Great Resignation
Understanding Modern Company Changes: Are You Prepared?
By Nicole Vaughan · 28 April 2023
The world of business is undergoing a series of unprecedented shifts that are reshaping the way organizations operate, compete and create value. From the COVID-19 pandemic to the rapid adoption of artificial intelligence, from the rise of hybrid work models to the growing demand for diversity, equity and inclusion, these shifts are challenging the status quo and creating new opportunities for innovation and growth.
But how well do you understand these shifts and their implications for your organization? And how prepared are you to anticipate and react to external shocks, to attract and retain talent, to build new capabilities and to lead with purpose and inspiration?
In this blog post, I'll share some takeaways from the McKinsey State of Organizations 2023 report, which is based on a survey of more than 2,500 business leaders around the world and interviews with executives from leading organizations. The report identifies ten of the most important organizational shifts that businesses need to address today and provides some ideas and suggestions on how to approach them.
10 Shifts transforming organizations according to The State of Organizations 2023:I'd categorize 6 of the 10 shifts as being related to employee experience. The report indicates we're facing some big challenges but ultimately there's a lot of opportunity to drive change and growth while striving to provide the best employee and customer experiences.
- Increasing speed, strengthening resilience
- ‘True hybrid’: The new balance of in-person and remote work
- Making way for applied AI
- New rules of attraction, retention, and attrition
- Closing the capability chasm
- Walking the talent tightrope
- Leadership that is self-aware and inspiring
- Making meaningful progress on diversity, equity, and inclusion
- Mental health: Investing in a portfolio of interventions
- Efficiency reloaded
10 Key Takeaways
- McKinsey research has shown a direct link between an organization’s health and its financial performance.
- The highest performers in a role are 800% more productive than average performers in the same role.
- Only 25% of respondents say their organizations’ leaders are engaged, are passionate, and inspire employees to the best-possible extent.
- Few employers have acknowledged or found ways to reengage the "quiet quitters"
- Employees surveyed as part of McKinsey’s Great Attrition research say the level of support that organizations offer for mental health and well-being is a top factor in their decision to leave or stay. Implementing successful mental-health and well-being programs requires a long-term outlook by company leaders.
- 40% of respondents attribute inefficiencies to unclear roles and responsibilities, leading to confusion, slow decision making and duplication.
- Many of the metrics about top leadership inevitably focus on the CEO, but the entire C-suite team is critical to success.
- The survey results reveal a gap between what organizations say they want to do with DEI and what they are actually doing.
- CEO’s ability to scale leadership throughout an organization - affecting people’s immediate bosses and how they lead others is an important facilitator or blocker for employee experience.
- There is a disconnect between employers and employees