Why #Leadership in Middle East #Business Sector ...

Why #Leadership in Middle East #Business Sector is important? A Critical review on how implementing leadership in business enhance sustainability. By: Dr.Hisham Safadi, 2015

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For decades there ways two questions are heading any discussion on Leadership subject. First what are the difference between leadership and management? And is leaders are born or made? Other questions are how can leadership enhance business sustainability , what are the benefits of leadership theories on improving business management and how can business owners implement leadership strategy that enhance decision making within the organisations. Those type of questions are forming the resistance power for any change in business culture. And hence it will affect business transformation to be able in competing on higher standards. The competition between businesses are not bounded only by profit and sales but also in maintain sustainability of this elements. Today huge organisations are competing via innovation, talent management and business resources including technology. Middle East is a targeted location that share a lot of common area’s similar to the European Union. The Middle East is formed from 22 countries that had differences in outcomes and man power, but commonly they shared history, culture, tradition, language and religion. Still the researches that related to Middle East relations with the theories of Leadership is still poor in content and don’t feed the hunger of knowledge or don’t evaluate accurately what changes can happen by implementing leadership styles in Middle East Countries. On the other hand a remarkable leadership styles had raised from the Middle East and the iconic example is His Highness Sheikh Mohammed bin Rashid Al Maktoum is the United Arab Emirates? Vice President and Prime Minister and Ruler of Dubai. He has lead a huge changes that position the city of Dubai among the best cities for living and conducting business in the world. Sheikh


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Mohammed leadership is reflecting how leaders can handle responsibilities empowered by their role. Another example is King Abdullah Bin Al Hussain the King of Jordanian Hashemite Kingdom , he has been in power since 1999 and demonstrate a political leadership style which enable him to drive Jordan to be safe from neighbours threats specially with crisis that hit Syria and Iraq. On the business level at Middle East it was not clear if there was rising names who had reflect a leadership style on their businesses or applied leadership strategy that has an impact on transforming their business for better position. The impact of business changes in Middle East is powered by changing management theories and not implementing leadership theories. Candura, Von Glinow & Lowe (1999) examined leadership and Organizational outcomes in the Middle East and used United States samples as a frame of reference. Results showed that people-oriented leadership (Consideration) was related to job satisfaction and leadership effectiveness in the United States sample. In stark contrast, there was a relation between task-oriented leadership, satisfaction and leadership effectiveness in the Middle East. The outcome is may produce due to the working regulations which are applied in certain countries in the Middle East. Other factors are immigration rules and expenses of living differences between Middle East countries. Multinational companies in the past decades had established presence in certain cities in the Middle East like Dubai, Aqaba, Jeddah and Cairo. Which allow them to have better logistics in serving their customers in far Asian countries and use the advantages of zero tax policies like in Dubai or low rate and competitive taxation policies like in Aqaba. Working at a multinational company at your home country is the best what a normal staff can achieve to have the opportunity to develop his profession and career especially in countries with low income wages and poor public services. This led us to ask how leadership can improve multinational companies’


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performance out of those companies’ headquarters. More over how multinational companies can perform against the stress which may developed on their employee’s lifestyle from working for large corporations. Oxenstierna et al (manuscript) have studied stress among employees in a large multinational company and found differences in stress among subordinates with regards to typical ways of dealing with problems or conflicts in the organisation. The highest levels of perceived stress, self-reported health and self-reported sick leave were reported in organisations where no conscious effort was made to solve the problems. Organisations with a democratic way of dealing with problems had the best health rates among subordinates and thereafter came organisations where leaders make the decisions in an authoritarian way. A comparison between Sweden and Germany revealed that democratic solutions were more common in Sweden and authoritarian solutions more common in Germany. It had explained in several literature that higher rate of staff satisfaction rates will enable business organisations to achieve their goals and objectives. In Organisations that positions as staff centred care , a several ways of communications between management and staff are enabled to empower the staff rights in complain , sharing their ideas and be more engaged in organisation decisions. On the other hand organisations that don’t focus on staff engagement are facing resistance from the staff for any change , or in the best scenario a hidden resistance will be developed that will be preventing business organisation from achieving their goals and objectives. This type is the worst threat that business management can face. Management solutions may not be effective in solving such type of problems but leadership can. Duxbury et al. (1985) found job satisfaction and burnout to be related to each other and affected in a similar way by initiation of structure and consideration leadership, though burnout was affected to a lesser degree. Blase, Dedrick, & Strathe (1986) found a moderate association between teacher satisfaction and degree of stress perceived to result from the principals’ initiation of structure


