CONNECTING COUNTRIES How companies and executives are maximising opportunities in the Asian century A report from Telstra Global - Telstra ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
CONNECTING COUNTRIES How companies and executives are maximising opportunities in the Asian century A report from Telstra Global
FOREWORD 3
EXECUTIVE SUMMARY 4
SETTING THE SCENE 6
1. Business performance in Asia
1.1 Meeting financial and strategic objectives 6
1.2 Asia Business Champions – a profile 8
FOCUS ON BUSINESS IN ASIA 10
2. Challenges to success working across Asia
3. Managing across multiple markets – walking the talk
3.1 Managing across multiple markets – important behaviours 13
3.2 Managing across multiple markets – behaviours in practice 15
3.3 Walking the talk - the gap between intention and action 17
4. Expansion or consolidation – strategies for success in Asia
4.1 Expansion, consolidation or both? 20
4.2 Markets for expansion 22
4.3 Effectiveness of local and global management teams 23
FOCUS ON LEADERSHIP IN ASIA 25
5. Leading across Asia – successful leadership across countries
5.1 The personality traits of a successful leader 25
5.2 The experiences of a successful leader 27
FOCUS ON EMPLOYEES IN ASIA 29
6. Working across Asia – personal experiences
6.1 Benefits of working in other countries 29
6.2 Working in other countries – how hard is it and would you do it all again? 30
6.3 Future prospects – where will you be working in five years’ time 31
and who for?
CONCLUSION 33
Respondent profile 35
Methodology 37
Connecting to Asia 38
About Telstra Global 39
Our purpose - Our products and services 40
About Telstra Corporation Limited 43
FOREWORD
We are now in what is almost universally known as the Asian Century, a time when the great growth
engine of the world is shifting to the fast-growing Asian economies.
With that has come a massive shift in business focus as international companies look to expand
their operations to the area of greatest opportunity – Asia.
But as many companies have discovered, the move is not as simple as setting up an office in
Beijing, Mumbai, Hanoi, Singapore, Seoul, Vientiane, Tokyo, Bangkok or any of the scores of bustling,
booming cities that populate this extraordinarily vast, diverse and exciting area of the globe.
Expansion into foreign territory is never easy. Changes in regulation, politics, custom, culture
and climate make international growth a sometimes nerve-wracking and always interesting
undertaking.
This report, the first in what we expect will become an ongoing series, is an attempt to seek out the
opportunities as well as the possible pitfalls from companies that have gone, or are going, through
the process of expanding their horizons in Asia. We interviewed executives from more than 4,100
companies, some of which were based in Western countries, others with their origins in Asia.
That research delivered some fascinating insights into the problems many encountered but,
importantly, it also enabled us to isolate a number of companies that had handled the sometimes
fraught Asian transition better than their peers.
We call them Asia Business Champions and we believe the journey those companies have
successfully undertaken could provide a road map for the many other hopeful companies which
intend embarking on the expansion path.
And because we had such a large group of respondents we were able to further drill down into
the Asia Business Champions to find out not only what sets their companies apart but also what
differentiates their executives and their employees.
The Asian Century represents one of the most fundamental shifts in economic power in history.
For companies seeking to be a part of that shift success can be lucrative.
It can also be elusive.
Connecting Countries provides a number of compelling lessons and insights from pathfinders on
the ground– executives and companies already connecting across countries in Asia - which we
believe will inform decision making and management strategy now and into the future.
Martijn Blanken
Managing Director - Telstra Global
Hong Kong, March 2014
CONNECTING COUNTRIES 03
EXECUTIVE
SUMMARY
This report is based on the findings of
extensive quantitative and qualitative
research commissioned by Telstra Global.
As Asia becomes increasingly important to the future of Nine lessons from Asia Business Champions:
companies around the world and as companies start to work From looking at the success stories from these top performers we
across more countries in the region we wanted to help provide have identified nine lessons in total from the Asia Business
an overview of how successful – and unsuccessful – companies Champions – six lessons that relate to how they operate as
were operating in this complex market. companies, two lessons on leadership and finally one lesson
based on the experience of workers.
Many companies have managed to do well in Asia these past
three years – overall 21% have been very successful at meeting
their financial and strategic objectives in the region. From a
regional perspective Western companies appear to have returned Management lesson #1
the strongest results with 27% of Western companies reporting Instil an operating culture and style that honestly
they had been very successful at meeting their financial and identifies challenges, allowing them to be dealt with
strategic objectives in the last three years, compared with and overcome.
only 17% of Asian companies. But optimism for the future is
Asia Business Champions are more likely than other companies
high across the board with 42% of companies (44% Western
to admit to facing challenges operating across multiple countries
companies and 41% Asian companies) expecting to exceed these
– in particular finding good local talent and expectations of
same objectives over the next three years. However just 5% of
financial returns too quickly from a local market.
companies far exceeded their goals in the last three years and
expect to exceed them again in the next three years too – we call
these companies Asia Business Champions.
Management lesson #2
Understand that managing across countries requires
special skills. Interpreting local needs to head office and
A profile of Asia Business Champions
head office’s need to the local market and a focus on
Asia Business Champions consist of just 5% of overall putting the right people with the right skills in the right
respondents, representing the best of the best. Interestingly places are key to success in Asia.
these leaders share a few common traits;
Asia Business Champions place greater emphasis on all
• Asia Business Champions are likely to be companies from management behaviours associated with managing a business
the US or UK rather than Asian companies - 32% of Asia across many countries than other companies – this gap is
Business Champions are US companies compared with 14% of greatest when it comes to communication between local offices
companies overall and 8% are UK companies compared with and global headquarters and screening professionals for
3% overall. suitability for postings in other countries.
