Leadership Development Report - Leading for change

Singapore Highlights

Global Leadership Forecast 2011 Jazmine Boatman, Ph.D., Richard S. Wellins, Ph.D., and Ian Till

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Singapore Highlights

Global Leadership Forecast 2011 Jazmine Boatman, Ph.D., and Richard S. Wellins, Ph.D.

A WELCOME FROM DDI

© Development Dimensions International, Inc., MMXI. Pittsburgh, Pennsylvania. All rights reserved under U.S., International, and Universal Copyright Conventions.

Reproduction in whole or part without prior written permission from DDI is prohibited.

We are pleased to present this report outlining the

current state of leadership and its practices in the

Singapore business community. This report is part

of a larger study, Global Leadership Forecast 2011,

the sixth in DDI’s research series on global

leadership issues and practices. The results

presented here contrast the responses from HR

professionals and leaders in Singapore

organizations with other organizations around the

globe.

We heard one overarching theme from thousands

of leaders while conducting this research: The only

thing constant is change itself. Today’s business

landscape continues to evolve at a blistering pace.

Competition continues to grow, and having

appropriate talent remains the key competitive

advantage for organizations. The big question we

wanted to answer is whether today’s leaders are

prepared for the rapid growth and change that they

will face. Are they keeping up or falling behind?

This report addresses several issues related to

today’s most valuable commodity:

• What is the overall quality of leadership in

Singapore organizations today?

• Do Singapore organizations have a sufficient

supply of capable leaders to meet tomorrow’s

unknown business challenges?

• What can we do to radically change how we

accelerate the development of our leaders?

• Is it time to radically innovate not only our

products and business models but also how we

manage them?

While we are unable to include all the findings, we

are confident that this report will offer you new

insights into leadership practices in Singapore.

Additional information can be found in our global

report. We hope these reports will stimulate your

thinking about how you can institute real change

that will enhance the capabilities of your leaders

and your business.

Ian Till

General Manager, Singapore

ABOUT DDI For more than 40 years, DDI has helped the most

successful companies around the world close the gap

between where their businesses need to go and the

talent required to take them there. Our areas of

expertise span every staffing level, from the executive

suite to individual contributors. We excel in:

• Competency and success profile management.

• Selection and assessment.

• Leadership and workforce development.

• Succession management.

• Performance management.

Since 1990 DDI has worked with some of the most

successful local and multinational organizations in

Singapore on their talent management strategies.

Based in our Leadership Acceleration Centre at Changi

Business Park, the DDI team helps to deliver results

through the profiling, selection, assessment, and

development of talent, particularly leadership talent.

DDI Singapore has consistently been recognized as

one of the top succession planning and management

training companies in Human Resources magazine’s

Top HR Vendors of the Year Awards, as voted by its

readership of more than 12,000 senior HR

professionals.

DDI’s comprehensive, practical approach to talent

management starts by ensuring a close connection

between solutions and business strategies, and ends

when you achieve the results you require. DDI is an

essential partner wherever you are on your journey to

building extraordinary talent.

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3 Singapore Highlights

TABLE OF CONTENTS 4 STUDY PARTICIPANTS

6 STATE OF LEADERSHIP TODAY

9 LEADERSHIP DEVELOPMENT

10 Critical Skills: The Whats

14 Effective Development Methods: The Hows

16 TALENT MANAGEMENT

17 Selection Systems

18 Performance Management Systems

20 Succession Management Systems

23 MANAGEMENT CULTURE

25 CONCLUSION

27 APPENDIX

27 Demographics

28 About the Authors

28 Partners

STUDY PARTICIPANTS DDI’s Global Leadership Forecast 2011 is the largest global study of its kind.

More than 2,600 organizations provided perspectives on their current state of

leadership and their future talent-related needs. Participating in the study were

1,897 HR professionals and 12,423 leaders from 74 countries.

This report is based on survey responses from HR professionals and leaders

based in Singapore. An HR professional completed a survey for each

organization or major business unit. The HR professionals then invited

representative samples of their organization’s leaders to complete leader

surveys. The Singapore respondents are compared in this report to the total

group of HR professionals and leaders in the global sample (see Table 1). To

ensure that no individual organization dominated the results, we selected a

random sample from organizations with more than 100 leaders.

The sample of Singapore organizations was very similar to those in the global

sample; that is, the percentages of small (1,000 employees or less), medium-

sized (1,001 to 10,000 employees), and large organizations (more than 10,000

employees) in the sample were similar (see Figure 1). However, fully

88 percent of the Singapore organizations were multinationals (i.e., owned,

operated, or had affiliate offices in multiple countries), whereas 60 percent of

those in the global sample were multinationals.

4 Singapore Highlights

Singapore Global

HR Professionals 32 1,897

Leaders 321 12,423

TOTAL 353 14,320

TABLE 1 SAMPLE SIZE

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5 Singapore Highlights

Singapore’s organizations also were very similar to those in the global sample

with respect to leadership levels (see Figure 2). Additional information about

participating Singapore organizations and leaders is in the Demographics

section of this report.

