Leadership is about the future, and so the idea of preparation and staying abreast of new developments underscores successful leadership, says Steven J. DeKrey in >‘Learning from Leaders in Asia: The lessons of experience’ . He adds that spotting trends and ‘sense making’ are critical, and require leaders to reflect on the past and believe in ‘the value of lifelong learning: learning from others, learning from books, learning from business schools, learning from mistakes – learning in all its forms.’
Leadership is very situation specific, notes DeKrey. Leaders need to understand the places and the situations in which they operate, and they have to keep looking out for trends and seeking inputs so as to stay ahead in their markets. For instance, innovation, which currently ranks high on CEOs’ agenda, started to become a feature of several Asian powerhouse firms after the 1998 Asian financial crisis, he observes.
“Companies such as Samsung, Lenovo, Taobao, Asus, and Li & Fung expanded from Asia into other markets by differentiating themselves and paying close attention to the markets and cultures they were operating in. Their innovations were adapted to their markets, not the other way around.”
Protecting innovation
Innovation is fine, but how do you protect your technology and business secrets, especially if you decide to manufacture in China? Check how Firestone Tire & Rubber tackled this issue. It chose to sell slightly dated radial tire technology, the book informs. “The technology was not the most current in the US or Japan, but it was appropriate for China, southeast Asia, and Africa. The concept was to sell the same technology several times in China to each of the major tire manufacturers.”
To prevent buyers from sharing the technology with SOEs (state-owned enterprises) and their distributors throughout China, Firestone chose to deal with the biggest tire manufacturers in Shanghai and Guangzhou, assuming that they would be big enough to resist state pressure to disclose company secrets, reads the narrative.
“In addition, the contract gave Firestone the right to terminate buyback if it determined that technology had been leaked to the state or another tire manufacturer. Firestone sold the same technology twice within 12 months, earning $60 million, and managed to protect the confidentiality of the technology.”
Succession planning
In a chapter on the changing landscape of corporate governance, the author finds an increasing trend globally for family firms to look at succession as a process based on true meritocracy, with the top job open to both professional managers and family members.
Sounding a note of caution, the chapter wraps up by forecasting that if family businesses in Asia can deal with succession issues in a professional and rational way as non-family firms do, more family firms can survive the third generation and ultimately grow into a new breed of trans-national company in the global economy.
Suggested study for top managers.
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