What do the most successful organizations have in common? For Joe Ngai, Senior Partner and Chairman of McKinsey & Company in Greater China, the answer lies in understanding their own challenges while remaining ambitious in exploring new opportunities.
During the November edition of our “CEO 123 Tell Me More” talk, Joe shared insights on how organizations can thrive in today’s global business environment.
“Many of our clients face this situation: when there is no change in personnel among senior executives for a prolonged period, it becomes difficult to drive change,” he explained. He added that when everything follows established procedures and team members begin to feel like family, accountability weakens.
To counter this, Joe emphasized the importance of refreshing leadership teams with new talent to inject vitality into the organization. “It is crucial to take risks by bringing in individuals with innovative mindsets,” he explained.
Joe also highlighted McKinsey’s progress in embracing diversity. “The company recently celebrated its centenary, giving us a chance to reflect on our journey,” he said. “In the early days, the photos only featured foreigners. Over time, we began hiring candidates from diverse backgrounds.”
When asked about building strong teams, Joe recommended hiring people who share the same passion. “Those who know how to work with limited resources are especially valuable. But it takes trial and error to discover your own leadership style,” he said. For team leaders, he stressed the importance of being open to diverse opinions while remaining assertive in challenging situations.
Despite efforts to foster a vibrant culture, organizations often face blind spots, and this is where consultancy firms can offer fresh perspectives.
“Consultants will always be needed. Our role is like that of a football coach – we might not be the best players, but strategic guidance from the outside is essential,” he said. By conducting a thorough evaluation, the company helps its clients establish a clear way forward.
On Hong Kong’s development, Joe observed that many local businesses missed out on the opportunities brought by the tech wave over the past decade. However, with the city’s startup ecosystem evolving rapidly, he remains optimistic about future growth.
He pointed out that industrial diversification and strategic resource allocation are key to promoting sustainable growth. “We should strive to become a ‘city of inspiration’ by nurturing the next generation and encouraging innovation.”
Rapid technological development is reshaping the business landscape. AI, in particular, could widen the gap between top performers and their competitors while also helping overcome limitations in IT resources. To stay competitive, Joe stressed the importance of the willingness to change and staying attuned to new trends.