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The Gulf Arab
    The Gulf Arab Leadership Style
    A source of global competitive advantage


    Leadership Style
        A source of global
      competitive advantage




1
The Gulf Arab Leadership Style
                     A source of global competitive advantage




Authors
Professor William Scott Jackson
Scott Druck
Bashar Kariem


Acknowledgements
The authors would like to thank the postal services and
other parties who provided feedback and comments
on the complex nature of measuring performance in
the postal sector and the wide variety of socio-political
contexts within the G20. The feedback and advice from
various parties has proved valuable in producing this
report and will certainly be useful for future editions.


About Oxford Strategic Consulting
Oxford Strategic Consulting provides bespoke research,
strategic advice and implementation support to
corporations, organisations and governments worldwide.
Blending academic insight with commercial expertise,
Oxford Strategic Consulting helps its clients define and
achieve their strategic goals.
To discuss any aspect of this report
or to order further copies, please
email reports@oxfordstrategicconsulting.com




Oxford Strategic Consulting
34 St. John Street, Oxford UK



    All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitteed in any form by any
                   means without a valid paid-for license or the prior written permission of Oxford Strategic Consulting.
    Whilst every effort has been made to ensure the accuracy of the information contained in this report, the authors and publisher
       accept no responsibility for any errors it many contain, or for any loss, financial or otherwise, sustained by any person or
                                                    organisation using this publication.




2
The Gulf Arab Leadership Style
                        A source of global competitive advantage



Contents
Introduction ..................................................................................................................... 4

Is there an ‘Arab Management Style’?.................................................................... 5

The Gulf Arab Management Style: Why bother?..................................................... 6

The Gulf Arab Management Style: Why bother?..................................................... 7

The Gulf Arab Management Style Project:
The Gulf Arab Management Style..................................................................................... 8

The Gulf Arab Management Style: Building Lasting Relationships...................... 9

The Gulf Arab Management Style: Creating Bold Visions...................................11

The Gulf Arab Management Style: Leading as Head of the ‘Family....................13

The Gulf Arab Management Style: Treasuring Time.............................................15

The Gulf Arab Management Style: Honouring Responsibility.............................17

The Gulf Arab Management Style Trading with Respect....................................19

The Gulf Arab Management Style: Being the Best..............................................21

The Gulf Arab Management Style: Continuously adapting..................................23

Example Training Programme..................................................................................25

Next Steps: Your opportunities.....................................................................................26




3
The Gulf Arab Leadership Style
                A source of global competitive advantage



Introduction
Oxford Strategic Consulting is delighted to present its latest research into the Gulf Arab
Management Style. This contains important insight into using the Gulf Region’s unique attributes
and capabilities to deliver sustainable competitive advantage.
The Gulf Region is an increasingly important driver of global economic growth. It is a key trading
hub, with rapid growth in financial services, technology and other industries in addition to the
major petrochemical resources. With an increasingly educated, young and ambitious population,
the Gulf Region will only gain strength and importance on the global economic stage.
The Gulf is also home to unique cultures and peoples, with a correspondingly unique set of values,
beliefs, actions and behaviours. It follows that these unique attributes create a Gulf-specifi c way
of doing business, yet this has never been studied or documented. It is assumed that Western
management styles and practices are used and are appropriate in the Gulf Region, but this is not
necessarily the case.
Research shows that organisations can achieve sustainable competitive advantage through
owning and deploying scarce but valuable resources that are difficult to copy. Human capabilities
are extremely difficult to copy, often being interwoven with organisational history and culture,
management style and many other factors that are difficult to replicate. Human capabilities are one
of the best strategic differentiators.
So if we can identify and replicate the Gulf Management Style, we would have a key source of
competitive advantage for Gulf-owned global and local organisations.
However, the Gulf Management Style has not been properly defined. Without a clear
understanding of it, there is a risk that this style will become dissipated and a source of strategic
competitive advantage lost.
OSC therefore performed a research study to establish whether a distinct Gulf Arab Management
Style exists, whether it adds value to Gulf businesses, and how it can be replicated and developed
to deliver further success. This paper presents the findings of the research, as well as some practical
recommendations to build on the unique capabilities shown by successful Gulf Arab Managers and
Leaders.
The result is a clearly defined framework for the Gulf Management Style, from which we have
built a series of leadership and management development programs, change initiatives, strategy
workshops and other resources that help Gulf companies create value and build strategic
advantage.
OSC welcomes your comments on this paper and the practical advantages that the Gulf
Management Style offers. You will find contact details at the end of the document.
We hope you find this valuable and look forward to hearing from you.




Professor William Scott-Jackson
Oxford, UK May 2012



4
The Gulf Arab Leadership Style
        A source of global competitive advantage



Is there an
‘Arab Management Style’?


                   Arab Management
             Levant
                         Style    Maghreb
         Management                                Management
            Style                                     Style
                           Gulf Arab
                       Management Style
       KSA        Qatar     Bahrain    Omani
    Management Management Management Management
       Style      Style      Style      Style

               Emirati Management Style
      Abu Dhabi                 Dubai                    RAK
     Management              Management               Management
        Style                   Style                    Style


5
The Gulf Arab Leadership Style
       A source of global competitive advantage



The Gulf Arab Management Style:
Why bother?

