2024 Global Conference Overview, APAC Region, September 10

Asia on the Cusp of a New Era

Jeongmin Seong, Partner, McKinsey Global Institute

Seong presented the five critical dimensions driving the new era: World Order, Technology, Demographic Shifts, Resources & Energy, and Capitalization; the five distinct regions within Asia, and how they contribute to the continent's overall ascent.

KEY TAKEAWAYS

• 2022 GDP rankings: China (18 $trillion) ranks 2nd, Japan (4.2 $trillion) ranks 3rd, and the U.S. (25.2 $trillion) ranks 1st
• Mainland China supplies 33% of world exports / Other Asian economies lead in specific areas – chips, consumer, phones. Europe and the U.S. are mainly importers.
• Asia is the world’s hub for technology manufacturing.
• Asia is no longer a rule taker but a rule shaker.
• The new McKinsey report can be found here.

Doing Business In and With China

Panel Discussion

Panelists explored the challenges and opportunities of doing business in China, the categories of clients that create the most opportunity, and the growth of the retained executive search and leadership consulting business in China.

Panelists: Simon Wan, Chief Executive, President of Cornerstone International Group, China; Grace Cheng, Non-Executive Chairman of Greater China, Russell Reynolds; Louisa Wong, Executive Chairperson, Global Sage, Hong Kong; and moderator Karen Greenbaum, CEO of AESC.

KEY TAKEAWAYS

• The major markets – Beijing, Shanghai, Shenzhen, and Hong Kong – have important differences in terms of industry sectors and growth opportunities. Beijing centers around state-owned enterprises. Shanghai is the financial capital of China and has more international business. Shenzen is the tech hub focused on start-ups and tech giants. Hong Kong is a global financial center and has long been the gateway for multinational companies into China and the broader APAC.
• It is estimated that there are 70,000 search firms in China and the market is strongly contingent, but with a solid core of respected firms focused on retained executive search.
• China has become more self-sufficient but continues to have strong business with the UAE, Germany, UK, Europe, Latin America, and more.
• Board governance is becoming more rigorous and includes independent directors and a growing number of women directors.
• Leadership consulting services are strong in China with a particular focus on leadership development and coaching.
• China is the fourth largest market for AESC members in the APAC region.

Leadership in APAC: Cultivating Visionary Leadership in a Diverse Region

Panel Discussion

Panelists shared unique insights on leadership in APAC today, addressing leadership for digital transformation; integrating sustainability into operational decision-making; inclusion for future-ready companies; talent management across diverse cultures; and DEI strategies for culture transformation.

Panelists: Shoon Lim, Global Head of the DE&I Capability at Russell Reynolds Associates; Esther An, Chief Sustainability Officer, City Developments Limited (CDL); Verena Siow, President and Managing Director, Southeast Asia, SAP; Dylan Choong, Head of People, AMEA, Opella (Consumer Healthcare Unit of Sanofi); and Carolyn Chin-Parry, Digital Innovation Leader, PwC.

KEY TAKEAWAYS

• 60% of the world is in APAC – this means there is potential for 2 out of 3 leaders across the globe to originate from APAC.
• APAC holds diverse nationalities, and this requires a new style of leadership.
• Questions arise regarding talent in APAC: are we strategic enough, do we speak up, do we connect well, is APAC talent hungry? Opportunities are growing in APAC and skills need to grow with this.
• There is a new currency of skill sets in leadership – from a balcony view, how do we shape the narrative?
• • Leadership inspires followers, beyond just holding a title.
  • Servant leadership listens, coaches, and is authentic.
  • Effective leaders influence teams and boards, and adapt with agility.
  • Visionary leaders foster growth, resilience, and emotional intelligence.
• There is a dramatic increase in green jobs with an increased focus on planet, people, and profit.
• Diversity in Board and C-Suite leaders ensures agility, navigating challenges of today, and talent retention. Diversity includes generations, mindset, nationality, gender, age, skill set, culture, and diversity across sectors.
• Search professionals ensure a diverse talent pipeline and present diverse candidates whether a client requests it or not.

Navigating the Labyrinth: Mastering Background Checks in APAC

Julie Yoon, Managing Director & Head of Southeast Asia, Mintz Group

Background checks for executive selection can be especially challenging for firms unprepared to navigate the twists and turns of the APAC region. Yoon presented strategies to navigate privacy laws, limited records availability, varying legal frameworks, and real-world examples and red flags.

KEY TAKEAWAYS

• Search firms are moving toward a combination of internal and external resources for their background screening.
• Fewer searches are sidetracked or upended by serious red flags. This shift could reflect changes in the talent market or the effectiveness of in-house screening in eliminating potentially problematic candidates early in the process.
• The use of AI-powered tools is expected to increase somewhat in due diligence but has significant limitations - AI findings need to be verified by humans, but use cases for using AI-powered tools in background screening exist.
• Red flags: degree discrepancy, offensive social media, missing jobs, workplace misconduct, criminal or financial troubles, undisclosed company affiliations.
• Current trends: Compliant and ethical process protects search firms and their clients, increasingly global talent pool, Importance of social media and responsible use of AI, clients less tolerant of controversies and expect enhanced due diligence.

India's Economic Boom: Seizing Opportunities in Executive Search and Leadership Consulting

Panel Discussion

Panelists explored the opportunities driven by favorable demographics, a thriving start-up ecosystem, rapid digitalization, and how these factors impact the demand for talent. They shared strategies for navigating the challenges of the Indian market, including cultural differences and regulatory complexities.

Panelists: K Sudarshan, Managing Director, EMA Partners India; Roshini Bakshi, Managing Director, Everstone Capital; Jaideep Bajaj, Partner, Heidrick & Struggles; and moderator Karen Greenbaum, AESC CEO.

