green shoots: preparing leadership in asia for recovery and growth

Green Shoots: Preparing Leadership in Asia for Recovery and Growth Korn/Ferry Leadership and Talent Consulting

David Everhart, Global Leader, Enterprise Learning Indranil Roy, Managing Director Asia-Pacific 20 April 2010

2 © Copyright 2010 Korn/Ferry International. ALL RIGHTS RESERVED

Main Points We Will Cover

Asia is on a recovery path

The leadership vacuum in Asia

Leadership Styles in Asia are not the same as the West

The challenge ahead for global CLOs in Asia


Asia is on a path to recovery Green shoots are appearing across the region, predicting a quick return to pre-crisis growth

Global GDP growth rates (%), 2006-2015

Source: IMF, Allianz Economic Research

Consensus estimates


Growth is inevitable in Asia, but the U.S remains formidable

US China India

World’smostreputedcompanies1(Top100) 51 6 11

Compe>>veIndexRanking2 1 17 29

TheMostInnova>veCompanies3(Top50) 25 1 3

ProsperityIndexRank4 9 75 47

Interna>onalPatentFilings5 53,521 6089 766

World’sTop100Brands6 48 3 0

Source:

1 Reputation Institute, 2008 2 IMD World Competitive Index, 2008 3 Business Week, 2009 4 Legatum Prosperity Index, 2009 5 World Intellectual Propoerty Organization, 2008 6 Millward Brown, 2008


The talent challenge is extreme: Words from our clients about Asian talent pools

“We have highly skilled technical leadership, but people skills are underdeveloped” Global technology major

“Our managers tend to struggle in cross-cultural environments … expats struggle in the Asian context, while Asians struggle in managing globally” Global consumer company

“Asian managers are less inclined to take on tough international assignments as opportunities in Asia become more attractive” Global electronics company

“It is challenging to replace the expats in the management team as the local talent pool is not ready to operate in the global environment” Global services company


The leadership vacuum in Asia for next generation Executives

Shortage of local talent, but managing through expats

Fairly deep and robust technical talent pool available

Training in managerial skills to build a fairly strong managerial

pool

Senior Executives

Managers

Individual Contributors

Executive Bench (next gen execs) The leadership vacuum

Retention challenge

Skills challenge


Effective Leadership across cultures Indian and Chinese Executive Leadership Styles Compared with North Americans

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Task Focused Social Intellectual Participative

North American C-Level Executive (best-in-class) India C-Level Executive (n=99)

Indian and Chinese senior leaders show a more task-focused, more hierarchical, more socially distant style compared with successful North American executives

Source: Korn/Ferry’s research using Decision Styles assessment

China C-Level Executive (n=100)


The executive acceleration challenge Deals primarily with changing mindset, not skills

LOCAL MANAGER

EXECUTIVE BENCH

In a high growth environment like

Asia, this transition must happen in 5

years or less, or 3-5 times faster than

developed markets


Building executive bench is a complex challenge: Companies need an integrated, multi-pronged approach

Hiring locals

Hiring returnees

Internal moves (non expat positions)

Accelerated development of hi-po managers

Rotating senior local leaders through international assignments


10

Retention of High-Potentials in Emerging Asia: Four Key Elements

1.  Development: –  I must see an organizational commitment –  I must feel I am growing every year

2.  Mentoring/Coaching by a Competent Boss –  I can and do learn from my boss –  My boss and others support but also challenge me

3.  Clear Career Plan –  I must be able to see the next 2-3 years –  I should know the possibilities 10 years from now

4.  Compensation: must be at or above market


Getting to understand the Asian CEO agenda

•  Identify opportunities to gain share of market • Get post-crisis ‘messages’ out quickly and consistently • Galvanize the leadership team for recovery • Spot key talent and accelerate their development • Source the best talent (top-grading)

Source: Green Shoots, Red Impact, Korn/Ferry Whitepaper, 2009


From CLO to CCO (Chief Capability Officer) for Asia-Pacific? •  It is not possible to rely solely on internal development to

meet leadership needs in APAC markets that grow 20% - 50+% per year

• CLOs must broaden their view beyond Learning and be closely aligned with talent acquisition

• Learning organizations should work to inform hiring functions on needed competencies

• Companies should proactively map the talent market for mission-critical roles and functions

• CLOs must proactively manage “strategic urgency”: the organizational tension between global talent strategy and the immediate needs in APAC

green shoots: preparing leadership in asia for recovery and growth

Business

green shoots

leadership

level executive

rights reserved

asia

boss

source