          The competitive market
                                                   Firm C
      Firm B             Firm X
                      Competitive
                       Advantage
                                                        Firm A
    Firm D

         The ‘X’ factor: A differentiating capability
    Valuable (in relation                   E.g. innovative capacity,
      to the market)                      ability to exploit knowledge
            Rare                                    The Gulf Arab
      Hard to imitate                             Management Style
     Hard to substitute
       Owned by you

6
The Gulf Arab Leadership Style
                A source of global competitive advantage



The Gulf Arab Management Style:
Why bother?
    •  he Arab Management Style has not been widely studied
      T
    •  ny capability that is distinctive, valuable and hard to copy can be a source of
      A
      real advantage
    • t has elements that would be considered as advanced in Western management
      I
    • t could have particular relevance when dealing with a downturn
      I




The Gulf Arab Management Style
Project:
PURPOSE
   •  iagnose, for the first time ‘the Gulf Arab Management Style’
     D
    •  s seen by the Managers – aspirational, positive, valuable
      A
    •  reate a range of training programmes for Ex-pat and Gulf Arab Managers
      C
    •  romote and market the Gulf Arab Management Style worldwide
      P


METHOD (starting with Emirates and Dubai to date)
  •  tructured interviews with a selection of Senior Managers
    S
    •  urvey and interview staff and students
      S
    •  eview previous writings and theories: History, culture, management
      R
    •  nalysis of results to create a definition of the Gulf Arab Management Style
      A
    •  ropose and challenge in forums, workshops and organisations
      P
    •  xtend data collection into Saudi Arabia, Qatar, Oman, Bahrain, Kuwait, Yemen
      E
      etc




7
The Gulf Arab Leadership Style
              A source of global competitive advantage



The Gulf Arab Management Style
                                          Trading
                                           With
                                          Respect
                     Being                                    Continuously
                    the Best                                    Adapting

            Building                    Culture                      Honouring
             Lasting
          Relationships                  Islam                     Responsibility
                                        History
                    Creating                                   Treasuring
                      Bold                Leading                 Time
                    Visions              as Head of
                                        the ‘Family’


Drivers of the Gulf Arab
Management Style
History                          Culture                          Islam
Recent past: boom and bust       Hospitality                      What the Quran says about:
Harsh desert nomad life          Family and tribal loyalty         - The value of work
Pearl fishing and impact of      Curiosity and perseverance        - Business and profit
world trade                                                        - Ethics of business
Trade always crucial                                               - Treat others with respect
Always high foreign population




8
The Gulf Arab Leadership Style
              A source of global competitive advantage



The Gulf Arab Management Style:
Building Lasting Relationships


                                       Trading
                                        With
                                       Respect
                    Being                                Continuously
                   the Best                                Adapting

           Building                  Culture                    Honouring
            Lasting
         Relationships                Islam                   Responsibility
                                     History
                   Creating                               Treasuring
                     Bold              Leading               Time
                   Visions            as Head of
                                     the ‘Family’


    “It is vitally important that people be loyal to their leaders, but
    it is even more important that a leader be loyal to his people. A
    leader and his people share a bond of faith in each other, which, if
    broken, is extremely difficult to fix.” H.H Sheikh Mohammed bin Rashid
    al Maktoum




9
The Gulf Arab Leadership Style
                 A source of global competitive advantage



     “I apply not my sword where my lash suffices, nor my lash where
     my tongue is enough. And even if there be one hair binding me to
     my fellowmen, I do not let it break: when they pull I loosen, and if
     they loosen I pull” Caliph Mu’äwiyah AD 661-680 in Muna :63


     For the Gulf Arab Manager, relationships are extremely important in all aspects of
     life, including business, and the power of relationships sets them apart.
     • Actively seeks to build wide and influential relationships.		
     • Operates in a manner that builds trust in others.
     • Is honest at all times and displays openness to colleagues and customers.
     • Respects other people’s views and customs (politeness).
     • Invests time in maintaining existing relationships.	
     • Supports friends and family in all aspects of life - and gains support from them.
     • Demonstrates trust in others.				
     • Sees long term relationship as more important than short term gain.
     • Values loyalty.
     • Adopts a ‘person-oriented’ rather than impersonal approach to business.
     • Shares knowledge and ‘discloses’ to those in close relationships.
     • Manages conflict




10
The Gulf Arab Leadership Style
              A source of global competitive advantage



The Gulf Arab Management Style:
Creating Bold Visions

                                       Trading
                                        With
                                       Respect
                     Being                               Continuously
                    the Best                               Adapting

            Building                 Culture                    Honouring
             Lasting
          Relationships               Islam                   Responsibility
                                     History
                    Creating                              Treasuring
                      Bold             Leading               Time
                    Visions           as Head of
                                     the ‘Family’


     “The word ‘impossible’ is not in leaders’ dictionaries. No matter
     how big the challenges, strong faith, determination and resolve
     will overcome them…. A leader does not necessarily need to
     be the most intelligent member of his group ... rather he is the
     one with the clearest and most far-reaching vision.” HH Sheikh
     Mohammmed bin Rashid al Maktoum




11
The Gulf Arab Leadership Style
                 A source of global competitive advantage


     “We come from a tough desert environment so we are able to take
     the difficult challenging road to meet our goals. We have a strong
     ability to vision the future and we consider risks as a part of
     implementation, not so much part of the decision itself. Risks are
     always present but should not be an excuse for defeat.” HE Sultan
     Ahmed Bin Sulayem

     The Gulf Arab Manager seeks out and embraces challenge – always taking the
     tough road if it is the right one.
     •  ees the ‘impossible’ as an enjoyable goal (like a mountain to climb or a race to
       S
       run).
     •  reates and communicates a highly-stretching and bold vision for the future.
       C
     •  ets long term goals and demonstrates unerring confidence that these can be
       S
       achieved.
     •  ecognises risks but sees these as implementation challenges, not key decision
       R
       factors.
     •  btains and clarifies information – understands the key decision issue quickly
       O
       without missing anything.
     •  xpects success, but not destroyed by failure.
       E
     •  njoys massive achievement against impossible odds – takes pride in visible
       E
       signs of achievement.
     •  ees any failure as a learning experience but not as personal failure
       S
     •  ries to get many different points of view and perspectives (does rely on single
       T
       source of advice)
     •  as confidence in own decisions and ability to work through any mistake or
       H
       risk.
     •  ptimistic and passionate – to believe in a higher vision with no boundaries.
       O
     •  cts fast to take advantage of opportunities
       A


     “For example, we wanted to compete in modern container world
     so instead of waiting 18 months to build cranes we bought second
     hand from UK in 3 months. “
     HE Jamal Majid Bin Thaniah Vice Chairman, DP World




12
The Gulf Arab Leadership Style
              A source of global competitive advantage



The Gulf Arab Management Style:
Leading as Head of the ‘Family

                                       Trading
                                        With
                                       Respect
                    Being                                Continuously
                   the Best                                Adapting

