Leadership in China Ddi

KEEPING PACE WITH A GROWING ECONOMY> Paul R. Bernthal > Jason Bondra > Wei Wang

LEADERSHIP IN CHINA:

A Welcome from DDI We are pleased to present this report, which offers a

snapshot of the current status of leadership within

China’s business community.

This report grew out of a larger study, DDI’s

Leadership Forecast, 2005–2006. Subtitled “Best

Practices for Tomorrow’s Global Leaders,” the forecast

reflects DDI’s belief that all leaders eventually will work

within a world economy, one in which lines between

countries and cultures are blurred. The challenges

leaders face now, and will increasingly face in the

future, are captured in the urgent questions the

forecast—and this report—addresses: Does the

organization have the right leaders? Do those leaders

have the necessary skills? Are they ready?

DDI believes that leaders and employees are the life

force behind every successful organization. To remain

competitive, organizations must be able to select,

develop, and grow their leaders. No single approach

to leadership development is right for every

organization, but there are practices that work in most

situations. We hope this report will provide insight into

best practices and encourage further investments in

leader development.

Ronnie Tan Li TongVice President/Marketing Director, DDI Asia

KEEPING PACE WITH A GROWING ECONOMY> Paul R. Bernthal > Jason Bondra > Wei Wang

LEADERSHIP IN CHINA:

ABOUT DDISince 1970 Development Dimensions International has worked with some of the

world’s most successful organizations to achieve superior business results by

building engaged, high-performing workforces.

We excel in two major areas: Designing and implementing selection systems

that enable you to hire better people faster, and identifying and developing

exceptional leadership talent crucial to creating a workforce that drives

sustained success.

What sets DDI apart is realization. We focus on the needs of our clients and

have a passion for their success. The outcome? You bring the best people on

board, who get up to speed faster, contribute more, and stay longer—giving you

the ultimate competitive advantage.

STUDY METHOD AND PARTICIPANTSThis study evaluated several aspects of leadership in China with a focus on

these issues:

1. Leader skills.

2. The culture of leadership.

3. Leaders’ ability to identify and select talent.

Human resource professionals and leaders from a range of organizations were

surveyed in early 2005. HR professionals from 43 organizations (77 percent

multinational) completed a paper-based survey; 394 leaders from those

organizations completed a leader survey.

2 Leadership in China

© Development Dimensions International, Inc., MMV. Pittsburgh, Pennsylvania. All rightsreserved under U.S., International, and Universal Copyright Conventions. Reproduction inwhole or part without prior written permission from DDI is prohibited.

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CONTENTSINTRODUCTION ..................................................................................................................................................4

Background............................................................................................................................................................4

Current Leadership Picture....................................................................................................................................4

Future Challenges ................................................................................................................................................5

LEADER SKILLS ..................................................................................................................................................5

Skill Levels of Leaders ..........................................................................................................................................7

THE FOUR THEMES OF CHINESE LEADERSHIP ............................................................................................8

Critical Leadership Skills........................................................................................................................................8

Getting Results ......................................................................................................................................................9

Relationship Management ..................................................................................................................................10

Coaching and Development ................................................................................................................................10

Managing Performance........................................................................................................................................11

THE CULTURE OF LEADERSHIP......................................................................................................................11

New Leader Preparation ......................................................................................................................................11

Development Opportunities for Leaders ..............................................................................................................12

Quality of Leadership Development Programs ....................................................................................................13

Defining and Promoting Leadership ....................................................................................................................13

EMPLOYEE HIRING ..........................................................................................................................................14

CONCLUSIONS ..................................................................................................................................................15

DEMOGRAPHICS ..............................................................................................................................................16

AUTHORS AND RESEARCH TEAM..................................................................................................................17


INTRODUCTIONBackgroundIf you take a survey of all the CEOs of listed companies inAmerica and ask them, ‘What’s the single factor that’s going tochange the world,’ it’s going to be China.

—Donald Straszheim, Economist, Straszheim Global Advisers LLC, Los Angeles1

The emergence of China as a major global economic force has

put the world on notice. A culture steeped in tradition finds itself

grappling with what shaped its past and what forces its future.

