Xinfu blog

Steve, Hugh and Michelle joined John Connolly, Global Chairman of Xinfu client Deloitte, and CEOs and senior leaders including Peter Voser of Shell, Andy Green of Logica, Savio Kwan of Alibaba, Ravi Kant of Tata Motors and Vittorio Calao of Vodafone to debate “New Frontiers: Expansion, Opportunity and Innovation” at LBS’ flagship event, the Global Leadership Summit.

The event ranged widely and included some memorable exchanges – in particular, the very lively and stimulating panel discussion between Savio Kwan, Ravi Kant and Mo Ibrahim, Chairman and Founder of the Mo Ibrahim Foundation and Founder, Celtel.

A selection of the key CEO questions the team felt remain unanswered include

-          How do you build a business that consistently innovates new products and services on a global scale?

-          What type of leaders do you need in your particular business to drive out performance in the near term and long term business leadership?

-          How do you use rising talent to spot commercial opportunity?

We will be examining these questions in detail in the forthcoming “The Secrets of Chinese CEOs”.

Read more about the event here.

Catch up with Steve and Michelle at the Fortune/Time/CNN Global Forum from 26-28th June. The global CEO event is being hosted by President Zuma.

With the spot light on Africa, Steve and Michelle will join senior CEOs from around the world to work through topics including applying lessons from China to Africa, Clean tech for the developing world and Woman as a Catalyst for Growth and Change.

We’ll be tweeting on developments throughout the conference and blogging on our thoughts and conclusions coming out of it.

For further coverage on all major media channels, with special coverage by CNN and Time, click here for Fortune Global Forum website and further details.

Steve really enjoyed joining other senior CEOs to discuss for the Insead 50^th Anniversary Leadership Summit at Fontainebleau. More details here.

Steve and Michelle joined the annual Boao Forum for Asia that took place over April 9-11^th weekend. Asia’s own Davos platform attracted more than 1,000 leaders in Government and global business to discuss this year’s theme: Green Recovery: Asia’s Realistic Choice for Sustainable Growth. The conference kicked-off by a charismatic speech from China’s Vice-Premier Xi Jinping (appointed successor to Premier Hu Jingtao), along with the 74^th US Treasury Secretary Henry Paulson, former Australia Prime Minister Bob Hawke, and current Danish Prime Minister Anders Fogh Rasmussen.

From the business side, Steve joined the ranks of global Chairmen, CEOs, and leading Chinese entrepreneurs in looking at Asia’s road to development and its next global challenges. With many key discussions surrounding the post-economic recession environment, there was much debate on:

- Developing new solutions: Panelist shared their thoughts on rethinking growth and adopting counter cyclical strategies. Also learning from top Asian firms who have adopted M&A strategies, “Asian countries cannot acquire Western companies without global culture” Mohamed Al-Mady, Saudi Basic Industries Corp. said, and also suggested for other CEOs to “give people time to adjust, and then do what you want to do.”

“When scoping M&A deals always look at well represented, long-term, low cost companies” (Xiong Weiping, Aluminum Corporation of China)

“It’s about finding key people to understand local business, to go to the new company” (Harsh Pati Singhania, JK Organization)

- Redefining Corporate Governance: Are companies too big to fail? What are the new building blocks for corporate governance, and how easy or complicated should this be? Fred Hu (Goldman Sachs) urged for “simple, smart, and effective regulations.” While many China housing market questions were directed at Liu Mingkang (Chairman of China Banking Regulatory Commission) who emphasized the upcoming regulations to the lending market: “Collateral cannot be used to buy a piece of land; we have changed the way loaning has been to the developers, we will be more selective, regulatory, and handle transactions internally rather than outsourcing to agencies – prevention is better than the cure!”

- Looking at new ways to lead: Does Asia have the will and drive towards a Green and sustainable environment, who will lead it? And what does the new environment mean for CEOs?

“Since the recession, China has brought the lifeline to the world economy. This means that in the new environment, Chinese companies will have to continue to save more energy, adopt a new life revolution, and recognize the China market will continue to develop which represents a challenge as well as an opportunity.” (Chen Feng, HNA Group)

“Business leaders should think about a lesson from the Chinese housewives: who do not buy the morning fresh fish at the fish market for full price, but rather wait till 5pm when the market is about to close and all fish are on sale for 50% off, while the taste is still the same!” (Wei Jiafu, COFCO)

After the conference, our questions still remain on follow-up:

- With the recognition of what must be done, and which areas need more focus coming out of the recession, how will CEOs address areas for change? How will they implement the measures for change?

