Despite economic woes that have beset parts of Asia over the past few months, the region still offers the promise of rapidly expanding markets and new global alliances.
The 2,400 Wharton alumni working in Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, the People’s Republic of China, the Philippines, Singapore, Taiwan, Thailand, Vietnam and Australia are part of Asia’s future. Many are in positions of leadership at a time when executive ability is being tested like never before by volatile currencies, regional recessions, new competition, deregulation and privatization, to mention a few of the more prominent trends.
In the following pages we asked 15 alumni to identify the major challenges facing their companies over the next five years, the attributes they think characterize effective leadership, notable regional business trends and favorite restaurants and hotels.
Through these individual interviews we offer a glimpse of Wharton’s alumni leadership in Asia.
Job Title: Chairman, Plantation Timber Products, Singapore
Principal Responsibility: Creating the vision for the company, overseeing the development of corporate strategy and providing guidance and mentoring to top management
Line of Business: PTP is China’s largest integrated wood products company, with all production oriented to China’s large domestic market
Major Challenge Over the Next Five Years: Establishing a national marketing and distribution system which will effectively enable us to achieve both the market share and the premium position that our superior quality deserves
Attributes of Effective Leadership:
Ability to evaluate people; willingness to delegate; insights into evaluating risks
Most Notable Regional Business Trend: The emergence and evolution of China as a huge market economy. This development is immense, incredibly rapid and will have far-reaching effects. The key requirement for effective development is managers … It is particularly exciting for me to participate in this phenomenon as I spent the first 22 years of my life in China …
Favorite Restaurants in Singapore: Lei Garden (Chinese) and Les Amis (French)
Favorite Hotel in Singapore: Ritz Carlton
Job Title: Principal, McKinsey & Co., Beijing
Principal Responsibility: Building McKinsey’s practice in China to provide top management of leading Chinese state-owned enterprises (SOEs) and major multinational corporations (MNCs) with strategic, operational and organizational counsel
Line of Business: Management consulting
Major Challenge Over the Next Five Years: Retaining sufficient talent in China’s dynamic and competitive economy to fully meet burgeoning client demand. Due to the Cultural Revolution, large MNCs have a difficult time finding middle managers for strategic planning, finance, marketing and general management positions. McKinsey’s early-tenure Chinese associates are an attractive source of talent that is much less expensive than expats
Attributes of Effective Leadership: First is focus. Second is inspiration. Emerging from 30+ years in a communist system, middle managers in Chinese SOEs are reluctant to assume accountability. As a result, organizational change comes slowly. Leaders are able to inspire initiative-taking throughout an organization. Third, values. The PRC economy and Chinese SOEs are plagued with corruption from the blatant to the borderline, and many managers look the other way. But leaders communicate standards and then exemplify corporate and personal values in every interaction
Most Notable Regional Business Trend: The most notable trend in Asia not yet widely recognized is the emerging internationalization of China’s leading enterprises, such as CITIC, COSCO, Baoshan Steel and Haier. Over the next 5-25 years, such companies aspire to be on the global Fortune 500 — a “third wave” of Asian-based MNCs behind Japan (such as Sony and Matsushita) and Korea (Samsung and LG)
Favorite Restaurant in Beijing: Lulu’s
Favorite Hotels in Beijing: Palace Hotel, ChinaWorld
Job Title: President & CEO, Suttong Corp., Seoul
Principal Responsibility: To successfully reinvent a 43-year-old manufacturing company into a growth company in the information age
Line of Business: Batteries, plastics and pressure-sensitive adhesive products, household and consumer healthcare products, medical systems
Major Challenge Over the Next Five Years: To keep a leadership position in our niche business categories through technology-based differentiation and lowest-cost structure
Attributes of Effective Leadership: Flexibility and adaptability to changes in environments, technologies, competitive structures and consumer behaviors
Most Notable Regional Business Trends: Global competition from global players who are armed with sophisticated management skills, well-recognized brands and strong financial muscles; financial instabilities and weak financial institutions throughout the region; westernized consumer behavior and rising spending in luxury goods
Favorite Restaurant in Seoul: Palsun (Chinese)
Favorite Hotel in Seoul: Grand Hyatt
Job Title: President, China Life Insurance Co.; Chairman, Cycloria Inc.; Chairman, Videoland Inc., Taipei
Principal Responsibility: To manage Koos Group China Life Insurance Co. and to supervise the group’s telecommunications business (multiple cable system operation, satellite uplink, cable system construction, cable TV networks, cable TV ad sales)
Line of Business: Life insurance, advertising, public relations, direct mail sales, satellite and cable TV, telecommunications
Major Challenge Over the Next Five Years: Continuing liberalization and internationalization of Taiwan’s economy, which leads to fiercer competition from overseas
