The Hard Case For Soft Business Skills

The Hard Case For Soft Business Skills.

(This was published in The Business Times, February 19th, 2004 )

With globalised competition, it is leaders' emotional intelligence , not technical expertise or superior intellect, that matters most for success.

In organizations around the world, a historic shift is taking place in the nature of leadership. The traditional command-and-control style of leadership where decision-making resides mainly with a selected few at the top is making way for a more decentralized and democratic way of working. The power to decide and to take actions is now devolving to people in the middle and periphery of the organization. Leaders are also discovering that soft skills have become crucially important for effective performance.

Entering the 21 st Century, globalization, technology, increased customer influence and intense competition have led to an economy increasingly based on knowledge. In this new competitive landscape, knowledge and being able to leverage it, has become more important for organizations than assets, technology, financial resources and market position. The new word "mentofacturing "aptly describes a production situation which involves the mind more than the hands.

Consider how c ountries around the world have all been impacted by the rise of China as an economic powerhouse. Some business or political leaders who once thought that China could only compete on the basis of its brawn, i.e. cheap and plentiful supply of labour, have been surprised by the pace at which Chinese managers and industries have moved up the value-chain. And just as China is driving down cost in manufacturing, India is staking its place in this new economic order by focusing on services. India's impact is not just in the much vaunted software development and back-office services but also in IT consulting, chip design, financial analysis, industrial engineering and drug research.

In response, advanced economies are moving higher up the value chain and deeper into knowledge-based , high-tech industries. Examples: biotechnology, health services, education, product development, advanced manufacturing, education, etc. Here in Singapore, while restructuring our economy, we are also seeing some major multinationals such as HP, Philips and Motorola, shifting some very high-value products to be manufactured here. China and the lower cost countries receive the bulk of the lower-end products. This, however, is best viewed as transitional.

The challenges of this new economic reality can be reduced simply to two questions:

What is our comparative value-added per worker vis-a-vis other countries'?
When will the lower cost countries be able to meet or exceed our value contribution?

It is clear that in this highly competitive global arena, keeping even a few months ahead of the competition , in terms of innovation and knowledge, is critical to survival. Business and political leaders have now realized that it is brainpower that is the organization's most important assets. As HP's Carly Fiorina puts it, " These assets cannot be controlled or owned in the way that traditional physical or capital assets can be. You have to manage these assets differently. And you have to inspire people to want to work here because these assets can walk."

What does it take as a leader to be effective in such a changed environment? Studies done on high-performing leaders and organizations by research institutions in the US and Europe have shown that it is emotional intelligence, not technical expertise or superior intellect, that matters most for success. Here in the Asia-Pacific, through numerous leadership development assignments undertaken with Asian executives in leading multinationals, a similar conclusion is borne out by anecdotal and empirical evidence. High-performing leaders simply are able to relate to people more effectively. They possess a wide repertoire of "soft skills" which includes self-awareness and the abilities to manage one's emotions and impulses, motivate others, show empathy and stay connected. They treat people with respect and value them as individuals. They also take people development seriously

How will greater soft skills help one as leader? There are three key drivers:

The cross-functional team: The well-designed team is like an information-generating and expertise-sharing machine. By interacting with each other, they can draw upon a wide number of perspectives and solutions on a given issue. They cut across functions and physical boundaries and are a collective of peers rather than a group of bosses and subordinates. The natural question is , " How do we influence our peers?" Certainly not through issuing instructions and relying on positional authority. As each member brings something different to the table, the key to success as a team is to be able to relate to each other to evoke the best that each can offer.

The electronic erosion of authority: With the Internet, workers have direct access to what is happening throughout the organization and across the world. Hierarchy is breaking down as people are able to communicate with each other directly to exchange information and share ideas. Bosses find that they may no longer have the latest and most crucial bit of information. In such an environment, people will not accept any order without first seeking clarification. A more useful approach is to seek inputs before introducing any new initiatives.

Changing workforce and expectations: The world of work and the workplace has been drastically changed. Life-long employment is a thing of the past. The workers of today are increasingly Gen-Xers and Gen-Yers. They are better educated and have different values and expectations. They also want a say in what they do and how they perform their roles. As one CEO puts it, " Trying to force my views on them doesn't help one bit. They're smart and I need them. My best bet if I want their commitment is to try open and two-way communication."

In 2002, the Straits Times reported that 2 surveys by The Gallup Organization and International Survey Research ( ISR) respectively have found that Singapore workers lacked commitment. 12 percent of Singapore's workforce felt "actively disengaged " from their jobs. A subsequent poll revealed that workers felt that Singapore bosses in the pursuit of the bottom line have neglected the personal touch and are uncommunicative, unappreciative and bureaucratic.

As Singapore shifts further into the knowledge economy, having a hardworking, disciplined and technically skilled workforce is not sufficient. The neighbouring countries are fast catching up on these attributes. In this new era, we need people to move from doing repetitive work to knowing how to deal with surprises and exceptions, from depending on instructions and approval to being spontaneous and creative, from risk avoidance to risk taking, from focusing on policies and guidelines to building collaboration with people.

Leaders who can touch the hearts and minds of workers will define the new paradigm for success. When we bring to the workplace our own best selves , and appeal to the best in others, we as leaders can create not just more humane but more effective organizations.

