Mckinsey aftermarket. 1Q 2022, % 1Q 2023 outstandings growth vs.

Victor Vroom’s classic research on expectancy theory explained how the tendency to behave in certain ways depends on the expectation that the effort will result in the desired kind of performance, that this performance will be rewarded, and that the reward will be desirable. 1Q 2022, % 1Q 2023 outstandings growth vs. So, the challenge—and the potential—of manager selection remains paramount for institutional investors. We are passionate and curious about the emerging opportunities in mobility. Feb 12, 2021 · Some 33 percent of consumers in Europe and 41 percent in the United States say they have begun or increased their usage of online streaming channels this year. While right now, due to concerns with long-term battery performance, EVs depreciate more quickly, in our view, EVs in the long run will likely depreciate in value more slowly than ICE vehicles and have longer life spans, which should improve their residual value. Aug 10, 2022 · Among the most sharply debated questions about environmental, social, and governance (ESG) is the extent to which ESG, as measured by ratings, can offer meaningful insights about future financial or TSR performance—particularly when ratings and scores providers use different, and sometimes mutually inconsistent, methodologies. Explore a career with us. 5 5. People quickly develop new skills and skill depth: we have found that 40 to 60 percent of an employee’s human-capital value (knowledge, attributes, skills, and experience) can be attributed to skills acquired through work experience. Mar 1, 2008 · In this interactive presentation—one in a series of multimedia frameworks—Lowell Bryan, a director in McKinsey's New York office, examines 7-S, a framework introduced to address the critical role of coordination, rather than structure, in organizational effectiveness. This article, drawn from the Jan 16, 2019 · Even with trade tensions and tariffs dominating the headlines, important structural changes in the nature of globalization have gone largely unnoticed. Other industries have learned how aftermarket services can be a critical component of the sales mix, with the potential to accelerate revenue growth, improve profit margins, and strengthen customer relationships—all without a significant investment in capital expenditures. PE outperformed its public market equivalents (PME) by most measures over the past decade. Their employees report higher job satisfaction and are 1. 1Q 2022 Sep 23, 2021 · Finally, it remains to be seen how profitable used electric cars will be. For almost a decade through our Diversity Matters series of reports, McKinsey has delivered a comprehensive global Oct 27, 2016 · Capturing the value is a journey that can be started right away. Business reinvention involves pursuing an ambitious and significant shift in a company’s core operating model, portfolio, strategic moves, and The global market for Automotive Aftermarket estimated at US$462. It offers readers insights into value-creating strategies and the translation of those strategies into company performance. 2 Jennifer A. Organizations that link employee goals to business priorities, invest in managers’ capabilities, and differentiate rewards for the extremes of performance are 84 percent more likely to have performance-management approaches Indian aftermarket will maintain a robust growth trajectory The Indian aftermarket is likely to maintain its robust growth trajectory over the next severa l years. Feb 8, 2024 · McKinsey's 'unsatisfactory' performance warning for 3,000 workers is the latest bad news for big consulting companies. Oct 1, 2010 · Indeed, only one-quarter of the respondents to a recent McKinsey survey said their training programs measurably improved business performance, and most companies don’t even bother to track the returns they get on their investments in training. This performance is even more remarkable considering that VMT, a key driver of the aftermarket, fell by 2. Large companies, such as Boeing, Walmart, and IBM have signed on to the Rework America Alliance, 6 “Rework America Alliance,” Markle, accessed October 2022. 2 McKinsey & Company COVID-19 Europe Consumer Pulse Survey 6/18–6/21/2020, n = 5,645, across Italy, France, Germany, Spain, UK, and Portugal, sampled and weighted to match European Feb 12, 2020 · Most executives and the investment professionals who scrutinize their companies seem to agree that ESG programs affect performance. Mar 3, 2023 · The newest aftermarket frontier features the robust use of modern technological developments such as advanced sensors, big data, and artificial intelligence to offer predictive maintenance services, manufacturing consulting, and dramatic productivity boosts. May 1, 2020 · The car parc is the aftermarket’s core performance driver each year, accounting for about 45 to 50 percent of its growth. ” 6 Daniel Kahneman, Thinking, Fast and Slow, New York, NY: Farrar, Straus and Giroux, 2011. Feb 2, 2023 · P+P Winners are also talent magnets, with attrition rates almost five percentage points lower than those of Performance-Driven Companies. Sources of aftermarket revenue include the following: Jun 28, 2024 · This white paper brings together the best of McKinsey’s published thinking on OEMs’ aftermarket and service, with a focus on B2B companies. By improving their approach to aftermarket services, companies can capitalize on their existing portfolio and installed base, along with existing account data, to segment customers and focus resources on the most attractive leads. 