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The new wave of innovation is cause for business optimism about 2021play icon

The new wave of innovation is cause for business optimism about 2021

Kevin Sneader, Global Managing Partner at McKinsey & Company, provides perspective on what corporate business leaders are thinking during the global coronavirus crisis:

Should businesses be pessimistic or optimistic about 2021?

It's easy to be gloomy about the year ahead when faced with the realities of a cold, bleak winter in much of the world. Add to that lockdowns across Europe, surging case numbers and hospitalizations, and dreadful events in the Capitol in the US to name a few reasons for pessimism. But I think there is a case for optimism when it comes to this year. After all, it's true to say that it's always darkest before the dawn, and my conversations with business leaders suggest there are reasons to be positive by 2021.

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Why big business should help small business - and howplay icon

Why big business should help small business - and how

Kevin Sneader, Global Managing Partner at McKinsey & Company, provides perspective on what corporate business leaders are thinking during the global coronavirus crisis

Should big business care about small business in these times?

The answer is yes and for many reasons. First, small business is the lifeblood of our economies. 45% of employment in emerging countries and 70% in the OECD comes from small and medium enterprises. Moreover, these enterprises have been badly hit by the crisis. Surveys indicate as many as 50% of European small to medium enterprises feel they may not survive over 12 months. While SMEs are relying on government support, larger companies do have a role to play. After all, this includes prioritizing small business and procurement by locking in demand for multiple years, thus facilitating access to good credit, paying receivables to small business in time and where possible, ahead of schedule. Cash flow matters most when you're small. Looking out for small businesses that have lower resilience. For example, financial institutions can lend more and in doing so, ensure deeper customer relationships in the future.

Hurdles to bringing a COVID-19 vaccine to marketplay icon

Hurdles to bringing a COVID-19 vaccine to market

Kevin Sneader, Global Managing Partner of McKinsey, looks at the challenges around a COVID-19 vaccine from the corporate business leadership perspective on Business In 60 Seconds.

What will it take to bring a COVID-19 vaccine to market?

Now, there are reasons to believe that a COVID-19 vaccine can indeed be developed faster than any other in history. For a start, the characteristics of this virus, unlike some families of viruses, coronaviruses overall have been shown to mutate at relatively low to moderate rates. Moreover, the sheer number of development efforts mean that over 275 vaccine candidates in development, with over 45 already in clinical trials. This is coupled with unprecedented access to funding, given over $17 billion has been committed to vaccine development and supply. That said, there are multiple hurdles to overcome. They start with getting the science right, including validating the platform technologies and demonstrating both safety and efficacy. But let's not forget that we also need enough capacity to manufacture and supply in place to reach patient populations now, and over time. And last, but by no means least, people need to be willing to be vaccinated. In the US in May, 72% of Americans said they would get vaccinated. That number has fallen to 51% in September.

2021 opportunities & threats: inequality, mental health, environmentplay icon

2021 opportunities & threats: inequality, mental health, environment

Kevin Sneader, Global Managing Partner at McKinsey & Company, provides perspective on what corporate business leaders are thinking during the global coronavirus crisis:

What are the opportunities and threats on the horizon for 2021?

Now, given the pandemic is still raging, it's hard to narrow the threats and opportunities down, but here are three threats and three opportunities. One, a growing likelihood of increased inequality on several fronts. Gender, since a quarter of women in work we recently did with LeanIn.org were either contemplating leaving or taking time out of the workforce. This reached 40% for those with young children. Race, since Black Americans have seen their jobs disappear at a far greater rate than their white counterparts. And income, since COVID deaths are 4 to 5 times higher among the unemployed and are concentrated in jobs that have been hardest hit. The second threat, mental health. The signs are increasing that this is the other side of the health threat that the virus poses. And three, the environment. They need to ensure a green rather than brown recovery at a time when money is tight.

