1. 2 nd Business in the Parliament Conference

2. Kevin Sneader Director McKinsey & Company

3. NJE-030419.043-20040609-lsinHR1 Scotland’s International Image: The Challenge and the Opportunity Business in Parliament Kevin Sneader September 9, 2005

4. NJE-030419.043-20040609-lsinHR1 TODAY’S DISCUSSION 1.Scotland’s international image 2.The U.S. in detail 3.A call to action

5. NJE-030419.043-20040609-lsinHR1 REFERENCE POINTS FOR TODAY’S DISCUSSION Source:OECD, 2001 Population Millions GDP/Capita $ US Thousands GDP $ US Billions 5.1 121.3 23.6 3.8 118.6 30.5 4.5 94.1 21.2

6. NJE-030419.043-20040609-lsinHR1 NINE COUNTRIES ASSESSED U.S. Germany France Canada Australia Dubai Russia China India GDP USD Billions 11,700 2,800 2,020 990 620 250 580 1,650 610 Population Millions 294 83 60 32 20 24 144 1,300 1,087 GDP/capita USD 40,000 33,400 31,000 30,600 10,500 4,040 1,272 561

7. 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 65 India Ireland 83 593 339 148 275 144 97 205 139 Singapore 357 636 126 112 1,218 281 78 649 305

8. 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 65 258 Mostly business with a little culture

9. NJE-030419.043-20040609-lsinHR1 U.S. HEADLINES IN THE LAST 6 MONTHS 1.It’s Auld Lang Syne for Watson in Scotland The Washington Post, July 25, 2005 2.In Scotland, a Grand Finale: Nicklaus’s Final Appearance in a Major Will Be at a Pace He Reveres The Washington Post, July 13, 2005 3.The Writing’s On the Board for Woods in Scotland The New York Times, July 11, 2005 4.Bombings Rewrite Agenda for World Leaders in Scotland The New York Times, July 8, 2005 5.Vast Crowd Attends Rally for the Poor in Scotland The New York Times, July 3, 2005 6.Enron and Royal Bank of Scotland Settle Lawsuit The New York Times, June 18, 2005 7.Generations of Residents Settle Down in Scotland The Washington Post, June 18, 2005 8.World Briefing Europe: Scotland: First Royal Duty The New York Times, April 15, 2005

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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 19 139 56 16 6 13 48 305 51 72 22 18 42 Limited but equally spread presence

18. NJE-030419.043-20040609-lsinHR1 Dubai BUSINESS MENTIONS LAST 12 MONTHS Scotland 47 U.S. 22 Germany 19 France 29 Canada 70 Australia 5 19 Russia 19 India Ireland 36 207 30 35 171 8 48 Singapore 258 390 55 51 772 107 42

19. NJE-030419.043-20040609-lsinHR1 TODAY’S DISCUSSION 1.Scotland’s international image 2.The U.S. in detail 3.A call to action

20. 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 Sport218 Total764 Politics Business 181 163 2004-05 58 197 251 750 143 101

21. 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

22. NJE-030419.043-20040609-lsinHR1 TODAY’S DISCUSSION 1.Scotland’s international image 2.The U.S. in detail 3.A call to action

23. NJE-030419.043-20040609-lsinHR1 SIX FACTORS THAT SHAPE ECONOMIC IMAGE People Capital Tax and regulatory Networks Innovation/ ideas Infrastructure Business

24. NJE-030419.043-20040609-lsinHR1 ONE WORD FOCUS

25. NJE-030419.043-20040609-lsinHR1 GOVERNMENT: TWO ACTIONS 2 Support regulatory reform 1 Stimulate/nurture competition

26. 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

27. 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

28. NJE-030419.043-20040609-lsinHR1 WHAT DO THE FOLLOWING HAVE IN COMMON?

29. 2 nd Business in the Parliament Conference