Transcript Slide 1

“Inside
INSEAD”
Dinner Talk by
YB Dato’ Seri Idris Jusoh
August 27, 2008
INSEAD in brief
Founded in
1957
138
faculty members,
549
administrative staff
21 books, 82 journal
articles
and 78 case studies
published in 2006/07
36,200
alumni
present in
160
countries
887 MBA participants
representing 76 nationalities
The INSEAD Mission
• Our Mission
As an educational institution, our mission
is to promote a non-dogmatic learning
environment that brings together people,
cultures and ideas from around the world,
changing lives, and helping transform
organisations through management
education.
The INSEAD Values
Diversity as a source of learning and enrichment
We are free from any dominant culture or prevalent dogma;
we are open to, and respectful of, other views; we learn
through the exchange of ideas and experiences.
Independence as a governance principle
Rigour and relevance in teaching and research
Closeness to the international business
community
ADVANCED MANAGEMENT
PROGRAM
7th July – 1st Aug, 2008
96 participants
34 countries
Mainly businessman/
< govt officers
( S’pore, HK, UK, US)
One
politician…
Learning/Teaching Method
CONTENT of Coursework
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The emerging economy
Raplexity
Growth factors (4i)
Convergence theory
Innovation
Investment (true value)
Human Capital
Leadership
CONTENT of Coursework
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Fair process (5e)
3rd Culture
Blue Ocean Strategy
Metanational
Serendipity
Self
SPEED
The rate of
change over
the last 100
years
Emerging Economies
(China, India, Brazil…..
• > 50% world GDP (measured with PPP)
• Share of world export increases,
20% (1970) to 43%
• World energy consumption > 50%
CHINA
The Olympic Stadium
In 70 years :
WORLD POWER
• Produces engineers
China
US
-
600,000 per year
140,000 per year
• High International Reserves
China
Malaysia -
USD 1200 billion
USD 123 billion
“Convergence”
Theory
“Convergence” Theory
• All countries seems to
converge to a very similar
level of GDP per capita.
Rapidity and complexity
Demands
new
paradigm
Strategy
Planned
Structure
Hierarchy
System
Staff
Style
Skills
Rigid
Entrepreneurial
Network
Flexible
Title and rank
helpful
Being
Problem solving
Transformational
“To compete” “To build”
Better sameness
Shared values Meaningful difference
Focus
Source of
strength
Leadership
Institution
Individual
Stability
Change
Dogmatic
Inspirational
(rapidity & complexity)
• World view: mechanistic …>holographic
• Concept of man: economic –social –
humanistic– holistic– transpersonal
• Values: competitive – cooperative
• Thinking: analytical – creative --intuitive
• Organizational culture:
Power — role — achievement —
support
purse/person – vision.
• Management style:
Control & aggression ----caring & connection
• Role of manager:
Fear of losing – joy of doing.
GROWTH FACTORS (4 i)
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Innovation
Initial condition
Investment
Institution
INNOVATION (4i)
The main force behind growth
in developed countries
INNOVATION (4i)
Questioning mind
Take diverse views
(age, gender, profession,
opposition)
Observe a lot more
Experiment (long term)
Leadership driven
INITIAL CONDITIONS (4i)
• Poor countries have the potential to
catch up
• Grow at rates faster than the rich
countries until they converge to the
same income per capita.
INVESTMENT ( 4i)
• Should be > 25% of GDP
• Korea: 35%, US:18%, M’sia:18%
• Human Capital
• Technology
• Efficiency
IMPORTANCE OF EDUCATION
Bill Gates : Going back to school
No. 1 Economic priority must be
EDUCATION
& TRAINING
IMPORTANCE OF TECHNOLOGY
INSTITUTIONS (4i)
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Legal system (fair)
Central bank (independent)
Check & balance
Transparency
Institutions should facilitate (not frustrate)
business creations
• (these lead to business confidence)
INSTITUTIONS (How to measure?)
