TODAY’S NEWS. TOMORROW’S INSIGHTS.A daily newsletter from McKinsey & Company
Brought to you by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities
Collaborative culture. Leaders often expect their employees to be resilient—that is, able to keep pursuing a goal even in the face of setbacks and difficulties. Yet resilience isn’t an innate trait. Instead, people are more resilient when they’re receiving the right kinds of support in the workplace, an organizational psychology professor says. Psychologists also note that relying too much on resilience can make it difficult for people to change course when they need to. In the end, employers and employees need to work together to create a supportive environment that makes it easier to respond to challenges. [Quartz]
Developing resilient workers. Amid a shifting business landscape, employers need to build workforces that are ready for the future. Retraining and upskilling workers, maintaining a flexible work culture, and prioritizing diversity, equity, and inclusion help companies attract, retain, and motivate top talent. Many companies are moving toward skills-based employee management, according to one CHRO. Tracking workers’ capabilities through an internal system can enable companies to redeploy talent as demands change. [Hindustan Times]
Leading by example. Uncertain times call for leaders who can make their organizations more resilient—and cultivate resilience within themselves. When improving an organization’s long-term stability, leaders need to play both defense and offense, notes Gautam Kumra, chair of McKinsey’s offices in Asia. This could mean making “no regret” moves (such as cost optimization) and building new businesses, for example. As individuals, those leaders must also maintain their mental, physical, spiritual, and emotional energy during times of change.
Six dimensions of resilience. A healthy organization is a resilient organization, able to weather periods of uncertainty and external shocks. Healthy organizations are also more profitable. Our latest analysis finds that companies with top-quartile organizational health in 2017 delivered three times higher total shareholder returns (as measured between 2017 and 2022) than middle-quartile organizations. Focusing on six key areas can help companies achieve greater resilience.
— Edited by Joy Merten, editor, Chicago
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