Management consultancy McKinsey & Company has opened a new research centre in Singapore. The new unit, which will provide strategic research, benchmarking tools and technology-based solutions to help companies in the region drive productivity, has been established in partnership with the Singapore Economic Development Board (EDB).
A few years ago the government of Singapore launched a long-term 10-year strategy aimed at raising the productivity of its economy. The objective is to realise a 2% to 3% growth per annum by 2020. To support government institutions and private sector companies with boosting their productivity levels, the government has established several support schemes and launched a number of initiatives. One of the latest building blocks added to realise the strategy is the launch of a dedicated research centre, a collaboration between the country’s Economic Development Board (EDB) and global consulting firm McKinsey & Company.
The centre – dubbed the ‘McKinsey Productivity Sciences Center’ – will provide research, benchmarking tools and technology-based solutions to help companies optimise their productivity levels. "In our experience, if companies really push themselves to implement the best practices, latest management systems, right tools and approaches - the improvement potential can vary from 10% to 15%, in some cases even 40%, depending on the sector," says Mr Oliver Tonby, Managing Partner for McKinsey & Company South East Asia. The initial focus of the unit will be on three sectors: Construction, Manufacturing and Retail / FMCG. "If we're talking about the construction and manufacturing industries, a 10% to 15% improvement can be achieved by implementing best practices," he adds.
McKinsey’s Productivity Sciences Center, which is a first of its kind for the global strategy consulting firm, was formally opened last week Thursday (October 16), during the McKinsey Innovation Forum. In the coming months the center is expected to release several research reports on topics such as regional economic cooperation, innovation, the application of disruptive technologies and best practices for manufacturing industries. The team will reportedly also introduce a new methodology to help companies make optimal decisions on plant location.
McKinsey has been present in Singapore for nearly two decades now, its office was opened in 1998, growing its local team to over 200 consultants.
Recently McKinsey also opened an office in Nairobi, Kenya, its seventh in Africa.