Its rapid economic growth—at a rate of 8 percent a year,

compared to 3 percent in the United States—has come with a

price. China’s growth has dramatically stretched an already

aging labor supply, fueling intense competition for talent.

Turnover rates continue to rise as workers, their skills in

demand, hold more bargaining power. While an economic

juggernaut now and for the near future, China might not be able

to sustain its newfound stature in the face of such challenges.

While organizations around the world face the challenge of

finding leaders, cultural factors are compounding that task in

China. The continuing transformation of its economy means

Chinese business leaders must possess a skill set that blend

new ways with the old. Leadership in China has long been

based on a foundation of mutual respect and a feeling of

connectedness among individuals. However, to compete

globally, China’s new leaders need leadership qualities that

reach across nations and cultures. Those organizations that

are able to find, develop, and retain leaders who can perform at

high levels while constantly adapting to a changing society not

only ensure their continued success but also will realize a

competitive advantage.

Current Leadership PictureToday’s leaders in China face a unique challenge: On the one

hand, they know they need to adapt to the demands of a global

market if they want their organizations to compete and succeed.

On the other hand, they must respect cultural traditions. These

traditions include the concept of guan xi, which teaches the

relatedness or connections among individuals. Furthermore,

Chinese culture has been heavily influenced by the teachings of

the great philosopher, Confucius, who stressed the value of the

thoughtful man, learning through mistakes while consciously

respecting tradition and values.

To better understand this challenge, it helps to look at what sets

China apart culturally from the rest of the world regarding

leadership. Considerable insight into the Chinese leadership

ethic can be found in a comprehensive study of cultural

influences in the workplace conducted by Geert Hofstede.

Hofstede’s study analyzed data from more than 70 countries

spanning six years.2 The results showed that China had ranked

the highest in “long-term orientation,” a finding consistent with

the high value the Chinese place on patience and perseverance

FINDING 1The most critical skillsfor Chinese leaders are motivating others,building trust, retainingtalent, and leading high-performance teams.

1 Cited in “China May Be on Course to Overtake U.S. Economy,” by C. Hutzler,January 24, 2005, Wall Street Journal, p. A2.

2 Culture’s Consequences: Comparing Values, Behaviors, Institutions and OrganizationsAcross Nations, by G. Hofstede, Thousand Oaks, CA: SAGE Publications.

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and the relatively low value they place on aggressively acting for the sake of

taking action. The study also found that “feelings of individualism” was

ranked lower in China than in other countries. The data from the study

underscored the traditionally accepted perceptions of leadership in China;

yet, China’s important role in a global economy means that the country’s

traditional ideals of leadership will be forced to adapt if it’s to compete

successfully in an increasingly international marketplace.

Skills that were once viewed as primarily Western in importance (and,

therefore, not necessarily relevant within Chinese culture) are now found to

be critical to the success of leaders in China too. For instance, leaders now

are expected to be coaches who can guide the development of their teams.

Carol Hymowitz, writing in the Wall Street Journal, notes, “Young, educated

Chinese from top schools with few years of work experience often have their

pick of entry and midlevel jobs . . . They are looking for training and frequent

promotions, and they’re willing to job hop to advance.”3

Future ChallengesAn army of a thousand is easy to find, but, ah, how difficult to find a general.

—Chinese proverb

As if managing fast-breaking change was not enough for China’s leaders,

they also are expected to recruit, retain, and develop talent while respecting

the cultural influences that played a vital role in their identity as a nation. Are

these leaders ready for the challenges before them? Is there a clear image

of successful leadership in China? The following endeavors to begin a

discussion on the current state of leadership in China and what

organizations must do to support the leaders upon whom they depend.

LEADER SKILLSLeadership styles and skill levels in China are very much a reflection of

Chinese culture itself; thus, culture might have implications for how Chinese

leaders will fare in a fast-growing business environment. Although Chinese

organizations have operated quite effectively in the past, will those business

methods and skills continue to be effective in an international economy?

