True transformation—the kind that alters the way a business operates on a cellular level—is what’s needed in today’s uncertain climate. Contact us to inquire about our work in transformation. Transformation is one of the most overused terms in business. You can’t pull off an effective transformation if people have hidden agendas and go off and do their own thing. Please use UP and DOWN arrow keys to review autocomplete results. “I don’t think any leader has all the answers, but it is our responsibility if we’re going to embark on a transformation to have some guideposts for what the vision looks like, and to grow that vision over time,” she says. Never miss an insight. Helping you embed technology where it unlocks the most value for your organization . Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it, Inspire, empower, and sustain action that leads to the economic development of Black communities across the globe. Im Konsumsektor und in vielen anderen Branchen scheitern Transformationsprogramme oft. A McKinsey Live event on ‘The secrets of transformation success’. Why construction is stuck in the analog era Insights on how organizations can respond, and what happens next. We bring to bear our firm’s industry and functional expertise, combined with specialists and practitioners with deep transformation experience. “Throughout this transformation, I said we needed to work a different way in order to be successful,” he says. Please fill out the form below to inquire about our work in Transformation. Email. Recent research reconfirms earlier findings that only 30 percent of transformations deliver their intended benefits and meet the targets committed to during the program-planning stage.. “You need to develop a transformation story that creates lasting connection to the change you want to see,” she says. Use minimal essential our use of cookies, and “It’s almost a sense of ‘the bridge is burning and there’s no going back,’” says Melissa Arnoldi, Vrio CEO. Organizational transformations are hard work, and according to the latest McKinsey Global Survey on the topic, 1 companies are no more successful at overhauling their performance and organizational health than they were ten years ago. McKinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. Our flagship business publication has been defining and informing the senior-management agenda since 1964. Research by the McKinsey Global Institute indicates that digital transformation can result in productivity gains of 14 to 15 percent and cost reductions of 4 to 6 percent. cookies. Featured Insights. In this article, we offer a closer look at how E&C companies can realize benefits like these. Something went wrong. “Incremental change is not their story.” July 16, 2019. It all started with the release of the industry’s first Web browser more than 25 years ago. up to serve consumers, despite the heightened uncertainty of COVID-19. Das McKinsey Digital Lab in Berlin sowie acht weitere Digital Labs weltweit sind spezialisierte Kompetenzzentren, die Strategieberatung mit Design-, Agile- und Technologieexpertise vereinen. That’s because if business models and mindsets don’t shift, those costs will just creep back. “You have to be able to back up your vision with data to get people to understand why you’re doing something.”, Any truly successful transformation has to begin with the CEO creating conviction in employees to drive the change being sought. StumbleUpon . If you would like information about this content we will be happy to work with you. McKinsey’s broad suite of transformation offerings helps clients flip the odds to achieve extraordinary results for their organizations. McKinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. People create and sustain change. “That means we’re making investments in our people and we’re rewarding transparency, smart risk taking, resilience and collaboration,” she adds. Envolva todos na transformação, não apenas os líderes seniores. Die Schaffung einer Performance-Infrastruktur kann dazu beitragen, ein Scheitern zu verhindern. In July, JCI unveiled OpenBlue, an open digital platform that connects traditionally separate systems to make buildings more efficient, sustainable and safe—an especially vital offering in today’s environment. Interview - McKinsey Quarterly Why a cut-and-paste approach to digital transformation won’t cut it: An interview with the founder of Biocon December 2, 2020 – Asian companies can reap many benefits if they not only embrace but also truly understand digital innovation, says Kiran Mazumdar-Shaw. In this edition, Article Video The path to true transformation October 28, 2020 – To deliver lasting change, companies need to take actions that both boost performance and inspire their people. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. Twitter. Subscribed to {PRACTICE_NAME} email alerts. McKinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. Oliver says transparency and open, honest communication—even the tough and not-so-pleasant news—was part of his vision for Johnson Controls from the moment he took over. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it, Inspire, empower, and sustain action that leads to the economic development of Black communities across the globe, Don't miss this roundup of our newest and most distinctive insights, Select topics and stay current with our latest insights. “We looked at the business over a three-year period and saw that we needed to transform our business,” she says. Research shows that 70 percent of transformations fail, but by starting boldly, acting fast, sharing a vision and stretching aspirations, business leaders can flip that script. collaboration with select social media and trusted analytics partners Keeping hundreds or thousands of initiatives on track is a monumental task, one that too few organizations around the world do well. Further, 69 percent of respondents who have an opinion say their companies’ transformations led to a greater capacity for continuous improvement. It started with making sure the company had the right leadership in every line of business, but Oliver says it was more expansive than that. Welcome to the McKinsey Podcast, a business and management podcast featuring conversations with leading experts. Évident pour certains. Reinvent your business. Please click "Accept" to help us improve its usefulness with additional cookies. The good news is that there are companies doing this kind of transformation successfully, and business leaders can learn from their wins. By using this Site or clicking on "OK", you consent to the use of cookies. For George Oliver, chairman and CEO of Johnson Controls, a building technology and solutions company, the transformation challenge was as clear as it was big: Make the 2016 merger of Johnson Controls and Tyco more cohesive, with a unified strategy and a leadership team all moving in lockstep. Press enter to select and open the results on a new page. hereLearn more about cookies, Opens in new Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. People create and sustain change. Read our latest research, articles, and reports on Transformation. