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The new wave of innovation is cause for business optimism about 2021

The new wave of innovation is cause for business optimism about 2021

Kevin Sneader, Global Managing Partner at McKinsey & Company, provides perspective on what corporate business leaders are thinking during the global coronavirus crisis:

Should businesses be pessimistic or optimistic about 2021?

It's easy to be gloomy about the year ahead when faced with the realities of a cold, bleak winter in much of the world. Add to that lockdowns across Europe, surging case numbers and hospitalizations, and dreadful events in the Capitol in the US to name a few reasons for pessimism. But I think there is a case for optimism when it comes to this year. After all, it's true to say that it's always darkest before the dawn, and my conversations with business leaders suggest there are reasons to be positive by 2021.

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EU Summit focuses on migration crisis

EU Summit focuses on migration crisis

What is the Russian stake in the EU referendum in Moldova? What was the main outcome of the EU Summit last week? Carl Bildt, former prime minister of Sweden and co-chair of the European Council on Foreign Relations, shares his perspective on European politics from London.

What is the Russian stake in the EU referendum in Moldova?

Well, the Russians are intending quite clearly to try to secure a "no" in that particular referendum. They're throwing money at it. They are trying to bribe voters. They are having an information campaign. So it's fairly obvious that their enthusiasm for the European aspirations of Moldova are fairly limited. We'll see how that turns out. There's also presidential election, but their sitting President Maia Sandu is highly likely to be re-elected.

What was the main outcome of the EU Summit last week?

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Canada's fight with India over Sikh assassination heats up again

Canada's fight with India over Sikh assassination heats up again

Ian Bremmer shares his insights on global politics this week on World In :60.

What is the role of the United Nations in the Israel-Gaza war?

Well, it's actually quite a few roles. One, the General Assembly and the Security Council are principle places where you get to see how the various countries around the world respond to the war, what their political positioning is, so the comparative isolation of the United States on the Security Council, for example, what countries do, don't stand with Israel, the Palestinians of the 194 member states around the world? Secondly, the UN is the principal organization that delivers humanitarian aid on the ground in Gaza, staffed overwhelmingly by Palestinians, thousands of them. That's been controversial because a number, something like seven or eight, have been found to have been involved in the support for the attacks on October 7th, the terrorist attacks. And then, finally, you have UN peacekeepers, thousands of them, on the ground in southern Lebanon, with many countries around the world participating. That's the Security Council that's responsible for that but has not been particularly effective at ensuring that the Security Council resolutions, creating a buffer zone, pushing Hezbollah back, and not allowing them to strike Israel, have actually been implemented. So lots of places that they have a role, you learn a lot about the world as a consequence, but it's not like they have a lot of power or a lot of money.

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Is an EU-China trade war brewing?

Is an EU-China trade war brewing?

Carl Bildt, former prime minister of Sweden and co-chair of the European Council on Foreign Relations, shares his perspective on European politics from Vienna, Austria

Is there a risk of a full-scale trade war between the European Union and China?

Hopefully not. But it was a decision, somewhat controversial, the other day by the EU to impose tariffs, not too high but still substantial, on electric vehicles coming from China. The US, of course, has done something similar but much higher tariffs and without much of a theoretical justification. I mean, the EU tried to ground its different decisions in analysis of the subsidies generated or given to the different Chinese car manufacturers. China will retaliate in one way or the other. But talks are going on and there's no interest in a trade war either from the EU side or from the Chinese side. And we should not forget, by the way, that for the moment, there are 100 times more cars sold by European companies in China than Chinese vehicles or cars exported to Europe.

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Why Trump-Putin calls are cause for concern

Why Trump-Putin calls are cause for concern

Ian Bremmer shares his insights on global politics this week on World In :60.

As another hurricane hits Florida, how is information complicating disaster relief efforts?

