Leadership Development is Key for Firms Looking for Fast Growth in
SYDNEY--(BUSINESS WIRE)--Oct. 7, 2009--
As western multinational companies continue to rely on Asia Pacific to
counterbalance slowdowns in other regions, a new study on leadership
effectiveness conducted by the Corporate Executive Board (NASDAQ: EXBD),
a leading research and advisory services firm with offices in Asia
Pacific, highlights a glaring gap in the leadership talent necessary to
drive growth. Rising local leaders in Asia were considered a full 10
percent less effective than their peers in Western markets.
“Corporate is demanding growth rates from their Asia Pacific
organizations at a multiple of GDP growth. Companies that expect to grow
at 20 or 30 percent need to have the talent in place to lead and manage
the change that is inherent with such exponential growth,” noted Christy
Forest, Executive Director for Asia Pacific at the Corporate Executive
A Corporate Executive Board survey of nearly 1,000 top business
executives in the Asia Pacific region highlighted that leaders at
western multinationals in China were perceived as skilled at process and
relationship management, but are lacking sufficient strategic thinking
skills, global market experience, and talent development competencies.
In fact, only 1 in 4 local leaders in China were perceived as effective
at these latter business-critical competencies.
Many organizations have imported western ex-pat leaders from more mature
markets to fill this gap in the short term, but this strategy comes with
a trade off – ex-pat leaders most often do not have the same level of
sensitivity to the cultural differences in the region and the strong
business relationships built over time of their local peers.
Western multinationals that will be most successful in building a
sustainable high-growth business are those that pay close attention to
and properly focus their resources on leadership development. Executive
investment in the development of leadership talent has a greater effect
on revenue and profit than any other talent management activity –
impacting top and bottom lines by 9% and 10%, respectively.
About the Corporate Executive Board
The Corporate Executive Board drives faster, more effective
decision-making among the world’s leading executives and business
professionals. As the premier, network-based knowledge resource, it
provides them with the authoritative and timely guidance needed to excel
in their roles, take decisive action and improve company performance.
Powered by an executive network that spans over 50 countries and
represents more than 80% of the world’s Fortune 500 companies, the
Corporate Executive Board offers the unique research insights along with
an integrated suite of exclusive tools and resources that enable the
world’s most successful organizations to deliver superior business
outcomes. For more information, visit www.exbd.com.
About the APAC HR Executive Board and APAC CEO Executive Board
In Asia Pacific, the organization is a leading provider of employment
brand analysis, best practices research, and decision-support services.
The APAC CEO Executive Board accelerates regional CEO capabilities in
their mission to: execute on their strategic priorities; build their
talent bench; drive the customer experience; and optimize sales. The
Board has a proprietary database of more than 100,000 labor market
participants in China and India, allowing for detailed analysis of
organizations’ Employment Value Propositions (EVP). Published studies
and best practices include Accelerating Leader Development in China;
Focusing Managers on Talent; Managing Employee Retention in China; and
Building Compelling Career Paths in Asia.
Source: Corporate Executive Board
Corporate Executive Board
Joni Renick, 571-303-4074