Asian heads come a long way on big growth

Asia has transformed in recent years with projections that by 2020, 39% of the global GDP growth will come from just these two countries (www.hrmguide.net). Asian economies are on the upswing and companies state growth as their largest imperative.

Thus, the challenge for them has become two fold: First, a talent crunch and the consequent wage inflation. Second, and more importantly, the worry of inadequate enhanced ���leadership��� capability. The leadership shortage is a bigger issue than even the talent shortage.

In our conversations with some of Asia's biggest organisations we hear a recurrent theme: Organisations that traditionally ���grew��� managers over 15-20 years are discovering that they must do it within five-seven years of them joining the workforce. The problem is made acute by demographics: Between 2000 and 2010, Asian population in the leadership age-band 40-49 years will see a reduction by 23%.

The Leadership Gap ��� best vs the rest: Hewitt's Best Employers of Asia 2005 survey among 244 firms shows that ���Best��� (13 firms) have leaders who build trust in employees. They ���walk the talk��� and have immense credibility. Employees of the rest, the remaining 231 firms, consider their leadership to be deficient. As companies expand and go global, the lack of these leadership skills will become impediments to success.

Asian Leadership Styles: The reasons for this disparity in scores could be many but the primary one is that in many Asian countries, firms are now coming out of rigid state control and central policymaking. The leaders of today carry a legacy of the past where resources were relatively few and thus competition.

This has impacted the culture. Leadership in times of transition: Ownership of firms is changing hands with state-owned firms being privatised and family-owned businesses moving towards becoming professionally managed.

Challenging the limits: Scarcity of resources fostered a culture of ���fighting the odds��� and a spirit of achievement in adverse environments. It also instilled a spirit of adventure. This fire in the belly is what differentiates the dynamic organisations of Asia.

Leadership at the battlefront: The culture of extreme strait-jacketed control and minimal resources produced leaders who believe in running their organisation with a tight fist and exhibit authoritarian traits.

It bred employees who expect instructions down to the last detail. The mindset of employees and leaders thus veered towards being highly goal focused and laying excessive emphasis on detailed planning and direction at every step. This mars creative solution generation and slows down decision-making processes.

Directive-hierarchical mindset: The actions of leadership, which were often directive rather than empowering, merely reinforced this. It led to guidance seeking, conforming, confrontation-avoiding and precedence led behaviours. Even when the leadership tried to have conversations that were empowering, they were seen through this filter and assumed as directive.

Managing aculturisation: As Indian firms go global & foreign firms enter India, aculturisation for either side has become important. Successful Asian leaders are aware of this need and instill effective communication from the company end and its global partners.

Long term sustainable success: The primary motivation for transformational change must stem from the leadership itself. It must be kept in mind that ���desired behaviours��� cannot be developed overnight.