Readers of this column will no doubt be familiar with the Thailand 4.0 initiative and its focus on the areas of technological disruption and the need for capability building in Thailand. Other markets in Asia and the world are also facing similar challenges brought on by what's termed the fourth Industrial Revolution or "Industry 4.0." These terms may not yet have entered your business conversations but no doubt the concepts have.
In 2018 it’s hard to imagine any business leader worth their salt who is not thinking hard about how they are going to compete in a world where technological disruption is permeating everything. Marketers now need to understand and utilize big data, customer teams must effectively manage their social media presence, and logistics professionals now have to play with parameters in complex shipping algorithms so that the pair of socks you ordered online is sure to arrive at your house in a maximally efficient way.
If you don't feel like your company is doing half the things they should to manage disruption you're not alone. A recent Heidrick & Struggles Asia Pacific study found that 56% of organisations do not believe their company is well prepared to face marketplace disruptions and 80% believe they will face more disruptive pressure than 18 months ago. Indeed, many established organisations know for certain that to compete in this unfamiliar environment they must transform. Yet, they're not sure where to start, what their goals should be, how to get there, or even how to begin to answer any of these questions in the first place.
Faced with uncertainty it may be tempting to bring in a consultant and rush headlong into the most obviously needed transformation project. That might work, but it can only be a one-time, short-term fix to a larger challenge and (don't tell your million-dollar consultant I said this) but the project could be a fail. A more long-term solution is for companies to work on building talent that is already conversant with, and personally immersed in the emerging trends of the day. This would provide them with a steady stream of ideas and know-how from strong professionals ready to face unforeseen challenges and to capitalize where possible on inevitable market disruptions.
Having visibility to emerging trends will be critical to business success. Consider that some executives just now are starting to realise that they need to unlock the power of Facebook and are patting themselves on the back for being so forward thinking. Yet, at the same time younger generations think Facebook is lame, their grandmothers use it, and they've already moved on to Instagram, Snapchat, and some other really cool app you've never even heard of.
Counterintuitively, the people that can give you the visibility you need to support your transformations probably already exist in your company. Research by the Corporate Executive Board shows that 1 in 7 employees are what they call "High Potentials" which is someone who eventually will be capable of taking on more senior positions and becoming a great leader. So, whether you believe your company needs to get into the Snapchat game, capture and analyse big data on your customers, experiment with design sprints for new product designs, or just upgrade existing workflow systems, most likely, you already have an unidentified employee who’s perfect for the job. They’ll have great ideas, leadership potential and a lot of passion, which will be integral to drive not just your current transformational needs, but in helping to drive home all the transformations you'll need to weather over the next 4-8 years. Yes, this person is likely to be a millennial. No, you don't need to hand over the keys to the car yet. But yes, you should probably start teaching them to drive.
Now, you don’t have to have a high potential millennial leading your transformations. We’re not being ageist here, there’s no strong reason to believe your existing executives can’t handle the job. However, they've probably already been asked to start working on it and if you’re in the 56% of organisations that do not feel well prepared for disruption then maybe it's time to add another player to the mix.
There’s a good argument for building up a less experienced high potential to lead transformations for your company. Consider that a well-established leader with decades of experience and a track record of success within your industry will probably already know many of the challenges, roadblocks, people issues and complexities that must be contended with for a digital transformation to succeed. They’re probably less familiar with recent technology and management methods and might see things pessimistically. On the other hand, a bright eyed high potential talent with some competence is more likely to think "oh yeah, that'll be easy, Google, Amazon, and my buddy's start-up do that kind of stuff all the time." Sure, the poor soul will have no idea what he or she's up for, but at least will approach things enthusiastically and optimistically – two key ingredients for a successful change initiative.
Organisations will want both players involved in their transformations to ensure they are capitalizing on the latest trends and still retaining their core advantages. Therefore, identifying high potentials, having them participate in strategic discussions, and helping them build their influencing, leadership, and business skills, will be essential to the survival and growth of many organisations in the coming years.
In the second part of this article we will cover existing best practice methods organisations can use to identify and develop their high potential talent along with ways to "hack" these processes to achieve even greater results.
Author: Justin Paul, Fortune 500 HR leader & consultant has helped executives in over 20 countries build their leadership capability. Currently CEO, Latchmere Performance Solutions Ltd, Justin@Latchmereconsulting.com
Series Editor: Christopher F. Bruton is Executive Director of Dataconsult Ltd, chris@dataconsult.co.th. Dataconsult’s Thailand Regional Forum provides seminars and extensive documentation to update business on future trends in Thailand and in the Mekong Region.