            Building                 Culture                    Honouring
             Lasting
          Relationships               Islam                   Responsibility
                                     History
                   Creating                               Treasuring
                     Bold              Leading               Time
                   Visions            as Head of
                                     the ‘Family’


     “The relationship between the leaders and the people of the UAE
     is one of the secrets behind the nation’s success…Our leadership
     style is to make the organisation a family with a head whose job is
     to make the family strong and successful but also to look after the
     members of the family.” HE Sultan Ahmed Bin Sulayem




13
The Gulf Arab Leadership Style
                 A source of global competitive advantage


     The Gulf Arab Manager sees the company or their team as like their
     family - with the same obligations and responsibilities to those being led
     and leading.
     •  eads the team as ‘head of the family’ with the same duties, responsibilities and
       L
       authority.
     •  ecognises obligation to colleagues and duty to support, guide and nurture
       R
       team members.
     •  emonstrates strong loyalty to their boss and expect strong loyalty from their
       D
       team.
     • Learn from our fathers’ – respect for experience, age and knowledge.
       ‘
     •  very employee made to feel part of the ‘family’ with obligations and benefits.
       E
     •  eeks to be a strong role model for their people by gaining knowledge and
       S
       guidance from their leader and sharing it freely.
     • nformal constant communications both upwards and downwards.
       I
     •  eeks to get to know the personal issues of their people and help them where
       S
       possible.
     •  onsults extensively to understand the thoughts and feelings of colleagues and
       C
       create a sense of involvement.
     •  alances duties to ‘work family’ with duties to ‘non-work family’ and other
       B
       communities.
     •  as an ‘open door’ policy where people of various levels can gain access to the
       H
       ‘head’ at any time (re majlis).
     •  upports the ‘head’ in public but also say what you really think in private
       S
       without implying disloyalty – it’s your decision but …




14
The Gulf Arab Leadership Style
               A source of global competitive advantage



The Gulf Arab Management Style:
Treasuring Time

                                        Trading
                                         With
                                        Respect
                     Being                                Continuously
                    the Best                                Adapting

            Building                  Culture                    Honouring
             Lasting
          Relationships                Islam                   Responsibility
                                      History
                    Creating                               Treasuring
                      Bold              Leading               Time
                    Visions            as Head of
                                      the ‘Family’


     “Time is the most precious thing we have; if we let it slip away,
     we can’t get it back - there is a lot to be done and little time
     to do it all. Time is not neutral - it is either a close friend or an
     enemy … Waiting has never been our choice in the past, nor is it
     in the present. We are always striving, anticipating the future and
     preparing for it.” HH Sheikh Mohammed




15
The Gulf Arab Leadership Style
                 A source of global competitive advantage


     The Gulf Arab Manager sees time as a precious resource to be utilised and
     enjoyed.
     •  o artificial time boundaries between work and life.
       N
     •  hings have a time that is right – priorities control use of time, not vice versa.
       T
     • mportant to have a view (instinct) on the appropriate timing of things.
       I
     •  ive in the moment (not the future or the past – Sheikh Mohammed says no
       L
       ‘tomorrow’ in our dictionary’).
     •  ime is precious and should not be wasted.
       T
     •  rioritise and maximise use of time – the Gulf Arab Manager manages time to
       P
       maximise achievement.
     •  o for things, be proactive, make things happen but really make the most of
       G
       whatever you’re doing (even relaxation).
     •  anage tensions and pressures on time and potential impacts on others.
       M
     •  romises must be kept (i.e. deadlines) – no excuses.
       P
     •  rocesses and plans are in order to achieve objective, not for their own sake.
       P
     •  on’t over-plan – get on with it and manage problems that arise, design and
       D
       execute in parallel.




16
The Gulf Arab Leadership Style
              A source of global competitive advantage



The Gulf Arab Management Style:
Honouring Responsibility

                                       Trading
                                        With
                                       Respect
                     Being                               Continuously
                    the Best                               Adapting

            Building                 Culture                    Honouring
             Lasting
          Relationships               Islam                   Responsibility
                                     History
                    Creating                              Treasuring
                      Bold             Leading               Time
                    Visions           as Head of
                                     the ‘Family’


     “To hold others responsible for failure is a way of escaping one’s
     own responsibility. Responsibility is a heavy burden and a great
     honour at the same time. Whoever shoulders responsibility must
     be worthy of it.” HH Sheikh Mohammed bin Rashid al Maktoum

     “Coming from the desert, we have a natural sense of responsibility
     for our people and the environment” HE Sultan Ahmed Bin Sulayem




17
The Gulf Arab Leadership Style
                 A source of global competitive advantage



     The Gulf Arab Manager feels a great sense of shared responsibility to
     the family, tribe, company, country and the world including people,
     economy and environment. They feel (and have to feel) a strong sense
     of belonging to their various communities and always aim for sustained
     physical and psychological prosperity

     •  cts responsibly in all aspects of life – work, home and community. Not
       A
       compartmentalised.
     •  akes decisions on the basis of wider responsibilities, as well as ‘business case’.
       M
     •  cts as a role model and encourages others to uphold their responsibilities to
       A
       their people, company and country.
     •  emonstrates a sense of pride in their country and seeks opportunities to
       D
       promote and support it at all times.
     •  ries to balance the needs of different communities to which they belong
       T
       (personal, business, world, environment, nature etc) but without seeing them as
       separate.
     •  lways takes a long-term view to achieve sustainable prosperity.
       A




18
The Gulf Arab Leadership Style
               A source of global competitive advantage



The Gulf Arab Management Style
Trading with Respect

                                         Trading
                                          With
                                         Respect
                      Being                               Continuously
                     the Best                               Adapting

             Building                  Culture                     Honouring
              Lasting
           Relationships                Islam                    Responsibility
                                       History
                     Creating                               Treasuring
                       Bold              Leading               Time
                     Visions            as Head of
                                       the ‘Family’


     “For a dialogue to be fruitful, there must be mutual respect for
     each other’s humanity, culture and rights. A dialogue is not true
     if it does not lead to an understanding of one another.” HH Sheikh
     Mohammed bin Rashid Al Maktoum, UAE Vice President  Ruler of Gulf Arab