Singapore
To open a
business
6 procedures
6 Days
Entrepreneur Make 16 payments
Spend 30 hours
s need to
Brazil
17 procedures
158 Days
Make 23 payments
Spend 2,600 hours
(processing tax
(processing tax
forms)
forms)
Pay 28.81% of profit Pay 71.69% of profit
in taxes
in taxes
GROWTH FACTORS (4 i)
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Innovation
Initial condition
Investment
Institution
3 EMOTIONS
•FEAR….gosh !!!
(Americans and Europeans)
• Insecurity (safety)
• Losing identity
• Left behind in the dynamic world
– Eg: GM, Chrysler
• Mexicans crossing the border
• HUMILIATION Arabs
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I can’t do it, no future (today < yesterday
temptation to destroy the world
• Americanization of the world
• Stolen dignity and western imperialism
• HOPE Asians
• We can do it
• Tomorrow is better
• Positive outlook
3 EMOTIONS
TRUE VALUE
• GRAPH
Investment
• Value Creation is the goal
• (not the market price)
• Blue line
• Long term value vs KPI
CARLOS GHOSN
• French Lebanese
• CEO of Renault & Nissan
Motor.
• Voted Man of the Year
2003 by Fortune
magazine's.
• Board of Alcoa, SONY,
and IBM.
• Revolutionise Nissan &
Japanese Management
Leadership @ Charlos Ghosn
Simple
Open
Hard work
Accountable
Speed
Passion
Focus
Clear and Decisive
Fair Process (5e)
- a decision making process
FAIR PROCESS (5e)
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Engage & Frame
Explore & eliminate options
Explain, deciding & set expectation
Execute & realizing
Evaluate, learn & adapt
BLUE OCEAN STRATEGY
• Value innovation
• New market space
(uncontested)
• Blue ocean (not red ocean)
• RICE (reduce, increase,
create & eliminate
• Beyond Industry standard
(standard cannot see:
Formula 1 hotel)
Strategy Canvas of ACCOR’s
Formule 1 Hotel
Metanational
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National
Multinational
Metanational
……. CEO in Paris,
VP in Sao Paolo & Shanghai
(no specific national identity)
Unlearning current business model
3rd Culture
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Third culture person
World culture
International personality
NETIZENS – a community of internet
users
The world is their home
•
All competitors now
have an equal
opportunity
•
Largely through the
convergence of PC
with fibre optic cable
(telecommunications
technology)
Serendipity
• Serendipity is the effect by which one
accidentally discovers something
fortunate, especially while looking for
something else entirely.
• The word has been voted as one of the
ten English words that were hardest to
translate in June 2004 by a British
translation company
SELF
• Balanced: body, mind, emotions,
neuro sensory system and
consciousness
• Sunshine :(have to, like to & able to
do)
• Be proactive & reactive
• Dying people: 5 stages
• Honesty: the most important quality
..
Living for business
Adding years to
your life
Making yourself a
living
Business of
living
Adding life to
your years
Making a life for
yourself
CONTENT of Coursework
•
•
•
•
•
•
•
•
The emerging economy
Raplexity
Growth factors (4i)
Convergence theory
Innovation
Investment (true value)
Human Capital
Leadership
CONTENT of Coursework
•
•
•
•
•
•
Fair process (5e)
3rd Culture
Blue Ocean Strategy
Metanational
Serendipity
Self
Strategy
Planned
Structure
Hierarchy
System
Staff
Style
Skills
Rigid
Entrepreneurial
Network
Flexible
Title and rank
helpful
Being
Problem solving
Transformational
“To compete” “To build”
Better sameness
Shared values Meaningful difference
Focus
Source of
strength
Leadership
Institution
Individual
Stability
Change
Dogmatic
Inspirational
• Kebahagiaan / keseimbangan dalam
hidup
• Barakah/rasa bertuhan (serendipity)
• Kembali kepada asas (back to basics)
Merci
Beaucoup