• More likely to have a global footprint, with 82% of Asia
Business Champions operating both in Asia and countries
outside Asia, compared with 40% for other companies Management lesson #3
Walk the talk. Leaders minimise the gap between the
• Although Asia Business Champions come from a broad
cross-section of industry sectors the two stand out sectors are behaviours they know are important to manage across Asia
ICT and financial services both of which are overrepresented and the actions they take to live up to those behaviours.
among Asia Business Champions as a whole. To assess how well companies in Asia are walking the talk we
• Staffed for success, in that Asia Business Champions are created the Connecting Countries Asia Business Accountability
significantly more likely to employ more than 200 workers and Score (ABAS), which looks at the conversion of intention into
less likely to employ fewer than 20. action when it comes to managing across multiple countries. Asia
Business Champions have a better ABAS than other companies
for every single behaviour we tested.
04 CONNECTING COUNTRIES
Management lesson #4 Executive lesson #2
Move forward multiple growth strategies concurrently and Personality traits are more important than prior
be committed to these strategies. The ability to execute experience and knowledge for successfully leading a
diverse growth strategies – rather than bet on just one – company across Asia.
can hedge risk and maximise opportunities for the leaders Leaders in Asia Business Champions know that it is easier to
identified in the report. compensate for poor local language skills or little experience in
When it comes to consolidation or expansion strategies the other markets than it is for a personality not suited to working in
approach of Asia Business Champions stands out in one crucial other countries. Asia Business Leaders ascribe less importance
way – balance. They give more weight to the importance of to these characteristics as they do to personality traits like
both strategies – expansion and consolidation – as extremely flexibility, adaptability, honesty and integrity.
important to success.
Employee lesson #1
Management lesson #5 Make postings in other countries worth your employees’
Don’t be constrained by geography. while and they will repay the favour in increased loyalty
and lower turnover.
Not only are Asia Business Champions hungry for expansion
within Asia, they are also more likely to look for that expansion Asia Business Champions do not make being in other countries
in places other companies are not looking. This implies a global any easier for their employees than staying at home, but they
vision and strategy, balancing Asia against strategic business do make the experience more rewarding for them. Employees
growth in other regions. Companies that see expansion as working for Asia Business Champions benefit more from their
extremely important for success prioritise China, Singapore, time working in other countries and are consequently more likely
Hong Kong and India as key markets for growth within Asia. to want to work in other countries again and more likely to stay
working for their current employer.
By looking at stories of success in the region, these nine key
Management lesson #6 management behaviours represent an opportunity for companies
Know that leadership matters. in Asia, of any national origin or industry to close the gap between
Asia Business Champions have stronger and more effective their goals and their achievements.
leadership teams in place both in their global headquarters
and in their local offices. Getting the right balance of local and
headquarters leadership strength and autonomy is a key trait of Methodology
successful companies.
This report is based on the findings of extensive quantitative
and qualitative research commissioned by Telstra Global. The
quantitative analysis draws on more than 4,100 interviews with
Executive lesson #1 senior executives in China, Hong Kong, India, Indonesia, Japan,
Combine resilience, curiosity and creativity to create a Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand, and
winning leadership style in Asia. Vietnam. This large dataset allows us to drill down in detail
These traits are the key differentiators of leaders in Asia into our findings to look at variations by region, country and by
Business Champions compared to other leaders, they ensure industry as well as by the seniority of a respondent’s role within
that these senior executives bring fresh thinking to their their company. The quantitative research is supported by 12
business problems matched by an inherent interest in learning in-depth interviews with C-level executives with significant
and the ability to withstand the difficulties life at the top can professional experience operating across multiple countries
throw at you in Asia. conducted in Beijing, Hong Kong, Singapore and Jakarta.
CONNECTING COUNTRIES 05
SETTING
CONNECTING
COUNTRIES
THE SCENE
Business performance in Asia
1.
Meeting financial and strategic objectives However one in four companies (25%) were unsuccessful over
the past three years in Asia and 11% were neither successful nor
Over the past few years many economies across Asia have unsuccessful.
continued to enjoy healthy growth while those in other countries
have faltered. Companies operating in Asia have benefited from
that growth and we see healthy past performance matched with Looking to the next three years we see significant optimism for
bullish forecasts for the future in this research. business performance in Asia: 83% of companies expect to meet
or exceed their strategic and financial objectives, 32% expect to
somewhat exceed their objectives and 11% expect to far exceed
Over the past three years 21% of the companies in this study those objectives.
have been very successful when it came to meeting their
financial and strategic objectives in Asia and 41% say that they
have been somewhat successful.
Success meeting financial and strategic objectives Success meeting financial and strategic objectives
– last three years – next three years
45% 45%
41%
40% 40% 40%
35% 35%
32%
30% 30%
25% 25%
21%
20% 17% 20%
15% 15% 13%
11% 11%
10% 8% 10%
5% 5% 3%
2% 2%
0% 0%
Very Somewhat Neither Somewhat Very Can’t say Fall far Fall Meet Somewhat Far exceed Can’t say
unsuccessful unsuccessful successful nor successful successful short somewhat objectives exceed objectives
unsuccessful short objectives
Over the past three years, how successful has the company that you work Thinking about the next three years, do you expect that your company will meet,
for been in meeting its financial and strategic objectives in Asia overall? exceed or fall short of its financial and strategic objectives in Asia overall?
Base: working in a company working across multiple countries Base: working in a company working across multiple countries
06 CONNECTING COUNTRIES
Regional Variation:
Western companies are more likely than Asian
companies to have been successful meeting their
financial and strategic objectives over the last
three years in Asia (66% cf. 59%).
