McKinsey Greater China

Karel Eloot, Senior Partner at McKinsey and Co-Leader of the firm’s Global Metals and Mining Practice and Greater China Industrial IoT Hub, recently addressed the 14th China International Steel Congress with a speech titled "Building Digital Lighthouses in the Steel Industry through Accelerated Digital and AI Adoption." He emphasized that digital transformation is key to tackling disruption in the steel industry and shared insights from the WEF Lighthouses for the industry. The Global Lighthouse Network, a collaboration between the World Economic Forum and McKinsey & Company, aims to establish benchmarks for manufacturing excellence. Currently, there are 189 "Lighthouse Factories" and 25 "Sustainable Lighthouses" worldwide, with 79 "Lighthouse Factories" in China. The steel industry boasts 8 "Lighthouse Factories" globally, including 3 in China, and 1 "Sustainable Lighthouse." ⭐ "Lighthouse Factories" can be certified in five categories: productivity, supply chain resilience, customer centricity, sustainability, and talent development. 💡Karel highlighted five critical areas of development from "Lighthouse Factory" practices that can accelerate digital transformation in the steel industry: 1️⃣ Business-driven end-to-end value stream transformation: Collaborate with supply chains and ecosystems to unlock value potential. 2️⃣ Multi-site scaling: Leverage proven solutions and customize them for different scenarios; a unified digital infrastructure is crucial. 3️⃣ Adopting cutting-edge technologies: AI applications can drive industry leadership, with growing use cases in "Lighthouse Factory" projects. 4️⃣ Reshaping talent skills and driving organizational change: Transform collaboration between employees, data, and equipment using AI for performance management. 5️⃣ Driving sustainability through digital technologies: Apply AI to circular economy and carbon reduction for significant benefits. By adopting these strategies, companies in the steel industry can accelerate their digital transformation and achieve sustainable growth. The insights from "Lighthouse Factories" provide a roadmap for the industry to embrace digitalization and emerge stronger in the face of disruption. #lighthouse #WEF #steel

📢 Join us for the "Life as a Business Analyst" virtual recruiting webinar to learn about life as a McKinsey consultant in the Greater China Region!     💡 You'll also have the opportunity to hear interview tips and gain direct insights from our people on how to prepare and excel in your interviews with McKinsey.     🎓 If you are graduating in 2026 or 2027 and are interested in applying for a Business Analyst or Business Analyst Intern position, sign up now!  Mainland China session:   https://lnkd.in/g4Vcu4SQ    Tuesday, August 26th, 8-9pm China Standard Time Hong Kong session:   https://lnkd.in/gmjenFC2   Tuesday, September 9th, 2025, 8-9pm China Standard Time   Taipei session:   https://lnkd.in/gS3dMxJE   Wednesday October 15th, 8-9 pm China Standard Time #McKinsey #McKCareers #GreaterChina #consultingcareers #businessanalyst #recruiting  

To stay competitive in the global market, Taiwan's companies need to prioritize building a strong foundation in talent management. In his new article in Manager Today, Jeffrey Liu, Partner at McKinsey's Taipei Office, outlines four key areas for success:   1️⃣ Develop a Meaningful Corporate Culture: Move beyond slogans and define a culture that reflects your company's true values. Translate these values into specific, measurable behaviors that employees can achieve. For instance, if "accountability" is a core value, clearly define what behaviors demonstrate it, such as taking initiative or persisting through challenges. Leadership must lead by example to ensure employees understand and embody these values. 2️⃣ Establish a Structured Performance Management System: Link performance evaluations to organizational goals and rewards. Cascade top-level KPIs down to various organizational levels, ensuring everyone is working towards common objectives. This transparency and objectivity foster a culture of accountability and high performance. For example, setting clear KPI targets and using performance dashboards can boost sales performance by 1.5 to 2 times within months. 3️⃣ Attract Global Talent with a Compelling Value Proposition: Offer more than just competitive compensation. Provide a clear vision, a supportive environment, and opportunities for personal growth. Taiwan's companies expanding overseas must attract global talent by showcasing their unique strengths and opportunities for career advancement. This includes having systems in place to integrate global talent into the existing management team and providing platforms for them to excel. 4️⃣ Implement Proactive and Clear Succession Planning: Identify potential successors early, set clear handover timelines, and develop a plan for capability development. This ensures that future leaders are equipped to drive the company forward. Succession planning is a top priority for CEOs, but few companies have a systematic process in place. By doing so, companies can build a robust talent pipeline and maintain continuity.   By focusing on these four key areas, Taiwan's companies can build a solid talent foundation, drive business growth, and gain a competitive edge in the global market.   #taiwanesecompanies #strategy #talent