28% 10,001

or more 41% 1 to 1,000

31% 1,001 to 10,000

23% 10,001

or more

40% 1 to 1,000

37% 1,001 to 10,000

Singapore Global

FIGURE 1 ORGANIZATION SIZE

28% Senior-Level

Leader

38% First-Level Leader

29% First-Level Leader

28% Mid-Level Leader

Global

6% Executive-Level

Leader

9% Executive-Level

Leader

33% Mid-Level Leader

29% Senior-Level

Leader

Singapore

FIGURE 2 LEADERSHIP LEVELS

STATE OF LEADERSHIP TODAY Most would agree that the past few years have been challenging ones for

businesses worldwide. The economic crisis forced organizations to make tough

decisions and left many suffering in a multitude of ways. However, as the world

economy starts to show signs of improvement, fear is beginning to be replaced

by optimism, and organizations are starting to look toward the future.

While Singapore avoided the brunt of the global financial crisis and is enjoying

strong economic growth, the reality is that leaders globally and in Singapore are

ill-equipped to handle the challenges organizations face in the new business

environment (see Figure 3). Only 38 percent of leaders in the global sample

reported that leadership quality in their organization is very good or excellent; at

39 percent, Singapore leaders felt very much the same way. The latter rating

may reflect the fact that Singapore’s sample consisted mostly of multinational

organizations. On the other hand, HR professionals in Singapore had a more

optimistic view of leadership quality in their organizations compared to others

around the world. Still, they considered only about one of three Singapore

organizations had high-quality leaders.

6 Singapore Highlights

0%

10%

20%

30%

40%

50%

31% 26%

HR

39%38%

LDR

Singapore Global

Pe rc

en t o

f R es

po nd

en ts

W ho

R ep

or t H

ig h

Le ad

er sh

ip Q

ua lit

y at

T he

ir O

rg an

iz at

io n

FIGURE 3 LEADERSHIP QUALITY

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The quality of leadership can make or break an organization. In fact, this

research demonstrated that organizations with the highest quality leaders were

13 times more likely to outperform their competition in key bottom-line metrics

such as financial performance, quality of products and services, employee

engagement, and customer satisfaction (see Figure 4). Specifically, when

leaders reported their organization’s current leadership quality as poor, only

6 percent were in organizations that outperformed their competition. Compare

that with those who rated their organization’s leadership quality as excellent.

There, more than three-quarters (78 percent) of leaders are in organizations that

are outperforming their competition in key bottom-line metrics.

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0%

20%

40%

60%

80%

100%

6%

Poor

9%

Fair

27%

Good

53%

Very Good

78%

Excellent

Pe rc

en t o

f L ea

de rs

R at

in g

Th ei

r O rg

an iz

at io

n’ s

O ve

ra ll

Pe rfo

rm an

ce B

et te

r T ha

n Co

m pe

tit or

’s

Leadership Quality

FIGURE 4 LEADERSHIP QUALITY RELATED TO ORGANIZATIONAL PERFORMANCE

Leadership quality doesn’t just affect the bottom line; it also affects the retention

of the organization’s employees as well as its leaders’ engagement and passion.

Organizations with higher quality leadership retained more employees than their

competition, and they also had more engaged and passionate leaders (see the

global report for more details). Given the importance of leadership for ensuring

business success, this question needs to be answered: What can

organizations do to improve leadership quality?

The Global Leadership Forecast 2011 uncovered three key drivers of leadership

quality (see Figure 5):

1. Leadership development

2. Talent management systems and practices

3. Management culture

To achieve high-quality leadership, organizations need effective leadership

development and talent management systems in the areas of selection,

performance management, and succession management. Also, for leaders to

fulfill their potential to drive the business, management needs to ensure that the

organization’s culture gives people the freedom and opportunities they need to

be effective. These three key drivers provide the structure for the remainder of

this report.

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Leadership Development

Talent Systems & Practices

Management Culture

High- Quality

Leadership

Enhanced People

Outcomes (e.g., retention, engagement)

Enhanced Business Impact

(e.g., financial performance,

customer satisfaction)

FIGURE 5 DRIVING BUSINESS THROUGH LEADERSHIP PRACTICES

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LEADERSHIP DEVELOPMENT According to the leaders who participated in the global study, leadership

development programs were the primary determinant of leadership quality in

organizations. Based on the global sample, leaders in organizations with more

effective leadership development programs were eight times more likely to rate

the quality of their leaders as very good or excellent. What, then, is happening

now with organizations’ leadership development efforts?

