Ethos Issue 5, Nov 2008

Making The Globalisation Leap: A Survey of Asian Leadership Traits
Israel Berman & Madeline Dessing

As Chinese, Indian and other Asian companies start playing on the global stage, it is timely to look at some key success factors for Asian leadership. What are the key competencies of Western and Asian leaders in the global arena? Are there areas for improvement? Hay Group looked at a decade’s worth of data on Fortune’s World’s Most Admired Companies¹, to identify the traits of globally successful Asian CEOs.

KEY SUCCESS FACTORS OF CHINESE CEOS²

Social responsibility
Social responsibility frequently features as a key success factor for Chinese leaders. At its core, social responsibility, as seen in the best Chinese CEOs, involves conducting business in a manner designed to improve the business environment, particularly in one’s own area or industry.

Harmony
Complementary to social responsibility, the seeking of harmony in business relations is another competency of Chinese leaders. They are often faced with complex, multi-party negotiations involving other businesses and different parts of the local and/or national government—situations that demand effective negotiation skills. The best Chinese CEOs display a distinctive and effective way of negotiating these complex environments. They do so in such a way as to create a harmonious, mutually harmony beneficial result in which all parties are at least reasonably satisfied with the result.

Self-improvement
Chinese CEOs have a marked appetite for continuous self-improvement. Hence, Chinese business leaders are more likely to request feedback and advice for improvement in their own skills and behaviour as much as in their business to the point of holding “self-criticism” sessions. 

AREAS FOR IMPROVEMENT

Leadership styles
The Chinese leadership style is predominantly paternalistic in nature. Chinese CEOs are less likely to give rationales for decisions and more inclined to issue directives. At the same time, Chinese leaders express a sense of caring for their people. They also often demonstrate concern for the education and development of their employees through “coaching”. Chinese leaders are much less likely to manifest a “visionary” style of leadership—involving the provision of a clear overall vision, direction and explanation. Nor do Chinese leaders much seek to involve their team in decision-making. This paternalistic style is not the most effective possible style for Chinese employees. The question of leadership styles is of particular importance as many Chinese companies pursue global expansion, which will mean leading international teams. Widening their range of leadership styles can help the Chinese leaders domestically and globally.

Innovation
The rapidly growing Chinese economy is testament to the energy and high achievement drive of Chinese CEOs, as demonstrated, for example, in the ability of Chinese businesses to replicate processes and operations, adapting them in order to deliver improved efficiency and cost. However, in order to compete abroad, they can no longer rely on their highly developed skills as adaptors. In order to compete, they must generate value and/or differentiate—they must innovate. China’s struggle to innovate has been widely noted. Until now, with plenty of revenue to go around in sectors largely owned and controlled by government, profits have been generated simply through nurturing contacts and acquiring information as opposed to creatively responding to and serving markets. In addition, Chinese CEOs are less likely to seek information to shape that action than their Western or Indian counterparts. The seeking of new information, for example about social trends, new technologies, shifts in consumer trends, is crucial to the process of innovation.

KEY SUCCESS FACTORS OF INDIAN CEOS³

Social responsibility
Like their Chinese counterparts, Indian leaders also rank high on their sense of social responsibility, showing a striking, single-minded focus on growth, not just in relation to their own company but to their nation as well. Their willingness to take risks is founded on their concern for the development of their country.

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