the disrupters rather than the disrupted. So, Leap is
a fundamental part of that. It’s almost always a new
revenue stream, but there have been cases where a
legacy company wants to build a brand new business.
For instance, if an investment bank wants to launch a
retail bank but realizes that the way to accomplish that
is not to do it within the traditional four walls of its
investment banking business because it’s so different
that they need to build out a new brand. Often times,
the company will decide to rebrand because they’ve
done such a good job with the existing brand that
consumers are trained to think of it in a certain way.
While that’s good, it’s not necessarily ideal for a new
business step out. In that case, the company will be
more successful if they brand things differently.
Consulting: What markets are ripe for Leap? Are there
client industries more ready for Leap than others?
Libarikian: We believe there is an opportunity here for
every sector and in every geography and we’re seeing
that in our client work. The reality is that there are
some sectors that are hotter right now in terms of new
business building: banking, for instance; healthcare,
technology, media telecom. We’re seeing a lot of
industrial companies trying to go digital by building
new businesses rather than trying to transform the core.
Were also seeing private equity industries looking at
this. So, it’s across the board but we see certain hotspots
where it’s been taking off over the last several years.
Consulting: How would you describe the clients’
current mindset around business building and Leap?
Libarikian: If you had asked me this question five
years ago I would’ve said that most companies
view new business building as an experiment and if
it doesn’t work, that’s OK. I think now were seeing
a lot more urgency and for many companies it’s a
question of survival. When companies reach out there
is an acceptance that this is something they have to
do rather than something we’d like to do with some
excess capital. The conversation is shifting; we’re
seeing a lot more urgency with this over the last 18
months and my guess is that’s going to continue.
Consulting: Can you talk a little bit about the market
potential? How bullish are you on Leap?
Libarikian: I can’t give specific numbers, but I can say
that Leap is on a short list of one of the fastest growing
parts of the firm. We don’t see it slowing down; we see
it accelerating. We are just at the beginning of the curve.
Consulting: So, digital disruption is everywhere. Why
McKinsey Leap? What sets it apart?
Libarikian: There are a couple of differentiators; the
first is that we ground our approach in creating business
value and frankly a lot of our competitors help build
stuff but it’s not always grounded in the core strategic
framework that McKinsey is known for. So, we help
companies not only build businesses but deliver value.
And that’s a really important part of the equation.
Second, we invest in capability building in ways that
others don’t. So our goal is not to just help a client build
a business but to help a client be prepared to grow a
business, adapt and thrive with this business long after
we’re gone. Third, for a client to succeed in business
building, it really needs to bring together an ecosystem
of capabilities. In many cases, it may need to partner with
other firms, it many need to partner with companies in
different sectors, and we feel that McKinsey is uniquely
positioned to orchestrate that network of that ecosystem
given our global reach, given our scale and given our
penetration of different sectors. That’s unique.
Consulting: Can you give me a Leap success story?
Libarikian: Sure; we helped a food services company,
one of the largest pizza companies in the world,
build a digital business. They realized that more and
more customers were going to go digital in how they
ordered pizza. So we helped this company stand up an
e-commerce and digital business within nine months.
We temporarily staffed in some of the key roles in this
new business to help the client accelerate. We linked
the new system back to the legacy core of the pizza
company and now they are up and running to the point
where the majority of their business runs through this
digital business versus the traditional business. We
also helped them set up the non-digital part of this
business—call centers, service centers—understanding
that sometimes customers follow up their digital orders
with phone calls if they’re comfortable with that level
of customer service. I think that illustrates the power
and McKinsey and the impact of Leap.