I had the distinct honor and privilege to speak 1:1 with Dominic Barton, CEO of McKinsey & Co. during my executive-MBA program at Saint Mary’s College. Here are some key takeaways from the leader in business strategy:
Leadership
“I wish I knew this earlier in life. You need to have the ability to compartmentalize things and focus on the conversation you are having.” i.e. build six compartments in your mind, keep things in them, and focus on your conversation. It doesn’t matter if you are losing a million dollars on that deal, a war is breaking out, and your mother is ill; you have to focus and be present as a leader.
Middle Class
Innovation spurs changes, good and bad. During the Ford Motor/GM auto manufacturing height, revenue was the same as it is in the new technology boom. The auto industry employed 1 million Americans, tech employs 135,000. Over 50% of what humans do can be replaced by robots and technology. Those at the top are doing well, those in the middle struggling to prove their worth, and those at the bottom growing to serve the top; the trend is unsettling.
Sustainability
When GM started, companies had a life expectancy of 90 years; companies today last, on average, 18 years.
It took decades to build a telephone system, a year to build Facebook, and four months to build China’s largest and most used “app.” The future of your business depends on being innovative, embracing change, and looking at the global market for signals
Strategy
“Being good at strategy requires one to look out of a periscope and microscope at the same time; it will make you sick.” Big picture thinking is about the near and far.
Education
The future of education will lie in people having to work and go to school at the same time; he was impressed by the dedication of our Executive MBA co-hort, working full-time and going to school for four hours at night after work.
China
250,000 people move into cities each day. Urbanization is the trend as is high density development. Look for ties to China and a way to do business; this market presents the largest opportunities in business, long term.
Travel
He has been all over the world and enjoys each country; there are no favorites.
In Summary, strategic thinking requires one to embrace the world we are in, look out to the world around, not be afraid of change, and use your short and long term perspective to shape the outcomes of your company in a global economy.