     “We are open to other peoples and we are not fearful of
     difference. We know we can deal with all peoples and we know
     how to find out what they want and then give it to them. we



19
The Gulf Arab Leadership Style
                 A source of global competitive advantage


     want tourists, tourists want beaches so we build many kilometres
     for them. We ask them what they want so they will flock to our
     offerings” HE Sultan Ahmed Bin Sulayem, Chairman Gulf Arab World

     “Today the Gulf Arab Manager exemplifies tolerance and a
     blend of cultures that is unique. In order to do the most, and
     best, business they expect to adjust to the customer – whatever
     nationality. They don’t wait for the other person to adjust.” HE
     Jamal Majid Bin Thaniah Vice Chairman, DP World

     The Gulf Arab Manager wants to do business, is open to others peoples’ views
     and not afraid of the differences.
     The Gulf Arab Manager is interested in what others want and strives to give it to
     them if possible.
     •  eeks out solutions that are mutually beneficial.
       S
     •  istens to the needs of customers of all nationalities and cultures in order to
       L
       understand what they want to achieve.
     • s hospitable and friendly to all people irrespective of culture or nationality.
       I
     •  illing to learn from others of all backgrounds and nationalities.
       W
     •  isplays an active interest in other cultures and nationalities.
       D
     •  ulf Arab has always welcomed immigrant merchants and workers and
       G
       recognises their contribution.
     •  he Gulf Arab Manager adapts behaviour to other cultural norms, but without
       T
       sacrificing the fundamentals.
     • s very well mannered - proper behaviour is infectious.
       I
     •  xercises common sense and emotional intelligence.
       E




20
The Gulf Arab Leadership Style
              A source of global competitive advantage



The Gulf Arab Management Style:
Being the Best

                                       Trading
                                        With
                                       Respect
                    Being                                Continuously
                   the Best                                Adapting

            Building                 Culture                    Honouring
             Lasting
          Relationships               Islam                   Responsibility
                                     History
                   Creating                               Treasuring
                     Bold              Leading               Time
                   Visions            as Head of
                                     the ‘Family’



     “A leader must take advantage of the opportunity when he sees
     it, and if the opportunity is not there, he should be prepared to
     make it…. If we were deer and stopped running, we would fall
     prey to lions, If we were lions and stopped chasing, we would die
     of hunger” H.H. Sheikh Mohammed bin Rashid al Maktoum




21
The Gulf Arab Leadership Style
                A source of global competitive advantage


     “We always set difficult challenges – especially if people say we’ll
     never do it or it’s impossible. We are proud of our achievements
     and work very, very hard to be the best” HE Sultan Ahmed Bin
     Sulayem

     The Gulf Arab Manager strives to be the best in everything – proud of
     achievements and aiming for long-term prosperity:
     •  roud of being the best and being recognised as such.
       P
     •  onscious of ‘booms and bust’, aims for sustainable prosperity through diverse
       C
       interests and continuous focus – act as if it could all disappear tomorrow.
     •  ims for world-leading achievement in everything - ‘beyond best practice’.
       A
     •  ommunicates that highest quality outputs are vital.
       C
     •  rives a performance culture where individuals’ output is measured and
       D
       improved.
     • mproves work processes and implementing new technology to ensure detail
       I
       doesn’t cloud long-term vision and that quality is maintained and bureaucracy is
       minimised.
     •  xceeds international standards and governance.
       E
     •  e the best because they want to, not because of legislation or compliance.
       B
     •  nsures that colleagues’ achievements are also recognised and rewarded. Don’t
       E
       take the credit but act modestly and acknowledge the help and support of
       ‘father’ figures.
     • Know through doing’ – (very similar to advanced learning ideas).
       ‘
     • Know your own weaknesses but don’t see them as limitations’, just knowledge
       ‘
       to acquire or experience to gain.




22
The Gulf Arab Leadership Style
              A source of global competitive advantage



The Gulf Arab Management Style:
Continuously adapting

                                       Trading
                                        With
                                       Respect
                    Being                                Continuously
                   the Best                                Adapting

            Building                 Culture                    Honouring
             Lasting
          Relationships               Islam                   Responsibility
                                     History
                   Creating                               Treasuring
                     Bold              Leading               Time
                   Visions            as Head of
                                     the ‘Family’


     “Change is the norm and every change brings benefits and risks.
     When changes are rapid and radical, they raise certain concerns …
     but it is a positive concern, that focuses on gaining the benefits
     of change and avoiding its risks. Yes, changes affect UAE society,
     but we have to direct these changes towards achieving further
     benefits for our society.”
     Sheikha Hind bint Maktoum bin Juma Al Maktoum



23
The Gulf Arab Leadership Style
                 A source of global competitive advantage



     “What distinguishes us from others is our passionate desire to
     adapt to a changing world rather than expecting it to adapt to
     us. When we needed foreign workers – we learnt their language
     – we didn’t expect them to learn Arabic. We needed to make our
     country attractive for employees – we have done that – we needed
     to make our country attractive for investors and we have done
     that also. Change is constant and rapid – we enthusiastically look
     for it and adapt to it to continue our prosperity.”
     Farid Ahmed. Secretary General Gulf Arab World


     The Gulf Arab Manager continuously adapts to others, to the environment and
     to the future, actively scanning the external environment to identify trends, new
     opportunities and potential threats.
     •  trives to understand the impact of these changes on the business
       S
     • dentifies developments that need to take place in order to maximise
       I
       opportunities
     •  akes appropriate measures to ensure benefits are realised
       T
     •  onstantly reviews plans to adapt to external changes or slippage
       C
     •  estless and not satisfied with ‘status quo’. Always looking to improve things.
       R
     •  akes the best practice from the outside world – and then tries to improve.
       T
     •  earns through exposure to other countries, organisations, cultures
       L
     •  earns through wide ranging conversations with many different people
       L
     •  ctively sifts immense sources of information to identify key factors
       A




24
The Gulf Arab Leadership Style
            A source of global competitive advantage



Example Training Programme
To gain competitive advantage through understanding,
deploying and maximising the benefits of the Gulf Arab
Management Style




