We have had a busy year helping our clients identify the talent that will be needed to ensure countries and businesses achieve their ambitions in the next decade. What will be different? What will be the challenges? And what are the opportunities for individuals?

In this newsletter we share the findings of two reports into talent for Saudi Arabia – our thanks to the chief executives and women who shared their insights and views to contribute to this research. We look at the trends for expatriates in the Gulf generally and conferences where Metin Mitchell is speaking, including the roles and relationships of CFOs and CEOs.

mm report ceo final coverWhat makes an outstanding Saudi chief executive?

This research highlighted that future Saudi leaders must be able to communicate their vision clearly through the region’s period of great change, and able to make tough decisions as they drive through new efficient operating models and make necessary cuts. They also need to be able to spot opportunities.

Corporate governance will be the big challenge for chief executives of the future. They will have to understand the regulatory and compliance issues, but also learn skills in how to challenge board members – especially when these are senior family members.
The research found that while much can be learned from Western CEOs, it is important that key elements of national culture are not lost – particularly the genuine care for employees and the long term generational view of business.

Read the full report here.

mm report saudi women final coverKey steps to appointing women in top Saudi roles

Roads to the top for Saudi Women highlights the confidence that Saudi women feel about their working futures and what needs to be done to increase the number of women in the workplace.

While the findings are specific to the Kingdom of Saudi Arabia, the women’s comments will resonate across the Gulf region.

Based on interviews with pioneering women from education, medicine, financial services, philanthropy, e-commerce and the professions, the women share their views on how to encourage the next generation of working women – and the role of government, corporate and women themselves.

Founder Metin Mitchell believes that to increase the number of women working and in more senior roles there need to be flexible working patterns to combine family and work balance: “Work needs to be measured by outcomes rather than hours worked. Women are very good at working remotely and delivering results – they don’t always have to be in an office. A mentor should be appointed to new female recruits and HR and management need to look at how they hire for talent rather than experience.”

Read the full report here and you can also read an interview with Metin on this subject on Dubai Eye here.

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CFO Forum strategies, Dubai 15 – 16 November

Metin Mitchell hosted a panel looking at the future for CFOs in the face of automation. With artificial intelligence already automating much of the accounting function, can CFOs survive?

There was a robust debate with Dr Bernd van Linder, CEO, Commercial Bank of Dubai; Waleed Abu Eleiz, CFO, Alfa International and Adham Gasser, Regional CFO, P&G.

Read Metin’s blog on the CFO Forum Strategies event to see the conclusion!

WIL Economic Forum KSA, Riyadh in March 2018

The forum will bring together 1,000 female and male business leaders and policy-makers to advance women in leadership, with keynote speaker HRH Princess Banderi AR AlFaisal (the date will now be in March 2018).

Metin Mitchell will be chairing a panel on Talent Machine Panel: Bridging the skills gap, nurturing and retaining talent and sharing his own insights from the report and his 20 years of recruiting women in the Kingdom.

Dubai eye1

End of the road for expatriates in the GCC?

When Metin Mitchell wrote his blog, Have we reached the end of the road for expatriates in the GCC? he never imagined the extraordinary response this would generate.  On his LinkedIn profile alone, this had 53k views, 500 shares and 200+ comments.

He was invited to discuss his views with Dubai Eye – listen to the full interview here.

ABC Logo Dubai

 

 

 

American Business Council

Metin Mitchell & Co has joined the American Business Council. Please This email address is being protected from spambots. You need JavaScript enabled to view it. if you are a member and would like to discuss finding talent for your organisation.

From our blog

Subscribe to our blog to read about trends in talent and leadership in our region. Here are a few highlights:

Making sense of the Kingdom of Saudi Arabia

Interview with pioneering Dr Amal Fatani

Interview with bestselling author Dr Taghreed Al-Saraj

Could Saudi achieve more women in senior positions than the rest of the world?

Will a corporate governance framework create a clear path?

 

Published in Leadership
Thursday, 23 November 2017 10:29

Inspiring Saudi women into leadership roles

We have recently launched our report, Roads to the Top for Saudi Women, based on interviews with extraordinary Saudi females.

Here Dr Taghreed Al-Saraj has allowed us to share her fuller interview. A best-selling author, international educational consultant, women leadership coach and international public speaker, her most recent role is Head of eLearning Content Development at Takamol Holding. She is passionate about helping and inspiring women to take on leadership roles in Saudi Arabia and addressing youth unemployment in the Kingdom

Metin Mitchell (MM): What changes are you seeing in Saudi that are helping women into leadership roles?

Dr Taghreed Al-Saraj (TAS):  Women are not treated equally around the world and inequality looks different in different places.  In the West, a big issue is that women are not paid the same.  In Saudi, equal pay is not our challenge but here we need to empower women more.  We are now seeing a lot of rules and regulations, especially with the 2030 vision, brought in order to support women empowerment and that is really helping to bring change.  This is part of encouraging women to enter the workforce and progress into leadership roles.

When people talk about equality for Saudi women, you would sometimes think the rest of the world has solved this and it is only Saudi that is left to tackle this issue….  My big eye-opener was at a graduation ceremony at the University of California, Berkeley. I was part of the faculty so we were sitting behind the guest speaker at the ceremony, who was the CEO of Salesforce.  In his talk, he said he had found his company didn’t pay men and women equally, so he made the finance department go back to the books and managed to change the salaries to be equal between men and women.  I was watching my colleagues’ faces as well as the students’ faces on the other side of the stage, who clearly understood this as a really big issue, and there was a lot of clapping.  I immediately compared this issue with us in Saudi and realized that it is not an issue for us in Saudi.

