Since 2012, McKinsey & Company’s Global Infrastructure Initiative (GII) has convened many of the world’s most senior leaders in infrastructure and capital projects to identify ways to improve the delivery of new infrastructure and get more out of existing assets. Our approach has been to stimulate change by building a community of global leaders who can exchange ideas and find practical solutions to improve how we plan, finance, build and operate infrastructure and large capital projects.
Our research suggests that up to 40 percent of global infrastructure and capital project investment is poorly spent because of bottlenecks, lack of innovation, and market failures. McKinsey established the Global Infrastructure Initiative to address these issues, promote economic growth, and contribute to more resilient and secure communities. GII is a separate entity and collaborates with infrastructure leaders from around the world, leveraging McKinsey’s skills, resources and convening power. GII places a premium on dialogue and problem solving, with the specific objective of forging the insights, relationships, and commitments necessary to drive powerful change across sectors and industries.
GII has hosted three successful summits (Istanbul in 2012; Rio de Janeiro in 2014; and San Francisco in 2015) and a series of regional roundtables. In addition, GII disseminates the best insights and practices from around the world through our publication, Voices from the Global Infrastructure Initiative, and shares a collection of tools aimed at supporting leaders making informed decisions. GII also hosts Innovation Site Visits, demonstrating some the industry’s most exciting infrastructure innovations.
Collectively, our intent is that these efforts will inspire the GII community to lead the much-needed change in global infrastructure.
Roberto leads McKinsey’s Capital Projects & Infrastructure Practice for Latin America. He serves clients in Europe, Latin America, and North America on a broad range of topics, including portfolio strategy, corporate strategy, mergers and acquisitions, organization, and corporate governance. He is based in McKinsey’s Sao Paulo office.
Diaan-Yi is the managing partner of McKinsey’s Singapore office and a leader in the Public Sector, Private Equity, and Capital Projects & Infrastructure Practices in Asia. She has worked extensively with government entities and government-linked companies in Asia, particularly on the design and implementation of large-scale programs to drive performance transformation and economic development.
Tony manages the strategic direction and day-to-day operations of the GII events and activities. He has over twenty-five years of experience in implementing complex initiatives and projects with leading multi-national corporations, governments and NGOs. Specialty areas include business development, project management and stakeholder engagement.
Developing a sound infrastructure delivery plan is immensely challenging in this time of rapid urbanization and technological change. Today’s plans are expected to provide a roadmap that responds to global migration, shifting economics, user needs, and regulatory approaches, while also enabling a dialogue on risks, returns, and public/private sector roles. The Plan Pillar will focus on how planners can respond with new tools, techniques and approaches to deliver in this new context.
Despite glaring gaps and years of debate, infrastructure investment has declined as a share of GDP in 11 of the G20 economies since the global financial crisis. To support projected global GDP growth, it is critical to embark on innovative approaches to finance the world’s infrastructure and build strong pipelines of bankable projects. The Finance Pillar will identify actions to bring previously untapped sources of public and private money to projects, recognizing the importance of financing bankable sustainable infrastructure projects.
Worldwide, productivity and margins in the engineering and construction sector have lagged behind other industries for the past 30 years, resulting in many projects being delivered late and over budget. Creative and proven management processes and innovative technology-enabled solutions—from drones to next gen BIM, digitization and advanced data analytics—can boost productivity by 20-25 percent and increase profitability. The Build Pillar will explore new approaches to advance productivity through leveraging the digital wave and applying lean construction.
Applying analytics and digital technology to optimize the use and minimize the cost of existing infrastructure is a high-value strategic investment. The McKinsey Global Institute estimates that almost $500 billion could be saved annually through disruptive market models, smart management, and better use of technology. The Operate Pillar will examine levers to maximize asset utilization, revenue opportunities, and customer experience.