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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.
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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
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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
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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
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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
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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
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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
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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
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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.
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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
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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
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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
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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