KEY TAKEAWAYS

• Investment in India is high, with more of the population moving to middle class, resulting in high demand for FMCG, quality healthcare as consumption drives expansion.
• Growth of organizations has accelerated at a global scale, creating a challenge for talent at this level in the country.
• Keep an eye on 2nd & 3rd tier cities in the next 5 years: Hyderabad, Pune, Chennai, Jaipur, Ahmedabad, and Coimbatore. Infrastructure investment is happening, but finding talent to come to these areas is hard.
• Unique Opportunities in India for Search: larger business centers; business is mature.
• Corporate governance in India is developing as the country scales up.
• Diversity in India is primarily focused on gender. Representation of women is growing in middle management, and while Boards have rules for diversity, they may not yet fully embrace DEI.
• Why be optimistic?
• • Growing economy, buoyant, opportunity
  • Investment, stock market strong
  • Spirit of entrepreneurship
  • Politically insulated, stable and neutral
• India is the second largest market for AESC members in the APAC region.

Cross-Cultural Leadership: Navigating Diverse Markets with Data-Driven Insights

Anne-Marie Paiement, Hogan Assessments

Paiement presented startling research to challenge conventional wisdom about leadership styles across cultures, including personality data from over 180 global markets. Insights included an exploration of leadership and communication styles in different markets, and how to use personality data to improve cross-cultural leadership effectiveness.

KEY TAKEAWAYS

• Personality Data - Debunking Leadership Stereotypes East Vs West.
• • X - Eastern Leaders Avoid Confrontation, Western Leaders Embrace It.
  • X - Eastern Leaders Are Always Humble, Western Leaders Are More Assertive.
  • X - Eastern Leadership is Always Authoritarian, While Western Leadership is Democratic.
  • X - Western Leaders Delegate More, Eastern Leaders Micromanage.
• “East” vs “West” is an oversimplification of the diverse leadership behaviors and styles we observe across the world.
• Personality data from emerging leaders shows us the preferred leadership styles and expectations across cultures and helps challenge stereotypes.
• By integrating insights from valid personality assessments, you can improve candidate selection, placement, and development.

AI Revolution in Executive Search: Navigating the Future

John Collins, Deep Vertical AI

Drawing from his extensive background in mathematics, machine learning, deep learning, and natural language processing, Collins provided a comprehensive and startling view of the current state of AI and its projected evolution over the next 4-5 years, with a specific focus on its impact on executive search and leadership consulting.

KEY TAKEAWAYS

• In 2-4 years, the profession will see:
• • Most firms using AI for nearly every interaction, and AI will take over routine tasks.
  • System-to-system communication between search firms and clients with AI-powered insights available instantaneously to consultants.
  • AI-enhanced candidate matching – simultaneously evaluating thousands of candidates against multidimensional criteria.
  • Predictive succession planning
• Emergence of new roles: AI is generating entirely new position concepts: Chief AI officer, AI-Human Collaboration Specialist.
• Steps to take now include leveraging:
• • Massive context LLMs.
  • AI driven workflow automation.
  • AI-Augmented decision making.

Executive Search and Leadership Consulting Profession in APAC

Karen Greenbaum, AESC

AESC CEO Karen Greenbaum presented APAC-specific findings from AESC’s exclusive Member Outlook Survey, including trends in the profession such as the use of AI, shifting business models, and what clients in APAC are asking of their service providers.

KEY TAKEAWAYS

• In the AESC Member Outlook Survey, India reports strong growth in Executive Search.
• Also, Board Advisory Services are strong, especially in Australia and Japan.
• Most conference participants see improvement in financial performance compared to 2023.
• Attendees report clients talking about attracting top talent, hiring change leaders, developing the next-gen leaders, and leadership development in their top four list. But AI, cybersecurity, DEI, succession planning and the need for new roles are tied for fifth place.
• The Member Outlook Survey ranks "hiring leaders who can drive change" and attracting top talent as the top two leadership issues on the minds of clients. Developing the next generation of leaders was in the top 3 for India, China, and Japan.
• Attendees identified so many opportunities for their growth – trusted advisor relationships, the need for diverse talent, artificial intelligence and, in general, executive search. These were followed by the need for leadership development and the need for change leaders.
• The Member Outlook Survey had AI as #1 for greatest growth opportunities. India members highlighted Executive Search as #1, Southeast Asia highlighted Executive Search and also Leadership Advisory Services in their top 5 list.
• When it comes to increasing operational efficiency, the outlook survey participants highlighted strengthening client relationships as the clear #1 priority. Attendees at the conference identified the use of AI as #1.
• For AESC members: Read AESC's 2024 Member Outlook Survey.

Award of Excellence

Over the last few years, Yanqing Sui and Terry Thornley have been integral in charting AESC’s approach to helping members comply with China’s data protection laws, reinforcing their commitment to AESC’s highest professional standards. Their collaborative partnership with AESC led to the creation of the AESC Guidance on Chinese Personal Information Protection Law—a vital document that serves as a foundation for understanding and complying with China's complex data protection laws within the executive search industry.

AESC Commitment to the Community Award.

Louisa Wong has demonstrated both her excellence in our profession and her strong commitment to community service toward charitable causes. In response to the devastating Sichuan earthquake in 2008, Louisa established Giving Hand, a non-profit organization that facilitates the donations of major international corporations and retailers, by helping them "donate" their unsold goods to people in need through charitable organizations in Greater China.

AESC IDEA Award

Over his career in executive search and leadership consulting, David Evans has remained steadfast in his dedication to the principles of IDEA. David has developed and released the annual Watermark Search International Board Diversity Index, which has been published for ten years.