FINDING 1: The most critical skills for Chinese leaders are motivatingothers, building trust, retaining talent, and leading high-performanceteams.

We asked HR professionals and leaders to select the top 10 most critical

skills for leaders from a set of 22 possible skills. Results show that Chinese

leaders emphasize several factors that are important for sustained

performance (see Figure 1):

• Motivating Others: Motivation is closely correlated to employee

productivity and retention. In large part it’s up to leaders to spark a high

level of sustained energy and peak performance in people. In the China

of tomorrow, it will be critical for the country’s leaders to leverage

employee talent and ensure that every employee fully contributes to

meeting organizational goals.

• Building Trust: While trust is the responsibility of each individual,

leaders are the guardians of the “trust environment.” In a workplace

where trust is valued, organizations see more teamwork, partnering,

and productivity. Without trust, Chinese leaders would have a hard time

marshalling their resources and responding to new challenges.

3 Cited in “Recruiting Top Talent in China Takes a Boss Who Likes to Coach,” by C. Hymowitz, April 26,2005, Wall Street Journal.


• Retaining Talent: Chinese leaders need to work to retain

the talent that drives team and organizational success.

In China’s competitive labor market, organizations find

themselves competing for the best talent while their

employees consider going to those organizations that offer

the best opportunities. Chinese leaders recognize that talent

is the key to long-term success and that they must work hard

to find and keep the right people. (In the new economy,

dissatisfaction with benefits and compensation aren’t always

the primary reason employees leave their organization;

many employees leave because of poor relationships with

their leaders.)

• Leading High-Performance Teams: Though team

members’ attitude and abilities play a critical role in

achieving optimal performance, it is the leader who can be

the “make or break” factor in a team’s success. The leader’s

FINDING 2Almost one-quarter ofChinese leaders areweak in the skills mostcritical for success intheir roles.

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FIGURE 1: Critical Skills for Leaders in China

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knowledge, skills, and abilities can transform an acceptable team into

an exceptional one. In China where relationships are of paramount

importance, leaders know they must build relationships among team

members and between teams.

It is interesting to note that both leader and HR professional ratings yielded

the same set of top skills for leaders. Such agreement is a positive sign

because it shows that HR professionals understand what it means to be a

successful leader in China. Although the relative importance of this set of

leadership skills may be unique to China, leaders around the world

acknowledge the importance of these same skills. The real difference is in

the level of emphasis each culture places on these skills and the current

level of leader proficiency.

Skill Levels of LeadersFINDING 2: Almost one-quarter of Chinese leaders are weak in theskills most critical for success in their roles.

In addition to identifying the most critical skills, we asked leaders and HR

professionals to rate leaders’ proficiency levels. We found that relatively few

leaders demonstrated strengths in the most important skill areas. Figure 2shows the percentage of leaders rated as weak, acceptable, or strong in the

top 10 most important skill areas for leaders. Although a slim majority of

leaders show an acceptable level of skill (57 percent), almost one-quarter

were deemed “weak” in the most important skills needed for success.

Figure 3 illustrates leaders’ proficiency in 22 skills as rated by both leaders

and HR professionals. The skills are ranked from most important to least

important. Leader and HR professional ratings differed, sometimes

considerably, as in Delegating for Results (32 percent vs. 7 percent) and

Valuing Differences (24 percent vs. 5 percent). Despite their differences,

both groups agreed that less than a third of all leaders demonstrated

strength in any skill. For example, leaders indicated that only 11 percent of

leaders are “strong” in skills related to retaining talent, the third most critical

skill area.

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FIGURE 2: Strength of Chinese Leadership: Leader Ratings

In general, the 10 most critical skills received somewhat higher

strength ratings than the less critical skills (see Figure 3). On

average, 20 percent of leaders demonstrate strengths in the top

10 skill areas. These findings suggest that Chinese leaders will

need to devote more attention to developing the skill areas that

are most important for their success.

THE FOUR THEMES OF CHINESELEADERSHIPCritical Leadership SkillsFINDING 3: Chinese leadership skills can be classified intofour themes: getting results, relationship management,coaching and development, and managing performance.