Well, the heads of FEMA are saying this is by far the worst misinformation environment they've ever seen around a natural disaster, and it makes life a lot more difficult. First of all, it means a lot of people that need help aren't getting help, a lot of people that need to evacuate aren't evacuating, and it undermines the morale of the people that are working to try to help respond to the hurricane. So, for all of these reasons, when you have people saying that the money isn't actually being sent or it's being displaced, or that there are blockades, all of these things, if there's ever a time that you need scientists and authorities to be believed and listened to, it's in a national emergency. We saw these problems with the pandemic working with a lot of uncertainty, and you now see this working with a hurricane, working with a lot of certainty. So, even in an environment that should be depoliticized should be very straightforward that everyone comes together, it doesn't matter if you're red or blue. If you're getting hit by a hurricane, you need the same information. You need the same services that's being undermined by a disinformation environment. My God, am I worried about that in the aftermath of the US election in November. People should not sleep on how challenging it's going to be to get through that.

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Europe's biggest concerns about Middle East, one year after Oct. 7

Europe's biggest concerns about Middle East, one year after Oct. 7

What's the situation of Europe one year after the October 7th attack against Israel? What's the main takeaway from the visit of the new NATO Secretary General to Kyiv? Carl Bildt, former prime minister of Sweden and co-chair of the European Council on Foreign Relations, shares his perspective on European politics from Lisbon, Portugal.

What's the situation of Europe one year after the October 7th attack against Israel?

Well, I think deep apprehension is the best way of summing it up. Fears that we will see a further escalation of the conflict. Could be further problems in Gaza, could be further problems in West Bank. But perhaps particular now the situation of Lebanon, where there's the risk that we will see a further meltdown by the way of Lebanon. And we already have a million people on the move inside Lebanon. We have perhaps 100,000 people who are trying to flee from Lebanon into Syria. Mind you, there was a million and a half fleeing from Syria into Lebanon a couple of years ago. And the fear that we will see any refugee flow coming out of that area into Europe with all of the problems that would entail. So, deep apprehension on that situation.

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Why big business should help small business - and how

Why big business should help small business - and how
Kevin Sneader, Global Managing Partner at McKinsey & Company, provides perspective on what corporate business leaders are thinking during the global coronavirus crisis

Should big business care about small business in these times?

The answer is yes and for many reasons. First, small business is the lifeblood of our economies. 45% of employment in emerging countries and 70% in the OECD comes from small and medium enterprises. Moreover, these enterprises have been badly hit by the crisis. Surveys indicate as many as 50% of European small to medium enterprises feel they may not survive over 12 months. While SMEs are relying on government support, larger companies do have a role to play. After all, this includes prioritizing small business and procurement by locking in demand for multiple years, thus facilitating access to good credit, paying receivables to small business in time and where possible, ahead of schedule. Cash flow matters most when you're small. Looking out for small businesses that have lower resilience. For example, financial institutions can lend more and in doing so, ensure deeper customer relationships in the future.

Hurdles to bringing a COVID-19 vaccine to market

Hurdles to bringing a COVID-19 vaccine to market

Kevin Sneader, Global Managing Partner of McKinsey, looks at the challenges around a COVID-19 vaccine from the corporate business leadership perspective on Business In 60 Seconds.

What will it take to bring a COVID-19 vaccine to market?

Now, there are reasons to believe that a COVID-19 vaccine can indeed be developed faster than any other in history. For a start, the characteristics of this virus, unlike some families of viruses, coronaviruses overall have been shown to mutate at relatively low to moderate rates. Moreover, the sheer number of development efforts mean that over 275 vaccine candidates in development, with over 45 already in clinical trials. This is coupled with unprecedented access to funding, given over $17 billion has been committed to vaccine development and supply. That said, there are multiple hurdles to overcome. They start with getting the science right, including validating the platform technologies and demonstrating both safety and efficacy. But let's not forget that we also need enough capacity to manufacture and supply in place to reach patient populations now, and over time. And last, but by no means least, people need to be willing to be vaccinated. In the US in May, 72% of Americans said they would get vaccinated. That number has fallen to 51% in September.

2021 opportunities & threats: inequality, mental health, environment

2021 opportunities & threats: inequality, mental health, environment

Kevin Sneader, Global Managing Partner at McKinsey & Company, provides perspective on what corporate business leaders are thinking during the global coronavirus crisis:

What are the opportunities and threats on the horizon for 2021?

