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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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Iran-Israel crisis: Dangers still high with little room for diplomacy

Iran-Israel crisis: Dangers still high with little room for diplomacy

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

Does the Iran-Israel crisis offer a unique opportunity for diplomacy?

I don't think so. They certainly give an opportunity for a bunch of countries to reengage with Israel. We're seeing that with Jordan, with Saudi Arabia, and to show the Iranians that they are still considered to be the big concern as an enemy in the region, a disrupter. But that's very different from saying we're going to see a breakthrough in relations. You're not resetting deterrence. Iran is going to continue to lead the axis of resistance and provide weapons and intelligence and engage in strikes against targets across the region. Israel will still hit Iranians that are operating there. So going forward, I think the dangers are still pretty high.

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Trump's NYC hush-money trial: What to watch for

Trump's NYC hush-money trial: What to watch for

Jon Lieber, head of Eurasia Group's coverage of political and policy developments in Washington, DC, shares his perspective on US politics.

This is what we are watching in US Politics this week: Trump's trials.

Former President Trump faces or faced six civil or criminal actions against him in 2024, an election year. Two of which, civil finds that he was already found liable for. He's had to pay significant sums of money. Two of which, a case in Georgia and one in Florida, are very unlikely to start in this year, and one of which could start later this summer, this federal trial against Trump for election interference in Washington, DC. The final trial is set to begin next week. A trial in Manhattan for business records frauds related to hush money payments he made to a woman he was having an affair with before the 2016 election.

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What will Israel's invasion of Rafah look like?

What will Israel's invasion of Rafah look like?

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

How will Iran respond to the attack on their consulate in Syria?

An Israeli strike that killed the Islamic Revolutionary Guard Corps leader of Iran in Syria. So on the one hand, Iranian citizen, high-level military official. On the other hand, not in Iran itself, in Syria supporting proxy attacks. Clearly the Iranians have been willing to push hard using the leverage they have in the so-called acts of resistance to engage in strikes against civilian shipping, against Western military capabilities, and against Israel.

The Israelis are showing that they will attack wherever they think fit against them, but Iran has been reluctant to allow this to potentially lead to escalation in a direct war against Iran, which is why it's hard to imagine the Iranians engaging in direct strikes against Israel itself. Ballistic missile strikes from Iran into Israel. So in other words, if you're going to hit Israel, you try to use proxies or you try to hit Israelis outside of Israel itself. Israeli diplomatic facilities, for example, that's where I think you're more likely to see escalation. Escalation seems almost certain from the Iranians, but containing it also is something the Americans and Israel are trying very, very hard to do and that continues to be the case like when we saw the American servicemen killed in Jordan a couple months ago.

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Ukraine will define the future of NATO

Ukraine will define the future of NATO

Carl Bildt, former prime minister of Sweden, shares his perspective on European politics from Stockholm.

How is the role of NATO evolving now as the 75th anniversary of the organization coming up?

Well, it's going to be Ukraine that's going to be defining the future of NATO. Two issues most immediately: One, if NATO can take on a stronger role for coordinating military aid to Ukraine, that's been done so far by an ad hoc coalition and US support; there’s a proposal on the table for taking that over. The second is, of course, what Secretary General Jens Stoltenberg proposed on the day of the ministerial meeting in Brussels, to set up a very large fund for financing the military support in the years to come. We'll see how these two proposals evolve over the time period up until the Washington summit. And then there's, of course, the big issues of Ukraine membership.

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What Florida's abortion rulings mean for the 2024 US election

What Florida's abortion rulings mean for the 2024 US election

Jon Lieber, head of Eurasia Group's coverage of political and policy developments in Washington, DC, shares his perspective on US politics.

This is what we are watching in US Politics this week: Abortion.

Abortion is the big story in US politics this week with the Florida state Supreme Court ruling that a ballot initiative that would protect access to abortion up until fetal viability will be on the ballot in abortion in Florida this year. Democrats are excited about this ruling because it was starting to look like Florida was increasingly out of reach for them.

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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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