AS Malaysia recovers from the economic crisis, we must                                                                                                
recognise that the recovery is not by chance but achieved                                                                                             
through forceful leadership and disciplined economic                                                                                                  
management.                                                                                                                                           
                                                                                                                                                      
Malaysia applied its own prescription which saw the imposition                                                                                        
of capital controls, drawing flak from many international                                                                                             
commentators.                                                                                                                                         
                                                                                                                                                      
But the strong leadership of the Prime Minister and the                                                                                               
unwavering support of Bank Negara and related institutions saw                                                                                        
the country through the difficult period to achieve a GDP                                                                                             
growth of 4.1% for the last quarter.                                                                                                                  
                                                                                                                                                      
As the new millennium will be characterised by growing                                                                                                
uncertainty and tumultuous change, the need for powerful                                                                                              
leadership becomes even more necessary.                                                                                                               
                                                                                                                                                      
The country's one-year experience with capital controls and                                                                                           
the critical' role of leadership are a case study of what we                                                                                          
can expect in the future.                                                                                                                             
                                                                                                                                                      
But what exactly is leadership?                                                                                                                       
                                                                                                                                                      
The meaning of the word leadership has evolved substantially                                                                                          
over the years. Webster's defines leadership as "action of one                                                                                   
who leads or guides. "                                                                                                                           
                                                                                                                                                      
Warren Bennis, after studying 90 of the most effective and                                                                                            
successful leaders in the United States, found that they had                                                                                          
four common competencies: a compelling vision or sense of                                                                                             
purpose, ability to communicate that vision in clear terms                                                                                            
that their followers could readily identify with demonstrating                                                                                        
consistency and focus in the pursuit of their vision, knowing                                                                                         
their own strengths and capitalising on them.                                                                                                         
                                                                                                                                                      
So then, what is the leadership role of the CEO in this modern                                                                                        
business world and why is leadership so important to an                                                                                               
organisation's success?                                                                                                                               
                                                                                                                                                      
Leaders look to the future. The CEO of an organisation has the                                                                                        
responsibility of driving the organisation through uncharted                                                                                          
terrain to achieve desired ends.                                                                                                                      
                                                                                                                                                      
In pursuing the vision of the organisation, he has to exploit                                                                                         
opportunities, assess risks and galvanise all employees to                                                                                            
move singularly towards achieving the vision.                                                                                                         
                                                                                                                                                      
In the absence of a strong leader, there is little assurance                                                                                          
of fulfilling the vision as corporate efforts and resources                                                                                           
are consumed in pursuing different agendas.                                                                                                           
                                                                                                                                                      
Profiles of leadership change in response to different                                                                                                
circumstances and different times. It is unlikely that the                                                                                            
autocratic leadership styles of the business barons of the                                                                                            
last century will be effective in managing today and tomorrow.                                                                                        
                                                                                                                                                      
In a survey of senior executives from across the world                                                                                                
conducted by the Economic Intelligence Unit, in cooperation                                                                                           
with Korn' Ferry International, published in 1997 several                                                                                             
interesting insights into the profiles of leadership in the                                                                                           
21st century can be summarised as follows:                                                                                                            
                                                                                                                                                      
Tomorrow's leader is in the works today: Organisations think                                                                                          
that leadership can be developed and that this development                                                                                            
does not come about by chance.                                                                                                                        
                                                                                                                                                      
Management talent must be identified and stimulated. Corporate                                                                                        
experience is not the only platform where management talent                                                                                           
needs nurturing.                                                                                                                                      
                                                                                                                                                      
According to Abraham Zaleznik, Konosuke Matsushita Professor                                                                                          
of Leadership Emeritius at Harvard Business School, great                                                                                             
business leaders often have more similar traits of artists,                                                                                           
scientists and creative thinkers than traits in comparison                                                                                            
with managers.                                                                                                                                        
                                                                                                                                                      
Not all individuals are strong candidates for leadership.                                                                                             
Managerial candidates do not necessarily possess the right                                                                                            
leadership qualities to lead, notwithstanding that such                                                                                               
instilling leadership development ideas are critical.                                                                                                 
                                                                                                                                                      
The respondents believed that leadership usually begins in                                                                                            
childhood but it further develops on their job experience.                                                                                            
                                                                                                                                                      
Marketing is today the fastest way to the top: The survey                                                                                             
indicated that the top three careers will be marketing                                                                                                
international experience and finance.  Asian corporations                                                                                             
favour international experience equally with marketing.                                                                                               
                                                                                                                                                      
Leadership styles are in transition: When the respondents were                                                                                        
asked to describe the leadership style, they expect their                                                                                             
organisations to adopt in 10 years' time; "command and                                                                                           
control" is no longer applicable.                                                                                                                
                                                                                                                                                      
Instead, a combination of styles, principally one based on                                                                                            
sharing information and power, and spreading decision-making                                                                                          
and responsibility throughout the entire organisation seems to                                                                                        
be the future trend.                                                                                                                                  
                                                                                                                                                      
Diversity will expand: It is often believed that tomorrow's                                                                                           
leadership ranks will be more culturally and gender diverse.                                                                                          
                                                                                                                                                      
Nearly half of the respondents say that the status quo will be                                                                                        
maintained for the CEO position, while another 47% believe                                                                                            
that there will to greater diversity in terms of nationality                                                                                          
and gender.                                                                                                                                           
                                                                                                                                                      
New language of leadership: Today's managers' attitudes to                                                                                            
leadership are changing as organisations are undergoing                                                                                               
radical change.                                                                                                                                       
                                                                                                                                                      
Organisations today are fond of using words like empowerment,                                                                                         
process re-engineering, networking, strategic alliances,                                                                                              
shared values, shared corporate culture, strategic intent,                                                                                            
etc.                                                                                                                                                  
                                                                                                                                                      