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and consideration behaviour. Stordeur et al. (1999) found stress to be negatively correlated with job satisfaction. Results reported by Rose (1998) indicate that Leader-Member-Exchange is positively related to job satisfaction and negatively related to burnout. In conclusion to face stress and low performance of staff which are related to unspecific reasons, a leadership strategy to motivate and enhance the shared value between staff that will promote and encourage staff engagement is required. Any job seeker will be looking for better role and position that will grant him or her better wages, medical insurance and other extra benefits like home allowance, children education and paid maternity leave. But it was found that 70% of job seekers accept working at lower roles than their qualifications. The mentality culture play a big role in this arena where working is better than being off work. It’s not related just to be productive element in the society by also due to the community acts against any younger healthy educated person who remains without work. So they accept minor position just to start up. We named them as assistants or subordinates. But what is the relation between leadership and subordinates in Middle East. Only a limited amount of leadership literature has discussed the impact of leadership on subordinates. An even smaller amount of studies has investigated how leadership affects the subordinates. Most studies on leadership have also been carried out in the United State US, and when conducted in Europe and other countries, the studies have to a great extent been influenced by United State US leadership models and instruments. Most leadership studies have been conducted in one country only, and no more than a couple of European cross-cultural studies on the impact of leadership dimensions on the health of employees have been found in the search conducted. The gender perspective has not been included in hardly any studies found. There is a low findings of the relation between leadership and how it effect on subordinates in the Middle East.


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Some are arguing that leadership theories does not apply to all business sectors in Middle East. Mainly the healthcare sector in Middle East is the most beneficiary sector from applying leadership theories and strategies. So what is leadership and management for health care practice? We know that effective leadership and management does not happen by chance. In health care sector the leadership practice aimed to improve health care professionals who want to develop the knowledge, skills and qualities to be an effective health care leader. Most of Leadership and management in healthcare practice studies and courses such in University of Salford, Northumbria University, University of Leeds, Tennessee Technological University and Many Other is designed to give healthcare professionals including doctors, nurses, dentists, radiologists and administrative staff the confidence to try new and creative approaches to the workplace, deal with complex leadership situations and provide effective patient and service outcomes. The studies enables them to implement quality improvements that are locally lead, patient-centred and clinically driven. Adding to the previous statement and scope they will be having the ability to transform patient and service outcomes at a local level. Healthcare organisations had reported difficulties in achieving their goals. But organisations which apply leadership at different level of management can easily achieve the organisations objective because the staff and employees understand their organisation and become an effective leader toward achieving the objectives. The benefit of studying leadership in healthcare help the staff and their organisations with the support of learning organisation culture to explore the challenges and opportunities to influence policy that impacts on patient and service outcomes, enhancing staff knowledge, skills and qualities, develop the skills to manage change in complex and changing health care settings, develop project management skills and implement a


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change management project. Those benefits can’t be developed only by management studies. It’s important to understand health care organisation concept of work as well as theories of leadership and management including governance, strategic management and stakeholder engagement. Moreover understanding yourself as a leader and improve your personal leadership knowledge, skills and qualities by having the exposure to learn about leadership and management approaches,

narrative

analysis,

emotional

intelligence

and

effective

leadership. Develop the skills needed to lead change and make quality improvements in care services is not only bounded for the healthcare sector but it is also expanding to cover other area of business like logistics , technology , real estate , applications , research and development , aviation and trading. It’s clear that all other sectors are dealing with clients, customers, product, services and customer relations. No matter what are sector is dealing with all have the same core. Studying leadership theories and implement the learnings outcomes will place any staff, manager or CEO in a strong position to take on a leadership role and to further progress his career within the field of his organisation business. It has been reported from professionals who been studying leadership how their leadership development went hand in hand with the work-based and work- related learning that they have undertaken. The gained leadership skills have been enhanced through application of learning within their own organisation. Self-assessment of their own role as leader has revealed an enhanced level of understanding about the context of the organisation, decision-making, strategy development and implementation.