Each country has different challenges to address and we are now seeing real change in Saudi, supported by the government and society.

MM: Looking back to obstacles you have faced, how have you got round these?

TAS: We moved a lot when I was a child because of my father’s work in the military. I ended up living in Washington DC, Miami, San Francisco, Toulon (France), and in Pakistan… As a child, I was exposed to so many cultures and you are forced when you move around to change your styles and habits if you want to interact with the locals.  Language was an obstacle of course. When I moved to Washington DC as a child coming from Saudi Arabia, I didn’t speak a word of English and stayed silent in school for three months, I just signed and nodded, until I got the words to articulate my thoughts and the message I wanted to convey.  Language and culture are barriers but I think I was fortunate because I was constantly exposed to different cultures and my ears were exposed to different languages at an early stage of my life which made me the person I am today: full of tolerance and acceptance of others as they are.

As an adult, adapting to new surroundings wasn’t quite as easy as when you are a child. When I moved to the UK as an adult, it was a bit hard at first even though the language was not a barrier. I was so used to the American way and constantly comparing the two cultures and way of doing things. For example the flats (apartments) were tiny and double the price in London, while in Miami (Florida) everything was big and spacious. I am not saying one is better than the other. It’s just the constant comparison that I was switching between that was a bit exhausting. It took me a year to adapt and say: this is it! Either get on board or leave….  When you accept that way of life and culture, you will start to open up and love the city for what it is and what it offers you.  Throughout my life, I had many homes around the world where I was connected to new friends and neighbors I made along the way…. it was a fantastic life journey!

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MM: What was your first big accomplishment in your career?

TAS:  The big one was my PhD. In the British educational system you either pass or fail your viva (PhD final verbal exam), whereas in the Saudi system you go in to the viva and already know more or less that you have passed. The British way is very tough and you can actually fail the viva.  My topic was on anxiety so it was very awkward!  After I passed my viva, I went home walking full of joy that this major journey in my life ended and a new one will start. That day was very memorable for me.  It was the start of a new career after all these years of studying.

MM: How did you find the Kingdom when you came back?

TAS: When I came back to Saudi, change was happening so rapidly. I am really happy to see that we are constantly improving for the better.  When living abroad, I always get asked: Saudi isn’t keeping up with the rest of the world. I always say: come on, we’re a very young country.  In my book, The Anxious Language Learner: A Saudi Woman’s story, I mention that Lloyds Bank is older than the Kingdom of Saudi Arabia!  We’re taking it slow, but nonetheless, we are changing for the better each day. 

MM: Your life as an entrepreneur – to what extent has your own support network made it possible, including your family?

TAS: Networking is very important.  Everywhere you go, networking is your easy marketing tool. You must talk to others and that’s how things get started.

My family is supportive. I am fortunate because I have a wonderful husband who listens and says: here’s my two cents, take it or leave it, it’s up to you.  Also, my mum and sister have always been there as a support too – with recommendations.  In a way, my family acts as my confidante. I trust them completely. They help me to see different angles and perspectives of issues that I might have overlooked. Sometimes you need someone to open your eyes to see an issue from a different angle especially when you are in the middle of things.  I take all what they say on board and go somewhere quiet to think things through and come to a decision.

MM: What advice do you think your husband would give to other Saudi men on helping their wives?

TAS: I am sure he would tell them: don’t tell women what to do!  He knows my personality and if I am forced to do something and don’t have the buy-in it is going to be very hard to do. He tells me to think about it and see it through.  If you always had somebody to tell you what to do, you’re not creative in your solutions because you are just following orders.

MM: What are your thoughts on how to keep men engaged and supportive of women as they go through their particular changes?

TAS: In the Kingdom it is not about how to get the men engaged, it is how to get women engaged.  The men are holding the positions and the women are just creeping up the ladder.  Getting the woman engaged so she can come out of the house, get a job and feel she is contributing to the country’s growth, is what this country needs.

MM: Part of Vision 2030 is to increase women in the workforce.  As a coach, what do you work on to help women reach their goals?

TAS: It is confidence. We need to work on women’s confidence because so often I hear women saying things like ‘What value do I bring?’ or ‘I’m not worthy’. That kills me because everybody adds value to everything.  When I read “Lean In” it was strange to see that the Western culture was the same.  I think we should call the book “Squeeze In” because we’ve really got to work on getting women voices heard and not sitting on the sidelines. 

When I am coaching someone, I start with where the lack of confidence has come from and how it is affecting them. If someone feels they don’t have enough knowledge, then maybe they need to go on a course or do more reading so they feel they know enough about the subject to talk confidently.  It could be someone doesn’t like speaking up in meetings, in which case we look at their personality traits and confidence as to why they do what they are doing.

There is always a way to build confidence.  I want women to understand that your voice matters, your opinions count and we would love to hear them. 

MM: If you are addressing women in a speech, what do you want them to take away?

TAS: Never give up!  You never know what will happen if you don’t try. Sometimes you need to take risks.  Fight for what you believe in.  We need women in leadership roles and this means stepping out of our comfort zones. This is the same for women in the West as much as in Saudi.

