Master Series 3: Pathway of Integrity: Taking Back Corporate Leadership for Local Talent

1. 44th Annual National Conference Master Series 3: Pathway of Integrity: Taking Back Corporate Leadership for Local Talent Dr Enase Okonedo, Dean, Lagos Business School Email: eokonedo@lbs.edu.ng

2. Outline • Taking Back Corporate Leadership: Six Key Issues • Globalisation and Int’l Talent Mobility • What HR Professionals Can Do • Humanistic Management • Taking Back Foreign-Based Local Talent • Developing Middle Managers • Preparing Local Talent for Global Markets • Clear Accountability for Executive Talent Development

3. # 1: “REAL” or “IMAGINED”? • Foreign Expatriates are taking back all the senior leadership positions. • Are they (all)? • Many MNCs with Nigerian CEO’s e.g. GSK, FrieslandCampina WAMCO, Shell, Citibank, Stanchart, Stanbic IBTC, Mobil Oil, Guinness, etc. • This applies to other senior executive positions.

4. # 2: “REAL” or “IMAGINED”? • We have Too Many Expatriate Managers. • Are we looking at only the CEO/top positions? • Should we also look at lower-level senior management positions?

5. # 3: “REAL” or “IMAGINED”? • Nigerian Executives Have Stunted Career Growth as a Result of Expatriate Executives. • Many Nigerian executives are serving as senior executives and international assignees in the West, and in “foreign” places e.g. Hungary, MENA; esp. in oil and gas MNCs. • Nigerians are CEOs/top executives in many African countries, as MNCs expand in the region. e.g. Guinness, Standard Chartered, Citibank.

6. # 4: “REAL” or “IMAGINED”? • Corporate Leadership for Local Talent is an Issue (ONLY) in Multinational Companies. • In many large local corporates, not only is the CEO/top management occupied by expats, but also senior, and increasingly middle mgt. • MNCs actually appear to be more committed to local executive talent development. We should be (even more) concerned about executive talent development in local organisations.

7. # 5: “REAL” or “IMAGINED”? • We have sufficient local talent to lead organisations. • Do we really have the right quality in the right quantity? • There are challenges engaging high quality, competitively priced, local executive talent in Nigeria. • Indeed, many MNCs are yet to come into the Nigerian market because of dearth of local executive talent. • Local and international headhunters are stretched, as they search for top local talent for their clients.

8. # 6: “REAL” or “IMAGINED”? • Only in Nigeria Can This Happen! • Expatriate executive talent is a global phenomenon; the changing dynamics of the new global economy demand globally competitive talent, with international management capabilities. • Global CEO of Citibank, Pepsi & top business schools such as Harvard Business School all Indians. • Companies are looking for high performers with a global mindset, and nationality is increasingly becoming secondary or immaterial.

9. Corporate Leadership for Local Talent • CERTAINLY, more can and should be done to develop local executives, but the game and the rules of the game have changed. • We need to have a different mindset about the issue of local executive talent management. • A broader, more holistic understanding is required in today’s increasingly globalised product and labour markets.

10. Globalisation and Int’l Mobility of Talent • Globalisation is redefining the competencies to lead large (multinational) organisations. • Organisations are increasingly looking to build a global talent pool of high-potential executives. • We must therefore progress from the “rights-based” (Son-of-the-soil) approach, to a “merit-based” one, in discussing leadership of MNCs.

11. The Role of CIPMN Members HR Professionals Must Rise to the Challenge of Developing Globally Competitive, LOCAL EXECUTIVE TALENT

12. NEEDED: A Different HR Philosophy,Grounded in Humanistic Mgt • Hard HRM: Utilitarian Instrumentalism • Employees are treated as a resource, aim to pay them as low as possible, they need to be controlled • Soft HRM: Developmental Humanism • Employees are the most valuable asset of the business and they need to be developed to ensure they are being used optimally. • ARE WE INVESTORS IN PEOPLE?

13. Championing Investment in People • Producing corporate leaders requires significant effort, nurturing and investment. • (One Nigerian director at a major MNC estimates $ 3 million invested in his executive development over a ten-year period). • Global surveys indicate companies invest 2 – 3% of payroll on training. • Top global companies, however, spend 5 – 7%. • GE – widely respected for producing corporate leaders – invests more than $ 1 Billion in people developmt. • Nigerian-owned companies tend to invest significantly less than their global counterparts.

