What Leadership Transformation Means in APAC€¦ · What Leadership Transformation Means in APAC...

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What Leadership Transformation Means in APAC Grace Abella-Zata | May 26, 2018 IRC’s Asia Pacic (APAC) member rms and guests gathered in Singapore for its March 2018 C-suite roundtable themed “Leadership Transformation: Strategies in a Disruptive, Uncertain and Digital World.” IRC explored how dierent variables impact leadership in APAC, a dynamic region characterized by one of the higher growth rates in the world. Keynote speaker, thyssenkrupp AG Asia Pacic CEO Vivek Bhatia, shared how the €40 billion diversied industrial multinational that has thrived under three previous industrial revolutions is planning to take on Industry 4.0. Some basic business philosophies remain relevant. “Leaders must think beyond the products they want to provide but focus instead on the solutions to respond to the needs of customers,” he said. Bhatia shared four main leadership imperatives to survive and thrive during Industry 4.0. Leadership competencies of the future With the volatility and chaos characterising the business environment, it is even more important for leaders to set a clear purpose and direction for everyone in the organisation. 1/11 www.irc-institute.com

Transcript of What Leadership Transformation Means in APAC€¦ · What Leadership Transformation Means in APAC...

Page 1: What Leadership Transformation Means in APAC€¦ · What Leadership Transformation Means in APAC Grace Abella-Zata | May 26, 2018 IRC’s Asia Pacific (APAC) member firms and guests

What LeadershipTransformation Means inAPACGrace Abella-Zata | May 26, 2018

IRC’s Asia Pacific (APAC) member firms and guests

gathered in Singapore for its March 2018 C-suite

roundtable themed “Leadership Transformation:

Strategies in a Disruptive, Uncertain and Digital

World.” IRC explored how different variables impact

leadership in APAC, a dynamic region characterized

by one of the higher growth rates in the world.

Keynote speaker, thyssenkrupp AG Asia Pacific CEO Vivek Bhatia, shared

how the €40 billion diversified industrial multinational that has thrived

under three previous industrial revolutions is planning to take on Industry

4.0.

Some basic business philosophies remain relevant.

“Leaders must think beyond the products they want to provide but focus

instead on the solutions to respond to the needs of customers,” he said.

Bhatia shared four main leadership imperatives to survive and thrive during

Industry 4.0.

Leadership competencies of the future

With the volatility and chaos characterising the business environment, it is

even more important for leaders to set a clear purpose and direction for

everyone in the organisation.

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Page 2: What Leadership Transformation Means in APAC€¦ · What Leadership Transformation Means in APAC Grace Abella-Zata | May 26, 2018 IRC’s Asia Pacific (APAC) member firms and guests

Innovation is one value that is a clear differentiator for many companies

today. thyssenkrupp is one of the few industrial companies consistently

named among the top 25 most innovative companies in the world.

The corporation has been innovating and embracing digitalization to address

the needs of its customers through a variety of initiatives, for example, via

its web portal titled “Materials for Me” where customers can order

thyssenkrupp’s products online. In another example, the ERP system at

leading manufacturing locations is connected to clients and suppliers to

allow large degrees of operational flexibility to customers that traditional

B2B environments cannot deliver.

The second key competency of leadership is to lead from the front and

drive outcomes. The speed with which new challenges mushroom holds

leaders more accountable. But the best leaders also join their teams in the

trenches to solve bottlenecks within and outside the organisation enabling

positive outcomes.

The third key imperative of leadership is securing talent pipeline. A

talent management development plan must make individuals aware,

not only of their performance, but the alignment of their own values

to that of the organisation.

Companies today face tough competition from leading digital innovators and

start-ups like Google, Facebook, Uber, and other disruptive businesses in

hiring tech-savvy millennials.

Talents now are also less drawn by stability, a long history, or a big name.

Instead, many are attracted by a company’s values and employment brand.

Leaders have to be more innovative about communicating its value

proposition to employees and talents and be aware of how their companies

appear on social media platforms where the current generation decides

which career and firm they will pursue.

The fourth and final leadership imperative is the alignment between a

leader’s personal values and that of the organisation’s.