Furthermore

they

learnt

how

strategic

planning

is

undertaken within their own organisations. "What is leadership?" and how can I be a successful leader? Those questions are raising when we hear the term of Leadership. Leadership means different things to different people around the world, and different things in different situations. For example, it could relate to community leadership, religious


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leadership, political leadership, and leadership of campaigning groups. According to Dwight D. Eisenhower Leadership is the art of getting someone else to do something you want done because he wants to do it? It has been agreed that to be an effective leader you shall be able to demonstrate the following: 

Creates an inspiring vision of the future.



Motivates and inspires people to engage with that vision.



Manages delivery of the vision.



Coaches and builds a team, so that it is more effective at achieving the vision.

Businesses,

government

organisations,

non-profits,

and

educational

establishments need leaders who can effectively navigate complex, changing situations and get the work done. The questions that need to be asked at the organizational level are: who do we have, what do they need to do, and are they equipped to do it? CCL conducted a research study to determine if the existing level of and type of leadership skills are sufficient to meet organizational requirements. The study was designed to address the following questions: • What leadership skills and perspectives are critical for success now and in the future? • How strong are current leaders in these critical skills and perspectives? • How aligned is today’s leadership strength with what will be the most important skills and perspectives in the future? A leadership gap or shortfall may have one of two causes: when leaders are focused on the right abilities, but haven’t sufficiently mastered them, or when leaders are not focused on the right skill areas. The first is a matter of degree; the second is a matter of material. Either can be a problem in both the shortand long-term. Organizations (and individual leaders) want to avoid a discrepancy between areas of strength and areas of need; however, the figures


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indicate that organizations today are experiencing a current leadership deficit and can expect a leadership gap in the future. Seven leadership skills are the most important now and in the future, which are: leading employees, strategic planning, inspiring commitment, managing change, and resourcefulness, being a quick learner, and doing whatever it takes. Today’s leadership capacity is insufficient to meet future leadership requirements. The four most important future skills — leading people, strategic planning, inspiring commitment, and managing change — are among the weakest competencies for today’s leaders. The leadership gap, then, appears notably in high-priority, high-stakes areas. We are reaching a critical point where we shall ask ourselves how organisations can build a strong leadership strategy. For organizations to build leadership strength, they need to identify what elements of leadership are required and valued in the organization and for what roles. Modifying or customizing an organization’s competency model may be a needed and valuable task as organizations build a leadership strategy and create development initiatives; however, the following 10 skills and perspectives have been identified and refined though research and work with leaders and organizations: 1- Balancing work priorities with personal life so that neither is neglected. 2- Being a quick learner, adaptable, decisiveness and inspiring. 3- Compassion and sensitivity by showing understanding of human needs, remaining calm during difficult times. 4- Confronting people and Doing whatever it takes– persevering under adverse conditions. 5- Employee development by coaching and encouraging employees to develop in their career. 6- Leading people, managing change and managing one career by using professional relationships, directing and motivating people.


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7- Participative management by involving others (such as listening, communicating, informing) in critical initiatives. 8- Resourcefulness – working effectively with top management. 9- Respecting individuals’ differences, Self-awareness by recognizing personal limits and strengths. 10-

Strategic planning– translating vision into realistic business

strategies, including long-term objectives We are looking to identify what are the criteria of successful leadership and leader?

Of Seven skills were identified as most critical for success in

leadership, now and in the future, which are: 1. Leading people. 2. Strategic planning. 3. Managing change. 4. Inspiring commitment. 5. Resourcefulness. 6. Doing whatever it takes. 7. Being a quick learner. Leaders who are effective in each of these areas, then, have strengths that are needed and will continue to be needed by organizations in the years to come. Those whose strengths lie primarily in the other areas will have significant learning to do to remain as relevant and effective as their peers who have demonstrated the most-desired competencies Leadership is not hard context but at the same time and after determining what the criteria of a successful leader are, we shall be able to present the leadership skills, but is there a deficit or gap in current leadership? Before we could determine the extent to which today’s leaders are equipped for tomorrow’s challenges, we needed to measure the current strength of