FINDING 3Chinese leadership skillscan be classified into fourthemes: getting results,relationship management,coaching anddevelopment, andmanaging performance.

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FIGURE 3: Strength of Leader Skills

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After carefully reviewing the skills deemed critical and the areas of strength,

we attempted to identify underlying themes that define the nature of leadership

in China. We submitted the proficiency ratings made by leaders to a principle

components factor analysis. This analytic method allowed us to determine

which skills tended to cluster together. Four primary themes emerged:

1. Getting Results

2. Relationship Management

3. Coaching and Development

4. Managing Performance

The skills within each theme are closely related. Table 1 illustrates these

themes in several ways. The skills are grouped within their appropriate theme.

They also are listed in order of their critical ranking as determined by leaders

(in parentheses next to each skill). Additionally, the table provides ratings of

leader proficiency for each skill. By taking a closer look at each theme, we can

better describe the requirements for effective leadership in China.

Getting ResultsThe traditional leadership model in China emphasizes the importance of

relationship management. However, there is an underlying skill set that is

even more fundamental: getting results. DDI’s Leadership Forecast2005–2006 found that most leaders believe that getting results is the action

that garners the most respect in their organizations.4 In this theme, we see

personal leader skills such as adaptive leadership, influential leadership,

achieving leadership potential, and rapid decision making. All these skills

are related to maximizing a leader’s personal impact as a leader, not to his

or her management of direct reports.

TABLE 1: THE FOUR THEMES OF LEADERSHIP (LEADERS’ RANKINGS AND RATINGS)Leader Proficiency Ratings > > >Development Need Acceptable Strength

Theme 1: Getting Results 27% 58% 15%

Retaining Talent (3) 30% 59% 11%

Leading High-Performance Teams (4) 17% 67% 16%

Achieving Your Leadership Potential (8) 32% 58% 10%

Rapid Decision Making (12) 28% 50% 22%

Adaptive Leadership (14) 33% 57% 11%

Influential Leadership (18) 23% 57% 20%

Theme 2: Relationship Management 20% 58% 22%

Motivating Others (1) 21% 53% 26%

Building an Environment of Trust (2) 15% 60% 25%

Building Winning Partnerships (5) 13% 57% 29%

Leading Change (7) 42% 44% 14%

Valuing Differences (9) 19% 57% 24%

Resolving Conflict (11) 16% 70% 14%

Reaching Agreement (19) 14% 65% 21%

Theme 3: Coaching and Development 24% 58% 18%

Delegating for Results (6) 16% 52% 32%

Developing Others (13) 29% 59% 12%

Coaching for Improvement (16) 22% 63% 16%

Coaching for Success (17) 20% 60% 20%

Interviewing Skills (22) 33% 58% 9%

Theme 4: Managing Performance 28% 60% 12%

Setting Performance Expectations (10) 25% 59% 16%

Managing Performance Problems (15) 32% 60% 8%

Reviewing Performance Progress (20) 35% 59% 7%

Making Meetings Work (21) 19% 63% 18%

Note: Numbers in parentheses indicate leaders’ critical rankings.4 Leadership Forecast 2005–2006: Best Practices for Tomorrow’s Global Leaders (p. 8), by P.R.Bernthal and R.S. Wellins, 2005, Pittsburgh, PA: Development Dimensions International.


This theme also includes the practical skills of retaining talent

and leading high-performance teams. Both of these skills are

closely tied to the concept of getting results—leaders who can

retain talent are more likely to get results because they spend

less time hiring new employees and operating with vacant

positions. In addition, by guiding their teams to a level of high

performance, leaders can focus team efforts and help increase

team productivity.

Relationship ManagementIn China the value placed on leaders’ ability to manage

relationships with employees often is prized more than any

other skill. Our findings underscore this culturally unique fact.

