The Westernization of Talent Management An Unstoppable Trend

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The Westernization of Talent Management An
Unstoppable Trend ?

• Ian Till, SEA Head of Talent, Leadership
  Engagement, Hewitt Associates
• ian.till_at_hewitt.com

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Who we are
Organisation Development Performance
Management Staffing Solutions Retention
Strategy Organization Structure Employee
Benefits Benefits Strategy Benefits Program
Design Mergers Acquisitions Due Diligence
Reviews Post-Merger Integration Measurement Total
Compensation Solution Employee Engagement Total
Rewards Reward Strategy Long-term
Incentives Variable Pay Programs Reward Benefit
Administration Leadership Development Competency/l
eadership profiles Development plans Leadership
coaching
a
quick
look at
Hewitt
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Economic Predictions for Asia

• Most Asian economies will remain among the
  fastest growing in the world. Annual average GDP
  growth in the region in 2006-2020 will be 4.9.
• Foresight 2020 Economic, industry and corporate
  trends. Economist Intelligence Unit 2006
• China GDP (US) is projected to overtake UK and
  Germany within the decade and Japan and US by
  2045
• Indias GDP is projected to overtake Italy,
  France, Germany and Japan in 3 decades.
• Asia could (hypothetically) have 5 of the 10
  biggest economies in the globe by 2050 (China,
  India, Japan, combined Korea and Indonesia)

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An Increasingly Global World
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The World in 2020
Globalization Redistribution of economic power,
emerging markets, particularly China and India
will benefit. Demographics Population shifts,
ageing populations, workforce will become older
and more female. Atomization - Processes, firms,
customers and supply chains will fragment.
Collaboration will become more important. Personal
ization - Products and services will become more
customizable, modular design, value creation
through bundling. Knowledge Management
improving the productivity of knowledge workers
through technology. Foresight 2020 Economic,
industry and corporate trends. Economist
Intelligence Unit 2006
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New Jobs in the World Economy 2005-2020

Millions Percentage Developing Asia
315.5 67.0 Latin America
45.0 9.5 US
12.5
2.6 EU25 8.4
1.8
Foresight 2020 Economic, industry and corporate
trends. EIU 2006
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Talent Availability Forecast
Sources Press search industry associations
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This will drive changes in the Workplace
Demographic, economic, socio-political, and
technological shifts are driving five workforce
trends
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Asia will lead the world but who will lead
Asia ?

• Working Age Population Change in Asia (2000 -2010)

Change in Working-age Population in South-eastern
Asia 1950-2050
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the shortage is visible in ALL Asia Pacific
countries
The Talent Shortage
Percentage of companies reporting an
acute skill shortage in leadership - Asia Pacific
45.10
28.21
23.2
19.23
17.50
16.67
15.63
14.29
10.00
8.33
Australia
China
Hong
Indonesia
Korea
Malaysia
Philippines
Singapore
Taiwan
Thailand
Kong
Top Companies for Leaders Research, Hewitt
Associates 2003
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Historic Leadership Styles More Similar than
Different ?
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Research has identified 6 Universal Leadership
Dimensions

• 62 nation, 11 year study involving 170
  researchers
• Source Robert J House et al., Culture,
  Leadership and Organizations The GLOBE study of
  62 Societies, 2004

The 6 Global Leadership Dimensions
Primary Leadership Dimensions21
Culturally Contingent Attributes 22
Universal Positive Attributes 22
Universal Negative Attributes 8
Leader Attributes
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Examples of Cultural Differences in the Global
Leadership Dimensions
Greatly inhibits outstanding leadership
Greatly contributes to outstanding leadership
7
2
3
4
5
6
1
Charismatic / Value Based
Power to inspire devotion and commitment for the
groups goals
Middle East cluster least associated this
dimension with outstanding leadership
Team Oriented
Effective teambuilding and implementation of a
common purpose or goal among team members
Latin American Cluster saw this most positively
with outstanding leadership Middle East cluster
least associated this dimension with outstanding
leadership
Participative
The degree to which managers involve others in
making and implementing decisions
Germanic Europe rated this highest, while the
Middle East cluster rated this lowest
Humane Oriented
Reflects supportive and considerate leadership,
but also includes compassion and generosity
Southern Asia Cluster gave this the highest
score, with the lowest coming from Nordic Europe
Self Protective
Ensuring the safety and security of the
individual or group member
Southern Asia Cluster gave this the highest
rating (about average) while Nordic Europe
cluster saw this as inhibiting good leadership
Autonomous
Refers to independent and individualistic
leadership
Minor differences across clusters, grouped around
the mid point
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Of course, culture plays a role

• Source SigmaTwo Group.com, ITIM, 2003

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Should a Western Leadership Model be replaced by
an Asian Leadership model in Asia ?

• No Globalization warrants a model that is
  neither Western or Asian, but includes element of
  all best practices
• Yes but the companys culture must also be kept
  in mind
• No but elements of the Western model should be
  adapted for Asia
• Yes Asia has its own unique business culture
  that is evolving to take the region into the
  future
• No the Western model has proven to be effective
  and Asian business leaders should embrace it

35.5
25.8
23.9
13.3
1.5
The Dream Team, Korn Ferry EIU, 2007
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Three Leadership Truths
A strong correlation between great leadership
practices and great financial results
Top Companies for Leaders, Hewitt Associates,
2001 - 2007
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Drilling down on the Leadership Truths

• 1. CEO and Board Provide Leadership Inspiration
• Tighter integration of business management
  leadership development
• Increase in time spent by senior management on
  leadership
• Greater accountability
• Passion matters
• 2. Maniacal Focus on High Potential Talent
• Earlier identification
• Greater use of hi pots to solve problems / foster
  innovation
• More rigorous assessment
• 3. The Right Practices Done Right
• Process, not programs
• Willing to scrap what does not work
• Consistent execution means integration
• Follow through and accountability matters

Top Companies for Leaders, Hewitt Associates,
2001 - 2007
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Differences between Asia and the rest of the World
GLOBAL
APAC
Rest
Rest
Best
Best
50
Leaders spend 1/3 or more of their time on
leadership development
34
50
34
70
Leaders explicitly link leadership development to
the Business Strategy
36
85
37
90
Leadership Effectiveness is measured
61
95
62
100
Have a formal succession planning process in place
56
95
66
70
Formally Identify High Potentials
55
85
62
100
Have formal leadership and education
opportunities for high potentials
68
100
68
90
Provide special development opportunities to high
potentials
64
95
69
Top Companies for Leaders, Hewitt Associates, 2007
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Impact on Talent Management in Asia

• Flexible recruitment and retention
• Enhanced succession management
• Increased rotational assignments
• Increased empowerment of employees (esp. high
  potentials)
• Increased need for cultural sensitivity
• Hybrid of East Western Styles

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