Inside the Strategy Room

Learn how large companies can take innovation plays from startups' playbooks to drive growth. Hear about the 'beast warm effect' of startups, Uber's transformation in customer experience, the importance of agility and digital-first approach, building successful partnerships, advantages and challenges for big companies in innovation.

Explore the bias towards new projects over maintenance and the need to consider the base case more seriously. Discover the significance of depreciation and maintenance in companies. Find out the origins and solutions for bias in investment decisions.

Learn techniques to determine when to hold on to underperforming assets and when to let them go. Address the difficulties of divesting dying business segments and explore the burden of proof concept. Discover the importance of pruning projects and reallocating resources for better growth. Explore the concept of categorizing business investments and establishing a regular project review process.

McKinsey partner Tim Koller, professor of business strategy Dan Lovallo, and Sean Brown discuss how to tackle anchoring bias in budgeting. They explore techniques like forced ranking, a nonhistorical approach to allocation, and addressing internal dynamics. They also discuss improving the budgeting process and the effectiveness of a bottom-up approach.

Experts discuss biases in decision-making and introduce the 'Bias Busters' series. They explore the power of the 'outside view' and its applications in various contexts. Techniques for analyzing reference cases, such as using regressions and identifying main variables, are shared. The importance of selecting appropriate reference cases and team buy-in is emphasized. Analyzing past projects and peers can enhance decision-making. Three types of learning and finding a reference class are discussed.

Bruce Simpson, a senior partner in our Toronto office, discusses the benefits of a long-term approach for companies, including higher employee engagement, greater customer loyalty, and superior economic returns. The podcast covers the outperformance of long-term focused companies, successful company switching, shaping the investor base for long-term focus, and balancing short-term needs with long-term investments.

Michael Bender, global co-leader of McKinsey Digital and Analytics, discusses the CFO's role in driving digital transformations and the challenges faced. They explore the relationship between digital transformation and analytics, the foundations and blockages of digital transformation, and strategies for digital analytics transformation.

The podcast discusses the significance of working capital and its impact on cash flow and value creation. It explores working capital management strategies in different industries and highlights a case study of a mining company's cultural transformation. The chapter also touches on the use of machine learning in inventory management and its value for CFOs.

This podcast discusses how leading CEOs manage their middle tenure. It explores the lack of research on this topic and highlights the five themes that emerged from interviews with CEOs. The importance of talent rejuvenation, changing leadership teams, and making bold moves are also discussed.

Exploring new metrics to assess R&D performance and compare it to other companies. Measuring the monetization of innovation with two simple metrics. Choosing the appropriate time frame for measuring innovation and considering the innovation timeline when comparing across industries. Key steps to start using metrics for measuring innovation and benchmarking performance. The importance of measuring innovation performance and its link to the eight essentials of innovation.