The percentage of Singapore organizations that increased their leadership

development budgets in 2011 (38 percent) was comparable to organizations

worldwide (40 percent). However, significantly more Singapore organizations

plan to ramp up spending in the coming year (74 percent) than do their global

counterparts (see Figure 6). This is not surprising because Singapore

organizations were less affected by the financial crisis and are adding new

leaders at a record pace. (This may be due to the fact that many large global

multinationals have established regional or international headquarters in this

cosmopolitan global business city.) Also, organizations in Singapore appear to

be prioritizing development by increasing their spending more than other

regions of the world. This probably reflects long-standing, strong government

support for workforce training plus related initiatives and programs that promote

training and development.

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0% 20% 40% 60% 80% 100%

Singapore

Global

Increase by more than 10%

3% 4% 38% 26% 29%

26% 35% 39%

Stay the same

Increase by less than 10%

Decrease by more than 10%

Decrease by less than 10%

Ex pe

ct ed

2 01

2

Singapore

Global 13% 6% 42% 17% 23%

3%6% 52% 19% 19%

Ac tu

al 2

01 1

FIGURE 6 2011 AND 2012 LEADERSHIP DEVELOPMENT BUDGET CHANGES

LEADERSHIP DEVELOPMENT

Talent Systems & Practices

Management Culture

High- Quality

Leadership

Enhanced People

Outcomes (e.g., retention, engagement)

Enhanced Business Impact

(e.g., financial performance,

customer satisfaction)

With millions spent on leadership development initiatives each year, it is

unfortunate that only about one-third of HR professionals and leaders in

Singapore rated their organization’s leadership development efforts as highly

effective (see Figure 7). Without effective leadership development, Singapore

organizations may find their leaders unprepared to manage effectively in a

constantly changing business environment.

CRITICAL SKILLS: THE WHATS To make the most of leadership development efforts, organizations must answer

two questions: (1) Are we investing in developing the right skills, and (2) Are we

developing the right skills for today and for tomorrow? To begin to answer those

questions, leaders were asked to identify the most critical leadership skills

needed in the past three years and those needed for the next three years.

Those in Singapore identified the following three skills as the most critical for

leadership in the past:

1. Driving and managing change

2. Coaching and developing others

3. Executing organizational strategy

Those priorities reflect a focus on business and organizational strategy. When

asked about the top three skills needed for the future, Singapore leaders shifted

their focus (see Figure 8). The skills they identified as the most critical for

success in the next three years focus less on organizational strategy and more

10 Singapore Highlights

0%

20%

40%

60%

80%

100%

Singapore

25%

44%

31%

Global

25%

40%

35%

Singapore

17%

47%

36%

Global

19%

44%

37%

Very low or low

High or very high

Moderate

HR LDR

FIGURE 7 LEADERSHIP DEVELOPMENT EFFECTIVENESS

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on growing organizational talent. This aligns with Singapore’s strategy of

positioning itself as a regional talent hub that offers value to global as well as

Asian organizations, which is reflected in the Singapore government’s creation

of the Human Capital Leadership Institute. The top three skills required for the

future from Singapore leaders were:

1. Driving and managing change

2. Identifying and developing future talent

3. Coaching and developing others

The two most critical skills (driving and managing change and identifying and

developing future talent) also were ranked first and second by leaders around

the world. These two skills are geared toward organizational growth rather than

preservation. Singapore leaders also felt that skills in coaching and developing

others would continue to be needed in the future; globally, fostering creativity

and innovation was the third most critical leadership skill. According to a Boston

Consulting Group report (2010), 72 percent of executives around the world list

innovation as a top priority. Leaders in Singapore ranked fostering creativity

and innovation in their business as fourth on their list of skills needed in the

future. This aligns well with Singapore’s strategy to propel its creative economy,

establish a reputation as a regional creative hub, and double the percentage of

GDP contributions by the creative cluster (i.e., arts and culture and design and

media).

11 Singapore Highlights

But this question remains to be answered: Are leaders ready to take on the

challenges of the future? Leaders were asked to rate their own effectiveness in

the leadership skills. Unfortunately, leaders in Singapore rated their

effectiveness as lower than their global counterparts in every critical leadership

skill (see Figure 9). Singapore leaders rated themselves as least effective in the

area of fostering creativity and innovation, identified by both the global and local

samples as one of the most critical leadership skills for the future. Also,

compared to the other leadership skills, leaders in Singapore rated themselves

relatively less effective in the three areas they identified as most critical for future

success (managing change, developing future talent, and coaching others).

