29 August, 2011 17:31

Reginald Tachie-Menson

Forge good management & employees relationship encourages business expert, Charan

In an increasingly competitive business arena, improved relationships between management and employees need to be forged in order to gain an advantage, according to Ram Charan, a global business expert who was speaking at a Duke Corporation roundtable, hosted by Nedbank, on Monday.

Charan said that management needed to be more involved in understanding the talent of each individual. In identifying the positive qualities of an employee, likelihood of improved motivation and insight for the person to grow and extend their abilities became more commonplace. An aim to unblock the blockages should be taken up, in order for talent to rise.

Cheryl Stokes, Executive Director from Learning Innovations Team Duke CE, provided context for the discussion by communicating the key concerns of business leaders. These included securing individuals with the capabilities needed to execute strategy and building leaders of the future.

Stokes said that skills were a key issue to compete globally, but what needed to take place was a greater investment in people. This was especially relevant for the new strategies of current businesses that wish to expand into emerging markets. She said that, "a new type of leader is needed for new markets".

Charan said that strategy and vision was secondary to people. People choose strategy. The different perceptions of talented individuals form the direction of business. The question that organisations should be asking was if they were choosing the right people to shape strategy as well as the personnel-need the company's specific market requires.

Charan focussed on the issue of identifying and nurturing talented individuals. "Raw talent exists in every country, it's just about finding that raw talent".

He stressed that the criteria that should be used as a measure of potential should be the individual's ability to make money and not the superficial factors businesses have often used such as digital adequacy or proficiency in the English language.

Certain employees, which Charan termed "value creators", were part of an essential component to successful businesses. "Value multipliers" were important but more recognisable.

"Value creators" were often not leaders, but were crucial to productivity, as value could not be grown, without a source. Most of them were not leaders and thus, these individuals were often undervalued.

Charan stressed the need to redefine "A" leaders. High quality leaders deliver on their commitments, continued to increase their "runway of potential", set goals in accordance with opportunity rather than past performance and had a natural tendency to search for big ideas.



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