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LEADERSHIP:                         THE BIG INTERVIEW:   BEYOND BUSINESS:   TECHNOLOGY:
INDONESIA. THE NEXT                 KOH BOON HWEE’S      LESSONS FROM       THE BEST BUSINESS
GREAT EXPORTER OF                   REFLECTIONS ON       MILITARY           APPS FOR LEADERS
TALENT? 42                          LEADERSHIP 70        LEADERSHIP 78      ON THE MOVE 86




REDEFINING BUSINESS LEADERSHIP




SURVIVING THE
VUCA WORLD
The building blocks of success


W W W. H C L I .O R G
                        ISSUE 05/2013
     ISSN 2251-387-6
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                                                  MEMBERS
 EDITORIAL                                        Loh Khum Yean,                                                    PUBLISHED BY
                                                  Permanent Secretary,
                                                  Ministry of Manpower

                                                  Professor Arnoud De Meyer,
                                                  President, Singapore Management
                                                  University
                                                                                                                    Chief Executive Officer
                                                  Professor Rajendra Srivastava,                                    Rosemarie Wallace
                                                  Provost and Deputy President (Academic
 EDITOR-IN-CHIEF                                                                                                    Managing Director
                                                  Affairs), Singapore Management University                         Simon Cholmeley
 Mano Ramakrishnan, Ph.D.
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 ISSUE EDITOR                                     CEO, Mitsui & Co. (Asia Pacific)                                   Joseph Jones
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04 H Q A S I A I S S U E 5 / 2013
hat kinds of leaders do you need for your

                                                     W         current and future business? Good listen-
                                                               ers? Strong facilitators and collaborators?
                                                               Leaders with people skills and who can
                                                   manage multiple stakeholders? Recent research by
                                                   Dr Hora Tjitra of China’s Zhejiang University and his
                                                   colleagues Dr Hana Panggabean and Dr Juliana Murni-
                                                   ati from Atma Jaya University, Indonesia, suggest that
                                                   these are the common strengths of Indonesian leaders.
                                                     In a country that covers 17,000 islands and 300
                                                   different ethnic groups, Indonesians have long
                                                   had to manage diversity. But, for Indonesia to over-
                                                   come its current leadership shortage – let alone
                                                   become an exporter of leadership talent – much
                                                   more needs to be done.


                                                   M A N Y G E N E R A L I S T S, F EW S P E C I A L I S T S
                                                   Many Indonesians aspire for a generalist career rather
                                                   than that of a specialist one. For example, there are
                                                   more students who choose to be trained in general
                                                   business management fields or the humanities than




INDONESIA
                                                   in a specific science and engineering discipline. Sofjan
                                                   Wanandi, Chairman of the Indonesian Employers
                                                   Association, blames the country’s education system
                                                   for this problem. Indonesia, he argues, encourages
                                                   students to take too many disparate subjects, instead




THE NEXT
                                                   of promoting a focus on specific fields like engineering
                                                   and physical sciences.
                                                     There is perhaps an understandable reason for
                                                   this preference. In the past, companies in Indonesia
                                                   tended not to be big. Hence, these companies needed




GREAT EXPORTER
                                                   employees who could juggle many responsibilities
                                                   rather than immersing in a specific field. As such, ca-
                                                   reer opportunities in Indonesia have tended to attract
                                                   and reward generalists.
                                                     Because of this, leaders were expected to pick up




OF LEADERSHIP
                                                   broad skills of the trade quickly. However, those who
                                                   underwent a fast track career development programme
                                                   found themselves not having enough time to build
                                                   deep technical competence.
                                                     Today matters are changing. There is a growing




TALENT?
                                                   demand amongst employers for specialists with strong
                                                   technical skills. At the Global Indonesian Network
                                                   conference – organised by Atma Jaya University and
                                                   Alumni of Catholic Students in Europe – Hadi Kasim,
                                                   CEO of Triputra Group, complained of the difficulty of
                                                   finding workers with deep technical expertise.
Everyone from McKinsey to the World Bank is          Without strong technical skills in engineering and
predicting Indonesia’s economy to boom while the   science, Indonesians often lack the credibility to
talent shortage exacerbates. Mano Ramakrishnan     progress in their careers. An exception to the rule is
spoke with Hora Tjitra to understand how the       former CEO of IBM Indonesia, Yaya Winarno Junardy.
nation’s current shortfall of leadership talent    Despite not having a university degree he rose to the
need not be permanent – Indonesia can be a great   top because of his strong technical knowledge in com-
exporter of leadership talent. And, here’s why.    puters and software programming.