Relationship management is an important skill set for leaders in

any culture, but the Chinese concept of guan xi reinforces its

value. As Lien Siaou-Sze, senior vice president of Hewlett-

Packard’s Technology Solutions Group in Asia-Pacific and

Japan, stated, “Before people will follow willingly and

enthusiastically, they must truly believe in the leader. This is

based on the leader’s core values and the credibility that has

been accumulated over time.”

Lien Siaou-Sze’s observation highlights the prominent role trust

plays in successful leader-team relationships, where trust is the

key to motivation. But there’s more to these productive,

mutually respectful relationships than reciprocal trust between

the leader and team members; other important skills are

involved too.

Winning partnerships are those in which all partners value the

effort and the results. In successful partnerships, all

contributors are uniquely valued for their contributions in a

trusting work environment. Leaders in China strive to maintain

harmony by resolving conflicts and helping others reach

agreement. In a global and diverse workplace, Chinese leaders

will need to manage cultures and different styles to unify others’

efforts toward a common goal.

Leaders also must be able to help their teams navigate through

change. In the new China, a leader’s ability to “shift gears” and

embrace change is key to ensuring they and their teams cross

the finish line ahead of competitors. If a team is unprepared or

lacks a clear vision for where they are going, the result can

damage the relationships the leader has worked so hard to

maintain.

Coaching and DevelopmentWith the increasing competition for talent, a leader’s ability to

coach and develop team members will be critical for successful

leadership and for attracting high-quality talent. In her article in

the Wall Street Journal, Hymowitz reported that the managing

director of an international search firm’s Beijing office found that

“money is a less important reason to change jobs than the

potential to grow and have a close working relationship with an

immediate boss.”5 Evidence of this can be seen in the actions

of college graduates seeking entry-level and mid-level

FINDING 4More than one-half ofChinese leaders areinadequately preparedfor their roles in the new economy.

5 Quoting Grace Cheng of Korn-Ferry International in “Recruiting Top Talent in ChinaTakes a Boss Who Likes to Coach,” by C. Hymowitz, April 26, 2005, Wall Street Journal.

employment: They often look for strong leaders who can help them further

their careers; in particular, they want leaders who can provide development

opportunities and offer mentoring/coaching relationships.

In addition to guiding the development of new hires, Chinese leaders must

be able to coach existing team members to promote productivity. Too many

leaders hang on to the misguided concept that a good coach is someone

who helps his or her team learn from its mistakes. This type of leader/coach

focuses on improvement and correct performance only after mistakes

happen. In China’s current environment, organizations cannot afford this

trial-and-error approach to productivity growth. To grow and succeed,

organizations are learning that they need things to be done right the first time.

Managing PerformanceManaging performance addresses the ability of a leader to consistently keep

the team performing at high levels. Although Chinese leaders did not

consider this a critical skill set, managing performance is indeed an

important part of leader success. In a competitive environment, there is no

room for misdirected effort and poor performance.

Achieving business results requires aligning an employee’s goals with the

organization’s overall strategy. Leaders must help people see how their

efforts contribute to the organization’s success. When leaders are able to

review progress toward agreed upon-expectations, they strengthen the

performance of the individual, the work group, and the organization. Poorly

performing employees can work directly against leaders’ efforts at

maintaining relationships on their teams. Just one employee with chronic

performance or work-habit problems can drag down the performance and

morale of an entire work group. Handling those kinds of issues can

dominate leaders’ time and lead to frustration and stress.

THE CULTURE OF LEADERSHIPIn addition to their own personal drive and determination, leaders need their

organization’s support and encouragement to develop their skills. The

increased scrutiny on Chinese leaders will challenge their understanding of

what it means to be a leader and their level of preparedness for managing

their teams in a growing economy. We asked leaders about their current

organizational culture and the level of support they receive. Their responses

are reflected in the following findings.

New Leader PreparationFINDING 4: More than one-half of Chinese leaders are inadequatelyprepared for their roles in the new economy.

As seen in Figure 4, about 55 percent of HR professionals feel that new

leaders are not adequately prepared for their roles. Leaders believe that 36

percent of their peers are not ready. This low level of readiness is especially

troubling given that more than three-quarters of leaders are not strong in the

skills most critical to their success.

