英文摘要 EXECUTIVE SUMMARIES JUNE 2021

FEATURES

LEADERSHIP DEVELOPMENT

The High Cost of Poor Successio Plaig

Claudio Ferádez-Aráoz, Gregory Nagel, ad Carrie Gree page 084

May large compaies fail to payeough attetio to their leader-

ship pipelies ad successio practices. That leads to excessive

turover at the top ad destroys a sigificat amout of value—close

to $1 trillio a year amog the S&P 1500 aloe, say the authors of this

article. The biggest costs are uderperformace at compaies that hire 英文摘要 EXECUTIVE SUMMARIES JUNE 2021

FEATURES

LEADERSHIP DEVELOPMENT

The High Cost of Poor Successio Plaig

Claudio Ferádez-Aráoz, Gregory Nagel, ad Carrie Gree page 084

May large compaies fail to payeough attetio to their leader-

ship pipelies ad successio practices. That leads to excessive

turover at the top ad destroys a sigificat amout of value—close

to $1 trillio a year amog the S&P 1500 aloe, say the authors of this

article. The biggest costs are uderperformace at compaies that hire ill-suited ex-teral CEOs, the loss of itellectual capital i the C-suites of orgaiza-tios that executives leave behid,ad for compaies

promotig from withi, the lower performace of ill- prepared

successors.

Compaies ad their boards ca(ad must) do better. The solu-

tio is’t that complicated: Firms eed to start successio plaig well

before they thik they eed to; make sure they idetify ad develop

risig stars; appoit the most-promisig executives to the board to help

prepare them to take o the top job; ad look at both iteral ad

exteral cadidates.I additio, whe workig with search cosultats,

firms should avoid perverse icetives like co-tigecy ad

percetage fees.

HBR Reprit R2103F

STRATEGY

Elimiate Strategic Overload

Felix Oberholzer-Gee | page 094ill-suited ex-teral CEOs, the loss of itellectual capital i the C-suites of orgaiza-tios that executives leave behid,ad for compaies

promotig from withi, the lower performace of ill- prepared

successors.

Compaies ad their boards ca(ad must) do better. The solu-

tio is’t that complicated: Firms eed to start successio plaig well

before they thik they eed to; make sure they idetify ad develop

risig stars; appoit the most-promisig executives to the board to help

prepare them to take o the top job; ad look at both iteral ad

exteral cadidates.I additio, whe workig with search cosultats,

firms should avoid perverse icetives like co-tigecy ad

percetage fees.

HBR Reprit R2103F

STRATEGY

Elimiate Strategic Overload

Felix Oberholzer-Gee | page 094As compaies respod to itesify-ig competitive pressures ad

challeges, they ask more ad more of their employees. But

orgaizatios ofte have very little to show for the efforts of their

taleted ad egaged workers.

By selectig fewer iitiatives with greater impact, compaies ca

make their strategies more powerful. A strategic iitiative is worthwhile

oly if it does oe or more of the followig:

• It creates value for customers by raisig their willigess to

pay.As your compay fids ways to iovate or to improve existig

products, the maximum price people will be willig to pay for the

offerig rises.

• It creates value for employees by makig work more

attractive.Offerig better jobs lowers the miimum compesatio that

you have to offer to attract talet to your busiess.As compaies respod to itesify-ig competitive pressures ad

challeges, they ask more ad more of their employees. But

orgaizatios ofte have very little to show for the efforts of their

taleted ad egaged workers.

By selectig fewer iitiatives with greater impact, compaies ca

make their strategies more powerful. A strategic iitiative is worthwhile

oly if it does oe or more of the followig:

• It creates value for customers by raisig their willigess to

pay.As your compay fids ways to iovate or to improve existig

products, the maximum price people will be willig to pay for the

offerig rises.

• It creates value for employees by makig work more

attractive.Offerig better jobs lowers the miimum compesatio that

you have to offer to attract talet to your busiess.• It creates value for suppliers by reducig their operatig cost.As suppliers’ costs go dow, the lowest price they would be will-ig to

accept for their goods falls.

As compaies expad the total amout of value created for their

customers, employees, ad sup-pliers, they positio themselves for

edurig fiacial success.

HBR Reprit R2103E

TECHNOLOGY

Gettig AI to Scale

Tim Foutaie, Bria McCarthy, ad Tamim Saleh page 104

Most compaies are strugglig to realize artificial itelligece’s

potetial to completely trasform the way they do busiess. The • It creates value for suppliers by reducig their operatig cost.As suppliers’ costs go dow, the lowest price they would be will-ig to

accept for their goods falls.

As compaies expad the total amout of value created for their

customers, employees, ad sup-pliers, they positio themselves for

edurig fiacial success.

HBR Reprit R2103E

TECHNOLOGY

Gettig AI to Scale

Tim Foutaie, Bria McCarthy, ad Tamim Saleh page 104

Most compaies are strugglig to realize artificial itelligece’s

potetial to completely trasform the way they do busiess. The problem is, they typically apply AI i a log list of discrete uses, a approach that does’t produce cosequetial chage. Yet tryig to

overhaul the whole orgaizatio with AI all at oce is simply too

complicated to be practical.

What’s the solutio? Usig AI to reimagie oe etire core

busiess process, jourey, or fuctio ed to ed, say three McKisey

cosultats. That allows each AI effort to build off the previous oe by,

say, reusig data or ehacig capabilities for a commo set of

stakeholders. A airlie, for example, focused o its cargo fuctio,

ad a telecom provider o its process for maagig customer value.

Scalig up AI ivolves four steps: (1) Idetify a area where AI will

make a big differece reaso-ably quickly ad there are multiple

itercoected activities ad opportuities to share techology.(2)

Staff the team with the right people ad remove the obstacles to their

success. (3) Reimagie busiess as usual, workig back from a key

goal ad the explorig i detail how to achieve it. (4) Sup-port ew AI-

based processes with orgaizatioal chages, such as iterdiscipliary

collaboratio ad agile midsets.

HBR Reprit R2103Hproblem is, they typically apply AI i a log list of discrete uses, a approach that does’t produce cosequetial chage. Yet tryig to

overhaul the whole orgaizatio with AI all at oce is simply too

complicated to be practical.

What’s the solutio? Usig AI to reimagie oe etire core

busiess process, jourey, or fuctio ed to ed, say three McKisey

cosultats. That allows each AI effort to build off the previous oe by,

say, reusig data or ehacig capabilities for a commo set of

stakeholders. A airlie, for example, focused o its cargo fuctio,

ad a telecom provider o its process for maagig customer value.

Scalig up AI ivolves four steps: (1) Idetify a area where AI will

make a big differece reaso-ably quickly ad there are multiple

itercoected activities ad opportuities to share techology.(2)

Staff the team with the right people ad remove the obstacles to their

success. (3) Reimagie busiess as usual, workig back from a key

goal ad the explorig i detail how to achieve it. (4) Sup-port ew AI-

based processes with orgaizatioal chages, such as iterdiscipliary

collaboratio ad agile midsets.

HBR Reprit R2103H