  Understanding:                 Developing:              Sustaining:
 1 day workshop for all        1 day workshop for       1 day workshop for
       Managers               experienced Managers      advanced Managers




  Workshop 1                    Workshop 2               Workshop 3
 Understanding                  Developing               Sustaining
   The GAMS                     Your GAMS                The GAMS


 •  istorical context and
   H                          •  elf Assessment
                                S                      •  eam Assessment
                                                         T
   cultural influences        •  reas for
                                A                      •  reas for
                                                         A
 •  source of
   A                            Improvement              Improvement
   competitive advantage      • Development           •  evelopment Others
                                                         D
 •  ey Elements
   K                            Actions                •  ctions to sustain the
                                                         A
 •  ensions and Synergies
   T                                                     GAMS




25
The Gulf Arab Leadership Style
          A source of global competitive advantage




           Next Steps:
         Your opportunities
      There are several practical ways to take advantage of the
      Gulf Arab Management Style within your business. Some
                         example next steps:

      1. Run a management development program – start with a pilot
                   where you can refine the approach

       2. Review, recommend and develop the optimum style for your
     organisation based on an assessment of your strategy, your market
                      and the needs of your workforce

     3. Benchmark your managers and prioritise improvement areas –
               consider using OSC’s Fast Assessment Tool

     4. Hold a leadership workshop to define the highest priority areas
        where the Gulf Arab Management Style can add most value

          You are also welcome to contribute to further research into
      specific aspects of the Gulf Arab Management Style, such as how
       it can be best used in your industry or country. OSC has research
       sponsorship opportunities in these and other areas, all of which
     take forward the thought-leadership and present an excellent way
            to raise your profile and contribute to national growth.

      We welcome your views and input. Please contact OSC to discuss
      your requirements and ideas. You will find contact details at the
                            end of this paper.



                  Contact Professor William Scott-Jackson
                    wsj@oxfordstrategicconsulting.com
                             0044 7785 110910


26

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The Gulf Arab leadership Style by Oxford Strategic Consulting