Too often, new leaders are thrown into their roles with little or no preparation.

New leaders might be selected because they are good at technical aspects

of their job, but not necessarily at leading people. Unfortunately, many

organizations evaluate and select leaders based on current performance in

non-leadership positions instead of readiness for a leadership role. If new

leaders are to be successful, they need to receive support and development

opportunities before assuming a leadership position.

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It’s difficult to know exactly what will happen to the Chinese

economy, which has a potential for enormous growth. Although

many leaders are unsure about their own readiness to handle

future challenges, the issue is receiving more and more

attention. In fact, most HR professionals (78 percent) agree that

senior leaders give the issue of leader strength a lot of attention.

Senior leadership involvement is a key influence on the success

of leadership development and succession management

programs. Those organizations that devote attention to

leadership preparation will likely reap the greatest benefits.

Development Opportunities for LeadersFINDING 5: Most leaders and HR professionals agree thatleaders have opportunities to develop.

We asked leaders and HR professionals if there were

opportunities for leaders to develop. About 78 percent of HR

professionals and 83 percent of leaders felt that development

opportunities were available. However, this finding does not

reflect the quality of those development opportunities. (See the

following section for more on this topic.)

The best organizations view leaders as assets who need to be

nurtured and cultivated if they are to continue to maximize long-

term performance. If leaders are not given the opportunity to

develop, then their teams and, ultimately, the organization, will

suffer from a failure to adapt and grow. For leaders to be

strong in any area of their jobs, they must have development

opportunities that allow them to nurture and refine their skills. To

realize the potential of development, leaders need to identify their

strengths and development needs, create a development plan,

participate in development activities, and apply their new skills.

Studies have shown that special projects and assignments and

mentoring/coaching relationships are highly effective methods

for developing leader skills.6 China’s growing economy will

offer many opportunities in the form of special projects and

assignments for leaders to take on so they can grow their skills.

Regarding mentoring and coaching, most leaders (82 percent)

FINDING 5Most leaders and HRprofessionals agree that leaders haveopportunities todevelop.

FINDING 6More than half of HRprofessionals feel thatcurrent leadershipdevelopment programsare of poor or fairquality.

FINDING 7About 38 percent ofleaders disagree aboutwhat it means to be agood leader.

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FIGURE 4: Leaders’ Preparationfor Their Roles in the New Economy

Note: Numbers indicate HR professionals’ ratings.

6 Bernthal and Wellins, p. 15.

believe good leadership role models already exist in their organizations. By

leveraging the experiences of these effective leaders, organizations can

create mentoring/coaching relationships to build the skills of emerging

leaders.

Quality of Leadership Development ProgramsFINDING 6: More than half of HR professionals feel that currentleadership development programs are of poor or fair quality.

We asked HR professionals in China to evaluate the quality of their current

leadership development programs. More than half (57 percent) considered

their programs to be of “poor” or “fair” quality (see Figure 5). Leaders’

ratings were less harsh: 47 percent rated development program quality as

“poor” or “fair.”

These ratings may show that Chinese organizations, like those in other

countries, too often fail to create competency models that can be used to

select leadership development programs—programs that should be linked to

the competencies important for leader success. Without a good

understanding of what it means to be an effective leader, development

programs may miss important skills or focus on the wrong behaviors. In

addition, leaders need varied and high-quality programs that are targeted

specifically to their needs. Each leader has a different learning style; some

may prefer to learn skills in the classroom, on the job, or through alternative

media. Finally, good leadership development systems can improve the

learning experience by including components such as electronic

performance support systems, adequate personal assessment, and the

availability of stretch assignments. Organizations in China will need to

carefully examine their approach to leader development and focus on

improving the overall quality of the learning experience.

Defining and Promoting LeadershipFINDING 7: About 38 percent of leaders disagree about what it meansto be a good leader.