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Page 3: What Leadership Transformation Means in APAC€¦ · What Leadership Transformation Means in APAC Grace Abella-Zata | May 26, 2018 IRC’s Asia Pacific (APAC) member firms and guests

Vivek Bhatia, IRC APAC Regional Meeting 2018 in Singapore

“This is about the individual himself. If the leader does not reflect the culture

or values that he expects from his organization, it is impossible to expect

subordinates to accept them. Any broad change in the organisation that is

expected to last for years to come has to have the buy-in of leaders.” - Bhatia

The six themes that have arisen in the midst of the latest industrial

revolution were discussed at IRC APAC’s C-suite Roundtable:

• New technologies

• Constant change

• Connect & collaborate

• Markets & competition

• Learning & daring

• Uncertainty & unknown elements in the marketplace

These changes create new challenges for leadership. Thus, it becomes

important for executive search firms to contribute to building a more

relevant profile of the leaders of today.

New technologies

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Page 4: What Leadership Transformation Means in APAC€¦ · What Leadership Transformation Means in APAC Grace Abella-Zata | May 26, 2018 IRC’s Asia Pacific (APAC) member firms and guests

New technologies have created new customer segments and expectations,

and competitors.

“Technology may be a threat to individual jobs, but if taken as an enabler in

business, can create new roles and skills, and new jobs,” IRC Malaysia and

Thailand founding partner Manish Mehta said.

CropLife Asia executive director Tan Siang Hee said his business, which

largely communicates and shares Good Agricultural Practices with farmers,

is seeing both its B2B and B2C supply chains shortened thanks to the

prevalence of smartphones in the farming community.

Meanwhile, big data is helping the agriculture industry reduce costs and

increase efficiencies for distributors from the mix and tailoring products to

farmers needs in sync with crop season.

With the added technology piece, businesses can now hire for jobs that did

not exist five years ago. This nature of work will continuously evolve, as

more facets of industry become digitised.

As formal education providers are slow to evolve, companies must take an

active role in upskilling employees for new roles. HR is also called upon to

help in the design and definition of new roles.

Constant change

Changes in the business environment are no longer sporadic but are

happening constantly and at a more frenzied pace. This requires more agile

responses to developments like the emergence of new competitors, new

technological discoveries, the change or addition of distribution models for

consumer products and the increasing sophistication of consumers,

including millennials.

Multinationals are moderating bureaucratic tendencies by empowering local

leaders in the APAC region to make quicker decisions, based on a more

intimate knowledge of local market and competition. Global companies are

also working closely with consultants or “experimental labs” to quickly

respond to problems and opportunities. Singapore, for instance to

companies which physically house start-ups. This allows business leaders to

work directly and quickly with innovators.

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Page 5: What Leadership Transformation Means in APAC€¦ · What Leadership Transformation Means in APAC Grace Abella-Zata | May 26, 2018 IRC’s Asia Pacific (APAC) member firms and guests

IRC APAC Regional Meeting 2018 in Singapore

Connect & collaborate

The millennia-old style of alpha management, hierarchy, and traditional

command-and-control structure is giving way to shared leadership styles of

open communication and employee empowerment, disrupting cultural

stereotypes.

Leaders now support an environment that encourages and cross-pollinates

ideas from the ground and among different business disciplines and

industries.

The IRC roundtable examined the evolution of the 130-year-old DSM

(previously Dutch Steel and Mining) in making changes to better suit

markets and the environment and be profitable while adhering to

sustainability principles.

Sticking to its core purpose of Sustainability, DSM shaved off companies that

did not align with the new business direction and brought more green

businesses on board. It also grew CEOs from within. DSM's core purpose is

built on a foundation of People, Profit and Planet, around which choices and

decisions are made.

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Page 6: What Leadership Transformation Means in APAC€¦ · What Leadership Transformation Means in APAC Grace Abella-Zata | May 26, 2018 IRC’s Asia Pacific (APAC) member firms and guests

Evolutions such as this call on leaders who embody two key traits: living the

core values of the organisation, internally and externally; and being

proactive in planning for and anticipating potential risks much ahead.

Internally, leaders have to ensure that the employees are invested in the

organisation, with a shared sense of destiny, which then inspires them to

welcome an empowered culture.

Such kind of leadership provokes critical thinking: challenging people,

asking questions, and empowering them to be active participants in thinking

through difficult business issues,” IRC Malaysia and Thailand Managing

Partner, Raj Kumar Paramanathan said.