3 2. From software and spare parts to additional services and extended-warranty programs, these industrial aftermarket opportunities potentially represent billions of dollars in unlocked revenues in many industries. McKinsey estimates the aftermarket value in 2017 to be approximately EUR 800 billion. In one of Nobel Prize–winning psychologist Daniel Kahneman’s experiments, a grocery store put Campbell Soup products on sale for 79 cents with a sign above the display that read “limit 12 per customer. Sep 8, 2021 · Aaron De Smet is a senior partner in McKinsey’s New Jersey office, Bonnie Dowling is an associate partner in the Denver office, Marino Mugayar-Baldocchi is a research science specialist in the New York office, and Bill Schaninger is a senior partner in the Philadelphia office. Jan 24, 2019 · By improving their approach to aftermarket services, companies can capitalize on their existing portfolio and installed base, along with existing account data, to segment customers and focus resources on the most attractive leads. First, at the top of the organization, adopt an analytical approach to design by measuring and leading your company’s performance in this area with the same rigor the company devotes to revenues and costs. While fundraising and investment performance declined, the industry’s growth held reasonably steady, with assets under management increasing to $11. In the next years, ten trends—in three broad categories—will fundamentally change the industry (Exhibit 1). Feb 17, 2022 · Growth in aftermarket products and services remains one of the most significant untapped revenue streams for industrial-equipment companies. A close look at revenues uncovers structural changes, including new developments in instant payments and digital wallets. Source: McKinsey Aftermarket ifetime alue Benchmarking database 20–50 18 Nov 17, 2017 · For all the effort that companies devote to improving the performance of their supply chains, relatively few have unlocked the full potential of digital technologies. Less than a year after many of these tools debuted, one-third of our survey respondents say their organizations are using gen AI regularly in at least one business function. Will parts distributors take over from automotive suppliers—or will automakers change the rule of the game? Or will we see a balanced, digital aftermarket world, maybe even driven by the suppliers? Jan 22, 2018 · For instance, nearly one-quarter of performance units are agile. 2024-02-08T21:15:37Z Feb 12, 2024 · And that performance advantage increases over time. 20 percent for used cars, but the aftermarket experienced only a 1 percent decline (Exhibit 1). 3 McKinsey Health Institute Employee Mental Health and Wellbeing Survey, 2022: n (employee) = 14,509; n (HR decision maker) = 1,389. 0 tools to shape the An aerospace player wanted to become the top aftermarket services provider in its sector but knew little about the installed base. Our analysis indicates that the parts aftermarket will grow from about INR 28,000 crores in FY#2012, to INR 36,000 to 37,000 crore by FY#2015, at 9 to 11 per cent CAGR annually. Top Videos Watch some of our most interesting videos, including early-career advice from My Rookie Moment , a lens on the future of work, and more. Nov 15, 2022 · More employers are starting to embrace skills-based hiring practices. We helped design and drive a five-year change program that moved organizational health scores into the top quartile and allowed the company to hire more than 10,000 new employees. Jørn Jensen, former group CFO of Dyson, is a senior adviser to McKinsey. Aug 14, 2020 · Aftermarket services have many compelling characteristics that have caught the attention of industrial-equipment players all over the world. The model represents values at the end-customer price level, Apr 25, 2019 · To understand the OEM-customer decision journey in the aftermarket, McKinsey and AEM recently teamed up again to survey almost 1,300 contractors and farmers across the United States about how OEMs can better meet their needs. A mere 2 percent of the Apr 11, 2016 · Money isn’t the only motivator, of course. May 19, 2020 · The Automotive & Assembly Practice at McKinsey & Company assessed previous crises to quantify performance indicators during a financial downturn. Sep 1, 2015 · The use of each action correlates similarly with a transformation’s overall success, defined as the successful improvement of company performance (improved profitability, for example) and preparation for sustained, long-term performance (improved capabilities, for example, or positive changes in organizational culture). 10 The growth outlook for the aftermarket is stable, although the market structure will change significantly Market size and the global growth outlook McKinsey’s proprietary modeling of the automotive aftermarket was developed to project growth of the global industry. 3 times more likely to move into higher lifetime earnings brackets than employees of Performance-Driven Companies. Indian aftermarket will maintain a robust growth trajectory The Indian aftermarket is likely to maintain its robust growth trajectory over the next severa l years. The McKinsey digital walk-through helps companies appreciate the current digital maturity of the organization, create a sound understanding of the required levers to pull to reach the next performance level leveraging Supply Chain 4. They seek out granular information about how Aug 2, 2021 · And the rewards are worth the effort: companies with strong cultures that emphasize adaptability turn in better financial performance than entities that lack those attributes, research shows. 