In Rewired, the world's most influential management consulting firm, McKinsey & Company, delivers a road-tested, how-to manual their own consultants use to help companies build the capabilities to outcompete in the age of digital and AI.
Many companies are stuck with digital transformations that are not moving the needle. There are no quick fixes but there is a playbook. The answer is in rewiring your business so hundreds, thousands, of teams can harness technology to continuously create great customer experiences, lower unit costs, and generate value. It's the capabilities of the organization that win the race.
McKinsey Digital's top leaders Eric Lamarre, Kate Smaje and Rodney W. Zemmel provide proven how-to details on what it takes in six comprehensive sections – creating the transformation roadmap, building a talent bench, adopting a new operating model, producing a distributed technology environment so teams can innovate, embedding data everywhere, and unlocking user adoption and enterprise scaling.
Tested, iterated, reworked, and tested again over the years, McKinsey's digital and AI transformation playbook is captured in the pages of Rewired. It contains diagnostic assessments, operating model designs, technology and data architecture diagrams, how-to checklists, best practices and detailed implementation methods, all exemplified with demonstrated case studies and illustrated with 100+ exhibits.
Rewired is for leaders who are ready to roll up their sleeves and do the hard work needed to rewire their company for long-term success.
Introduction: The enterprise capabilities that turn digital and AI into a source of ongoing competitive advantage 1
Section One Creating the Transformation Roadmap: A business-led roadmap is the blueprint for a successful digital and AI transformation 15
Chapter 1 Get your top team inspired and aligned 19
Chapter 2 Choose the right transformation "bite size" 25
Chapter 3 Have business leaders define what's possible 33
Chapter 4 Figure out what resources you need to achieve what you want 43
Chapter 5 Build capabilities for now and the next decade 49
Chapter 6 The digital roadmap is a contract for your C-suite 57
Chapter 7 The ultimate corporate team sport 61
Getting Ready -- Section One 67
Section Two Building Your Talent Bench: Creating an environment where digital talent thrives 69
Chapter 8 Core versus noncore capabilities -- strategic talent planning 71
Chapter 9 The talent team that can build your digital team 83
Chapter 10 Hiring digital talent when they're actually interviewing you 87
Chapter 11 Recognize distinctive technologists 101
Chapter 12 Fostering craftsmanship excellence 107
Getting Ready -- Section Two 115
Section Three Adopting a New Operating Model: Rearchitecting your organization and governance to be fast and flexible 117
Chapter 13 From doing agile to being agile 119
Chapter 14 Operating models that support hundreds of agile pods 131
Chapter 15 Professionalize product management 149
Chapter 16 Customer experience design: The magic ingredient 159
Getting Ready -- Section Three 167
Section Four Technology for Speed and Distributed Innovation: Building a technology environment that empowers the entire organization to digitally innovate 169
Chapter 17 Decoupled architecture for development flexibility and operational scalability 173
Chapter 18 A more surgical and value-backed approach to cloud 185
Chapter 19 Engineering practices for speed and high-quality code 193
Chapter 20 The tools to make your developers highly productive 207
Chapter 21 Delivering production-grade digital solutions 215
Chapter 22 Build in security and automation from the start 221
Chapter 23 MLOps so AI can scale 227
Getting Ready -- Section Four 235
Section Five Embedding Data Everywhere: What it takes to make data easy to consume across the organization 237
Chapter 24 Determine what data matters 239
Chapter 25 Data products: The reusable building blocks for scaling 247
Chapter 26 Data architecture, or the system of data "pipes" 259
Chapter 27 Organize to get the most from your data 273
Getting Ready -- Section Five 285
Section Six The Keys to Unlock Adoption and Scaling: How to both get users to adopt your digital solutions and scale those solutions across the enterprise 287
Chapter 28 Nail user adoption and underlying business model changes 291
Chapter 29 Design solutions for easy replication and reuse 301
Chapter 30 Ensuring impact by tracking what matters 313
Chapter 31 Managing risk and building digital trust 329
Chapter 32 So, what about culture? 335
Getting Ready -- Section Six 345
Section Seven Transformation Journey Stories: An exploration of how three companies have driven successful digital and AI transformations 347
Chapter 33 Freeport-McMoRan turns data into value 349
Chapter 34 DBS -- A multinational bank becomes a digital bank 357
Chapter 35 The future of play takes shape at the LEGO Group 365
Acknowledgments 373
Index 377
Praise for REWIRED
“Rewired will become the go-to playbook for people who want to harness digital innovation to drive competitive business outcomes.”
—DR. ALBERT BOURLA, Chairman and CEO, Pfizer
“In typical McKinsey fashion, this insightful book makes the challenge of tech-enabled transformations all the more approachable and actionable.”
—CHUA (“SK”) SOCK KOONG, Board at Bharti Airtel, Prudential, Royal Philips, Ayala Corporation; former CEO, Singtel
“An absolute must-read for any executive with aspirations for leading a multinational company.”