42 H Q A S I A I S S U E 5 / 2013
LEADERSHIP


 eed for your                                           C O M M U N I CAT I N G
? Good listen-                                          W I T H O U T I M PA CT
 ollaborators?                                          A common misconception is that
nd who can                                              Indonesians do not possess strong
research by                    YOUNG                    English language skills. The busi-
ersity and his          INDONESIANS                     ness leaders whom Tjitra and his
 Juliana Murni-      ARE TRAINED TO                     colleagues spoke to shared that
 a, suggest that      COMMUNICATE                       Indonesians’ English proficiency
 nesian leaders.      IN AN INDIRECT                    is comparable to their colleagues
s and 300           AND CONTEXTUAL                      from other parts of Asia, like
ve long                  WAY. THIS IS                   China. It is the way Indonesians
esia to over-                                           craft their messages that puts
 et alone
                          A RESULT OF                   them at a disadvantage.
  – much
                         STRIVING TO                       As a result of striving to maintain
                    MAINTAIN SOCIAL                     social harmony in their diverse cul-
                         HARMONY IN                     ture, young Indonesians are trained
                       THEIR DIVERSE                    to communicate in an indirect
ECIALISTS                    CULTURE                    and contextual way. In present-
 t career rather                                        ing their strategy and plans, they
 e, there are                                           have not been trained to structure
  in general                                            their arguments based on data and
 anities than                                           analysis. As such, they do not stand
 cipline. Sofjan                                        out when compared to their other
Employers                                               Asian counterparts.
 tion system                                               It is even harder to notice com-
 ncourages                                              petent Indonesian workers when
 jects, instead                                         they do not actively promote their
ke engineering                                          strengths. Modesty and humil-
                                                        ity are important virtues for the
eason for                                               Indonesian people. The common
 n Indonesia                                            Indonesian saying: “It is the mature
anies needed                                            rice plant that bends its head low”
 nsibilities                                            speaks of mature individuals being
. As such, ca-                                          more humble. Take Adi Prabowo,
nded to attract                                         an Associate Director of Johnson &
                                                        Johnson Asia Pacific, as an example.
 to pick up                                             Prabowo came from an upper-class
er, those who                                           family and studied in an elite school.
ent programme                                           Even as a young child, he would
me to build                                             sometimes choose to walk to school,
                                                        rather than to be chauffeured in his
a growing                                               father’s luxury car. What is regarded
 sts with strong                                        as maturity and humility amongst
 n Network                                              Indonesians is unfortunately often
niversity and                                           perceived as weakness in the West.
– Hadi Kasim,
 he difficulty of
 ertise.                                                LACKING AMBITION?
ineering and                                            Another challenge is that the
 ibility to                                             majority of Indonesian talent seem
 o the rule is                                          content with their current achieve-
narno Junardy.                                          ments and do not aspire to leave
he rose to the                                          their comfort zone.
                                        IMAGE: CORBIS




wledge in com-                                            One of their guiding principles is
                                                        the Javanese concept of ‘nrima’. >>

