Inside the C-Suite: What McKinsey & PwC Reveal About CEOs in 2025

Presented by

INSIDE THE C-SUITE: WHAT TOP CONSULTING FIRMS REVEAL ABOUT CEOS IN 2025

Most CEOs step into their roles without a clear playbook—the stats prove it.

Two in five CEOs struggle within their first 18 months. One in three is asked to leave after three years. And a staggering 60% admit they’re “making it up” as they go.

Yet some CEOs thrive. They don’t just survive the role—they transform their companies, industries, and, sometimes, the world.

So, what makes them different?

McKinsey’s study of 7,800 CEOs over 20+ years uncovered the six mindsets that separate the best from the rest. These leaders don’t just react to change—they set the direction, mobilize people, and lead with purpose.

Inside this edition

• Top priorities of the CEO’s agenda for 2025

• The six dimensions of CEO excellence

• Three CEOs who skyrocketed revenue and turned around culture

• A tool to measure leadership effectiveness

🗞️ In case you missed it: The EPA will roll back environmental rules and programs, some foundational to addressing climate change; Intel’s New CEO Faces a ‘Show Me’ Moment, and more.

Read on to discover what CEOs are thinking and how they will lead and deliver impact in the coming months.

SPREAD FOR YOU
📢 WHAT KEEPS CEOS UP AT NIGHT IN 2025

The Chief Executive’s Agenda for 2025

CEOs are making big bets on transformation but face unprecedented pressure to drive results while navigating uncertainty. The winds of change will come with a board refresh, as 62% of CEOs say one or more board directors should be replaced.

Based on recent reports from PwC, Deloitte, and Gallup, these are the top concerns that will shape executive decision-making this year:

1. Business Reinvention 

A staggering 82% of CEOs believe that an average competitor will be out of business within ten years unless they change their current business model. At the same time, 4 in 10 executives are planning a major reorganization of their operating model to adapt to shifting market demands.

2. The Impact of AI

CEOs say that by 2028, generative AI will significantly change how their company creates and delivers value. The impact can already be felt with AI agents, which allow small businesses to achieve twice the output without increasing headcount. Expanded capabilities will level the playing field, bringing innovations to market much faster.

3. Cybersecurity threats

Cyber risk is now a standing item on the CEO's agenda. Despite this urgency, only 2% of executives say their company has implemented cyber resilience actions across their entire organization, leaving them vulnerable to growing threats. Heads-up: less than 50% of CISOs are involved in strategic planning, board reporting, and overseeing tech deployments, leading to misalignment between security strategies and business objectives.

4. Balancing growth vs. cost

Financial discipline is now a top priority for CEOs. The challenge? Reducing costs without stifling innovation or long-term growth. Leaders are taking a “productivity multiplier” approach, evaluating investments through a productivity lens to ensure every dollar drives efficiency and business transformation.

5. Mergers & acquisitions

More CEOs actively pursue M&A deals and portfolio adjustments to strengthen their core business, align with future market needs, or expand into high-growth areas. 57% of companies that attempted to fix underperforming business units saw their value deteriorate or stay the same.

6. Talent strategy redesign

7 in 10 US CEOs have upskilling and reskilling as top priorities for the next three years. Almost half are redesigning work processes to integrate AI-driven automation and moving toward on-demand talent models and specialized project-based roles. Gallup rings the alarm bell on turnover risks: 51% of the US workforce is actively looking for or considering new job opportunities—the highest rate since 2015. Strengthening the employer brand will be crucial to maintaining a competitive edge in talent retention.

The landscape is challenging. Continue reading to learn how the best CEOs turn huge challenges into opportunities.

THE CEO EXCELLENCE FRAMEWORK

FROM PRIORITIES TO PERFORMANCE: HOW CEOS EXECUTE

CEOs in 2025 are navigating AI disruption, workforce transformation, financial discipline, and cybersecurity threats.