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leadership. In other way are people were demonstrating the leadership skills that are most needed by organizations. Looking back into CCL research the results showed that leaders lack the skills they need to be effective today. The study found that for all 10 competencies, the current strength is not sufficient for effectiveness in leadership roles today. This holds true across countries, industries, and organizational levels including Middle East Countries. Among the top five needs — inspiring commitment, strategic planning, leading people, resourcefulness, and employee development — only resourcefulness is a “top ten” skill. In other words, the majority of the competencies rated important for organizational success are not the leadership skills at which their managers perform the best. This is what calls, “the current leadership deficit.” So, even if nothing were to change in the future, today’s leaders are not as skilled as they should be to effectively manage current challenges. Bear in mind that in 2009, leaders may feel even less capable in these key ranges. The CCL study was piloted prior to the dramatic economic recession in 2008; so recent occasions likely have required even more of leaders. It might be particularly interesting to return to the financial sector for further research. As a conclusion and a result leaders are not adequately prepared for the future. Today’s leadership capacity is insufficient to meet future leadership requirements. This finding is consistent across countries, organizations, and level in the organization including Middle East countries. The four most important future skills — leading people, strategic planning, inspiring commitment, and managing change — are among the weakest competencies for today’s leaders. The leadership gap, then, appears notably in high-priority, high-stakes areas. Other areas where there is a significant gap between the needed and existing skill levels are: employee development, balancing personal life and work, and decisiveness. These areas are flagged below as “key gaps”. Contrariwise, these data show that many leaders’ strengths are not in areas that are most important for success. Organizations report greater bench strength in areas of building and mending relationships, compassion


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and sensitivity, cultural adaptability, respecting individual differences, composure, and self-awareness. In organizations where this is the case, sufficient skill-level has been established in these areas and further largescale efforts to boost these areas are unnecessary. Only four areas were considered to be “on-track,” with the current level of strength matching the level of importance: being a quick learner, resourcefulness, participative management, and doing whatever it takes. In conversations, it’s clear that there is a requirement as never before to grow leaders in organisations who connect with others, who collaborate easily and well. Who foster dialogue and joint problem solving on the big issues that confront us in the next decades? Who break down silos, transcend organisational boundaries, who reach out to stakeholders inside and outside of their organisations, and embrace change. In Middle East Countries like Jordan and Sudan especially Gulf Countries like United Arab Emirates, Saudi Arabia, Oman and Qatar have a workforce which is incredibly diverse. Research on leadership in Middle East region distinguished feature of leaders who already stand out from their colleagues, is that they create the compelling clarity and vision needed to bring the organisation staff that they lead together to achieve outstanding business results. As we nurture leaders for the challenges of 2030 and beyond, in the Middle East there is a particular requirement to lead diverse workgroups with different ethnic backgrounds and beliefs. And with the massive changes in age profile of populations of most countries in the region, with high percentages of the population below 25, the current leaders will need to be able to integrate the energy, hope and digital savvy of young employees with the wisdom and experience of the established workforce. They need to build bridges of understanding and co-operation between these generations. The respect of cultural traditions, should be helpful. This result drive us to ask another question. Is leadership in Middle East is Different than elsewhere? Or in other words what is the differences between


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leadership criteria in Middle East than other countries and regions in the world? In ‘Lift Off’, Hay Group’s landmark study of leaders in the Middle East, they found there was a reluctance on the part of leaders in Middle East region compared with leaders elsewhere in the world, to delegate and empower. Many leaders were creating an opaque climate, and issuing directives — telling people what to do — rather than providing direction. This carried the risk of employees not wanting to step up and take responsibility in business organisations based in Middle East. We referred to this situation in two different ways one is poor staff engagement or staff resistance. To successfully develop this combination of skills and qualities – and adopt what is, in effect, a ‘post-heroic’ leadership style –leaders in Middle East may need to abandon much of the thinking and behaviour that driven them to the top of their organisations in the first place. But if leaders want their businesses to survive and thrive over the next two decades they have no choice. Unless they dramatically change their leadership style, so their organisations will not lose out in the race for innovation, the tramp to globalisation and the combat for talent. They will be, quite simply, unsustainable. This conclusion has reached after working with Germanybased Company to identify the megatrends they believe will affect organisations and their leaders greatly over the coming decades and analysing the implications of each at a corporate, organisational, team and individual level. Organisations will have to radically adapt their cultures, structures, systems and processes in order to survive the new world order – and managing in matrix structures, where information flows around the organisation and around the globe in a way that renders traditional hierarchies and reporting lines redundant, is one of the biggest challenges. Leaders will have to manage through influence rather than authority, which may not come easily to many. Indeed, the demands the dramatically changing business climate will have on leaders at a cognitive, emotional and behavioural level will be unprecedented.