McKinsey Partners Tina Hou and Forest Hou's latest op-ed in the Hong Kong Economic Times explores how "Lighthouse" factories are leading the way in digital transformation for the pharmaceutical and medical industries.   💡 Here are the key takeaways: 1️⃣ The strong get stronger: "Lighthouse" enterprises scale their business quickly through systematic design and capabilities in production and operation networks. 2️⃣ AI empowerment: Analytical and generative AI create higher value in asset management, quality management, and supply chain planning. 3️⃣ Accelerating deployment: "Lighthouse" factories continuously learn from others and enhance their deployment capabilities for digital and AI solutions.   🔷 The article highlights a multinational pharmaceutical company that achieved remarkable results, including a 40% increase in productivity and significant reductions in waste and emissions.   To succeed in digital transformation, enterprises should clarify business value, deepen AI applications, and reshape their organization to enhance collaboration. Read the full article (link in comment) to discover how the industry can break through traditional production models and achieve leapfrog development in quality control, flexible production, and green manufacturing.

In a recent article on Capital 資本平台, Nicole Zhou, Senior Partner and Leader of McKinsey Financial Institutions Practice in China, explores the transformative impact of Generative AI (GenAI) on the banking industry. As global economic uncertainty continues, investing in GenAI has become a crucial driver for development, making its adoption a necessity for regional banks.   Here are the key takeaways: 1️⃣ GenAI is being rapidly adopted in the banking industry, with applications expanding from internal operations to customer-facing services. 2️⃣ Intelligent agents can handle complex tasks, providing one-stop solutions and potentially becoming virtual colleagues for practitioners. 3️⃣ GenAI is expected to increase bank profits by 60% to 80% over the next three years, driving productivity growth and enhancing banking efficiency. 4️⃣ The four sectors with the greatest potential for efficiency gains are software development, business operations, marketing, risk control, and legal affairs.  5️⃣ Regional banks must master three key areas: path selection, strategic integration, and ecological synergy to successfully adopt GenAI.   As global banks lead the charge in GenAI adoption, regional banks must balance innovation with their organizational ecosystem to remain competitive. With limited resources and a desire for effectiveness, regional banks need to identify strategic pivots and build differentiated advantages.   Read the full article (link in comment) to learn more about the opportunities and challenges of GenAI in banking and how regional banks can thrive in this new landscape. McKinsey Financial Services #GenAI #Banking #RegionalBanks #DigitalTransformation

Only one in ten companies manages to climb from the middle to the top of the Economic Profit Power Curve over a decade.   What separates these Strategy Champions from the rest? They embrace all 12 building blocks of the Strategy Method, from design to mobilization to execution. They are particularly strong at designing brilliant visions and mobilizing the right set of strengths to bring them to life.  #strategy #leadership #mckinsey

Tim Lin, an Associate Partner in McKinsey's Taipei Office, recently published an article in Commercial Times, where he shares his experience collaborating with top technology manufacturing companies in Taiwan.   The article highlights that successful digital transformation goes beyond just implementing new technologies like ERP systems, AI projects, or digital platforms. It's about fundamentally redefining how a company operates, from customer interactions and product design to daily decision-making processes.   Here are the key insights from the article: 🔷 Digital transformation requires a comprehensive transformation of the entire organization. 🔷 Companies should start by envisioning their future state (3-5 years ahead) rather than immediately focusing on digital tools. 🔷 Redesigning core business processes is crucial to align with changing goals, such as increasing profitability or improving operational efficiency. 🔷 Cross-departmental collaboration between R&D, procurement, and manufacturing is essential for successful product design and scaling up the transformation. 🔷 Digital tools, including generative AI, enable new ways of decision-making and collaboration across departments. 🔷 Leadership plays a critical role in driving transformation.   By adopting a holistic approach to digital transformation, businesses can unlock new value, improve efficiency, and gain a long-term competitive advantage.   Read the full article for more of Tim’s insights (link in comments).

