New countries new leadership Pinar Akkaya Montreal HR Congress
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Transcript of New countries new leadership Pinar Akkaya Montreal HR Congress
Emerging markets are becoming the new centers of gravity for the global economy: Countries that were once the source of low-cost manufacturing are now becoming attractive consumer markets.
84% of world’s population.
2000 to 2010 > 96% increase in income levels in emerging markets. 45% further until 2016.*
Sources 1.International Monetary Fund, “2012 World Economic Outlook Database,” October 2012, 2 .UN Conference on Trade and Deevelopment, 2012
By 2015, 26% of the global economy.
Real GDP growth is twice faster. By 2030, 70% of world GDP growth will come from emerging markets.
From 2000 to 2011, FDI in emerging markets nearly tripled: USD 684 billion. And in 2012, FDI in emerging markets surpassed that of developed economies. (**)
Robust Informal Economy, Bureaucracy, Corruption
High Vulnerability, High Volatility
High Diversity, High Variation
Culture and People Issues
An increasing number of roles become international.
No more centralization vs decentralization > Network organisations that are more responsive and proactive respond better to the needs of emerging markets.
Flexible structures replace rigid structures.
Emerging Markets Change the Game.
Speed. “In emerging markets, there is no luxury of time.” When
business is growing by double digits each year, speed is critical for success in these emerging markets. You have to be agile in your actions and decisions.
Flexibility. In emerging markets, one size fits none. Companies may
have to vary products, services and business models even within the country. The challenge is to create appropriate solutions in emerging markets that are as efficient and relevant as in mature markets.
Transparency. In emerging
markets, the need for transparency is greater than ever. You should set your expectations in a realistic way and be transparent about your reason of existance, your business results, your expectations from the market and your KPIs.
Cultural fluency. Every culture offers its own set of
opportunites and challenges. You should look for ways to read this culture well, with all its dynamics and adapt your business, your management and your communication.
Local workforce. Local consumers want tailored
products and services. A local workforce will have an innate understanding of these.
In the India, IBM hires a new employee every 5 minutes.
For P&G, the average age of emerging market leaders is late 20s to mid 30s.
In 2004, Nokia had 250 employees in India.Today, that number is nearly 15,000, an increase of nearly 6,000 percent in 10 years.
GE attrition rate in China runs around only 11–12%, but the talent pipeline remains one of their biggest challenges.
50% have difficulty in filling key positions (1Q2011 Talent Watch ). “Lack of available local talent” is the leading barrier to business growth. (1)
77% cited supply of experienced leaders a barrier to growth (2)
80% in China reported severe talent shortages, particularly for leader roles. (3)
In 2030, China will be confronted with a lack of 20M employees. (4)
Sources 1.Multi-Polar World: Rise of the Emerging-Market Multinational, Accenture, 2008) / 2. Organisation Solutions Study, China / 3.Hewitt Best Employers in Asia study / 4 World Economic Forum Report
Available talent of experienced leaders is thin however, the demand is increasing.
How companies recruit, retain and manage people across the entire organization will often determine their success or failure in emerging countries.
Leadership gap. Unprepared people assuming higher level of positions. Unexperienced leaders who have never lived through such market dynamics.
FACT> Emerging market leadership role is not a comfortable chair to sit, no matter where the leader comes from.
Volatile economic conditions
Infrastructure and supply chain issues
Talent supply shortages
Changing legal and regulatory environments
Government relations
Lack of resources available in larger BUs
...
FACT > Leadership skills are less transferable than we think.
Different countries, different ways of doing business.
Some characteristics of a leader may not be appreciated as a good leadership characteristic in another country due to cultural differences.
People’s expectations of how leaders should behave vary across countries.
The team that supports the leader can become a critical factor when the leader changes place.
A copy-paste approach would not work, this can trap the leader into the failure.
Growth
Potential
Complexity
Environment
Lack of leadership talent
HR Challenges
A new model
Global leaders
New competencies
New leadership
New Game
Local power and initiative
A compelling vision
A global mindset
Ability to manage complexity
Flexibility
Maturity for the role
Act with speed and agility
Ability to drive growth
Lead the business.
Ability to «unlearn»
Creating meaning and a common purpose
Appreciating diversity
Building trust, giving inspiration
Ability to build a strong upper management
Sharing leadership
Ability to «build» a team
Nurturing future global leaders
Social skills
Communication
Lead the team.
Cultural intelligence&fluency
Self-awareness, emotional intelligence
Ability to manage stress
Engagement
Integrity and high level of ethics
Adaptation
Curiosity
Change awareness
Ability to speak languages
Lead self.
“Bring your mind.... and your heart to the office.”
http://thechairmansblog.gallup.com/2014/10/why-being-engaged-at-work-isnt-as.html