Asia Needs to Focus on Leadership Development to Sustain Its Growth

CEOs in Asia expressed a willingness to develop the next generation of leaders in their respective organisations, but very few of them are proactive and strategic in doing so. The absence of a strategic focus on leadership development will make it even more difficult for the next generation of leaders in the region to successfully assume senior leadership roles. This is according to a recent study conducted by The Gallup Organization and the University of Nebraska's Global Leadership Institute. The study is commissioned by the Ministry of Manpower, Singapore.

2.   To harness the burgeoning talent in the region, organisations need to be more proactive in strengthening its leadership bench strength. They also need to implement more strategic leadership development and mentorship programmes at all levels. Organisations also have to look at new ways to effectively groom new Asian leaders to lead and manage in dynamic environments which they currently operate in, and will continue to do so in the foreseeable future. Such initiatives are imperative for Asia to further sustain its rapid growth.

3.   Conducted this year, the study evaluated leadership profiles of leaders in six Asian cities: Bangalore, Beijing, Hong Kong, Mumbai, Shanghai and Singapore. Extensive survey data was collected from more than 300 employees in each of these respective cities, who either worked directly or indirectly for top corporate leaders. 40 top CEOs in Singapore, Beijing and Bangalore were also interviewed for their perceptions on leadership, and on their leadership focus, preferences and styles. Detailed findings of the study will be presented at the inaugural Singapore Human Capital Summit (SHCS), which will be held on 22 - 24 October 2008.

4.   According to the study, while 89% of the CEOs provided mentorship when asked by their employees, only 23% had formal mentoring programmes in place. Mentorship from these Asian CEOs ranged from taking employees to lunch to listening and providing advice on employees' problems. Very few of these CEOs were driving a strategic mentoring programme in their respective organisations.

5.   The interviews also revealed that a majority of the organisations in the region do not have comprehensive leadership development strategies in place for grooming top talent. Most of the leaders who are in their current position were given the role without any formal grooming and training.

6.   Commenting on The Gallup Organization findings, Mr Leo Yip, Permanent Secretary, Ministry of Manpower, said: "The findings reinforce the need for companies in Asia to take a more strategic and proactive approach towards their leadership development efforts. This will be a key issue for discussion at the Singapore Human Capital Summit."

7.   Mr Ong Ye Kung, Chief Executive, Singapore Workforce Development Agency, said: "Organisational leaders may spend 90% of their time running their organisations, and 10% of their time identifying and grooming the next leader. But often it is the latter 10% of the effort that will help solve 90% of our future problems. There are different models to developing leaders, and it will be interesting to hear the experiences of leaders across different Asian countries and cultures at the Singapore Human Capital Summit."

Perception of Leadership-Shaping Factors

8.   Key findings from the recently completed study include:

• Two-thirds of the sample group believed that leadership is 'made' and not 'born'. A majority of the CEOs believed that job rotations and cross-cultural exchanges are more valuable career milestones as compared to more traditional formal classroom leadership training.
• In describing events that shaped their leadership potential, many of the CEOs described career anchoring events such as downsizing a department and taking a stand on controversial issues early in their career as milestones that helped in shaping their values and beliefs that guide their current leadership orientation.
• Most employees in the six cities surveyed were optimistic about their CEOs' leadership, ranking them favourably against leadership qualities such as the ability to adapt to rapid changes, emphasis on development and mentoring, ethical standards, the degree to which they were inspirational and embraced diversity and creativity.
• Across all six cities, employees were more confident in leaders who spent more time and energy promoting diversity in their organisations. Increasing and embracing diversity were also shown to be related to instilling employee confidence in the future of the organisation.

9.   The survey study also highlighted areas that Asian leaders could improve upon. Given the diversity of Asia, employees' perception of these areas of improvement varied across the six cities. For example:

• Employees in Singapore, Hong Kong, Shanghai, Mumbai and Bangalore hope that their leaders could respond more effectively to adversity, and recover more effectively from it.
• Employees in Beijing, on the other hand, would like their leaders to take on a more optimistic outlook in order to inspire and motivate their people.
• Employees in Shanghai, Beijing, Hong Kong, Mumbai and Bangalore felt that their leaders could be more people focused, and should do more to develop their staff.
• Employees in Singapore felt that their leaders could do more to challenge employees to be independent thinkers.

10.   Mr Peter Ong, Managing Partner, The Gallup Organization, commented: "Our studies show that many organisations fail to grow rapidly and strongly because they have poorly prepared their leadership bench strength to sustain rapid growth. The current approach to leadership development in Asia needs to change. Leadership development must be more strategic, proactive and intentional. It is not too late for us to start thinking how we can deal with this leadership challenge but we will have to move swiftly if Asia is to sustain and accelerate its growth. If this is not addressed, Asia may lose the global war for leadership talent."

11.   Details of The Gallup Organization's and the University of Nebraska's study, including the full employee and CEO survey responses, will be presented at the Singapore Human Capital Summit 2008. As a strategic platform for the discussion and sharing of best practices on human capital development and management in Asia, the Summit presents an opportunity for top-level executives to enhance their people strategies and take their companies to the next level of organisational excellence.

Ministry of Manpower

The Ministry of Manpower aspires to develop a globally competitive workforce and a great workplace, for a cohesive society and a secure economic future for all Singaporeans. For more information, please visit the Ministry's website.

Singapore Workforce Development Agency

The Singapore Workforce Development Agency (WDA) enhances the competitiveness of our workforce by encouraging workers to learn for life and advance with skills. In today's economy, most jobs require not just knowledge, but also skills. WDA collaborates with employers, industry associations, the Union and training organisations, to develop and strengthen the Continuing Education and Training system that is skills-based, open and accessible, as a mainstream pathway for all workers - young and older, from rank and file to professionals and executives - to upgrade and advance in their careers and lives.