12 Singapore Highlights

0% 10% 20% 30% 40% 50% 60%

Singapore

36% 5. Executing organizational strategy

32%

32% 6. Building customer satisfaction and loyalty

26%

43% 4. Coaching and developing others

32%

38% 3. Fostering creativity and innovation

35%

46% 2. Identifying and developing future talent

36%

49% 1. Driving and managing change

48%

34% 7. Improving employee engagement

24%

34% 8. Making difficult decisions

23%

Global Percent of Leaders Who Report the Skill as Most Critical

(order based on the global findings)

FIGURE 8 CRITICAL SKILLS NEEDED IN THE NEXT THREE YEARS

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This last finding indicates that the largest skill gaps for Singapore’s leaders are

in those areas that are most critical to their future success. This aligns with data

from hundreds of Singapore-based leaders assessed in our assessment centers

and through our 360-degree feedback tool, the results of which will be detailed

in a soon-to-be-released research paper on the readiness of leaders in

Singapore. To improve leadership quality and effectiveness, development

efforts should focus on these skills—where the pain from failure will be felt the

most in the coming years.

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0% 10% 20% 30% 40% 50% 60% 70% 80%

Singapore

47% 5. Executing organizational strategy

60%

53% 6. Building customer satisfaction and loyalty

65%

44% 4. Coaching and developing others

57%

43% 3. Fostering creativity and innovation

50%

44% 2. Identifying and developing future talent

57%

46% 1. Driving and managing change

57%

51% 7. Improving employee engagement

56%

46% 8. Making difficult decisions

55%

Global Percent of Leaders Who Are Effective

FIGURE 9 LEADER EFFECTIVENESS IN SKILLS

EFFECTIVE DEVELOPMENT METHODS: THE HOWS HR professionals reported how frequently each method was used in their

organization (see Figure 10), and the leaders reported on the effectiveness of

each method (see Figure 11). Singapore HR professionals, like those around

the world, reported using formal workshops, special projects, and manager

coaching most often to develop their leaders. This finding is gratifying, as

Singapore has often been perceived as having a “send them to a training course

to fix it” mind-set. While formal training courses are still the preferred approach,

the finding indicates that Singapore organizations are becoming increasingly

aware that training alone is not a silver bullet. However, one caveat needs to be

noted: As previously stated, the majority of Singapore organizations were

multinationals; thus, the prominence of special assignments might be related to

these organizations’ frequent use of Singapore as a place for short-term

development assignments for their employees.

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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Singapore

13% Virtual classroom

27%

22% Coaching with external coaches

27%

31% Coaching with internal coaches (other than your manager)

39%

23% Web-based learning (online, self-study courses)

43%

56% Movement to a different position to develop targeted skills

47%

71% Special projects or assignments

68%

66% Coaching from managers

68%

91% Formal workshops, courses, seminars

81%

Global Percent of HR Professionals Reporting Method is Used Moderately or Extensively

FIGURE 10 FREQUENCY OF USE OF DEVELOPMENT METHODS

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Leaders around the world tended to find the methods most used (formal

workshops, special projects, and manager coaching) as the most effective for

development (Figure 11), suggesting that the methods that organizations put

their efforts behind pay off. Additionally, leaders in Singapore indicated that

internal and external coaches are effective development methods; however, less

than one out of every three leaders use these two methods (Figure 10). It’s

unclear whether this is a result of inadequate time, a lack of suitable training to

feel that they would be effective, or the costs associated with adopting such

approaches. When creating a comprehensive development program for

leaders, organizations should remember that leaders need multiple ways to

develop their skills and that a blended approach, with a strategic mix of skills

and methods, will yield the best results. See the global report for information on

creating more effective leadership development programs.

15 Singapore Highlights

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Singapore

32% Virtual classroom

28%

47% Coaching with external coaches

37%

44%

Coaching with internal coaches (other than your manager)

44%

53%

Web-based learning (online, self-study courses)

45%

60% Movement to a different position to develop targeted skills

47%

64%

Special projects or assignments

63%

70%

Coaching from managers

66%

85% Formal workshops, courses, seminars

73%

Global Percent of Leaders Reporting Method is Effective

FIGURE 11 EFFECTIVENESS OF DEVELOPMENT METHODS

TALENT MANAGEMENT Development alone cannot ensure that organizations have a ready supply of

capable leaders; it’s just one of the critical components of an end-to-end talent

management process. DDI defines talent management as a mission-critical

process that ensures organizations have the quantity and quality of people in

place to meet current and future business priorities. The process covers all key

aspects of an employee’s life cycle, starting when the organization selects the

right leaders then continuing as the person’s performance is aligned with an

effective performance management system. It’s fueled with effective

development and leadership succession efforts. Improving the quality of

leadership involves doing all of these things well.

HR professionals around the world were asked to rate the importance of their

talent systems in terms of their impact on organizational success in the next

three years. Although the majority said that development was important, more

HR professionals cited other systems (i.e., selection, performance management,

and succession management) as having a more critical impact on organizational

performance. On the whole, these systems, which constitute talent

management, appeared to be clear drivers of organizational success.

Unfortunately, HR professionals worldwide rated the current effectiveness of

most of these systems as dismal (see Figure 12).