14. Nigeria and the Global War for Talent • In the global “War for Talent”, Nigeria is not particularly competitive. • Not only do we not have sufficient quality and quantity of local executive talent, we are fast losing high-quality talent to other economies aggressively recruiting highly skilled professionals. • This “TALENT SECURITY” challenge is a major obstacle to national development.

15. Taking Back Foreign-Based Local Talent • What do we do about talent “losses” to other economies (highly skilled migrants, non-returning students, and non-returning international assignees? • As challenging as this is, HR professionals must develop innovative talent management systems to attract these people, with a compelling employee value proposition E.g. NB’s Young African Talent programme, which targets overseas students and early career professionals.

16. Start from the “Middle Belt”; Think Long Term! • We must go back to the basics, prioritising management trainee and middle management development programmes. • The middle managers of today, are the corporate leaders of tomorrow. • It’s a long journey, and requires not just training and development, but also careful and purposeful nurturing. • LBS: Middle Managers that passed through our executive programmes in the last decade are now CEOs. E.g. GTBank, Diamond, Skye, FrieslandCampina WAMCO, GSK, etc.

17. Think Global! Prepare Local Talent for Global Markets • Globally competitive skills/technical capabilities • Sound knowledge of dynamics of global economy • General international business capabilities • Knowledge of foreign cultures and customs • Knowledge of foreign languages, esp. French. • LBS having to develop Int’l AMP, Global Mgt in Curriculum, Int’l Study Trips, Int’l Student Exchange, Int’l Assignments for MBAs (e.g. GE, StanChart, Monitor, etc).

18. Accountability for Local Talent Development • Regularly monitor and report local executive talent development initiatives. • Make executive talent management a high-level agenda; at the level of the board. • Hold executives responsible for management talent development, from management trainee to senior executive levels.

19. Institutionalisation of Espoused Values • The “Nigerian brand” has an integrity deficit; High profile corporate scandals and mismanagement have further hurt the brand. • We need to institutionalise a culture that encourages and rewards ethical behaviour and conduct, with zero-tolerance for “sharp” practices. • Introduce values-based performance management systems concerned not only about financial outcomes/ends. • Act as Role Models of Ethical Behaviour.

20. THANK YOU!

21. About LBS 21 • Graduate school of Pan-African University, established in 1992 with the support of IESE Business School, Spain. Inspired by the teachings of Saint Josemaría Escrivá, founder of the Catholic institution, Opus Dei. • The School seeks to provide high potential professionals with a general management education which stresses professional ethics and service to the community through the practice of management. • Full-time MBA, Executive MBA, Modular Executive MBA, PhD, 50 + Short-focused programmes, three general management programmes (SMP, AMP, CEP), and world class custom education programmes. • Alumni Association with over 4,200 members. • Has been ranked among the top 55 business schools in world by Financial Times of London in the area of open enrolment executive education programmes over the past 3 years.

22. Enase Okonedo: Bio-sketch • Enase Okonedo, Dean of Lagos Business School (LBS), is a Fellow of the Institute of Chartered Accountants of Nigeria (FCA).  She has an MBA from IESE Business School, Barcelona and a Doctorate in Business Administration from International School of Management (ISM), Paris.She joined Lagos Business School in 1995 after working for several years in the Nigerian Banking sector. At Lagos Business School, she has taught courses on decision making and problem solving, corporate financial management and financial strategy on the Executive MBA and Full-Time MBA programmes as well as various executive programmes. She is also engaged in programmes for developing faculty for other African business schools through regular workshops organised by the Association of African Business Schools (AABS).Dr Okonedo, a member of the Governing Council of the Pan-African University, held several leadership positions at LBS at various times in the past, including Deputy Dean; Faculty Director; Director, Degree Programmes and Executive MBA Director and was for several years a member of the Management Team of the School before becoming Dean in July 2009. • She is current Chairperson of the Association of African Business Schools (AABS); is a member of the academic advisory board of Global Business School Network (GBSN) and also serves on the board of several indigenous companies.