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. Ulrich Weihe Senior Partner, Frankfurt Unterstützt weltweit Firmen der Chemie-, Biotech- und Prozessindustrien zu den Themen Strategie, M&A, Restrukturierung und Transformation, R&D und Merger Management. Most transformations fail. Business leaders pride themselves on their ability to pivot and course-correct in times of crisis and economic turmoil. “When that all comes together, it’s magic.”. tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. Article The … Learn about our use of cookies, and collaboration with select social media and trusted analytics partners here Learn more about cookies, Opens in new tab. “You have to paint a picture of where the business needs to head and why.”, Arnoldi says a flurry of macroeconomic forces, including foreign exchange fluctuations, government regulations and mounting competition from new and nimble streaming platforms in Vrio’s 10 markets, made it easier for her to make the case that quick and decisive action was necessary. “There needs to be one vision and a clarity of fundamentals or it’s going to be a mess.”. That was the start of Johnson Controls’ transformation—getting the right alignment at the leadership level, and then “turning the company bottoms up so that we’re getting all the best ideas that over the years weren’t being listened to,” he says. Digital upends old models. topics ranging from leadership and change management to digital, analytics and deep-dives into specific regions and industries. The numbers behind successful transformations October 17, 2019 – Crunching the numbers on transformations suggests good news for companies that go broad, move fast and renew often, prioritize health, and keep stretching their aspirations. In July, the company unveiled OpenBlue, its open digital platform that connects traditionally separate systems to make buildings more efficient, sustainable and safe—an especially vital offering in today’s environment. Doing so is made easier when there’s a growth mindset, she adds. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. Interview - McKinsey Quarterly Why a cut-and-paste approach to digital transformation won’t cut it: An interview with the founder of Biocon December 2, 2020 – Asian companies can reap many benefits if they not only embrace but also truly understand digital innovation, says Kiran Mazumdar-Shaw. But there are companies out there truly undergoing transformations that are creating a sense of urgency, resiliency and momentum to deliver real and sustainable results. These odds are simply unacceptable, especially when the stakes are high. Learn about our use of cookies, and collaboration with select social media and trusted analytics partners here Learn more about cookies, Opens in new tab. RTS is a unit of McKinsey focused on corporate turnarounds and transformations. After years of McKinsey research on organizational transformations, 1 the results from our latest McKinsey Global Survey on the topic confirm a long-standing trend: few executives say their companies’ transformations succeed. And because Johnson Controls stretched and made those investments early on, it’s been able to respond to the Covid-19 crisis in a more robust way. Our latest thinking on the issues that matter most in business and management. Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our cookie policy. Please try again later. But a focus on communicating, leading by example, engaging employees, and continuously improving can triple the odds of success. The series features... Watch our collection of videos featuring perspectives from CEOs, leading industry experts, and authors. Please click "Accept" to help us improve its usefulness with additional cookies. Select topics and stay current with our latest insights. -. We'll email you when new articles are published on this topic. 4 One of the two main reasons, chosen by 61 percent, is that staff gained new skills through the transformation. Flip the odds. “But there are companies out there undergoing real transformations that are creating a sense of urgency, resiliency and momentum to deliver material and sustainable results.”, Of course, a company would never seek out a pandemic to catalyze a transformation, Robinson says. Our work ranges from acute crisis and liquidity management to large-scale transformations. Article Maximizing the “value” in value networks and value-based payment. Required fields are marked with an asterisk (*). Here are the key elements of transformation—with a capital “T”—and how making the right moves now can pay off in the coming years. Trending topics. Accelerate. our use of cookies, and Our flagship business publication has been defining and informing the senior-management agenda since 1964. - McKinsey Global Institute, Interview For Arnoldi, that meant communicating to her team what was going to be different. Share. Please use UP and DOWN arrow keys to review autocomplete results. “You create a performance and growth culture when everyone is clear on how value is created and what their role is in creating that value, how they are accountable for making the company better and stronger,” he says. Our video series looks closer at all the moving parts. “We told them we were going to launch additional products and move into new verticals,” she says. Featured Insights. Our flagship business publication has been defining and informing the senior-management agenda since 1964. Stepping into the CEO’s role in September 2017, Oliver was convinced that small, discreet changes would not fix what was ailing the company. There’s no denying that the fashion industry has been a major contributor to climate change and biodiversity loss—which... ’Tis the season for year-end lists. But it doesn’t stop there. 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