16 Singapore Highlights

0% 10% 20% 30% 40% 50% 60% 70%

Singapore

19% Leadership succession

22%

38% Performance management

42%

38% Development programs and learning opportunities for senior leaders

33%

41% Development programs and learning opportunities for mid-level leaders

30%

34% Development programs and learning opportunities for frontline leaders

31%

21% Leadership selection

31%

Global Percent of HR Professionals Reporting System is Effective

FIGURE 12 EFFECTIVENESS OF TALENT MANAGEMENT SYSTEMS

Leadership Development

TALENT SYSTEMS & PRACTICES

Management Culture

High- Quality

Leadership

Enhanced People

Outcomes (e.g., retention, engagement)

Enhanced Business Impact

(e.g., financial performance,

customer satisfaction)

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Organizations around the world reported that performance management

systems were the most effective of all the talent systems. While HR

professionals in Singapore also rated performance management systems as

effective, they rated development programs for mid-level and senior leaders

even more effective than did their global counterparts. Leadership selection and

succession were found to be the least effective talent systems in Singapore as

well as globally, with less than one in four HR professionals rating these

systems as effective. The following section discusses each of the talent

systems in more detail, with the exception of leadership development, which

was covered in the previous section.

SELECTION SYSTEMS Selection is arguably the most critical step in talent management because there

are some things that no amount of development or performance management

will fix. In fact, in our study, effective selection was the talent management

system with the strongest relationship to leaders’ ratings of organizational

performance. However, according to Singapore-based organizations surveyed,

only 25 percent are using proven, validated tools for making critical leadership

selection and promotion decisions (see Figure 13).

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0% 20% 40% 60% 80%

Singapore

25%

Validated tests and simulations are used for making leadership selection and promotion decisions.

32%

Global Percent Agree or Strongly Agree

FIGURE 13 PERCENT OF ORGANIZATIONS USING VALIDATED TOOLS FOR LEADERSHIP SELECTION DECISIONS

Because so few Singapore organizations have used validated tools, their HR

professionals inevitably reported that up to 36 percent of leadership hires are

failures (see Figure 14). Given the higher failure rate of leaders hired externally

compared to those hired internally as well as their significant costs, grow-your-

own tactics would be a key talent strategy to leverage for the future. The data

indicates that this would be a more effective strategy. Regardless of internal or

external hiring, using selection tools that have been proven to work is important

for gathering objective data to make the right hiring decisions. Otherwise,

organizations are leaving these critical decisions to chance.

PERFORMANCE MANAGEMENT SYSTEMS It’s critical that organizations effectively manage leader performance because

accomplishing organizational objectives is so closely linked to and dependent

on leaders achieving their objectives. In our study, leaders were asked to rate

specific aspects of their performance management system (see Figure 15). In

Singapore 72 percent of leaders reported that their individual performance

expectations were tied to corporate goals and strategies. Also, 68 percent

reported that their performance management systems accounted for objectives

(the whats) as well as the behaviors (the hows) that help achieve those

objectives. Both of these components are critical to effective performance

management because leaders who achieve their objectives without regard for

others are not effective.

18 Singapore Highlights

64%Singapore 36%

63%Global 37%

71%Singapore 29%

72%Global 28%

Success Failure

Ex te

rn al

Hi re

s In

te rn

al Hi

re s

FIGURE 14 LEADERSHIP HIRING SUCCESSES AND FAILURES

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19 Singapore Highlights

Organizations around the world were not as successful when ensuring that

performance review discussions provided leaders with clear direction for

enhancing their performance. This indicates that most are using performance

management more as a way to monitor leaders’ performance instead of an

opportunity to improve their future performance. Just over half the leaders in

Singapore (59 percent) felt that their performance review discussions provided

them with clear direction, a finding similar to that around the world.

Performance management should not be a once-a-year event. It should be a

process that monitors, inspires, and improves performance over time.

Managers of leaders need to drive this process by ensuring that performance

discussions provide their leaders with clear accountabilities, timely feedback

about their performance, and guidance for helping them capitalize on their

strengths and take advantage of developmental opportunities.

0% 20% 40% 60% 80% 100%

Singapore

72%

My performance expectations are tied to business unit and/or corporate goals/strategies.

81%

68%

My performance appraisal is balanced between whats (objectives) and hows (behaviors used to achieve objectives).

69%

59%

My performance review discussions provide me with clear direction about how to enhance my performance.

56%

Global Percent of Leaders Who Agree or Strongly Agree

FIGURE 15 ASPECTS OF PERFORMANCE MANAGEMENT SYSTEMS

SUCCESSION MANAGEMENT SYSTEMS Succession management tended to be the least effective talent system in

Singapore organizations as well as those around the world. Succession

management is future oriented; it is about ensuring that organizations have the

right quantity and quality of leaders—at all levels—to meet unpredictable future

business needs. Since the onset of the global economic crisis, organizations

have refocused on the role succession management plays in talent management.

Most organizations suffered greatly from a lack of focus on the future and

succession planning, and bench strength was weaker than they had anticipated.