On the opportunities, first off, flexibility in working through remote and other forms of working that are now happening. Secondly, innovation; we've seen more startups this year being started than in any year before. And lastly, the environment; for all that I said there is a risk of a brown recovery, policy makers and businesses alike in much of the world assuring they're prepared to invest behind the business case for a green recovery.

Balancing long-term business strategy with short-term needsplay icon

Balancing long-term business strategy with short-term needs

Kevin Sneader, global managing partner for McKinsey & Company, provides perspective on how corporate business leaders think in response to the coronavirus crisis:

Why is managing for the long term difficult?

Well, we know from earlier research that companies that are oriented towards long-term performance, rather than short-term targets, generate more shareholder value, create more jobs, and contribute more economic growth. But we are seeing short-term behaviors, like cutting costs to boost quarterly earnings, have become more common in the past few years. Executives say they face heavy pressure from investors, and even fellow directors, to meet quarterly targets. And recently, disruptions from COVID-19 give executives more short-term issues to deal with. Now let me be clear, short-term results do matter. They're needed to stay credible. However, trouble happens when short-termism ensures focus in quarterly earnings, which have little to do with long-term value creation. It's far more important to pursue steady improvements, and fundamentals like growth, and return on invested capital.

5 steps for planning 2021 budgets amid uncertaintyplay icon

5 steps for planning 2021 budgets amid uncertainty

Kevin Sneader, global managing partner for McKinsey & Company, provides perspective on how corporate business leaders think in response to the coronavirus crisis:

How can business leaders approach budget planning for 2021 when the environment is so uncertain?

In short, I believe that the planning process for 2021 presents an opportunity to turn hard earned lessons from the COVID-19 pandemic. It's an enduring exercise that links strategy to value. Now, five steps are needed for this to happen.

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How has the pandemic influenced climate action?

How has the pandemic influenced climate action?play icon

Kevin Sneader, global managing partner for McKinsey & Company, provides perspective on how the pandemic has influenced climate action:

Has the pandemic helped or harmed efforts to tackle climate change?

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How COVID is changing consumer behavior

How COVID is changing consumer behaviorplay icon

Kevin Sneader, global managing partner for McKinsey & Company, provides perspective on how corporate business leaders think in response to the coronavirus crisis:

What does the next normal consumer look like?

COVID-19 is changing how consumers behave across every aspect of their lives. A few examples. Overall, consumption is declining. 12% drop in private consumption is anticipated in the US over the next two years. 35% of Netflix subscribers now use Netflix for educational content. And over 40% of consumers are watching more TV, 40% more social media. But beneath these broad shifts, new behaviors are hiding significant variation. One example, for all the excitement around online shopping, not everyone liked the experience. 60% of Italian consumers shopped online during the crisis, a dramatic increase, but less than 10% said that they found the experience satisfying.

The result? Companies need to rethink their engagement with consumers and specifically reflect on the following, how consumers get their information, meet them where they are, not where they used to be, where consumers purchase, given a rebalancing of the channels that they use, and understand what they value in the shopping experience. Online shopping can certainly be efficient. And when there are no other alternatives, it can even be exciting. But it can also be deadly dull and often frustrating. Reengineering that experience is therefore key.

Three steps to get remote & hybrid learning right

Three steps to get remote & hybrid learning rightplay icon

Kevin Sneader, global managing partner for McKinsey & Company, provides perspective on how corporate business leaders think in response to the coronavirus crisis:

How do we get remote and hybrid learning right?

For many, this is the back to school season. But this year's preparations are fraught with added anxiety as educators, public health officials, and parents try to balance the need to reduce the spread of the virus with a desire to get students into more productive learning environments. For many students, a full time return to the classroom will not be safe for some time. It's important to understand three lessons in order to get remote and hybrid learning right.

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HR Reset: Post-COVID Lessons for Growth

HR Reset: Post-COVID Lessons for Growthplay icon

Kevin Sneader, global managing partner for McKinsey & Company, provides perspective on how corporate business leaders think in response to the coronavirus crisis:

What is the role of HR going into the next normal?

