In their recent quarterly, Ian Davis, the managing director of McKinsey & Company, summarized his insights on the downturn as The New Normal. This recession, he concludes cannot be considered merely another business cycle, but, instead, a restructuring of the economic order. Davis doesn't detail his perspective on what the new normal will look like, but simply addresses the macro changes. We'll have to draw our own conclusions about how all of this will affect our businesses, life style and families,
Arising directly from the financial crisis, the new economic structure will be marked by significantly less financial leverage in the system than in the past decades. Along with that major change there will be an expanded role for government with much regulatory restructuring to come.
In addition to those two major forces, it is now clear that US consumption cannot continue to be the engine for global growth. Instead, companies seeking high rates of income and consumption growth will look to Asia for that global support.
Finally, Davis writes that technological innovation will continue, making the value of increasing human knowledge and talent a key factor in organizational success. He is optimistic about the possibilities of this new normal.
As a specialist in career development and human performance, his last conclusion resonates with my understanding of the economic and structural changes. Career success will more and more be responsive to our talents and our abilities to solve complex problems and invent new solutions.