Interview: Coping with the crisis requires new strategies

Wellins recently came to Bangkok to attend the seventh annual Asia Business Leaders Awards (ABLA). During 2008, DDI had conducted in-depth face-to-face interviews with 51 chief executive officers across 11 countries.

What are the main findings from your latest interviews with Asian CEOs? What surprised?

This year was one of the strongest pools of finalists for ABLA - and the finalists were not confined to one or two countries, but w spread out across several.

It was not a surprise, but across the 51 CEOs we interviewed, strategy execution, innovative thinking and corporate responsibility got stronger ratings. Talent management and organisational culture and values got lower ratings.

What are some of the most common misunderstandings about talent management?

Talent management is not succession planning alone.

It is a common misunderstanding to see talent management as a series of separate programmes rather than integrated initiatives tied to an organisation's business plan. Instead, leaders need to

see the entire employee life-

cycle as one talent management system: hiring, on-boarding, development, performance management, succession, promotion, etc.

Some CEOs see talent management as someone else's job. As such, they do not always have talent as one of their priorities. Talent management is not HR's job or accountability. Every leader, including the CEO, has a role to play in managing and developing talent. The CEO has to be the chief talent advocate - fortunately, we saw this among the best Asian leaders and recognised that through the Asia Talent Management Award of the Year.

What are the shared characteristics of the best Asian CEOs you have found? Please elaborate on their strengths and weaknesses. Are there any differences with Western managers?

There are key strengths among the best CEOs we interviewed in five main areas. These are also the same strengths which define a good leader in the West. I believe that exceptional leadership is universal - it's always a balance of execution and engagement.

Strategy formulation and execution: The best CEOs have a well-defined strategic direction and a clear view of the future. They sell that vision and strategy passionately, and create the structures and accountability to execute and measure success.

HR and Talent Management: The best CEOs have a talent plan tied tightly to their business plans. They select high-quality candidates, identify key leadership talent and plan for succession. They also develop employee skills to support business strategies and ensure high levels of engagement and retention. More importantly, the best CEOs play a personal role in talent championship through their own actions and deeds.

Change and innovation:

The best CEOs cultivate inno-vation and embrace change

leadership. They present novel solutions to business challenges, encourage new ideas and

expansive thinking, and augments vision with innovative business strategies. They also champion organisational change by encouraging innovation

and addressing resistance to change.

Social awareness and contribution: The best CEOs

recognise the opportunity they have to make an impact in society and for the environment. In alignment to their corporate strategy, they make societal impact a corporate priority, and engage in actions aimed at preserving and improving the environment. The best CEOs also devote personal time and effort to these societal and environmental issues.

Culture and values: Finally, the best CEOs define and model company values, align culture to the business strategy, and measure how these values are lived out. Aside from reinforcing the company culture, the best CEOs also live out the values, aligning his or her personal actions with the company values.

What are your suggestions on how Asian CEOs cope with the global economic downturn? What are their survival strategies and challenges?

First of all, crisis leadership

is different than growth leadership. As such, coping with the current challenging economic environment requires new strategies.

Top management can minimize their risks by creating an open and transparent environment, and increasing organizational flexibility. CEOs need to watch out for indecisiveness or assuming all will be well; instead, they need to refocus the business, implement governance and accountability processes. If needed, rightsizing has to be done - but hang on to your A-players and don't postpone leadership development.

Leaders need to manage with discipline and focus - they have to take operational control by reducing or controlling operating costs, monitor and adjust resources to support the new business reality. A crisis is an opportunity to do things differently, so leaders need to promote innovation.

At the same time, leaders need to lead with equanimity. In the current environment, people are scared and anxious, so leaders have to project composure and stay calm - even when they have to make tough decisions. Leaders also have to communicate openly and often; they have to communicate hope, build trust and be optimistic about the future. Most importantly, leaders have to continue to engage and empower; they have to make others part of the solution. It's the best time to challenge their stars or A-players - a great opportunity to prepare for the upswing.

Dr Wellins has spearheaded DDI's research for the past 25 years and is a recognised author and speaker on talent management. He is also a primary adviser and contributor for the new workforce model on professional competencies of the American Society for Training and Development. He has written for more than 20 publications and published six books.

pichaya@nationgroup.com