                                                                      I S S U E 5 / 2013 H Q A S I A 43
In simple terms, it means if you want to live your life        in Indonesia. No longer should organisations choose
to the fullest, you need not achieve more – but accept         task-oriented leaders for these assignments. Instead,
what you have now. Often misunderstood as an apa-              they should prioritise expatriate managers with the
thetic willingness to swallow everything, nrima actu-          ability to develop others.
ally promotes a positive attitude towards life, especial-
ly in the face of adversity. Yet sometimes, this attitude
can hold Indonesians back from achieving top roles.            G R A D UA L P R U N I N G FO R
   However, a strong motivator for Indonesians is collec-      G R A D UA L B L O O M I N G
tive ambition. Many of the nation’s business leaders are       Many organisations believe in throwing their high
driven by the ambitions of their organisations, rather         potentials into the metaphorical ‘deep end of the pool’.
than their own careers. And, these leaders are more than       They assume that these high potentials will eventually
willing to make sacrifices for the greater collective – be      swim and build confidence. Doing the same to Indone-
it their organisation, town or country.                        sian talent may work less well, as Indonesians tend to
                                                               appreciate gradual exposure and development through
                                                               stages. We suggest the following course of exposure:
R E C O M M E N DAT I O N S
Overcoming the above challenges is important for Indo-         Stage 1: Station a foreign leader in Indonesia
nesian talent to realise their potential, and for businesses   This kind of opportunity allows Indonesians to experi-
to benefit from this new type of leadership. After conver-      ence the complexity of cross-cultural management in
sations with many successful Indonesian leaders, Tjitra        the comfort of their home country. Facing intercultural
and his colleagues discovered a few approaches that            difficulties at this stage is manageable, as they still have
organisations can take in order to develop local talent.       the social support of their family and friends. It is also
                                                               recommended that Indonesian talent embark on this
                                                               stage as early as possible in their career. The experi-
E X PAT R I AT E M A N A G E R S H AV E A R O L E              ence and mentorship from their foreign bosses will
Many progressive companies in Indonesia are keen               prove instrumental in developing their communication
to reduce their dependence on expatriate managers.             skills and working styles.
While this is generally helpful in empowering local
leaders, companies should not go too far. Successful           Stage 2: Take part in international assignments
Indonesian leaders consistently attributed their devel-        This takes Indonesians beyond the comfort of their
opment to foreign mentors.                                     home to international regions. It could be either a short
  Some critical roles that expatriate managers play in         assignment of up to six months, or managing projects
developing Indonesian talent are:                              and virtual teams that span multiple countries. Such an
                                                               approach allows Indonesians to gradually improve their
                                                               cross-border management and leadership skills.
thinking, data-driven decision-making and impactful
communication skills;                                          Stage 3: Become global leaders
                                                               This is the stage where Indonesians take up the chal-
‘stretch assignments’ to develop them;                         lenge of leading in another country for an extended
                                                               period of time (at least three years). Once successful,
in an international environment;                               they will become role models who will inspire the next
                                                               wave of Indonesian leaders. At this stage, it is impor-
visible in organisations’ global networks.                     tant to define clear development competencies and
                                                               goals, which the assignees will need to achieve at the
   Recognising the important roles that foreign                end of their assignment.
expatriates play calls for a change in the way multi-
national organisations structure their international             In 2009, the World Bank predicted that Indonesia
assignments. Often, such assignments are designed              would add two million new workers into the economy
as a means of personal development for expatriates,            every year over the next 10 years. Imagine if the nation
or for the setting up of new functions in local offices.       could build just 1% of these workers into true global
While these goals are still important and necessary, it        leaders – that would be a good start in not just alleviating
is equally critical to endorse clear objectives, such as       leadership shortfalls in Indonesia, but elsewhere in Asia.
developing local talent for global roles.
   Simultaneously, this understanding should also
change the selection criteria for foreign expatriates          Mano Ramakrishnan is the Head of Research at HCLI.

44 H Q A S I A I S S U E 5 / 2013

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Indonesia the Next Great Exporter of Leadership Talent?, HQ Asia Issue 5/ 2013

