McKinsey on Finance, Number 82

Will the world move to solve its structural problems and make superior short-term choices? Yes or no: that’s the first question on the test.

Few chief executives have faced the challenge of leading a company through an inflationary spike like today’s. Lessons from strong leaders and bold action can help CEOs make the decisions that only they can make.

Inflation destroys value across almost every industry. When high inflation is persistent, companies that merely maintain the same margins and returns are likely to destroy value.

Inflation is high and interest rates are climbing. But if you think the real cost of equity rises in lockstep with government bond yields, think again.

Investor relations should always address business-critical headwinds and tailwinds. But which do companies refer to more—and how does that choice affect market performance?

Although valid questions have been raised about ESG, the need for companies to understand and address their externalities is likely to become essential to maintaining their social license.

CFOs of public companies can draw enormous insight from PE’s focused, proactive approach to value creation—but they have to take the initiative themselves. Here are five lessons to get started.