This document discusses leadership development challenges in Asia. It notes that Asia is recovering from the economic crisis and returning to strong growth. However, there is a leadership vacuum as local talent pools are not yet ready to replace expatriate executives. Leadership styles also differ between Asia and the West. To develop the next generation of executives, companies need integrated approaches including hiring locals and returnees, internal moves, accelerated development programs, and international assignments. Retaining high-potentials requires commitment to development, mentoring, clear career paths, and competitive pay. The roles of CLOs may need to expand to address Asia's rapid growth in acquiring as well as developing talent.

1. Green Shoots: Preparing Leadership in
Asia for Recovery and Growth
Korn/Ferry Leadership and Talent Consulting
David Everhart, Global Leader, Enterprise Learning
Indranil Roy, Managing Director Asia-Pacific
20 April 2010

2. Main Points We Will Cover
Asia is on a recovery path
The leadership vacuum in Asia
Leadership Styles in Asia are not the same as the West
The challenge ahead for global CLOs in Asia
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3. Asia is on a path to recovery
Green shoots are appearing across the region, predicting a quick return to
pre-crisis growth
Global GDP growth rates (%), 2006-2015
Consensus estimates
Source: IMF, Allianz Economic Research
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4. Growth is inevitable in Asia, but the U.S
remains formidable
US China India
World’s most reputed companies1 (Top 100) 51 6 11
Compe>>ve Index Ranking2 1 17 29
The Most Innova>ve Companies3 (Top 50) 25 1 3
Prosperity Index Rank4 9 75 47
Interna>onal Patent Filings5 53,521 6089 766
World’s Top 100 Brands6 48 3 0
Source:
1 Reputation Institute, 2008
2 IMD World Competitive Index, 2008
3 Business Week, 2009
4 Legatum Prosperity Index, 2009
5 World Intellectual Propoerty Organization, 2008
6 Millward Brown, 2008
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5. The talent challenge is extreme: Words from
our clients about Asian talent pools
“We have highly skilled technical leadership, but people skills are
underdeveloped”
Global technology major
“Our managers tend to struggle in cross-cultural environments … expats
struggle in the Asian context, while Asians struggle in managing globally”
Global consumer company
“Asian managers are less inclined to take on tough international assignments
as opportunities in Asia become more attractive”
Global electronics company
“It is challenging to replace the expats in the management team as the local
talent pool is not ready to operate in the global environment”
Global services company
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6. The leadership vacuum in Asia for next
generation Executives
Shortage of local talent, but
managing through expats Senior Executives
The leadership vacuum Executive Bench (next gen execs)
Training in managerial skills to
build a fairly strong managerial Managers
pool Skills challenge
Fairly deep and robust technical Retention challenge Individual Contributors
talent pool available
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7. Effective Leadership across cultures
Indian and Chinese Executive Leadership Styles Compared with North
Americans
Indian and Chinese senior leaders show a more task-focused, more
7.0 hierarchical, more socially distant style compared with successful North
American executives
6.0
5.0
4.0
3.0
2.0
1.0
Task Focused Social Intellectual Participative
North American C-Level Executive (best-in-class)
India C-Level Executive (n=99)
China C-Level Executive (n=100)
Source: Korn/Ferry’s research using Decision Styles assessment
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8. The executive acceleration challenge
Deals primarily with changing mindset, not skills
LOCAL EXECUTIVE
MANAGER BENCH
In a high growth
environment like
Asia, this transition
must happen in 5
years or less, or 3-5
times faster than
developed markets
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9. Building executive bench is a complex
challenge:
Companies need an integrated, multi-pronged approach
Hiring locals
Hiring returnees
Internal moves (non expat positions)
Accelerated development of hi-po managers
Rotating senior local leaders through international
assignments
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10. Retention of High-Potentials
in Emerging Asia: Four Key Elements
1. Development:
– I must see an organizational commitment
– I must feel I am growing every year
2. Mentoring/Coaching by a Competent Boss
– I can and do learn from my boss
– My boss and others support but also challenge me
3. Clear Career Plan
– I must be able to see the next 2-3 years
– I should know the possibilities 10 years from now
4. Compensation: must be at or above market
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11. Getting to understand the Asian CEO agenda
• Identify opportunities to gain share of market
• Get post-crisis ‘messages’ out quickly and consistently
• Galvanize the leadership team for recovery
• Spot key talent and accelerate their development
• Source the best talent (top-grading)
Source: Green Shoots, Red Impact, Korn/Ferry Whitepaper, 2009
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12. From CLO to CCO (Chief Capability Officer)
for Asia-Pacific?
• It is not possible to rely solely on internal development to
meet leadership needs in APAC markets that grow 20% -
50+% per year
• CLOs must broaden their view beyond Learning and be
closely aligned with talent acquisition
• Learning organizations should work to inform hiring functions
on needed competencies
• Companies should proactively map the talent market for
mission-critical roles and functions
• CLOs must proactively manage “strategic urgency”: the
organizational tension between global talent strategy and the
immediate needs in APAC
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