If at work you need to change something, make a case for it. Don’t just be emotional and say ‘we need to do this or that’, but build a proper case with research, facts and figures. Then present it in a logical way. It is very persuasive and has helped me achieve several changes at work.

I learned from changing from academia to business many things, and that by itself is a big change.  You should have an open mind and keep learning at every stage of your life.  You can learn from anybody, anywhere and on any day. We should never sit back and think you know it all – there is always more to learn.

MM: What is next for you?

TAS: I have been back in Saudi a year and three months.  So far I am producing online courses to help our youth to get jobs and then keep those jobs.  This initiative is funded by the government. We have online courses that address for example time management, leadership skills, team working, management skills – the things that you don’t get taught at school or college but are essential to getting a job.

Helping tackle youth unemployment in Saudi Arabia is one of the biggest challenges for our country and I feel very blessed to play a small part of it in any way I can!

Published in Saudi business leaders
Sunday, 19 November 2017 10:02

Re-shaping CFOs for the age of automation

Could chief financial officers (CFOs) become redundant? That was the question I posed at the CFO Strategies Forum in Dubai last week. And the answer? Well, no-one believes CFOs will be redundant – not yet. But everyone recognises the impact of artificial intelligence on the accounting function and the need for the CFO to develop and change considerably. But how?

I had shared my own thoughts on the impact of automation on the role of the CFO and was keen to hear from those on our panel

Here are the highlights of the discussion, and with thanks to my fellow panellists for a lively discussion!

1.       Change must happen now

Artificial intelligence (AI) and automation systems are already transforming the accounting function – and this will continue at an increasing pace. As Adham Gasser said, “We need to be ahead of the curve.”

2.       CFOs need to become more advisory

Dr van Linder defined the three main roles of the CFO as chief performance manager – driving the business forward and adding value; chief strategiest – assisting the CEO on the strategic view and the critical role of benchmarking; and chief accountant – with technical skills and managing standards. 

He commented that the easiest CFOs to hire are the chief accountants – but it is very rare to find a CFO with all three qualities.  He went on to say, “Artificial intelligence will take over anything that can be automated.  The role of senior executives and the CFOs will be more of strategic advisory, as most of the functions will be automated to the maximum extent. AI will assist to make decisions better so the role of the human will be to make judgments and decision-making.”

Adham Gasser agreed that AI would make it easier for future CFOs to be far more concentrated around advisory/strategic skills, with AI taking over much of the operational side of activities.  He said CFOs will have to ‘remove themselves from Excel and Powerpoint’ - and that 10 years down the road, CFOs will need to think a lot more about strategy.

I was interested in this timescale of ten years – as a headhunter we are already seeing expectations for the CFO to be more strategic.  Within three to five years I think the brief for new recruiting CFOs will look very different.

CFO panel photo 1

3.       The CFO’s role needs to have more power

We had an interesting question from the audience, ‘How can we develop the role and the power of the CFO? How can we bridge the gap between CEOs and CFOs, and CFOs and other departments?’  The delegate gave a context for this question and mentioned seeing power struggles in some organisations, where the CEO inhibited the CFO’s ability to communicate effectively with the board.  He also talked about the challenges CFOs can face when needing to give instructructions to other departments – when they are not always taken seriously because others don’t recognise the CFO’s power.

Dr van Linder was absolutely clear, if the CEO is inhibiting the CFO’s communication with the board, then, “The CEO would not be doing his job in this case”.

Waleed Abu Eleiz talked about the need for a CFO to have good communication skills – so if they are facing resistance then they need to explain the potential implications if they don’t comply. It’s the CFO’s job to make sure they understand and take matters seriously.  He pointed out that often departments and individuals are not aware how their actions will affect the business so this is about communicating a message so people understand and relate to it.

Adham Gasser felt that the right incentives need to be shared across the organisation so people are motivated to take action.

As the delegate asked the question, it reminded me of one of the biggest challenges when recruiting executive roles. It is usually relatively easy to find the technical skills – much harder to find the right mix of strategic and communication skills combined with them. The ability to influence and persuade is often under-rated as a critical leadership ability.

Image from Twitter video

4.       CFOs need to increase data analysis role

As we discussed the role of automation, Adham Gasser emphasised the need for CFOs to increase their data analysis capacity.  He argued, “If you launch a new product and it fails, the easy answer is to say it could be due to unfavorable market conditions. However, you have to analyse a lot of other data to come up with a real answer for this, and make sure to look for any inconsistencies.”

5.       CFOs have to be more holistic

Waleed Abu Eleiz is group CFO but also acting COO so has a dual perspective on the CFO role.  He talked about how as CFO he can look at the brands under Harvey Nichols and it’s a simple, financial decision to remove the ones that are not profitable. However, as a COO, he has to think about the bigger picture and understand the importance of having these brands there, regardless of their financial performance. These brands could be important for their clients and stakeholders and could be used to attract other brands in. Having them in the Harvey Nichols portfolio is strategically important.

This seems to me a good example of how CFOs need to combine their financial head with taking a more holistic view of the business.

Adham Gasser commented that the focus of CFOs needs to shift from short term to long term and to setting the agenda for automated systems that will take care of operations, legal regulations and more. CFOs will act more in oversight to automated systems.