Asian companies are more likely than Western
companies to expect to fall short of their strategic
and financial objectives in Asia over the next three
years (17% cf. 11%).
Industry breakdown
Companies in the ICT sector are
more likely to report having been
very successful in the past three
years meeting their financial and
strategic objectives in Asia,
however they are no more
confident about exceeding their
objectives for the next three years
than companies in other
industries.
The industries that may stand out
in Asia in the future are
companies in the financial
services and insurance sectors–
they are more bullish about the
next three years and are more
likely to expect to exceed their
financial and strategic objectives
than those in other industries.
CONNECTING COUNTRIES 07
SETTING
THE SCENE
Asia Business Champions Our report focuses on this group of highly By focusing on companies with long-term
successful companies in particular to and sustained levels of success we are
– top performing companies understand how it is that they differ able to gain insight into those companies
in Asia from their peers and whether there are that truly excel in Asia.
Just 5% of companies were both lessons that all companies operating
extremely successful in the past three across Asia can learn. We call this group of
years meeting their financial and strategic respondents Asia Business Champions.
objectives in Asia and expect to exceed
those objectives in the next three years.
Highly successful Optimistic
performance for future
last three years outlook
Connecting Countries focuses on Asia Business Champions, the top 5% of
companies in Asia based on past high performance and future promise of success
More likely to be companies More likely to be operating
headquartered in the US or UK inside and outside of Asia
Asia Business Champions more likely to be staffed for success
With 200+ staff
08 CONNECTING COUNTRIES
Global footprint
Asian Leaders are more likely to be companies with a global
footprint than other companies in this study – 82% operate both
in Asia and in countries outside of Asia, compared with 40% for
other companies.
Asia Business Champions are also more likely to be US and
UK companies – 32% of Asia Business Champions are US
companies compared with 14% of companies overall and 8% are
UK companies compared with 3% overall.
ICT and financial services excel
Although Asia Business Champions come from a broad cross-
section of industry sectors the two stand-out sectors are ICT and
financial services both of which are overrepresented among Asia
Business Champions as a whole.
Staffed for success
The final way in which the profile of Asia Business Champions
differs from other companies is in the number of workers they
employ – Asia Business Champions are significantly more likely
to employ more than 200 workers and less likely to employ fewer
than 20.
CONNECTING COUNTRIES 09
FOCUS ON
CONNECTING
COUNTRIES
BUSINESS
IN ASIA
Challenges to success working
2.
across Asia
Some of the key challenges companies face are winning the
battle for talent in Asia and being patient with the money
invested in key markets thus allowing those companies to take
the time to establish themselves and not rushing for profit.
The battle for talent
Finding good talent is the most significant problem companies
operating in multiple markets in Asia faced over the past three
years – 31% say this is extremely challenging. Finding good
local talent is particularly problematic for those working in
professional services companies whose business model often
heavily relies on the staff it can attract.
Expecting returns too quickly
Companies expecting to see financial returns too quickly
from a local market runs a close second – 29% say this was
extremely challenging.
Management lesson #1
Instil an operating culture and style that honestly
identifies challenges, allowing them to be dealt with and
overcome. It is unlikely that Asia Business Champions face
“Success requires a much longer timeframe than greater challenges than their less successful peers –
a lot of companies can deal with because they’re however a candid self-appraisal is what sets them apart.
getting chased for quarterly earnings or whatever
the case may be, but success is a very long run
thing… someone becomes an overnight success How Asia Business Champions cope with
after ten years hard work.” these challenges
An analysis of Asia Business Champions is illuminating
*Quote from C-level executive based in Beijing, – overall they are more likely to say that they faced issues that
as part of Telstra Global’s qualitive research.
were extremely challenging over the last three years than other
companies. According to our data Asia Business Champions are
more likely to say that they have faced more problems than
other companies.
So it is not that these leading companies have had an easier
time in Asia than other companies – on the contrary they would
appear to have had greater difficulties. However it may well be
that there is greater awareness within these companies when
faced with these challenges and a greater willingness to identify,
acknowledge and deal with them openly and honestly that has
seen them resolve these problems more efficiently.
10 CONNECTING COUNTRIES“Sometimes the folks on the
ground will tell home office
about what’s really
happening here and home
office won’t necessarily want
to listen… they will ignore it.
They’ll ignore the advice,
they don’t want to hear it.”
*Quote from C-level executive based in
Hong Kong, as part of Telstra Global’s
qualitive research.
S2.A
Challenges working across multiple countries
– Asia Business Champions and other companies
Finding global local talent 45%
30%
Companies expecting to see financial 38%
results too quickly from a local market 28%
Companies not adapting to the specific 33%
needs of local markets 24%
Meeting regulatory and 31%
compliance requirements 24%
Inadequate communication between global 30%
headquarters and local office 24%
Not enough authority given to local 28%
decision makers by global headquarters 24%
A lack of understanding about culture 26%
24%
Too much authority given to local decision 22%
makers by global headquarters 18%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Asia Business Other companies
Champions
In the last three years, which, if any, of the following challenges have you observed when working for companies that
operate across multiple markets?
Base: Working or have worked in a company working across multiple markets
CONNECTING COUNTRIES 11FOCUS ON
BUSINESS
IN ASIA
Regional Variation:
Western companies are more likely than Asian
companies to find it extremely challenging to find
good local talent and local decision makers are not
given enough authority by global headquarters.
Conversely Asian companies are more likely
than Western companies to find it extremely
challenging that local decision makers are given
B too much authority.