But how do the best leaders turn these challenges into opportunities?

McKinsey’s research on 7,800 CEOs over 20 years reveals that even though the contexts and challenges may differ, those who excel master six key dimensions of CEO excellence and have particular mindsets that drive long-term success.

THE 6 DIMENSIONS OF CEO EXCELLENCE

What separates a good CEO from an exceptional one?

McKinsey identified six key dimensions that define high-impact leadership and translate into mindsets and daily behaviors that drive sustained business success.

Here’s what they have to say:

1. Set the direction 🏔️

• Craft a bold vision that inspires and aligns their organization so that strategy drives every decision.

• Prioritize resource allocation, ensuring time, talent, and capital flow toward the most impactful initiatives.

• Shape the company's future and keep the organization focused, adaptable, and ready to seize opportunities.

2. Engage the Board 🗣️

• Treat the board as a strategic asset, build trust-based relationships through transparency, and ensure board members deeply understand the business beyond just financials.

• Focus on enhancing the board’s capabilities, ensuring directors bring the right expertise and perspectives to drive the company forward.

• Steer discussions in board meetings toward forward-thinking strategy, risk management, and long-term growth.

3. Connect with stakeholders 🔗

• Recognize that your company’s success depends on strong relationships across the entire ecosystem. 

• Shape interactions with employees, customers, investors, unions, government entities, and strategic partners, ensuring your organization’s purpose resonates with all stakeholders and guides decision-making.

• Pay close attention to critical moments of truth—high-stakes interactions that can define the company’s reputation. 

4. Manage personal effectiveness ⌛

• Manage time and energy (finite resources) intentionally. Compartmentalize and prioritize recovery moments and structure your schedules to maintain peak performance.

• Navigate changes confidently with a leadership model built on clarity, discipline, and adaptability.

• Refine your perspectives continuously to approach decisions with the right balance of ambition and pragmatism.

5. Mobilize through leaders ↗️

• Shape the leadership team composition, gathering people with the right mix of skills, experience, and perspectives to drive success.

• Foster a culture of collaboration and psychological safety, allowing teamwork to thrive and making bold decisions without fear.

• Focus on optimizing the company’s operating rhythm so that leadership meetings, decision-making processes, and cross-functional collaboration function smoothly. Empower leaders at every level to create an organization that moves with speed, agility, and cohesion.

6. Align the organization 🎯

• Treat culture as a competitive advantage, embedding it in daily actions rather than just statements of intent.

• Continuously refine the company’s organizational design, ensuring structures and processes enable rather than hinder performance.

• Invest in talent by hiring, developing, and retaining individuals who thrive in the company’s environment. By balancing stability with agility, you will create an organization that is resilient, innovative, and capable of sustaining long-term success.

Are you ready to answer uncomfortable questions? McKinsey & Co. designed a checklist to help leaders like you turn these mindsets into practices.

YOUR DOWNLOADABLE RESOURCE
THE CEO'S CHECKLIST

Every great CEO has a playbook—but few have a structured way to assess their leadership impact. McKinsey’s researchers found that while leaders have plenty of financial and operational metrics, they lack a clear checklist to navigate the complexities of their role.

In response, McKinsey created the CEO’s Essential Checklist. This practical tool helps leaders evaluate their effectiveness across the six dimensions mentioned above: setting the company’s direction, aligning the organization, mobilizing through leaders, engaging the board, connecting with stakeholders, and managing personal effectiveness.

Use this checklist to assess where you stand—and where to focus next.

Keep reading and learn real stories of CEOs who navigated complex scenarios and transformed businesses through these mindsets.

SUCCESS STORIES
THE EXCELLENCE FRAMEWORK IN ACTION: 3 CEOS WHO LEAD WITH IMPACT

Some CEOs face a defining moment—a crisis, an industry shift, or a bold vision that others doubt, and their decisions can even reshape entire industries.

