Is Sri Lanka ready for a high growth agenda?

Driving back after Midnight Mass, I could not believe my eyes and ears, given the fire crackers on the streets of Colombo on New Year’s Eve.

I guess 2010 was a year where people got the freedom to do what their hearts desired rather than what their rational mind echoed. Some ventured into new businesses and went on to make supernatural profits.

Some played the stock exchange and multiplied their earnings. Some bought new cars. Some travelled the world whilst some made new friends and I guess each of them had their fair share of joy and learnings that will hold in good stead for the year ahead.

2011

If we pragmatically examine last year, Sri Lanka undoubtedly enjoyed one of the best years in recent history. Be it in the macro-economy where a seven per cent plus growth was registered, poverty levels coming down to single digit, unemployment at around five per cent whilst the stock market doubled in two consecutive years is a performance that any leader will want a country to be in.

But let’s be clear that this is called peace dividends. The real test of how we influence growth will be seen only in 2011. If one digs into the details of the year ahead, we see a lot of optimism, with over 60 companies planning to list on the stock exchange whilst many hotel properties are planning to be closed during summer for a new look structurally rather than just aesthetically, which sure spells out the positive vibes currently around us.

I see this same positive thinking in the industrial sector too, where some are planning expansions whilst some are launching IPOs to finance new ventures, which can be linked to the positive Budget that the Government boldly launched. But with the increased electricity rates and local elections that are planned, it will be a very challenging year for Sri Lanka.

 Key issue in SL

Whilst these sentiments can be positive, a point that needs to be highlighted is whether we Sri Lankans are ready for this fast-tracked, jet set working life style that the country is heading towards.

Since many of you have worked in India, if one draws a parallel on a daily basis, the aggressive behaviour that is being seen – be it driving a car to office or at a typical routine at work – is very different to Sri Lanka.

Working time ranges between 12-15 hours, where limited time is spent with family or at the gym and the overall objective being ‘getting ahead’. In simple words, by the time the day ends, one can feel the vibes of being part of a high growth economy that is powering Asian growth.

On the other hand, if we take Sri Lanka, we have an approach of being somewhat cautious, laidback, content and wanting to be at the gym by six the latest for that daily exercise routine or being with one’s family, which are typical island mentality work ethics that do not hold ground for a charged-up economy wanting to be the ‘Wonder of Asia’.

SL not India

Given that most my life I have worked very closely in the South Asian region, whilst agreeing to a certain extent with the rhetoric that working with Indians is tough and that the Indian mentality never fits into a Sri Lankan culture, I strongly believe that in this age of globalisation we must fashion ourselves to work in the most aggressive working cultures – be it in Sri Lanka or any market.

We have to inculcate a work ethic of being aggressive with purpose and being achievement driven with responsibility to society and the environment if we are serious about making Sri Lanka a nation in the 10% plus GDP growth belt.

Femininity of SL managers

Whilst we can wholeheartedly agree with the above sentiments, it is important to note that to practice this in reality is a tough challenge. The logic being that it actually reflects to the very DNA that we Sri Lankans are made of.

This takes me back to the dissertation that I did when I was reading for my MBA. The objective of the study was to find out characteristics that motivate high performing sales and marketing executives in the multination circuit.

The results were shocking but when the details emerged the picture was clearer. The high flyers’ prime motivating factors were the closeness of association with their boss, such a positive word or a pat on the back or being emotionally attached.

They also demonstrated that being in constant contact was essential and some said they would not move to a higher paying job due to the balanced status quo. These characteristics are essentially feminine, as per the works of scientists like McClellend.

On the other hand, if we take a masculine leadership work ethic, the motivating factors are strong challenges with risks that are associated with a higher salary and played down the affiliation needs.

Their prime objective was moving up the corporate ladder even at the extent of creating tension among work colleagues. I have seen this characteristic among my Indian colleagues, which I am sure many of you have experienced.

To be honest, whenever we have discussions on subjects like the controversial CEPA agreement between Sri Lanka and India, most of the time the talks hinges on this feminine/masculine leadership style that subsequently blows out to a fully-fledged set of issues due to which the two teams are at loggerheads. This ultimately results in protest rallies like what we saw last year in Colombo.

A point that needs to be highlighted is that having a leadership style that is feminine is not a weakness as Sri Lankans in nature and nurture have been moulded from a closely-knit family environment to become this personality type.

But the issue is that given that Sri Lanka is moving into stronger linkages with the world at large, unless we demonstrate strong masculine leadership styles, we will get bowled over in the boardroom.

If you have worked in a multinational culture you are sure to have experienced such situations quite often. But we must note that unless we change this work ethic, we will not be ready to drive a high growth economy such as 10% that Sri Lanka is targeting.

Policy vs growth

From a policy perspective too, this ethos holds ground where in many public sector institutions we prefer to follow procedure rather than take risks and make decisions that will drive economic growth.

Once again one cannot blame an individual as it is more systemic in nature but the fact is that there has to be new culture that will have to set in if we are serious about driving in a 10 per cent plus GDP growth agenda in the near future.

This means that just improving the ‘Ease of Doing Business’ indicators will not support the process. We have to make sure that there is to some degree a culture change in the way we work.

Whilst there are bound to be serious policy reforms that will come in to play this year which will not be very popular, with the strong Government at play we can see these bold decisions taking form. But once again a point that needs to be highlighted is that it is not the ratings and indexes which are important but the working culture so that strong and bold decision-making takes place.

We have to have a strong and masculine leadership style which is aggressive, risk taking, bold and achievement-driven rather than just pleasing the people around us if we are serious about the 10% plus growth agenda. If this culture change does not happen, we will find ourselves getting left out in the world stage. Hence it’s time we get ready for this challenge.  

Next steps

1.Every organisation/institution must take stock of their overall leadership style with an accurate survey, may be using a questionnaire that McClelland has developed and is available gratis.

2. The key value creating positions must be filled with masculine and hard-headed individuals.

3. Programmes like outbound training programmes can help people understand the importance of an aggressive behavioural mentality and how it can be balanced off with some degree of soft side skills.

4. Masculine behavioural patterns must be identified and rewarded by top management so that this behaviour is repeated.

5. If a culture change is difficult, then another option is to practice cross postings from a culture that is more masculine in nature so that over time this new ethos gets engraved into the architecture of the organisation.

Whilst it’s true that a leopard does not change its spots, the fact of the matter is that with mentoring we can drive change with purpose. If this does not happen, Sri Lanka is not ready to champion a 10% plus GDP growth agenda and the vision of Sri Lanka becoming the ‘Wonder of Asia’ will only be a dream.

(The author is a corporate personality with over 15 years of outstanding experience in the top multinational organisations, globally winning twice the Marketing Achiever Award for Sri Lanka and a global business award from Johnson-Lever. In the public sector he was the eighth Chairman of the Sri Lanka Export Development Board and the first Executive Director of the National Council for Economic Development under the Presidential Secretariat. Currently he serves the United Nations as the Head of National Portfolio Development for Sri Lanka and Maldives and also serves the Government of Sri Lanka on many boards of management. The thoughts expressed are based on doctoral studies the author is engaged in and not the views of the offices he holds.)