5 trillion market in 2030 Today Traditional automotive revenues Vehicle sales dominant 2. 1 aftermarket starts with recognizing what’s unique about it, and then transforming the sales team’s approach to adapt to that unique environment. 2 Nov 10, 2020 · The COVID-19 crisis has jolted aftermarket services decisively toward the digital realm. 15 Surveyed countries were Brazil, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, South Africa, Spain, United Kingdom, and the United States. McKinsey partners Bryan Hancock and Brooke Weddle lead discussions with talent experts on transformational change and leadership development. Jul 25, 2023 · Respondents also pointed to different lines of business within the aftermarket as sources of attractive M&A targets. Oct 25, 2018 · The McKinsey Design Index highlights four key areas of action companies must take to join the top quartile of design performers. New car sales expand the parc by 6 to 10 percent each year, depending on region, and COVID-19 will cause disruption to this inflow. Sep 7, 2017 · Healthy companies, we know, dramatically outperform their peers. This Jul 31, 2024 · McKinsey on Finance is a quarterly publication written by corporate finance experts and practitioners at McKinsey. This report explores the industry’s likely evolution, identifies key growth opportunities, and highlights ways to sustain profitability. Mar 12, 2024 · The McKinsey Center for Future Mobility brings together cross-functional expertise to deliver leading-edge insight to help shape the future of mobility-related industries and the public sector. OEMs, suppliers, and all other aftermarket players need to recognize these changes and begin to address them immediately. For decades, the industry has been an important contributor to Europe’s economic growth, innovation, and prosperity, accounting for almost 7 percent of the region’s GDP and being directly or indirectly responsible for employing almost 14 million people. When we examined the 12 key trends shaping the automotive sector, we found that four changes related to technology are likely to have a great and enduring effect on the automotive aftermarket, leading to shifts in demand that will vary in size and direction across all defined categories of automotive components: May 27, 2022 · Many employers have responded by investing more into mental health and well-being than ever before. In nine of 13 major countries surveyed by McKinsey, at least two-thirds of consumers say they have tried new kinds of shopping. The business case for gender equality, diversity, and inclusion is strong and growing stronger. The automotive industry is a jewel of the European economy. These scenarios sketch a range of outcomes based on varying underlying assumptions—for example, about the pace of Feb 14, 2019 · Instead, growing aftermarket starts with recognizing what’s unique about it, and then transforming the sales team’s approach to adapt to that unique environment. Our latest report shows not only that the business case remains robust but also that the relationship between diversity on executive teams and the likelihood of Jan 23, 2019 · Aftermarket parts could become as important as financing was 20 years ago, with captive OEM brands retaining warranty-related market share while dealers increasingly access the independent aftermarket and their own in-house white-label brands to lure off-warranty customers to replace declining used-car profits. 3 Billion in the year 2022, is projected to reach a revised size of US$641. OEMs know their installed base (unless they Sep 27, 2023 · Across performance dimensions ranging from cost and cash to carbon control and social impact, external spend plays a crucial role. Indeed, our research suggests that digitally enabled self-service options and remote interactions with service technicians will become standard. May 26, 2023 · Survey respondents who report that their organizations have both created financial value and increased broader impact from ESG—the two conditions for what we call “ESG momentum” 4 These organizations leading on ESG dimensions are ones that, according to respondents, have somewhat or significantly improved their ESG performance over the past three years, significantly better ESG Jan 8, 2024 · In the McKinsey Mobility Consumer Pulse survey, 55 percent of Chinese respondents and 57 percent of BEV customers were willing to change automotive brands to get better connectivity. 1 2030 Sep 15, 2023 · Long-term-minded investors—whom we call “intrinsic investors”—have an outsize effect on stock performance over time. Nov 29, 2023 · Against this backdrop, businesses will be challenged to identify pockets of value and unlock new drivers of performance. 6 Human capital can be McKinsey estimates the aftermarket value in 2017 to be approximately EUR 800 billion. Recent examples include developing insights on technological disruptions through our McKinsey Center for Future Mobility (in areas such as autonomous driving, connectivity, electrification, and shared mobility), investigating how automotive suppliers can benefit from arising opportunities in the aftermarket business, or quantifying major trends Mar 31, 2023 · The industry is already in the process of replacing steel clamshell designs with aluminum-casted subframes—mostly relevant for higher-performance segments due to the cost. , “Parsing organizational culture: How the norm for adaptability influences the relationship between culture consensus and Jul 10, 2019 · In Beyond Performance 2. 