  • 1. LEADERSHIP: THE BIG INTERVIEW: BEYOND BUSINESS: TECHNOLOGY: INDONESIA. THE NEXT KOH BOON HWEE’S LESSONS FROM THE BEST BUSINESS GREAT EXPORTER OF REFLECTIONS ON MILITARY APPS FOR LEADERS TALENT? 42 LEADERSHIP 70 LEADERSHIP 78 ON THE MOVE 86 REDEFINING BUSINESS LEADERSHIP SURVIVING THE VUCA WORLD The building blocks of success W W W. H C L I .O R G ISSUE 05/2013 ISSN 2251-387-6 Singapore SG $18 Malaysia RM 35 Australia AUD $18 Hong Kong HK $99 India INR 250 9 772251 387001 Japan JPY ¥1,200
  • 2. HQ ASIA TEAM MEMBERS EDITORIAL Loh Khum Yean, PUBLISHED BY Permanent Secretary, Ministry of Manpower Professor Arnoud De Meyer, President, Singapore Management University Chief Executive Officer Professor Rajendra Srivastava, Rosemarie Wallace Provost and Deputy President (Academic EDITOR-IN-CHIEF Managing Director Affairs), Singapore Management University Simon Cholmeley Mano Ramakrishnan, Ph.D. Takashi Yamauchi, Managing Editor ISSUE EDITOR CEO, Mitsui & Co. (Asia Pacific) Joseph Jones Rebecca Siow Joseph Flanagan, Director, Content Solutions SVP, Worldwide Operations and Supply Howard James ASSISTANT ISSUE EDITOR Chain, Applied Materials Saradevi D/O Gopal Prabhakaran Sub Editor & Corporate Writer Harish Manwani, Aabha Gandhi CONTRIBUTORS Chief Operating Officer, Unilever Fanny Cheung, Pilar García-Lombardía, Design Director Yvan Legris, Howard James, Goh Swee Vinod Kumar, Richard MacLean Chen, Ivy Nguyen, Yoshihiro Yoshida and CEO & MD, Yvonne Kageyama, Aabha Gandhi, Hai Senior Designer Tata Communications Group Cherlin Chan Ling, Walter Kuijpers, Howie Lau, Tomas Koch, Shintaro Mano, Jean-François Manzoni, Vijayan Munusamy, Koh Boon Ray Ferguson, Production & Distribution Manager Hwee, Vinod Kumar, Colonel Charles Regional CEO, Singapore and South East Pearlyn Kwan Stafford, In-Sue Oh and Crystal M Harold, Asia, Standard Chartered Bank Hora Tjitra, Perez Loh Illustrations Liew Mun Leong, Kal, Project Twins, Paul Borchers Director, CapitaLand Limited PUBLISHER Phan Ching Chong Piyush Gupta, CEO, DBS Group Holdings & CONTACTS CREATIVE SERVICES MANAGER DBS Bank Gabriela Karch For potential editorial contribution, please Alvin Tan, contact Ivy Nguyen at ivynguyen@hcli.org Assistant Managing Director, Singapore Tel: +65 6872 9831 MARKETING MANAGER Economic Development Board Catherine McKenzie For distribution and subscription enquiries, please contact Catherine Mckenzie at cmckenzie@hcli.org INTERNATIONAL ACADEMIC PANEL Tel: +65 6872 9841 Claudio Fernández-Aráoz, For advertising opportunities, please Senior Adviser, Global Executive contact Simon Cholmeley at HQ Asia is owned and operated by the Committee Member, Egon Zehnder simon@novusasia.com Human Capital Leadership Institute, Singapore. Tel: +65 6221 9069 International ADDRESS For general information regarding HCLI, 20 Harbour Drive, Professor Lynda Gratton, please email us at contactus@hcli.org #07-03, PSA Vista, Singapore 117612 Professor of Management Practice, London Tel: +65 6872 9820 Tel: +65 6872 9820 Business School; Founder, Hot Spots Movement Professor Dave Ulrich, BOARD OF DIRECTORS Partner and Co-founder of RBL Group, Professor of Business, Ross School of Business, CHAIRMAN University of Michigan Sunny George Verghese, Group MD & CEO, Olam International Limited DEPUTY CHAIRMAN Leo Yip, The views and opinions expressed or implied in HQ Asia do not necessarily reflect those of the Human Capital Leadership Chairman, Singapore Economic Institute (HCLI) or Novus Media Solutions, its directors or editorial staff. All information is correct at the time of going to print. © 2013 Human Capital Leadership Institute. Development Board S I N G A P O R E M I C A (P ) 162/03/2012. M A L A Y S I A K D N P P S 1810/10/2013(025523) 04 H Q A S I A I S S U E 5 / 2013
  • 3. hat kinds of leaders do you need for your W current and future business? Good listen- ers? Strong facilitators and collaborators? Leaders with people skills and who can manage multiple stakeholders? Recent research by Dr Hora Tjitra of China’s Zhejiang University and his colleagues Dr Hana Panggabean and Dr Juliana Murni- ati from Atma Jaya University, Indonesia, suggest that these are the common strengths of Indonesian leaders. In a country that covers 17,000 islands and 300 different ethnic groups, Indonesians have long had to manage diversity. But, for Indonesia to over- come its current leadership shortage – let alone become an exporter of leadership talent – much more needs to be done. M A N Y G E N E R A L I S T S, F EW S P E C I A L I S T S Many Indonesians aspire for a generalist career rather than that of a specialist one. For example, there are more students who