Singapore organizations were no exception, with only 22 percent of HR

professionals rating their bench strength as strong or very strong (see Figure 16).

With an aging senior-level workforce in Singapore, grooming future successors

will be an important talent strategy.

This study focused on three of the many practices required for successful

succession management: identifying and growing high potentials and moving

leaders up the pipeline. In Singapore, 53 percent of organizations have a formal

process for early identification of high-potential talent as well as processes for

early growth of high-potential talent, a significantly higher percentage than

organizations around the world (see Figure 17). With one out of every three

external hires in Singapore failing, identifying and nurturing internal talent would

be well worth the focus.

20 Singapore Highlights

Weak or Very Weak Mixed Strong or Very Strong 25% 53% 22%

Weak or Very Weak Mixed Strong or Very Strong 25% 57% 18%

Singapore

Global

FIGURE 16 BENCH STRENGTH TO MEET FUTURE NEEDS

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Another important aspect of succession management is leader promotion. With

70 percent of Singapore leaders in this research making a leadership transition in

the past five years, it’s unfortunate that only one-third of organizations have

programs to ensure that employees make smooth leadership transitions. This

likely explains why the majority of leaders still report their leadership transitions

as being difficult.

The lack of formality leaves much to chance in terms of filling the leadership

pipeline and building bench strength. When asked to explain the low ratings of

their organization’s bench strength, HR professionals repeatedly pointed to a

lack of focus, strategy, and formality of succession planning as the reasons for

not having enough prepared leaders. Although it can be all too easy to forego

planning for the future while the economy is growing, Singapore organizations

need to start prioritizing succession management now if they expect to

effectively manage their future.

21 Singapore Highlights

0% 20% 40% 60% 80% 100%

Singapore

53%

We have a formal process for early identification of high-potential talent.

44%

53%

We have a formal process for early growth of high-potential talent.

37%

32%

We have effective programs to ensure smooth leadership transitions at all levels.

25%

Global Percent of HR Professionals Who Agree or Strongly Agree

FIGURE 17 ASPECTS OF LEADERSHIP SUCCESSION MANAGEMENT SYSTEMS

22 Singapore Highlights

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Singapore

40% We have open, vigorous, and uncensored discussions around strategy and key business decisions

39%

46% Organizational structure is fluid, flexible, and nimble

46%

60% Our management processes (e.g., strategic planning) are a source of major competitive advantage

56%

52% Employees/Leaders have the opportunity to innovate/create

57%

53% We balance our focus on growth with a commitment to sustainability and socially significant goals

59%

52% Power and influence are held by those who value innovation and change

62%

62% Status and influence are based on ability to lead, contributions, and performance

63%

63% Our company has shared values and aspirations that are meaningful to our employees

68%

Global Percent of Leaders Who Agree with Statement

FIGURE 18 EFFECTIVE MANAGEMENT CULTURE

Ineffective Management Culture Effective Management Culture

STRUCTURE Organizational structure is siloed, rigid, and hierarchical. Organizational structure is fluid, flexible, and nimble.

BUREAUCRACY Our management processes (e.g., budgeting, Our management processes (e.g., budgeting, strategic planning, risk management, business review) strategic planning, risk management, business review) are highly bureaucratic and often a nuisance. are a source of major competitive advantage.

POWER Power and influence are held by those who value the Power and influence are held by those who value innovation status quo. and change.

INFLUENCE Status and influence are based on a person’s formal Status and influence are based on ability to lead, position and accumulated power. contributions, and performance.

DECISIONS Strategic and key business decisions are made mostly We have open, vigorous, and uncensored discussions by those in positions of power, with very few opportunities around strategy and key business decisions. for open discussion.

INNOVATION Senior leaders are the primary visionaries and creators. Employees/Leaders have the opportunity to innovate/create.

VALUES Our company has a set of values and aspirations, but they Our company has shared values and aspirations that are hold little meaning to most employees. meaningful to our employees.

GOALS We almost exclusively focus on top/bottom-line growth. We balance our focus on growth with a commitment to sustainability and socially significant goals.

TABLE 2 MANAGEMENT CULTURE STATEMENTS BY FACTOR

G LO

BA L

LE AD

ER SH

IP F

O RE

CA ST

2 01

1

MANAGEMENT CULTURE To this point, we have established leadership development and strategic talent

management as major drivers for building leadership capability in organizations.

But talent doesn’t work in a vacuum. An organization’s culture plays a large role

in creating an environment that allows all leaders and employees to live up to

their fullest potential. Even the most capable people cannot thrive in a culture

that does not allow them to make decisions, influence others, and do their jobs

effectively.

We partnered with influential business thinker and professor Gary Hamel, author

of The Future of Management, and his Management Lab to identify the key

factors that either facilitate or hinder how the work of management is carried out.