8 Jan 1, 2015 · McKinsey has been examining diversity in the workplace for several years. 1 In the autumn of 2018, we surveyed nearly 1,300 US businesses, split between construction customers (or “contractors Aug 8, 2024 · More than two decades of McKinsey research shows that organizational health remains the top indicator of a company’s long-term success and sustained performance. 4 percent over the same period. From AI transformations to a manufacturing Aug 31, 2023 · McKinsey’s commitment to excellence is underpinned by its approach to reviewing the performance of its consultants regularly. Doing so can validate ideas for new customer experience features that emerge from employee ideas or customer feedback, such as a simplified configurator and order experience, one-click service-appointment making, or 24/7 vehicle drop-off or pickup at dealerships. Aug 7, 2024 · A recent McKinsey Global Survey reveals that employees are far ahead of their organizations in using gen AI, 1 The online survey was in the field from February 27 to March 8, 2024, and garnered responses from 592 participants representing the full range of regions, industries, company sizes, functional specialties, and tenures. Higher call volumes and more complex calls are challenging existing capacity—61 percent of surveyed care leaders report a growth in total calls, with increased contacts per customer and a growing customer base as the key drivers. Our latest report, Diversity Matters, examined proprietary data sets for 366 public companies across a range of industries in Canada, Latin America, the United Kingdom, and the United States. Apr 26, 2023 · Business leaders around the world are currently addressing not only economic volatility, geopolitical instability, and the lingering effects of the COVID-19 pandemic but also a range of organizational shifts that have significant implications for structures, processes, and people. Jan 11, 2012 · The Indian automotive aftermarket has experienced rapid growth, but margins are under pressure and new competitors are entering the industry. 1 The research for this report was jointly conducted by McKinsey’s Business Technology Office, the McKinsey Global Institute, and the public sector practice, which incorporates the McKinsey Center for Government. Jan 24, 2019 · In contrast, growth through aftermarket services offers a comparatively short and straight path to new revenue streams. Feb 28, 2024 · This book is the first-ever explanation of McKinsey’s step-by-step approach to transforming leaders both professionally and personally, including revealing lessons from its legendary CEO leadership program, “The Bower Forum,” which has counseled five-hundred-plus global CEOs over the past decade. Consequently, chief procurement officers (CPOs) who have successfully navigated uncertainty in recent years have become indispensable partners to the executive suite. 7 MB), the McKinsey Global Institute analyzes the dynamics of global value chains and finds structural shifts that have been hiding in plain sight. He is a member of the National Petroleum Council and works with client executive teams across a variety of strategic, growth, organizational, operations, performance transformation, advanced analytics and energy transition topics Mar 22, 2021 · Enhance performance management. Tools such as our McKinsey Value Intelligence offer detailed financial metrics for more than 55,000 companies across the globe, covering 90 percent of the total market capitalization of the world's companies. When we disaggregated the aftermarket into component categories, we found the most significant declines Feb 8, 2024 · McKinsey & Co. 0 (John Wiley & Sons, 2019), McKinsey senior partners Scott Keller and Bill Schaninger draw on their 40-plus years of combined experience, and on the most comprehensive research effort of its kind, to provide a practical and proven “how to” guide for leading successful large-scale change. 6 “Chemicals and capital markets: Growing sustainably,” McKinsey Sep 1, 2008 · In this interactive presentation—one in a series of multimedia frameworks—McKinsey alumnus Kevin Coyne describes the GE–McKinsey nine-box matrix, a framework that offers a systematic approach for the multibusiness corporation to prioritize its investments among its business units. Appoint a “bias monitor” to keep performance evaluations and promotions discussions focused on the core criteria for the job and surface potentially biased decision making. Sep 18, 2023 · The payments industry’s 2022 performance shows ongoing change with opportunities for growth and margin improvement across geographies and products. The findings from our surveys help business leaders to understand best practices, compare their companies’ ways of working and performance with a Oct 29, 2018 · In a new McKinsey Global Survey on digital transformations, more than eight in ten respondents say their organizations have undertaken such efforts in the past five years. Across the globe, four in five HR leaders report that mental health and well-being is a top priority for their organization. Jul 27, 2017 · OEMs may find untapped goldmines in aftermarket services by strengthening their core business in parts, repair, and maintenance. This will reduce design and manufacturing complexity and facilitate the integration of linkage to other components in the casting. 