2014 Top Leadership Trends in Southeast Asia

1. TOP LEADERSHIP TRENDS IN S.E.A. NBOGROUP 2014 LEADERSHIP SURVEY EXECUTIVE SUMMARY g

2. TABLE OF CONTENTS ABOUT THIS SURVEY 2 LEADERSHIP SURVEY 2014 SOUTH EAST ASIA 4 LEADERSHIP TRENDS FOR 2014 KEEP IN THE LOOP 14 LEADERSHIP SURVEY 2015 © NBOGROUP 2014 LEADERSHIP SURVEY EXECUTIVE SUMMARY. ALL RIGHTS RESERVED. 2

3. LEADERSHIP SURVEY 2014 © NBOGROUP 2014 LEADERSHIP SURVEY EXECUTIVE SUMMARY. ALL RIGHTS RESERVED. The Singapore based NBOGroup partners with its clients to look at current trends for Leaders and Leadership. From December 2013 to January 2014, we surveyed 328 business leaders across Singapore, Indonesia and Malaysia to ascertain what trends are shaping the markets. The NBOGroup has conducted this annual survey for over 10 years. We are proud to report the 2014 Trends in MNC's, Government Ministries and emerging enterprises for Leadership Development. As you read each question ask yourself how is this reflected in your organization and what can you do to help it succeed in the years to come! ABOUT THIS SURVEY 3 35% 35% 21% 9% COUNTRY Singapore Indonesia Malaysia Other 32% 24% 12% 9% 7% 5% 4% 4% 2% 1% INDUSTRY Industrials Financials Consumer Services Consumer Goods Technology Basic Materials Healthcare Oil & Gas Telecommunications Utilities 12% 66% 22% JOB LEVEL C-Level & General Manager Director, Vice President & Manager Individual Contributor Survey Respondents’ Demographics

5. Signs of optimism for SEA & global economies in 2014 © NBOGROUP 2014 LEADERSHIP SURVEY EXECUTIVE SUMMARY. ALL RIGHTS RESERVED. 18% 41% 40% 1% SINGAPORE Optimistic Fairly Optimistic Cautious Pessimistic Uncertain 33% 43% 20% 4% INDONESIA Q1. What is your organization’s outlook for 2014 in the current economy? 17% 49% 30% 2% MALAYSIA The first question is always the current view of the economic situation. For 2014, we are seeing signs of optimism for South East Asia and global economies. This parallels the view we read in the press and from global leaders since the start of the year. We are seeing organizations focusing on growth and expansion. The current market volatility is a reaction to earnings, China slowing and emerging markets correcting. The markets are also reacting to the US Fed and EU in wanting more stimulus to fuel growth. The caution flag is out but optimism is the undercurrent in most sectors. g 24% 43% 30% 1% 2% ALL 5

6. Organizations face economic & competitive challenges © NBOGROUP 2014 LEADERSHIP SURVEY EXECUTIVE SUMMARY. ALL RIGHTS RESERVED. Q2. What are your organizational challenges in 2014? Economic challenges still lead the list of concerns. Will global economies continue their trend of higher growth? Competition is ever present, so how do we improve the staff productivity to capture more opportunity, process faster and grow client relations better? All issues that must be solved to reach our goals. 56% 55% 48% 45% 43% 41% 37% 36% 22% 16% Economic challenges Competition Growth Innovation and creativity Productivity of staff Transformational leadership Pricing sensitivity Skills shortage Trust in management Changing technology ALL 55% 51% 51% Competition Economic challenges Growth SINGAPORE TOP 3 56% 51% 43% Economic challenges Competition Productivity of staff INDONESIA TOP 3 70% 70% 62% Competition Economic challenges Skills shortage MALAYSIA TOP 3 g 6

7. Leadership development is required to lead growth and expansion © NBOGROUP 2014 LEADERSHIP SURVEY EXECUTIVE SUMMARY. ALL RIGHTS RESERVED. 64% 56% 53% 50% 45% 43% 40% Leadership development Increasing productivity Changing behaviors Team development Reducing cost Staff communication effectiveness Coaching and mentoring ALL Q3. What strategies are your leaders using to move forward in the current economy? Question 3, “What strategies will we use to capture opportunities in this economy?” Leadership Development heads the list. 64% note that we need to develop Leaders who help us take advantage of these new opportunities; Leaders who can inspire and motivate staff. Second is the need to increase productivity. Are the Visions, Missions and Strategies communicated effectively? Are the individuals and teams realizing their potential to improve performance? 57% 51% 47% Leadership development Increasing productivity Team development SINGAPORE TOP 3 64% 59% 56% Leadership development Increasing productivity Reducing cost INDONESIA TOP 3 81% 64% 62% Leadership development Reducing cost Increasing productivity MALAYSIA TOP 3 g 7

