Lady Barbara Judge: developing Chinese multinational companies with the help of ‘The Triple Package’

On Aug 30, 2017, Lady Barbara Judge, the Director of Institute of Directors, was invited to address a speech at Center for China and Globalization (CCG). She shared the experience of successful companies in the UK. She exchanged her opinions on globalization with the representatives of many industries in China.

As the Director of Institute of Directors, she quoted the speech President Xi delivered at the 2017 World Economic Forum at the start of her talk that globalization has been driving the growth of world economy, the exchange of goods and capital, and the enhancement of technology. This issue was also the focus of her speech. She believes China will make more promises on globalization in the incoming leaders meeting of BRICS in the beginning of September.

‘The Tripe Package’

In her speech, Lady Judge proposed a concept called ‘The Triple Package’. The package consists of globalization, the ‘Belt and Road’ Initiative, and the combination of China’s reform and open policy with the ‘Belt and Road’ Initiative. According to her, the connection of the three parts would create opportunities for the world economy. Furthermore, if Chinese companies could take full advantage of the ‘Belt and Road’ Initiative, Chinese companies would gain new momentum in their efforts of expanding reach abroad.

From her viewpoint, in comparison to many developed countries, China is facing great challenges, since many countries have a long history of international trade and that means that Chinese companies have to compete with others in a system that has been long established. As a firm supporter of globalization and the ‘Belt and Road’ Initiative, Lady Judge shared many of her work experiences in different countries to offer practical suggestions to the globalization of Chinese companies.

Stakeholders and Advisory Board

In Lady Judge’s mind, transparency and mutual trust have been the two most important factors in the success of companies. According to her, Chinese companies should make efforts in two aspects. Firstly, they should improve their management by deepening trust and enhancing transparency and that is the key to the globalization of companies. Then, companies should be more sensitive to the cultural diversity. The solution to this is to take the situations of different areas into account. Moreover, she stressed the importance of advisory boards in deepening companies’ understanding of different areas and the trust they establish with companies in other countries.

Additionally, to her mind, though many companies have been adapting to local markets around the word and they have had much cooperation with local companies, many companies still need to consistently improve themselves. For instance, they should bear in mind the importance of the mapping of stakeholders. By citing China National Offshore Oil Corporation and HUAWEI as two successful examples, she stressed the importance of analyzing all stakeholders comprehensively and employing effective tactics to persuade other companies and bring about benefits for all.

The opportunities created by the ‘Belt and Road’ Initiative

Subsequently, Lady Judge illustrated her own opinion of the relationship of the ‘Belt and Road’ Initiative and the globalization of Chinese companies. She deemed the guidance of government is indispensable but companies should be the main character in launching the Initiative. Chinese companies’ learning from other multinational companies has greatly benefited their own development and therefore, in order to accelerate Chinese companies’ going abroad, Chinese companies should always establish good relationships with foreign companies.

In the end, Lady Judge elaborated the opportunities created by ‘the Triple Package’ with reference to GE. GE has clearly shown its willingness to join the ‘Belt and Road’ Initiative. Hence, it can be a good chance for Chinese companies to reflect on their own shortcomings, learn from others and become the top-notched multinational companies in the world.

Barbara Judge’s Profile

Lady Barbara Judge is the first female Chairman of the Institute of Directors, Chairman Emeritus of the UK Atomic Energy Authority (UKAEA), the Chairman of the United Kingdom’s fraud prevention service Cifas, a former Chairman of the Pension Protection Fund and a UK Business Ambassador on behalf of UK Trade and Investment. She is also a trustee of several cultural and charitable institutions, including the Royal Academy of Arts and Dementia UK.

Reference: https://en.wikipedia.org/wiki/Barbara,_Lady_Judge

Britain’s Institute of Directors

The Institute of Directors is a business organization for company directors, senior business leaders and entrepreneurs. It is the UK’s longest running organization for professional leaders. Its mission statement stands for ‘free enterprise, entrepreneurialism, wealth creation and good corporate governance’. It was founded in 1903 and now it has 48 branches around the UK, with roughly 34500 members. It hosts hundreds of networking, policy and social events throughout the year and across the country.

Reference: https://en.wikipedia.org/wiki/Institute_of_Directors