2018 China Leadership Report

2018 China Leadership Report: Updated Insights for Talent Seekers The growth of local companies and rising tech stars ischanging the equation for leadership demand and supply. James Root is a partner with Bain & Company’s Organization practice, and he is based in Hong Kong. Stephen Shih leads Bain’s Organization practice in Asia-Pacific, and he is based in Shanghai. Jian Lu is president of LinkedIn China, and Cecilia Wang is director of B2B marketing and marketing opera-tions with LinkedIn China; as leaders of corporate business, they guided LinkedIn China’s content marketing team to complete this research and report.The authors would like to acknowledge Zhen Liu and Jin Lu from Bain & Company and Lily Li from LinkedIn China for their contributions to this report.This work is based on LinkedIn China’s proprietary membership data, secondary market research, analysis of financial information available or provided to Bain & Company and a range of interviews with industry participants. Bain & Company has not independently verified any such information provided or available to Bain and makes no representation or warranty, express or implied, that such information is accurate or complete. Projected market and financial information, analyses and conclusions contained herein are based on the information described above and on Bain & Company’s judgment, and should not be construed as definitive forecasts or guarantees of future performance or results. The information and analysis herein does not constitute advice of any kind, is not intended to be used for investment purposes, and neither Bain & Company nor any of its subsidiaries or their respective officers, directors, shareholders, employees or agents accept any responsibility or liability with respect to the use of or reliance on any information or analysis contained in this document. This work is copyright Bain & Company and may not be published, transmitted, broadcast, copied, reproduced or reprinted in whole or in part without the explicit written permission of Bain & Company.Copyright © 2018 Bain & Company, Inc. All rights reserved. ii. .pg12459gWe9weor24kgdekfomW45aewt5ggyggb945gsg1f6k95,0gt5unContents1. Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .pg ..12. Approach. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .pg ..23. Results of analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .pg ..44. Conclusions and looking forward. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .pg ..145. Appendix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .pg ..156. About the authors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .pg ..19 1i. .pg12459gWe9weor24kgdekfomW45aewt5ggyggb945gsg1f6k95,0gt5unIntroductionMore than 10 years ago, many Chinese graduates looked to well-known Western companies for leader-ship and development opportunities. Many strove to get into formal management development pro-grams at the “best companies to work for” to become well-rounded global leaders. Many of today’s most sought-after companies to work for in China were not on the top lists 10 years ago. The rapid growth of local companies is upending career paths. Many Chinese nationals are choosing faster and more rewarding career paths with local companies over formal talent development programs and overseas assignments in multinational corporations. It appears that local companies are attracting talent away from multinationals at an accelerated pace by giving leaders direct influence over corporate strategy and key decisions. Newer organizations seem to be attracting talent by offering younger leaders the prospects of more influence and the opportunity to leave a legacy.In partnership with LinkedIn China, Bain & Company examined the current state of business leaders in China. By comparing the results of this study to its prequel completed in 2016, the gravity of trends is more apparent. Given a greater understanding of this generation of Chinese leaders, CEOs and human resource managers can build more sustainable and scalable organizations. 2i. .pg12459gWe9weor24kgdekfomW45aewt5ggyggb945gsg1f6k95,0gt5un020406080100% Percentage of companies by type in each industry2016totalLuxuryEnergyAirlinesCon-structionProfes-sionalservicesLegal2018total HotelAutoMedicalInformationandcommunicationstechnology PublicrelationsFood andbeverageIndustrialequipment FinanceLogisticsMediaInternetRetailRisingtechstarsLocal companies focused on ChinaMultinational corporationsLocal companies with global operationsSource: LinkedIn China membership data (n=66,000)Figure 1:.We.worked.from.a.proprietary.database.of.66,000.business.leaders.in.350.major..corporations.across.ChinaApproachThis is an extension of a report produced by Bain & Company and L