Many Malaysian leaders understand the need for change, however they are struggling to balance current performance expectations, against innovating for the future, says recruitment firm Korn Ferry (NYSE:KFY).

Reports by NYSE:KFY titled “Digital Leadership in Asia Pacific found that there are significant gaps between Malaysian leaders and the ‘great digital leader archetype’. 

Approximately 7 per cent of Malaysia’s GDP in 2017 was derived from digital products and services; the research calls for a radical mindset shift amongst Malaysian leaders to enable sustainable digital change for a successful future.

Researchers found that Malaysian leaders’ strong preference for structure suggested that their confidence is restricted to operating in process-driven environments with a high-degree of certainty.

Culturally, a strong adherence to hierarchy and a lack of open communication is inhibiting the ability of Malaysian leaders to engage, inspire and empower their people to create innovative solutions.

“The rapid pace of change in the digital age fundamentally challenges how Malaysian leaders conceptualise and execute their role.

“Relying on direct, hierarchical power and structured processes to deliver profits will no longer work in an environment that rewards novel thinking.

“Malaysian leaders need to see this change as an opportunity and embrace a new vision of leadership,” said Korn Ferry Hay Group, Malaysia, senior principal,  Mohammad Iesa Morshidi.

The research calls on Malaysian leaders to engage their strong capacity for self-development and embrace challenges to update their understanding of what it means to be a leader in the digital age.

Malaysian leaders should build on their innate confidence to expand their leadership capacity in more ambiguous situations.

The research also adviced leaders to be more adaptable, curious and take more risks in the face of uncertainty and they need to adopt a more approachable style to encourage the contribution of opinions and ideas.

“With disruption now the norm, future success depends on the ability to continuously adapt and change: not just with the business model but a culture change on a grand scale. 

“The role of leaders in activating people to support change is therefore of utmost importance but first, leaders must personally transform to inspire and engage their people and create a more open, agile and networked culture to power performance,” said Michael Distefano, chief operating officer, Korn Ferry Asia Pacific.

The report analysed the leadership profiles of more than 9,000 leaders from eight APAC countries and territories and compared these profiles against the traits, competencies and drivers of great digital leaders. 

The countries and territories involved in the study include: Australia, China, Hong Kong, India, Japan, Malaysia, Singapore, and South Korea. 

Across the region, Australia and India fare relatively well against the profile of a great digital leader. 

However, much of APAC is struggling with the scale of change required and are looking for a way through the complexity.

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