Rethinking Leadership Development.....!!!!!

“Go to the people. Learn from them. Live with them. Start with what they know. Build with what they have. The best of leaders when the task is accomplished are those of whom the people will say: ‘we have done it ourselves’.” – SIR NARAYAN MURTHY.

What are the secrets of successful leadership development?

Key Points

• In developing leadership skills within any organization, there is no substitute for leadership by example
• While debate continues over the extent to which leadership can be taught, what is clear is that malleability diminishes over time, and human resources departments must be able to identify contextually appropriate leadership skills in individuals
• Some of the oldest tools in the leadership development toolkit are still some of the best: developmental assignment – moving leaders-in-training out of their comfort zones into other geographies or divisions – should be a part of any development programme
• Organizations should hire people at points of transition, when they are in the right mindset for life changes and are receptive to training
• A good leadership development programme is one that sets people along their own, self-directed, lifelong path of developing leadership skills
• Organizations successful in leadership training all involve senior management directly and at a high level of granularity, in mentoring, coaching and offering feedback

Synopsis

Are leaders born, or can they be trained?

While opinions on this fundamental question often diverge, consensus has emerged that early experience with leadership is a good indicator of true leadership potential. Young people who have been put into challenging situations, and who have been able to make mistakes and learn from them, have a leg up as leaders. As the increasingly complex and globalized economy has an insatiable demand for leaders at all levels, it is incumbent on educational institutions to begin leadership training early.

There are few, if any, true “universal leaders”. The qualities that define excellence in leadership are highly contextual, and may change appreciably across different sectors and corporate structures, across differently sized organizations and across different cultures. It is the rare leader who can move from one organization to another or from one country to another, and be the same leader.

The traditional distinction between, on the one hand, the visionary and inspirational leader and, on the other, the efficiency- and cost-oriented manager is an essentially false dichotomy. A real leader must be able to cross lines: his or her credibility as a leader depends on the ability to understand and address issues at all levels of an organization – balanced by the ability to delegate effectively.

Much of what was true of leaders 20 years ago remains true today. Some of the fundamental principles pioneered by companies like GE, which recognized the need for internal leadership development relatively early, are still essential components to any programme. Developmental assignment is one such component. And as has always been the case, the best leadership development programmes are those that set potential leaders along their own paths of self-directed discovery and learning. But the approach that organizations take to developing leaders also needs to keep up with the times.

In too many leadership development programmes today, there is a dearth of emphasis on systemic leadership – on the complex interdependency of systems, and the impact that decisions made in one area can have in another, seemingly distant area. This is especially true in the increasingly globalized and interdependent world of the 21st century.

To assess leadership traits and abilities in an individual on the basis of what has worked historically is to use a lagging, not a leading, indicator – a significant handicap in a fast-changing environment. The context of leadership changes and individuals with real leadership potential and tremendous talent that remains undiscovered through management evaluation can be revealed, for instance, in peer evaluation.

Technology is not always the friend of leadership. The ability to communicate nearly instantaneously around the world, 24 hours a day and seven days a week, has created a challenge to leadership that might be called “the Curse of the Blackberry”, allowing for a reverse, upward delegation that permits people to avoid some of the leadership tasks for which they would, traditionally, have been responsible.

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Managing the Global Commons...!!!!!!!

Many low-carbon energy solutions, such as solar farms, biofuel refineries and clean coal plants, could consume billions of gallons of fresh water and significantly change land use.

How can unintended consequences and systemic risks in managing global commons be moderated?

Key Points

• The fact that the world is quickly outpacing its ability to replenish resources that are fundamental to our economies requires rethinking our approach to global governance.

• Markets need to reflect the scientific assessment of what is happening to the planet, and the danger is that market forces may react too slowly to prevent catastrophe; as a result, it might be necessary to resort to a regulatory environment to fine-tune market forces.

• The world has limited bandwidth and there is a danger of drowning in too much information; success depends on choosing achievable, clearly defined and manageable projects and integrating them into a global framework.

• With a diversity of interests and agendas, a practical approach is to form coalitions of like-minded groups or countries and expand from there.

• The most effective approach to financing is to leverage public funding to obtain more substantial funding from the private sector; this may be as simple in some cases as using public funds to provide guarantees to private sector investment.

• New structures, governance mechanisms and new ideas are needed to re-energize a process that is burdened with the weight of existing efforts...

Will India Meet Global Expectations ?????????