I was delighted to see the recognition from our panel and the audience that the CFO role is changing and will continue to change at pace. We may have different views on the timescale for this, but we all agreed that if CFOs are to be relevant in the future, they need to be leading and managing automation, develop their communication skills and becoming far more strategic.

If they achieve this, there will be roles for CFOs for some time to come.

Published in Leadership

Guest blog by Mr Anees Moumina, CEO, SEDCO Holding Group

I was interested to be interviewed recently to share my thoughts on What makes an Outstanding Saudi Chief Executive.  This is an important subject because if you look at the different areas and objectives that Saudi Vision 2030 is trying to promote, we will need excellent leadership to achieve these ambitions.

It is thought provoking to be asked for your views on subjects like this and I thought I would share my views in addition to my comments that are included in Metin Mitchell & Company’s report on this topic – I have included the questions behind our discussions.

When you think about the old days compared today, then look ahead at the coming years, what are the different skills that Saudi chief executives will need?

This is something I keep reminding myself, that as a CEO I now have to wear two important hats.  One is looking at the market risk factors which have impacted payment collection, due to tightening receivables and credit sales.  You have to put realistic figures to companies, so If you want to grow in a declining market, you can but if the growth is based on credit terms rather than cash then you may be surprised with credit problems after two or three years, and there lies the risk.  The second hat is opportunity. Declining markets are often the best time to look at good deals. You have companies selling, so it could be the best time to buy.  As a CEO you need to balance the opportunity and the market risk, especially when you have the cash and the appetite to invest in a declining market.

What are the different challenges facing a Saudi CEO compared with CEOs in the West?

I see the challenges for a chief executive as the same, wherever they are.  A CEO is a CEO.  A CEO should be trained to weather cycles and to deal with different regulatory environments.  Challenge is an opportunity – that is how I look at it.  In Saudi Arabia, you have regulatory requirements, you have to test the market, have good market knowledge through different organizations – these are the same challenges in the West.  You have to know what to do depending on the market.

What is the best way to train and develop chief executives?

Ex bankers tend to have a faster grasp on a situation because you deal with different organizations.  You look at the credit of a company and what is the critical success factor; you deal with boards, regulators, people with the most sensitive item - which is money.  You need to have a broad vision.  The challenge is when individuals move from a publicly listed company, which has standards, to a family business and that is a different question.  This might be a company which is not internationally regulated and the challenge is risk.   A lot of family businesses have very strong corporate governance – boards, processes, systems, KPIs, compensation procedures. I think one of the best ways to develop chief executives is to ensure they have worked in regulated companies.

Companies have to believe in developing their people.  In a downturn market the first thing we see being cut is training, which is wrong.  You need to spend more on training. We look at the weakness of an individual and then do proper training to address that. Our people have to learn to innovate, to try new things – invest in IT, go into greenfield activities.  We also have to train in risk management.

How are we going to get more Saudi women in the boardroom?

Before we can have more Saudi women in the boardroom, we need more in executive positions. There are Saudi women in the boardroom but these are in family companies and where they are a member of the family. 

Things are changing.  We see progress in institutions and regulators are helping this – there is an abundance of candidates.  When you have a vacancy you see both genders applying and if it is suited to hire a lady, according to the regulations, it is happening more and more.  It is a good thing.

In our group we are in different businesses and have ladies working in different companies – in our hospitality business, our automotive business, our restaurants and in the pharmacy business.  We welcome that.

Saudi Arabia is committed to change – what will be the impact over the next ten years?

Companies have to be dynamic, geared to change and rate of change.  Business models are changing.  There are proposed fees and taxes on hospitality items, restaurants, hotels and on labour, so the private sector has to get more involved and proactive with the economy. That is a challenge. This is where the dynamics of a company come in.  If you want to get more market share you have to have the mentality of ‘let’s do things differently’.

What is your view on tenure of the role of CEO – assuming they are doing a good job?

Assuming they are doing a good job, then look at ways to retain them. Keep them motivated and challenged and compensate them.  I think a minimum of six years as chief executive is needed - usually there is a term of three years, so have another term.

What are the particular challenges for CEOs in Saudi Arabia?

A lot of businesses in Saudi Arabia are family businesses.  They have been started by the first generation and are now moving from second to third.  Saudi Arabia needs to learn from other organizations how to move these vast family companies from one generation to another successfully, it is a corporate governance question.  Without good governance, any problems at family level – such as splits between brothers and sisters – will affect a business model. You learn that from a bank – look at ownership.

The critical issue is to look at how transition is happening. Moving from fathers to sons – that is fine. But moving to the third generation – this is difficult and I worry about these third and fourth generations. 

What advice would you give to chief executives in Saudi Arabia now?

Wear two hats: risk and marketing opportunities.  Balance both.  There are some opportunities in a declining market so take advantage of that.

Published in Chief Executive

I’ve worked in executive search for 20 years, recruiting leaders for Middle East organisations of all types. One of the most interesting countries has been Saudi Arabia, where the types of leaders needed have changed as the Kingdom has grown and diversified.

Now Saudi is at a critical point in its development. There is an ambitious future set out in Vision 2030 to transform the Kingdom. At Metin Mitchell & Company, we have been looking at what skills will Saudi chief executives need over the next 15 years in order to help our clients in their recruitment. These skills are what will ensure the Kingdom achieves its Vision 2030.