  • 1. The Gulf Arab The Gulf Arab Leadership Style A source of global competitive advantage Leadership Style A source of global competitive advantage 1
  • 2. The Gulf Arab Leadership Style A source of global competitive advantage Authors Professor William Scott Jackson Scott Druck Bashar Kariem Acknowledgements The authors would like to thank the postal services and other parties who provided feedback and comments on the complex nature of measuring performance in the postal sector and the wide variety of socio-political contexts within the G20. The feedback and advice from various parties has proved valuable in producing this report and will certainly be useful for future editions. About Oxford Strategic Consulting Oxford Strategic Consulting provides bespoke research, strategic advice and implementation support to corporations, organisations and governments worldwide. Blending academic insight with commercial expertise, Oxford Strategic Consulting helps its clients define and achieve their strategic goals. To discuss any aspect of this report or to order further copies, please email reports@oxfordstrategicconsulting.com Oxford Strategic Consulting 34 St. John Street, Oxford UK All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitteed in any form by any means without a valid paid-for license or the prior written permission of Oxford Strategic Consulting. Whilst every effort has been made to ensure the accuracy of the information contained in this report, the authors and publisher accept no responsibility for any errors it many contain, or for any loss, financial or otherwise, sustained by any person or organisation using this publication. 2
  • 3. The Gulf Arab Leadership Style A source of global competitive advantage Contents Introduction ..................................................................................................................... 4 Is there an ‘Arab Management Style’?.................................................................... 5 The Gulf Arab Management Style: Why bother?..................................................... 6 The Gulf Arab Management Style: Why bother?..................................................... 7 The Gulf Arab Management Style Project: The Gulf Arab Management Style..................................................................................... 8 The Gulf Arab Management Style: Building Lasting Relationships...................... 9 The Gulf Arab Management Style: Creating Bold Visions...................................11 The Gulf Arab Management Style: Leading as Head of the ‘Family....................13 The Gulf Arab Management Style: Treasuring Time.............................................15 The Gulf Arab Management Style: Honouring Responsibility.............................17 The Gulf Arab Management Style Trading with Respect....................................19 The Gulf Arab Management Style: Being the Best..............................................21 The Gulf Arab Management Style: Continuously adapting..................................23 Example Training Programme..................................................................................25 Next Steps: Your opportunities.....................................................................................26 3
  • 4. The Gulf Arab Leadership Style A source of global competitive advantage Introduction Oxford Strategic Consulting is delighted to present its latest research into the Gulf Arab Management Style. This contains important insight into using the Gulf Region’s unique attributes and capabilities to deliver sustainable competitive advantage. The Gulf Region is an increasingly important driver of global economic growth. It is a key trading hub, with rapid growth in financial services, technology and other industries in addition to the major petrochemical resources. With an increasingly educated, young and ambitious population, the Gulf Region will only gain strength and importance on the global economic stage. The Gulf is also home to unique cultures and peoples, with a correspondingly unique set of values, beliefs, actions and behaviours. It follows that these unique attributes create a Gulf-specifi c way of doing business, yet this has never been studied or documented. It is assumed that Western management styles and practices are used and are appropriate in the Gulf Region, but this is not necessarily the case. Research shows that organisations can achieve sustainable competitive advantage through owning and deploying scarce but valuable resources that are difficult to copy. Human capabilities are extremely difficult to copy, often being interwoven with organisational history and culture, management style and many other factors that are difficult to replicate. Human capabilities are one of the best strategic differentiators. So if we can identify and replicate the Gulf Management Style, we would have a key source of competitive advantage for Gulf-owned global and local organisations. However, the Gulf Management Style has not been properly defined. Without a clear understanding of it, there is a risk that this style will become dissipated and a source of strategic competitive advantage lost. OSC therefore performed a research study to establish whether a distinct Gulf Arab Management Style exists, whether it adds value to Gulf businesses, and how it can be replicated and developed to deliver further success. This paper presents the findings of the research, as well as some practical recommendations to build on the unique capabilities shown by successful Gulf Arab Managers and Leaders. The result is a clearly defined framework for the Gulf Management Style, from which we have built a series of leadership and management development programs, change initiatives, strategy workshops and other resources that help Gulf companies create value and build strategic advantage. OSC welcomes your comments on this paper and the practical advantages that the Gulf Management Style offers. You will find contact details at the end of the document. We hope you find this valuable and look forward to hearing from you. Professor William Scott-Jackson Oxford, UK May 2012 4
  • 5. The Gulf Arab Leadership Style A source of global competitive advantage Is there an ‘Arab Management Style’? Arab Management Levant Style Maghreb Management Management Style Style Gulf Arab Management Style KSA Qatar Bahrain Omani Management Management Management Management Style Style Style Style Emirati Management Style Abu Dhabi Dubai RAK Management Management Management Style Style Style 5
  • 6. The Gulf Arab Leadership Style A source of global competitive advantage The Gulf Arab Management Style: Why bother? The competitive market Firm C Firm B Firm X Competitive Advantage Firm A Firm D The ‘X’ factor: A differentiating capability Valuable (in relation E.g. innovative capacity, to the market) ability to exploit knowledge Rare The Gulf Arab Hard to imitate Management Style Hard to substitute Owned by you 6
  • 7. The Gulf Arab Leadership Style A source of global competitive advantage The Gulf Arab Management Style: Why bother? • he Arab Management Style has not been widely studied T • ny capability that is distinctive, valuable and hard to copy can be a source of A real advantage • t has elements that would be considered as advanced in Western management I • t could have particular relevance when dealing with a downturn I The Gulf Arab Management Style Project: PURPOSE • iagnose, for the first time ‘the Gulf Arab Management Style’ D • s seen by the Managers – aspirational, positive, valuable A • reate a range of training programmes for Ex-pat and Gulf Arab Managers C • romote and market the Gulf Arab Management Style worldwide P METHOD (starting with Emirates and Dubai to date) • tructured interviews with a selection of Senior Managers S • urvey and interview staff and students S • eview previous writings and theories: History, culture, management R • nalysis of results to create a definition of the Gulf Arab Management Style A • ropose and challenge in forums, workshops and organisations P • xtend data collection into Saudi Arabia, Qatar, Oman, Bahrain, Kuwait, Yemen E etc 7
  • 8. The Gulf Arab Leadership Style A source of global competitive advantage The Gulf Arab Management Style Trading With Respect Being Continuously the Best Adapting Building Culture Honouring Lasting Relationships Islam Responsibility History Creating Treasuring Bold Leading Time Visions as Head of the ‘Family’ Drivers of the Gulf Arab Management Style History Culture Islam Recent past: boom and bust Hospitality What the Quran says about: Harsh desert nomad life Family and tribal loyalty - The value of work Pearl fishing and impact of Curiosity and perseverance - Business and profit world trade - Ethics of business Trade always crucial - Treat others with respect Always high foreign population 8
