Expanding into APAC? What to Know About Operations & Supply Chain Leadership

Due to a combination of commercial & geopolitical considerations, US & Europe-headquartered multinational companies are looking to diversify their operational footprint in Asia Pacific beyond China to additional Asian manufacturing markets.

To do this successfully & sustainably, identifying the right talent for the top supply chain roles is crucial. However, many companies with headquarters outside APAC often lack an understanding of the key differentiators between APAC and broader global supply chain talent. As a result, these organizations are often unprepared to recruit, develop, and retain the region’s operations and supply chain officers (OSCO) top talent.

Additionally, as supply chains evolve in a post-pandemic world, it is imperative for global organizations to leverage their APAC supply chain leadership talent to drive innovation and productive disruption around themes like digital, sustainability & diversity.

To understand these differences, Russell Reynolds Associates analyzed proprietary psychometric data for 114 APAC operations and supply chain C-suite leaders and compared this to psychometric data for 874 global (excluding APAC) leaders in equivalent positions. We learned that operations and supply chain leaders in Asia Pacific:

1. Index higher on curiosity, while global leaders are more oriented towards outcomes.
2. Enjoy being in environments where they positively impact other people and society.
3. Are used to more hierarchical environments, and are more motivated by recognition.

APAC operations & supply chain leaders index higher on curiosity, while global leaders are oriented towards outcomes

Global operations and supply chain leaders are more aligned to outcomes and results, while those in Asia Pacific index higher on curiosity and learning orientation.

Russell Reynolds Associates found that 65% of global OSCO leaders achieved high scores in ambition, while only 44% of APAC OSCO leaders achieved high scores in this category. Alternatively, 68% of APAC leaders achieved high scores in learning approaches, while only 54% of global leaders fell into the high score category. APAC leaders also outpaced global leaders in terms of inquisitiveness, scoring 14 percentage points higher in this category (54% versus 40%)

Figure 1: Ambition vs. Inquisitive: Global vs. APAC OSCO Leaders

^{Source: RRA APAC Operations & Supply Chain Officers Psychometric Study, n = 114 (APAC) & n = 874 (global)}

Curiosity is an important leadership competency for operations and supply chain officers, especially as it relates to questioning the status quo and asking disruptive questions of current supply chains.

There are multiple examples of supply chain innovation being driven first in APAC within large global multinationals. For example, a large personal care US-HQ FMCG player in China drove its e-commerce channel share from less than 5% in 2017 to over 35% in 2022 through direct partnerships with Chinese platforms like JD.com and Tmall.com. This included supply chain aspects like warehouse optimization, process redesign, and systems integration.

An operations and supply chain officer who has worked in Asia and other global regions recounted how he saw a tendency in Asia to disaggregate the supply chain to look for efficiency and effectiveness opportunities at a granular level. This need to “look under the hood” bears witness to a curious mindset. The instinct in the US and Europe is to build, scale, and leverage consolidation services, thus avoiding detail in favor of outcomes.

APAC operations & supply chain leaders enjoy being in environments where they positively impact other people and society

Operations and supply chain leaders in APAC are highly motivated by altruism, with 68% of respondents achieving high scores in this category. This is significantly higher than global operations and supply chain officers, of which only 41% achieved high scores. The inverse of this is also interesting—global leaders were more than twice as likely to achieve low scores in altruism than APAC OSCO leaders.

Figure 2: Altruistic Leadership: Global vs APAC OSCO Leaders

^{Source: RRA APAC Operations & Supply Chain Officers Psychometric Study, n = 114 (APAC) & n = 874 (global)}

This finding is consistent with our other culture studies comparing Asia and the rest of the world. Leaders in APAC consistently rank higher in “Power Distance,” which signifies leaders who place themselves on a pedestal vs. those who position themselves as relatable equals to their direct reports. This, in turn, puts subtle pressure on leaders to “protect” their subordinates.

We also see this altruism reflected in heightened attention to environment concerns. APAC leaders are much more likely to focus on sustainability parameters than their global counterparts. As we learned in our 2022 Divides & Dividends: Leadership Actions for a Sustainable Future report, seven out of ten next-generation Indian leaders have taken on three or more job responsibilities to improve environmental and social outcomes. This is significantly higher than the global average of 40%. Reinforcing this, a 2020 survey conducted by EY found that 67% of APAC respondents are taking steps to bring more sustainability to supply chains, compared to 52% of global respondents.

APAC operations & supply chain leaders are used to more hierarchical environments, and are more motivated by recognition than their global counterparts

APAC operations & supply chain leaders are more than twice as likely to be highly motivated by recognition than their global counterparts (51% vs. 22%).

To that point, it’s crucial to ensure that specific opportunities are reserved for and evenly distributed across APAC, as recognition is especially motivating to leaders in this region. A natural affiliation for similar perspectives and the fact that, despite recent increases, the share of APAC leaders in global businesses is still low may lead to a lack of acknowledgement for APAC leaders’ accomplishments.

Another manifestation of the "Power Distance,” (referenced above) is that employees in APAC tend to look at their leaders for guidance and validation, deliberately seeking recognition from their leader, who often occupies a “parental figure” position in an organization. This level of deference frequently confounds leaders from outside the region. External leaders who are unfamiliar with this practice often mistake numerous check-ins during execution from otherwise competent professionals as lack of confidence or just unwillingness to “get on with it.” Instead, leaders working within APAC for the first time should reframe this perception and embrace frequent check-ins, using them to recognize and encourage progress.

Figure 3: Heroic vs Vulnerable Leadership: Global vs APAC OSCO Leaders

^{Source: RRA APAC Operations & Supply Chain Officers Psychometric Study, n = 114 (APAC) & n = 874 (global)}

Authors

• Vijuraj Eranazhath leads Russell Reynolds Associates’ Operations & Supply Chain Officers capability in Asia Pacific. He is based in Mumbai.
• Dheeraj Vashista leads Russell Reynolds Associates’ Leadership Advisory group in Asia Pacific. He is based in Gurgaon.
• Christina Wilson leads Russell Reynolds Associates’ Operations & Supply Chain Officers capability in Australia. She is based in Melbourne.
• Aishwarya Ahuja leads research for Russell Reynolds Associates Operations & Supply Chain Officers capability. She is based in Mumbai.
• Atreya Brindavanam is a member of Russell Reynolds Associates’ Leadership Advisory group. He is based in Gurgaon.