To play our part in helping Saudi through this evolution, we have interviewed leading chairmen and chief executives to hear their views and add our own thoughts. We are grateful to these leaders who have given their time and wisdom, which we have incorporated into our research report, What Makes an Outstanding Saudi Chief Executive. Below we look at the key findings – you can download the report for free by clicking here

• Mr Loai Abduljawad, CEO, Emirates NBD KSA
• Dr Badr Al Badr, CEO, Dur Hospitality
• Mr Ihsan Bafakih, CEO, MASIC
• Dr Adel Ezzat, CEO, Saudi Paper Manufacturing Company
• Mr Adel Al-Ghamdi, Group CEO, Abdullatif Alissa Holding Group
• Mr Ibrahim Al Jammaz, CEO, Alamar Foods
• Mr Aiman Al-Masri, President and CEO, MESC Group
• Mr Omar Al-Midani, CEO, Beatona
• Mr Anees Moumina, CEO, SEDCO Holding Group
• Mr Musa’ab Al Muhaidib, CEO, Al Muhaidib Technical Supplies
• Mr Sulaiman Al-Rumaih, Vice President, Power & Industrial Group, Tamimi Group of Companies
• Mr Raeed Al-Tamimi, CEO, The Company for Cooperative Insurance (Tawuniya)
• Mr Fahad Al-Zomaia, CEO, United Matbouli Group
• Mr Khalid Abunayyan, President and CEO, Abunayyan Holding
• Eng Talal Al Maiman, Chairman and Chief Executive Officer, Investments and Developments at Kingdom Holding Group
• Dr Hilal Al Tuwairqi, Chairman, Al Tuwairqi Holding

Our interviewees say future Saudi leaders must be inspirational and able to clearly communicate their vision through a period of great change. But alongside this they must be able to make tough decisions as they drive through new efficient operating models and make the necessary cuts. They also need to have an ability to spot opportunities.

In my view, the biggest challenge is going to be how businesses transform the way they operate. Saudi needs leaders who can make things happen and achieve a new type of employee culture to deliver this.

We asked about the role of women for future success. I was delighted at the unanimous enthusiasm to see more women in senior positions – they are recognised as hard-working and talented and the Kingdom needs their skills. This is certainly reflected in our experience of recruiting – female candidates are generally outstanding. Yes, there are still cultural challenges to achieving more women in leadership positions, but chief executives want to see women promoted within organisations and also welcome the number of women who have studied abroad, who bring wider experiences to the workforce.

Our interviewees agreed that while much can be learned from Western CEOs, it is important that key elements of the Saudi culture are not lost – particularly the genuine care for employees and the long term generational view of business.

It was good that so many recognised the increased importance of corporate governance – I looked at this in my earlier blog, Will corporate governance create a clear path for Saudi Arabia?. There is no doubt corporate governance will be the big challenge for chief executives of the future. They will have to understand the regulatory and compliance issues, but also learn skills in how to challenge board members – especially when these are more senior family members.

Our interviewees had mixed views about how to train chief executives of the future. While international business schools have their place, the general view was that the new generation of Saudi chief executives must work their way across and up a business, so they understand how different disciplines work.

So to sum up the key findings, future chief executives will require a different mind-set from that of the boom years. They need to be cost conscious, look for hidden opportunities and inspire their workforces. But get the leadership skills right and Saudi is a country full of opportunities.

Click here to download a copy of What Makes an Outstanding Saudi Chief Executive. I would welcome other views and am happy to discuss this research in more detail and look at its implications for your own organisation.

Published in Saudi business leaders
Monday, 09 January 2017 15:24

How do leaders ‘make things happen’?

I have spent the last few months interviewing Saudi leaders to gather views on What makes an Outstanding Saudi Chief Executive? (The report is coming out this Monday).

 

There were two things that stood out for me in this report. The over-riding theme was that outstanding CEOs need to be inspirational – in terms of vision and inspiring the workforce – and able to take the tough decisions, especially as Saudi faces changing economic times.

 

But having recruited for the Kingdom over 20 years, I would also put the ability to make things happen as a top skill.

 

How do we recognise people with the ability to do this?

 

JD Meier, the best-selling author of Getting Results the Agile Way, says “Strong leaders are able to translate strategy and ideas into execution. Leaders that make things happen and have a strong ‘ability to execute’ attract and retain raving fans and helpful followers.”

 

He adds: “One category of leadership skills is ‘leading Implementation’, and it includes the following leadership skills: coaching and mentoring, customer focus, delegation, effectiveness, monitoring performance, planning and organizing, and thoroughness.”

 

I think the key in this is how you turn a strategy into action.

 

Richard Coates of strategy consultants, Whitecap Consulting, and author of How to create and deliver an agile strategy, says: “There are two big issues around strategy.  One is that businesses spend days or even months agreeing their strategy and writing up a plan – but it doesn’t get put into action effectively.  The other is the speed of change in business today – long term strategic goals need to be balanced with short term agility of decision making and implementation.”

 

So what are the critical ingredients for making things happen?

1. Get your team on board

Years ago, the CEO of a major bank told me that he had once recruited an FD who was excellent, but he didn’t really warm to him. He didn’t think that mattered. But as he said: “What I hadn’t thought through was, if I didn’t like him, probably others wouldn’t. What happened was people in the business avoided talking to him and, importantly, sharing risks or issues. We had to get rid of him – it is high risk if your teams don’t trust or can’t talk to a senior person.”