choose to be trained in general business management fields or the humanities than INDONESIA in a specific science and engineering discipline. Sofjan Wanandi, Chairman of the Indonesian Employers Association, blames the country’s education system for this problem. Indonesia, he argues, encourages students to take too many disparate subjects, instead THE NEXT of promoting a focus on specific fields like engineering and physical sciences. There is perhaps an understandable reason for this preference. In the past, companies in Indonesia tended not to be big. Hence, these companies needed GREAT EXPORTER employees who could juggle many responsibilities rather than immersing in a specific field. As such, ca- reer opportunities in Indonesia have tended to attract and reward generalists. Because of this, leaders were expected to pick up OF LEADERSHIP broad skills of the trade quickly. However, those who underwent a fast track career development programme found themselves not having enough time to build deep technical competence. Today matters are changing. There is a growing TALENT? demand amongst employers for specialists with strong technical skills. At the Global Indonesian Network conference – organised by Atma Jaya University and Alumni of Catholic Students in Europe – Hadi Kasim, CEO of Triputra Group, complained of the difficulty of finding workers with deep technical expertise. Everyone from McKinsey to the World Bank is Without strong technical skills in engineering and predicting Indonesia’s economy to boom while the science, Indonesians often lack the credibility to talent shortage exacerbates. Mano Ramakrishnan progress in their careers. An exception to the rule is spoke with Hora Tjitra to understand how the former CEO of IBM Indonesia, Yaya Winarno Junardy. nation’s current shortfall of leadership talent Despite not having a university degree he rose to the need not be permanent – Indonesia can be a great top because of his strong technical knowledge in com- exporter of leadership talent. And, here’s why. puters and software programming. 42 H Q A S I A I S S U E 5 / 2013
  • 4. LEADERSHIP eed for your C O M M U N I CAT I N G ? Good listen- W I T H O U T I M PA CT ollaborators? A common misconception is that nd who can Indonesians do not possess strong research by YOUNG English language skills. The busi- ersity and his INDONESIANS ness leaders whom Tjitra and his Juliana Murni- ARE TRAINED TO colleagues spoke to shared that a, suggest that COMMUNICATE Indonesians’ English proficiency nesian leaders. IN AN INDIRECT is comparable to their colleagues s and 300 AND CONTEXTUAL from other parts of Asia, like ve long WAY. THIS IS China. It is the way Indonesians esia to over- craft their messages that puts et alone A RESULT OF them at a disadvantage. – much STRIVING TO As a result of striving to maintain MAINTAIN SOCIAL social harmony in their diverse cul- HARMONY IN ture, young Indonesians are trained THEIR DIVERSE to communicate in an indirect ECIALISTS CULTURE and contextual way. In present- t career rather ing their strategy and plans, they e, there are have not been trained to structure in general their arguments based on data and anities than analysis. As such, they do not stand cipline. Sofjan out when compared to their other Employers Asian counterparts. tion system It is even harder to notice com- ncourages petent Indonesian workers when jects, instead they do not actively promote their ke engineering strengths. Modesty and humil- ity are important virtues for the eason for Indonesian people. The common n Indonesia Indonesian saying: “It is the mature anies needed rice plant that bends its head low” nsibilities speaks of mature individuals being . As such, ca- more humble. Take Adi Prabowo, nded to attract an Associate Director of Johnson & Johnson Asia Pacific, as an example. to pick up Prabowo came from an upper-class er, those who family and studied in an elite school. ent programme Even as a young child, he would me to build sometimes choose to walk to school, rather than to be chauffeured in his a growing father’s luxury car. What is regarded sts with strong as maturity and humility amongst n Network Indonesians is unfortunately often niversity and perceived as weakness in the West. – Hadi Kasim, he difficulty of ertise. LACKING AMBITION? ineering and Another challenge is that the ibility to majority of Indonesian talent seem o the rule is content with their current achieve- narno Junardy. ments and do not aspire to leave he rose to the their comfort zone. IMAGE: CORBIS wledge in com- One of their guiding principles is the Javanese concept of ‘nrima’. >> I S S U E 5 / 2013 H Q A S I A 43
