Issue link: https://www.e-digitaleditions.com/i/73199
Befuddled Dragon CEO's Corner The CEO: Elliot H. Clark Elliot.Clark@SharedXpertise.com So, I was in Singapore for the HRO Today Forum APAC the week of May 14, when I had an uncomfortable realisation. I was that "guy" everyone was complaining about. Not that I am surprised when some people are complaining about me. I am just surprised when it is everybody. And it was not personally me—it was metaphysically and metaphorically me. You see, I was the "guy" visiting from corporate home office back in the West. I was the "guy" confusing the Dragon (of commerce) that lives in the East. Singapore is one of my favorite cities in the world. It is a financial and commercial hub that has become an economic hothouse. Having evolved from a shipping crossroads in its colonial days, Singapore is now competing to be the mercantile capital of Asia. Our conference was there because it attracts the best and the brightest executives from both the HR practitioner suite and the top service companies headquartered in both the East and the West. Running HR as a global enterprise is as much a challenge in Boston as in Beijing. In Eastern-based conglomerates, HR was a regulatory and compliance function a decade ago. Only now is it emerging as a much more strategic function in today's modern APAC-based company—similar to its role in the Western-based businesses. And for Western-based companies with divisions operating in APAC, HR is more pervasive and strategic, but also stretched very thin. HR is a global victim of economic restructurings, and APAC operations might be the brightest spots for economic prosperity. So, why is the Dragon scratching its scaly head and exhaling a fiery breath of frustration? For Eastern companies, confusion exists around the direction of business. But the real confusion is for the Western-based conglomerates—the people reading this magazine need to understand the issues— and yes, that means you over there in the corner. Both providers and practitioners must cope with the significant revenue and employee growth curves that APAC represents. One of the complaints we heard from local HR APAC leadership was that not all corporate HR executives understand the pain and challenges of keeping up with growth and economic realities such as wage inflation and employee retention in some Asian markets. Asia is also many different countries, cultures, and languages, which adds to the complexity. The ratio of HR professionals to staff is low compared to other regions. HR leadership in APAC is just now embarking on the long and arduous task of investigating external solutions. This might entail extensive calculation of current costs, building of a business case, and an ROI analysis. Most times, the local HR leaders will go to their corporate headquarters to apprise the global HR leadership of this investigation. Their goal is to get the "green light" to proceed with an RFP, and they are told that any approval will be subject to the final proposals as submitted. The bid process can be time consuming and exhaust resources and energy. Many delegates recalled getting close to a deal, only to have the approval hung up in London and/or New York. In fact, these cities were most frequently cited as a place where APAC initiatives go to die. What happens in New York or London? In addition to lovely performances on Broadway and the West End, APAC executives related that what "goes on" is a lack of understanding and communication. Then, headquarters conveys to the branch executives that—as satellites—they do not have autonomy. Hence, their frustration with the "home office" and my realisation after arriving from our offices just outside of New York that I was, in fact, that "guy." There is no question that corporate headquarters has to have oversight, or anarchy prevails. However, there need to be better communication and better processes for understanding the business problems unique to Asia. That requires a "pre-approval system" at many of these companies to determine what can and should be done locally. This would streamline governance and improve morale and local decision making. The energy and excitement of APAC is electrifying, and the growth is impressive. But we all learned in management courses years ago that the happier we keep the fire- breathing reptiles, the more productive (or less destructive) they will be. [4] HRO TODAY GLOBAL | SPRING 2012 Elliot H. Clark, CEO Managing Director: Faye Holland Faye.Holland@SharedXpertise.com Editor-in-Chief: Dirk Olin Dirk.Olin@SharedXpertise.com Managing Publisher: Gale Tedeschi Gale.Tedeschi@SharedXpertise.com Managing & Online Editor: Debbie Bolla Debbie.Bolla@SharedXpertise.com Vice President of Marketing: Bill MacRae Bill.MacRae@SharedXpertise.com Marketing Manager: Carina Tam Carina.Tam@SharedXpertise.com Contributing Writers: Russ Banham, Ethan Kline, Katie Kuehner-Hebert, Brent Skinner Webmaster: Michael Fernandez webmaster@SharedXpertise.com Subscription services: For subscriptions, renewals, changes, and back issues, email subscriptions@SharedXpertise.com. About HRO Today Global magazine HRO Today Magazine [ISSN #1541-3551] is published [10x] by SharedXpertise, LLC © 2012. All Rights reserved. URL: www.HROToday.com. Editorial correspondence and press releases: Dirk Olin, Editorial Director, SharedXpertise, 343 Thornall Street, Suite 515, Edison NJ 08837 or editorial@SharedXpertise.com. All letters should include the writer's email address and/or phone number. Business and advertising correspondence: : SharedXpertise, 343 Thornall Street, Suite 515, Edison NJ 08837, 732-476-6160. Subscriber services: SharedXpertise, 343 Thornall Street, Suite 515, Edison NJ 08837, 732-476-6160, Fax: 732-476-6155 or email subscriptions@SharedXpertise.com. Reprints: contact Foster Printing Service, 866-879-9144 or sales@fosterprinting.com. Postmaster: send address changes to SharedXpertise, 343 Thornall Street, Suite 515, Edison NJ 08837. Fax: 732-476-6155. Canada post: Publications Mail Agreement #40612608. Canada Returns to be sent to Bleuchip International, P.O. Box 25542, London, ON N6C 6B2. This magazine cover is printed on 80# Influence Recycled gloss and the inside pages on 50# Influence Recycled gloss, both with 10% post-consumer recycled content.