The shift in words will move from directing and commanding to                                                                                         
coordinating, facilitating and enabling.                                                                                                              
                                                                                                                                                      
Providing vision is perhaps the most critical leadership task:                                                                                        
The survey revealed that tomorrow's leader will spend much of                                                                                         
his time creating a vision and strategy to be gainfully                                                                                               
empowered.                                                                                                                                            
                                                                                                                                                      
A leader's primary responsibility is to inspire employees                                                                                             
continually to move closer towards larger goals.                                                                                                      
                                                                                                                                                      
Effective leaders, the survey goes on to conclude, should use                                                                                         
every opportunity to reinforce the organisation's identity and                                                                                        
purpose.                                                                                                                                              
                                                                                                                                                      
The most significant contribution from effective leaders is                                                                                           
the sense of who they are and how they draw on the totality of                                                                                        
their experience to inspire people and get them to follow and                                                                                         
make their own contributions to the grand vision.                                                                                                     
                                                                                                                                                      
This appears to be the most powerful style of leadership in                                                                                           
today's global business arena.                                                                                                                        
                                                                                                                                                      
As part of the survey, some leadership techniques are ranked                                                                                          
to give a guide for nurturing effectiveness leadership, and                                                                                           
some are:                                                                                                                                             
                                                                                                                                                      
* FAST tracking of high potential candidates: Based on                                                                                                
interviews conducted, this is closely related to job rotation,                                                                                        
which is a key component to the fast tracking strategy.                                                                                               
                                                                                                                                                      
* Exposure to marketing or to international assignments is key                                                                                        
to the required leadership development objective.                                                                                                     
                                                                                                                                                      
* SUCCESSION planning: This universal technique as indicated                                                                                          
by the interview should take the form of a carefully                                                                                                  
formulated transition to a new leadership.                                                                                                            
                                                                                                                                                      
As soon as a suitable candidate is identified for succession,                                                                                         
his relative strengths and shortcomings are evaluated and                                                                                             
"groomed."                                                                                                                                  
                                                                                                                                                      
* LEADERSHIP recruitment: Management should regularly be on                                                                                           
the lookout for individuals who possess not only the right                                                                                            
technical skills but also leadership abilities, which cover                                                                                           
effective IT communication skills, self-motivation, charisma                                                                                          
sound ethical orientation in addition to the fundamental                                                                                              
business acumen.                                                                                                                                      
                                                                                                                                                      
Given the leadership transformation that will be required to                                                                                          
drive organisations into the new millennium the challenge of                                                                                          
leadership is recognised to be focussed on the following                                                                                              
areas:                                                                                                                                                
                                                                                                                                                      
* TO mandate broader decision making responsibility and                                                                                               
accountability throughout the organisation: When employees are                                                                                        
empowered they must answer for the consequences of their                                                                                              
choices, and there must be clear limits of the exercise of                                                                                            
such decision-making beyond which the next level of authority                                                                                         
must be a party to.                                                                                                                                   
                                                                                                                                                      
* TO inspire a more process-oriented approach: Leaders                                                                                                
recognise that organisations compete through their ability to                                                                                         
deliver overall quality of product or services rather than                                                                                            
through any transient claim to business uniqueness.                                                                                                   
                                                                                                                                                      
Leaders need to inculcate a process approach and to enhance                                                                                           
their organisations' ability to adopt such a focus.                                                                                                   
                                                                                                                                                      
* TO develop cross-functional management teams: Adopting a                                                                                            
process approach will require intensive co-operation amongst                                                                                          
the various functional teams of an organisation.                                                                                                      
                                                                                                                                                      
Organisations are also primarily looking into strategies                                                                                              
through information technology to drive crossfunctional                                                                                               
teamwork and information sharing for crucial business                                                                                                 
decisions and in transnational or global communications.                                                                                              
                                                                                                                                                      
Leaders need to proact and prepare the organisation to be                                                                                             
responsive to a changing market environment.                                                                                                          
                                                                                                                                                      
They should be able to demonstrate the ability to counteract                                                                                          
competitive threats by introducing products or services that                                                                                          
meet future needs of customers.                                                                                                                       
                                                                                                                                                      
Recently, Professor Michael Marquardt of George Washington                                                                                            
University remarked in an MIM seminar on "Managing Change                                                                                        
Amidst Chaos and Diversity" that managers who want to become                                                                                     
leaders can learn from "actions," and if this is done in a                                                                                  
team, it will help develop openness, systems thinking and                                                                                             
creativity.  systems thinking and creativity.                                                                                                         
                                                                                                                                                      
Professor Marquardt cited the lack of a powerful coalition and                                                                                        
clear compelling vision as well as not communicating visions                                                                                          
throughout the organisation and hence people cannot see the                                                                                           
"big picture" and not anchoring changes in corporate culture                                                                                
as the reasons for leadership failures.                                                                                                               
                                                                                                                                                      
It is clear that organisations that will succeed in the 21st                                                                                          
century will be those led by creative leaders who can face the                                                                                        
above challenges.                                                                                                                                     
                                                                                                                                                      
To prepare effective leaders for the future, it would,                                                                                                
therefore, be wise to develop the following critical                                                                                                  
competencies:                                                                                                                                         
                                                                                                                                                      
1. managing change and uncertainty;                                                                                                                   
                                                                                                                                                      
2. seeking strategic alliances: partnering for success                                                                                                
                                                                                                                                                      
3. leading innovation stream and technology leadership;                                                                                               
                                                                                                                                                      
4. managing new markets in a changing environment;                                                                                                    
                                                                                                                                                      
5. managing and motivating people to excel in performance and                                                                                         
                                                                                                                                                      
6. assuming the role of a change agent.