Multinational executives no longer quip that Marco Polo was the last foreigner to make a profit in China. As the list of Chinese success stories grows,1 we find that senior managers are focusing more on execution and less on the broader concerns of entering a new market. Yesterday's explorers have become today's insiders.
This shift is reflected in the questions that executives in China are asking. Two years ago topics such as the stability of the banking system and China's adherence to trade commitments were at the forefront.2 But today's China hand seeks guidance on problems such as how to find the talent needed to expand operations and ways of serving consumers in the country's vast interior. The following questions and answers—based on McKinsey's experience in China and on discussions with executives, government officials, and analysts—address some of the current concerns of executives working in the country.
Where will companies find the managers they need to run their businesses?
First, don't forget about the managers already on staff. The white-hot market for talent is forcing wages up and making it difficult for companies to retain managers. From 30 to 40 percent of senior managers at multinationals switch jobs...