 

If you want to make things happen, you need your chief executive to get agreement from their team and agree a clear plan with timescales.

2. Talk action early

A key skill for leaders is to talk ‘action language’. Examples would be to ask action questions such as ‘how will we make this happen?’ and ‘what could get in the way?’. Also to look at areas such as ‘how do we make sure we keep pace on this, after the first month?’.

 

The leader then needs to ensure everyone is absolutely clear as to what they can expect of one another.

3. Get started

It sounds obvious but I am sure we have all come across managers who spend weeks, if not months, stuck in their office planning a new initiative. For some people there is comfort in the talking and planning and a fear of actually putting the plan into action. The question ‘will it work?’ hangs over them and stops them getting going.

 

Great leaders give their teams confidence and help them take the first steps. Often it is good to break this down into small stages so a major initiative feels achievable to everyone.

4. Creating immediacy

Creating a sense of urgency can be challenging within some cultures.

 

To overcome this, leaders can help by asking questions such as ‘what will happen if we don’t do this?’ – and that could be tied to a timescale – or ‘what happens if we don’t do this?’ and paint a picture that affects the individuals personally if the plan is not implemented.

5. Clear communication

The leaders I interviewed stressed the importance of outstanding chief executives being good communicators – and that is a critical element of making things happen. First to ensure the plan is clear, as we cover above, but then to ensure everyone in the organisation understands what they have to do to achieve it.

 

Of course as a recruiter, our skill is in being able to test and interview candidates to check out how good a leader is at making things happen – among all the other outstanding leadership attributes needed.

 

But it would be good to hear what traits you think ensure a leader can make things happen and a strategy is implemented effectively?

Published in Leadership
Tuesday, 13 December 2016 16:19

Are Saudi leaders born or made?

I mentioned in an earlier blog that I have had the privilege of interviewing a number of Saudi chief executives to ask for their views on ‘What makes an outstanding Saudi chief executive?

One of the questions we discussed was how best to groom the next generation of Saudi leaders. A large percentage of today’s Saudi chief executives are of course in family businesses and that also raises the time-old question of – are leaders born or made?

If you Google this phrase, are leaders born or made, it produces six million results! It is an issue that leaders often struggle with in terms of how much can you develop someone to become a leader and to what extent do they need to have natural leadership qualities?

An article on the Forbes site says that leaders are both born and made: “It turns out that both camps are right. Researchers have found that leaders come by their talents partly through genetics but mostly through hard work and persistence. In fact, one study from The Leadership Quarterly on heritability (that is, the innate skills you bring to the table) and human development (what you learn along the way) estimated that leadership is 24 per cent genetic and 76 per cent learned.”

What did the leaders who I interviewed think – and what did they think are the best ways to develop future leaders? We will be sharing this information in our report, out shortly, but here are some of the highlights from our discussions.

1. Education is an essential for future leaders

The general view was that the next generation of Saudi CEOs need to have a strong basic education, but they also need a breadth of experience from working in different areas of a business.

Many interviewees are excited at how this education is now extending beyond that of America and Europe, recognising the Far East will bring new thinking around business models, marketing strategies and operations.

There is a real desire for the Kingdom to do more in the way of business school education to help leaders – and perhaps to do more to adapt this to the needs of the country.

2. On the job learning

Several of those interviewed mentioned how they had worked in most departments of their family business to gain grass roots understanding of each area and how they fitted together. This was generally seen as essential for future chief executives - they need to work their way up.

Inevitably there were differing views about which skills and experience actually have the most value for the final chief executive role – should they have held the chief financial officer role, be very good at strategy or be highly skilled in business development?

As a recruiter, I know that good chief executives can come from all disciplines but a good head for finances is essential and also the ability to get things done – I emphasised this in a recent article on creating Saudi leaders; there is a particular need in the Kingdom for chief executives who can make things happen. I don’t think there is any particular discipline that will produce this ability.

There was considerable discussion around how ethics and governance are becoming increasingly important. There is an issue in terms of education – are business schools up to speed – but also our interviewees felt there is a need for a formal plan to develop these skills while working.

3. Mentoring and coaching

Mentoring and coaching is still a relatively new concept in business. Good leaders have always coached and developed those around them, but businesses are increasingly putting formal plans in place to ensure this is done thoroughly – and to teach people how to coach their junior members.

Coaching was often raised by those I interviewed and a few referred to having hired professional coaches for themselves – this was definitely seen as a good thing.   Many referred to the loneliness of being a chief executive and having a coach can help to keep a perspective on the job.

So to sum up, today’s leaders all recognised the challenges facing the Kingdom as it aims to achieve Saudi Vision 2030 and the importance of having outstanding chief executives. Will these leaders of the future be born or made – everyone agreed they need to be made. This will be done through a mix of education, learning on the job, being coached by current leaders and also bringing increased expertise in new areas such as governance.

The verdict from these interviews was that leaders are most definitely made.

Published in Chief Executive

I came across a thought-provoking blog on the future of Saudi leadership by Professor William Scott-Jackson, chairman of Oxford Consulting Group last week.

In it he argues that Saudi will need 1.9m leaders to achieve Saudi Vision 2030. With a population of around 15m employable Saudis, this will be a challenge in terms of pure numbers, let alone skills.

leaders for KSA

I have spent the last few months interviewing a number of Saudi chief executives and chairmen to gather views on what makes an outstanding Saudi chief executive – in particular the skills that will be needed to take the Kingdom through a period of great change over the next 15 years and how you develop these skills. This is very relevant to how the Kingdom develops these 1.9m leaders for the future.