Multilateral trade, climate change, Millennium Development Goals and nuclear non-proliferation are just some of the items on the global agenda in which the world expects India to play an active and constructive role. What does the world expect from India and what does India expect from the international community? In partnership with the World Economic Forum, NDTV hosts this debate focusing on the global expectations for and from India. Key Points • India will meet global expectations and the world will expect more of India than it will expect of the world • If India succeeds in its value-driven framework, it could act as model for the rest of the world. • India’s biggest challenge is developing its infrastructure, alleviating poverty and implementing inclusive growth • India is expected to be a global partner in improving the trade system, addressing energy and climate change issues, and contributing to technological advances • Indians expect their country to be given a seat on the United Nations Security Council, as it is the largest democracy in the world. Synopsis Now that India has emerged as a new global economic leader it is expected to take a leadership role both internally and externally. If India succeeds in alleviating poverty and applying inclusive growth through better allocation and access to resources, while at the same time developing its infrastructure and human capabilities, it could act as inspiration to the region through the stability, wisdom and dynamism that it possesses. In parallel, India would also contribute greatly to the global system if it succeeds in its value-driven framework, in which businesses and consumers have achieved a lot with frugal means. In addition to the gargantuan task of developing its infrastructure, India’s challenge is how to develop its own people by providing better access to education and healthcare. The world expects India to be a global partner and to be part of the solution to the global crisis, even though it was not responsible for that problem. Notwithstanding its bilateral problems, India also needs to engage more with its region through free trade agreements and constructive dialogue. In a Facebook survey (conducted specifically for the session) on what the world expects from India, one-third said they expect the largest democracy to cooperate on global issues, especially climate change. On the other hand, when Facebook asked Indians what they expect from the world, two out of five respondents said they wanted a seat for their country on the UN Security Council. Happy Reading.......!!!!!!!!!

Creating Jobs and Strengthening Social Welfare.!!!!!!!!!!

Unemployment rates continue to reach new highs for the decade and 200 million workers, mostly in developing economies, could be pushed into extreme poverty.

What can be done to assist countries that are seeking to increase job creation and strengthen their social insurance systems?

Key Points

• During the recession, global unemployment is estimated to have risen by around 50 million while working poverty increased by 200 million, coming on top of a longer-term crisis in the quality of employment – 50% of employees globally remain in “vulnerable employment”
• Countries that had automatic stabilizers in the form of social welfare fared better than others during the recession, but jobs are created by companies
• Growth is now returning to the global economy and asset valuations are returning; but without a return to a growth in jobs – which is expected in 2013-2015 – the world risks political instability, populism and a return to protectionism
• There is growing global consensus within the G20 on the components of employment policy, and between companies, international organizations, employee organizations and states
• The focus should not just be on job retention, but also on permanent reskilling
• Flexibility within national labour markets and mobility between national labour markets remains essential

Synopsis

The return to growth in the global economy should be celebrated. Without confidence, companies will not take on new employees; without growth, meeting the employment challenge will be impossible. But the current economic recovery has not yet been matched by a jobs recovery. This disconnect may persist until 2013-2015, bringing the risk of political instability, populism and protectionism.

Achieving a jobs recovery requires radical thinking, taking its cue from the sometimes unorthodox but largely successful management of the global financial crisis. Multistakeholder forums, both at the national and global level, are essential.

For the long term, there needs to be a reconsideration of the relationship between economic output and human outcomes. Social security can serve a useful role in protecting jobs, empowering employees to take advantage of market opportunities, and sustaining economic demand. In the short term, countries such as South Africa have successfully used proactive, counter-cyclical measures to help retain jobs and help employees reskill, through temporary subsidies to employers and through extending child welfare payments from age 15 to 17, on condition that children remain in education.

But this cannot come at the price of flexibility – saving jobs that are no longer economically viable only reduces longer-term employment prospects. In the end, it is companies that provide jobs and markets that determine their viability.

The private sector may have a particular role to play. Under a scheme piloted in 2007, the French government put over 10,000 unemployed in the hands of private sector staffing agencies, with a 70% success rate in placing them. There is disagreement on the role of part-time employment, which some see as leading to lower unemployment overall, while others see as enhancing employment insecurity.

The precise policy mix will vary. While China is moving towards a universal pension and enhanced social welfare system, this may not be reasonable in the short-term for India, despite an increasing focus on rural development and employment, including minimum work arrangements.

In addition to the cyclical problems of retaining and providing employment, there are additional structural problems in countries such as India. The first is driven by demographic structure. India has a population of 320 million between the ages of 6 and 16, entering the workforce in the next decade. The second is economic structure. As the agricultural employment falls, there is strong inward pressure on urban areas. If rural populations are unable to move due to a lack of jobs, patience will run out.

Providing skills on this scale is a major challenge. Providing jobs depends partly on high growth –
9-10% for the next several years – and partly on continuing globalization. India can provide a major labour pool for the world. But this implies that globalization – a tremendous success in terms of enhancing opportunity and reducing poverty – retains the support of governments and publics alike.