7T in 2030 due to rapid technology gains in vehicles. 1 12. Manage cross-functional collaboration with senior leadership support. Our research reveals that aftermarket sales can drive as much as 65 percent of company-wide gross margins, especially in high-wear applications (Exhibit 3). Aug 31, 2023 · Introduction. May 25, 2023 · Take an outsider’s perspective. The proof is strong—the top quartile of publicly traded companies in McKinsey’s Organizational Health Index (OHI) delivers roughly three times the returns to shareholders as those in the bottom quartile—so strong, indeed, that we’ve almost come to take it for granted. Elements of aftermarket lifetime value may vary by industry. 6 Aug 31, 2023 · Since 2004, McKinsey Global Publishing’s survey team has polled our panel of thousands of executives and managers to generate new and distinctive insights on today’s critical business topics. Our analysis shows that aerospace executives were about 18 times more likely to mention supply-chain-related terms, such as “shortages,” during earnings We help organizations maximize performance through the power of a diverse, equitable, and inclusive workforce. According to our research, organizational health is the strongest predictor of value creation and a critical factor in sustained competitive advantage. This collection examines the barriers that prevent companies from addressing gender and racial equality and identifies solutions for building a stronger, more inclusive workforce. In our latest McKinsey Global Survey on valuing ESG programs, 2 The online survey was in the field from July 16 to July 31, 2019, and garnered responses from 558 participants representing the full range of regions McKinsey estimates the aftermarket value in 2017 to be approximately EUR 800 billion. a. McKinsey, and Marvin Bower, managing director from 1950 to 1967, who was a major force in shaping the firm. However, while less than ten percent of respondents have completed an agility transformation at the company or performance-unit level, most companies have much higher aspirations for the future. According to McKinsey senior partner Arne Gast and coauthors, healthy organizations exhibit four foundational behaviors, among them a clear plan to execute their vision and strategy Jan 28, 2022 · Neil Assur is an associate partner in McKinsey’s Philadelphia office and Kayvaun Rowshankish is a partner in the New York office. 1 “Automotive industry,” Directorate-General for Internal May 4, 2023 · This is how they will begin to embrace and adopt new mindsets, capabilities, and practices individually; to cocreate and implement new leadership role definitions, career paths, incentives, and performance management focused on working as a network of leadership teams; and to reimagine their businesses, organizations, and ecosystems to unlock Sep 11, 2023 · We surveyed 15,366 workers in seven countries (Australia, Canada, Germany, India, Singapore, the United Kingdom, and the United States) from November 2022 to January 2023 about their job satisfaction, commitment, well-being, and self-reported performance, sorting them into groups by their postpandemic working model (mostly in-person, hybrid, or mostly remote). ” SOURCE: McKinsey The automotive revenue pool will grow and diversify with new services potentially becoming a ~USD 1. Improve the customer experience. Jan 4, 2021 · Pandemic-induced changes in shopping behavior forever alter consumer businesses. The emergence of majority-millennial workforces has led to a profound shift in employee preferences. Apr 3, 2024 · Their views on supply chain performance also showed a dramatic negative shift starting in 2020 (see sidebar, “Growing supply chain concerns among commercial-aerospace executives”). Sep 14, 2021 · The aftermarket can provide margin growth even under challenging economic conditions. . Mar 28, 2024 · According to McKinsey’s latest Global Private Markets Review, private markets entered a slower era in 2023, with macroeconomic headwinds, rising financing costs and an uncertain growth outlook weighing on fundraising, deal activity and performance. A global auto manufacturer was experiencing lagging performance and job losses while adjusting to new ownership. Mar 3, 2023 · The organizations that prioritize people development become talent magnets for employees who want to build their knowledge and networks. Apr 8, 2021 · Done well, it can help companies capture up to 15 more percentage points in EBITDA growth than their peers. 1 2030 The more you can connect purpose to recruiting, onboarding, and performance management, the more likely the benefits will build upon one another. When centered at the heart of work, purpose helps people navigate uncertainty, inspires commitment, and even reveals untapped market potential. Variability in performance remains substantial, however (Exhibit 2). May 31, 2024 · Listen in to learn how to navigate a fast-changing landscape and prepare for the future of work by turning talent into competitive advantage. 6 2. McKinsey is fiercely committed to upholding its values. 4% p. Jul 28, 2023 · Holistic performance is measured along five dimensions that reflect organizational priorities: financial performance, organizational health, talent and capabilities, customer focus, and ESG impact. Aug 9, 2023 · A recent McKinsey analysis, for example, shows that chemical players with low-carbon product portfolios or high exposure to end markets supporting sustainability grew their shareholder returns at more than double the rate of sustainability laggards between 2016 and 2021. 