  • 5. In simple terms, it means if you want to live your life in Indonesia. No longer should organisations choose to the fullest, you need not achieve more – but accept task-oriented leaders for these assignments. Instead, what you have now. Often misunderstood as an apa- they should prioritise expatriate managers with the thetic willingness to swallow everything, nrima actu- ability to develop others. ally promotes a positive attitude towards life, especial- ly in the face of adversity. Yet sometimes, this attitude can hold Indonesians back from achieving top roles. G R A D UA L P R U N I N G FO R However, a strong motivator for Indonesians is collec- G R A D UA L B L O O M I N G tive ambition. Many of the nation’s business leaders are Many organisations believe in throwing their high driven by the ambitions of their organisations, rather potentials into the metaphorical ‘deep end of the pool’. than their own careers. And, these leaders are more than They assume that these high potentials will eventually willing to make sacrifices for the greater collective – be swim and build confidence. Doing the same to Indone- it their organisation, town or country. sian talent may work less well, as Indonesians tend to appreciate gradual exposure and development through stages. We suggest the following course of exposure: R E C O M M E N DAT I O N S Overcoming the above challenges is important for Indo- Stage 1: Station a foreign leader in Indonesia nesian talent to realise their potential, and for businesses This kind of opportunity allows Indonesians to experi- to benefit from this new type of leadership. After conver- ence the complexity of cross-cultural management in sations with many successful Indonesian leaders, Tjitra the comfort of their home country. Facing intercultural and his colleagues discovered a few approaches that difficulties at this stage is manageable, as they still have organisations can take in order to develop local talent. the social support of their family and friends. It is also recommended that Indonesian talent embark on this stage as early as possible in their career. The experi- E X PAT R I AT E M A N A G E R S H AV E A R O L E ence and mentorship from their foreign bosses will Many progressive companies in Indonesia are keen prove instrumental in developing their communication to reduce their dependence on expatriate managers. skills and working styles. While this is generally helpful in empowering local leaders, companies should not go too far. Successful Stage 2: Take part in international assignments Indonesian leaders consistently attributed their devel- This takes Indonesians beyond the comfort of their opment to foreign mentors. home to international regions. It could be either a short Some critical roles that expatriate managers play in assignment of up to six months, or managing projects developing Indonesian talent are: and virtual teams that span multiple countries. Such an approach allows Indonesians to gradually improve their cross-border management and leadership skills. thinking, data-driven decision-making and impactful communication skills; Stage 3: Become global leaders This is the stage where Indonesians take up the chal- ‘stretch assignments’ to develop them; lenge of leading in another country for an extended period of time (at least three years). Once successful, in an international environment; they will become role models who will inspire the next wave of Indonesian leaders. At this stage, it is impor- visible in organisations’ global networks. tant to define clear development competencies and goals, which the assignees will need to achieve at the Recognising the important roles that foreign end of their assignment. expatriates play calls for a change in the way multi- national organisations structure their international In 2009, the World Bank predicted that Indonesia assignments. Often, such assignments are designed would add two million new workers into the economy as a means of personal development for expatriates, every year over the next 10 years. Imagine if the nation or for the setting up of new functions in local offices. could build just 1% of these workers into true global While these goals are still important and necessary, it leaders – that would be a good start in not just alleviating is equally critical to endorse clear objectives, such as leadership shortfalls in Indonesia, but elsewhere in Asia. developing local talent for global roles. Simultaneously, this understanding should also change the selection criteria for foreign expatriates Mano Ramakrishnan is the Head of Research at HCLI. 44 H Q A S I A I S S U E 5 / 2013