Client Problem
China's senior government leadership decided to seek an international listing of our client, a major industrial group. The government had two explicit objectives: to restructure the company's finances, and to spur performance through greater transparency and accountability.

Implementing a Transformation
McKinsey worked closely with a team of investment bankers, accountants, and lawyers to fundamentally redesign the company. We developed a new business plan, set value-creation targets, restructured the company into business units, established new governance mechanisms, launched a new compensation program, and designed new corporate planning and management processes. The effort involved more than 20 consultants working in parallel with a client team of over 100 people on a full-time basis. It resulted in the establishment of an independent, international board of directors, a break-through in China's state-owned sector. McKinsey then worked with the investment banking team in communicating the company's value to the marketplace.

Assessing the Impact
The project resulted in one of the largest listings of a foreign company on US equity markets, and initiated the process of fundamentally reshaping the company from a bureaucratic administration to a value-oriented corporation. Within six months of listing, the client's stock price appreciated by more than 60 percent.