8. Leadership “style” is the top reason for poor performing leaders © NBOGROUP 2014 LEADERSHIP SURVEY EXECUTIVE SUMMARY. ALL RIGHTS RESERVED. “Why do Leaders Fail?” is an annual question. Leadership style heads the list for poor performance. Not surprising with staff looking for direction and confidence from Leaders. Younger workers and more mature workers alike are knowledge workers and want to participate in the future and know that their skills are appreciated. Leadership style is reported by EQ (emotional quotient) experts and Leadership lecturers as the number one issue for underperformance of staff. 60% 48% 35% 34% 33% 32% 31% 19% 10% Leadership style Lacks vision, clear direction Cannot build teams Poor communication Fail to execute Poor interpersonal skills Leader does not inspire optimism Does not innovate Does not relate to customers ALL 62% 52% 32% 31% 31% Leadership style Lacks vision, clear direction Cannot build teams Poor interpersonal skills Leader does not inspire optimism SINGAPORE TOP 5 52% 50% 40% 38% 36% Leadership style Lacks vision, clear direction Poor communication Fail to execute Cannot build teams INDONESIA TOP 5 75% 43% 41% 39% 36% Leadership style Leader does not inspire optimism Poor communication Poor interpersonal skills Cannot build teams MALAYSIA TOP 5 g Q5. What are the most signiﬁcant reasons why leaders fail in your organization? 8

9. Poor management & leadership undermine creativity, productivity & drive talent to quit © NBOGROUP 2014 LEADERSHIP SURVEY EXECUTIVE SUMMARY. ALL RIGHTS RESERVED. Q16. How did working for an underperforming manager impact you? With talent management being foremost in recruiting and retention strategies, the impact of poor management and leadership significantly undermines the effective use and retention of talent. The greatest impact these underperforming managers have is on subordinates growth, achievement and career advancement. The result, inhibited creativity, productivity and increased attrition rates. Most surveys, as this one, find a key reason for attrition is poor Management/Leadership and not being developed or appreciated. All rectifiable with effective Leadership Development activities. g 75% 69% 47% 42% 37% Prevented me from growing and learning Prevented our team from achieving more Prevented my career from advancing Made me want to resign Inhibited creativity ALL 73% 70% 44% 38% 34% INDONESIA 85% 63% 56% 41% 39% MALAYSIA 73% 70% 46% 46% 39% SINGAPORE 9

10. Organizations today want leaders who inspire trust © NBOGROUP 2014 LEADERSHIP SURVEY EXECUTIVE SUMMARY. ALL RIGHTS RESERVED. Q6. What are the leadership needs in your organization? Organizations, when asked about Leadership needs, surprised us this year: A top issue is Leaders who can inspire TRUST! A fundamental issue if you are going to energize and motivate productive teams and individuals. People want to know that assignments, compensation and promotion are fair and equitable. Respondents also highlighted clearly that Leaders who are effective communicators and who can build effective teams were equally important. It is very hard to build trust if you cannot communicate sincerely. The teams must be the right talent and reflect objectivity in their task. 29% 33% 35% 36% 41% 51% 67% 63% 61% 58% 56% 42% Leaders who inspire trust Leaders who communicate effectively Leaders who build effective teams Transformational leaders Leaders who develop others through coaching and mentoring Innovative leaders ALL Low Medium High 62% 59% 56% Leaders who inspire trust Leaders who build effective teams Leaders who communicate effectively SINGAPORE TOP 3 (HIGH) 73% 66% 63% Leaders who inspire trust Leaders who communicate effectively Leaders who build effective teams INDONESIA TOP 3 (HIGH) 73% 68% 66% Leaders who communicate effectively Transformational leaders Leaders who inspire trust MALAYSIA TOP 3 (HIGH) g 10

11. Performance plans & 360 feedback are most accurate in identifying development needs © NBOGROUP 2014 LEADERSHIP SURVEY EXECUTIVE SUMMARY. ALL RIGHTS RESERVED. Q11. What is most accurate in identifying learning and development needs? Organizations want to know “how do I get a Return on Investment (ROI) from learning & development?” How does the organization determine and measure the best method to understand those needs? The most accurate methods for assessing development needs are the performance planning system, a well planned 360/720 feedback process and individual development plans. Most importantly, the best measure of results is the 360/720 feedback process. 5% 4% 15% 23% 22% 39% 45% 48% 29% 26% 24% 9% 360 degree feedback Performance plans Individual requests ALL 1 2 3 4 5 360 degree feedback 49% Performance plans 29% Individual requests 22% SINGAPORE (MOST ACCURATE) Performance plans 54% 360 degree feedback 29% Individual requests 17% MALAYSIA (MOST ACCURATE) Performance plans 47% 360 degree feedback 43% Individual requests 10% INDONESIA (MOST ACCURATE) g 11 Least Accurate Most Accurate