Now, given the pandemic is still raging, it's hard to narrow the threats and opportunities down, but here are three threats and three opportunities. One, a growing likelihood of increased inequality on several fronts. Gender, since a quarter of women in work we recently did with LeanIn.org were either contemplating leaving or taking time out of the workforce. This reached 40% for those with young children. Race, since Black Americans have seen their jobs disappear at a far greater rate than their white counterparts. And income, since COVID deaths are 4 to 5 times higher among the unemployed and are concentrated in jobs that have been hardest hit. The second threat, mental health. The signs are increasing that this is the other side of the health threat that the virus poses. And three, the environment. They need to ensure a green rather than brown recovery at a time when money is tight.

On the opportunities, first off, flexibility in working through remote and other forms of working that are now happening. Secondly, innovation; we've seen more startups this year being started than in any year before. And lastly, the environment; for all that I said there is a risk of a brown recovery, policy makers and businesses alike in much of the world assuring they're prepared to invest behind the business case for a green recovery.

Balancing long-term business strategy with short-term needs

Balancing long-term business strategy with short-term needs

Kevin Sneader, global managing partner for McKinsey & Company, provides perspective on how corporate business leaders think in response to the coronavirus crisis:

Why is managing for the long term difficult?

Well, we know from earlier research that companies that are oriented towards long-term performance, rather than short-term targets, generate more shareholder value, create more jobs, and contribute more economic growth. But we are seeing short-term behaviors, like cutting costs to boost quarterly earnings, have become more common in the past few years. Executives say they face heavy pressure from investors, and even fellow directors, to meet quarterly targets. And recently, disruptions from COVID-19 give executives more short-term issues to deal with. Now let me be clear, short-term results do matter. They're needed to stay credible. However, trouble happens when short-termism ensures focus in quarterly earnings, which have little to do with long-term value creation. It's far more important to pursue steady improvements, and fundamentals like growth, and return on invested capital.

5 steps for planning 2021 budgets amid uncertainty

5 steps for planning 2021 budgets amid uncertainty

Kevin Sneader, global managing partner for McKinsey & Company, provides perspective on how corporate business leaders think in response to the coronavirus crisis:

How can business leaders approach budget planning for 2021 when the environment is so uncertain?

In short, I believe that the planning process for 2021 presents an opportunity to turn hard earned lessons from the COVID-19 pandemic. It's an enduring exercise that links strategy to value. Now, five steps are needed for this to happen.

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How has the pandemic influenced climate action?

How has the pandemic influenced climate action?

Kevin Sneader, global managing partner for McKinsey & Company, provides perspective on how the pandemic has influenced climate action:

Has the pandemic helped or harmed efforts to tackle climate change?

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How COVID is changing consumer behavior

How COVID is changing consumer behavior

Kevin Sneader, global managing partner for McKinsey & Company, provides perspective on how corporate business leaders think in response to the coronavirus crisis:

What does the next normal consumer look like?

COVID-19 is changing how consumers behave across every aspect of their lives. A few examples. Overall, consumption is declining. 12% drop in private consumption is anticipated in the US over the next two years. 35% of Netflix subscribers now use Netflix for educational content. And over 40% of consumers are watching more TV, 40% more social media. But beneath these broad shifts, new behaviors are hiding significant variation. One example, for all the excitement around online shopping, not everyone liked the experience. 60% of Italian consumers shopped online during the crisis, a dramatic increase, but less than 10% said that they found the experience satisfying.

The result? Companies need to rethink their engagement with consumers and specifically reflect on the following, how consumers get their information, meet them where they are, not where they used to be, where consumers purchase, given a rebalancing of the channels that they use, and understand what they value in the shopping experience. Online shopping can certainly be efficient. And when there are no other alternatives, it can even be exciting. But it can also be deadly dull and often frustrating. Reengineering that experience is therefore key.

Three steps to get remote & hybrid learning right

Three steps to get remote & hybrid learning right

Kevin Sneader, global managing partner for McKinsey & Company, provides perspective on how corporate business leaders think in response to the coronavirus crisis:

How do we get remote and hybrid learning right?

For many, this is the back to school season. But this year's preparations are fraught with added anxiety as educators, public health officials, and parents try to balance the need to reduce the spread of the virus with a desire to get students into more productive learning environments. For many students, a full time return to the classroom will not be safe for some time. It's important to understand three lessons in order to get remote and hybrid learning right.

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