  • 9. The Gulf Arab Leadership Style A source of global competitive advantage The Gulf Arab Management Style: Building Lasting Relationships Trading With Respect Being Continuously the Best Adapting Building Culture Honouring Lasting Relationships Islam Responsibility History Creating Treasuring Bold Leading Time Visions as Head of the ‘Family’ “It is vitally important that people be loyal to their leaders, but it is even more important that a leader be loyal to his people. A leader and his people share a bond of faith in each other, which, if broken, is extremely difficult to fix.” H.H Sheikh Mohammed bin Rashid al Maktoum 9
  • 10. The Gulf Arab Leadership Style A source of global competitive advantage “I apply not my sword where my lash suffices, nor my lash where my tongue is enough. And even if there be one hair binding me to my fellowmen, I do not let it break: when they pull I loosen, and if they loosen I pull” Caliph Mu’äwiyah AD 661-680 in Muna :63 For the Gulf Arab Manager, relationships are extremely important in all aspects of life, including business, and the power of relationships sets them apart. • Actively seeks to build wide and influential relationships. • Operates in a manner that builds trust in others. • Is honest at all times and displays openness to colleagues and customers. • Respects other people’s views and customs (politeness). • Invests time in maintaining existing relationships. • Supports friends and family in all aspects of life - and gains support from them. • Demonstrates trust in others. • Sees long term relationship as more important than short term gain. • Values loyalty. • Adopts a ‘person-oriented’ rather than impersonal approach to business. • Shares knowledge and ‘discloses’ to those in close relationships. • Manages conflict 10
  • 11. The Gulf Arab Leadership Style A source of global competitive advantage The Gulf Arab Management Style: Creating Bold Visions Trading With Respect Being Continuously the Best Adapting Building Culture Honouring Lasting Relationships Islam Responsibility History Creating Treasuring Bold Leading Time Visions as Head of the ‘Family’ “The word ‘impossible’ is not in leaders’ dictionaries. No matter how big the challenges, strong faith, determination and resolve will overcome them…. A leader does not necessarily need to be the most intelligent member of his group ... rather he is the one with the clearest and most far-reaching vision.” HH Sheikh Mohammmed bin Rashid al Maktoum 11
  • 12. The Gulf Arab Leadership Style A source of global competitive advantage “We come from a tough desert environment so we are able to take the difficult challenging road to meet our goals. We have a strong ability to vision the future and we consider risks as a part of implementation, not so much part of the decision itself. Risks are always present but should not be an excuse for defeat.” HE Sultan Ahmed Bin Sulayem The Gulf Arab Manager seeks out and embraces challenge – always taking the tough road if it is the right one. • ees the ‘impossible’ as an enjoyable goal (like a mountain to climb or a race to S run). • reates and communicates a highly-stretching and bold vision for the future. C • ets long term goals and demonstrates unerring confidence that these can be S achieved. • ecognises risks but sees these as implementation challenges, not key decision R factors. • btains and clarifies information – understands the key decision issue quickly O without missing anything. • xpects success, but not destroyed by failure. E • njoys massive achievement against impossible odds – takes pride in visible E signs of achievement. • ees any failure as a learning experience but not as personal failure S • ries to get many different points of view and perspectives (does rely on single T source of advice) • as confidence in own decisions and ability to work through any mistake or H risk. • ptimistic and passionate – to believe in a higher vision with no boundaries. O • cts fast to take advantage of opportunities A “For example, we wanted to compete in modern container world so instead of waiting 18 months to build cranes we bought second hand from UK in 3 months. “ HE Jamal Majid Bin Thaniah Vice Chairman, DP World 12
  • 13. The Gulf Arab Leadership Style A source of global competitive advantage The Gulf Arab Management Style: Leading as Head of the ‘Family Trading With Respect Being Continuously the Best Adapting Building Culture Honouring Lasting Relationships Islam Responsibility History Creating Treasuring Bold Leading Time Visions as Head of the ‘Family’ “The relationship between the leaders and the people of the UAE is one of the secrets behind the nation’s success…Our leadership style is to make the organisation a family with a head whose job is to make the family strong and successful but also to look after the members of the family.” HE Sultan Ahmed Bin Sulayem 13
  • 14. The Gulf Arab Leadership Style A source of global competitive advantage The Gulf Arab Manager sees the company or their team as like their family - with the same obligations and responsibilities to those being led and leading. • eads the team as ‘head of the family’ with the same duties, responsibilities and L authority. • ecognises obligation to colleagues and duty to support, guide and nurture R team members. • emonstrates strong loyalty to their boss and expect strong loyalty from their D team. • Learn from our fathers’ – respect for experience, age and knowledge. ‘ • very employee made to feel part of the ‘family’ with obligations and benefits. E • eeks to be a strong role model for their people by gaining knowledge and S guidance from their leader and sharing it freely. • nformal constant communications both upwards and downwards. I • eeks to get to know the personal issues of their people and help them where S possible. • onsults extensively to understand the thoughts and feelings of colleagues and C create a sense of involvement. • alances duties to ‘work family’ with duties to ‘non-work family’ and other B communities. • as an ‘open door’ policy where people of various levels can gain access to the H ‘head’ at any time (re majlis). • upports the ‘head’ in public but also say what you really think in private S without implying disloyalty – it’s your decision but … 14
  • 15. The Gulf Arab Leadership Style A source of global competitive advantage The Gulf Arab Management Style: Treasuring Time Trading With Respect Being Continuously the Best Adapting Building Culture Honouring Lasting Relationships Islam Responsibility History Creating Treasuring Bold Leading Time Visions as Head of the ‘Family’ “Time is the most precious thing we have; if we let it slip away, we can’t get it back - there is a lot to be done and little time to do it all. Time is not neutral - it is either a close friend or an enemy … Waiting has never been our choice in the past, nor is it in the present. We are always striving, anticipating the future and preparing for it.” HH Sheikh Mohammed 15
  • 16. The Gulf Arab Leadership Style A source of global competitive advantage The Gulf Arab Manager sees time as a precious resource to be utilised and enjoyed. • o artificial time boundaries between work and life. N • hings have a time that is right – priorities control use of time, not vice versa. T • mportant to have a view (instinct) on the appropriate timing of things. I • ive in the moment (not the future or the past – Sheikh Mohammed says no L ‘tomorrow’ in our dictionary’). • ime is precious and should not be wasted. T • rioritise and maximise use of time – the Gulf Arab Manager manages time to P maximise achievement. • o for things, be proactive, make things happen but really make the most of G whatever you’re doing (even relaxation). • anage tensions and pressures on time and potential impacts on others. M • romises must be kept (i.e. deadlines) – no excuses. P • rocesses and plans are in order to achieve objective, not for their own sake. P • on’t over-plan – get on with it and manage problems that arise, design and D execute in parallel. 16
  • 17. The Gulf Arab Leadership Style A source of global competitive advantage The Gulf Arab Management Style: Honouring Responsibility Trading With Respect Being Continuously the Best Adapting Building Culture Honouring Lasting Relationships Islam Responsibility History Creating Treasuring Bold Leading Time Visions as Head of the ‘Family’ “To hold others responsible for failure is a way of escaping one’s own responsibility. Responsibility is a heavy burden and a great honour at the same time. Whoever shoulders responsibility must be worthy of it.” HH Sheikh Mohammed bin Rashid al Maktoum “Coming from the desert, we have a natural sense of responsibility for our people and the environment” HE Sultan Ahmed Bin Sulayem 17
  • 18. The Gulf Arab Leadership Style A source of global competitive advantage The Gulf Arab Manager feels a great sense of shared responsibility to the family, tribe, company, country and the world including people, economy and environment. They feel (and have to feel) a strong sense of belonging to their various communities and always aim for sustained physical and psychological prosperity • cts responsibly in all aspects of life – work, home and community. Not A compartmentalised. • akes decisions on the basis of wider responsibilities, as well as ‘business case’. M • cts as a role model and encourages others to uphold their responsibilities to A their people, company and country. • emonstrates a sense of pride in their country and seeks opportunities to D promote and support it at all times. • ries to balance the needs of different communities to which they belong T (personal, business, world, environment, nature etc) but without seeing them as separate. • lways takes a long-term view to achieve sustainable prosperity. A 18
