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Page 1: Asia’s Leadership Challenges An Interview with Mr. … · Asia’s Leadership Challenges . An Interview with Mr. Charles Tseng, President, Asia Pacific, ... to global trends of

© Copyright 2001-2011 National University of Singapore. All Rights Reserved Page 1 of 4

Asia’s Leadership Challenges

An Interview with Mr. Charles Tseng, President, Asia Pacific, Korn/Ferry International

Being a key speaker at the CEO Roundtable on ”Asia’s Business Megatrends: Challenges and

Opportunities” on 31st March 2011 at the NUS Business School, Mr. Charles Tseng, President, Asia

Pacific, Korn/Ferry International addressed the audiences on his perspectives on Asia’s Leadership

Challenges. Noting the drivers for megatrends in Asia and through a comparison of Asian versus

Western leadership profiles, he highlighted the differences and challenges while sharing best practices.

Following his speech, Mr. Tseng further elaborated on Asian leadership in an interview with Susan

Tong, MBA Candidate on behalf of the Centre for Strategic Leadership (CSL).

About Ms. Charles Tseng

Mr. Charles Tseng is the Asia Pacific President of Korn/Ferry International, serving a region

spanning Greater China, India, ASEAN, Australia, Japan and Korea. Mr. Tseng advises global companies

and Asian Groups on how to define their organisational needs and develop their leadership capital. He

focuses on ‘C-level’ and regional head placements for multinationals and Asian conglomerates.

Summary

Several macroeconomic trends in Asia have brought many changes in business with different

implications on leadership; economic leadership, consumption, competition, governance, and

urbanization are the megatrends in Asia. With regard to economic leadership, China has become a

main trading partner. Intra-Asian consumption has risen in conjunction to rise in income levels. There

has also been an onslaught of MNC’s entering the emerging markets, elevating the competitive

environment. Governments have pushed for more transparency and improved corporate governance.

In China, the urbanization of tier-2 cities has increased the demand for talent.

With the megatrends mentioned above, there is a perception that there is enough talent to

satisfy the needs of emerging markets but the quality of talent needs further consideration. The

McKinsey Global Institute reports: China is producing 600,000 engineering graduates per year and

India another 350,000. However, only 10% of China’s engineers, and a quarter of India’s, are

employable. The Economist Intelligence Unit pointed out that while the market sizes of the Asian BRIIC

countries are considerable, the availability of skills/talent lags greatly. These factors have created a

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© Copyright 2001-2011 National University of Singapore. All Rights Reserved Page 2 of 4

“War for Talent”. In a PwC Global CEO survey, 63% of respondents believed there to be a limited

supply of candidates with the right skills in the next three years.

When one compares a Business Unit manager from U.S.A and China, the business manager in

China will be younger, have on average 5 -10 years of work experience, and would have held 5 jobs

compared to one in the U.S.A who would have held 2-3 jobs over a career spanning 15-20 years. There

is also a shift in leadership challenges. In the future, leaders will have to focus on (1) crafting new

strategies rather than customizing old strategies to fit new markets, (2) developing new platforms

rather than scaling existing ones to meet market demands, (3) deliver intimate rather than great

customer service, (4) produce innovative products rather than re-position products to fit new markets

and (5) inspire his/her team rather than discipline and focus on accountability.

To develop successful Asian leaders, globally consistent HR recruitment and evaluation

processes become necessary as they will ensure talent is developed similarly across different

geographies across the organisation. Leadership development needs to focus on attributes rather than

job specific competencies. Moreover, maintaining close relationships with local universities will ensure

sufficient talent is always in the pipeline.

Interview

1. What are the critical success factors for sourcing for C-Suite executives and strategic players? Are these success factors different across Asian economies and traditional businesses versus business groups?

In sourcing C-Suite executives, it is essential to ask, “what have they done?” These experiences can signal leadership abilities or attributes, i.e. operations minded, strategic or if they have the people skills necessary to manage diversity. Finally, Asian businesses are observed to seek leaders that can deliver immediately (satisfy “what can you do for me now”) rather than seek competencies that will benefit them in the future (“what you have to offer me in the future”). Japan, in particular, places more emphasis on “fit”.

2. What are challenges companies face in Asia in defining their organisational needs and

developing their leadership capital?

There is reluctance or aversion to focus on long term organisational needs in developing leadership capital. Emphasis is on filling an immediate need.

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3. Emerging markets in Asia are known to carry human talents of high mobility, do you have any

suggestions to corporate leaders on how to address this problem of talent sourcing and retention?

In China, employees have a mindset of being “dragon head” and continually strive to better their working position (e.g. faster tendency to quit a job to pursue another if the salary was higher). In Japan and Singapore, employees are more open to viewing their position in a more holistic manner rather than focus solely on salary. Establishing more personal relationships will be key to retention.

4. What are some key differences across countries in their leaders’ management philosophies,

values, business practices and management practices?

In Singapore and Hong Kong, there is a more global perspective where practices are deemed “Western”. In China, values are from a political and cultural and civilisation context. The view of risk is also different in China where they have more of a “got nothing to lose” mentality.

5. What are raising leadership challenges in China in the midst of economic transformation and industrial upgrading?

English ability will continually be an issue for leaders. There is also the challenge of adjusting to the market outside of China and engaging with “Global best in class”.

6. What will happen when China is gradually increasing the wage levels of its labour force?

With increasing wage levels, low cost advantages will decrease. More low value added manufacturing will shift to cheaper cost of labour countries like Vietnam. Government enterprises will recognize the need for productivity improvements.

7. What can MBA programs insert in their curriculum to elevate the preparedness of their students

as future business leaders?

An MBA program should cover, different Asian Business Models and the evolution of Asian economies. There should also be consideration of public versus private sector. They should also examine why China did not fail during the financial crisis.

8. What is your definition of a “strategic leader” in today’s challenging business world? What type

of leading philosophies, competencies and management practices are critical for Asian leaders to build business with strategic impact?

Singapore is exemplary; the country attracted companies that place an emphasis on value added services when traditional manufacturing moved to China in the 80s and 90s. As Mac’s responded

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© Copyright 2001-2011 National University of Singapore. All Rights Reserved Page 4 of 4

to global trends of establishing a presence in Asia, Singapore developed a unique value proposition to the regional and global business environment. A strategic leader is able to perceive trends and bring his team with him.

9. In your opinion, what is “Responsible Leadership”? What are some valid measures of

responsible leadership in the finance sector, and how can finance firms develop a corporate culture and critical management processes that support an effective execution of responsible leadership across board?

Responsible leadership is about thinking long term and acting not for short term gains but recognise the need for sustainable results.