CURATED READS FOR GEN Z—AND THEIR Z-CURIOUS COLLEAGUES

first up

Welcome back! This week we’re talking about inside-out leadership, why authoritative bosses are out, and the new Gen Z party trick.

What skills do the best CEOs have? Many business leaders have deep experience in finance, technology, corporate strategy, or operations. But in today’s increasingly fast-paced and complex world, this may not be enough to translate their goals into lasting success.

In their new book, The Journey of Leadership: How CEOs Learn to Lead from the Inside Out, McKinsey senior partners Dana Maor, Hans-Werner Kaas, Kurt Strovink, and Ramesh Srinivasan note that the best leaders understand that they must first connect with themselves before they can empower their organizations. The book, out September 10, dives deep into the lessons from McKinsey’s Bower Forum, the CEO leadership program that has counseled more than 500 global CEOs in the past decade. One of its chief findings: “human-centric” leaders have hard business skills, of course, but they also draw on softer skills that can help them link their aspirations to the performance of their organizations. These skills include self-awareness, humility, vulnerability, empathy, and authenticity.

Maor and coauthors call this the “inside out” approach to leadership. It begins with introspection (check your ego at the door!) to help you identify your goals and shortcomings. And it calls for personal growth, which means CEOs must constantly be learning, listening, inspiring, and caring.

While the book doesn’t dwell on Gen Z—it offers case studies of effective CEOs who understand how important this leadership journey is—it struck us that Gen Z’s values and skill sets are well aligned with this approach.

For example, Gen Z places emphasis on psychological safety and respect in the workplace while empathy and a willingness to acknowledge vulnerability are two of Gen Z’s calling cards. Gen Zers rank career development and advancement potential as the number-one factor when taking a new job, pointing to a desire for self-improvement. Furthermore, Gen Zers overwhelmingly say they want feedback from their managers, and they expect this feedback to be delivered quickly and honestly so they can learn and grow (no need for the compliment sandwich).

We’ve written plenty about how mentorship is an essential part of career development. But great mentors come in all age brackets. “Reverse mentorship,” where those in more senior positions seek guidance and perspective from junior employees, can also help CEOs because it allows them to see how skills such as empathy, authenticity, and vulnerability can be superpowers. As Gen Zers develop more traditional business skills—in finance, operations, and the like—they’ll be well positioned to move into the top role one day themselves.

Gen Zers, welcome to your trusted-adviser era. 

VISUALIZE IT

Seventy-one percent of CFOs in a recent McKinsey survey said that gen AI has already boosted productivity for employees in the finance function.

WAIT, DON’T SCROLL

For the record. This McKinsey Explainer sets the record straight on what a digital transformation involves—and how important it is to get right.

Innovation station. What happens to gen AI when pragmatism and imagination meet?

Because I said so. Authoritative leadership does not make for healthy organizations (plus five other changes that surprised researchers in the latest update to McKinsey’s Organizational Health Index).

NOT US; STILL GREAT

Let’s get visual. Think you can guess Gen Zers’ preferred party trick? [WSJ]

Wise up. This author advocates a shift from “knowledge” work to “wisdom” work. Here’s what that means for the multigenerational workforce. [HBR]

CROSSWORD

—Edited by Alexandra Mondalek and Jordyn Libow, McKinsey Global Publishing