For companies serious about succession, the question isn’t just why McKinsey has this record, but how to emulate it to strengthen internal pipelines.

The firm’s method is as rigorous as it is intentional, more than a dozen former and current McKinsey alumni told me. From day one, new consultants rotate across industries, geographies, and functions, adapting on the fly and mastering unfamiliar businesses. They are expected to deconstruct sprawling problems, craft solutions, and win over skeptical executives—often while still in their 20s. That early exposure to high-stakes decision-making accelerates judgment and builds the confidence boards later crave in C-suite leaders, according to consultants-turned-CEOs.

Equally critical is McKinsey’s culture of constructive dissent. Hierarchy matters less than ideas, and consultants are trained to challenge assumptions and present counterarguments, even to senior partners or client CEOs. This discipline, debating until the best idea survives, teaches future leaders to welcome scrutiny, pressure-test their own reasoning, and make tough calls with limited information.

And the firm’s veterans are not afraid to dissent either. When McKinsey faced bruising controversies in recent years—from its work with opioid manufacturers to a bribery scandal in South Africa—it was often alumni who raised the loudest alarms. “They care deeply about the firm’s role in the world,” says Shelley Stewart, a senior partner who also helps oversee alumni engagement, “and they will tell us when we’ve failed to live up to the standard we claim.”

For those in their early to mid-career, relentless feedback deepens the learning. Reviews are frequent, unsparing, and are paired with coaching from senior partners and an “up-or-out” model that demands growth or exit. Those who rise acquire a habit of continuous improvement and the resilience to thrive under scrutiny.

In a market where a succession misstep can wipe out billions in value, McKinsey offers a blueprint for building a self-renewing leadership engine: move high potentials through multiple businesses to develop range and pattern recognition early. Give emerging leaders real authority quickly by assigning stretch tasks that carry visible stakes. Make feedback and coaching a constant, not a formality. And create an environment where dissent is expected, so future leaders develop the muscle to debate strategy and own the outcome. Read the full article here.—Ruth Umoh

Contact CEO Daily via Diane Brady at diane.brady@fortune.com

Top news

The U.S. government has shut down

Congress failed to reach an agreement about a spending bill and now thousands of federal employees will stop work and go on temporary furlough. President Trump threatened to irreversibly fire thousands of workers and cut benefits for “large numbers of people”—the open question is whether he will actually do that. Essential services will continue. National parks will be open, oddly. The BLS will not release employment or inflation numbers this week. Next step: Will voters blame Democrats or the Trump administration for the chaos? Live coverage from the BBC here and CNBC here.

White House withdraws BLS nominee

The Oval Office will have spiked the nomination of E.J. Antoni to head the Bureau of Labor Statistics, Axios reports. Antoni, a former Heritage Foundation economist, had come under fire for his history of social media posts that used economic stats for partisan purposes, sexist remarks, and insults targeting gay TV anchors. He was also photographed at the January 6 insurrection.

Photo of Bessent’s texts details fallout after Argentina bailout

A photo taken of private texts on Treasury Secretary Scott Bessent’s phone for the Associated Press reveals that Argentina plans to scrap its export taxes on soybeans and strike a huge new deal with China. That’s a sharp setback for the U.S. and its farmers, just after giving $20 billion to bail out the South American nation.

Buffett indicator pushes past 200%—like “playing with fire”

The “Warren Buffett Indicator” recently rocketed past 200%, signaling that stock prices significantly exceeded the underlying economy. The measure compares the total U.S. stock market value to the nation’s economic output, and Buffett once warned that such conditions are like “playing with fire.”

Online shopping comes to OpenAI

OpenAI and Stripe are folding shopping into the flow of an AI chat—a kind of holy grail for consumers who want to go from idea to purchase in seconds.

How to survive the AI freeze

Concerns of an “AI winter” are swirling despite valuations in the space continuing to skyrocket. Fortune’s Sharon Goldman explains why this cooling is likely just a phase—and how to survive it anyway.

Must-read: How Nvidia is handling China

Jensen Huang’s plan for his company’s largest market by revenue.

The markets

S&P 500 futures were down 0.65% this morning. The index closed up 0.41% in its last session. STOXX Europe 600 was up 0.21% in early trading. The U.K.’s FTSE 100 up 0.66% in early trading. Japan’s Nikkei 225 was down 0.85%. China’s CSI 300 was up 0.45%. The South Korea KOSPI was up 0.91%. India’s Nifty 50 was up 0.76% before the end of the session. Bitcoin rose to $115.8K.

Around the watercooler

SEC plan for blockchain-based stocks pits Coinbase and Robinhood against Wall Street giants by Jeff John Roberts

Ford CEO says Trump killing off the EV tax credit could cut the industry in half: ‘way smaller than we thought’ by Ashley Lutz and Nick Lichtenberg

Walmart CEO says he can’t think of a single job that won’t be changed by AI—here’s how today’s workforce can prepare by Jessica Coacci

A quarter of bosses admit their return-to-office mandates were meant to make staff quit by Orianna Rosa Royle

CEO Daily is compiled and edited by Joey Abrams and Jim Edwards.