Shortlist: Dynamic or disruptive? Asia’s business leaders on the challenges ahead.

Our best ideas, quick and curated | July 22, 2022

This week, snippets of wisdom from a wide range of Asia’s business leaders interviewed by McKinsey since the pandemic began. Plus, the future of health equity, and six secrets of profitable airlines (yes, there are a few).

Image of several white folded napkins behind a red folded napkin

Stepping back. Business leaders in Asia have been focusing on some big issues, from the threat of climate change to sluggish infrastructure development to the rise of a new, digitally savvy generation. While the region’s dynamism is a given, leaders have had to navigate these challenges against the backdrop of a pandemic that has left no aspect of business or society untouched. In the video series Leading Asia, McKinsey asks some of Asia’s most influential business voices what they have learned from navigating the past few years of choppy waters and what they see as the greatest opportunities ahead for the region.

New ground. Top of mind now for the business leaders McKinsey has spoken with are how to tackle the weaknesses in performance among Asian companies that preceded the pandemic and how to position themselves for success in an era shaped by accelerating technological change. There is no question that in such a competitive region, new opportunities are arising in services, digitization, and technology that demand new capabilities. Against this backdrop, CEOs are shifting priorities and revisiting their own leadership journeys.

Reconnecting with purpose. Sumant Sinha, managing director of ReNew Power, India’s largest renewable-energy company, discusses his company’s position amid Asia’s energy transition: “We’re working to further our purpose and expand our role in civil society by starting more conversations about the need for a clean-energy transition and creating more pressure to make that transition.” India’s success will hinge on equality, Sinha notes: “I feel a personal responsibility to advance gender equality, but this is not just about doing the right thing. India will not realize its growth potential without achieving gender equality, including in the workplace.”

ESG as a core value. Karen Wood, chairwoman of South32, has devoted much of her time to environmental, social, and governance (ESG) issues, including what steps the Australian diversified resources company is taking to prepare for a low-carbon future and the opportunities for multistakeholder collaboration to tackle some of the world’s pressing challenges. “A clear purpose statement is a unifying statement and a benchmark to test decisions,” Wood tells McKinsey. “Ours is built off of three planks. First, to make a difference by developing natural resources to improve people’s lives. Second, to [consider the impact] on future generations. Third, to earn the trust of our owners and our partners so they know that we realize the value of their resources.”

Digital past, present, and future. Jessica Tan, co-CEO of Ping An, has been an architect of the Chinese conglomerate’s digital-ecosystem-based business model. In an interview, Tan discusses how the digital transformation in Asia is affecting professional services, as well as the synergies that big and small companies can share in digital ecosystems. When asked to picture Asian business in 2030, she says that we can expect digital to continue to blur industry lines, supercharge scalability, and loosen geographical restraints for professional services.

OFF THE CHARTS

Sustainable fuels are key to meeting 2030 decarbonization targets

Even in a world with fast electric-vehicle uptake, reaching regulatory greenhouse-gas-reduction targets for transportation could require a significant contribution from sustainable fuels. While the growth of battery electric vehicles in the passenger vehicle segment is strong, electrification of commercial-heavy transportation, such as trucks and buses, is expected only in the longer term.

Chart of projected source contribution to transport greenhouse-gas reductions among various EU countries in 2030

Check out our chart of the day here.

PODCAST

The future of health equity

“Health equity means all of us having equal access to healthcare, regardless of one’s circumstances, zip code, economic situation, or level of support.” So says Daniel E. Greenleaf, president and CEO of healthcare services company ModivCare. US-based ModivCare provides a platform of integrated supportive-care solutions, including nonemergency medical transportation, personal-care services, remote monitoring, and meals, for public and private payers and their patients. In this episode of the McKinsey on Healthcare podcast, Greenleaf talks about his family’s emphasis on service and how that shaped his mindset.