| A key reason for companies' downhill slide is | | | | CEOs who were able to transform their |
| undoubtedly the quality of CEO. Most turnaround | | | | loss-making joint ventures into successful ones. |
| situations arise because of the CEO's | | | | General Motors sent one of its best people to |
| incompetence, ineptness, carelessness, ego and | | | | China in the mid-1990s and is now very |
| or inexperience. It is simply too much to ask or | | | | successful, even being linked to the Shanghai |
| expect the incumbent management to be | | | | Automotive Industry Corporation. Toyota is |
| objective in evaluating its past performance when | | | | sending its expatriates for sixmonth or longer on |
| the CEO is probably the same person whose | | | | language courses to prepare them for the China |
| mismanagement caused the company's financial | | | | assignments. The crux is to have the best key |
| health to deteriorate in the first place. The | | | | man in place. |
| problem is that some CEOs may lack training | | | | People often confuse the differences between |
| even though they may think they know it all. | | | | leaders with managers and use those terms |
| Sir John Harvey Jones said that the reason many | | | | interchangeably. Managers do things right, while |
| companies always find themselves in trouble is | | | | leaders do the right thing. Managers tend to focus |
| almost always due to the problems right at the | | | | on short-term goals and objectives and administer |
| top. Sir John Harvey-Jones is one of Britain's | | | | them. On the other hand, leaders also consider |
| best-known and most respected business leaders. | | | | such issues as well as other long-term issues to |
| Besides being the Chairman of ICI he won the | | | | inspire and innovate their staff. Managers act and |
| fame as the star of the BBC TV series | | | | think incrementally whilst leaders think and act |
| 'Troubleshooter'. Harvard's Professor Rosabeth | | | | radically. A leader is someone that will attract |
| Moss Kanter, whose work focuses on leadership | | | | other people to follow them voluntarily whereas a |
| of turnarounds pointed out in the Economic and | | | | manager demands to be obeyed. Whilst the |
| Social Research Council lecture in London: "Formal | | | | manager uses official and formal communication |
| structures and process undergird confidence, but | | | | and procedure, the leader uses passion and stirs |
| what also matters is the willingness of leaders to | | | | up the emotion of the people. |
| believe in people and give them opportunities to | | | | Leadership matters. John Maxwell, an author on |
| share. Behind every winning streak are leaders | | | | several books on leadership said: "Everything rises |
| who care about the team. That is why new | | | | and falls on leadership." And it matters more in |
| leaders are often required to lead turnarounds." | | | | times of uncertainty than in times of stability. |
| Michael Dell of Dell Computers said, "When a | | | | Leadership is not a fad. It is here today and |
| business goes wrong, look only to the people who | | | | forever. |
| are running it." | | | | Leadership is an observable set of skills and |
| Sun Tzu acknowledged the critical role played by | | | | abilities. Leadership takes precedence because it is |
| generals or CEOs when he said: "When the | | | | the top management who decides what need to |
| general is weak and without authority, when his | | | | be done and the ones who make things happen. |
| orders are not clear and distinct, when there are | | | | It is true that one person alone cannot change |
| no fixed duties assigned to officers and men and | | | | the world, or even a moderate-sized organisation. |
| the ranks are formed in a slovenly haphazard | | | | It takes the concentrated energy, ideas and |
| manner, the result is utter disorganisation. | | | | enthusiasm of many people. But without a leader, |
| Many early ventures into China fared miserably as | | | | the movement does not get started in the first |
| these companies sent the wrong managers to run | | | | place, or it quickly fizzles off for lack of direction |
| the operations there. By merely having a local | | | | or momentum. Without leaders, good results are |
| staff or secretary to handle the Chinese relations | | | | a matter of random chance and therefore |
| is insufficient. Companies should send managers | | | | unsustainable. Change requires leadership and will |
| with excellent managerial skills as well as those | | | | not happen by default. Leadership is the backbone |
| with excellent understanding of China market. | | | | around which all the rest of the corporate body |
| Volkswagen and Siemens hired some excellent | | | | takes shape. |