The factors that impede leaders from being effective include, but are not limited

to, the bureaucracy of processes in organizations, leaders’ level of influence, and

the extent to which values are shared throughout the organization. These factors

affect an organization’s culture and can serve to either allow leaders to thrive or

to stifle them.

Leaders around the world were asked to rate their organization’s management

culture by choosing one of two statements. For example, they were asked to

choose which statement best describes their organization: “Organizational

structure is fluid, flexible, and nimble” or “Organizational structure is siloed, rigid,

and hierarchical” (see Table 2 for a complete list of statements and factors).

Only the more effective of the two statements is presented in Figure 18.

Leaders in Singapore report that their organization stands behind shared values

and aspirations that are meaningful across the company and that management

processes are a major competitive advantage compared to other organizations

around the globe. However, similar to other organizations, a major pain point for

Singapore organizations was opening up decision making to have more open

discussions about key strategic decisions (only 40 percent of Singapore leaders

described their organization as doing this). This probably reflects the fact that

decision making is often pushed to senior levels in organizations, and while

there is a strong execution focus, there is also a strong risk-averse nature

amongst leaders in Singapore organizations.

23 Singapore Highlights

Leadership Development

Talent Systems & Practices

MANAGEMENT CULTURE

High- Quality

Leadership

Enhanced People

Outcomes (e.g., retention, engagement)

Enhanced Business Impact

(e.g., financial performance,

customer satisfaction)

Organizations were split into three groups based on their leaders’ ratings of

management culture. Leader scores for management culture statements were

aggregated by organization, and organizations were labeled as low (leaders

choosing the more effective statement 0–2 times), medium (3–5 times), or high

(6–8 times) in terms of management culture effectiveness. Figure 19

demonstrates that there is still a lot of work to do in this area: Less than one-

third of organizations in Singapore have a highly effective management culture.

Generally, Singapore organizations did not fare much worse than organizations

around the world in terms of management culture, possibly because most

organizations responding in the Singapore sample were multinationals, which

have a global understanding of common business practices. According to the

global sample, organizations with a highly effective management culture were

three times more likely to outperform their competition in terms of bottom-line

metrics such as financial performance, productivity, quality of products or

services, and customer satisfaction, proving that instituting more effective

management practices has a profound impact on organizational success.

24 Singapore Highlights

0%

20%

40%

60%

80%

100%

Singapore

34%

36%

30%

Global

27%

36%

37%

Low Effectiveness (Score of 0–2)

High Effectiveness (Score of 6–8)

Medium Effectiveness (Score of 3–5)

FIGURE 19 CURRENT STATE OF MANAGEMENT CULTURE

G LO

BA L

LE AD

ER SH

IP F

O RE

CA ST

2 01

1

CONCLUSION Times have changed. Business processes are evolving at a rapid pace, and

given its importance to organizational success, leadership cannot afford to be

left behind. Unfortunately, the state of leadership today calls for drastic

measures (see Table 3). The majority of leaders in Singapore as well as the

rest of the world don’t have the skills they need to be effective in this new

landscape. Talent strategies have been neglected, with only about one-third of

the leaders in Singapore reporting that their organization’s leadership

development program was effective. Singapore organizations need to improve

the effectiveness of most of their development methods, but a special focus on

increasing the use of mentors and coaches other than one’s manager was

evident because these development methods were rated as highly effective but

infrequently utilized. Furthermore, organizations need to focus leadership

development efforts in the skills that will be critical for the future: driving and

managing change, identifying and developing future talent, coaching and

developing others, and fostering innovation.

This lack of effective talent strategies has not only affected current leadership

quality, but also has implications for the future, with just 22 percent of HR

professionals in Singapore rating their bench strength highly. Talent systems,

which support leaders throughout their careers, will play a critical role in improving

leadership quality, yet they can be improved too. Singapore organizations seem

to be focusing on leadership development (the effectiveness of development was

higher than their global counterparts), especially for mid-level leaders. However,

the vast majority of organizations in Singapore have ineffective selection and

succession management systems. Because many Singapore organizations are

experiencing growth, effectively managing talent throughout their employees’ life

cycles needs to be prioritized to ensure future viability.

25 Singapore Highlights

Effectiveness of Current Quality of Bench Strength Development (LDR) Leadership (LDR) (HR)

Global 37% 38% 18%

Singapore 36% 39% 22%

Note: Figures reflect percent of leaders (LDR) or HR professionals rating the factor highly.

TABLE 3 STATE OF LEADERSHIP TODAY

How organizations manage people also should not be overlooked. With only

one in three Singapore organizations having a highly effective culture, talent

management efforts alone cannot be expected to bridge the current gap in

leadership quality. An organization’s management culture has a tremendous

bearing on whether leadership capabilities can be leveraged to their fullest

potential. Singapore organizations, like those elsewhere, should focus on

opening up decision making and creating a set of shared and meaningful values

for their employees.

