HKIHRM 2015: Eight

critical capabilities for

todays leaders
Author: Liana Cafolla | Date: 02 Dec 2015

New skills are needed in a fastchanging world, says Harvards

Vinay Hebbar
There are eight critical capabilities for todays leaders, Vinay
Hebbar, managing director for Asia at Harvard Business
Publishing, told the Hong Kong Institute of Human Resource
Management (HKIHRM) conference.
Past success is no longer a predictor of future success, or
even future existence, said Hebbar and that is even the
case for the biggest organisations.
He pointed to how accommodation booking service Airbnb has
overtaken the growth of the worlds biggest hotel groups,
without making any investment in property, and how Uber is
successfully challenging taxi businesses around the world
without owning a single vehicle. At the same time, only 51 of
the organisations that featured on the Fortune 500 list 50
years ago are still on it today.
The message is that new capabilities are needed to compete
in todays fast-changing world. Based on Harvards global
research, Hebbar pointed to eight critical capabilities that HR
should seek to develop in its leaders:
1 Managing complexity
Defined as the ability to solve problems and make decisions in
fast-changing conditions. Just one-third of leaders say they
can do this successfully, according to research by The

Conference Board in 2014. It requires that leaders look out for

change, build diverse teams to solve problems, plan for
multiple scenarios and demonstrate critical thinking and
decision-making skills.
2 Managing global organisations
By 2025, almost half of Fortune 500 organisations will be in
emerging markets, up from five per cent in 2000. This requires
the ability to seize opportunities in emerging markets, craft a
global strategy that includes region-specific tactics and
navigate cultural complexities.
3 Acting strategically
Adjusting strategies to capture new opportunities or tackle
unexpected challenges. Whats changed is that strategy is no
longer long-term, said Hebbar.
4 Fostering innovation
Defined as building an innovative, collaborative and creative
environment. This requires setting up structures that support
innovation, managing systems and processes, and
encouraging people to innovate.
5 Leveraging networks
Developing networks to achieve organisational goals. Leaders
should use networks to gain insights into complex problems
and grow their influence, and should treat networks as
mutually rewarding relationships. What separates good
leaders from ordinary ones are insights, said Hebbar. Some
leaders connect the dots to see what others dont see, using
the same data, he explained, and organisations that build
diversity into their workforce gain more insights.
6 Inspiring engagement
This means fostering a culture that creates a meaningful
connection between employees values and those of the
organisation. It requires understanding of individual
employees values and needs, shaping assignments to meet
those needs, and fostering an inclusive work environment.

7 Developing personal adaptability

Remaining focused in the face of uncertainty and ambiguity.
According to the 2014 Best Companies for Leaders survey, 60
per cent of CEOs believe adaptability to change is the top skill
needed for leadership. It means dealing effectively with
challenges, managing stress, time and energy, and
recognising that past approaches may not work in current
circumstances.
8 Cultivating learning agility
This is defined as actively seeking and learning from new
experiences. To do this, leaders need to actively look to learn
new approaches and skills, and maintain a curious and
learning-oriented mindset. Critically, leaders must learn from
mistakes and analyse what went wrong. Reflection is key,
says Hebbar. Change happens when you reflect.