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Leaders will have to be multilingual, flexible, internationally mobile and adaptable. But, most crucial of all, they must be highly collaborative and have strong conceptual and strategic thinking skills. While globalisation is unstoppable, therefore, its progress won’t be smooth. Organisations need to be aware of and sensitive to the changing political and economic sensibilities in different countries – particularly emerging and developing economies – which could reduce global interdependence and accessibility, at least in the short term. What’s more, while consumption patterns among the new middle classes are converging, the values of those in emerging nations may differ widely from those in the West. In practical terms, this means that international companies need to adapt their global strategies for local markets – a process that will be helped by fostering local participation in decision-making, having more culturallydiverse leadership teams and encouraging more cross-country and crossfunctional collaboration. They will also need to be more agile, as the best global companies operate like a flattened matrix, where information and authority flow in all directions. The strategic thinking and cognitive skills leaders will need to navigate this new world order are unprecedented. Good implementation and execution are no longer enough – if, indeed, they ever were. Also, the task is so enormous that it is beyond the power of one single individual to accomplish, making collaboration among a range of different people essential even at the stage of conceptualising challenges. What globalisation second edition makes abundantly clear is that the days of one or two ‘heroes’ at the top of organisations dictating strategy are well and truly over. So, as well as being multilingual, flexible, internationally mobile and adaptable, and culturally sensitive, leaders will also have to be collaborative and good conceptual and contextual thinkers. Additionally, they will need the ability to lead diverse teams over which they may have no direct authority and to find new ways of engendering personal loyalty in an environment where the old loyalties


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between employer and employee are declining due to the distance between them. Industrial countries and cities like Saudi Arabia

(King Abdullah

Industrial City) , United Arab Emirates (Dubai Industrial Park (DIP) , Khalifa Industrial Zone Abu Dhabi (KIZAD) , Ras Al Khaimah Investment Authority (RAKIA)), Qatar (Qatar Petroleum) , Egypt ( 10th of Ramadan Industrial Zone) , Jordan (Aqaba Freehold Industrial Zone) and more industrial area’s in the region will suffer skills shortages and pressure on the welfare system, and migration will increase – not just from the more to the least populous countries, but also as a result of armed conflicts, disasters and environmental problems. However, the ‘brain drain’ will increasingly turn into a ‘brain cycle’ as growing numbers of migrants return home and use their new skills to accelerate local development. But talent will continue to be at a premium and retaining employees with key skills will be a challenge. Indeed, for organisations this means that the ‘combat for talent’ will continue to rage, with effects on their innovation capability. But they have an unprecedentedly diverse pool of potential employees to draw on, and will have to work hard to attract, integrate and develop international migrants, older people, women and others with ‘caring’ responsibilities. This will mean introducing family-friendly and age-appropriate employment models, along with educational and development programs – not least those designed to transfer knowledge between different generations. A leadership strategy that encourage Talent Management is required to face this types of business challenges. Leaders will need to understand, lead, integrate and motivate teams of increasingly diverse employees. Fostering inter-generational and intercultural teamwork is essential, as is finding ways to engender commitment and loyalty among people of different ages, from different cultures and with different values. Leaders will also have to adapt their organisations in order to encourage more women and other ‘minorities’ into leadership positions. Organisations and their leaders face a hard, but not impossible, challenge, as