We asked leaders and HR professionals if their organizations understand

what it means to be a leader. About 38 percent of leaders and 26 percent of

HR professionals stated that leaders in their organization disagree about

what it means to be a good leader. This level of disagreement is troubling

because it shows that many people are unclear about what leaders should

be doing. Nevertheless, we must recognize that in a rapidly changing work

environment, it’s hard to know what skills leaders will need.

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A common understanding of what it takes to be an effective

leader is rooted in the existence of good competency models

for leadership that underpin HR systems. Selecting and

promoting good leaders should not be a hit-or-miss proposition.

Organizations must develop a consistent, accurate model of

leadership that is used by leaders throughout the organization.

Such a model helps leaders know what is required for success

and understand the criteria that will be used to evaluate their

performance. It also will enable them to use consistent criteria

to evaluate the performance of others and understand what

areas those individuals need to focus on improving.

EMPLOYEE HIRINGA key leadership role in any culture is that of acquiring the right

talent to fuel the organization’s success. Leaders’ ability to

identify and select the right people ultimately will play a role in

leader performance. We asked Chinese leaders to consider the

people that the organization had hired in the past year and to

evaluate the new hires in a common set of characteristics.

FINDING 8: About three out of ten new hires are not goodhiring decisions.

When asked to rate the overall effectiveness of their new hires,

leaders claimed that 29 percent (almost one third) of their new

hires were not good hiring decisions. HR professionals were

slightly less critical, saying that only about 22 percent were poor

hires. Figure 6 shows leaders’ ratings of new hires in several

competencies. Although leaders are finding a good number of

high-quality hires, many new hires perform poorly and are

unlikely to stay with the organization.

FINDING 9: Nearly half of Chinese leaders have poor or fairinterviewing skills.

The quality of new hires relies in part on a leader’s ability to

conduct a good interview. The selection process may include

other decision points, but the hiring manager is often the last

and most important step. Leaders and HR professionals

closely agree on the percentage of Chinese leaders with good

or excellent interviewing skills (57 percent for leaders; 58

percent for HR professionals). This relatively low proportion of

skilled interviewers supports the corresponding finding of a lack

of high-quality new hires.

FINDING 8About three out of tennew hires are not goodhiring decisions.

FINDING 9Nearly half of Chineseleaders have poor or fairinterviewing skills.

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15

Interviews are the primary source of candidate information, so selection

systems are only as good as the interviewers and the techniques they use.

One of the most effective methods for conducting interviews involves the

collection of complete behavioral data on candidates’ past experiences.

Effective interviewers gather complete and relevant examples of the skills,

knowledge, and motivations that candidates have demonstrated. If leaders

can conduct effective interviews and select the right people, their team

members are more likely to perform effectively.

CONCLUSIONSChinese leadership skills will change in the face of an expandingeconomy—The model of Chinese leadership, in place for many years, has

proven effective for achieving business results. However, with its culture and

business model changing daily, Chinese leaders will need to change the way

they do business too. Even leaders working within national companies will

feel the influences of global competition. The Chinese model of leadership

focuses on building interpersonal bonds, collaboration, teamwork, dignity, and

trust. These same qualities are important for Western leaders, but Western

leaders differentiate themselves from their Chinese counterparts because

they are more inclined to be entrepreneurial and to take risks. Furthermore,

one of the biggest challenges for Chinese leaders will be to better manage

their employees toward high performance, a current area of weakness.

Chinese organizations lack consistent models of leader effectiveness—

HR professionals and leaders concur that they are not entirely sure which

skills are most important for leaders of the future. Because the future is

uncharted, it is difficult to determine the appropriate direction for development,

selection practices, or promotion decisions. Chinese organizations need to

outline their business strategy and goals, and then identify leader

competencies that are in line with implementing their strategy.

Chinese organizations need to strengthen their leader developmentprograms—Nearly half of the HR professionals in our sample believe that

their leaders are not ready for their roles in the new economy. Everyone

seems to be watching anxiously, waiting to see if leaders can rise to the

challenge. Current leadership development programs appear to offer

opportunities but they lack quality. Merely having a development program

in place is not enough. Leaders need to learn real skills through proven

methods that they can immediately apply to achieve business results. Some

organizations are concerned that leaders who have been developed might

leave for other positions. The problem is that if organizations don’t offer

development, their leaders will take their skills and seek development

elsewhere. Leaders in China can sense the enormous opportunities arising

in their country and for that reason will be increasingly likely to take the jobs

that offer the most promise. Chinese organizations need to create

accountability for leader development. Senior leaders seem to care about

leader development, but what are they actually doing about it?