2 Average value. Despite COVID-19, however, the aftermarket and services sector has begun to attract a growing set of digital-native attackers, crowding the competitive landscape and making already convoluted channels even more complex. financial performance 2. Based on research into how companies sustain growth, this approach illustrates how to manage for current performance while maximizing future opportunities for growth. The model represents values at the end-customer price level, May 19, 2020 · Diversity wins is the third report in a McKinsey series investigating the business case for diversity, following Why diversity matters (2015) and Delivering through diversity (2018). Sep 21, 2022 · Until a few years ago, many aerospace and defense (A&D) companies treated the aftermarket as an afterthought. 1 Alex Camp, Arne Gast, Drew Goldstein, and Brooke Weddle, “ Organizational health is (still) the key to long-term performance,” McKinsey, February 12, 2024. To further participate in this Oct 18, 2023 · The Global Energy Perspective 2023 explores the outlook for demand and supply of energy commodities across a 1. Feb 28, 2024 · In this episode of McKinsey Talks Talent, Jamil joins McKinsey talent leaders Bryan Hancock and Brooke Weddle, with global editorial director Lucia Rahilly, to make the case for investing in empathic behavior—for reasons including higher productivity, a stronger workplace culture, and better organizational health—as well as to discuss how Oct 1, 2013 · It may also generate significant economic value, according to a new McKinsey report. 3,500 USD billions New automotive revenues, 2030 Recurring revenues significantly increasing Jul 11, 2017 · The automotive aftermarket is set to grow at 3 percent a year through 2030—but competition will become even more intense in the future. The study finds that the automotive aftermarket is undergoing dramatic changes with evolving customer expectations, acceleration of technological innovation, and shifts in competitive power. Large shares of respondents to a recent McKinsey Global Survey on the topic say their organizations’ current systems and practices have no effect—or even a negative one—on company performance. Our values reflect the thinking of our founder, James O. Lakshmi Varanasi. Oct 4, 2017 · Organizations that get performance management right become formidable competitive machines. The result is improved financial performance that sustains the company through the larger, long-term bets it makes. but they always want to dig deeper. 2 “Where companies with a long-term view outperform their peers,” McKinsey Global Institute, February 8, 2017. In Globalization in transition: The future of trade and value chains (PDF –3. Jun 27, 2024 · Sven Smit is the chair of the McKinsey Global Institute, the chair of McKinsey insights and ecosystems, and a senior partner in McKinsey’s Amsterdam office; Jeffrey Condon is a senior knowledge expert in the Atlanta office; and Krzysztof Kwiatkowski is a capabilities and insights expert in the Boston office. Three Visualize company benchmarking in minutes via curated insights on financial, operational and organizational performance. Article - MGI Research COVID-19 and gender equality: Countering the regressive effects The McKinsey Design Index (MDI) online tool allows leaders to assess their company’s design performance in under an hour, benchmark it with over 300 other companies, and estimate the value-at-stake through improvement. 5° pathway (modelled as part of McKinsey’s Climate Math effort) and four bottom-up energy transition scenarios. Feb 16, 2023 · Global commercial property and casualty (P&C) lines have delivered strong financial performance in recent years following the soft market of 2013 to 2018, despite widespread disruption in the wake of the COVID-19 pandemic, the war in Ukraine, and the resulting supply chain disruptions. Source: McKinsey Aftermarket ifetime alue Benchmarking database 20–50 18 We are a values-driven organization. Aug 27, 2018 · The automotive aftermarket has a current business value of about €800. Here we’ve curated 22 of this year’s best data visualizations that have illuminated some of the key themes and trends covered in our publishing—inflation, geopolitical upheaval, evolving health priorities, inclusion, net zero, digital Mar 24, 2022 · Industry performance has been strong, but manager selection remains paramount. Aug 1, 2023 · The latest annual McKinsey Global Survey on the current state of AI confirms the explosive growth of generative AI (gen AI) tools. . 1× Others Analytics leaders1 5. Where it starts depends on the digital maturity of the current supply chain. Dec 9, 2022 · Our Charting the Path to the Next Normal series offers a daily chart that helps explain a changing world—as we strive for sustainable, inclusive growth. 1 The online survey was in the field from January 16, 2018, to January 26, 2018, and garnered responses from 1,793 participants representing the full range of regions Aug 6, 2019 · They can also use advanced analytics to sort through job reports and identify best practices that can then be standardized across the organization. Total gain: 10-30 percent gains in productivity. Better business performance for a better world—that’s how we think about impact. This Mar 7, 2019 · Automakers can also use existing data and selected dealerships to run this testing for selected vehicles. And they determine performance-management metrics and create action-oriented dashboards to better manage performance. Jul 8, 2022 · Customer care talent is increasingly scarce. These investors recognize that ESG will affect value, 2 “The triple play: Growth, profit, and sustainability,” McKinsey, August 9, 2023. 