Considering the state of leadership and business today in Singapore,

organizations need to reevaluate which talent and management strategies they

should take with them into the future. Global Leadership Forecast 2011

demonstrates that focusing on leadership development, talent management,

and management culture will have a marked impact on leadership quality. This

research shows a direct relationship between the quality of leadership and

people and business outcomes. Transforming talent management and

management culture will have major payoffs. If leaders will be executing and

creating organizational priorities for years to come, shouldn’t their organizations

ensure that they are prepared to do that?

26 Singapore Highlights

AP PE

ND IX

27 Singapore Highlights

APPENDIX DEMOGRAPHICS

0% 1–10

0% 11–50

6% 51–100

6% 101–200

16% 201–500

13% 501–1,000

22% 1,001–5,000

9% 5,001–10,000

13% 10,001–20,000

9% 20,001–50,000

6% 50,001 or more

NUMBER OF EMPLOYEES

13% National

88% Multinational (own, operate, or have affiliate offices outside own country)

PRESENCE IN GLOBAL MARKET

38% First-level (supervisor, team leader, foreman, etc.)

28% Mid-level (leader of first-level leaders)

28% Senior-level (leader/manager of mid-level leaders)

6% Executive-level (leader in a policy-making position)

MANAGEMENT LEVEL

4% Less than 6 months

5% 6–11 months

14% 1–2 years

32% 3–5 years

25% 6–10 years

10% 11–15 years

10% More than 15 years

ORGANIZATIONAL TENURE

9% 25 and under

39% 26–35

35% 36–45

14% 46–55

3% 56–60

1% Over 60

AGE

69% Male

31% Female

GENDER

NOTE: Numbers may not add up to 100 percent because

of rounding.

32 Number in sample

ORGANIZATIONS

321 Number in sample

LEADERS

28 Singapore Highlights

ABOUT THE AUTHORS Jazmine Boatman, Ph.D., manages DDI’s Center for

Applied Behavioral Research (CABER), DDI’s hub for

research to support evidence-based management.

Jazmine directs research that measures the impact of

selection and development programs on organizational

performance and uncovers new knowledge and

information about global workplace practices and issues.

With special expertise in measurement and evaluation,

Jazmine has consulted with organizations in a wide

variety of industries.

Richard S. Wellins, Ph.D., is senior vice president at

DDI. Rich is responsible for leading DDI’s global research

programs, launching new solutions, and executing DDI’s

brand and marketing strategies. During his tenure at DDI,

Rich has authored five books on leadership and teams

and written for more than 20 publications on global talent

management. Rich has helped organizations around the

world develop their senior leaders. He also serves as a

judge for CNBC’s ABLA, interviewing dozens of Asia’s top

CEOs each year.

Ian Till, general manager for DDI’s operations in

Singapore, oversees the business development team,

manages the Singapore branch’s operations, and

promotes the DDI brand in Singapore. He manages the

portfolio of strategic accounts, examines clients’ needs,

and recommends the appropriate talent management

solutions. Since 1996, Ian has gained extensive

experience throughout Southeast Asia in leadership

assessment and development, performance

management, employee engagement, training and

development, and organizational restructuring.

PARTNERS This study was a true global effort, and the authors would

like to acknowledge the invaluable contributions of the

following people:

Management Innovation Research Advisors

Gary Hamel and the Management

Innovation Lab

DDI Project Team

Project Management: Jennifer Pesci-Kelly, Aviel

Selkovits

Participant Recruitment: Malu Arredondo, Amit Arte,

Noemi Barbosa de Luna, Monica Chen, Jesie Dieu, Nikki

Dy-Liacco, Tania Fernandes-Klerx, Ramon Fontaine,

Priscilla Giglio, Lisa Han, Kumiko Hashimoto, Julie

Hogan, Marta Janiak, Arati Karve, Emily Kershaw,

Patrycja Korczynska, Cathy Lavoie, Ellen Lee, Maggie

Liu, Dorothy Lo, Victor L. Magdaraog, Yvonne McGowan,

Simon Mitchell, Marisa Molnar, Stephanie Nam, See Yi

Ngiam, Panmanee Ong-art, Joyce Qi, Julie Rautenbach,

Myra Rehman, Katrina Jane L. Roxas, Retianna C.

Shakina, Arunima Shrivastava, Neil Suchman, Lily Sun,

Charna van der Merwe, Julie Vedrinne, Christien Winter

Research: Michael Kemp, Stephanie Neal

Editorial: Mike Crawmer, Shawn Garry

Graphic Design: Susan Ryan, Janet Wiard

Web: Mark Hamilton

REFERENCES Andrew, J.P., Manget, J., Michael, D.C., Taylor, A., &

Zablit, H. (2010, April). Innovation 2010: A return to

prominence—and the emergence of a new world order.

Boston: The Boston Consulting Group.

To start your leadership revolution

and learn more about DDI’s

Global Leadership Forecast 2011,

please visit

www.ddiworld.com/glf2011

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