On the flip side, transformation initiatives risk being delayed, if the

leadership team overlooks the undercurrents that influence operations and

underestimates the amount of time it will take to achieve goals. Execution

teams can face enormous disruptions or distractions in the transformation

journey. Identifying the support that employees need, whether coaching, new

skills training or technology will reduce the likelihood of failure.

Markets & Competition

Compared to previous industrial revolutions, Industry 4.0 is making

competition fiercer and multi-directional. The focus now has shifted to Value-

to-Customer (and not product).

International Hotel Supply Company, which distributes products to hotel

chains globally, is seeing the surge in Airbnb listings affecting their business.

“Given that the largest Airbnb market in Asia is Indonesia, we are evolving

to find more sophisticated ways to reach out to this new set of potential

customers. In the USA, we have added a B2C platform to our traditional B2B

model,” International Hotel Supply Company managing director (Asia) Miles

Wilson shared.

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Page 7: What Leadership Transformation Means in APAC€¦ · What Leadership Transformation Means in APAC Grace Abella-Zata | May 26, 2018 IRC’s Asia Pacific (APAC) member firms and guests

Peter Thewlis at the C-suite roundtable discussion hosted by IRC

Private equity independent consultant Peter Thewlis meanwhile noted that

competition also extends to channels that may sometimes support or oppose

each other.

“For instance, brick-and-mortar fashion houses are challenged by sites like

Net-a-Porter online, but at the same time, there are sites like Farfetch who

are supportive of traditional retail and deliver luxury goods to a consumer’s

doorstep within hours. Solutions like this help luxury retail players enter the

online business quicker,” Thewlis said.

The increased diversity in both markets and competition call on leaders to

continuously take a pulse on trends. Teams also need to be more

collaborative both internally and externally with other channels to share

information and take advantage of opportunities.

Learning & Daring

In today’s environment of uncertainties, repeating the same management

practices that have proven to be effective in the past is no longer a

guarantee of future success. Millennials are not only sensitive to how

companies can quickly adapt to megatrends, but they also want to join or

buy products and services from companies whose values align with their

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Page 8: What Leadership Transformation Means in APAC€¦ · What Leadership Transformation Means in APAC Grace Abella-Zata | May 26, 2018 IRC’s Asia Pacific (APAC) member firms and guests

own. There is a shift in focus from profits to purpose. To engage millennials

and all others entering the workforce in the future; leaders need to be

conscious of leading with purpose.

The Roundtable also revealed that some multinationals had changed the

mindset about leadership maturity. Historical norms are being rewritten. The

traditional climb up the career ladder is being challenged. Age boundaries

are almost non-existent as the lines on who should lead are becoming

blurred. Some are appointing young country heads in their mid-twenties to

Country Head positions in smaller markets. They take this risk not only to

meet career expectations and retain young high potentials but also because

digital natives have an advantage in the new economy.

Also, the education system in many countries is challenged to keep pace

with technological change. One example shared was where a company had

resorted to creating a university to educate the talent they needed for their

business.

“Learning and daring also affect how often a company can embrace change,”

IRC South Korea President Steven B. McKinney said.

C-suite roundtable discussion hosted by IRC

Uncertainty & Unknown Elements in the Marketplace

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Page 9: What Leadership Transformation Means in APAC€¦ · What Leadership Transformation Means in APAC Grace Abella-Zata | May 26, 2018 IRC’s Asia Pacific (APAC) member firms and guests

VUCA elements call for leadership that is strong and smart enough to know

when a current strategy is not working. This can be a monumental task for

larger companies with multiple revenue streams and global operations.

Sanofi regional talent management lead Annie Lim shared how the 120,000-

strong corporation hired consultants from the Big 5 consulting firms who

had previously done work for Sanofi. This group is tasked to create an

internal strategy team that would streamline strategy across multiple global

business units (GBUs).

In strategising, the IRC roundtable concluded that leaders should place

emphasis on threat analysis within the SWOT model. Too often leaders are

focused on what they do best, not what is likely to take business away.

Instead of merely asking “How can we win?”, leaders should also ask “How

can we lose?”