—MARTIN SHANKLAND, Executive Board Member for Global Operations, adidas
“This book gives insight into the capabilities and frameworks needed to win.”
—JULIE DILLMAN, EVP, Chubb Group; Senior Executive, Operations and Technology, and Digital Transformation Officer
“Rewired is written with a practitioner’s eye and provides a clear roadmap for building your enterprise capabilities and concrete examples that will greatly increase your organization’s odds of success.”
—JEFF HARMENING, Chairman and CEO, General Mills
“Rewired shows the way forward by not just clarifying the role of technology, but also showing how to apply the technology in order to achieve a competitive advantage.”
—DR. MARKUS KREBBER, CEO, RWE AG
“A must-read for any organization looking to stay competitive in the digital age.”
—MATT ANDERSON, Chief Digital Officer, The Carlyle Group
“Lamarre, Smaje, and Zemmel have undertaken a unique service to cut through the complexity of digital and AI transformations and make it navigable.”
—CHUCK MAGRO, CEO, Corteva Agriscience
“To stay competitive and at the forefront of any industry, businesses must continuously adapt and evolve with technology. Rewired tackles the key question of how.”
—ROBIN VINCE, President and CEO, BNY Mellon
“Rewired … combines a clear blueprint about what matters with clear guidance about how to get it done.”
—RONA FAIRHEAD, Board at Oracle; Life Peer, UK House of Lords; Chair at RS Group plc
“Rewired goes past the ‘what’ to delve into the ‘how’.”
—BETTINA DIETSCHE, Chief People and Culture Officer, Allianz Group
“Rewired will be required reading for my team.”
—TED DOHENY, President and CEO, Sealed Air Corporation
“Rewired provides a ‘Unified Field Theory’ … to help companies move from disjointed digital projects to an end-to-end true digital enterprise.”
—RON WILLIAMS, former Chairman and CEO, Aetna Inc. and a Director of American Express, The Boeing Company, and Johnson & Johnson
“Rewired is among the best book I’ve read in explaining what executives need to know at a level that is both understandable yet sufficiently detailed to be meaningful.”
—PETER JACOBS, CEO, ING Bank Netherlands
How companies navigate the technology world to achieve competitive advantage is the defining business challenge of our time. It’s not a simple journey. As one CEO said, “We can find digital everywhere in our company but the bottom line.” For digital and AI to deliver on its potential, executives need to be ready and willing to undertake the organizational “surgery” required to become a digitally capable enterprise.
The answer is in rewiring your business so hundreds, if not thousands, of teams can harness technology to continuously create great customer experiences, lower unit costs, and generate value. Rewiring a business is a journey—one that executives will be on for the rest of their careers. This book is your how-to guide through the most important changes: how to align your team on transforming your core business, reskill your talent bench, implement a new operating model, build a distributed technology and data environment to power teams, and scale the value.
Written by the digital and AI leaders at McKinsey & Company, Rewired takes the lessons learned working with more than 200 large-scale B2C and B2B companies and translates them into step-by-step actions that have been proven to work. Tested, iterated, reworked, and tested again over the years, Rewired is the detailed playbook McKinsey’s own consultants use. It contains diagnostic assessments, operating model designs, technology and data architecture diagrams, how-to checklists, best practices, and detailed implementation methods, all exemplified with case studies and illustrated with 100 exhibits.
Rewired is a practitioner’s guide for leaders who are ready to do the hard work needed to outcompete in the age of digital and AI.
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Biographical note
ERIC LAMARRE is a senior partner and leads McKinsey Digital in North America. He is an engineer by training and worked in research at MIT on water waves and underwater acoustics before joining McKinsey. Eric has pioneered the development of McKinsey’s Digital & AI client service methodologies and published extensively on the topic. He previously served as managing partner of McKinsey Canada. Eric is on the board of the Montreal Heart Institute Foundation. He is married and has two wonderful daughters.
KATE SMAJE is a senior partner at McKinsey and the global co-leader of McKinsey Digital. A history major at heart, Kate has spent the past 20+ years at McKinsey working with B2C companies. A frequent speaker and publisher on digital topics, she also works with clients across geographies and sectors to marry the power of technology and AI with the human change required to leap forward. She has experience as a chief technology officer and a self-proclaimed geeky interest in technology, continuous learning, and developing people. Kate is a trustee of Tommy’s, the London-based children’s charity.
RODNEY ZEMMEL is a senior partner at McKinsey and is the global co-leader of McKinsey Digital. He has served as the managing partner for McKinsey’s New York and northeast offices in the United States, and led McKinsey’s Healthcare Practice, working with clients in pharmaceuticals, biotechnology, and healthcare services. He is a recognized thought leader and previously co-authored the book Go Long: Why Long-Term Thinking Is Your Best Short-Term Strategy. Rodney started out as a molecular biologist and now partners with clients on digital transformations, AI, technology productivity, and digital business building.