Dr Arun Sacher on the perils of relying on a single model of leadership

Age of plurality

As emerging economies rise in prominence, a single model of leadership is woefully inadequate for navigating global markets, asserts Dr Arun Sacher

The world is a global village now. As such, exclusively practising Western leadership thinking is like hiding in an anachronistic bubble world. Especially since the majority of companies operate globally. In fact, I contend that all three of the existing, Western leadership approaches – that is, the universal, normative and contingency inside an outdated echo chamber. To un- models – miss the mark, insufficiently derstand why we must move beyond this, explicating the construct and sense of let’s consider some facts. leadership as it relates to global diversity. Asia is the fastest-growing region in For example, strategically managing a the world, encompassing economies such business that covers Asia, Africa, Europe as China, Japan, India and South Korea. and America would require a region- It accounts for around 60% of the global and country-specific approach for each economy, has nominal GDP of approxi- economic area. Progressive organisations mately $34 trillion, and purchasing power must accommodate cultural differences parity of $70tn. What’s and varied approaches to more, 4.5 billion people live in Asia – roughly 60% of the world’s popOne cannot downplay leadership. It is crucial for managers and leaders to learn, understand ulation. The region also has the world’s youngest demographic of educatthe danger of organisations and adapt to that end, and work hard to adopt the competencies required ed working people, and a growing middle class. Indeed, if we look at CK using a single model to prosper. As time goes on, organisations are likely Prahalad’s 2004 book The Fortune at the Bottom of the Pyramid, it’s clear that he to inform leadership to be shaped by transnational teams which, for the most part, will work foresaw the growing pow- virtually. As such, leading er of Asia’s economy – and the region’s and managing staff from different cultural transformation into the business centre of backgrounds in a primarily virtual envithe world. ronment will become an everyday reality In recent times, Prahalad’s vision has – and everyday challenge. come true. It is therefore clear that one An understanding of cultural differcannot downplay the importance of un- ences – as well as how those differences derstanding the needs of different mar- play out in interpersonal and group reDr Arun Sacher is a kets across the world – or the danger of lationships – is no longer optional. It is management consultant, organisations usinsg a single model to now a critical tool for global leaders. As author and award-winning inform their approaches to leadership. such, it is imperative for them to accomeducationalist, with three decades of senior management experience To free up their thinking, leaders must understand that relying upon the modate cultural differences and immerse themselves in studying varied approaches in multinational companies traditional Western leadership framework to leadership, changing leadership paraand academic institutions alone is no longer sufficient in today’s digms and cross-cultural management.