Well, this is a time of reset and one big reset that I see is around the role of HR. I think it's time for HR to shift from being a transactional partner around compensation, organization charts, and benefits to being a truly integral architect of change. Now, that's been happening for years in the best performing HR departments. It Involves rethinking talent requirements, capturing what was learned about individuals and organizations during the course of this pandemic, and even learning and growing in a world in which remote working has to be combined with working back in the office or the manufacturing facility. A world where incentives needs to be rethought. And where employee experiences need to reflect a very different reality. So, there's a big reset going on and I think that reset needs to embrace HR both in terms of what HR can do, the role of the CHR role, and indeed the way in which together HR becomes a true architect for change, just as it has done for many years, perhaps unnoticed, and not give enough credit by those who really should know better.

Ensuring access to technology for all is critical during a pandemic

Ensuring access to technology for all is critical during a pandemicplay icon

Kevin Sneader, Global Managing Partner at McKinsey, shares his perspective on corporate business leadership on Business In 60 Seconds:

How can technology be a force for good?

Well, we've been living through a pandemic where in many ways, technology has come to the rescue. Imagine how society, business, and communities would have fared if technology had not been up to the challenge that we've all been facing. In health, artificial intelligence is accelerating the development of vaccines. Analytics are providing us new ways to set about all tasks that confront us in this next normal. Education, while remote schooling is far from perfect, but it has helped millions of children get an education when otherwise they would have not been able to gain one. And even in inclusion, technology has enabled flexibility for those desperately in need of it, when they cannot go to the office, they cannot go to the manufacturing facility. And in the environments case, emissions have been reduced by applying technology to bring people together, where airlines no longer travel. So, the challenge now, how to bridge the divide between those who have access to technology and those who do not. That is really the challenge and one to which I will return, because the answer to the question of can technology be a force for good has been resoundingly answered. The question now is how to ensure everyone has access to it.

Business Leaders Need Empathy in Post-COVID Next Normal

Business Leaders Need Empathy in Post-COVID Next Normalplay icon

Kevin Sneader, Global Managing Partner at McKinsey & Company, stresses the value of leading with empathy:

How should leaders lead in this next normal?

When I was chatting with a CEO recently, he said to me that the biggest characteristic he exercised in leading his corporation wasn't financial acumen, wasn't an insight into understanding organizational dynamics, it was actually showing a little love. Showing a little love, that's an odd thing for a CEO to say as the number one attribute. But we're in the midst of a pandemic and that's what's required. It means empathy over facts. It means elevating the to-be list to be at the same level of importance as the to-do list. In other words, which CEO wants to show up today? To be caring, to be determined, to be confident. Think about that.

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Learnings from working post-COVID: economy, work-life, leadership

Learnings from working post-COVID: economy, work-life, leadershipplay icon

Kevin Sneader, Global Managing Partner at McKinsey, shares his perspective on corporate business leadership on Business In 60 Seconds:

What do we know now that we did not know four months ago when the coronavirus struck with vengeance?

I think there's a lot. First, we've learned about our economy. We know that we've now taken the elevator down and we're taking the stairs back up. We're seeing a return, as I observe what's happening across the world, but from a very low base. And the letter of choice is not an L, a V or a U, but I think it's a big question mark.

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How should business leaders manage the return to work?

How should business leaders manage the return to work?play icon
Kevin Sneader, global managing partner for McKinsey & Company, provides perspective on how corporate business leaders think in response to the coronavirus crisis:

As workplaces reopen, how should leaders manage the return to work?

Well, let me start by saying that first, return is not a date, it's a muscle. We've seen cities with the tightest of rules and disciplines experience a second or third wave of the coronavirus. Indeed, Melbourne and Hong Kong bring this life today, for all of us. Therefore, it's not a question of announcing a date for return and saying everything is done. Instead, it's about a process, one that will have a series of ups and downs. In fact, two steps forward, one step or more back, maybe the story of our times. We need to be able to live with disruption as usual and respond with a tailored, relevant set of actions.

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