This is part 3 of enter the dragon, a whitepaper series exploring the new talent challenges for asian economies.

1. MAking
the shift:
quAlity And
serviCe in the
new eConoMy
Cheap goods fast: that was the basis of the
Asian manufacturing revolution. But the shape
of the economy is fast evolving. Making the
move towards better service and higher quality
requires a new type of ‘harmonious’ thinking, and
a different approach to workforce strategy.
Anthony rAjA devAdoss

2. 2 | enter the drAgon | MAking the shift: quAlity And serviCe in the new eConoMy
A diversifying eConoMy. Nobody is
predicting the end the manufacturing boom in Asia, yet.
The amount and speed of production is The list of impressive data for China goes That said, there are changes happening
going to take an awful lot for any other region on, and on. And clearly, the flow-on across the Asia-Pacific economy. A growing
to beat, and the underlying mechanisms effects across the region are significant, as shift towards quality goods and services is
of the manufacturing industry are unlikely Australia’s robust economy and the growing creating new opportunities. However, with
to change to quickly, as evidenced by manufacturing industries of Vietnam and these come some different challenges for
some jaw-dropping facts such as: Indonesia can testify. business in the region.
• China will soon manufacture more steel For any other country in the world, the
than the entire world combined manufacturing statistics for China are
just simply inconceivable. While China’s
• Chinese exports hit $us162 billion in government would be happy to see some
june and $US874 billion in the first half of lower export figures in favor of a greater
the year, both up nearly 20% year-on-year focus on the domestic economy, even those
analysts that are predicting a downward trend
• in 2010, China made 64% of all toys,
in Chinese dominance in the manufacturing
and $US4 out of every $US10 worth of
sector know that significant change will likely
knit apparel exported in the world
take a generation or more—nothing drastic is
going to happen quickly.

3. 3 | enter the drAgon | MAking the shift: quAlity And serviCe in the new eConoMy
is the Cost AdvAntAge eroding? Wages across many
Asian countries are still low by the standards of developed nations. Therefore,
the idea of quality (and expensive) goods in these economies has been
poorly understood—few people domestically could afford to buy them.
Much of the manufacturing boom has been is increasingly moving to Bangladesh and around one-trillion dollars) come from small-
built on the promise of low-cost, disposable, Indonesia, as well as other developing to-medium-sized businesses. Their focus is on
short-term goods. However, as wages begin countries outside of Asia. quality and speed of delivery. They use the
to rise, some of the advantage of outsourcing best technology and pay their workers well to
jobs and processes to these developing Low-cost production can only be maintained deliver the leanest possible production line.
markets is beginning to be questioned. In while wages and skill-bases are low. As
fact, Chinese companies are already moving greater opportunity has entered the region, In almost every Asian market, competition is
jobs within the country to access lower wages this wave of increasing costs is spreading, increasing, fuelled by both local and foreign
in new provinces. China’s biggest corporate and ultimately new competitive advantages businesses. Skills shortages are a constraint
exporter, Hon Hai Precision Industry Co, need to be created. Increasingly, this is taking on most firms in the region, and are one of
employs about a million workers in China the shape of producing higher-value goods the major drivers of higher costs. Jobs can
to make Apple iPads, Hewlett-Packard that rely on productivity and technology continually move to lower-cost countries,
computers and Samsung Electronics panels, rather than simply on cheap labor. and for some industries and positions this
and is opening up new factories in low-wage will make sense. However, efficiencies and
Countries such as Germany have already smarter ways of working will also be needed.
areas of inland China.
recognized this inevitable shiftand are looking
And some of China’s jobs are being moved to to capitalize on the opportunity. Many of
other countries entirely. Clothing production Germany’s locally made exports (worth

4. 4 | enter the drAgon | MAking the shift: quAlity And serviCe in the new eConoMy
A Culture thAt vAlues quAlity. Building
a workplace culture that values and promotes quality will
be key to increasing the quality of goods produced across
Asia, but also to developing a greater focus on service.
The growing need for services domestically advantage for India and they are expanding Unhappy employees deliver poor increase harmony between the organization
has led to the recognition that there are skills these lessons across multiple industries. performance, and particularly, poor customer and the customer.
shortages in this area across the region. India service. By focusing on ‘harmonizing’ the
has of course developed a customer-service- For companies in other parts of the world relationship between customer, employer and Some deeply held cultural beliefs can at first
led mindset and captured market-share, most that want to follow this example, developing employee and seeing how each affects the be barriers to change, but understanding
notably but certainly not limited to, the call a company culture that values and sustains other, HR practices can target specific issues their intent and how they can be
center industry. quality customer service will require them of concern for employees to improve their incorporated into new ways of thinking and
to think differently. After all, a product or ability to provide better quality goods and behaving is increasingly a challenge that
For a thankfully short but significant period, service isn’t good value unless it does what it services. globalized businesses must rise to. Being
India’s call centers were becoming the promises. Cost and value are not the same. aware of the potential barriers to the raising
source of customer frustration and attrition, Perhaps most importantly, HR will need to of quality and service standards can and will
worldwide. Turning this around required how the concept of harmony can help focus on getting the balance right between provide insights to overcome them.
a new focus on quality and empathy, as raising potential problems in the organization
The Confucian concept of ‘harmony’ provides
well a different approach to management with maintaining harmony. The two need
a potentially valuable tool for business
engagement with customer issues right up not be mutually exclusive, and in fact they
in the region looking to enhance quality
the organizational chain. While problems can naturally complement each other. The
and service. By looking at the value chain
undoubtedly remain, customer service raising of customer issues with management
between the customer, the employer and the
is swiftly becoming a major competitive can instead be framed as an opportunity to
employee, it’s possible to understand how
business might be done differently.

