These are challenging times for organizations everywhere. Forces ranging from artificial intelligence, economic uncertainty, and geopolitical fragmentation to evolving workforce expectations, increasing customer demands, and tougher competitive dynamics are redefining how leaders create value and sustain performance. This report, the second edition of McKinsey’s State of Organizations research initiative, seeks to help leaders better understand these dynamics and address them effectively. Read the report here. It draws on a survey of more than 10,000 senior executives across 15 countries and 16 industries. While leaders remain focused on driving performance, as in the first edition in 2023, the emphasis has moved from short-term resilience to sustained productivity and long-term impact, powered by technology and AI at the core of organizational transformation.