Local executives lack leadership
24-JUL-2008 Intellasia | Thanhniennews
Jul 24, 2008 - 7:00:00 AM
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Vietnamese chief executive officers (CEOs) still lack many qualities required to be good leaders, a company excecutive told a recent conference held by the Masso Group in HCM City.
Addressing the conference, Masso's CEO Nguyen Trung Thang said many local executives are not aware of the importance of good leadership or what it entails.
Thang said good leadership encourages creativity and objective discussions among executives and staff while offering training opportunities to employees.
He cited a survey from McKinsey and Co that says 77% of the world's CEOs agreed that effective leadership was one of the most important factors for organisational development.
According to another McKinsey and Co survey, 73% of 40 successful companies in Europe, Japan and the US offer employees incentives for product development and 60% encourage participation in decision making associated with company innovation.
Thang said successful companies tend to combine leadership and strategy building together, while Vietnamese CEOs, on the other hand, tend to underestimate the importance of good leadership.
He said local CEOs pay more attention to the technical expertise of staff, such as employees' finance and accounting skills, rather than intangible aspects like human resources, IT and product development.
He also highlighted that more than 88% of Vietnamese businesses open up shop having low or medium-level technology, while the educational level of local executives is not high.
According to another survey of 63,760 small and medium companies in 30 provinces and cities recently conducted by the Ministry of Planning and Investment, only 3.7% of executives in these companies have a master's or doctorate degree.
Half of them only had a high school diploma.
"Effective leadership remains limited in some state-owned enterprises as management board members don't want to share or encourage it because they don't want to be replaced by people better than them," said Yteco's director Le Thien Phuoc after the conference.
Phuoc said few local companies have a clear idea of what leadership means, but "it is certainly the right path to follow if you want to improve your company's work environment."
Lien Minh Real Estate Company's Chief Operation Officer Le Thanh Vinh said good leadership is essential for a public company.
"It will create the transparency that definitely benefits shareholders," Minh said.
HNP's CEO Huynh Van Thien Thanh said since his company was established four-years ago, he has tried to foster good leadership.
"It promotes understanding among board members," Thanh said.
"It helps us make good policies to cope with changing business environments."
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