Diversity, Digitalization Reshape the Labor Market: McKinseyBy Sofía Hanna | Fri, 02/04/2022 - 10:48
Q: What trends regarding diversity and inclusion has McKinsey identified in recent years?
A: People from different backgrounds have different preferences and bring different strengths and opportunities to an organization. In the past few years, diversity has become more evident as it becomes easier for companies to incorporate workers from different parts of the world. Diversity is positively impacting professional lives and businesses. Generating an open space for collaboration brings out the best in employees. Diverse teams also generate better results.
For example, companies with more than 30% women executives were more likely to outperform companies where this percentage ranged from 10 to 30%. A substantial differential likelihood of outperformance (48%) separates the most from the least gender-diverse companies. Teams will continue to become more diverse, which will be extremely beneficial for companies.
Q: Why are companies increasingly interested in sustainability and social responsibility?
A: The pandemic highlighted that we are all in this together. A virus originating on the other side of the world changed everyone’s lives. Regardless of location, individuals face similar challenges. The pandemic is a global problem similar to climate change, so we all must act together.
Businesses are changing how they measure performance and success because they are starting to consider their long-term impact. Consumers have been a key piece in this movement because they demand that organizations, products and companies be environmentally and socially responsible.
Q: How are businesses building resilience in a world suffering through a pandemic and what role can McKinsey play in strengthening these businesses?
A: The pandemic changed lives in just 12 weeks. We realized that the premise on which we had been building our business model was only useful in a specific scenario. In just 12 weeks, we recognized that what we thought was normal can change quickly. Our ability to react to abrupt changes to what we consider normal is what makes us resilient.
McKinsey helps industries and organizations solve the issues that have arisen from this uncertainty. We are also helping our clients to develop more resilient supply chains, keeping in mind costs and revenues. Our main challenge is preparing for scenarios that we do not even know exist.
Part of our approach to help companies remain competitive and adapt to the Next Normal focuses on five areas:
- New digital experiences, products, and services in response to changes in customer behaviors
- New partnerships, both within and outside of the industry.
- Supply-chain and operating-model adjustments to manage risk.
- Sales-model changes. Many businesses have had to adapt the way they market and sell
- Faster product development through more rapid iteration.
Q: What are some ways companies can “give back” without risking their operations?
A: Companies should not think of giving back as a tradeoff because being socially responsible or environmentally sustainable does not mean being less productive or losing revenue. These issues should be addressed through long-term strategies that minimize the potential harm a business might have on society and the environment. Business must lead a shift from the quarterly capitalism to what might be referred to as long-term capitalism. At McKinsey, we urge companies to plan in terms of five to seven years.
Q: How are businesses creating the services and products of the future to continue being relevant?
A: If we plan for the next five years, we cannot afford not to think about innovation. Some of the most profitable companies in the world did not exist 20 years ago. We cannot know what will happen in 20 years but we know that those who have innovation at the center of their day-to-day activities are more likely to be successful.
Innovative companies are following three trends. First, they focus on the customer. Second, they are open to diverse talent, knowledge and expertise, allowing them to properly leverage their talent. Finally, ambitious companies are willing to make “big moves,” which means rethinking their investments, being aggressive in mergers and acquisitions and becoming more productive.
Q: How is McKinsey helping SMEs stay relevant and up to date with demands and market trends?
A: McKinsey is becoming a more diverse firm. We are launching “Fuel by Mckinsey” in Mexico, a division that works with smaller fast-growing firms. We are also making our insights available to as many as possible because it can help these companies grow.
Mexican companies are mainly concerned about the “new normal.” Some trends, such as flexible work, are here to stay and we help our clients and partners to embrace them for continued growth and improved operations. The second trend is the data revolution because the amount of data available has grown exponentially and it is a great asset but few know how to use it. Finally, the pandemic accelerated digitalization. Many organizations had started to embrace digital processes but the pandemic greatly accelerated this transition. McKinsey is doing everything in its power to make these transitions easier and more productive.
You won’t believe what we can do together!
McKinsey is a global management consulting firm that works with clients across every major sector to drive growth and opportunities for their employees, communities, and citizens broadly