Operation China: From Strategy to Execution [Hardcover]

Jimmy Hexter (Author), Jonathan Woetzel (Author)

Book Description

Publication Date: December 18, 2007 | ISBN-10: 1422116964 | ISBN-13: 978-1422116968

China has matured as a market and the game has changed. Yesterday, multinationals grappled with fundamental strategic choices: Do we go to China? Whom do we partner with? Where should we invest? Winning in China was all about achieving approval to enter the market, picking the right joint venture partner and selling in the right few cities to the right customers. Execution didn t matter as much as privileged access through government and partner relationships.

Today, China is teeming with MNCs and local competitors. Government is no longer the main driver of deals. Barriers to entry have fallen. Regulations are less of a factor. Partners are no longer required in many industries. Winning now depends on great execution: effectively and efficiently developing, marketing, producing, and channeling goods to customers and growing and retaining a talent base.

In Operation China, Jimmy Hexter and Jonathan Woetzel explain how you can achieve superior execution in China through operations including talent management, product development, information technology, procurement, supply-chain management, manufacturing, and sales, marketing, and distribution.

Based on over two decades of consulting experience for both local and multinational operations in China and extensive research on what drives success in operating in China, this book helps you get your operations right in the new competitive arena defining China today.

"It wasn't long ago when 'good' was good enough to win in China. No longer. Today, it's all about world-class execution. Jimmy Hexter and Jonathan Woetzel draw on their intimate knowledge of China to provide specific, real-world advice for all foreign companies operating in China today."

--Rick Wagoner, Chairman and CEO, General Motors Corporation

"Few Western companies have truly cracked the code on how to successfully turn a China strategy into a winning China business operation. Operation China nails down the key aspects of running businesses in China has no other book has."

--William Amelio, CEO, Lenovo

"If you are a global player, Operation China provides invaluable guidance and insight on translating China opportunities into results. If you're not a global player, but are impacted by companies that are, Operation China is a window into the source of your competitive weakness."

--Robert Holland Jr., Director at YUM! Brands, Inc.

"As trade between China and the United States has exploded, the gap has widened between companies taking full advantage of this opportunity and those left behind. Hexter and Woetzel have put their finger on what every executive must focus on to succeed."

--Ambassador Charlene Barshefsky, former US Trade Representative and Senior International Partner, WilmerHale

Editorial Reviews

Review

the sheer size of the Chinese market makes it an almost irresistible opportunity for growth. --Industry Week, November 1, 2007

... an excellent book ... should create a sense of urgency for company executives, supply chain managers, and anyone with operational responsibility for sourcing, manufacturing or distribution in China." --Supply Chain Digest, January 8, 2008

To understand the challenges such multinationals face as competition accelerates, pick up "Operation China: From Strategy to Execution,'' a management guide by two McKinsey & Co. consultants, Jimmy Hexter and Jonathan Woetzel. --Bloomberg, December 2007

About the Author

Jimmy Hexter is a partner in McKinsey s Beijing office and the co-leader of McKinsey s Operations Practice in Asia. Jonathan Woetzel is a partner in McKinsey s Shanghai office and has published several books on China.

Product Details

• Hardcover: 288 pages
• Publisher: Harvard Business School Press (December 18, 2007)
• Language: English
• ISBN-10: 1422116964
• ISBN-13: 978-1422116968
• Product Dimensions: 9.5 x 6.6 x 0.9 inches
• Shipping Weight: 1.1 pounds (View shipping rates and policies)
• Average Customer Review: 4.6 out of 5 stars  See all reviews (7 customer reviews)
• Amazon Best Sellers Rank: #170,209 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

9 of 12 people found the following review helpful:

5.0 out of 5 stars A Roadmap for Success in China, December 31, 2007

By 

STEVEN M. ONEIL "Steve O'Neil" (Shanghai, China) - See all my reviews
(REAL NAME)   

This review is from: Operation China: From Strategy to Execution (Hardcover)

There are a plethora of business books on China. Unfortunately, many of these are hopelessly out-of-date with the reality on the ground today, due to the breathtaking rate of change in China. In the midst of this burgeoning development, OPERATION CHINA provides a clear and comprehensive view of the decade ahead.

As a China-based executive for a large multinational corporation, I know firsthand the complex challenges facing businesses in China today. This book, more than any other in my experience, cuts through the confusion with concise, level-headed guidance that really makes sense. You can tell that the authors have deep and broad experience in China. Their assertions are backed-up with solid research and real world examples from a broad range of companies in China today. The book covers all aspects of doing business in China, with a balanced perspective and a well-organized presentation.

Increasingly, China is setting the standard for global business success and all businesses wishing to be global players will need to understand the key messages that this book reveals. Companies must bring their global best practices to China - and then step it up a notch in a China context - to succeed in China, and beyond. As explained in this book, China is providing a rapid learning environment and those that can adapt and evolve in this environment will emerge with a global advantage. OPERATION CHINA gives specific actionable strategies for everything from product development, manufacturing, and distribution, to government relations, talent development and M&A. It provides a thoughtful roadmap for business success in China.