Leaders need help in selecting new employees—Effective leadership

is only part of the equation for success in Chinese organizations. Leaders

need to find and hire the right employees to help implement their plans and

strategies. We found that nearly half of Chinese leaders need to improve

their interviewing skills. Organizations should remember that hiring good

talent is far more than an HR responsibility. HR may set the stage for hiring

processes and outcomes, but leaders often make the final decision when it

comes time to select new hires. Proven methods such as behavioral

interviewing can develop a valid and consistent approach to hiring and

boost leaders’ confidence and effectiveness.

16 Leadership in ChinaLeadership in China

ORGANIZATIONAL

Publicly Traded

48.8% Yes

41.9% No

9.3% Unreported

Presence in the Global Market

16.3% National company—We do not own, operate, or have affiliate offices outside our country.

76.7% Multinational company—We own, operate, or have affiliate offices outside our country.

7.0% Unreported

DEMOGRAPHICSLEADER

Leadership/Management Level

28.2% First-level leader—Supervisor, team leader, foreman, etc.

48.7% Mid-level leader—Leader of first-level leaders (group managers, district managers, etc.)

19.3% Higher-level leader—Leader/Manager of mid-level leaders (director, department head, vice president, etc.)

3.8% Senior-level leader—Executives and those in policy-making positions (CEO,COO, CFO, executive VP, senior VP, plant manager, etc.)

Number of Employees in the Entire Organization

0.0% 1–10

7.0% 11–50

7.0% 51–100

9.3% 101–200

23.3% 201–500

14.0% 501–1,000

20.9% 1,001–5,000

4.7% 5,001–10,000

2.3% 10,001–20,000

2.3% 20,001–50,000

2.3% 50,001 or more

7.0% Unreported

17

AUTHORS AND RESEARCH TEAMPAUL BERNTHAL, Ph.D. is manager of DDI’s Center for Applied Behavioral Research and director of DDI’s HR Benchmark Group. Paul has

conducted audits and evaluations of selection systems in such organizations as Steelcase, Tenet Healthcare Corporation, Bic Corporation, Oracle,

and 7-Eleven. A recognized expert in measurement and evaluation of HR systems, Paul has had his work published in Training & DevelopmentJournal, Group and Organizational Management, USA Today, and U.S. News & World Report.

JASON BONDRA, MBA Candidate, Katz Graduate School of Business at The University of Pittsburgh, is a researcher with DDI’s Center for

Applied Behavioral Research and DDI’s HR Benchmark Group. Jason has managed several international benchmarking studies including

Managing Performance: Building Accountability for Organizational Success; Leadership Forecast: A Benchmarking Study; and SelectionForecast: Recruiting and Hiring Talent.

WEI WANG, Ph.D. Candidate of Workforce Education & Development at The Pennsylvania State University, served as a special consultant

for this study. In addition to numerous publications, she has worked as an HRD and HRM consultant in China.

RONNIE TAN LI TONG, Vice President/Managing Director, Asia. Mr. Tan Li Tong uses his 20-plus years of experience to work with clients in

diverse industries, providing consulting in leadership development, executive assessment, performance-driven management systems, teams,

and companywide change intervention strategies. He is frequently invited to speak at various international events and is regularly quoted by

the Asian media on current trends and issues.

PATTERSON S. (PETE) WEAVER, Senior Vice President and Chief Learning Officer. Pete has more than 25 years’ experience in the research,

design, and delivery of training, selection, assessment, and development systems. He is a key DDI thought leader in management and leadership

development, including the use of high-technology and internet platforms. He speaks frequently at conferences on topics related to leadership

development and the integration of emerging technologies with learning and assessment systems.

TO L

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