Match Fit 2.0: Creating Asia-capable leaders

30 November 2020: To succeed in Asia, Australian businesses need to demonstrate commitment to Asian markets and build long-term relationships not only with Asian business partners, but also government and community stakeholders. This requires a diversity of skills at all levels of leadership of Australian businesses, including capabilities specific to doing business in Asia.

The webinar explored the findings of the Match Fit 2.0 analysis of Asia capability in ASX 200 companies and best practices in external affairs. Panelists discussed how the best companies develop Asia-capable business leaders who generate superior returns while managing their brand, reputation and stakeholders effectively in Asian markets.

The event was moderated by Asialink Business CEO Mukund Narayanamurti and featured a panel of expert speakers:

  • Ben Way, CEO, Asia, Macquarie Group
  • Kevin Fitzgerald, Managing Director – Asia, Xero
  • Sue MacLeman, Chair and Non-Executive Director, MTPConnect
  • Penny Burtt, Group CEO, Asialink

Cross-cultural leadership to pursue the right opportunities

Macquarie Asia CEO Ben Way highlighted that its business model in Asia is underpinned by the ability of its highly Asia-capable local teams to identify and pursue emerging business opportunities. Macquarie has been in Asia for over 25 years and has an on the ground presence in 11 markets across the region. A focus on building cross-cultural leadership, from junior teams to the boardroom, and promoting talent that understands its business model is built on trust has been key to its success.

Demonstrating commitment

Kevin Fitzgerald is the Managing Director of Xero for Asia, an online Accounting platform that is a household name in Australia and aims to be the largest platform of its kind in multiple Asian markets. Kevin explained that if you are seeking to become a major market player in an Asian market, the importance of demonstrating your commitment goes well beyond establishing brand awareness among target customers. The success of its expansion into Singapore in 2016 has relied on building deep relationships with key partners in the banking sector and government, who rely on Xero showing long-term commitment to the region.

Building Asia capabilities

Sue MacLeman, Chair and Non-Executive Director, MTPConnect, emphasised that in the era of COVID-19, it has become even more necessary for the Australian medical technologies, biotechnologies and pharmaceuticals sector to work together to devise global solutions to global health problems. She stressed that Asia capabilities remain too low across these sectors, as well as across the ASX 200 as shown in Match Fit 2.0.

Sue suggested that greater prioritisation of Asia capabilities in executive recruitment processes was an essential step to greater success for Australian businesses in Asia.

Sue also emphasized that boards need to take a strategic approach by being on the ground and developing in-country expertise.  It was essential for extensive preparation to be undertaken before doing business in the region. The need to build awareness through experience and not through anecdotes was also highlighted as being critical.

Focus on external affairs

Asialink Group CEO Penny Burtt discussed the importance of an active external affairs function to create corporate success in Asia. Successful multinationals in Asia use their external affairs teams as “chief sense makers” to understand the business environment in specific markets and monitor trends, which helps companies understand opportunities through a risk-management lens. External affairs can also help promote the role of the company and its Asian market opportunities at home and abroad. This plays a pivotal role in building support for its strategy among shareholders as well as government, regulatory bodies and customers in target Asian markets. Asia capability is absolutely essential and companies that do it well have boots on the ground.

Concluding remarks

Our panelists agreed that while Asia capability remains low, Australian businesses can benefit from the example of successful companies in Asia, many of which are highlighted in the Winning in Asia report. Australian businesses should also seek the support of Australian government agencies that are on the ground in each market both for insights on new opportunities and on how to manage relationships with Asian governments and the broader community.