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LEADERSHIP DEVELOPMENT TRENDS IN THE GULF COOPERATION COUNCIL{ by } SUMIT HARJANI AND JOSHUA KOBB

Rapid growth, abundant financial resources,

ambitious development, reform plans, and

mega-projects characterize the economic

climate in the Middle East. The key message

that emerged during our study was that growth,

both domestic and international, is the top

business priority for 74 percent of organizations.

As a result, there is an emphasis on preparing

and developing leaders to keep pace with the

region’s economic growth.

{ 1 } LEADERSHIP DEVELOPMENT TRENDS IN THE GULF COOPERATION COUNCIL

AS A PART of our ongoing research and work with clients, we conducted a study of 23 leading organizations in the Gulf Cooperation Council (GCC) countries. Three key leadership development trends emerged for the region. Close to 95 percent of organizations have either increased or maintained the same level of resources (training budgets, staffing, number of employees trained) allocated to leadership development.

This ongoing investment is in line with the fact that almost 70 percent of the organizations in the region believe that their future leaders will come from within the organization itself. Yet even though they plan to rely on this talent pipeline, only 20 percent of organization say they have a well-defined succession plan and a strong leadership pipeline. So while investment in training continues to be a strong focus and there is a willingness to promote from within, most organizations still face the challenge of a weak leadership pipeline.

Within this context of growth and investment in learning, three trends for leadership development in the GCC attracted our attention:

•Developing nationals for leadership roles is a central priority for companies operating in the region.

•Strategic execution, talent management, and communication are the key skills to be developed among leaders, and are critical so that leaders can manage growth.

•Although face-to-face learning is by far the most deployed format, acceptance of technology-driven leadership development programs is gaining momentum.

These three trends are examined in more detail on the following pages.

As Gulf Cooperation Council organizations gear up for growth, the required investment in leadership development is in place.

of organizations in the study say they have a well-defined succession plan and a strong

leadership pipeline.

20%

of organizations say growth is the top business priority.

74%

{ 2 } HARVARD BUSINESS PUBLISHING

TREND

Nationalization Is a Key PriorityNATIONALIZATION INITIATIVES, whether they are in the UAE, Qatar, or Saudi Arabia, all aim to reduce the country’s reliance on expatriate labor and increase the participation of nationals in the labor market. What has been clearly expressed is the priority in each of the GCC countries for the development of the national population.

Nationalization programs with an aim to influence the demand and supply of expatriates and national workers, with the fundamental objective of fully leveraging national talent, have been developed and implemented in the region throughout the decade. Governments have selected industries they consider suitable for national men and women to work in and set quotas that the organizations within these indus-tries have to meet. Significant expansion of expenditure on education is taking place throughout the GCC as governments try to address skill gaps, improve employment opportunities for nationals, and lay the groundwork for economic diversification.

Similarly, the development of nationals is a central priority of the corpo-rate organizations surveyed and a crucial challenge in terms of leader-ship development. Our research revealed that nearly seven out of every 10 organizations consider the development of nationals and succession planning as their key HR priority. figure 1


KEY HR PRIORITIES

KEY HR PRIORITYSixty-eight percent of organizations surveyed in the region also believe that their future leaders should come from within the organization itself, much in line with the importance of succession planning, as the second priority identified. A successful nationalization program will enhance local participation in the succession plan, after talent has been qualified for assuming leadership roles.

IMPACT OF THIS TRENDPrograms should be organization-wide, with a specific approach for each well-identified management level in the organization. A national leaders development program should be “start to finish,” focusing on key skills and behavior for each level, and should integrate the organization’s com-petence framework as a means to support the succession plan.

68% of organizations believe that their future leaders should come from within.

DEVELOPMENT OF NATIONALS

SUCCESSION PLANNING

MANAGING UNCERTAINTY

MANAGING CULTURAL DIVERSITY

ADDRESSING GENDER IMBALANCE

OTHER

72%

68%

51%

43%

28%

10%


TREND

Key Skills Are Strategy Execution, Talent Management, and ExecutionTHE IDENTIFIED BUSINESS objectives for the GCC region are centered on growth in domestic and international markets. The trend that emerges pertaining to key skills required for success echoes this business priority.

Growth challenges leaders to constantly balance strategy and opera-tions. They have to run their verticals efficiently and have to do so while investing in long-term growth. For this, they need both operational and strategic skills. Our study reveals that most organizations acknowl-edge that their leaders display significant gaps in strategy execution skills, with nearly 73 percent of the survey respondents identifying strategy execution as the most vital leadership skill for success at their respective organizations. This would imply that organizations have well-defined strategies; however, implementing and building on these strategies appears to be a challenge. The other areas that followed were talent management (68 percent) and communication (68 percent). The complexity of talent management gets amplified with managing teams of multiple cultures and nationalities. Interestingly, communication came up as a key skill for development even at mid-management and senior management levels and also a key area aligned to the priority around nationalization.