We will be publishing this report early in 2017, but here I want to share insights from our conversations and add to – and challenge – some of Professor Scott-Jackson’s comments.

Professor Scott-Jackson says: “The most important capability for achieving Saudi Vision 2030 is leadership, which has a fundamental impact on every aspect of organisational and national success – and indeed the well-being, happiness and productivity of all people.”

And this view was shared by all the leaders I interviewed. However, while I agree leadership skills are critical, I think it is easy to overlook the importance of being able to ‘manage’ and get things done. I would place as much importance on this as ‘leadership’.

It is easy to under-estimate the skills needed for different cultures. I think what will differentiate Saudi businesses will be those with chief executives who have an ability to get things done. Of course, leadership plays its part in that but in doing that, we should not overlook management ability when recruiting and developing future leaders.

In a study by Caliper into the most important and difficult aspects of leadership, 300 presidents and CEOs shared their thoughts on aspects of leadership. They were asked to rank various tasks: creating the right vision, getting people to embrace the vision, maintaining momentum (motivating, influencing and persuading), managing change (strategic planning, problem solving), surrounding yourself with the right people, developing staff (coaching, managing performance, transforming teams), and delegating.

Nowhere in here does it refer to ‘gettting things done’.   You could argue that if you surround yourself with the right people and are good at problem solving and delegating , then this will ensure that things are done. But I think there is another layer of skill needed in here that is specific to getting the best from the Saudi culture.

Saudi leaders need to understand how their business works, particularly the profit drivers and have a particular skill in helping their teams to unblock problems. Aspects of the Kingdom’s culture can make this challenging – especially family dynamics and respect for elders.

There is a lot in the Professor’s article that I like and agree with.

He asks how can Saudi build leadership skills fast – and looks at some specific advantages of the Kingdom. This was something we were keen to do in our interviews – ask leaders to share what is good about Saudi leadership that should be retained as the Kingdom goes through change. There is often a tendency to think the West has all the answers and put the wrong values and priorities on to another culture.

Professor Scott-Jackson says: “There are two exemplary situations in which young males and females are often fast-tracked [in Saudi] and often do a great job.  The first is the royal family itself and the second is the family firms where young successors are trained from birth in the obligations and skills needed to lead. In addition, Saudi (and the Gulf in general) has a unique leadership style which, in many ways, has advantages over the best practice western style taught on courses today.”

In his analysis of Saudi Leadership style (see the table below), he highlights potential weaknesses as ‘task and project deadline management’ and ‘tough decisions and difficult conversations’.

the saudi leadership style

The first, project deadline management, comes back to the point about making things happen – and is one of the most critical skills to ensure success in the Kingdom. The second point – taking tough decisions and having difficult conversations – was discussed by nearly all the leaders I interviewed. In a period of change, a good leader may have to ask loyal and hard-working people to leave, because they do not have the right skills for the job to be done. This is not easy for any leader but it is a question of ensuring the right people are doing the right jobs and that the organisation is ‘fit for purpose’.

How else do leaders need to be developed? The Professor says everyone needs a qualification such as from the Chartered Management Institute and to start leading young. While our interviewees rated qualifications, several were keen to bring ideas and different approaches to the country such as from China, Korea and Malaysia. One leader commented on the Chinese being great risk-takers and focusing on volume and mass markets – where the West tends to lean more to niche markets. They felt a mix of thinking will best benefit the Kingdom.

Many of our leaders also talked about learning the basics in their family businesses from a young age and working their way up. They felt it stood them in great stead – but they talked more about doing and learning than leading when they were young.

Developing Saudi leaders of the future is a big topic and I plan to expand on many of the ideas from our leaders along with our own thoughts in future blogs. I would welcome other ideas and experiences on this important topic.

Published in Leadership

I have been honoured to interview a number of Saudi CEOs recently to hear their views on the skills needed to achieve Vision 2030. This is for a report we are producing, What makes an Outstanding Saudi chief executive? (You can read my views on the skills that Saudi chief executives will need in this blog)

One of the themes to emerge is the need for a corporate governance framework in the Kingdom. As one CEO said, “We need to have a conducive atmosphere for leadership to flourish, but under a robust corporate governance framework. Corporate governance starts at the top. Audit needs to be independent.”

Corporate governance is still a relatively new concept across the world. I was interested to read Lubna Qassim’s blog (she is on the leadership team and general counsel at Emirates NBD) where she cites the Cadbury report in 1992 as the start of governance in the UK.

What the Cadbury Report did was to introduce the concept of independence. And it is clear that if the Kingdom of Saudi Arabia is to become more open to the world, it will need its own corporate governance framework.  

Saudi Arabia has been pursuing corporate governance reforms, with the Capital Market Authority (CMA) in 2003 and the publication of the Saudi Corporate Governance Code (SCGC) in 2006. In the Saudi Organization for Certified Public Accountants (SOCPA), the accounting standards committee holds the responsibility of developing and reviewing accounting and auditing standards in the country. All of these will play a part in developing Saudi Arabia’s own corporate governance code.

