2nd Business in the Parliament Conference

Kevin SneaderDirector

McKinsey & Company

NJE-030419.043-20040609-lsinHR1

Scotland’s International Image: The Challenge and the Opportunity Business in Parliament

Kevin SneaderSeptember 9, 2005

NJE-030419.043-20040609-lsinHR1

TODAY’S DISCUSSION

1. Scotland’s international image

2. The U.S. in detail

3. A call to action

NJE-030419.043-20040609-lsinHR1

REFERENCE POINTS FOR TODAY’S DISCUSSION

Source:OECD, 2001

PopulationMillions

GDP/Capita$ US Thousands

GDP$ US Billions

5.1 121.3

23.63.8

118.630.5

4.594.1

21.2

NJE-030419.043-20040609-lsinHR1

NINE COUNTRIES ASSESSED

U.S.

Germany

France

Canada

Australia

Dubai

Russia

China

India

GDPUSD Billions

11,700

2,800

2,020

990

620

250

580

1,650

610

PopulationMillions

294

83

60

32

20

24

144

1,300

1,087

GDP/capitaUSD

40,000

33,400

33,400

31,000

30,600

10,500

4,040

1,272

561

NJE-030419.043-20040609-lsinHR1

Dubai

OVERALL MENTIONS LAST 12 MONTHS

U.S.

Germany

France

Canada

Australia

Russia

China

Scotland

61

252

166

409

139

95

42

138

65India

Ireland

83

593

339

148

275

144

97

205

139

Singapore

357

636

126

112

1,218

281

78

649

305

NJE-030419.043-20040609-lsinHR1

UNITED STATES: MENTIONS IN THE LAST 12 MONTHS

Total

Other

Culture/tourism

Sport

Politics

Business

Source:McKinsey analysis of “The Wall Street Journal”, June 2004-05

61

0

8

0

6

47

83

3

15

3

26

36

357

8

13

13

65

258

Mostly business with a little culture

NJE-030419.043-20040609-lsinHR1

U.S. HEADLINES IN THE LAST 6 MONTHS

1. It’s Auld Lang Syne for Watson in ScotlandThe Washington Post, July 25, 2005

2. In Scotland, a Grand Finale: Nicklaus’s Final Appearance in a Major Will Be at a Pace He ReveresThe Washington Post, July 13, 2005

3. The Writing’s On the Board for Woods in ScotlandThe New York Times, July 11, 2005

4. Bombings Rewrite Agenda for World Leaders in ScotlandThe New York Times, July 8, 2005

5. Vast Crowd Attends Rally for the Poor in ScotlandThe New York Times, July 3, 2005

6. Enron and Royal Bank of Scotland Settle LawsuitThe New York Times, June 18, 2005

7. Generations of Residents Settle Down in ScotlandThe Washington Post, June 18, 2005

8. World Briefing Europe: Scotland: First Royal DutyThe New York Times, April 15, 2005

NJE-030419.043-20040609-lsinHR1

GERMANY: MENTIONS IN THE LAST 12 MONTHS

Source:McKinsey analysis of mentions in Frankfurter Allgemeine Zeitung

Total

Other

Culture/tourism

Sport

Politics

Business

252

12

48

139

31

22

593

25

63

173

125

207

636

32

54

83

77

390

Sport, culture and some politics

NJE-030419.043-20040609-lsinHR1

FRANCE: MENTIONS IN THE LAST 12 MONTHS

Source:McKinsey analysis of “Le Monde”, June 2004-05

Total

Other

Culture/tourism

Sport

Politics

Business

166

14

27

62

44

19

339

38

48

65

158

38

126

13

16

20

22

55

Sport, politics and culture

NJE-030419.043-20040609-lsinHR1

CANADA: MENTIONS IN THE LAST 12 MONTHS

Source:McKinsey analysis of Globe and Mall, June 2004-05

Total

Other

Culture/tourism

Sport

Politics

Business

409

9

119

0

252

29

148

2

28

0

83

35

112

9

14

0

38

51

Politics and culture; little business

NJE-030419.043-20040609-lsinHR1

AUSTRALIA: MENTIONS IN THE LAST 12 MONTHS

Source:McKinsey analysis of mentions in Australian Financial Review, June 2004-05