Finding good local talent extremely important
– analysis by industry
Media & broadcasting 51%
Professional services 39%
Manufacturing 34%
ICT 33%
Financial services & insurance 31%
Education 25% Industry breakdown
0% 10% 20% 30% 40% 50% 60%
Companies working in the media
and broadcasting sector and
those working in professional
services are more likely than
In the last three years, which, if any, of the following challenges have you observed when working for companies
that operate across multiple markets? (Finding good local talent only) those in other industries to be
Base: Working or have worked in a company working across multiple markets challenged finding good local
talent while those in the
education sector were less likely
to find it challenging.
12 CONNECTING COUNTRIESMANAGING ACROSS
CONNECTING
COUNTRIES
MULTIPLE MARKETS
Focusing on critical behaviours
3.
Important behaviours extremely important – 23 points more than those in other
companies.
When it comes to managing a company across multiple markets
a broad cross-section of skills is required – foremost among
these are effective communications across and between Asia Business Champions rate recruiting professionals with
those markets and securing the right employees to work in the multimarket experience and screening those professionals for
company. the suitability for postings in other markets as the two joint
second most important behaviours.
For all companies managing operations across Asia
communicating the needs of local markets to headquarters and All of these behaviours are more important to Asia Business
those of headquarters to local markets rank first and third on Champions than they are to other companies, and on average
the list by importance of the management behaviours required Asia Business Champions rate each behaviour one and a half
to successfully manage across multiple country markets. The times more important than other companies.
second and fourth most important behaviours are recruiting
professionals with past experience across multiple markets
and screening professionals to ensure their suitability for Management lesson #2
postings in other markets.
Understand that managing across markets requires
special skills. Interpreting local needs to head
Asia Business Champions are more likely to identify all of office and head office’s need to the local market and a
these behaviours as extremely important than other companies. focus on putting the right people with the right skills in the
Almost two-thirds of Asia Business Champions rate explaining right places is key to success in Asia and Asia Business
the needs of the local market to global headquarters as Champions recognise this.
S3.1A
Very important behaviours for managing across multiple markets
– Asia Business Champions and other companies
Explaining the needs of the local market to 64%
global headquarters 41%
Screening overseas professionals to ensure 56%
their suitability for overseas postings 33%
Recruiting professionals with multimarket 56%
experience 36%
Explaining the needs of global 53%
headquarters to the local market 36%
Bringing senior leaders from local office to 53%
visit global headquarters 32%
Bringing senior leaders from global 50%
headquarters to visit local offices 31%
Investing in significant local cultural and
business related induction programs for 48%
newly posted staff 31%
In your experience, when it comes to
Encouraging local staff to take positions in 46%
global headquarters to build their company successfully managing a company
33%
across multiple markets, how important
Encouraging staff from global headquarters 44% are the following?
to take positions in local offices to build their
company network 31% Base: Working or have worked in a
0% 10% 20% 30% 40% 50% 60% 70%
company working across multiple
markets
Asia Business Other
Champions companies
CONNECTING COUNTRIES 13MANAGING ACROSS
MULTIPLE MARKETS
An analysis of the importance companies
ascribe to each behaviour based on where
those companies are headquartered Industry breakdown
proves particularly telling. Western
companies tend to be more likely Companies in the ICT sector are more likely than others to believe that
than Asian companies to think that all recruiting professionals with multimarket experience is extremely
behaviours are extremely important to important and those in manufacturing are more likely than their peers
successfully managing across multiple in other industries to believe it is extremely important to encourage staff
countries except for encouraging
from global headquarters to take positions in local offices.
local staff to take positions at global
headquarters which they both rate equally.
Conversely those in the education sector tend to be less likely to think
The biggest gap between the assessment that it is extremely important to recruit professionals with multimarket
of Asian companies and Western experience, to explain the needs of the local market to global
companies centres on how important they headquarters, to bring senior leaders from global headquarters to local
think explaining the needs of the local
markets or to invest in cultural and business-related staff induction
market to global headquarters is. 52%
of Western companies think that this is programs.
extremely important but only 39% of
Asian companies think the same.
S3.1B
Very important behaviours for managing across multiple markets
– Asian companies and Western companies
Explaining the needs of the local 52%
market to global headquarters 39%
Recruiting professionals with 42%
multimarket experience 36%
Explaining the needs of global 41%
headquarters to the local market 35%
Screening overseas professionals to ensure their 40%
suitability for overseas postings 32%
Bringing senior leaders from local 39%
office to visit global headquarters 31%
Bringing senior leaders from global 38%
headquarters to visit local offices 31%
Investing in significant local cultural and business 36%
related induction programs for newly posted staff 31%
Encouraging local staff to take positions in global 36% In your experience, when it comes to
headquarters to build their company network 33% successfully managing a company
Encouraging staff from global headquarters across multiple markets, how important
to take positions in local offices to build their 34% are the following?
company network 31% Base: Working or have worked in a
0% 10% 20% 30% 40% 50% 60% company working across multiple
markets
Western Asian
headquartered headquartered
14 CONNECTING COUNTRIESBehaviours in practice Asia Business Champions are more than
twice as likely than other less successful
Companies managing across Asia are not companies to do a very good job when
doing a good job of living the behaviours it comes to performing all of the key
they know to be important for success. management behaviours – demonstrating
Less than one in five are on average doing the link between actively performing key
a very good job at the behaviours they rate behaviours and success in Asia.
as important to success.
Where companies perform best is when
it comes to bringing senior leaders from
global headquarters to local offices – 23%
say they do a very good job of this. Where
they perform least well is in investing in
induction programs for newly posted staff
and in encouraging local staff to take
positions in global headquarters – in both
cases only 18% of companies say they do
a very good job.