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those companies already adapting or preparing to adapt to the new world order demonstrate. And, as ever, the ‘Best Companies for Leadership’ are in the vanguard of post-heroic leadership approaches. For example, the Top 20 are looking everywhere for leadership, innovation and ideas – not just up the hierarchy. They are becoming more effective by ensuring the diversity of their leaders and workforces reflects the growing diversity in their markets. And they are improving their cross-cultural leadership and collaboration accordingly. They are also more socially and environmentally responsible than their peers, and ensure their employees are able to strike a good balance between work and the rest of their lives. But even their journey has just begun. Adapting to a world being rapidly reshaped by these six megatrends is like entering uncharted territory. But organisations have to push on: there is no alternative. Old structures and leadership styles just won’t cut it any longer The term emotional intelligence is raising as an important element of successful leadership, and it had been integrated as one of the factors that lead organisation to be better in performance and outcomes of any business or project. There is a difference between the definitions of business intelligence and does your business have an emotional intelligence? To read more about the relation between business and emotional intelligence read it on Does Your Business have Emotional Intelligence? The United Arab Emirates is emerging as the business capital of the Middle East. In this complex, demanding environment, to what extent do the “soft skills” of emotional intelligence matter? In another word what is the importance of emotional intelligence for business sector and how emotional intelligence can enhance leadership style? In a study of 418 leaders living in the region, there is a very strong relationship between emotional intelligence skills and performance outcomes. Scores on the SEI (Six Seconds Emotional Intelligence Assessment) predict over 58% of the variation in critical professional and personal success factors (such as


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effectiveness, influence, relationships, and career status). This means that if you want to get ahead in the Middle East, emotional intelligence is one of the most important capacities to develop There are numerous studies documenting the relationship between emotional intelligence and various aspects of performance, but this is one of the first studies of this kind in the Middle East. The UAE, one of the region’s business centres, is the base for a wide range of businesses led by an incredibly diverse mix of leaders from all over the globe. This study was conducted by Six Seconds (global) and Six Seconds Middle East in partnership with Dubai Knowledge Village (DKV), the region’s first and largest centre for human resource management professionals. Focused on Human Resources, Learning, and Leadership, the 450 business partners form part of a l ong-term economic strategy to develop the region’s talent pool and accelerate its move into acknowledge-based economy. DKV is part of TECOM Investments, one of the major economic engines of the region The Performance scale was developed from a questionnaire Six Seconds has used for previous research and expanded for the purposes of this study. Using a 5-point Likert scale respondents rated themselves on 42 items related to: Effectiveness (completing the right work in the right timeframe) Influence (engaging others in ideas) Decision making (accurately evaluating options) Career (growing professionally, both in skills and revenue) Relationships (building mutually supportive alliances) Finance (creating prosperity) Health (maintaining physical and mental fitness) Quality of Life (living in a fulfilling manner)


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Family (developing caring and connected relations) Respondents are asked to rate their agreement with a series of statements, such as, My choices are effective , People come to me to get the job done ,I have a strong network, My career is progressing smoothly and I am financially secure There is a very strong relationship between emotional intelligence and performance; Avery large percentage of the variation in performance is predicted by EQ, especially for entrepreneurs. This finding suggests that the skills of emotional intelligence are Critical for professional success at all levels, and even more critical for those creating new enterprises. All the aspects of performance in this study can be predicted by emotional intelligence scores, but there is a great deal of variation in the strength of that correlation. The performance factors most strongly predicted by EQ are Decision Making, Effectiveness, and Influence. These outcomes are critical to leadership, suggesting that emotional intelligence is most important in this domain. In short: It appears that leaders who develop greater emotional intelligence are more likely to succeed. To be continued,

About the Author: Dr.Hisham M Safadi (Hisham Safadi ) BDS & MSc Leadership and Management in Health Care Practice form the University of Salford where his Master dissertation was in the effect of Emotional Intelligence on improving Dentistry care in Middle East. He was born and raised in the Emirates of Ras Al Khaimah, United Arab Emirates. Dr.Safadi had start his professional career as a dentist then turn to the field of managing medical facilities and investment management. His main interest is business start-up, leadership and mentoring. Currently he is leading several projects in Manchester that is related to enhance patient experience and improving leadership style through education. Twitter: @hishamsafadi Read more from the Author:


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Leadership in Dentistry Opportunities and Threats. Review 2008 by Dr.Hisham Safadi Why shall Healthcare Providers care about Patients Payments and Finance? 12 successful elements for Business Start-ups Leadership. How to Say Thanks for Your Business?

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Why #Leadership in Middle East #Business Sector is important? A Critical review on how implementing leadership in business enhance sustainability. By: Dr.Hisham Safadi, 2015  

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