Global CEO Program for China
"My Vision Has Been Broadened"

Chinese CEOs gained global business insights in this new program led jointly by IESE, Harvard and CEIBS. The program featured modules on the three school’s campuses.

“My vision has been broadened through this program!” That was the enthusiastic assessment of Mingzhu Dong, one of some 40 Chinese business leaders who participated in the first ever Global CEO Program for China, which wrapped up in June.

Launched for the first time this year, the pioneering executive education program marked the formidable collaboration of three top schools: China Europe International Business School (CEIBS), Harvard Business School and IESE. Following two modules held at CEIBS in Shanghai in February and March, a third module was held at IESE in Barcelona and Madrid in April, before finishing at Harvard in Boston in June.
The program was conceived to address the needs of a growing number of Chinese businesses that are poised for international expansion and require the knowledge, leadership skills and understanding necessary to reach a new level of readiness and capitalize on future opportunities around the world.

The program's participants were all CEOs and board members with more than 10 years of senior management experience. They represented a wide array of sectors from financial services and pharma, to chemicals and consumer goods.

“In the past, for Chinese companies to go abroad, they used to focus on labor-intensive industries such as textiles,” noted Jiansheng Ding, one of the program participants. “But I don't think this will be sustainable because of the higher labor costs and risks involved.

"In the future, for Chinese companies to expand overseas, they should look at industries where they can be complementary to their foreign counterparts.”

Ding, who is president and general manager of Yantai Wanhua polyurethanes company, already has some business customers in Spain and was “looking to learn more.”

European Insights

For this reason, the IESE-hosted module was especially relevant. Ding welcomed the firsthand, on-the-ground insights into the E.U. and Spanish economic business context, as well as the session on negotiation. “The idea of putting yourself in the shoes of the other party, in order to understand what the other party is thinking about, and identifying the win-win points for both of us, was a personal highlight,” he recalled.

Ding also learned valuable lessons from the IESE-organized visits to Telefónica and Banco Santander.

“For China, which is in the process of evolving from a planned economy to a market economy, we can look to Spain, which has already gone through a similar process before us. Also, in terms of the internationalization process, Spain has at least 20 years more experience in operating abroad, in going to Latin American countries, so again I think China can learn from Spain's successes and failures in this regard.”

He speculated that, “Chinese businesses can exploit natural cultural links with overseas Chinese communities abroad, in much the same way that Spain has been able to capitalize on natural synergies with its Latin American counterparts. Also, maybe I can use my Spanish business connections to expand our business dimensions into Latin America as well, and likewise offer some reciprocal business partnerships into China.”

Steve Chan, another participant who works in Spain quite a lot, said, “Spain and China have lots of similarities in terms of culture and character; for example, our countries both have many small and medium-sized companies.”

Besides the company visits, the Chinese CEOs were received by His Royal Highness Prince Philip of Spain at his residence, the Zarzuela in Madrid. The prince welcomed the visitors and stressed the need for more ground-level collaboration between Spain and China.

“It’s All About People”

The inimitable Pedro Nueno was just one of the outstanding IESE faculty leading sessions during the program, along with José Luis Nueno, Alfredo Pastor, Juan Roure, Pedro Videla and Eric Weber. IESE Prof. Jaume Ribera was one of the academic directors of the program, together with Zhang Weijiong of CEIBS and Krishna G. Palepu of Harvard.

The IESE professors lent their expertise and proven methodologies for a comprehensive, transformational learning experience tailored specifically to Chinese CEOs. The curriculum emphasized the social, cultural, political and economic components that affect global business, as well as emerging trends and how to cope with changing environments.

Mingzhu Dong, one of four women participants, particularly appreciated the signature touches that IESE brought to the program. “The Case Method is a very good way for me to reflect on my own company's methods to see whether we are going in the right direction or not. I found one of the cases that dealt with HR most helpful in identifying what I needed to improve, particularly in terms of people management.”

IESE's focus on people was a definite plus for her. “All innovation is on the basis of people talent, developing healthy attitudes and honesty as well as skills. Great people build great teams, who can in turn lead great companies. It's all about people,” she said, echoing IESE's own ethos.

It is perhaps the special attention that Dong places on people that has resulted in her company, Gree, becoming a world leader in specialized air-conditioning cooling systems. Like Jiansheng Ding, her company has business branches in Spain, so the IESE module “provided me with a good opportunity to gain a deeper understanding of the country,” she said. “Coming here has given me a firsthand, face-to-face experience of the market, the people, the personalities, the characteristics here. It's been a very good experience.”

One thing Ding suggested was that he would have liked to have had “participants from one industry in a single program, rather than a mix of participants representing different sectors,” so that they could go deeper into the specific challenges and opportunities facing, say, the industrial chemical sector like his own.

However, Dong disagreed, saying, “I've enjoyed engaging in discussion with the other participants -- whether we have the same or opposite viewpoints, it helps me to improve myself. I rather prefer people from different industries, because I learn something different from them and vice versa. It's been very enlightening.”

They both agreed on one thing: “I had a need for a program like this!”

The Future of Pharma
Company Leaders and Experts Gather to Discuss Developments in the Sector

IESE hosted the first annual Pharmaceutical Industry Meeting recently at the Barcelona campus. Prof. Pedro Nueno coordinated the meeting, which delved into topics such as globalization and competition, as well as European legislation that is currently having an impact on the sector. The event drew CEOs and academics to discuss global developments and the latest challenges in the industry.