- There is now a recognition of what needs to be done, but not enough of how to do it

- How does a corporation measure success? Should be more continued discussion about changes in measuring change

- Changes discussed may not be done, because entrepreneurs are over loaded, and business is still doubling, making it harder for their middle management to stay in pace with the company

-  Still worries about talent, not enough focus on smarter solutions rather than work harder or making up responses to opportunities – however, there is a real sense of belief that Eastern leaders can do it (and not necessarily copying from the West)

- Still confusion of governance model going forward, reinventing governance which is not just process related step but also involves changes in management, and risk and reward systems – danger of western companies being so risk adverse because of what has happened in the recession

You can read more about the conference coverage at the Boao Media website.

Steve and Michelle tomorrow join over 1,000 Asian CEOs and leaders on Hainan Island, China, for the 8^th Boao Forum, “Asia Going Green: The Road to Sustainable Growth”.

As usual, the forum will see Asia’s most influential leaders debate the aftermath of the global crisis, and in particular, Asia’s green challenge, with numerous global peers.  There’s much for Chinese and Asian leaders to be extremely proud of, and for Western leaders to take note of, but Steve and Michelle will also be looking to lay out the business and personal leadership challenges they also undoubtedly face. 

It promises to be a powerful exchange – and we’ll tweeting on developments throughout the conference and blogging on our thoughts and conclusions coming out of it. 

For further coverage, in particular keep an eye on CCTV, Bloomberg, CBNC, New York Times, Fortune, WSJ, and the BBC. Boao website is here.

Steve gave a keynote at Europe’s key Private Equity forum – SuperReturn 2010 – in Berlin yesterday.

He was then joined by three top CEOs with wide ranging experience as the leaders of publically, privately and family-funded businesses: Paul Thompson, former CEO, FTSE100 Resolution, James Bilefield, President, Conde Naste International Digital and Nick Basing, CEO, Essenden for panel and Q&A sessions: “On The Inside Looking Out: Portfolio Managers’ Perspectives On Private Equity”.

One thing really stood out for Steve and the panellist.  Consensus is building among the top buy out firms and LPs that the traditional private equity model – very crudely, buying businesses  in growing economies and markets and gearing with cheap debt – cannot be relied on in the coming years.  More PE houses are chasing deals so prices are high – as is the cost of debt.  So, as several very senior figures underlined to us, what’s left is developing higher quality management teams to drive superior organic returns.

And this is where the industry faces a major challenge.  GPs need to stop talking about “operators” and “portfolio managers”.  Professional managers are simply not going to drive the organic growth required in these markets (for more, see The Secrets of CEOs).  GPs need to ensure they have true commercial leaders running their businesses effectively across the whole CEO agenda and delivering both short term business performance and long term growth.

For an industry traditionally grounded in rigorous financial analysis and less experienced in developing leaders, that’s no mean challenge.  Good luck!

Steve and Hugh joined 1,000 Chinese CEOs, government figures and senior executives at the 8th China Entrepreneur Summit in Beijing over the weekend.

Steve spoke alongside CEOs like Jack Ma of Alibaba, Liu Chuanzhi, President, Legend (owners of Lenovo) and Yu Minhong, Chairman, New Oriental Education & Technology Group.  Warning CEOs of Chinese units of multinational businesses that the crisis would typically make their global CEOs ration capital, rely more heavily on strong Chinese growth to hit their targets and want to install stronger process oversight of Chinese subsidiaries and JVs, Steve urged Chinese CEOs to:

- Be bolder in their targets  – now is the time to go again

- Welcome the increased interest and scrutiny from their overseas HQs – but contain it appropriately and on their terms

- Take their units with them not only from the head but the heart

- If necessary adopt “guerrilla” tactics and ask forgiveness for smart commercial moves rather than fight the system to have them approved.

The China Entrepreneur Summit is The annual CEO forum in China.  Hosted by China Entrepreneur Magazine, China’s answer to Fortune, it invites the most expert Asia speakers and panelists from across China, the region and the world to find the best way through the most topical challenges.

