Notes on CBS China Business Conference :: 中国式增长 pt1

Opening Keynote - Frank NewmanSpoke on how he turned Shenzhen Development bank into a highly profitable organization. He notes it is one of the few banks that is not state owned.

  • Main changes he made
  • -sent out bonus plans to have the branches vet them. -printed a formal code of conduct. -code of conduct iterated into "user friendly cartoons" for the second version. -verified via feedback surveys -created a way to define bonuses on "merit" not on "favoritism" or other means.

  • Crowd Questions
  • Q: Concerns for others than just shareholders. A: success of the bank was focused on: serving the economy, serving society.

    Q: What were the main challenges? A: "culture, trust, team management with language separatism."

    Takeaway - he said he improved "efficiency and customer experience" - they're two areas that I focus on (see my "About Page").

    "Frank Newman has recently completed 5 years as Chairman of the Board of Directors and CEO of Shenzhen Development Bank, China (“SDB”). In 2005, SDB, a national listed bank with operations in 20 major cities of China, was seriously troubled. After a US-based private equity firm purchased about 20% of the bank’s shares, Mr. Newman led a team that turned the bank around substantially, to become healthy and highly profitable -- with no government funding or guarantees. At the end of June 2010, after the successful sale of the major interest in the bank, Mr. Newman announced his retirement, and became an independent Senior Advisor to the bank. Mr. Newman also served as an active director of Korea First Bank, then controlled by a US-based private equity firm, as the bank recovered from substantial problems to become healthy and profitable. Previously, Mr. Newman served as Chairman and CEO of Bankers Trust Corporation, a major international bank based in New York. When Mr. Newman was asked to join BT, it was in a difficult, unprofitable position, facing substantial business, regulatory, and legal challenges. Mr. Newman led the program of resolution of the legal and regulatory issues, and recovery to a broader, profitable business base. Mr Newman then led the successful sale of the bank to Deutsche Bank, with a strong return for shareholders. From early 1993 through late 1995, Mr. Newman served as Undersecretary, then Deputy Secretary of the United States Treasury Department. As Deputy Secretary, Mr. Newman was the number two official of the Treasury Department and represented the Treasury on a broad range of issues domestically and internationally, including economic and banking policy. He also served as Chief Operating Officer of the Department. Upon completion of his service with Treasury, he was awarded the Alexander Hamilton Award, the Department's highest honor. Prior to his government service, Mr. Newman served as Vice Chairman of the Board and Chief Financial Officer of BankAmerica Corporation, San Francisco. Mr. Newman earlier served as Executive Vice President and CFO of Wells Fargo Bank. Mr. Newman has also served as a director of a number of corporations in the US and other countries, including Dow Jones & Company. He is a member of the Board of Trustees of Carnegie Hall, and a member of the Investment Committee. Mr. Newman graduated from Harvard University with a BA, magna cum laude in economics."

    Bio via Columbia China Business Conference Site.  

    Ned Cloonan A great speaker, and Columbia alumnus He gave the history of AIG (AIG, American International Group) starting in Shanghai in 1919 and a background of CV Starr.

  • 4 Fundamentals to Succeed:
  • 1. Committed - long term, commitment has to come from the top, "The example starts at the top." (speaking with regards to an organization) 2. Relevant - be seen as the solution to their problems (China's problems/ Chinese people's problems). 3. Informed on the differences between local, regional, versus Beijing 4. Strategic

  • Skills you need

    -_________ of the secretary of finance (diligence with quantitative data that can scale and have large impact) -the cultural sensitivity of a sociologist -the tact of a diplomat -the eye of an art historian

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  • Examples:
  • commitment - Post Mao, it took 17 trips to Shanghai to ask for a license for AIG to start again. The business must bring something to China.
  • cultural sensitivity and appreciation of culture - AIG top level employee notices Chinese works of art are for sale in a US antique store. Those works of art were from the Summer Palace and were stolen during the Boxer Rebellion. AIG returns them to China.
  • Relationships with people - even if they're in a different group (age, industry etc). He stress the importance of relationships and notes "China is a country driven by relationships, not rules."
  • IBLAC (International Business Leaders Advisory Council) - engaged with other, economic reform to make SH a financial center, and worked on air traffic in addition to more
  • See beyond the normal business framework, beyond bilateral US-China relations, but the relations that shape your country's relation with the world.
  • Edward “Ned” Cloonan Retired Global Vice President, American International Group Mr. Edward “Ned” T. Cloonan held the position of Vice President of Corporate and International Affairs for American International Group (AIG).  He was responsible for developing and executing business development strategies, as well as strategic corporate giving.  He helped build AIG's global businesses, including playing a leading role in successful market access strategies in China, India and Vietnam. Mr. Cloonan had a 30-year career with AIG.  As Vice President for Corporate and International Affairs, he worked closely with CEO Hank Greenberg in expanding the firm’s international business, with an emphasis on China, India, Vietnam and Latin America.  Mr. Cloonan led efforts in five key areas: Political Management, Market Access, Issue Management, Business Development, and Philanthropy.  Some of his accomplishments include: he attained the first ever 100% foreign owned license to operate in China; defeated legislation in Russia that disallowed foreign life insurers from operating there and developed strategies that resulted in AIG being the only foreign life insurer allowed to operate in Russia; led winning strategy to overcome India’s previous thirty years of insurance industry nationalization and secured operating license in India; developed $75M global corporate giving program that promoted entrepreneurship, innovation, diversity, and empowerment. Mr. Cloonan is a member of the Council on Foreign Relations, and serves on the board for the Asia Society, National Committee on U.S. China Relations, the Americas Society/Council of the Americas and the American Indonesian Chamber of Commerce.  Mr. Cloonan was named a “C.V. Starr Partner,” the highest form of recognition within AIG, for his outstanding leadership and performance.  As Hang Greenberg once said, “Ned is simply the best at what he does.”

    Bio via Columbia China Business Conference Site. ------------

    Notes taken on a mobile device. Pardon any auto-corrections or incorrection.