The New Leadership Challenge For Industrial and Manufacturing Leaders

As the rules of doing business within a fiercelymuch greater openness amongst companies to
competitive industrial and manufacturinglook for talent outside the country even from
environment continue to evolve, so too do thehighly developed markets, something that was
requirements for world-class managementearlier considered too expensive a proposition.
leadership within these markets. In fact, theA demographic shift alone - the acceleration of
demands of corporate leadership have neverretirements among Baby Boomers - has
been higher in the industrial and manufacturingintensified the executive search process for
markets.industrial and manufacturing leaders. Even though
Companies, in general, are constantly looking tothere might be softness in the market just in
upgrade their management leadership benchterms of the economy, industrial and
strength. Companies in the manufacturing sectorsmanufacturing companies are having to replace a
are no different. They are keen to attractlot of top line executives because they're losing
executives with solid, blue chip experience andbaby boomers to retirement.
strong academic qualifications. In the developingThe loss of so many experienced executives
markets such as China and Vietnam, this has ledaround the world to retirement will force industrial
to an acute shortage of quality talent at theand manufacturing companies to make ongoing
middle and senior-management level. Retention ofinvestments in their workforces. Companies will
these qualified professionals has become a majorneed to replace key performers and feed a
issue for many organizations.pipeline of succession candidates regardless of
Recruiting in these regions has become challenging,how the economy is impacting profits. Industrial
because of the relatively small pool of qualifiedand manufacturing companies have to be ahead
candidates, who will each have several offers.of the curve when it comes to recruiting,
Currently the market in Asia is very muchdeveloping and retaining top executives to make
candidate driven. As the war for talent heats up,that happen.
the availability of senior talent with the requiredThe bar has indeed been raised on senior
industry specific experience has become less andmanagement. The new leadership challenge is to
less. This has resulted in many companies lookingcope with an increasingly faster and 'flat' world, to
at people from outside the industry who havebenefit from ever faster changes by having the
proven themselves as good leaders with a trackcourage to exploit new opportunities by leading
record of success behind them. There is also achange instead of following.