S3.2A
Doing a very good job demonstrating behaviours for managing across
multiple markets – Asia Business Champions and other companies
Explaining the needs of global 42%
headquarters to the local market 19%
Bringing senior leaders from global 40%
headquarters to visit local offices 20%
Bringing senior leaders from local 39%
office to visit global headquarters 15%
Screening overseas professionals to ensure 37%
their suitability for overseas postings 16%
Encouraging staff from global headquarters to take 35%
positions in local offices to build their company 17%
Explaining the needs of the local 35%
market to global headquarters 16%
Encouraging local staff to take positions in 34%
global headquarters to build their company 16%
Recruiting professionals with Does the company that you work for
34%
multimarket experience 17% do a good or a poor job when it comes
to the following?
Investing in significant local cultural and 32%
business related induction programs for Base: Working in a company working
newly posted staff 16% across multiple markets
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Asia Business Other companies
Champions
CONNECTING COUNTRIES 15MANAGING ACROSS
MULTIPLE MARKETS
Regional Variation:
Asian companies are more likely than Western
companies to be doing a good job of:
• Encouraging local staff to take positions at global headquarters
(14 points better than Western companies)
• Screening professionals to ensure suitability for postings in other
countries (8 points better)
• Investing in staff induction programs (7 points better)
• Explaining the needs of the local market to global headquarters
(6 points better)
Interestingly while Asian companies do a better job
of performing these behaviours, as noted above they
tend to rate them as less important. While Western
companies tend to rate these behaviours as being more
important, tellingly, they tend to not do as good a job
putting these strategies into action.
Industry breakdown
The industry that performs these key management behaviours best is the
financial services and insurance industry, out-performing the average in
all but two areas: recruiting professionals with multimarket experience
and explaining the needs of the local market to global headquarters.
Conversely the professional services industry underperforms other
sectors on average when it comes to encouraging staff from global
headquarters to take positions in local offices, encouraging local staff to
“Hire lots of locals and move take positions in global headquarters and investing in cultural and
the locals between offices. company induction programs. Those in the education sector underperform
Mould him into what you their peers in other industries when it comes to explaining the needs of the
want and then push him local market to global headquarters, bringing senior leaders from local
back.” offices to visit global headquarters and bringing senior leaders from global
headquarters to local markets.
*Quote from C-level executive based in
Sinagapore, as part of Telstra Global’s
qualitive research.
16 CONNECTING COUNTRIES“I think that the induction is
absolutely important. So it is
well worth spending lots of
money upfront. This
investment is going to pay off
massively.”
*Quote from C-level executive based in
Singapore, as part of Telstra Global’s
qualitive research.
The gap between intention Asia Business Champions have on
average a much higher ABAS than other
and action businesses in Asia – 71 for Asia Business
There is a clear gap across all behaviours Champions and 51 for other companies.
between the importance companies Asia Business Champions are not only
ascribe to these key management more likely to recognise the importance
behaviours and the way they currently of all key management behaviours than
perform those behaviours. All other companies, they are also more likely
multinational companies operating in to match that importance with action.
Asia underperform the values they hold
important to managing successfully
across the region. Management lesson #3
Walk the talk. Asia Business
Champions create a business
To assess the extent to which companies environment that allows them to
match intention and action we created
thrive. These leaders identify
the Asia Business Accountability Score
(ABAS), which looks at the extent to which behaviours and management
an activity is believed to be important and strategies that are important to
the extent to which companies are doing manage across Asia and they take
a good job of it. The ABAS is scored out action to deliver on them.
of 100 – the higher the score the closer a
company comes to matching importance
to performance, the lower the score the
greater the gap between importance and
performance.
“We spend three times more
on meetings than other
Looking at companies in general the
regions. And you know the performance gap is largest when it comes
bean counters tell me that to explaining the needs of local markets
I could get another margin to global headquarters (ABAS of 45).
point on my profit if I cut This is particularly worrying as it is the
back. But I’m just not sure single area that companies think is most
– getting our people together important to successfully managing
is not a cost it’s an across countries.
investment.”
*Quote from C-level executive based in
The only area where performance comes
Hong Kong, as part of Telstra Global’s close to importance is when it comes to
qualitive research. bringing senior leaders out to visit local
offices (ABAS of 72). The average ABAS
across all behaviours is 57 – clearly
demonstrating the sizeable gap between
the behaviours that are important to
successfully managing across multiple
markets and the ability of companies
operating across multiple markets to live
up to those behaviours.
CONNECTING COUNTRIES 17MANAGING ACROSS
MULTIPLE MARKETS
S3.3A
The Asia business accountability score: matching intention with action –
Asia Business Champions and other companies
Bringing senior leaders from global 80
headquarters to visit local offices 65
Encouraging staff from global headquarters to take 80
positions in local offices to build their companies 54
Explaining the needs of global 79
headquarters to the local market 52
Encouraging local staff to take positions in 74
global headquarters to build their companies 48
Bringing senior leaders from local 74
office to visit global headquarters 48
Screening overseas professionals to ensure 67
their suitability for overseas postings 50
Investing in significant local cultural and business 66
related induction programs for newly posted staff 51
Recruiting professionals with 61
multimarket experience 47
In your experience, when it comes to
Explaining the needs of the local 55 successfully managing a company
market to global headquarters 40 across multiple markets, how important
0 10 20 30 40 50 60 70 80 90 are the following? Does the company
that you work for do a good or a poor job
Asia Business Other companies when it comes to the following?