KEY LEADERSHIP SKILLSStrategy execution refers to how units support a company’s strategy by developing and executing action plans for strategic initiatives. In many companies, senior management and units are involved in the strategic planning process. This ensures that a company’s strategies—at both a corporate and a unit level—are tightly aligned and that successful imple-mentation can follow. Strategy execution must be supported by skills such as being a part of strategic planning, strategy cascade, performance mea-surement, and ensuring alignment (of plans, messages, and objectives).

IMPACT OF THIS TRENDIn designing a leadership program, it is important to maintain a balance between skills related to strategy—understanding strategy and being effective at putting it in place. This implies greater focus on skills around planning, execution, cascading, and alignment. The other two elements that require focus are talent management and communication.

STRATEGY EXECUTION

TALENT MANAGEMENT

COMMUNICATION

CHANGE MANAGEMENT

INNOVATION

STRATEGY

TOP LEADERSHIP SKILLS

73%

68%

68%

65%

55%

40%

of organizations identify strategy execution as the

most vital leadership skill for their organization.

73%


TREND

Blended Programs Are Gaining Acceptance as a Delivery MethodAlthough face-to-face learning is by far the most deployed format according to the survey, acceptance of technology-driven leadership development programs is gaining momentum. The results indicate that most organizations rely to a large degree on face-to-face learning as the methodology for developing leaders. Blended learning (i.e., a combina-tion of various modes of delivery) and action learning are also among the popular methodologies, but are less widely implemented. Elearning is gradually gaining traction in the region, but its uptake is unequal between countries, industries, nationalities, cultures, and types of learn-ing. While both blended learning and elearning are steadily acquiring acceptance, mobile learning remains the least-used leadership develop-ment method in the region, while it is growing fast in other parts of the world. figure 3


LEADERSHIP DEVELOPMENT METHODOLOGIES

LEADERSHIP DEVELOPMENT METHODOLOGIESAs our research reveals, both blended and action learning are gaining in popularity as teaching methods. Organizations are finding these types of solutions not only scalable but also more effective than the traditional training methods, as blended learning offers the opportunity to create a continuum of learning as opposed to a one-off event.

IMPACT OF THIS TRENDResearch reveals that the organizations are most comfortable with a face-to-face method of delivery but are accepting technology-enabled leadership programs as an add-on. This trend is especially seen in large organizations where they are trying to achieve scale in a cost- effective manner.

Technology-enabled leadership programs are on the rise with large organizations that require scale.

FACE-TO-FACE LEARNING

BLENDED LEARNING

ACTION LEARNING

COACHING/MENTORING

ELEARNING

MOBILE LEARNING

40%

23%

17%

12%

10%

4%


Throughout this survey and subsequent analysis of its findings, we have essentially described the landscape of leadership development in the GCC countries. The three trends that we have captured showcase a clear linkage. The strategic context of rapid growth in the GCC weighs heavily on the region’s need to develop its nationals and plan successions. This further translates into an expectation for the newly appointed leaders’ ability to execute strategy, manage talent, and communicate effectively. And lastly, as organizations in the region grow in domestic and inter-national markets, the region is also showing early signs of maturity through accepting blended programs along with the established face-to-face mode of delivery of leadership development.

As evidenced by these three leadership trends, we believe that the next step for Harvard Business School Publishing would be to deepen its view on nationalization. Nationalization is emerging as a clear priority for firms in the region, and it would be relevant for us to explore issues related to leader development as it supports this strategic imperative.

The strategic context of rapid growth in the GCC translates into an expectation for the newly appointed leaders’ ability to execute strategy, manage talent, and communicate effectively.

TO LEARN MORE, CONTACT: [email protected]


ABOUT THE AUTHORS

SUMIT HARJANISenior Engagement Manager, Delivery — Asia Pacific, Harvard Business Publishing

Sumit Harjani is Senior Engagement Manager, Delivery — Asia Pacific for Harvard Business Publishing. He engages with clients to develop and implement leadership and development programs and has trained close to 6,000 participants as a facilitator. He has conducted senior management programs on topics such as strategy, project management, change management, sales, negotiations, leadership, and talent development and is an alumnus of Indian Institute of Management, Bangalore. He can be reached at [email protected]

JOSHUA KOBBRelationship Director, Harvard Business Publishing

Joshua Kobb is Relationship Director for Harvard Business Publishing in the Middle East. He works extensively with organizations to provide solutions that build leadership capabilities and strengthen best business practice. He is a partner to learning and development professionals, sharing insights and making Harvard Business Publishing’s thought leadership available to managers, executives, and their organizations in the region. Born and raised in the United States, Joshua holds a BA in psychology and an MA in international relations and public administration. He spent more than 20 years in Europe, and the past five years in the GCC. He can be reached at [email protected]

Harvard Business Publishing is committed to providing quality leadership development solutions to organizations around the world. To support and expand this position, Harvard Business Publishing regularly publishes white papers on issues directly relevant to leadership development and human capital professionals as a means to share trends and best practice with our partners.

© 2015 Harvard Business School Publishing. All rights reserved. Harvard Business Publishing is an affiliate of Harvard Business School. MC190770315

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