best time to reinvent yourself is when you're on a high note as opposed to when in decline," he says. "Your options are larger that way."
...After a fourth-quarter 2008 loss of $8.3 billion, Citigroup moved to split into two different entities: Citicorp would handle the retail banking and investment operations while Citi Holdings would have the riskier "noncore" assets. Mr. Pandit named Dr. Biglari vice chairman in charge of strategy and resource allocation for Citicorp. Dr. Biglari had already spent the past year restructuring the securities and banking side of the business. He says he is now working with Mr. Pandit to reframe the company.The pressure has been intense, but Dr. Biglari feels he is in the job that he has been working for since leaving physics.
Citigroup  Second_Acts  Iranian  Robert_Rubin  physicists  finance  generating_strategic_options  McKinsey  Managing_Your_Career  reinvention  options  reframing  resource_allocation 
october 2011 by jerryking
Business Schools Plan Leap Into Data - WSJ.com
AUGUST 4, 2011
By MELISSA KORN And SHARA TIBKEN
As the use of analytics grows quickly, companies will need employees who
understand the data. A May study from McKinsey & Co. found that by
2018, the U.S. will face a shortage of 1.5 million managers who can use
data to shape business decisions....The Center for Customer Insights at
the Yale School of Management offers students the chance to work on
analytics projects for, and with, companies.
analytics  curriculum  business_schools  McKinsey  Yale  customer_experience  Melissa_Korn  data  massive_data_sets 
august 2011 by jerryking
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