2% over the period 2022-2030. Our colleagues’ research confirms that margins for services can be several times higher than for new products: for large rotating equipment, for example, margins for new equipment average 8 percent, while those for services average 32 percent. 1 2030 Dec 5, 2023 · Diversity Matters Even More is the fourth report in a McKinsey series investigating the business case for diversity, following Why Diversity Matters (2015), Delivering Through Diversity (2018), and Diversity Wins (2020). Unique considerations for aftermarket sales In our work with industrial OEMs, we have identified seven unique elements of selling in the aftermarket: 1. Jul 19, 2023 · The US automotive retail and aftermarket landscape is changing quickly: customers are more likely to use digital buying channels; our analysis suggests that electric vehicles (EVs) could make up 40 to 50 percent of new-car sales by 2030; and new competitors are rapidly entering the market with disruptive strategies such as direct-to-consumer business models or dealer partnerships. 2 trillion by 2030. For instance, OEMs and intermediaries found remanufacturing the most attractive part of the industry, citing escalating regulatory requirements related to remanufacturing, the circular economy, the still-moderate level of competition, and other factors. 750 4. A company can create visibility around warranty data by closely tracking quality-improvement progress through cascaded KPIs (such as time to identify and time to fix), visual dashboards, and performance meetings. 7 trillion as of June 30, 2022 (Exhibit 2). Natural resources strategies, meanwhile, generated relatively strong performance for a second consecutive year, buoyed by elevated commodity prices. With proprietary tools, we measure inclusion with precision, providing insights into different experiences across employee groups. Those who do not meet the required standards are often asked to leave the firm under its ‘up or out’ policy. Dec 22, 2022 · The global COVID-19 pandemic and rapid evolution of workplace technology have accelerated the adoption of various alternative, hybrid working models—as well as new challenges in monitoring employee conduct and performance. 3 Lifetime penetration is a function of attach rate and share of lifetime under OEM service. Jan 5, 2024 · Neha Patel is a partner in McKinsey’s New York office, and Shubham Singhal is the global leader of McKinsey’s Social, Healthcare, and Public Entities (SHaPE) Practice in the Detroit office. Jun 15, 2020 · CFOs are especially skeptical regarding the output of existing approaches. Dec 1, 2009 · In this interactive presentation—one in a series of multimedia frameworks—Steve Coley, a director emeritus in McKinsey’s Chicago office, describes the three horizons framework. According to McKinsey’s analysis of fashion forecasts, the global industry will post top-line growth of 2 to 4 percent in 2024 (exhibit), with regional and country-level variations. In light of Co-leads our technology-enabled work globally across McKinsey’s Global Energy & Materials Practice. Much of GE’s successful transformation under former CEO Jack Welch, for instance, was attributed to his ability to get the company’s 250,000 or so employees “pulling in the same direction”—and pulling to the best of their individual abilities. Explore McKinsey’s perspective on markets and industries. For additional resources, please see the “Diversity, equity, and inclusion” section on the McKinsey Organization Blog. Premiums have been propelled by extensive year-on-year risk 10 The growth outlook for the aftermarket is stable, although the market structure will change significantly Market size and the global growth outlook McKinsey’s proprietary modeling of the automotive aftermarket was developed to project growth of the global industry. Drawing on the latest and most relevant news and trends and brought to life with real examples, this report aims to be a catalyst for new, energizing ideas. Jul 8, 2020 · McKinsey estimates the global automotive aftermarket to be worth $740B today, growing to $2. In our work with industrial OEMs, we have identified seven unique elements of selling in the aftermarket: McKinsey’s People & Organizational Performance Practice helps you create an organization and make the best of your people so you can realize your strategy today and sustain performance in the future. Typically most intra-industry variation is in lifetime penetration. the Business Roundtable’s Multiple Pathways program, 7 “Placing a greater emphasis on skills in hiring and advancement, improving equity and diversity in Jan 11, 2021 · McKinsey research finds that people who say they are “living their purpose” at work are four times more likely to report higher engagement levels than those who say they aren’t. Through our work, we have built expertise related to all major categories of platforms and associated equipment, including military aerospace, land systems, naval systems, space-based systems, as well as sensors and electronics. has warned about 3,000 of the firm’s consultants that their performance was unsatisfactory and will need to improve. 