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Ideas Lab with Young Global Leaders...!!!

The Global Redesign Initiative aims to improve international cooperation on the pressing challenges of the 21st century.

Join Young Global Leaders to explore “open source” innovations in:

- Engaging youth in policy-making
- Mainstreaming the MDGs
- Rethinking intellectual property
- Ensuring rights to public information
- Restoring the health of oceans
- Fostering the “missing middle” entrepreneurs

Key Points

• Outreach would be greatly approved for each cause through greater media attention to generate public awareness
• Each idea would benefit from piggybacking on the success of existing players in its cause, ranging from NGOs in good governance to major investors in Africa
• Social networking and online tools can also stimulate more vibrant public support

Synopsis

Young Global Leaders presented initiatives on a range of issues and brainstormed in concrete ways to build support for these projects.

Engaging Youth in Policy-making
This initiative convenes town hall meetings for young people and offers online tools for hosting these sessions. Meetings have taken place around the world – from Colombia to Lebanon to Uganda. Participants discussed ways to help policy-makers access the ideas of these young people, and suggestions included having a youth representative on boards and leadership committees.

Mainstreaming the MDGs
The Millennium Development Goals have a deadline of 2015, and President Barack Obama has called for the creation of an action plan by 2010 to ensure these objectives are met on schedule. This initiative calls for a “People’s Plan of Action” – including civil society and ordinary citizens – to ensure that diverse voices are not only heard, but also translated into concrete action.

Rethinking Intellectual Property

The existing patent regime hampers innovation for a market where ideas are most needed: people who suffer from malnutrition or live on less than a dollar per day. A “global responsibility license” would create a niche in the intellectual property regime that protects an idea’s commercial potential and preserves access to the “humanitarian market”. Moving this idea forward will require cooperation with major constituencies such as NGOs and legal, scientific and business communities.

Ensuring Rights to Public Information
Recent legislation to improve access to information has affected India profoundly. For approximately US$ 0.05, Indian citizens can request data, ranging from attendance records of teachers to committee meeting schedules. These requests typically prompt swift action from government officials, and such accountability should become even more widespread. This initiative will draft a “Model Act” on which other nation’s public information laws could be based. Text will be posted on a wiki and translated in a number of languages, so that citizens around the world can help push for greater government accountability.

Restoring the Health of Oceans
From overfishing to the great Pacific “garbage patch”, the world’s oceans are suffering environmental abuse. This pressing environmental cause needs an “Al Gore” to galvanize public attention and avert crisis. Social networking as well as partnerships with large corporations can also be used to build momentum around this growing problem.

Fostering the “Missing Middle” Entrepreneurs
The rise of microfinance has provided considerable start-up financing to small-scale entrepreneurs. However, a huge gap remains between microfinance and private equity scale ventures. Creating vibrant economies in the developing world will require greater attention to this type of business, which currently lacks support. Brainstorming focused on finding mentors for leaders of small businesses and strengthening ties to prominent investors who might contribute to smaller funds.

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The Power of the Purse..!!

The projected worldwide increase of women’s income by 2013 is US$ 5.1 trillion, which is greater than China’s expected growth of US$ 3 trillion over the same time period.

How is women’s increase in purchasing power transforming markets and society?

Key Points

• The increased purchasing power of women, combined with the spread of new technologies that provide greater market access to female entrepreneurs and workers, has the potential to generate sweeping economic and social change, particularly in developing countries

• Global marketing analysts estimate that women already control as much as 80% of all consumer spending, either directly or indirectly – an estimate that, if anything, may be understated; this share could increase in coming years, as global female employment is projected to rise by 20% over the next five years

• As their purchasing power increases, women are likely to also gain increased influence over other household decisions, not just financial ones

• Studies show that women are more likely than men to spend their discretionary income on family necessities – in theory, increased female control of household budgets could lead to improved child nutrition, health and education in the developing world

• The economic empowerment of women is likely to create difficult social challenges as well as opportunities, as existing marital and other relationships between men and women will come under increasing strain

Synopsis

Considered as a whole, women could and perhaps should be considered the world’s largest emerging market. In developed countries, the recent recession has boosted the relative economic power of women, as they have been less exposed to layoffs in traditionally male-dominated industries, such as financial services. Already, close to 50% of the workforce in the US is female, while 60% of all college degrees awarded in the US and Europe now go to women. In the developing world, meanwhile, the spread of transformative technology such as mobile telephony is enabling millions of women to enter the formal economy both as workers and entrepreneurs.

These trends are creating social challenges as well as opportunities. In developing countries, increased disposable income is fuelling rural economic development, channelling resources to impoverished families and creating incentives to invest in health and education for young girls.