Champions Base: Working in a company working
across multiple markets
18 CONNECTING COUNTRIESRegional Variation:
Asian companies manage to better deliver the
management behaviours they believe in than Western
companies. The average ABAS for Asian companies is
61 while for Western companies it is only 49.
Asian companies in particular do better at walking the
talk when it comes to screening candidates from other
countries, encouraging staff from global headquarters
to take positions in local offices and explaining the
needs of local markets to global headquarters.
Industry breakdown
The financial services and
insurance sector is the top
performing sector when it comes
to delivering the behaviours they
value as important to managing
effectively across countries. Their
ABAS is 64 while the poorest
performing sector – education –
has an ABAS of only 44 followed
by those in the professional
services sector with 45.
CONNECTING COUNTRIES 19EXPANSION OR
CONNECTING
COUNTRIES
CONSOLIDATION
Strategies for success in Asia
4.
Expansion, consolidation Management lesson #4
or both? Move forward multiple growth strategies
concurrently and be committed to these
When companies were asked to consider
strategies. The ability to execute diverse
the importance of both consolidation
in existing markets or expansion into growth strategies – rather than bet on
new countries in the next three years just one – can hedge risk and maximise
consolidation is more likely to be opportunities for the leaders identified
considered extremely important than in the report. Asia Business Champions
expansion (32% cf. 23%). are deeply committed to both expansion
and consolidation – more so than less
successful companies in Asia.
The approach of Asia Business Champions
stands out in one crucial way - balance.
They give more weight to the importance
of both strategies – expansion and
consolidation. They are twice as likely as
other companies to rate expansion as
4.1A
extremely important (45% cf. 22%) and “If you are the right kind of
almost twice as likely to suggest that manager and likely to be a
consolidation is important (56% cf. 31%). successful manager, you
become the advocate for the
The importance of consolidation and expansion for future success challenges and the
– Asia Business Champions and other companies opportunities that a new
market represents”
60% *Quote from C-level executive based in
56% Hong Kong, as part of Telstra Global’s
qualitive research.
50%
45%
40%
31%
30%
22%
20%
10%
0%
Expanding into new countries Consolidating operations in the
countries it is already in
Asia Business Other countries
Champions
Thinking about the next three years how important are the following to the success of the company
you work for currently?
Base: Working in a company working across multiple markets
20 CONNECTING COUNTRIESRegional Variation:
There is a clear difference in the mindset between
Asian and Western companies operating in Asia.
Compared to Asian companies, Western companies
are more focused on regional markets; both driving
performance in existing markets and expanding into
new ones. Western companies are also more likely than
Asian companies to say that both expansion and
consolidation are important.
Industry breakdown
Those in the ICT industry are more
likely than those in other
industries to think that both
expansion and consolidation are
extremely important.
CONNECTING COUNTRIES 21EXPANSION OR
CONSOLIDATION
Expansion, consolidation Asia Business Champions are focused to look for that expansion in places
or both? on many of the same markets as other where other companies are not
companies but are significantly different looking. While focused on India and
China is the primary growth market in a couple of important ways – they are China like all other companies, Asia
for companies who see expansion into more likely to be focussed on markets Business Champions are looking to
new markets as a priority for the next outside of Asia, notably the UK, South new and emerging markets as a
three years. One in two companies (50%) America and North Africa. In addition strategic priority.
that sees expanding into new countries Asia Business Champions are more likely
as extremely important to the success of than other companies to be considering
their company over the next three years multiple markets for expansion –
is looking to China as part of its strategic suggesting a multi-faceted approach.
expansion plan. 38% are focused on Industry breakdown
Singapore while a third (33%) are focused
on Hong Kong and a similar proportion Management lesson #5 Analysis by industry sector shows
(32%) are looking to expand Don’t be constrained by geography. the manufacturing industry to be
in India and Japan. Asia Business Champions have their more focused on China and North
4.2A sights set on the horizon: not only America than other industries and
are they more hungry for regional those in the financial services and
expansion they are also more likely
insurance sector to be more
focused on Singapore and
Markets for future expansion Australia.
– Asia Business Champions and other companies
70%
60%
50%
40%
30%
20%
10%
0%
North Africa
Rest of Africa
Malaysia
Middle East
Russia
Another country in Asia
Another country outside Asia
Prefer not to say
China
India
Japan
UK
Singapore
Australia
Hong Kong
North America
Indonesia
Taiwan
South America
South Korea
Vietnam
Continental Europe
New Zealand
Thailand
Philippines
Asia Business Other companies
Champions
Which market is part of your company’s strategic expansion plan (through the opening of new offices, joint ventures,
other strategic acquisitions or otherwise)?
Base: Working in a company where expansion into new markets is an extremely important priority for the next three years
22 CONNECTING COUNTRIESRegional Variation:
Western businesses tend to have different geographic
priorities than Asian businesses:
• Western companies are more likely than Asian businesses to be
focused on expanding into multiple new markets. They are more
focused on other Western markets such as the UK, North America and
continental Europe as well as emerging markets Russia, South
America and the Middle East. In Asia they tend to focus on the same
markets as Asian companies with the exception of India, which they
tend to focus more on than other Asian companies.
• The only country that Asian companies are more likely than Western
companies to be focused on for expansion is Japan.
Effectiveness of local and global
management teams
Companies working in Asia are being led by effective
management teams locally and globally according to the
professionals working for them.
Seven out of ten employees say that their local leadership team
is effective or very effective at managing its local responsibilities
while a similar number (66%) say that their global leadership
team is effective or very effective at managing their company
across the countries it operates in.