Total

Other

Culture/tourism

Sport

Politics

Business

139

21

17

20

10

70

275

30

27

9

48

171

1,218

88

176

9

173

772

Business but Singapore dominates

NJE-030419.043-20040609-lsinHR1

GULF: MENTIONS IN THE LAST 12 MONTHS

Source:McKinsey analysis of Gulf News, June 2004-05

Total

Other

Culture/tourism

Sport

Politics

Business

95

3

15

61

11

5

144

0

12

85

39

8

261

0

30

54

90

107

Sport for the expats

NJE-030419.043-20040609-lsinHR1

RUSSIA: MENTIONS IN THE LAST 12 MONTHS

Source:McKinsey analysis of Veddmosti, June 2004-05

Total

Other

Culture/tourism

Sport

Politics

Business

42

3

12

0

4

23

97

4

13

1

11

68

78

0

2

3

4

69

Business and culture

NJE-030419.043-20040609-lsinHR1

CHINA: MENTIONS IN THE LAST 12 MONTHS

Source:McKinsey analysis

China Daily

People’s Daily

China Business

138

29

1

205

80

61

649

331

97

Overshadowed by others

NJE-030419.043-20040609-lsinHR1

INDIA: MENTIONS IN THE LAST 12 MONTHS

Source:McKinsey analysis of “Economic Times”

Total

Other

Culture/tourism

Sport

Politics

Business

65

20

11

4

11

19

139

56

16

6

13

48

305

51

72

22

18

42

Limited but equally spread presence

NJE-030419.043-20040609-lsinHR1

Dubai

BUSINESS MENTIONS LAST 12 MONTHS

Scotland

47U.S.

22Germany

19France

29Canada

70Australia

5

19Russia

19India

Ireland

36

207

30

35

171

8

48

48

Singapore

258

390

55

51

772

107

42

42

NJE-030419.043-20040609-lsinHR1

TODAY’S DISCUSSION

1. Scotland’s international image

2. The U.S. in detail

3. A call to action

NJE-030419.043-20040609-lsinHR1

MENTIONS OF SCOTLAND IN THE U.S. PRESS

Source:McKinsey analysis of New York Times, Washington Post, CNN, Wall Street Journal, Forbes Fortune

2003-04

Other

Culture/tourism

68

133

Sport 218

Total 764

Politics

Business

181

163

2004-05

58

197

251

750

143

101

NJE-030419.043-20040609-lsinHR1

MENTIONS IN U.S. PRESS

Source:McKinsey analysis of New York Times, Washington Post, CNN, Wall Street Journal, Forbes Fortune

2003-04

764

1,034

1,037

2004-05

750

1,296

1,139

All

Singapore gaining

2003-04

163

323

735

2004-05

101

280

676

Business

All declining

NJE-030419.043-20040609-lsinHR1

TODAY’S DISCUSSION

1. Scotland’s international image

2. The U.S. in detail

3. A call to action

NJE-030419.043-20040609-lsinHR1

SIX FACTORS THAT SHAPE ECONOMIC IMAGE

PeopleCapital

Tax and regulatory

NetworksInnovation/ideas

Infrastructure

Business

NJE-030419.043-20040609-lsinHR1

ONE WORD

FOCUSFOCUS

NJE-030419.043-20040609-lsinHR1

GOVERNMENT: TWO ACTIONS

2 Support regulatory reform

1 Stimulate/nurture competition

NJE-030419.043-20040609-lsinHR1

THE PUBLIC SECTOR: THREE POINTS

1 Articulate a vision of reform

2 “Borrow with pride”

3 Drive best practice and organizational change

NJE-030419.043-20040609-lsinHR1

THE PRIVATE SECTOR: THREE POINTS

1 Act as if your sector is twice as competitive

2 Be ruthless about getting value from IT

3 Seek out best practice

NJE-030419.043-20040609-lsinHR1

WHAT DO THE FOLLOWING HAVE IN COMMON?

2nd Business in the Parliament Conference