The central components of the voluntary Cadbury Code, are

  • a clear division of responsibilities at the top, primarily that the position of chairman of the board be separated from the chief executive, or that there be a strong independent element on the board
  • the majority of the board to consist of outside directors
  • remuneration committees for board members to have a majority of non-executive directors
  • the board to appoint an audit committee including at least three non-executive directors

So what do I think would be the key ingredients of corporate governance for Saudi Arabia and the challenges and opportunities of this?

1. Independent board members

Saudi Arabia’s businesses are no different from the way American, British and others have been run – and still are in many cases. Before codes of conduct were introduced, the tendency was to recruit family members to the board and appoint ‘people we know’. The phrases ‘old boys’ club’ and ‘old boys’ network’ came from the very normal practice of appointing people you were at school with or were in the same men’s club

old boys    

The Cadbury code is voluntary and it has taken years to achieve the shift in culture to recruit independently – some would say this still has a way to go in the West, especially around finding and recruiting women.

This will be one of the biggest challenges for the Kingdom; to open up family businesses to outsiders.

2. Clear division of responsibilities at the top

Separating out the role of chairman and chief executive has been well established in the Kingdom for some years. While this should be included in any governance code, the practice of executive chairmen in Saudi is not widespread and will be less of a challenge to achieve.

The issue that will need addressing is that, while there may be a distinction between chairman and chief executive in terms of titles, many chairmen act like the chief executive, essentially making the role of the CEO more that of a chief operating officer.

3. Audit committee with three independent non-executive directors

Having an audit committee with independent non-execs will be more of a challenge to achieve in Saudi Arabia. An independent audit committee requires a confident chief executive to accept, and also manage, strong external views.

A report by Independent Business Research on Corporate Governance and Auditor Independence in Saudi Arabia: Literature Review and Proposed Conceptual Framework looks at the emerging role of the auditing profession and the role of audit generally. They say

this end

Vision 2030 has set out a clear direction for the future of Saudi Arabia – should a corporate governance be part of this to ensure a robust and sustainable business community in the Kingdom?

Published in Leadership

Last month I wrote a blog on Will Saudi’s chairmen of 2030 need to look different from today? I have had a number of comments and discussions on this, both when I have been in the Kingdom and also online - and one comment in particular got me thinking.

 

Mohammed Abdul Gaffar of KFB Holding Group said “It is not just the chairmen who need to look at business differently from today” – and of course he is absolutely right. He continued: “The idea of Vision 2030 has to be trickled down to each and every individual in an organization. Proper communication of the Vision 2030 to everyone and encouraging participation from all groups is paramount to achieving success. Just my 2 cents.”

 

Well they are a good two cents and lead nicely into what I have been thinking about concerning the skills that will be needed for chief executives to achieve Saudi Vision 2030.

 

What will be the biggest challenges for Saudi chief executives?

In my view the toughest challenges for chief executives will be how they cut costs without harming businesses.

 

Just last week, Reuters reported that “Saudi Arabia will cut ministers' salaries by 20 percent and scale back financial perks for public sector employees”

 

Inevitably oil prices are having an impact in the Kingdom and the ability to make these tough decisions wisely will be critical for the long term success of both companies and the country.

 

But the biggest challenge is achieving operational efficiency through cuts – and also knowing when to keep innovating and investing. Great leadership is about achieving this balance and also bringing employees with you so they can see the better future in return for a more difficult time now.

Building a pipeline of skills

You might say that anyone can cut costs. The harder task is to manage through a recession and still build the skills needed for growth.

 

To do this, salaries are going to have to be more aligned to performance and – another tough decision – not reward people who have not performed. That is going to take a big culture change in many organisations, but bonuses have to be earned.

Connectivity with employees

In the next few years, chief executives are going to have to ask their employees to work longer hours and find new ways of doing things to be more efficient. Leaders need to create a team spirit of everyone pulling together and getting people to rotate around departments to learn these wider skills.

 

This is where Mohammed Abdul Gaffar’s comment is so important – leadership that will bring a future vision alive and encourage every employee to participate fully in the company.

We must not lose the existing outstanding qualities of Saudi chief executives

Whenever we look at change and new futures, there is always a danger of forgetting to identify and keep what is outstanding about the present.

 

In the case of the Kingdom, many Saudi chief executives are extremely compassionate towards their employees and often look after them secretly to ensure they are supported and they do the right thing.

 

There is also another very special attribute in Saudi leaders which the West would do well to learn from – they think about and plan for the longer term, looking 10, 20, 30 years ahead or even generations.

FT article on Paul Polman

I loved an article in the FT this weekend. When Paul Polman became chief executive of Unilever in 2009, the FT article says “He immediately said that he only wanted investors who shared his view that Unilever needed to shepherd the Earth’s future as carefully as it did its own revenues and profits. As one of his first acts, he announced that the company would no longer publish quarterly profit updates, as they encouraged short-term thinking. Simon Zadek, a long-time British sustainability campaigner….[said this was] more than just tinkering or public relations, it was a new business model.”

 

Well the Middle East is way ahead in this respect. Muslim teaching is that every individual must protect the Earth’s future and Saudi leaders take this long term vision and planning very seriously. It is not just talk but a daily reality.

 

If the Kingdom of Saudi Arabia is to create more businesses that are globally competitive, its leaders will have to balance retaining the best parts of their culture with the need for tough decisions and still investing for the future. There is a clear strategy to do this – we just need to find the leaders who can achieve this.

Published in Chief Executive

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