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Reaching for success

EFFECTIVE BUSINESS leaders have several characteristics in common. Primarily, they know how to engage employees, sustain morale, reduce turnover and get results.

Taken together, these abilities can turn a company around and put it on the road to long-term success. Bad leadership can have an equal, but opposite, effect and create plenty of wreckage along the way.

Despite knowing this, relatively few companies in Asia have put a structured programme for leadership development in place.

Vincent Gauthier, general manager of human resources consulting firm Hewitt Associates, said only 10 per cent to 15 per cent of organisations had effective succession plans.

In a survey last year, Hewitt found that 72 per cent of companies contacted said their leadership development practices were ineffective.

Mr Gauthier said this lack of forward planning could be detrimental to a business, especially because there was a well-documented shortage of management talent in Asia.

'Companies without leadership development programmes will lag behind. The best people will go where they will be developed,' he said.

A suitable programme brings twin advantages. In-house staff can learn the skills needed to assume broader responsibilities, and employers can gradually build up a leadership brand for the business. In time, this will attract new, high-calibre recruits.

Mr Gauthier said the first step in designing a leadership programme was to understand what the company was offering for present and prospective employees. This might be job security, performance-related rewards, or an international career. Whatever the case, the company should never make promises it cannot fulfil.

'The fundamental task is to identify what the company is about and what the main value proposition is. That can lead to a lot of issues, but if you are offering job security and employ a person who wants career development, it's not going to work,' he said.

When clear about the employment brand, the next step is to consider which methods to use to develop senior personnel. The most successful training schemes include soft and hard skills, and extensive on-the-job experience.

'That usually comes from rotational assignments. Individuals may move between countries, departments or business units to give them as much exposure as possible,' Mr Gauthier said.

Staff marked out as having high potential may join accelerated learning programmes. These usually last a year and involve a series of workshops and hands-on projects monitored by a team of senior executives.

As future leaders move up through the organisation they can expect training to be customised to their needs. A detailed personal development plan and an executive coach will target specific behavioural issues and help to overcome obvious weaknesses.

'Expatriates might need a coach to help deal with cross-cultural differences. In other cases, the coach might focus on business performance issues. Also, the idea is to send the message that these people are important to the company,' Mr Gauthier said.

He added that in Asia many employers sent up-and-coming executives on short university courses. Generally, this happened less in the United States, perhaps because many senior managers working for multinationals already had an MBA.

Typically, these best corporate leadership programmes are championed by the top managers in the organisation.

'They are actively involved in the review of talent and are aware of the challenge to the business if they don't have the right leadership in place,' Mr Gauthier said.

Succession planning was a key business issue, not simply a human resources issue, he said.

'When it is owned by human resources, it becomes another administrative process and may not get the management attention it deserves. If you really want it to be seen as a strategic priority it has to be owned by senior leadership.'

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