Karel Eloot, Senior Partner at McKinsey and Co-Leader of the firm’s Global Metals and Mining Practice and Greater China Industrial IoT Hub, was interviewed by China Daily during the World Economic Forum’s annual "Summer Davos" in Tianjin. Karel highlights China's robust foundation in digitization, driven by its advanced technological infrastructure and mature digital ecosystem. 💡 Here are his key insights: 🔷 China has a strong foundation in digitization, with good technological infrastructure, including 5G and a world-class digital ecosystem that has evolved from B2C to B2B settings. 🔷 Chinese companies have been at the forefront of adopting digital technologies, with a strong focus on experimentation and innovation. 🔷 The country is home to 40% of the nearly 200 "lighthouse companies" identified by McKinsey and the World Economic Forum since 2018, which are leading the way in digital analytics and technology transformation. 🔷 The integration of IT and operations technology in factories has created a fertile ground for further innovation, driven by the Industrial Internet of Things (IIoT). 🔷 China's talent pool has played a crucial role in driving digital transformation, with professionals who can bridge the gap between technology opportunities and business problems, creating new value and business opportunities. Karel is optimistic about China's continued digital transformation, citing the strong foundation, innovative companies, and talented professionals. Watch the full interview (link in comment) to learn more about China's digital transformation and the opportunities and challenges that lie ahead. #WEF #AMNC25 #lighthouse

Joe Ngai, Chairman of McKinsey Greater China, sat down with CGTN’s Michael G. Wang at the World Economic Forum’s annual "Summer Davos" in Tianjin. Joe shared insights on China's economic transformation, highlighting its shift towards a more service-oriented and innovation-driven economy. He also discussed the implications for global businesses, emphasizing the need for multinational companies to adapt to China's rapid pace of innovation and changing consumer preferences to remain competitive. Here are some key takeaways from their conversation: 🔷 China's Economic Transformation: China is progressing towards a more service-oriented and innovation-driven economy, with services now accounting for 50% of the economy. 🔷Global Business Strategy: Multinational companies need to offer compelling value-for-money propositions to remain competitive in China, where consumers prioritize price and product relevance over brand origin. 🔷Pace of Innovation: The rapid pace of innovation in China, with new developments occurring in days and weeks, poses a challenge for multinationals, but also presents an opportunity for them to adapt and improve their agility. 🔷AI Adoption: Chinese companies are leveraging AI for growth, with a focus on data-driven innovation, and are likely to be among the first to effectively utilize AI due to their digital-native business models and high-quality data. 🔷Future Arenas of Competition: China is well-positioned in various future industries, including robotics, biotech, and sustainability, with Chinese companies already leading in areas like electric vehicles and e-commerce. 🔷Global Competitiveness: Chinese companies are maturing and becoming global corporate citizens, with the potential to collaborate and form alliances with international companies, driving win-win solutions. Watch the full interview to gain insight on China's economic transformation, the evolving competitive landscape, and the opportunities and challenges that global businesses face in this dynamic market. (link in comments) #AMNC25 #summerdavos #WEF

Frank Chu, Managing Partner of McKinsey’s Taipei Office, published his latest column in Taiwan’s Manager Today Magazine about what Taiwan firms can do to attract, develop, and retain top talent. In today’s ultra-competitive landscape, Taiwan companies aren’t just competing with one another—they’re up against global firms in the race for exceptional people. Frank shares three actionable shifts that local businesses can make: 🔷 Recruit for leadership potential, not just technical skills—especially in emerging areas like data science and software. 🔷Implement fair, structured, and transparent performance reviews—using 360-degree feedback and collective decision-making. 🔷Accept—and even embrace—talent mobility by designing accelerated growth paths and seeing each departure as a reputational investment. Read the full article (in Chinese) in Manager Today’s July/August 2025 edition (link in comments)#Leadership #TalentDevelopment #TaiwanBusiness