“Leaders need to also focus on what would be destructive for their

businesses. A leader also has to be very agile, able to make quick changes

and be cognizant of the fact that failures are fine, but you need to fail fast

and have the courage to make necessary changes promptly,” Hill-Rom APAC

regional marketing director Angela Low said.

Delegates of IRC C-Suite Roundtable on "Leadership Transformation",

Singapore 2018

Executive Summary

Companies are adapting to the VUCA environment by adopting new

technologies, and new business and distribution models that allow them to

communicate with and respond to individual needs of customers. Leaders

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Page 10: What Leadership Transformation Means in APAC€¦ · What Leadership Transformation Means in APAC Grace Abella-Zata | May 26, 2018 IRC’s Asia Pacific (APAC) member firms and guests

must therefore have the capability to build a vision around the new

technologies and to establish new external partnerships.

In the midst of the chaos and transformation, it becomes even more

important for leaders to articulate a clear purpose and direction, to be alert

to risks in the environment, to forge an empowering environment that allows

responsible risk-taking, greater participation from employees and agility in

decision-making. Millennials as consumers, employees and leaders are also

impacting businesses with their social advocacies and with the technological

savviness that is second nature to them. The paradox is that while the

changes are mostly technology driven, many “soft” leadership competencies

like humility, listening to others, forging teamwork, being self-aware about

one’s own values etc. are becoming even more important.

What kinds of transformations must today’s leaders embrace to

thrive in Asia now and in the future?

1. From Expert to Learner. Everyone can be considered a newbie

because of how the new technologies are creating new jobs and

transforming business processes and models. A Microsoft survey has

shown that one of the major challenges to digitalization in some Asian

countries is the lack of top management competency to “ideate, plan

and execute digital transformation. “Leaders need to be literate in big

data analytics and the new technologies and be able to drive and

participate in discussions related to digitalization.

2. From a directive and authoritarian style to empowering

leadership. Leaders must listen and be prepared to learn from and

empower their team, without abdicating leadership responsibilities like

direction-setting. For instance, he or she must be comfortable with

learning from and consulting younger members of the team who are

digital natives and are more competent in working with the new

technologies. A leader also needs to listen to people in order to create

an empowered culture that results in greater sharing of information

and more agile responses. Many millennials prefer to work in more

open cultures where their views are valued. Since the war for talent

will continue to intensify, an empowered culture strengthens a

company’s employment brand.

3. From a utilitarian perspective to one that is value-driven.

Consumers and employees have become more discerning and the

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Page 11: What Leadership Transformation Means in APAC€¦ · What Leadership Transformation Means in APAC Grace Abella-Zata | May 26, 2018 IRC’s Asia Pacific (APAC) member firms and guests

practice of social responsibility is driving sustainable business results.

Leaders must therefore be keenly aware of how their own values and

decisions align with the company’s True North.

4. From homogeneous global leadership to one rooted in both

universal principles and distinct cultural norms. More

multinationals are localizing top leadership or giving greater decision-

making powers to Asian leaders, debunking the notion that Asian

culture does not produce strong global leaders. To be sure, there are

enduring leadership traits and competencies common in all cultures.

Leaders from Asia, especially from some Southeast and North Asian

countries have the added challenge of building on the positive aspects

of their culture but also leading change to overcome impulses that

inhibit the openness and risk-taking necessary for innovation and

agility. Asian leaders are called to build on the teamwork and harmony

that are strengths of Asian cultures on the one hand, and on the other

to wean people away from the dysfunctional conformity often present

in traditional hierarchal organisations. As one employee puts it.” it is

easier for the person on top to go down than for the person at the

bottom to struggle to climb up.”

Grace Abella-Zata

Graces professional expertise is in job / person-organisation fit and human

resource planning and acquisition. She is currently the CEO of the IRCI

Global Executive Board. She has always been interested in research and

groundbreaking perspectives in leadership and management, and as

President of Corporate Executive Search, a pioneer in the Philippines, she

has had access to practical knowledge and the evolving insights about

executive talent management. Coming from a culture where East easily

meets West, she relishes the opportunity to study and shape leadership

thought, together with colleagues from more than 40 countries in the IRC

Global Executive Search network. She continues to be an active member

of the community of human resources management professionals in her

home country, where she is a past President of the People Management

Association of the Philippines.

Read more

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