Asia Business Champions have significantly more effective
leadership teams both globally and locally than other companies.
Nine out of ten Asia Business Champions rate their local and
global teams as effective or very effective. Asia Business
Champions are particularly more likely to be seen as very
effective – more than three times so in fact when compared
to other companies. Central to the ability of global and local
leadership teams to collectively function effectively is the
establishment of trust and open lines of communication.
Management lesson #6
Know that leadership matters. Asia Business Champions
have stronger and more effective leadership teams
in place in both their global headquarters and their
local offices.
CONNECTING COUNTRIES 23EXPANSION OR
CONSOLIDATION
Regional Variation:
Those working in Western companies are more likely
to have an effective local leadership team than those
working in Asian companies.
However there is no difference in the effectiveness
of the global leadership teams between Asian and
Western companies.
4.3A
Very effective local and global leadership teams
– Asia Business Champions and other companies
60%
50% 49%
45%
40%
30%
20%
15%
13%
10%
0%
Local leadership team Global leadership team Industry breakdown
Those in the ICT sector are more
Asia Business Other companies likely than those in all other
Champions industries to think that their local
management team is effective.
How effective is your company’s local leadership team at managing their local responsibilities? How effective is
your company’s leadership team at global headquarters at managing their company across the markets in which While those in the financial
they operate? services and insurance sector are
Base: Working in a company working across multiple markets
more likely than those in all other
sectors to think that their global
management team is effective.
It is worth noting that in
professional services companies
the local leadership team is
assessed more favourably than
their global leadership team.
24 CONNECTING COUNTRIESFOCUS ON
CONNECTING
COUNTRIES
LEADERSHIP
IN ASIA
Leading across Asia – successful
5.
leadership across countries.
In this section we look to the senior executives
running the most successful companies in Asia
to better understand the values and the traits
required to successfully lead a company
across Asia. We will compare the views of the
leadership team in Asia Business Champions
with those of other senior executives to profile
the successful traits the leaders exhibit.
The personality traits
of a successful leader
Senior executives suggest that the most
important traits for successful leadership
across multiple countries are honesty
and integrity as well as flexibility and
adaptability. Almost two-thirds of senior
executives and C-suite executives with
experience working in multiple countries
identify both of these as extremely
important.
Executives working within Asia Business
Champion companies are more likely to
identify all of these traits as extremely
important. The greatest area of divergence
between the senior executives in Asia
Business Champions and senior executives
in other companies is the greater
importance they place on resilience,
curiosity and creativity.
Executive lesson #1
Combine resilience, curiosity and
creativity to formulate a winning
leadership style in Asia. The most
significant way in which executives
working at Asia Business Champion
companies differ from their peers in less
successful companies is the importance
they ascribe to resilience, curiosity and
creativity traits which ensure these
leaders bring fresh thinking to their
company’s problems matched by an
inherent interest in learning and the
ability to withstand the difficulties life
at the top can throw at you in Asia.
CONNECTING COUNTRIES 25FOCUS ON
LEADERSHIP
IN ASIA
Regional Variation:
Senior executives in Western companies are more
likely than those in other companies to think that
all leadership traits are important with the exception
of creativity where there is no difference in the
assessment of executives from Asian and
Western companies.
Industry breakdown
Senior executives in ICT
companies are more likely to
value empathy and curiosity than
S5.1A executives in other industries.
Very important personality traits for leadership across Asia And those in professional
– Asia Business Champion executives and executives in other companies
services companies are more
likely to value flexibility and
adaptability. Both those in
Flexibility and adaptability 81% professional services companies
56% and those in ICT are more likely
80% than those in other industries to
Honesty and integrity 56% think cultural sensitivity is
extremely important.
Creativity 73%
45%
Resilience 67%
38%
Cultural sensitivity 60%
43%
Curiosity 57%
33%
Empathy 56%
35%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Asia Business Other executives
Champion executives
In your experience how important are the following traits when it comes to being a successful leader working
across multiple countries?
Base: All respondents
26 CONNECTING COUNTRIESThe experiences of a Executive lesson #2
successful leader Personality traits are more important
than prior experience and knowledge
Leaders were also asked to assess how for successfully leading a company
important prior experience and an ability
across Asia. It is easier to compensate
to speak the local language were. Both
were deemed to be very important by
for poor local language skills or little
fewer than half of all leaders who typically experience in other markets than it
rated these types of experience as less is for a personality not suited to
important than the personality traits they working in other countries.
assessed. 41% of senior executives think
past experience working in other countries
is extremely important for a leader
working across multiple countries while
40% think an ability to speak the local
language is extremely important.
Executives working for Asia Business
Champions are more likely than executives
in less successful companies to think that
both types of experience are important,
with 56% of the leadership teams in Asia
Business Champions believing that past
experience working in other countries is
extremely important and 53% think that
the ability to speak the local language is
extremely important.
CONNECTING COUNTRIES 27FOCUS ON
LEADERSHIP
IN ASIA
Regional Variation:
Leaders in Asian companies were more likely than
those in Western companies to think that the ability
to speak the local language was extremely important.
5.2A
Very important experience for leadership across Asia
– Asia Business Champion executives and executives in other companies
60%
56%
53%
50%
40%
35% 34%
30%
20%
10%
“Even in my current job, the
0% fundamental thing is you
Ability to speak local languages Past experience working overseas
have to bring something to
the table; you have to
Asia Business Other executives respect the locals. It is not a
Champion executives foreigner who is going to
come here and dictate this is
the way you do it.”
*Quote from C-level executive based in
Jakarta, as part of Telstra Global’s qualitive
research.
