[photopress:Yalekids.jpg,full,alignright]A recent report by independent economics think tank, McKinsey Global Institute (MGI), identifies what it calls China’s ‘looming talent shortage’, and suggests that effective managers are in very short supply.
The report estimates that over the next 10 years the country will need 75,000 leaders who can work effectively with international companies to match the global aspirations of many Chinese companies. Today, the report estimates, there are only 3,000 to 5,000 such managers. Bit of a shortfall there. As in 70,000 or so.
The MGI estimates that over the next five years, around 60% of the capable graduates will be snapped up by multinationals. This will not leave much for local firms. This might end up in a war for talent with escalating salaries.
A growing number of international business schools are partnering with local institutions. France and Singapore-based Insead recently announced the launch of a dual-degree Executive MBA programme with Tsinghua University, which already runs a joint International MBA with the Sloan School of Management at Massachusetts Institute of Technology.
Professor Gabriel Hawawini, dean of Insead, explains the importance of this move. ‘As Chinese companies seek to grow internationally, they will need leaders with an understanding of the market place outside the nation’s borders. Conversely, the growing interest of multinational corporations in the Chinese market and consumer base will result in demand for leaders with a firm grasp of the nuances and practices specific to Chinese businesses.’
Local Chinese business schools are also set to respond. A little over a decade ago there were nine Chinese universities delivering an MBA degree, producing a total of 86 graduates. In 2005, there were 95, producing over 12,000 graduates.
The illustration? A group of Chinese students on the eve of their departure for the United States in the 1870s. Seems appropriate.
Source: Daily Telegraph
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