McKinsey Quarterly 2012
Not Enough Comps for Valuation? Try Statistical Modeling. Traditional approaches rely on data from comparable businesses -- but such data aren’t always available. Statistical modeling can broaden the comparison while controlling for differences.
Overcoming A Bias Against Risk. Risk-averse mid-level managers making routine investment decisions can shift an entire company’s risk profile. An organization-wide stance toward risk can help.
Avoiding a Risk Premium That Unnecessarily Kills Your Project. Too high a discount rate can make good projects seem unattractive. How high is too high?
How to Put Your Money Where Your Strategy Is. Most companies allocate the same resources to the same business units year after year. That makes it difficult to realize strategic goals and undermines performance. Here’s how to overcome inertia.
The CEOs Guide to Innovation in China. Dynamic domestic players and focused multinationals are helping China churn out a growing number of innovative products and services. The article describes how best to compete in this environment.
Why Bad Multiples Happen to Good Companies. A premium multiple is hard to come by and harder to keep. Executives should worry more about improving performance.
A Long-Term Look at Value Creation in M&A. Companies that do many small deals can outperform their peers -- if they have the right skills. But they need more than skill to succeed in large deals.
The Executive’s Guide to Listening. Strong listening skills can make a critical difference in the performance of senior executives.
Does Your CEO Compensation Plan Provide the Right Incentives? Few boards look at how the CEO’s total wealth invested in the company changes as stock prices fluctuate. They could -- and they should.
The World at Work: Jobs, Pay, and Skills. A voluminous report (more like a short book) on past and future trends affecting the global labor force from The McKinsey Global Institute. An outstanding piece of research.
McKinsey Quarterly 2011
How US Health Care Reform Will Affect Employee Benefits. The shift away from employer-provided health insurance will be vastly greater than expected and will make sense for many companies and lower-income workers alike.
Have You Tested Your Strategy Lately? Ten timeless tests can help you kick the tires on your strategy and kick up the level of strategic dialogue throughout your company.
Re-mapping Your Strategic Mindset. Shake up your thinking by looking at the world from the perspective of a particular country, industry, or company. “Rooted” maps can help you unearth hidden opportunities or threats.
The Perils of Bad Strategy. Bad strategy abounds, says UCLA management professor Richard Rumelt. Senior executives who can spot it stand a much better chance of creating good strategies.
The Myth of Smooth Earnings. Many executives strive for stable earnings growth, but research shows that investors don’t worry about variability.
The Growing US Jobs Challenge. The US faces a daunting challenge in creating jobs.
McKinsey Quarterly 2010
M&A: A Strong Foundation for 2010. M&A was surprisingly steady in 2009. Indicators point towards continued strength in 2010.
How Helping Women Helps Business. Companies whose social investments are focused on helping women in developing economies not only help women -- evidence indicates they help themselves as well.
How We Do it: Three Executives Reflect on their Strategic Decision-Making Process. WPP’s Sir Martin Sorrell, Kleiner Perkins’ Randy Komisar, and Xerox’s Anne Mulcahy.
The Future of Capitalism: Credit, Lending and Leverage. A Panel of CEOs and business leaders debate the future of credit, lending and the use of leverage.
Equity Analysts: Still Too Bullish. After almost a decade of stricter regulation, analysts’ forecasts continue to be excessively optimistic.
McKinsey Quarterly 2009
How Managers Should Approach The Fragile Economy. For the immediate future, business leaders will have to master the disciplines of uncertainty.
The Crisis: Timing Strategic Moves. Timing is key as companies weigh whether to make strategic investments now or wait for clear signs of recovery. Scenario analysis can expose the risks of moving too quickly or slowly.
Helping US Consumers Rethink Retirement. The economic crisis has left US consumers anxious and less prepared than ever for retirement, yet few are changing course.
What Next? Ten Questions for CFOs. As companies shift their attention from fighting the crisis to getting the most from the recovery, CFOs must keep them focused.
The New Normal. The business landscape has changed fundamentally; tomorrow’s environment will be different, but no less rich in possibilities for those who are prepared.
How Health Care Costs Contribute to Income Disparity in the United States. Recent trends in health care costs, health care coverage, and household income have contributed to growing disparities between different income groups in the United States.
A Better Way to Fix the Banks. Here’s a plan that could solve the toxic-asset pricing problem voluntarily -- without requiring Uncle Sam to nationalize the whole industry -- and make (pretty much) everyone a winner.
Opening Up to Investors. Executives need to embrace transparency if they want to help investors make investment decisions. But what should be disclosed?
McKinsey Quarterly 2008
Why Americans Pay More for Health Care. The United States spends more on health care than comparable countries do and more than its wealth would suggest.
How Companies Make Good Decisions. Companies get a lot of advice about how to make good decisions. Which decision-making disciplines really make a difference?
A Healthier Health Care System for the United Kingdom. New research indicates that leadership by clinicians and talent management are the keys to making things better.
Innovation in Health Care: An Interview with the CEO of the Cleveland Clinic. Delos “Tony” Cosgrove discusses innovation in health care -- including a key role for top executives to play in reducing the nation’s health care burden.
Preparing For an Earnings Slump. Historic trends suggest earnings may fall more than most executives expect. Companies should prepare for steeper declines and take steps to strengthen their positions when times improve.
McKinsey Quarterly 2007
Building a Competitive Finance Function: An Executive Roundtable. By focusing on talent development, new roles for finance, and creative benchmarks, CFOs can deliver a competitive advantage to their companies.
Crafting a Message that Sticks: An Interview with Chip Heath. The key to effective communication: make it simple, make it concrete, and make it surprising.
How Companies Think About Climate Change: A Global Survey. Fully 60 percent of global executives surveyed by The McKinsey Quarterly regard climate change as strategically important, and a majority consider it important to product development, investment planning, and brand managment.
Preparing For the Next Downturn. In a buoyant economy, the next recession seems far off. But managers who prepare during good times can improve their companies’ chances to endure -- or thrive in -- the eventual downturn.
Building the Civilized Workplace. Nasty people don’t just make others feel miserable; they create economic problems for their companies.
The Halo Effect, and Other Managerial Delusions. Companies cannot achieve superior and lasting business performance simply by following a specific set of steps.
Betting on Biofuels. The industry is still in its infancy, but evolving rapidly. Companies that hope to compete must devise their strategy now.
Living With the Limitations of Success. Once companies reach a certain size, setting realistic performance aspirations gets a bit trickier.