A conversation with Dominic Barton, chairman of McKinsey & Company Asia-Pacific region.

• Author: Chen, Roger
• Position: Interview

JABS: How would you characterize the consulting industry in Asia? Do you see any differences from the West?

A: Consulting is still a relatively new industry in Asia. Obviously, it's more established in more developed economies such as Korea, Singapore, Hong Kong, and Taiwan. In these places, the economies are more open and dynamic. Many executives are trained overseas and they are more receptive to professional consulting services. But, overall, consulting is still a fairly new service in Asia. When I think about consulting in Asia, it reminds me of what I understand Europe was like in the 1960s, when consulting just got started there and when some major international organizations started to use professional advisory services.

The style of consulting in Asia is also somewhat different. Clients in Asia are more demanding for details and require more 'hands-on support' from consulting firms. In the consulting industry, I believe that more and more regions of the world are moving towards implementation, but this is particularly true in Asia. You can not just show up and tell them 'Here is the study on private banking and our recommendations for change'. In Asia, they want more than just a grand map. They want to know more about operational details and the nuts and bolts of implementation.

Clients in Asia put much more emphasis on capability-building--they don't just expect us to come in, do a project, and then leave. They want to know, for example, how we are going to help their leaders become more effective and how their people can develop the know-how they need to improve their performance tomorrow. To meet these demands, we are sending some of our people temporarily to help our clients, we are also hiring retired executives or executives we have worked with in other major markets--they have hands-on experience and credibility.

Fast economic development is a possible reason for Asian clients to be even more demanding, and this is especially true in countries such as India, China and Korea. In these countries, the pace of development and change is very fast and people are eager to learn. Furthermore, in these markets, there are large growth opportunities and some very ambitious companies. This dynamism and ambition make consulting challenging. For example, I came to Asia right before the Asian financial crisis. During that time, there was not much going on in Korea except work with the government on the restructuring. The Asian financial crisis further slowed down consulting activities there. But if you look at things today, you will be amazed by the pace and the amount of change and development that have occurred since then.

JABS: Can you talk about McKinsey's approach to Entering Asian Markets?

A: In the 1980s, every major consulting firm had offices in Asia. McKinsey established an office in Japan in 1971 and in Melbourne in 1963. But, in terms of really being active in this area, I think it was in the early 1990s when consulting began to grow and expand in Asia. There's also been a lot of ignorance about Asia by many western companies, including consulting firms. They didn't really know what was going on out here and what was happening. And now that it's become such an important part of the world, it receives more attention.

We feel that Asia will be one of the key centers of global business and we are committed to this region. You can not be successful in any key Asia market if the key leaders do not have much experience in or, in fact, are not from these markets. We are bringing some outstanding people to Asia and are also developing local...