Here’s how three CEOs applied the six dimensions of excellence to drive measurable business success:

Satya Nadella: Transforming Microsoft's Culture

📈 Microsoft’s market value has soared from $300B to over $2.5T, making it one of the most valuable companies in the world.

When Satya Nadella became CEO of Microsoft in 2014, the company was losing relevance, innovation had stalled, and internal competition was stifling progress. Instead of focusing solely on product fixes, Nadella transformed the company’s culture, championing a “learn-it-all” mindset over a “know-it-all” culture.

📌 Key Moves
✅ Made empathy and continuous learning core leadership principles
✅ Shifted Microsoft’s business model to cloud-first and AI-driven innovation
✅ Fostered a culture of collaboration over competition, driving engagement

Mary Barra: Reinventing General Motors for the future

📈 GM is now positioned as a global EV leader, with record-breaking investments in clean energy.

As the first female CEO of a major automaker, Mary Barra took charge of GM in 2014 during a massive recall crisis. She didn’t just fix operational issues—she redefined GM’s vision, committing to an all-electric future while streamlining operations and eliminating bureaucracy.

📌 Key Moves
✅ Established a zero-crashes, zero-emissions, zero-congestion strategy
✅ Invested $35B in EV and autonomous vehicles, making GM a leader in the space
✅ Fostered a speak-up culture to encourage transparency and accountability

Brian Chesky: Redefining Leadership at Airbnb

📈 Airbnb’s market cap rebounded to $100B+, surpassing pre-pandemic levels, proving that mission-driven leadership wins.

When the pandemic hit, Airbnb lost 80% of its revenue overnight. CEO Brian Chesky had to make painful layoffs but did so with empathy, transparency, and fairness, ensuring departing employees were supported. His leadership in the crisis restored Airbnb’s resilience, leading to a record-breaking IPO in 2020.

📌 Key Moves
✅ Prioritized trust and transparency in decision-making
✅ Focused on Airbnb’s core community rather than expanding into new markets
✅ Reinvented the platform to meet changing travel trends, shifting from city tourism to local experiences

UPCOMING EVENT
THE HR TECHNOLOGY AND DIGITAL TRANSFORMATION SUMMIT

Join the HR Technology and Digital Transformation Summit, a premier three-day event designed to equip HR leaders with the strategies and tools needed to navigate the future of work.

Explore the latest advancements in AI, automation, data analytics, and emerging technologies while gaining practical insights on optimizing HR platforms, enhancing employee experience, and driving digital transformation. With deep-dive discussions, expert-led sessions, and unparalleled networking opportunities, this summit is your roadmap to leveraging technology for sustainable organizational success.

📅 When: April 1- 3, 2025 (7 am-11 am Pacific Time)
💻 Event Type: Online | Free
 📢 Content Format: Panel | Workshop

TOP PICKS FOR YOU
🗞️ IN CASE YOU MISSED IT

Here is some of the latest news, from rising inflation and slower growth to the EPA’s rollback of environmental programs.

What's next for the economy?

The Fed held interest rates steady but warned of rising inflation and slower growth in 2025. Tariffs and policy shifts add uncertainty. Read more →

The Gender Pay Gap in the US is shrinking…slowly.

Pew Research Center found that women now earn 85 cents for every dollar men make—up from 81 cents in 2003. While progress is happening, workplace inequalities persist, especially for older workers. Read more →

Goodbye to Environmental Programs

The EPA has announced that it will roll back environmental rules and programs, some of which are foundational to addressing climate change. Read more →

A high-stakes ‘show me’ moment for Intel’s CEO

After a $22 billion stock surge, Intel’s new CEO, Lip-Bu Tan, sent a letter to employees acknowledging the company’s challenges—but offered no clear strategy for its turnaround. Read more →

Sponsor Daily Jam

Would you like to be featured in Daily Jam? Place your brand alongside deep industry research, actionable tips, and useful resources for HR and other leaders.