12. ‘Quality’ is most important when seeking external support © NBOGROUP 2014 LEADERSHIP SURVEY EXECUTIVE SUMMARY. ALL RIGHTS RESERVED. Q13. When you use external consultants (in training and development), which key factor would determine your choice? When looking for external support what are the key requirements that organizations look for? Quality and successful past performance are foremost in this decision process. Not price. 1% 6% 10% 19% 3% 9% 34% 36% 35% 20% 42% 37% 34% 30% 76% 47% 20% 16% 9% Quality Successful past results Referrals Price Relationships ALL 1 2 3 4 5 75% 42% 17% Quality Successful past results Price SINGAPORE TOP 3 (MOST IMPT) 76% 50% 20% Quality Successful past results Referrals INDONESIA TOP 3 (MOST IMPT) 78% 49% 32% Quality Successful past results Referrals MALAYSIA TOP 3 (MOST IMPT) g 12 Least Important Most Important

13. Talent management is the #1 challenge for HR professionals © NBOGROUP 2014 LEADERSHIP SURVEY EXECUTIVE SUMMARY. ALL RIGHTS RESERVED. Q17. What are the top challenges for the human resource function in 2014? When we asked Human Resource professionals what was in their priority list for 2014, talent acquisition and retention were at the top of the list. In querying this, many reflected that ALL talent were important to the organizations’ success. Thus the hiring, induction, development, and consistent managing for success underpinned that priority. 81% 66% 59% 53% 51% 45% 43% 30% 23% Talent management Strategic alignment of HR to the Corporation Establishing competencies Participating in change initiatives Embracing a coaching culture Measuring training and development activities Doing more with less Securing top management buy-in to HR activities Creating buy-in for training and development activities ALL 81% 61% 54% 54% 54% Talent management Strategic alignment of HR to the Corporation Establishing competencies Participating in change initiatives Embracing a coaching culture SINGAPORE TOP 5 79% 72% 66% 50% 46% Talent management Strategic alignment of HR to the Corporation Establishing competencies Participating in change initiatives Embracing a coaching culture INDONESIA TOP 5 85% 63% 61% 59% 56% Talent management Strategic alignment of HR to the Corporation Embracing a coaching culture Participating in change initiatives Measuring training and development activities MALAYSIA TOP 5 g 13

14. © NBOGROUP 2014 LEADERSHIP SURVEY EXECUTIVE SUMMARY. ALL RIGHTS RESERVED. Every year, the NBOGroup conducts an annual Leadership survey across Singapore, Indonesia and Malaysia to ascertain the trends that are shaping the markets. If you have been a respondent in this year’s Leadership Survey, we want to thank you for your participation and invite you to participate again in our 2015 Leadership Survey. If you were not a respondent, we thank you for your interest in our Leadership Survey and hope that you find the reports of value to your industry and market. If you would like to continue to receive updates on our next Leadership Survey or become a respondent for our 2015 Leadership Survey, be sure to register your interest via the link below. We look forward to hearing from you! LEADERSHIP SURVEY 2015 KEEP IN THE LOOP 14

15. © NBOGROUP 2014 LEADERSHIP SURVEY EXECUTIVE SUMMARY. ALL RIGHTS RESERVED. The NBOGroup has been conducting leadership development, communication and interpersonal skills training across Asia since 1988. The NBOGroup is one of Asia’s most respected leadership and communication consulting firms, with offices in Hong Kong, Singapore, and with partners in Indonesia, Malaysia and Europe. Each NBOGroup program is designed to fit the specific learning objectives of our clients, who include many of the Fortune 500 companies. With worldwide experience, our programs and products are tailored for multi-cultural environments. The NBOGroup employs leading edge tools in ourcustomized engagements; the NBOGroup unique online 360° Leadership Survey, and psychometric tools including Dr. Raymond Cattell’s Sixteen Personality Factors & Five Global Factors (16PF). Our executive coaches add value in personalized experience by linking individual personality and behavior to desired performance objectives. Our trainers emphasize the development of practical competencies, not stereotyped techniques. This approach delivers greater impact, a lasting application by the participant, and a return on investment for the organization. The NBOGroup offers its clients a total learning resource with the philosophy that our client relationship is “a partnership that continues”. We look forward to the opportunity of working with you. ABOUT NBOGROUP 15 Head Ofﬁce 583 Orchard Road #10-04 Forum Singapore 238884 Phone: (65) 6339 8733 Fax: (65) 6339 7055 Email: info@nbogroup.com Website: http://www.nbogroup.com