Six CEO priorities for 2023 - The McKinsey Podcast Recap

Podcast: The McKinsey Podcast

Published: 2023-04-05

Duration: 1570

Guests: Homayoun Hatami, Liz Hilton Segel, Ginni Rometty

What Happened

Liz Hilton Segel and Homayoun Hatami discuss the evolving macroeconomic environment that CEOs face, highlighting the significant changes in consumer buying behavior and the importance of adapting to these shifts. They note that digital channels have seen tremendous growth, with China playing a key role in global GDP, which necessitates a reevaluation of business strategies in the region.

Building resilience is emphasized as a critical priority for CEOs, with resilient companies generating shareholder returns 50% higher than less resilient peers during 2020-2021. This involves preparing for disruptions by diversifying supply chains, implementing predictive maintenance through analytics, and focusing on top talent in value-driving roles.

Strategic courage is encouraged, with a focus on taking calculated risks even when economic indicators are unfavorable. This includes pursuing M&A strategies, reallocating resources, and building capabilities to compete effectively. Engaging with clients and understanding market trends are vital for a forward-leaning posture.

Technology is recognized as a key driver of growth, with 89% of companies engaged in digital transformation, yet only a third achieving anticipated financial value. CEOs must ensure technology initiatives are directly linked to value creation and have a mature product management capability. Software differentiation is crucial in outperforming competition.

Net zero commitments remain a focal point, with the potential to create significant economic opportunities. CEOs are urged to view sustainability as a business opportunity, with investments in electrification, sustainable aviation, and agriculture presenting positive ROI.

Talent management is reshaped by focusing on potential over pedigree and embracing hybrid work models. Companies experimenting with new approaches to work will likely see increased productivity. Emphasizing skills and fostering a culture of continuous learning are key to building an inclusive workforce.

Key Insights