| This week, how capability building offers strategic advantages. Plus, two revolutions—one in biotech and the other in British industry. The Shortlist team is taking a quick break for the US Independence Day holiday; we’ll see you back here on July 9. |
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| A strong foundation. Capability building—creating the mindsets and behaviors an organization needs to reach and sustain its full potential—is now more relevant than ever as businesses attempt to rebound from the health and economic effects of COVID-19. |
| Training days. Because automation, AI, and other advanced technologies have profound implications for the workforce of the future, virtually every employee in every industry will need to develop new competencies as a result. Yet even as businesses seek to develop the skills that will allow them to thrive—including decision making, leadership, and managing people—it’s no secret that many training programs fail. |
| Taught by tech. According to McKinsey experts, skill building will likely move away from an event-based model where people are gathered in one room and attend a workshop. Instead, technology will enable more personalized methods that are paced to the individual, including those that immerse the learner in real-life scenarios (and maybe make them harder to sleep through). |
| Sailing away, with AI. At the enterprise-wide level, new ways of building capabilities include an advanced AI technique called reinforcement learning. The AI agent learns through trial and error, suggesting solutions at a faster pace than many humans can muster. Potential business applications include making complex processes more efficient, quickly iterating on designs, and steering interactions with customers. In one cool example, McKinsey and Emirates Team New Zealand used the technique to optimize performance and test thousands of designs, helping the sailing team defend its victory at the 2021 America’s Cup. |
| Worries. But even as executives urgently need to equip their workforces, a 2020 McKinsey survey revealed that only one-third of business leaders agreed that their capability-building programs often or always achieved the desired impact on the business. And although CFOs are often well placed to develop talent and advocate for employee-training programs, less than half of those we surveyed said they actually had the time to focus on capability building. |
| Opportunities. C-suite leaders have a postpandemic chance to develop talent by identifying the skills needed now and in the future, and by working with HR leaders to map skill sets to strategic and operating plans. To do this, they can establish a skills matrix that outlines key roles and responsibilities relevant to the changed business context. And they should remember that investments in capability building don’t show immediate payoffs. A well-designed program to promote productive behavior and skills takes time, but it’s worth it. |
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| OFF THE CHARTS |
| Shoppers want to pick their own produce again |
| In the six months prior to April 2021, European and US consumers continued to embrace digital channels, as they had done since the start of the pandemic, in nearly every industry. But grocery was a notable exception. When it comes to digital growth rates, it’s worth noting the obvious: industries that are highly digitized already, such as entertainment, have less room for further growth than industries with low digital adoption, such as grocery. |
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| PODCAST |
| Good genes |
| In our inaugural episode of Forward Thinking, McKinsey Global Institute’s Michael Chui and Anna Bernasek chat with Jason Kelly, cofounder and CEO of Ginkgo Bioworks, and with Dr. Michelle McMurry-Heath, president and CEO of the Biotechnology Innovation Organization, about how biological technologies are transforming the world, from personalized medicine and disease treatment to genetically engineered crops. |
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| McKINSEY FOR KIDS |
| Magical mangroves |
| What do Bengal tigers, Pygmy three-toed sloths, and proboscis monkeys have in common? They’re all animals you might encounter in mangrove forests, one of nature’s most diverse ecosystems. In our third edition of McKinsey for Kids, we explore all the ways mangroves help endangered animals, as well as humans—and make the case for why conserving nature is not only the right thing to do but also makes good economic sense. |
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| BACKTALK |
| Have feedback or other ideas? We’d love to hear from you. |
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