Long Term Capitalism A Lunch Presentation By McKinsey & Company Jointly organised by: Date: Venue: Time: SID Member: Non‐SID Member: Singapore Institute of Directors and McKinsey & Company Friday, 30 March 2012 Marina Mandarin Hotel Singapore 12noon to 2.00pm S$160.50 (Inclusive of GST) S$214.00 (Inclusive of GST) Synopsis For more than a decade leaders in business, finance, government, and academia have voiced concern that the over‐riding pressure to demonstrate short‐term performance is increasingly eclipsing long‐ term business planning and investing. Indeed, many believe the tyranny of the short‐term in public markets today contributes to business volatility, poor governance, capital inefficiency, and increased tension between business and society. In regard to the latter, trust in business is declining, and with it support for the capitalist system as a whole. McKinsey's research programme aims to better understand the incentives and behaviours driving short‐termism in the investment chain—from capital owners to the executive suite—and identify actions to foster longer term perspectives and more efficient capital allocation. Chinta Bhagat and Naveen Unni, partners at McKinsey, will present preliminary findings and emerging solutions from their research on this topic Programme 11.30am 12 noon Registration 1.00pm 2.00pm Presentation by Chinta Bhagat & Naveen Unni/Q & A Partners, McKinsey & Company Networking Lunch End of Programme About the Speakers Chinta Bhagat Partner McKinsey & Company Mr Bhagat is a Partner at McKinsey & Company, based in Singapore, and is a leader in McKinsey’s Global Principal Investor Practice (covering Private Equity, Sovereign Wealth, Family Office, Hedge Funds, Diversified Holding Companies). He leads the Portfolio Performance service line for Asia (working with Principal Investors on improving portfolio companies), as well as the Governance service line globally (working with chairmen and non‐executive board members on governance effectiveness). He was elected Partner in 2006, and from 2007‐ 2009, was Managing Partner of McKinsey’s Singapore practice. His recent work (2009‐2010) falls into three categories: On making investments and improving portfolio performance:  A large number of business due diligence projects for all types of principal investors: a few examples of such projects include three due diligence projects on healthcare companies in Singapore, India, and Thailand; an airline in Latin America; a mobile telco in Japan; a global alternative energy equipment producer, and a global shipping line, to name a few; all conducted over 2008‐2010.  International market entry strategies PE players in China, Africa, India  Sector scans for PE and SWF players in mining, agri products, cleantech, transportation, healthcare, particularly focused on China and Latin America  Creating major long‐term investment themes for one of Asia’s largest principal investing firms; from initial identification, to structuring and development, to identifying investment targets, to deploying capital. Themes being pursued are cleantech, water scarcity, education, frontier geographies, resources  Developing growth strategy for an Asian family owned conglomerate across China, Taiwan, and India; involved in a variety of sectors such as healthcare, engineering/construction, automotive manufacturing, real estate and transportation.  Several multi‐year efforts on improving the operational performance of companies; from discrete topics like procurement to end‐end business turnarounds to replicating high‐performing operations across units/countries; across healthcare, transportation, offshore construction, real estate On ‘firm‐building’ topics for principal investor firms:  Worked with a major Asian sovereign wealth fund to set corporate strategy; create corporate center capabilities to enhance the ownership function (talent management and succession planning, performance management and portfolio reviews, etc). The work involves multiple projects over the 2007‐current period  Working with the owners‐entrepreneurs of fast‐growing conglomerates to better define their roles as owners, governors and managers; and helping the business owners set and achieve their individual aspirations separate from corporate strategy  Working with a global private equity firm to create their overall strategy; across sectors, geographies, themes; creating the blueprint for implementation; launching several initiatives and seeing them through a full investment cycle (including recruiting investment managers); and designing their portfolio management function On improving the governance for principal investor firms:  Working with the chairman, board and CEO of a major global transportation company owned by a private equity firm, on aligning their (majority) shareholder expectations with management strategies, designing and driving multi‐initiative transformations to deliver against these strategies; counseling the incumbent and two potential CEO candidates to prepare for succession; preparing the board to assess business environment and make decisions on critical issues.  