Building Foundations for Talent Development

23/04/2014
Developing local talent is a key priority for many Western multinationals expanding in Asia. Yet, few companies actually succeed in this regard. Holly Ott explains the importance of setting the foundations for developing local talent into leaders.

Infineon Technologies, a German semiconductor manufacturer and the world’s second largest chip supplier to the automotive industry, has become a model for successful expansion for high-tech companies in Asia. Today, two-thirds of its board members are developed out of Asia, and its regional management is 87% Asian.

This promotion of Asian leaders came against the odds. “Careers in a technology company are built on functional capability,” said Andrew Chong, President of Infineon Asia Pacific, “in other industries you can come in with an MBA and perform, but not in ours.” This reliance on leaders with an industry background means technology companies are limited to talent from a smaller pool of technical engineers, which creates its own set of challenges.

A 2011 survey by the Singapore Semiconductor Industry Association found over 70% of companies encounter difficulties in training engineers in communication and negotiation. In the high-tech sector, engineers often come to Singapore from different parts of Asia. Organisations must successfully integrate them to work together in teams, bringing together diverse cultural perspectives, expectations and managerial styles. Communication skills that are effective across cultures are vital to the smooth leadership and operations of regional and global teams.

In 2004, Infineon’s wireless division decided to start the transfer of the global volume and product planning functions from Munich to Singapore, bringing these supply chain functions closer to the production sites and growing customer base in Asia.

The company’s experiences during this process highlighted the importance of building of the right foundations to develop local leaders. Commitment is essential, from both the headquarters and the local teams, but Infineon also found that much of the responsibility for building a sound foundation rested with local staff. Infineon’s story offers local leaders in Asia three action-oriented insights on getting off to the right start.

1. Become a Partner

Infineon employees at all levels, in both Germany and Singapore, reiterated the importance of becoming a true partner in the company through building trust and a broad company network. Infineon’s veteran local employees in Singapore talked about being patient, sometimes for years, to allow their German managers at headquarters to gain confidence in their abilities and commitment to the organisation. When the master data team, which handles critical business data used across multiple systems, applications and processes in Infineon, was moved from Germany to Singapore, the team in Singapore volunteered to shift their working hours until 9pm (Singapore time) to stay available for their Munich colleagues for the first three years.

If you are a local employee eager to display your capabilities to the headquarters, remember that you must become a trusted partner. If you want HQ to make a long-term investment in your development, first be prepared to display a long-term commitment to your company.

...the team in Singapore volunteered to shift their working hours until 9pm (Singapore time) to stay available for their Munich colleagues for the first three years.

2. Show Capability in Crises

Crises can be a ‘fast track’ to proving the capability of local talent. When the 2011 tsunami struck Japan, Ng How Cheen had been in his role as a senior manager for less than a month. The disruption caused by the tsunami required quick action and firm leadership to ensure Infineon secured alternative production sites. Singapore’s proximity to Japan meant that the local team could react much more quickly than Germany.

Responsibility therefore fell on the Singapore team, giving them heightened visibility during the crisis. Ng handled the situation successfully, and he proved himself in a very short time. Today, he is Senior Manager, APAC Programme Office, with responsibility for optimising financial and operational performance in Asia Pacific. Ng also assists the APAC Management Board on risk management, Singapore government relations and organising regional management board meetings.

If you are a local talent looking for opportunities, see crises as such. Emergency situations can be an opportunity for taking responsibility. Step out of your comfort zone and prove your capabilities – and you may just step up to a bigger role.

3. Empathise with Headquarters

When the shift of global planning functions from Munich to Singapore first began for Infineon’s wireless division, staff in Munich grappled with concerns about effective management in a globally split organisation. A senior director in the Singapore logistics team described the situation back then: “This was the first time a ‘global’ role had come to the region. There was duplication of work and confusion on who should be responsible for customers.”

Ultimately, however, the concerns in Munich were of something deeper: fear of losing functional capabilities and of losing responsibility. If you are in a local team facing tension with counterparts back in headquarters, recognise and empathise with the human emotions involved. Empathise with your colleagues. At the same time, seek clarity from the top.

In Infineon’s case in 2004, top management in Germany provided a sound business case and concrete business targets for the new group in Singapore. Critically, they also painted a clear vision of how the transfer of tasks and responsibilities would happen.

Right Foundations

Formal leadership development initiatives are important and Infineon has since developed leadership programmes that focus on management and technical career paths in Asia. Its Global Leadership Programme, targeting Infineon leaders worldwide and covering all functions, was developed in Asia and was rolled out in 2011. However, leadership development truly succeeds on the right foundations: the people on the ground. Local talent in Asia can help develop their careers by developing as partners, demonstrating capability in crises and showing empathy.

 

This article was first published in the print version of HQ Asia, Issue 7.

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