McKinsey CEO Dominic Barton Shares His Vision of the Future
In the business of global consulting, foresight is everything. Last week, one of consulting’s leading visionaries, Dominic Barton, global managing director (CEO) of McKinsey & Co., shared his insights as part of the School of Economics and Business Administration’s Executive Speaker Series.
“The next 20 to 25 years will be a historic period of change. It is a significant time of innovation and opportunity,” said Barton, joined by colleague Sarah Munby, who together discussed the five forces that are changing the world and the opportunities that are emerging due to those forces.
"There will be a change from ‘business as usual,’” said Barton. “People who lead will have to have a strong sense of purpose now. Sometimes that’s embarrassing to talk about—what our purpose is as business leaders—but the most valuable leaders are the ones who have a strong sense of purpose.”
Barton noted that the rise of emerging markets is one key evolution. He spoke at length about the shift of power and influence from the West to the East. As the population in Asian countries like China and India continues to surge, the economic center of gravity is returning to its historical roots, and trade routes like the Silk Road are returning to prominence.
And while the shift is already taking shape, Barton explained that this is only the beginning.
“In China, between 15 and 20 million people are moving to cities each year,” he said. Despite the current significant rise in urbanization that is taking place, Barton made a point to note that, “we’re only halfway there.”
“The cities of the future,” he added, “aren’t going to be ones we grew up with.”
The result of this growth will be the emergence of an enormous new middle class in Asia and Africa—a middle class that will test the resources of the planet. Competition for control of water, food and energy will become even more intense in the coming years, and to continue to stay relevant, organizations will have to consider sustainability, “not only out of a sense of corporate social responsibility,” said Barton, “but because consumers are going to demand it.”
Munby, a partner in McKinsey’s London office, joined Barton in stressing how new, disruptive technologies will affect the future.
“It took 38 years since the time of its invention for the radio to reach 50 million users,” said Munby. “It took WeChat (a mobile text and voice messaging service largely used in China) four months.”
The explosion of technology will create massive opportunities, some we are just now beginning to see. Munby listed how 3D printing is beginning to affect healthcare, how genetic modification is producing higher agricultural yields, and how automation is changing manufacturing as examples of the paradigm shift we are just now experiencing.
“This isn’t science fiction,” Munby said. “These technologies are here, and they’re impacting the global economy in major ways today.”
“Forty-seven percent of U.S. jobs could be replaced by machines,” Munby said, noting that typical middle-class jobs such as education, finance, health care, and law could feel—or already have begun to feel— pressures from automation.
“This marks a profound change of not only where your business is operating, but how your business is operating,” Munby said.
In his introduction, Saint Mary’s President James Donahue said he was encouraged by the caliber of speakers who bring their expertise to Saint Mary’s.
“It’s a signal of where Saint Mary’s is coming from, where is it is, and where it is going,” the President said.
“This event is a huge success. It lifts the reputation of our business school,” said Zhan Li, dean of SEBA. “Our students, faculty, and alumni are ecstatic about the opportunity to have conversations with one of the foremost thought leaders in the world.”
Over 200 students, faculty, alumni, and guests attended this first installment of the Executive Speaker Series. For more information about upcoming speakers in the Executive Speaker Series, click here.