Supporting a family‐owned business conglomerate on (re) designing their board committees, selecting members (from existing and external candidates), establishing new practices tailored to the sector and context of the company, and running the first meeting as a pilot to ensure success. From 1993‐1999, Chinta was in various positions at Quadricon, a company owned and controlled by his family, culminating in his role as CEO. The company is involved in the engineering and construction business, deploying a patented, prefabricated steel construction technology to developing large‐span structures. Over 1998‐99, Chinta also gained boardroom experience at a venture capital firm in Mumbai, working with young enterprises on professionalizing their management teams. Prior to joining McKinsey, Chinta graduated with an MBA from INSEAD Business School in 2000, in Fontainebleau, France, majoring in Strategic Management and International Business. Chinta has an undergraduate degree in architecture from the Technical Board, Government of India, and a membership of the Institution of Civil Engineers. Naveen Unni Partner McKinsey & Company Mr Unni is a Partner with McKinsey’s Chennai office. Since joining McKinsey in 2003, he has worked in multiple sectors, including retail and hospitality, oil & gas, metals & mining, industrial equipment manufacturing, engineering & construction and infrastructure. While he has worked on solving strategic, operational and organizational issues for his clients, his passion has been in the fields of organisational performance and leadership development. His experience in McKinsey includes the following:  Designed the India strategy for a multi‐national infrastructure and construction company.  Designed and implemented a 3 year leadership development program at a major infrastructure company. The work included designing and delivering the program for over 200 middle and 30 senior managers in the organization, designing critical support HR systems and processes to enable impact across the organization and making the leadership development process sustainable.  Led a lean operations transformation for the buildings construction division of a major infrastructure company. The work included creating the transformation framework, implementing the lean methodology at pilot sites and rolling it out to the network, creating capabilities in the organization simultaneously.  Designed and implemented a cadre building effort at a large Indian energy company. The work included architecting the program, designing and program managing the recruiting phase and developing and program managing the development program – with key recruiting and development partners.  Led the business transformation effort of a large Indian energy company. The work included creating the business goals, identifying critical processes and detailing these out, and helping develop a cadre of leaders to execute these processes and achieve the stretch business aspirations.  Designed and delivered a large scale business transformation and leadership capability program for a large Indian bank.  Supporting a leadership development program for middle managers, as part of a larger transformation program in a large Indian metals and mining company. The work includes designing the program and delivering it in a lean mode, simultaneously ensuring that the program delivers on the stretch transformation goals.  Led an effort to create and develop a community of external facilitators who can work with McKinsey on capability building and leadership development at clients in India and the region.  Led a performance transformation engagement for a large Indian hypermarket retailer, across formats and functions.  Led an engagement on analyzing a brownfield refinery expansion for a mid‐size refining company and identifying ways to reduce capex cost for the expansion.  Led an engagement on creating a new business for an Indian chemicals player. Detailed the business plan for the identified business and initiated business building efforts.  Worked with a leading real estate company in developing their corporate strategy. Independently led three of the business unit strategy efforts, working with the respective client teams in developing the business strategy.  Worked with a leading international retail chain in developing their India entry strategy. Independently led the business model workstream, working with the client team in pressure testing key assumptions and shaping their thinking on India.  Developed the leadership model for a metals and mining company in India. Led the team working on creating a leadership engine, with immediate impact (staffing of ~200 roles and assessment of ~600 people) and long term sustainability (through implementation of changes in organization structure and policy).  Evaluated the overall corporate strategy for a mid‐size refining and marketing company, independently leading the oil retailing and natural gas strategies.  Worked with a leading engineering company across strategy and operations as part of an overall transformation effort.  Worked with a hotel chain on improving their overall profitability through an operations program focused on both revenue enhancement and cost reduction. Mr Unni lives in Chennai with his wife Vishaka and their 2 year old daughter, Rianna. He holds a diploma in business management from IIM Ahmedabad (in 2003) and a B.Tech in Civil engineering from IIT Madras (in 2001). Registration Please register online at www.sid.org.sg by 23 March 2012. 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