Reuters
A New Year’s Resolution for Banks
Reuters highlights a BCG study that explains how banks can unlock at least $7 trillion in value over the next five years. While the study notes that banks are unlikely to return to the profitability levels that existed prior to the global financial crisis, they can roughly double their current valuations by pursuing growth and improving their price-to-book ratios. This can be achieved by embracing radical change rather than incremental improvements.
Forbes
New Year, New Job: Finding Joy at Work
In her column for Forbes, BCG’s Deborah Lovich encourages those in the job-hunting process to ensure that work is a source of joy. BCG research found that for companies to retain their employees, they must meet their emotional needs, such as feeling valued, supported, and respected. Lovich advises individuals to pay attention to their potential manager and the organization’s culture when deciding where to seek employment. “Work consumes an average of 50% of an employee’s wakeful hours during a typical workday. You should enjoy that time,” Lovich asserts.
Bloomberg Radio & Financial Times
A New Map for Global Trade
On Bloomberg Radio and in the Financial Times, BCG’s Tim Figures explains that global trade flows are changing as companies prioritize secure and resilient supply chains over more efficient but potentially risky ones. BCG research forecasts that world trade in goods will grow at 2.8% per year, on average, through 2032, while global GDP will grow at a rate of 3.1%. Figures tells Bloomberg that he expects to see more emphasis on regional trading blocs and less on big global trading relationships that are economically efficient but have environmental and social consequences.
The Edge Malaysia
Malaysia’s Potential as a Low-Carbon Energy Hub
Writing in The Edge Malaysia, BCG’s Dave Sivaprasad and Priyanshu Kumbhare assert that an effective hub strategy could be a game changer in building a resilient hydrogen economy in Malaysia. Hydrogen hubs, which can supply multiple industry partners simultaneously through shared infrastructure and cover a large share of the hydrogen value chain, help lower the overall cost of the gas and increase commercial viability. “A strategic regional approach with a fully integrated hub would not only address local demand but also tap into intra-regional economic opportunities,” note the authors.
Fortune
How Companies Can Benefit from Web3 in 2024
Writing in Fortune, BCG’s François Candelon, Michael Jacobides, Urs Rahne, and Katie Round emphasize how Web3 can be used to enhance a company’s existing tech stack rather than replace it. While early use cases involving virtual and augmented realities have been overshadowed by the rise of GenAI, Web3’s quiet shift toward more practical applications has proved valuable. “As we move from tech utopia to real use cases, having a clear strategy of when and how to use Web3 is important,” note the authors.
The Wall Street Journal
Public Investment in Emerging Technologies Needed to Reach Sustainable Energy Goals
In an interview with The Wall Street Journal, BCG’s Global Chair Rich Lesser discusses the vital role of technology in the shift away from fossil fuels. While solar, wind, and many battery technologies are now cost-competitive, others such as carbon capture and direct air capture will require public subsidies and substantial investments to lower their cost and make them scalable in the future. “We need support to build this infrastructure and make it affordable so that the private sector wants to adopt it and wants to use it,” Lesser says.
The New York Times
ChatGPT Helps, yet Worries, Business Consultants
The New York Times highlights a study from BCG, Harvard Business School, MIT Sloan School of Management, the Wharton School at the University of Pennsylvania, and the University of Warwick, which revealed feelings of unease among ChatGPT users. The study, which was based on an experiment that measured how ChatGPT would affect more than 750 BCG consultants worldwide, determined the tool was best used for creative ideation. However, BCG’s François Candelon explains that three out of four participants worried that using ChatGPT would cause their creative muscles to atrophy.
The Wall Street Journal
CFOs Must Prepare for an Unpredictable 2024
In The Wall Street Journal, BCG’s Paul Goydan emphasizes the importance of cost management for CFOs preparing for the upcoming year. With the cost-of-living and energy crises limiting the ability to raise prices, Goydan says that finding efficiencies and staying profitable will remain a priority in 2024. “The sheer volume of unknowns in their 2024 plans has reached a level that many CFOs haven’t yet seen in their careers,” he adds.
The Economic Times
Great Managers Make All the Difference
In Fortune and The Economic Times, BCG’s Neetu Chitkara, Gabrielle Novacek, and Deborah Lovich underscore the influential role managers play in lowering attrition risk. BCG research found that 28% of employees say they do not see themselves with their current employer within a year—a figure that rises to 56% among those who are dissatisfied with their manager. “The best way to create great managers is through on-the-job coaching, the rhythm and routines, the small things that people do that make a big difference,” Lovich tells Fortune.
Fortune
AI Could Be Humanity’s Last Chance to Meet Climate Goals
In a coauthored article for Fortune, BCG’s Global Chair, Rich Lesser, explains why AI is critical in the collective effort to tackle climate change. A joint report from BCG and Google found that by scaling currently proven applications and technology, AI could mitigate 5% to 10% of global greenhouse gas emissions by 2030. Lesser asserts that policymakers play a central role in harnessing the potential of AI for climate action. “Enabling this technology through smart policy decisions may prove one of the most impactful climate actions we can take today,” he writes.
Bloomberg
BCG and Climeworks Strengthen Carbon Removal Partnership
Bloomberg reports that two years after signing their first carbon removal partnership in 2021, BCG has signed a 15-year agreement with Climeworks to rapidly scale high-quality carbon removal to fight global warming. BCG’s removals purchase of 80,000 metric tons of CO2 is the largest of Climeworks’s corporate buyers to date, and the length of the deal is the longest the firm has signed. “Without carbon removal, net zero is out of reach,” says BCG’s Chief Sustainability Officer, David Webb.
Forbes
How Leaders Can Shape Organizational Change
In Forbes, BCG’s Julia Dhar explains why recognizing employees’ natural resistance to change is crucial for successful organizational transformation initiatives. A BCG survey found that leaders tend to overlook the concept of change aversion when it comes to their employees, often focusing on the business rationale for change without considering the human element. Dhar says leaders who understand people’s natural change aversion will be met with less resistance, more engagement, and better outcomes.
Live Mint
The Pandemic May Be Behind Us, but Digital Healthcare Is Here to Stay
Writing in Live Mint, BCG’s Priyanka Aggarwal and Ketan Kapuria explain that the pandemic sparked a wave of digital transformation across India’s healthcare industry. While health-tech startups have been driving innovation throughout the sector, established players in pharma, insurance, and diagnostics have also been ramping up their digital capabilities. “The Indian healthcare industry, with its many constraints and challenges, has been ripe for technological disruption for a while,” note the authors.
The Business Times
Getting Supply Chain Resilience Right in Southeast Asia
Writing in The Business Times, BCG’s Kazutoshi Tominaga and Hitesh Tak explain that Southeast Asia has emerged as an attractive destination for supply-chain relocation due to geopolitical uncertainties, regional policy measures, and a growing domestic market. BCG research projects that the region’s exports will increase by nearly 90% by 2031, reaching $3.2 trillion. “While the regional opportunity is ripe, understanding the local context is vital in realizing this opportunity,” note the authors.
Fortune
The Future 50: Companies Built for Growth in Uncertain Times
Writing in Fortune, BCG’s Martin Reeves and Adam Job unveil the 2023 Future 50 index, which has annually assessed the long-term revenue growth prospects of more than 1,700 of the world’s largest public companies since 2017. The index, codeveloped by the BCG Henderson Institute and Fortune, is dominated by the tech sector this year, despite it having faced significant headwinds in 2022 and 2023. Not surprisingly, this year’s cohort is driven in part by generative AI.