“My father gave me a very good piece of advice, having had an
international career himself. He said: if you arrive and you give a
signal ‘well I am here for two years and then I’m off,’ people have
immediately written you off, because you know, there goes another
Western man and I’ll just ride this one out – you need to give signals
of commitment, you need to live each job as if you are going to spend
the rest of your life there.”
*Quote from C-level executive based in Hong Kong as part of Telstra Global’s qualitive research.
28 CONNECTING COUNTRIESFOCUS ON
CONNECTING
COUNTRIES
EMPLOYEES
IN ASIA
Working across Asia
6.
– personal experiences
Benefits of working in Those working for Asia Business
Champions are more likely than those
other countries working for less successful companies
Living and working in other countries gives to have enjoyed the benefits of working
those who do it significant advantages in other countries. The top three benefits
– two thirds or more of employees in for those working for Asia Business
Asia who have worked in other countries Champions are that it made them better
agree that they have enjoyed each of the at their current job (61%), that it enhanced
benefits of working in other countries their career prospects (57%) and that
tested. it made them more culturally sensitive
(51%).
Four out of five multimarket professionals
believe that their time working in other
countries enhanced their career prospects
and made them better at their current job.
S6.1A
Benefits of working in other countries
– Asia Business Champion employees and other professionals
Made you better at your current job 61%
33%
Enhanced your career prospects 57%
33%
Made you more culturally sensitive 51%
30%
Was financially rewarding 43%
25%
Was beneficial to your family 34%
22%
0% 10% 20% 30% 40% 50% 60% 70%
Asia Business Other employee
Champion employee
Thinking about your personal experiences, working, living and studying in other countries, do you agree or disagree that this
time was beneficial?
Base: All respondents
CONNECTING COUNTRIES 29FOCUS ON
EMPLOYEES
IN ASIA
Regional Variation:
Those working in Western companies are more likely to
say that they experienced all of the benefits of working
in other countries than those that work in Asian
companies. The only exception to this is that both those
working in Asian companies and those working in
Western companies are equally likely to say that
working in other countries was beneficial to their family.
Working in other countries –
how hard is it and would you
Industry breakdown do it all again?
Employees working in the ICT and media and broadcasting industries Although most workers in Asia who have
are more likely to say that their time in other countries made them more spent time working in other countries
culturally sensitive than those working in other industries. Those working say that this experience was both harder
than they expected it to be (53%) and
in manufacturing and the financial services and insurance industry harder than staying at home (54%) an
are more likely than other workers to say that their time was financially overwhelming majority say that they would
rewarding. do it again (76%).
S6.2A
Working in other countries compared with staying at home Interestingly those working for Asia
– Asia Business Champion employees and other professionals Business Champions are no less likely
to say that working in other countries is
hard – working in other countries for an
Asia Business Champion is no easier (or
Is something you would 57% harder) than working for other companies
want to do again but they were more likely to report it to
30%
be personally rewarding. Asia Business
Champion employees are however more
likely to say that they would want to work in
Is harder than staying at 28% other countries again.
home to work & study
16%
Is harder than you 22%
expected it to be
14%
0% 10% 20% 30% 40% 50% 60% 70%
Asia Business Other employee
Champion employee
Thinking about your personal experiences, working, living and studying in other markets, do you
agree or disagree that this time?
Base: All respondents
30 CONNECTING COUNTRIESRegional Variation:
Those working in Western companies are significantly
more likely to want to work in other countries again
than those working in Asian companies.
Future prospects – where Those working for Asia Business
Champions are more likely to expect to
will you be working in five be working in other markets in five years’
years’ time and who for? time than those working in less successful
A majority of professionals with companies.
multimarket experience do not expect to
be working in their home country in five
years’ time – 52% will be in other countries
(21% in the country they are currently in Industry breakdown
and 31% in another country). Just over
Employees working in professional
a third (36%) will still be working with
their current employer while a similar services and media and
proportion (35%) expects to be working broadcasting are more likely than
for a new employer and 21% plan to be workers in other industries to want
self-employed. to work in other countries again.
Where will you be working in five years?
– Asia Business Champion employees and other professionals
45%
43% 42%
40%
35%
30% 30% 30%
25%
21% 21%
20%
15%
10% 7% 6%
5%
0%
Working in your home country Working in the same overseas Working in a different Can’t say
country you are in now overseas country
Asia Business Other employee
Champion employee
In five years’ time do you expect to be?
Base: All respondents
CONNECTING COUNTRIES 31Regional Variation:
Employees in Western companies are more likely to
expect to be working in other countries in five years’ time
than those working in Asian companies.
Employees in Asian companies are more likely than
those in Western companies to think that they will be
working for themselves in five years’ time.
Anticipated employer in five years Those working for Asia Business
Champions are more likely to expect to
stay working for their current employer
in five years’ time than those in other
60% companies (50% cf. 35%).
50%
50%
Employee lesson #1
Make postings in other countries worth
40% your employees’ while and they will
35% 36% repay the favour in increased loyalty
and lower turnover. Being another
30% market’s employee is hard but by
26% ensuring that there are personal and
21%
20% professional benefits for doing so Asia
Business Champions inspire employee
13% 11% loyalty and can expect lower staff
10% 8% turnover.
0%
With your current employer With a new employer Working for yourself Can’t say
Asia Business Other
Industry breakdown
Champion employee Employee Those working in manufacturing
are more likely than those in all
Will that most likely be?
Base: All respondents expecting to be in the workforce in five years’ time other industries to think that they
will be working in their home
country in five years’ time and
more likely to think that they will
still be working for their current
employer.
32 CONNECTING COUNTRIESYou can also read