5. 5 | enter the drAgon | MAking the shift: quAlity And serviCe in the new eConoMy
eMBrACing diversity to iMprove skills.
To get the mix of these issues right, businesses will need to access
the kind of talent that can make positive change happen, quickly.
This will mean being very selective about Diversity of this magnitude in a rapidly Hiring top talent is important, but an
the personnel that will be recruited into growing market can either hinder or enhance organization’s talent portfolio must be
this dynamic environment and hiring those business innovation, depending on how it balanced—the challenge is always to get the
who can that contribute immediately to is managed. The potential for innovation, right person in the right job at the right time.
transformation. Finding those individuals that growth and new ideas that comes with a Workers have different benefits to offer in
already have the right skill set is going to be diverse workforce is enormous, provided that terms of age, experience, skills, education,
a challenge in such a tight talent market, and its value is recognized. and flexibility, so businesses need to balance
this is where flexible and contingent workers long-term goals with day-to-day pressures
are likely to be needed. Diversity is not just about ethnicity and when making recruitment decisions.
gender, it’s also about varied levels of
A focus on creating a diverse workforce can experience and the kinds of skills that Diversity is also a long-term strategic project.
also be helpful. different people bring to the table. To It can’t be achieved overnight, nor should
capture the benefits of a truly diverse it be looked at as an end in itself. A diverse
“Asia” is hardly a homogenous region. The workforce, employers must look at each workforce is about getting the right mix of
vagaries of different markets within markets, potential hire, based on the skills it needs to ideas and experience, and if companies
of local and fragmented regulation and execute its strategy. If increased quality is the are looking to make major leaps forward in
protocols can be incredibly complex, not to aim, who and where are these skills going to quality, the specific skills required to do that
mention the convergence of many cultures come from? must be the first consideration.
under single organizational banners.

6. 6 | enter the drAgon | MAking the shift: quAlity And serviCe in the new eConoMy
As the region’s eConoMiC BAse becomes
more elaborate, a greater focus on quality over cost is inevitable.
Asia has fundamentally been a cost-intensive required. And to ensure the right people stay
market, and that is evolving to a quality- on in organizations to maintain quality and
intensive market. The challenge for the service, a culture that values and promotes
region is that other developed nations this will be needed.
already have the experience, educated
workforce and sometimes the global reach The Asia-Pacific region has some cultural
that’s required to execute a ‘quality’ and advantages to execute the move towards a
‘service’ strategy. quality and service focus in business. How
this is interpreted and the speed at which the
To make the shift to quality goods and right talent is accessed to make this happen
services, and to do so successfully, new will make all the difference.
approaches to talent and diversity will be

7. this is pArt 3 of enter the dragon, A whitepAper series exploring
the new tAlent ChAllenges for AsiAn eConoMies.
ABout the Author
Anthony RAjA DevADoss is currently the vice President—APAC with the
outsourcing & Consulting Group of Kelly services. From network services,
engineering to e-business solutions, Anthony Raja has worked in both India and
Malaysia, within technical roles to the Chief executive officer. he has received his
Bachelors degree in science and his MBA in Marketing & Postgraduate Diploma
in Computing. he holds membership in various local and international associations
such as the MIM, human Capital Institute & Association of Career Professionals International. he is
the head of Policy enablement & Government Liaison with outsourcing Malaysia and a member
of the Industry Advisory Board for the Graduate school of Business, UnIRAZAK. he has been
recently appointed to the hR Capacity Building task force by the Ministry of human Resources,
Govt of Malaysia. Anthony is also a member of the hRoA APAC Chapter Board.
http://my.linkedin.com/in/anthonyraja http://twitter.com/anthonyraja
ABout kellyoCg
KellyOCG is the Outsourcing and Consulting Group of Fortune 500 workforce solutions provider,
Kelly Services, Inc. KellyOCG is a global leader in innovative talent management solutions in the
areas of Recruitment Process Outsourcing (RPO), Business Process Outsourcing (BPO), Contingent
Workforce Outsourcing (CWO), including Independent Contractor Solutions, Human Resources
Consulting, Career Transition and Organizational Effectiveness, and Executive Search.
Further information about KellyOCG may be found at kellyocg.com.
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