Reading Insights: McKinsey Quarterly 2025 #1

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Welcome to my ‘Reading Insights‘ series. Here, is where I share simple takeaways and personal thoughts from articles, papers, and other readings that called my attention.

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And what are we reading today?

Today we will talk about the: McKinsey Quarterly 2025 Issue 1

McKinsey Quarterly is a business and management publication by McKinsey & Company, known for its deep insights into leadership, strategy, innovation, and global economic trends. Each McKinsey Quarterly issue features research-backed articles that help executives, managers, and decision-makers navigate complex challenges and drive meaningful change in their organizations.

The McKinsey Quarterly – 2025 #1 issue focuses on what it really takes to lead in this new reality. From building stronger teams to adapting to rapid change, these articles explore how leaders can grow, make better decisions, and create workplaces where people—and businesses—can thrive.

What makes this issue stand out is its focus on the human side of leadership. It’s not just about strategy and execution; it’s about trust, adaptability, and knowing how to bring out the best in people.

The Art of 21st-Century Leadership: From Succession Planning to Building a Leadership Factory – Bob Sternfels, Daniel Pacthod, Kurt Strovink, and Wyman Howard
Warning: Upgrade Your Personal Operating Model – Arne Gast with Suchita Prasad
The CEO’s Essential Checklist: Questions Every Chief Executive Should Be Able to Answer – Carolyn Dewar, Kurt Strovink, Scott Keller, and Vikram Malhotra
Go, Teams: When Teams Get Healthier, the Whole Organization Benefits – Aaron De Smet, Gemma D’Auria, Liesje Meijknecht, and Maitham Albaharna
Developing a Resilient, Adaptable Workforce for an Uncertain Future – Jacqueline Brassey, Aaron De Smet, Dana Maor, with Sheida Rabipour
How Leaders Can Tap the Power of Vulnerability – Dana Maor, Hans-Werner Kaas, Kurt Strovink, and Ramesh Srinivasan
Building a Superpower: What Can We Learn from the Magnificent Seven? – Brad Mendelson, Harald Fanderl, Homayoun Hatami, and Liz Hilton Segel
Racing to Forge a New World of Work – Anu Madgavkar, Eric Hazan, Kweilin Ellingrud, and Olivia White

The Art of 21st-Century Leadership: From Succession Planning to Building a Leadership Factory

By Bob Sternfels, Daniel Pacthod, Kurt Strovink, and Wyman Howard

👉 The Big Idea: Leadership today isn’t just about making big decisions—it’s about building the kind of leaders who can thrive in uncertainty. According to this McKinsey Quarterly issue, the best companies don’t just hope great leaders emerge; they create a system that develops them.

📌 The Summary: Leading a company today is tougher than ever. CEOs used to juggle four or five major challenges at a time—now, they’re dealing with twice as many, from AI disruptions to shifting workforce expectations. The leaders who succeed aren’t just the smartest in the room; they have grit, humility, and the ability to keep learning. More importantly, they don’t just lead—they build the next generation of leaders.

That’s where the idea of a leadership factory comes in. Instead of leaving leadership development to chance, top companies like Microsoft, GE, and P&G have built structured systems to train, mentor, and grow talent. These systems don’t just teach leadership skills; they create a culture where people step up, take ownership, and keep the company strong through change. The best leaders today don’t focus only on results—they focus on developing people who can deliver results long after they’re gone.

💡 Key Takeaways:
✔ Leadership today is about adaptability, resilience, and continuous learning.
✔ Great companies don’t wait for leaders to emerge—they actively develop them.
✔ A leadership factory creates a steady pipeline of strong managers ready to step up.
✔ The best leaders don’t just drive results—they build teams that can thrive in the future.

Warning: Upgrade Your Personal Operating Model

By Arne Gast with Suchita Prasad

👉 The Big Idea: Just like your phone or computer needs updates to stay efficient, leaders need to upgrade their personal operating model—how they manage priorities, time, energy, and roles—to stay effective and avoid burnout.

