Nilf2012_Reimagining Japan Challenges and Opportunities in Japan_Georges Desvaux


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Nilf2012_Reimagining Japan Challenges and Opportunities in Japan_Georges Desvaux

  1. 1. Reimagining Japan ~ Challenges and opportunities in Japan February 14, 2012 India Leadership Forum CONFIDENTIAL AND PROPRIETARY Any use of this material without specific permission of McKinsey & Company is strictly prohibited
  2. 2. Reimagining Japan, released in July, features an unprecedented list of contributors Our objective: Jump start a more structured and constructive dialog on the future of Japan 75+ contributors (35% Japanese, 65% non-Japanese) 20+ CEOs from many countries and industries Key Japanese cultural figures (author, architect, coach, politician) Renowned international journalists (FT, NYT, Economist, etc.) Three Pulitzer Prize-winning writers International economic experts
  3. 3. What’s inside: Japan’s challenges more significant than ever <ul><ul><li>Stagnant economy (despite a strong yen) </li></ul></ul><ul><ul><ul><li>Public debt approaching 300 percent of GDP and deficits of pensions and health systems growing </li></ul></ul></ul><ul><ul><ul><li>Growing unemployment and temp workers </li></ul></ul></ul><ul><ul><li>World’s oldest, and fastest declining population in world </li></ul></ul><ul><ul><ul><li>Huge financial burden on society </li></ul></ul></ul><ul><ul><ul><li>Increasingly demoralized younger generation </li></ul></ul></ul><ul><ul><ul><li>Ignoring opportunities for women, immigration </li></ul></ul></ul><ul><ul><li>Weakening competitiveness across most industries </li></ul></ul><ul><ul><ul><li>Huge challenges globalizing </li></ul></ul></ul><ul><ul><ul><li>More intense competition from Korea, China, others in core industries </li></ul></ul></ul><ul><ul><li>Fading influence/importance on the world stage and an increasingly inward-looking orientation </li></ul></ul><ul><ul><li>Turbulent, ineffective political order and lack of leadership </li></ul></ul><ul><ul><ul><li>Ineffective government </li></ul></ul></ul><ul><ul><ul><li>16 Prime Ministers since 1989! (The United States has had four Presidents) </li></ul></ul></ul>
  4. 4. What’s inside: Japan’s formidable assets <ul><ul><li>Large scale economy – 3 rd largest in the world </li></ul></ul><ul><ul><ul><li>3 rd largest economy in the world </li></ul></ul></ul><ul><ul><ul><li>Large scale companies, many with large war chests </li></ul></ul></ul><ul><ul><li>Deep technology benchstrength </li></ul></ul><ul><ul><ul><li>2 nd largest investment in R&D </li></ul></ul></ul><ul><ul><ul><li>Largest share of technology patents in many field </li></ul></ul></ul><ul><ul><li>Strong work and service ethics </li></ul></ul><ul><ul><ul><li>Attention to quality and precision </li></ul></ul></ul><ul><ul><ul><li>Ethos of cooperation and service spirit at work </li></ul></ul></ul><ul><ul><ul><li>Highly disciplined workforce </li></ul></ul></ul><ul><ul><li>Creativity and sense of design </li></ul></ul><ul><ul><ul><li>Strong culture and art tradition/connoisseurship </li></ul></ul></ul><ul><ul><ul><li>Innovation in games and design </li></ul></ul></ul><ul><ul><li>Undertapped potential in women </li></ul></ul><ul><ul><ul><li>Fast rise of women education level </li></ul></ul></ul><ul><ul><ul><li>Women rise in workforce offers large potential for growth </li></ul></ul></ul>
  5. 5. Offering a 20-year roadmap to move forward … <ul><ul><li>Restructuring and globalizing Japanese companies </li></ul></ul><ul><ul><ul><li>Reducing overcapacity </li></ul></ul></ul><ul><ul><ul><li>Creating global champions </li></ul></ul></ul><ul><ul><ul><li>Refining the performance culture </li></ul></ul></ul><ul><ul><ul><li>Unleashing entrepreneurism </li></ul></ul></ul><ul><ul><li>1 </li></ul></ul><ul><ul><li>The case for radical education reform </li></ul></ul><ul><ul><ul><li>Developing more independent-minded students </li></ul></ul></ul><ul><ul><ul><li>Creating global citizens; making English a second national language </li></ul></ul></ul><ul><ul><ul><li>Making leading Japanese universities regional academic centers </li></ul></ul></ul><ul><ul><li>2 </li></ul></ul><ul><ul><li>Turning demographic change into opportunity </li></ul></ul><ul><ul><ul><li>Developing businesses related to seniors </li></ul></ul></ul><ul><ul><ul><li>Taking advantage of a highly educated female workforce </li></ul></ul></ul><ul><ul><ul><li>Seeing immigration as a source of possibility </li></ul></ul></ul><ul><ul><li>3 </li></ul></ul><ul><ul><li>Leadership for a new era </li></ul></ul><ul><ul><ul><li>Making leadership and performance a priority </li></ul></ul></ul><ul><ul><ul><li>Globalizing corporate management </li></ul></ul></ul><ul><ul><ul><li>Promoting leadership development </li></ul></ul></ul><ul><ul><li>Looking to an Asian future: Building closer ties with Asia </li></ul></ul><ul><ul><ul><li>Living with, and trying to benefit from, China </li></ul></ul></ul><ul><ul><ul><li>Investing in the future of Asia </li></ul></ul></ul><ul><ul><li>4 </li></ul></ul><ul><ul><li>5 </li></ul></ul>