Person
2 episodes · 10 quoted claims
Kevin Carmody said CFOs report that AI has cut preparation for quarterly earnings from weeks of analyst effort to days.
“So they're going from literally man hours of weeks uh to days of time to get ready for their quarterly earnings, which frees up so much time in the finance organization”
Kevin Carmody said some CFOs have laid out every report they produce to find out who uses it, and in extreme cases cut most of them off to see whether anyone missed them.
“we've heard countless stories about CFOs that have literally put all the reports that they generate over time on a table to try to figure out who is using this information.”
Kevin Carmody said bold CEOs run transformations through four pillars: growth, cost optimization, the team, and digital or technology, with technology acting as an accelerant.
“they feed it through four performance pillars, which start with growth, second is cost optimization, third is your team, so the organization, the upskilling we talked about”
Kevin Carmody began his career at Chrysler Corporation.
“when I started my career at Chrysler Corporation, it's the difference of somebody going into a plant and and clocking in and clocking out”
Kevin Carmody describes four performance pillars (team, technology, growth, cost), with cost optimization serving to generate cash that funds the other three.
“cost optimization really is an opportunity to reset the organization, but to drive cash generation to basically fund the other three performance pillars”
Kevin Carmody describes a large industrial client whose cost program succeeded because hundreds of employees, not just the top ten, were activated and trained, so the cost reductions stuck.
“But we had a very deliberate plan to activate the organization hundreds of people, not just the top ten, to help them build the capabilities”
Kevin Carmody describes a dairy plant with about 40 production lines where a line supervisor, asked her opinion for the first time, fixed waste on her line and the idea spread across the plant.
“There was something like 40 production, uh, lines in that plant, and that was the 1st time she was asked her opinion, right?”
Kevin Carmody says 68 percent of the initiatives in McKinsey's transformations are small, worth $250,000 or less, reflecting wide involvement across the organization.
“68 of the initiatives in our transformations are smaller, 250,000, uh, dollars or less, not 10 million.”
Kevin Carmody says building ways-of-working capabilities and following through gives a roughly twofold increase in total returns to shareholders.
“If you look at ways of working, if you actually have a plan to build those capabilities and you follow through, so you're teaching people to do something differently, it's a twox bump to your TRS.”
Kevin Carmody says a chief transformation officer typically has no direct profit-and-loss or business-unit authority, so needs CEO backing.
“the CTO typically is someone that does not have direct P L or business unit authority.”