📌 The Summary: Leadership today is more demanding than ever, and without regularly reassessing how they work, leaders risk becoming overwhelmed and ineffective. The best leaders treat their schedules, energy, and focus like a system that needs continuous improvement. The key is to be intentional about what you prioritize, how you spend your time, and where you invest your energy. Without making these adjustments, leaders fall into the trap of reacting instead of leading.

The article highlights four key areas leaders must refine: priorities, to focus only on what truly matters; roles, ensuring they spend time on what only they can do; time management, designing a schedule that balances strategy with execution; and energy, making space for health, relationships, and purpose. Leaders who actively shape their personal operating model—rather than letting habits and routines control them—are not only more productive but also more effective in driving change and inspiring their teams.

💡 Key Takeaways:
✔ Leaders need to proactively update how they manage their time, energy, and focus.
✔ A strong personal operating model ensures they work on what truly matters.
✔ The best leaders protect their time, delegate wisely, and set boundaries.
✔ Sustainable leadership requires prioritizing health, relationships, and purpose.

The CEO’s Essential Checklist: Questions Every Chief Executive Should Be Able to Answer

By Carolyn Dewar, Kurt Strovink, Scott Keller, and Vikram Malhotra

👉 The Big Idea: Great CEOs don’t rely on gut feeling alone—they use a structured set of questions to guide their decisions and stay focused on what really matters.

📌 The Summary: Leading a company is like piloting a plane—staying aware of the business landscape is crucial, but so is constantly checking internal systems. Yet, many CEOs lack a structured way to evaluate their own leadership. Based on insights from top executives, this article presents a checklist of 18 essential questions that great CEOs should regularly ask themselves. These questions cover six key areas: setting direction, aligning the organization, mobilizing leaders, engaging the board, connecting with stakeholders, and managing personal effectiveness.

Successful CEOs don’t just measure performance through financial reports; they actively assess whether their vision is clear, their teams are aligned, and their leadership style is working. The best leaders also know that “soft” factors like culture and teamwork are just as critical as strategy and execution. By using this checklist, executives can make sure they’re focusing on the right things—like building a strong leadership pipeline, fostering agility in their teams, and ensuring they have the energy and perspective to lead effectively.

💡 Key Takeaways:
✔ The best CEOs constantly assess their leadership using structured questions.
✔ A great leader must focus on vision, strategy, talent, culture, and execution.
✔ Leadership is not just about decisions—it’s about building a system that works.
✔ Soft skills like trust, transparency, and energy management are just as important as hard strategies.

Go, Teams: When Teams Get Healthier, the Whole Organization Benefits

By Aaron De Smet, Gemma D’Auria, Liesje Meijknecht, and Maitham Albaharna

👉 The Big Idea: Teams don’t just “click” because of individual talent or leadership—high-performing teams succeed because they cultivate trust, clear roles, and strong collaboration.

📌 The Summary: Great teams don’t just happen; they are built. Many companies assume that throwing top talent together will lead to high performance, but research shows that’s not enough. Teams thrive when they have clear goals, trust, effective communication, and the right mix of perspectives—not just individual stars. A team full of “superstars” can actually underperform if they don’t work well together.

The article debunks myths about team effectiveness and introduces four key areas that drive success: configuration (clear roles and diverse perspectives), alignment (shared goals and commitment), execution (good collaboration and decision-making), and renewal (psychological safety and innovation). The best teams focus on these elements rather than relying on chemistry or a single strong leader. Companies that actively invest in team health across all levels—not just leadership teams—see better financial and operational results.

💡 Key Takeaways:
✔ A team of top performers isn’t always a great team—collaboration matters more.
✔ Trust, communication, and clear roles drive high performance.
✔ Strong teams don’t just focus on today—they invest in long-term effectiveness.
✔ Companies that prioritize team health outperform their competitors.