Attributes of Effective Leadership: Modesty, which on the part of the leader can lead to harmony and unity within the company; honesty, which builds credibility among clients; foresight, which allows a leader to either take the initiative or take protective measures in advance
Most Notable Regional Business Trends: Deregulation and privatization
Favorite Restaurant in Taipei: At the Ambassador Hotel
Favorite Hotel in Taipei: Grand Hotel
Job Title: Group Executive Chairman, Konsortium Perkapalan Bhd., Kuala Lumpur
Principal Responsibility: To provide leadership to the group by formulating a realistic vision, developing short and long-term objectives, building and motivating an effective team that can implement policies that will result in the group achieving our objectives
Line of Business: Multi-modal logistics service provider. We are focusing on providing the expertise and resources to design and implement effective inventory management systems for companies. This involves using the company’s and our own transportation and storage assets to smooth the flow of in-bound and out-bound inventory. We operate in ASEAN, South Asia and South Africa and are looking to cover the entire Asia-Pacific region as well as the Indian Ocean rim countries
Major Challenge Over the Next Five Years: To position the group to compete effectively as markets deregulate, infrastructure improves, new competition emerges and technology develops
Attributes of Effective Leadership: Listen well, act decisively, behave ethically always
Most Notable Regional Business Trend: As companies concentrate on developing their skills and expertise in product development, the manufacturing process and marketing, they look to outsource certain functions to specialist organizations. They stand to gain through better and more cost-effective service and better utilization of resources. Distribution is one such area. In Asia, the cost of distribution is high. Companies that can lower the cost of distribution, or better still, work on reducing their client’s cost of inventory, are best placed to benefit from this trend.
Favorite Restaurant in Kuala Lumpur: Mango Tree
Favorite Hotel in Kuala Lumpur: Equatorial Hotel
Job Title: Director of the Board, Executive President, Shanghai International Trust & Investment Corp., Shanghai
Principal Responsibility: In charge of investment banking division, fund investment division, and international trading and consulting division
Line of Business: The company is a financial institution but covers other industries as well, including real estate, international trading and investing
Major Challenge Over the Next Five Years: As the Trust Law is promulgated in the near future, the company has to adjust to the trust and investment banking business
Attributes of Effective Leadership: Creativeness; persuasiveness; perseverance
Most Notable Regional Business Trend: The stock and M&A markets will develop more rapidly because of the reformation of state-owned-enterprises
Favorite Restaurants in Shanghai: Gap (Jin-Ting) for Chinese; Jax for Western cuisine
Favorite Hotels in Shanghai: Sheraton-Hua Ting and Holiday Inn
Job Title: Founder, President and CEO, Asset Plus Securities Co., Ltd., Bangkok
Principal Responsibility: In charge of overall operations of the firm, with an emphasis on marketing
Line of Business: Investment banking — domestic and cross-border, M&As, restructuring, new listing sponsorship, fundraising, general advisory; stockbroking and research; investments, both direct and portfolio investment
Major Challenge Over the Next Five Years: Maintaining efficiency of operations and the entrepreneurial spirit of the company as the business grows. These are key factors that will help us compete successfully against large international investment banks and securities houses
Attributes of Effective Leadership: Vision and the ability to transfer that vision to others; human resource management; risk taking
Most Notable Regional Business Trends: Further consolidation within the region and more cross-border deals among Asian companies
Favorite Restaurant in Bangkok: The Golden Lotus
Favorite Hotel in Bangkok: Regent
Job Title: President and Managing Director of Goldman Sachs (Asia) L.L.C., Hong Kong
Principal Responsibility: Overseeing Goldman Sachs’ activities in Asia, outside of Japan
Line of Business: Full-service investment banking and securities firm
Major Challenge Over the Next Five Years: Balancing global expertise with local knowledge
Attributes of Effective Leadership: Honesty; clear vision; leadership by example
Most Notable Regional Business Trend: Funding Asia’s macroeconomic growth and infrastructure requirements
Favorite Restaurant in Hong Kong: La Bodega
Favorite Hotel in Hong Kong: The Regent
Job Title: Director & General Manager, The Nomura Securities Co., Ltd., Tokyo
Principal Responsibility: Risk management
Line of Business: Securities brokerage & investment banking
Major Challenges Over the Next Five Years: Competition with overseas investment banks in Japan; competition in the global market with major world players
Attributes of Effective Leadership: Vision; clear message; balanced strategy
Most Notable Regional Business Trend: Deregulation of Japan’s financial and capital markets
Favorite Restaurant in Tokyo: Kikuya
Favorite Hotel in Tokyo: Four Seasons
Job Title: Executive Vice-President, JG Summit Holdings, Inc.; Executive Vice-President & General Manager of Branded Foods Division (Universal Robina Corp.), Quezon City