1 We used information from the McKinsey Mobility Consumer Pulse survey to supplement the findings from the more recent McKinsey Automotive Digital Services We’ve refined our distinctive method to improve cross-functional business performance, providing organizations with a tailored path to success, digital and tech-enabled tools, capability-building programs, and support from our industry-leading change delivery experts. Business in North America accounted for approximately 270 billion of global revenue, Europe was second at approximately EUR 240 billion, and business in China generated approximately EUR 90 billion (Exhibit 2). 2 McKinsey’s Commercial Capabilities Assessment Tool (CCAT) survey results for 11,837 respondents from 85 global B2B organizations indicate a positive relationship between performance-management capability scores and EBITDA CAGR with 99 Sep 5, 2023 · The 2023 Aftermarket Technology Conference will bring together key players from across the aftermarket ecosystem, including suppliers, distributors, retailers, and technology providers, fostering an environment of innovation and cooperation. A recent McKinsey study found that the average supply chain has a digitization level of 43 percent, the lowest of five business areas that were examined. Oct 5, 2023 · Send “bias” reminders before performance evaluations and promotion cycles, explaining how common biases can impact reviewers’ assessments. The authors wish to thank Shahed Al-Haque, Maciej Biernacki, Claudia Castelino, Zachary Greenberg, Scott Heim, Ankit Jain, Gaurav Kohli, and Siddharth May 17, 2021 · This article explores the dramatic transformations occurring in this segment. Apr 29, 2019 · The evidence is clear: a small number of priority practices make the difference between an effective and fair performance-management approach and one that falls short. Our new empirical approach to strategy offers you a bolder path to making big moves. A recent McKinsey Quarterly survey 2 McKinsey & Company 6 Growth in outstandings and purchase volume vary across issuers Source: Company reports, McKinsey Credit Card Issuer Performance Model (1Q 2023)-4 -2 0 2 4 6 8 10 12 14 16 24 14 16 18 20 22 10 26 8 6 12 24 18 20 22 Bank of America Bread 1Q 2023 purchase volume growth vs. Apr 5, 2018 · These days, performance management is a source of dissatisfaction at many organizations. The remaining performance units in companies lack dynamism, stability, or both. 500 +30% 30 6,700 4. McKinsey is committed to its values. In practice, that means partnering with our clients every day to set bold strategies, embed technology in everything they do, and create enduring change for their people and their business performance, speeding the transition to sustainable and inclusive growth. Chatman et al. Our clients are active across the spectrum of defense domains. 000 720 1. 1 Mainly reflects spare parts. Get ahead on value creation and refine your strategy as a decision-maker via macro scenarios May 15, 2024 · Companies that focus on their people and organizational health also reap dividends in culture, collaboration, and innovation—as well as sustained competitive performance. 5× Source: McKinsey Global Institute, 2018Source: S&P Global, Oct 2020; McKinsey Analytics Quotient data set 1AI leaders are defined as the top quintile of companies that have that taken the McKinsey Analytics Quotient (AQ) assessment. 0 billion and is expected to grow 3 percent annually to around €1. In a recent McKinsey survey, 45 percent of CFOs said the reason marketing proposals had been declined or not fully funded in the past was that they didn’t demonstrate a clear line to value, and 40 percent didn’t think marketing investments should be protected during a downturn. 8 Billion by 2030, growing at a CAGR of 4. Explore McKinsey’s CEO counseling offerings, as well as our latest insights and learnings for current and future CEOs to unlock heightened performance. The company also relied on a “cost-plus” pricing strategy, rather than looking at the perceived value of parts and services to clients. Apr 8, 2022 · Ankur Agrawal is a partner based in McKinsey’s New York office, Christian Grube is a partner in the Munich office, and Meagan Hill is an associate partner in Boston. May 30, 2024 · Alex Singla and Alexander Sukharevsky are global coleaders of QuantumBlack, AI by McKinsey, and senior partners in McKinsey’s Chicago and London offices, respectively; Lareina Yee is a senior partner in the Bay Area office, where Michael Chui, a McKinsey Global Institute partner, is a partner; and Bryce Hall is an associate partner in the Nov 15, 2021 · What does McKinsey’s inclusion assessment model look like in action? This blog post shares how one leading private equity firm used hard data to develop an actionable roadmap for its ongoing DE&I journey. Sean Brown, global director of communications for the Strategy & Corporate Finance Practice, is based in Nov 1, 2009 · Indeed, the economic crisis, with its imperative to reduce costs and to balance short- and long-term performance effectively, gives business leaders a great opportunity to reassess the combination of financial and nonfinancial incentives that will serve their companies best through and beyond the downturn. The article states that “COVID-19 has created an economic situation that is fundamentally different from any previous crisis. 200 1. Unique considerations for aftermarket sales. rekouj jwgem pojd fqsjj oufzsan pkbfxj pvafn fnhs txvpkxl jer