During the event, Prof. Nueno stressed the need for governmental policies that stimulate research and development, support the scientific community and eliminate barriers to development of the sector.

Experts noted that the sector faces increasing pressure in terms of globalization and cost control. Innovation, internationalization and “incubation” of local national pharmaceutical companies, remain key to survival and success, noted Antoni Esteve, president of Dr. Esteve Laboratories.

Strengthening Competition

In Europe, where health services are universal, competition needs to be strengthened, noted participant, Belen Garijo, managing director of Sanofi-Aventis Spain. She also stressed the need to improve basic scientific research; connect innovation with production and marketing; and develop a competitive European environment and transform structures and business models.

Jaime Grego, president of Leti Laboratories, suggested employing the American expression, “if life gives you lemons, make lemonade.”

He stressed that pharmaceutical companies have to do their part by creating products that help control costs, contribute toward prevention, early diagnosis, functional treatments and self-care.

Addressing the topic of social and economic value of medicine was Regina Revilla, director of external relations and communication for Merck, Sharp and Dohme.

More than 100 executives participated in the forum, which included representatives from many of Europe’s leading pharmaceutical companies and research laboratories, as well as governmental entities.

IESE Industry Meetings, which are held on a regular basis, concentrate on various sectors including automotive, luxury goods, energy and telecommunications.

Luxury Going Global
8th Annual Luxury Brands Meeting at IESE

This year’s 8th Annual Fashion and Luxury Brands Meeting brought together industry experts worldwide to discuss challenges and perspectives in today’s global panorama.

Participants from Prada, LVMH, Max Mara and other international luxury brands gathered at IESE Business School’s campus in Barcelona for the conference.

“Creativity is the main ingredient of globalization,” said Concetta Lanciaux, Advisor to the Chairman and CEO of EVP Synergies & HR, LVMH. With 60,000 employees worldwide and 500 subsidiaries in 50 countries, LVMH seems to have found the perfect recipe. Lanciaux explained that for a company to be global, the first step is transformation. LVMH went through its transformation stage between 1985 and 1995 by acquiring companies all over the world. The second step “is an attitude.”

A global vision combined with a creative approach, creates the right mix for success in a global world, she said.

“Global process does not mean standardize,” said Lanciaux, stressing that “culture and leadership needs local understanding.”

Giacomo Ovidi, director of business development for Prada, echoed Lanciaux’s comments about the importance of local understanding. When asked about entering the Asian market, he said that when talking about Asia, people often neglect Korea, Singapore and Malaysia. Entering the Japanese market can open doors to the rest of Asia, he said, but companies must keep in mind that the Asian market encompasses many cultures and languages.

Without pinpointing the company’s secret to success in becoming a global enterprise, Ovidi stated that “what I find fantastic in this company is the intellectual curiosity.” He continued to explain that the fusion of fashion with technological innovation and the ability to keep up with trends, even those outside the company’s core business, add to Prada’s success. Their three epicenter stores in New York, Los Angeles and Tokyo, which showcase state-of-the-art architecture and provide memorable consumer experiences, attest to their ability to be on the cutting edge.

Sports Experts Take the Field
SECOND ANNUAL CSBM CONFERENCE

IESE’s Madrid campus hosted the second annual conference of the Center for Sport Business Management (CSBM) on May 23, which included the participation of a range of experts and academics in the field. Central to the event was the presentation of the case, “Atletico de Madrid: Two Short Seasons in Hell,” a comparision titled “American and European Leagues: What Can We Learn?" and a comparison of the business strategies of F.C. Barcelona and Real Madrid.

Prof. Sandalio Gómez, President of the CSBM, delivered welcoming remarks at the conference. Also taking part were IESE professors Juan Manuel de Toro, Tony Dávila, Kimio Kase, Ignacio Urrutia, and Julián Villanueva. Topics discussed during the forum included virtuous circles in sports management, a comparison of U.S. and European sports leagues and the impact of hospitality strategies.

The session on hospitality projects included the participation of Pierre-Igor Cusnir, director of hospitality, Alinghi; Josep Ramón, marketing director, Circuit de Catalunya; and Daniel Schloesser, sponsoring director, F.C. Barcelona. The session was moderated by Prof. de Toro. Prof. Kase led the closing session with an in-depth analysis of the management styles of the two soccer powerhouses, F.C. Barcelona and Real Madrid.

AMP Introduced in Warsaw
Iese's new initiative in eastern europe

This spring, IESE held a presentation in Warsaw, as a prelude to its new program for senior managers and entrepreneurs in Poland. The school’s flagship executive program, the Advanced Management Program, will be offered for the first time in Warsaw this fall, under the guidance of the program’s academic directors Prof. Luis Renart and Javier Santoma.

Various IESE professors will lead sessions during the 6-month program, which includes eight modules in Warsaw and opening and closing modules in Barcelona.

The first module of the program is scheduled for October 16-20, 2006.

The Advanced Management Program enhances leadership and teambuilding skills, while providing a general management overview of key business concepts.

The Polish edition of the program is tailored to the realities of Eastern Europe, as the region undergoes fundamental, structural and economic change. This is accomplished through the significant participation of IESE faculty members with pan-European expertise and the use of business cases that focus on issues of relevance to Polish business today: globalization, innovation, entrepreneurship, digitalization and the Internet, and business process outsourcing, among others.