This year’s summit focused in particular on:

1. Deep concern for the environment. One senior pannellist spoke for many when he said, ““we need to change from the old focus on big and luxury…we need a simpler, less extravagant way of life”.  With Beijing clouded in smog and tales of leaping increases in cancer and rivers choked by pollution, it is easy to feel the urgency with which reform is needed.  With massive pollution from state owned enterprises (“SOEs”) and state-sponsored activities such as public transport policy, will the government deliver?

e.g. Some private companies are stepping in themselves – “at Alibaba, the 9 senior managers take 1 day every quarter simply about water and environmental problems”  (Jack Ma)

2. Entrepreneurs’ relationship with the state. How much should entrepreneurs be expected to give back and to support civil society?  In contrast to the West, Chinese CEOs spoke openly and passionately on the critical role their businesses play in society, but there was also a strong undercurrent of feeling that the government is not doing enough to support business.  There was support from government ministers but they urged further action.  There’s no doubt the relationship between business and the government in China remains uneasy.

– “We have to balance social obligations and entrepreneurship” Liu Chuanzhi, Chairman and President, Legend Holdings

– “People and customers are key but public welfare comes first.  So, of course, pay a good salary and bonus but also you must practice people-focused management.  People must be at the core.” Cheng Siwei – Former Vice Chairman of the Standing Committee of the National People’s Congress

3. The role of SOEs. Continuing the debate between business and the government, many speakers spoke passionately about the need for the role of SOEs to be restrained to vital areas of national interest such as defence and natural resources.  Senior private company CEOs complained bitterly that SOEs, with implicit and explicit government support such as cheaper borrowing, skew many markets and restrain the growth of far more efficient and innovative private enterprises.

4. China’s increasing self confidence and desire to take its place as a leading power in the world. James McGregor is absolutely right that “the big change today is that the world is looking at China differently and China is looking at itself differently.”  Zhang Weiying, Dean of Guanghua School of Management, Peking University, where Steve spoke in October, pointed out that: “China is 20% of the world’s population.  When it is 20% of the world’s GDP, its standing will change.”

5. The need for Chinese businesses to start creating truly innovative products and, with Chinese firms starting to go out to global markets, to learn how to create global business models more quickly than the painful 20 years of Western firms gradually learning to work effectively in China.

You can read more about the conference and Steve’s role on the dedicated channel at Sina.com (in mandarin – here) and on China Entrepreneur Magazine’s website here (also in mandarin).

The conference ran from 5^th-6^th December at the Shangri-La China World Hotel in Beijing.  You’ll find pictures and footage from the conference here as we receive them.

Over the last seven years China Entrepreneur Magazine, China’s answer to Fortune Magazine, has built its annual CEO summit into The business leadership event in China. Steve is delighted to be joining the packed speaker list alongside luminaries like Ma Yun , (Chairman, Alibaba), Yang Yuanqing , (Board Chairman, Lenovo Group), Ning Gaoning (Chairman, COFCO), Wang Chuanfu, (President, BYD Group), Jin Zhiguo, (Chairman, Tsingtao Brewery), Li Yanhong, (Chairman, Baidu) to name but a few.

Full agenda, coverage of last years celebrity filled event and booking details here.

Event runs 5^th – 6^th December and is at Beijing World Hotel.

Steve is speaking and chairing a guest CEO panel at SuperReturn 2010 – The annual private equity conference 9th – 11th February 2010. Speaking alongside industry figures like David Rubenstein and Sir Ronald Cohen, Steve will be joined by friends and colleagues Paul Thompson (former CEO Resolution plc), James Bilefield (Conde Nast, formerly Yahoo & Skype) and Nick Basing (CEO, Essenden).

Agenda, latest brochure and tickets here.

Xinfu officially launched in London to a packed audience of CEOs, friends and press at the Hempel last night.

With CNBC cameras rolling, Sir John Parker, Chairman of Anglo-American, and John Connolly, Senior Partner and Chief Executive, kindly joined Steve on a panel unpicking how to keep people’s enthusiasm up in the downturn (“I simply see no benefit to our business of being gloomy!”), how to profit from the opportunities in the UK and globally as the economy picks up, how the Chairman maintains the right relationship with his CEO on the company’s voyage and how vital it is to have some fun in business!

The guests took the two Johns at their word and carried the party on well into the small hours.

See pictures and videos of the event in the image gallery.