4 of 5 people found the following review helpful:

5.0 out of 5 stars A global paradigm shift with unprecedented implications, perils, and opportunities, January 14, 2008

By 

Robert Morris (Dallas, Texas) - See all my reviews
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This review is from: Operation China: From Strategy to Execution (Hardcover)

What we have here is a rigorous analysis by Jimmy Hexter and Jonathan Woetzel of a transition period during which "China is turning the corner from an emerging market, where local context drives most of the strategic and operating decisions managers make, to a maturing one, where top-quality execution is a cornerstone for success." They wrote this book for C-level executives in multinational companies (MNCs) to share what they have learned while in residence there in recent years. In the Preface, they observe:

"Good execution in China is about adapting - sometimes a little, sometimes a lot - world-class operating standards, management tools, and frameworks to the realities of the Chinese environment. The advantage that MNCs have in China over their domestic Chinese rivals is their knowledge of, and experience with, such operating standards. Indeed, top-performing MCNs are frequently the very definition of world-class execution - [begin italics] outside [end italics] China." To take full advantage of business opportunities whose nature and extent are unprecedented, Hexter and Woetzel suggest that MNCs need to "select the right standards, tools, and frameworks from their global arsenal to put into place in China, adapted in the right way to optimize them for the local context." Meanwhile, Hexter and Woetzel further suggest that executives in China as well as their colleagues and bosses in other countries must "change their managerial focus 180 degrees. They will have put behind them tendencies to view business conditions here [in China] as simply unique, requiring in turn unique operating approaches and performance standards, and instead will have to focus on the familiar, seeing to instill practices and processes that are hallmarks in other competitive markets, turning them locally as needed, and linking them globally at every opportunity."

Please go back and re-read the previous paragraph. The insights within the composite of brief excerpts clearly indicate why I consider this book is "must reading" for C-level executives in all organizations that are directly involved in China or are closely associated with those that are. Hexter and Woetzel share more than 40 years of experience while living and working in China. During that period, more has changed in that vast and complicated country than perhaps in any other. It is of course highly desirable to be able to speak the language but capable and trustworthy translators are readily available. Of much greater importance is understanding cultural values, especially in the business community. How to establish initial contact? How to develop mutually beneficial relationships? What are the most common barriers to effective communication, cooperation, and most important of all, collaboration? How to avoid or overcome those barriers? Which companies have been most successful doing business in China? Why? What lessons can be learned from their success?

Hexter and Woetzel respond to these and other questions throughout their narrative that is organized as follows. In Part I, they provide an overview of how the business landscape in China has changed within the last few years, and how it is continuing to evolve. They explain, for example, how and why "the emergence of the global consumer has profound implications for execution, as does the war for talent." Part II begins a series of "deep dives" to look at what top-flight execution means today in the core functions of an MNC's operations in China. For example, Hexter and Woetzel explain how various organizations operating in China "have boosted their performance for each [of several initiatives] by adapting to a Chinese context tools and approaches the organizations successfully use elsewhere in the world - what we call global markets." And then in Part II, they look ahead at how the demands on MNCs' capabilities in China will involve in what they foresee to be "two crucial ways" in the years ahead. They acknowledge that good execution has always determined whether a merger is a success or failure, anywhere in the world and then explain why companies large and small "will need to understand M&A execution in a Chinese context to win at this game."

Here are a few brief excerpts that are representative of the wealth of insights Hexter and Woetzel provide:

"The most successful multinationals in China are successful because they are stellar at execution - specifically by `applying the global standard to China'...[Moreover] it may soon be the case that companies have to win in China to win in the rest of the world. Given the scale of its markets, gaining a preferential share of market in China will deliver a global structural advantage." (Pages 42-43)

"The first step for improving the ability of the company to execute and compete in China is to revisit and potentially reset the management agenda As we hope we've made clear by now, China is turning a corner, from an emerging market in which companies developed bespoke processes and systems to meet unique operating challenges on a daily basis to a mature one in which competition requires companies to adopt proven global standards for management practices."(Pages)

Note: Hexter and Woetzel suggest five additional initiatives to improve execution and discuss all six in Chapter Nine, "Where to Start."

"In the years to come, the phrase `apply the global standard to China' may evolve to `developing the global standard in China.' For many functions, what works well in China will increasingly influence the global standard. Despite the intensity of China's markets, MNCs are investing more and more there. And they are not just placing large, capital-intensive bets. Apart from manufacturing, the investments are in sales, marketing, and product development."(Pages 197-198)

As indicated previously, this book will be of greatest interest and value to C-level executives in multinational companies (MNCs) but I think it will also be of substantial benefit to C-level executives in other companies that are now involved with - or will soon be involved with - the supply chains of MNCs.

Those who share my high regard for this book are urged to check out John King Fairbank and Merle Goldman's China: A New History (Second Enlarged Edition), Peter J. Williamson's Winning in Asia: Strategies for Competing in the New Millennium, and Global Brain: Your Roadmap for Innovating Faster and Smarter in a Networked World co-authored by Satish Nambisan and Mohanbir Sawhney.

4 of 6 people found the following review helpful:

2.0 out of 5 stars McKinsey at its Finest, September 18, 2008

By 

J. Holt (Austin, tx USA) - See all my reviews
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This review is from: Operation China: From Strategy to Execution (Hardcover)

Wow. If you've ever experienced a McKinsey consulting gig, you'll be well-familiar with this book's contents.

Hint: you remember the UPS Supply Chain commercial in which the 2 consultants gave their advice to the willing and accepting CEO? He says, "ok, do it!" They look uncomfortably at each other, "well, we don't actually DO anything."

This book provides some good insights and background but is very, very high level. Just move to the "How to Get Started" chapter to learn how to think about getting started.

Throughout this book I felt like I was viewing a $200k, 100 page powerpoint presentation. Save your $ if you're serious about actually DOING something in China.