08.03.2025 Today’s Insights from McKinsey: A New Operating Model For People Management
Dear Students,
By now, it’s “old news” to candidates like you that global organizations, functional roles and workflows will be – and already are – changing radically due to the impact of AI and Gen AI. But exactly how these shifts will unfold in each industry and organization is still to be seen.
To get a sense of how the people management (aka Human Resources) function (which will affect every one of you) may evolve, McKinsey surveyed “100 experts in HR technology, executives from blue-chip companies, academics, and other thought leaders in the people and technology domains.” Some good news for students like you and your friends?: Their research conveys not only that successful companies will not be sacrificing attention to humans, but, in fact, “Organizations that excel in both people development and financial performance are four times as likely as peers to outperform financially.“
While recognizing that many current “people processes” can and will be automated, the authors (4 McKinsey Partners and one consultant) also emphasize that “elevating” the importance of “humanness” will be necessary for managers (which you’ll be soon!) across the board, for prominent companies to perform competitively in the years to come. And although the diverse insights and powerful graphics shared in this fascinating article are too numerous to highlight here, what’s most important for young professionals like you to keep in mind is that “people functions [and thus people] will play a critical role in helping [organizations] navigate a more complex and uncertain future.”
As leading global organizations are discovering, it’s key for ambitious international students (that means you!) to view technology as an enabler, to enhance human performance across the company, regardless of your specific function. In effect, the authors note, “Everyone must become a technologist.”
Wishing you a technology-enabled weekend, whichever platforms, languages and/or applications you choose to leverage!
Best,
Amy-Louise