Inside the Strategy Room

Tim Koller, a partner at McKinsey with over 40 years of experience in corporate finance, and Marc Goedhart, a professor of corporate valuation at Erasmus University, share their insights on the latest edition of their valuation book. They discuss the evolution of valuation concepts amid market uncertainties, emphasizing long-term value creation over short-term gains. The duo explores the differences between private and public company valuations, the impact of market bubbles, and the importance of data-driven decision-making for sustainable growth.

Doug Parker, former Chairman and CEO of American Airlines, recounts his transformative journey through leadership during crises like 9/11 and the COVID-19 pandemic. He discusses the shift from personal ambition to prioritizing employee welfare and effective communication. Parker emphasizes risk management in the airline industry and the importance of board oversight. He also highlights how diverse perspectives enhance decision-making, particularly in navigating geopolitical challenges, offering vital advice for aspiring CEOs facing similar pressures.

Jacob Rüden and Marvin Denis, transformation experts at McKinsey with extensive experience in cash management, discuss how optimizing working capital can drive early wins in organizational transformations. They emphasize the importance of aligning operational goals with financial metrics and share actionable strategies across sectors like automotive and retail. Key insights include the role of inventory management and AI in improving efficiency, and fostering a culture focused on cash performance to sustain momentum in transformations.

John Stankey, AT&T’s CEO and Chairman, discusses his 40-year journey at the company. He emphasizes the importance of long-term vision amid economic uncertainty and highlights the strategic shift to fiber infrastructure for future digital needs. Stankey also explores how artificial intelligence is transforming business efficiency and customer experience. Additionally, he shares insights on navigating leadership challenges during the pandemic, stressing clear communication and the legacy of excellence in corporate culture.

Neil Mehta, a partner and global head of new markets at Apollo Global Management, shares insights on the evolution of private capital. He discusses the rise of non-traditional investment structures and the complexities these introduce for asset managers. The conversation navigates the shift from public to private markets and highlights the need for better investor experiences amid regulatory challenges. Mehta also addresses the transition from B2B to B2C in private capital, emphasizing the demand for customized financial products and innovative strategies to meet diverse investor needs.

Jill Zucker, a senior partner at McKinsey and expert in growth transformation, joins Rebecca Doherty, who specializes in strategic growth for healthcare and tech clients, and Kate Siegel, an advisor to CEOs on holistic growth strategies. They discuss the essential mindsets for achieving sustainable growth despite uncertainties. The trio highlights key behaviors of successful leaders, the importance of customer feedback, and strategies to optimize resources while pursuing new opportunities. They also emphasize translating growth visions into actionable habits for lasting success.

In this enlightening discussion, guests Rajesh Krishnan, a Senior Partner at McKinsey specializing in transformational performance improvements, Tiffany Vogel, a Partner focused on change management in financial institutions, and Matthew Schrimper, an Associate Partner with expertise in large-scale transformations, unravel the complexities of organizational change. They tackle common pitfalls, emphasize the role of culture in strategy, and advocate for deep engagement from leaders and employees to drive successful transformations. Their insights highlight the necessity of clear communication and concrete actions for lasting impact.

Michèle Flournoy, Co-Founder and Managing Partner of WestExec Advisors and former Under Secretary of Defense for Policy, shares her insights on building geopolitical resilience in businesses. She discusses strategies for navigating the current volatile landscape, emphasizing proactive risk management and effective communication during crises. Michèle also highlights the importance of adaptability and recognizes that technological disruptions can present opportunities amidst uncertainty. Tune in for practical advice on strengthening strategic decision-making in these challenging times.

David Gitlin, Chairman and CEO of Carrier Global Corporation, discusses his leadership journey during the challenging times of the COVID-19 pandemic. He highlights the importance of strategic adaptability and fostering a strong organizational culture. Gitlin delves into transforming Carrier towards customer centricity and how technology is pivotal in driving innovation. He also reflects on the lessons learned in team dynamics and decision-making, emphasizing the need for effective communication and a focus on sustainability to guide the company into the future.

Shubham Singhal, a Senior partner and co-leader of McKinsey's Geopolitics Practice, Cindy Levy, the global co-leader of the same practice, and Olivia White, a director at the McKinsey Global Institute, discuss the proactive strategies businesses can adopt in a shifting geopolitical landscape. They emphasize the importance of scenario-based planning and understanding trade dynamics, particularly with rising powers like Vietnam. The experts highlight risk-adjusted value creation and the necessity for resilience against sudden changes brought on by advancements like AI, urging companies to adapt and strengthen their governance.