Principal Responsibility: Manage URC branded consumer foods unit — the Philippines’ largest snack, chocolate and candy manufacturer — and Cebu Pacific Air, the Philippines’ first low-cost airline and now its second largest and fastest growing
Line of Business: URC — branded consumer foods; Cebu Pacific Air — low fare airline; JG Summit — holding company in food, banking, textile, property, cement, telecom, petrochemical and air transport business
Major Challenge Over the Next Five Years: Looking for and developing management team and company culture that will enable company to achieve continued revenue and profitability growth, particularly in volatile Southeast Asian environment
Attributes of Effective Leadership: Creating and communicating clear vision and culture; developing strong, dedicated management team; staying focused while remaining receptive to innovation and new ideas
Most Notable Regional Business Trend: Increasing competition in all businesses due to globalization/information/deregulation
Favorite Restaurant in Quezon City: Flavors and Spices (Thai)
Favorite Hotel in Quezon City: Manila Galleria Suites
Job Title: President & CEO, Cresco, Ltd., Tokyo
Principal Responsibility: All
Line of Business: Systems integration focusing on networks and financial applications
Major Challenges Over the Next Five Years: To increase productivity in developing computer software and to recruit enough skilled systems engineers and programmers
Attributes of Effective Leadership: Vision; knowledge of human history; good health
Most Notable Regional Business Trends: Financial deregulation and adaptation to new information technology
Favorite Restaurant in Tokyo: Sushi–Iwa (Tsukiji)
Favorite Hotel in Tokyo: The Palace Hotel
Job Title: Group Chairman and CEO, Navatanee Group of Companies, Bangkok
Principal Responsibility: Policy making and long-term planning
Line of Business: Real estate, golf course, investing
Major Challenge Over the Next Five Years: Overcoming current economic recession
Attributes of Effective Leadership: Vision; motivation; good human relations
Most Notable Regional Business Trend: Slow economic recovery from current recession
Favorite Restaurant in Bangkok: Mayflower (Chinese)
Favorite Hotel in Bangkok: Oriental Hotel
Job Title: Executive Vice-President, Member of the Board, Matsushita Electric Industrial Co., Ltd., Osaka
Principal Responsibility: Responsible for overseas operations and external affairs
Line of Business: Manufacture and sale of electronic equipment, home and industrial electric equipment and appliances, computer and communications, semiconductors and electronic components
Major Challenge Over the Next Five Years: Globalization of our operations
Attributes of Effective Leadership: Ability to place the right person at the right post; insight and knowledge from a long-term and global point of view
Most Notable Regional Business Trend: Development of a more borderless and globally harmonized business environment
Favorite Restaurant in Osaka: Kiccho
Favorite Hotel in Osaka: Rihga Royal Hotel
Job Title: Vice President, General Reinsurance Corp., Shanghai Representative Office, Chief Representative, Shanghai
Principal Responsibility: Explore China market
Line of Business: Reinsurance
Major Challenge Over the Next Five Years: To obtain operating license from the Chinese government, to upgrade staffs and to acquire a major share in China’s reinsurance market
Attributes of Effective Leadership: Farsightedness, integrity, prompt and decisive action
Most Notable Regional Business Trend: China will continue its high growth rate (9–12 percent a year), U.S. investment in China will increase and China-Hong Kong-Taiwan will become one of the world’s great economic centers
Favorite Restaurant in Shanghai: Mei Long Zhen
Favorite Hotels in Shanghai: Portman, Hilton and Garden Hotels
Job Title: Director, McKinsey & Co., New Delhi
Principal Responsibility: To build a pre-eminent position for McKinsey in India by achieving sustained impact for clients; and to provide leadership and direction in the firm, helping build McKinsey in such a way that the institution has long-lasting impact on society, the economy and business enterprise
Line of Business: Focusing on helping think through and resolve the issues faced by top management in terms of strategy, operations improvement and redesign, and organizational performance
Major Challenge Over the Next Five Years: To evolve rapidly enough that we continue to be the sort of exciting and stimulating place that attracts talented individuals. We need to ensure that such people continue to be attracted to the firm, develop in the firm and become future leaders of the firm
Attributes of Effective Leadership: A strong belief that something can be made from the raw material, that you can make a difference; perseverance, focusing on the goal but enjoying the path that takes you there; concern for people. I bond to my clients because of who they are as human beings. I find it very difficult to serve them well without this
Most Notable Regional Business Trend: The increasing number of mergers and acquisitions. This activity could quadruple over the coming decade to more than $100 billion. This will come about because of the convergence of several forces: 1) deregulation of the Asian capital markets as a result of structural over-capacity in a number of industries; 2) the continuing trend towards privatization and disinvestment; 3) the restructuring of family-owned businesses and conglomerates; 4) the consolidation of highly fragmented supply bases
Favorite Restaurant in New Delhi: Blue Elephant
Favorite Hotel in New Delhi: The Oberoi
