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Business / Economy

Staying on top in changing times

By ANDREW MOODY (China Daily) Updated: 2015-05-18 09:57

Chiang at Guanghua said the one country that seems to have been caught out by this trend is Japan.

"Whereas US and European companies have tended to send their top people, this has not been the case with Japan. Apart from the New York or London offices the best people within Japanese companies tend to stay at headquarters," he said.

"In fact, while someone coming to China might get a higher salary and live in a luxurious apartment, it will be generally assumed by everyone to be a demotion or that there have been some issues back home. I think this is one of the main reasons why Japanese companies have underperformed in the China market."

As well as having to cope with disruptive change, one of the biggest challenges ahead for Chinese CEOs is having to cope with a slowing economy.

Many have been used to GDP growth of near double digits but the "new normal" in China is a slowing and maturing economy.

A recent survey of 100 Chinese CEOs by international management consultants Accenture Strategy found that more than 50 percent were focused on efficiency.

"The big challenge for CEOs will be to manage costs down while at the same growth is slowing. They are also going to have to be more strategic in identifying new growth areas so there will have to be more focus on innovation and also develop new products and services," said Luis Cenega, the consultancy's managing director in China.

Luedi at AT Kearmey said that many Chinese CEOs will be very good at achieving efficiency because many senior executives come from an engineering background.

"The challenge for them will be about re-engineering their organizations, driving efficiency in the operations. There will be a lot of technical elements to this and I think it will play to the strengths of the CEOs who come from engineering backgrounds," he said.

At Taylor & Francis, Clarke is still involved in the recruitment of a new CEO.

"We are looking for someone who is able to support our team in China. We want someone who is a team player and which can bring the leadership skills out from members of the team. We are also looking for someone who is fearless in making decisions," he added.

Yu Hang contributed to this story.

FACTS

THE SIX CRITICAL CAPABILITIES OF A MODERN CEO

? Ripple intelligence: Spotting the ripples that might disrupt your business

? The s of change: Coping with the speed, scope and significance of change

? The power of doubt: Being able to make the right call when the outcome is uncertain

? Adapting authentically: Navigating the relentless pressure for change while maintaining core mission

? Being able to choose between right and right: Sometimes alternative actions are both right

? Maintaining own personal development and renewal

SOURCE: THE CEO REPORT BY HEIDRICK&STRUGGLES/SAID BUSINESS SCHOOL

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