Racing to Forge a New World of Work

By Anu Madgavkar, Eric Hazan, Kweilin Ellingrud, and Olivia White

👉 The Big Idea: The future of work is changing faster than ever—companies that adapt quickly will thrive, while those that resist transformation will fall behind.

📌 The Summary: Workplaces today are being reshaped by AI, automation, and shifting workforce expectations. Companies can no longer afford to treat digital transformation as a side project; it must be embedded in everything they do. The key challenge? According to this article from McKinsey Quarterly, many businesses are struggling to keep up with the pace of change, especially when it comes to reskilling employees and redesigning work structures.

The article highlights that flexibility, lifelong learning, and a people-first approach are critical for success. Leading organizations are investing in upskilling, redesigning roles, and embracing hybrid work models to stay ahead. Meanwhile, companies stuck in rigid hierarchies and outdated processes risk losing talent and relevance. The future belongs to organizations that see change not as a disruption but as an opportunity to innovate and grow.

💡 Key Takeaways:
✔ The way we work is evolving—companies must adapt or risk being left behind.
✔ Investing in employee reskilling is essential for staying competitive.
✔ Flexible work models and digital-first strategies are the future.
✔ Businesses that embrace change will attract top talent and thrive.

Building a Superpower: What Can We Learn from the Magnificent Seven?

By Brad Mendelson, Harald Fanderl, Homayoun Hatami, and Liz Hilton Segel

👉 The Big Idea: The world’s top-performing companies—like Amazon, Apple, and Nvidia—win because they build unique capabilities that give them a lasting edge.

📌 The Summary: What makes the Magnificent Seven (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, Tesla) so dominant? According to this article from McKinsey Quarterly, it’s not just great products—it’s the superpowers they’ve built: a unique combination of people, technology, and processes that competitors can’t easily replicate.

The article introduces the VECTOR framework—six key elements that help companies develop these superpowers: Vision, Employees, Culture, Technology, Organization, and Routines. Companies that invest deeply in these areas build advantages that set them apart for the long haul. The key lesson? Sustained success isn’t about chasing trends—it’s about building lasting strengths that create value over time.

💡 Key Takeaways:
✔ Top companies build unique strengths that make them hard to compete with.
✔ Vision, culture, and talent development are as important as innovation.
✔ Long-term success comes from building systems that scale, not short-term wins.
✔ Companies that master adaptability will continue to dominate their industries.

How Leaders Can Tap the Power of Vulnerability

By Dana Maor, Hans-Werner Kaas, Kurt Strovink, and Ramesh Srinivasan

👉 The Big Idea: The best leaders aren’t the ones who pretend to have all the answers—they’re the ones who show vulnerability, build trust, and foster genuine connections.

📌 The Summary: For years, leadership was about projecting confidence and strength. But today, according to this artile from McKinsey Quarterly, the best leaders are the ones who embrace authenticity, humility, and emotional intelligence. Vulnerability isn’t weakness—it’s a superpower that builds trust, deepens relationships, and makes leaders more effective.

The article explains how leaders can shift from proving themselves to improving themselves. By being open about challenges, listening more, and creating psychological safety, they empower their teams and drive better results. The leaders who succeed in today’s workplace aren’t those who act invincible—they’re the ones who create environments where people feel safe to take risks, share ideas, and grow together.

💡 Key Takeaways:
✔ Vulnerability builds trust and stronger teams.
✔ The best leaders listen, admit mistakes, and focus on learning.
✔ Authenticity makes leadership more relatable and impactful.
✔ Creating psychological safety leads to innovation and engagement.

At the heart of this McKinsey Quarterly issue is a simple truth: leadership today is about learning, adapting, and helping others succeed.

The most effective leaders aren’t the ones with all the answers—they’re the ones who ask the right questions, build strong teams, and create environments where people feel safe to take risks and grow.

The insights in this McKinsey Quarterly issue offer a roadmap for leading with impact, not just today, but in the years ahead.

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