On the negative side, the economic empowerment of women is disrupting traditional male-dominated social relationships, potentially resulting in marital strife, the alienation of young men, and the breakdown of extended family support systems. Cultural and social evolution, not just economic progress, holds the key to resolving these problems.

In the developed world, women workers and entrepreneurs face a different but equally complex set of challenges, as do the companies that employ and/or do business with them. Although women now account for a rising share of graduates and entry-level workers, even in traditionally male-dominated professions as business and finance, women continue to abandon career tracks and leave the workforce at far higher rates than men, due to the persistence of their roles as primary caregivers.

While it is important to distinguish between voluntary and involuntary motives for leaving the workforce (since some women genuinely prefer to devote the bulk of their time to their homes and families), it is in the interests of employers and society as a whole to adopt family-friendly policies, such as improved childcare services, that would allow women to remain in or return to the workplace.

Likewise, in the developing world it is important to recognize that some women are being forced into the labour market by economic necessity, not choice. While technological advances and targeted investments in young girls are important tools for easing these pressures, a reduction in overall poverty and improvements in the general level of social services are also critical.

Attention was also given to the implications of these trends for business – specifically, marketing products and services to women. It was generally agreed that successful strategies will seek to reach women as individuals, not as generic “female consumers”. This is in keeping with the broader trend towards increased fragmentation of advertising channels and the breakdown of mass markets.

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Entrepreneurship: The Key to Sustainable Growth..!!

Entrepreneurs are major drivers of economic growth, social progress and job creation.

How can skills and capital be ensured to promote entrepreneurship in tough economic times?

Key Points
• Though associated with boom times, entrepreneurs’ real value emerges during recessions and eras of economic turmoil
• Entrepreneurs are born, not made; all humans are born entrepreneurs
• Nations can cultivate conditions that help unlock the potential of entrepreneurs
• All entrepreneurs take some voluntary risks, but successful ones calculate carefully to minimize their asset’s exposure to the potential downside
• Governments can help tip the scales through spending or privatization

Synopsis
One Beggar walks into a bank. He has no training, no skills, no contacts, no plan and no dignity. The banker looks him in the eye and decides to extend a low-interest loan of low-value, non-monetary assets to sell while making his daily door-to-door rounds. Within months, the beggar knows which shops and houses will buy the stuff, and who will give him coins in pity. With no business school degree, he masters the art of market segmentation; within four years, one in five such bank customers stop begging to become full-time, self-employed sales professionals. The lender creates 18,000 jobs with little exposure to capital risk, and loan repayment rates that Wall Street might envy.

This true turnaround story of a seemingly hopeless underclass unlocks secrets about the mystery of capital. It illustrates what dinner participants concluded: that all humans are entrepreneurs. And yet certain conditions can go a long way to cultivate a supportive atmosphere of entrepreneurship in a society, whether a local community or national economy.

First, you need well-trained human capital, someone with good ideas who knows how to grow and administer a business. Next, you need the networks and role models of social capital. Third, you need financial risk capital, either with labour-intensive microfinance or involving the lower transaction costs of large transactions. Finally, you need institutional capital of law and order with predictable rules and respect for property rights.

The trouble with economic downturns is they have a chilling effect on all four kinds of capital because they erode the trust that in each case provides the transactional glue. In a global survey of 180,000 entrepreneurs, most respondents said it was harder to start a business in 2009 than in 2008. And those who did start a business were driven less by the pull of opportunity than the push of necessity.

To build – or rebuild – entrepreneurial confidence, education should start early and often. You do not learn everything you need to know by kindergarten; start talking to your child about money and entrepreneurship, ownership and risk taking.

Then, in college and after graduation, keep up the mentorship programmes and peer support mechanisms that encourage entrepreneurs to dream big, never give up and treat people with respect.

To speed economic recovery, entrepreneurship is essential. It is well known that small business creates the most jobs. More significantly, young businesses – less than five years old – are the biggest engines of labour-intensive growth.

Sometimes a culture entrepreneurship and the social capital of networks are catalysed by default. When one entrepreneur tried to finance an idea, he was turned away by 32 venture capital firms. Failure was dreaded. Years after the start-up did succeed, and the entrepreneur sold the company for US$ 750 million, the investors who turned him down and missed an opportunity formed their own networks with a strategic plan to ensure they did not miss the next big thing.

If indeed every human is an entrepreneur, and the benefits of unlocking the four kinds of capital are so immense and pervasive throughout society, then some participants argued that access to credit should be a human right.

Others drew the conclusion that all too often business schools had failed society by narrowing the scope of lessons about the nature of the firm, and it was time to bring poetry back into the equation. A company is more than the sum of assembled parts and people to maximize an abstract number. People seek value beyond prosperity for their immediate family. Whether driven by profit or non-profit, entrepreneurial business gives meaning to life.

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