Ari Libarikian
McKinsey commentary
Senior partner
What’s noteworthy about this survey to me is that even as companies navigate a period of macroeconomic uncertainty, they are focusing on both near- and medium- to long-term strategies. That hasn’t always been the case in times of turbulence, when the focus for most businesses is much more on near-term action and reaction. This helps explain why business building continues to grow as a business priority. More important, we’re seeing that executives understand the need to develop a business-building capability to launch multiple businesses. This portfolio approach helps diversify risk and increase the probability of success and growth—the more they do it, the better they get at it.
Part of this thinking is driven by generative AI, which has created offense and defense opportunities we haven’t seen to the same degree before. On the offense side, companies are seeing how generative AI can help them launch more businesses more quickly; on the defense side, they’re seeing how disruptive generative AI can be and are trying to get ahead of it. While most executives recognize this dynamic, CEOs seem to be “looking around the corner” more, which explains why we’ve seen that they can prioritize business building more than other leaders, especially in volatile times. But it’s up to them now to galvanize their companies to build businesses and create both incentives and processes that encourage business building, even as their top teams work to address shorter-term business pressures.
What’s noteworthy about this survey to me is that even as companies navigate a period of macroeconomic uncertainty, they are focusing on both near- and medium- to long-term strategies. That hasn’t always been the case in times of turbulence, when the focus for most businesses is much more on near-term action and reaction. This helps explain why business building continues to grow as a business priority. More importantly, we’re seeing that executives understand the need to develop a business-building capability to launch multiple businesses. This portfolio approach helps diversify risk and increase the probability of success and growth—the more they do it, the better they get at it.
Part of this thinking is driven by generative AI, which has created offense and defense opportunities we haven’t seen to the same degree before. On the offense side, companies are seeing how generative AI can help them launch more businesses more quickly; on the defense side, they’re seeing how disruptive generative AI can be and are trying to get ahead of it. While most executives recognize this dynamic, CEOs seem to be “looking around the corner” more, which explains why we’ve seen that they can prioritize business building more than other leaders, especially in volatile times. But it’s up to them now to galvanize their companies to build businesses and create both incentives and processes that encourage business building, even as their top teams work to address shorter-term business pressures.
Senior partner
Ari Libarikian
McKinsey commentary