( Contributed by BH Tan. The writer is President , Coaching Associates Pte Ltd, an Asia-Pacific based management practice that works with multi-nationals and public institutions to achieve better business results through their people)

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	The Hard Case For Soft Business Skills. (This was published in The Business Times, February 19th, 2004 ) *With globalised competition, it is leaders' emotional intelligence , not technical expertise or superior intellect, that matters most for success.* In organizations around the world, a historic shift is taking place in the nature of leadership. The traditional command-and-control style of leadership where decision-making resides mainly with a selected few at the top is making way for a more decentralized and democratic way of working. The power to decide and to take actions is now devolving to people in the middle and periphery of the organization. Leaders are also discovering that soft skills have become crucially important for effective performance. Entering the 21 st Century, globalization, technology, increased customer influence and intense competition have led to an economy increasingly based on knowledge. In this new competitive landscape, knowledge and being able to leverage it, has become more important for organizations than assets, technology, financial resources and market position. The new word "mentofacturing "aptly describes a production situation which involves the mind more than the hands. Consider how c ountries around the world have all been impacted by the rise of China as an economic powerhouse. Some business or political leaders who once thought that China could only compete on the basis of its brawn, i.e. cheap and plentiful supply of labour, have been surprised by the pace at which Chinese managers and industries have moved up the value-chain. And just as China is driving down cost in manufacturing, India is staking its place in this new economic order by focusing on services. India's impact is not just in the much vaunted software development and back-office services but also in IT consulting, chip design, financial analysis, industrial engineering and drug research. In response, advanced economies are moving higher up the value chain and deeper into knowledge-based , high-tech industries. Examples: biotechnology, health services, education, product development, advanced manufacturing, education, etc. Here in Singapore, while restructuring our economy, we are also seeing some major multinationals such as HP, Philips and Motorola, shifting some very high-value products to be manufactured here. China and the lower cost countries receive the bulk of the lower-end products. This, however, is best viewed as transitional. The challenges of this new economic reality can be reduced simply to two questions: What is our comparative value-added per worker vis-a-vis other countries'? When will the lower cost countries be able to meet or exceed our value contribution? It is clear that in this highly competitive global arena, keeping even a few months ahead of the competition , in terms of innovation and knowledge, is critical to survival. Business and political leaders have now realized that it is brainpower that is the organization's most important assets. As HP's Carly Fiorina puts it, " These assets cannot be controlled or owned in the way that traditional physical or capital assets can be. You have to manage these assets differently. And you have to inspire people to want to work here because these assets can walk." What does it take as a leader to be effective in such a changed environment? Studies done on high-performing leaders and organizations by research institutions in the US and Europe have shown that it is emotional intelligence, not technical expertise or superior intellect, that matters most for success. Here in the Asia-Pacific, through numerous leadership development assignments undertaken with Asian executives in leading multinationals, a similar conclusion is borne out by anecdotal and empirical evidence. High-performing leaders simply are able to relate to people more effectively. They possess a wide repertoire of "soft skills" which includes self-awareness and the abilities to manage one's emotions and impulses, motivate others, show empathy and stay connected. They treat people with respect and value them as individuals. They also take people development seriously How will greater soft skills help one as leader? There are three key drivers: The cross-functional team: The well-designed team is like an information-generating and expertise-sharing machine. By interacting with each other, they can draw upon a wide number of perspectives and solutions on a given issue. They cut across functions and physical boundaries and are a collective of peers rather than a group of bosses and subordinates. The natural question is , " How do we influence our peers?" Certainly not through issuing instructions and relying on positional authority. As each member brings something different to the table, the key to success as a team is to be able to relate to each other to evoke the best that each can offer. The electronic erosion of authority: With the Internet, workers have direct access to what is happening throughout the organization and across the world. Hierarchy is breaking down as people are able to communicate with each other directly to exchange information and share ideas. Bosses find that they may no longer have the latest and most crucial bit of information. In such an environment, people will not accept any order without first seeking clarification. A more useful approach is to seek inputs before introducing any new initiatives. Changing workforce and expectations: The world of work and the workplace has been drastically changed. Life-long employment is a thing of the past. The workers of today are increasingly Gen-Xers and Gen-Yers. They are better educated and have different values and expectations. They also want a say in what they do and how they perform their roles. As one CEO puts it, " Trying to force my views on them doesn't help one bit. They're smart and I need them. My best bet if I want their commitment is to try open and two-way communication." In 2002, the Straits Times reported that 2 surveys by The Gallup Organization and International Survey Research ( ISR) respectively have found that Singapore workers lacked commitment. 12 percent of Singapore's workforce felt "actively disengaged " from their jobs. A subsequent poll revealed that workers felt that Singapore bosses in the pursuit of the bottom line have neglected the personal touch and are uncommunicative, unappreciative and bureaucratic. As Singapore shifts further into the knowledge economy, having a hardworking, disciplined and technically skilled workforce is not sufficient. The neighbouring countries are fast catching up on these attributes. In this new era, we need people to move from doing repetitive work to knowing how to deal with surprises and exceptions, from depending on instructions and approval to being spontaneous and creative, from risk avoidance to risk taking, from focusing on policies and guidelines to building collaboration with people. Leaders who can touch the hearts and minds of workers will define the new paradigm for success. When we bring to the workplace our own best selves , and appeal to the best in others, we as leaders can create not just more humane but more effective organizations. ( Contributed by BH Tan. The writer is President , Coaching Associates Pte Ltd, an Asia-Pacific based management practice that works with multi-nationals and public institutions to achieve better business results through their people) ( View other news )
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