  • 19. The Gulf Arab Leadership Style A source of global competitive advantage The Gulf Arab Management Style Trading with Respect Trading With Respect Being Continuously the Best Adapting Building Culture Honouring Lasting Relationships Islam Responsibility History Creating Treasuring Bold Leading Time Visions as Head of the ‘Family’ “For a dialogue to be fruitful, there must be mutual respect for each other’s humanity, culture and rights. A dialogue is not true if it does not lead to an understanding of one another.” HH Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President Ruler of Gulf Arab “We are open to other peoples and we are not fearful of difference. We know we can deal with all peoples and we know how to find out what they want and then give it to them. we 19
  • 20. The Gulf Arab Leadership Style A source of global competitive advantage want tourists, tourists want beaches so we build many kilometres for them. We ask them what they want so they will flock to our offerings” HE Sultan Ahmed Bin Sulayem, Chairman Gulf Arab World “Today the Gulf Arab Manager exemplifies tolerance and a blend of cultures that is unique. In order to do the most, and best, business they expect to adjust to the customer – whatever nationality. They don’t wait for the other person to adjust.” HE Jamal Majid Bin Thaniah Vice Chairman, DP World The Gulf Arab Manager wants to do business, is open to others peoples’ views and not afraid of the differences. The Gulf Arab Manager is interested in what others want and strives to give it to them if possible. • eeks out solutions that are mutually beneficial. S • istens to the needs of customers of all nationalities and cultures in order to L understand what they want to achieve. • s hospitable and friendly to all people irrespective of culture or nationality. I • illing to learn from others of all backgrounds and nationalities. W • isplays an active interest in other cultures and nationalities. D • ulf Arab has always welcomed immigrant merchants and workers and G recognises their contribution. • he Gulf Arab Manager adapts behaviour to other cultural norms, but without T sacrificing the fundamentals. • s very well mannered - proper behaviour is infectious. I • xercises common sense and emotional intelligence. E 20
  • 21. The Gulf Arab Leadership Style A source of global competitive advantage The Gulf Arab Management Style: Being the Best Trading With Respect Being Continuously the Best Adapting Building Culture Honouring Lasting Relationships Islam Responsibility History Creating Treasuring Bold Leading Time Visions as Head of the ‘Family’ “A leader must take advantage of the opportunity when he sees it, and if the opportunity is not there, he should be prepared to make it…. If we were deer and stopped running, we would fall prey to lions, If we were lions and stopped chasing, we would die of hunger” H.H. Sheikh Mohammed bin Rashid al Maktoum 21
  • 22. The Gulf Arab Leadership Style A source of global competitive advantage “We always set difficult challenges – especially if people say we’ll never do it or it’s impossible. We are proud of our achievements and work very, very hard to be the best” HE Sultan Ahmed Bin Sulayem The Gulf Arab Manager strives to be the best in everything – proud of achievements and aiming for long-term prosperity: • roud of being the best and being recognised as such. P • onscious of ‘booms and bust’, aims for sustainable prosperity through diverse C interests and continuous focus – act as if it could all disappear tomorrow. • ims for world-leading achievement in everything - ‘beyond best practice’. A • ommunicates that highest quality outputs are vital. C • rives a performance culture where individuals’ output is measured and D improved. • mproves work processes and implementing new technology to ensure detail I doesn’t cloud long-term vision and that quality is maintained and bureaucracy is minimised. • xceeds international standards and governance. E • e the best because they want to, not because of legislation or compliance. B • nsures that colleagues’ achievements are also recognised and rewarded. Don’t E take the credit but act modestly and acknowledge the help and support of ‘father’ figures. • Know through doing’ – (very similar to advanced learning ideas). ‘ • Know your own weaknesses but don’t see them as limitations’, just knowledge ‘ to acquire or experience to gain. 22
  • 23. The Gulf Arab Leadership Style A source of global competitive advantage The Gulf Arab Management Style: Continuously adapting Trading With Respect Being Continuously the Best Adapting Building Culture Honouring Lasting Relationships Islam Responsibility History Creating Treasuring Bold Leading Time Visions as Head of the ‘Family’ “Change is the norm and every change brings benefits and risks. When changes are rapid and radical, they raise certain concerns … but it is a positive concern, that focuses on gaining the benefits of change and avoiding its risks. Yes, changes affect UAE society, but we have to direct these changes towards achieving further benefits for our society.” Sheikha Hind bint Maktoum bin Juma Al Maktoum 23
  • 24. The Gulf Arab Leadership Style A source of global competitive advantage “What distinguishes us from others is our passionate desire to adapt to a changing world rather than expecting it to adapt to us. When we needed foreign workers – we learnt their language – we didn’t expect them to learn Arabic. We needed to make our country attractive for employees – we have done that – we needed to make our country attractive for investors and we have done that also. Change is constant and rapid – we enthusiastically look for it and adapt to it to continue our prosperity.” Farid Ahmed. Secretary General Gulf Arab World The Gulf Arab Manager continuously adapts to others, to the environment and to the future, actively scanning the external environment to identify trends, new opportunities and potential threats. • trives to understand the impact of these changes on the business S • dentifies developments that need to take place in order to maximise I opportunities • akes appropriate measures to ensure benefits are realised T • onstantly reviews plans to adapt to external changes or slippage C • estless and not satisfied with ‘status quo’. Always looking to improve things. R • akes the best practice from the outside world – and then tries to improve. T • earns through exposure to other countries, organisations, cultures L • earns through wide ranging conversations with many different people L • ctively sifts immense sources of information to identify key factors A 24
  • 25. The Gulf Arab Leadership Style A source of global competitive advantage Example Training Programme To gain competitive advantage through understanding, deploying and maximising the benefits of the Gulf Arab Management Style Understanding: Developing: Sustaining: 1 day workshop for all 1 day workshop for 1 day workshop for Managers experienced Managers advanced Managers Workshop 1 Workshop 2 Workshop 3 Understanding Developing Sustaining The GAMS Your GAMS The GAMS • istorical context and H • elf Assessment S • eam Assessment T cultural influences • reas for A • reas for A • source of A Improvement Improvement competitive advantage • Development • evelopment Others D • ey Elements K Actions • ctions to sustain the A • ensions and Synergies T GAMS 25
  • 26. The Gulf Arab Leadership Style A source of global competitive advantage Next Steps: Your opportunities There are several practical ways to take advantage of the Gulf Arab Management Style within your business. Some example next steps: 1. Run a management development program – start with a pilot where you can refine the approach 2. Review, recommend and develop the optimum style for your organisation based on an assessment of your strategy, your market and the needs of your workforce 3. Benchmark your managers and prioritise improvement areas – consider using OSC’s Fast Assessment Tool 4. Hold a leadership workshop to define the highest priority areas where the Gulf Arab Management Style can add most value You are also welcome to contribute to further research into specific aspects of the Gulf Arab Management Style, such as how it can be best used in your industry or country. OSC has research sponsorship opportunities in these and other areas, all of which take forward the thought-leadership and present an excellent way to raise your profile and contribute to national growth. We welcome your views and input. Please contact OSC to discuss your requirements and ideas. You will find contact details at the end of this paper. Contact Professor William Scott-Jackson wsj@oxfordstrategicconsulting.com 0044 7785 110910 26