Chinese businesses have been integrating into the global economy at an extraordinary pace during the past decade. This large scope of globalization in China has created unprecedented human resource challenges. A chief concern has been the acute scarcity of Chinese leadership talent. In a growing economy, preparing leadership to meet tomorrow’s challenge is exceedingly difficult. It may take only a few years to build a skyscraper. However, building a strong talent pipeline can take a decade or more, especially at the middle to top leadership levels.

Overall, the development of capable executive leaders represents one of the top business priorities for MNCs operating in China and Chinese enterprises going global. Recently, we conducted a global leadership competency norms study. We collected data on leadership from numerous companies located across the world. We then contrasted the Chinese managers with a global sample to gain insight into leadership development in China. In particular, we investigated the following four questions:

1.	Do Chinese managers perceive characteristics of effective leadership the same way as the global management population?
2.	What are the important competencies for successful transition from middle to top management?
3.	How are Chinese managers skilled on these competencies?
4.	What are the critical developmental needs of Chinese executives?

We hope this research will help Chinese companies advance their knowledge of leadership and enable them to prioritize their future leadership developmental efforts.

Our sample consisted of 5,124 managers in various organizational positions from around the globe who participated in the study. A multi-rater assessment was used to evaluate each of the managers on 67 leadership competencies. Self-ratings were excluded from our analysis (i.e., boss, peer, and direct report were averaged to compute an “all others’ mean rating for each competency). Two different rating scales were used. A Skill Rating Scale asked raters to assess how skilled a target manager was on a competency. Responses could range from “a towering strength” (5), “talented” (4), “skilled/ok” (3), “a weakness” (2), to “a serious issue” (1). The Importance Rating Scale asked raters to indicate how important a competency was for the target manager’s job. This scale could range from “mission critical” (5), “very important” (4), “nice to have” (3), “less important” (2), to “least important” (1).

Among the total sample, (a) 39% of the participants were supervisors, (b) 36% were middle-level managers, and (c) 25% were executives. The Chinese sample comprised 92 supervisors, 72 middle managers, and 60 executives (N = 224). All the Chinese subjects were from multinational companies. 

Discussion and Implications

	In this study, we found a widening leadership skill gap in China. The data reveal that people from around the world, including China, have about the same perceptions regarding what are important characteristics for effective leadership. However, compared to executives from other regions, Chinese executives appear less skilled on the leadership competencies most frequently mentioned as important for success. We further identified five competencies that are most critical for the successful transition from middle management to top executive positions. Again, Chinese executives were less skilled on these competencies. The comparison between Chinese managers and the global sample pointed out the leadership weakness of the executives in China.

Our findings strongly suggest that firstly, it is more critical to focus our effort on developing Chinese managers during the transition from mid-mangers to executives, than on the transition from supervisor to mid-managers; Secondly, Chinese executives need development in the following five competencies: (a) “Business Acumen,” (b) “Strategic Agility,” (c) “Managing Vision and Purpose,” (d) “Comfort around Higher Management,” and (e) “Command Skills.” The first three competencies are related to making strategic decisions and setting the direction for organizations. These leadership behaviors traditionally are viewed the functions of top executives. The findings from our study reinforce the general impression that Chinese executives lack visioning and strategic management skills. Chinese executives should recognize that the transition from middle management to top management requires a corresponding change in their roles. They must become less of a “doer” and more of “thinker” and “planner”. They must develop the skills to inspire others to execute what they believe is true.

	Chinese culture is high on Hofstede’s power distance dimension (Hofstede, 2001). This may explain why Chinese executives are not highly skilled on “Comfort around Higher Management.” Historically, Chinese have demonstrated much respect for hierarchical structure, finding it a natural way to organize their life. In multinational companies or a different culture, this power distance may become a barrier for Chinese managers’ career advancement. In less hierarchical organizations, individuals frequently find themselves having to influence others without formal authority. The skill to manage up is especially important for executives who are dealing with both internal and external stakeholders.  

	Traditional Chinese culture also may influence how Chinese executives make decisions and command others. Previous research found that compared with their Western counterparts, Chinese leaders are less likely to adopt a social/participative leadership style. Rather, Chinese managers tend to depend on their formal authority to direct others and execute their influence (“Road to success…,” 2005). In this context, leaders control information and subordinates in order to maintain their power and authority. However, to work effectively in multinational companies or other cultures, Chinese executives have to recognize the potential negative impact of this very hierarchical, one-directional command style.

	Living within society’s mores, culture plays an important role on people’s behaviors. Obviously, Chinese managers’ leadership competencies are influenced strongly by their Chinese culture. The old Chinese model of leadership might have worked very well during previous times. However, as the business in China increasingly becomes integrated into the global economy, new Chinese leaders must learn new competencies. As a result of the recent economic integration, it is not surprising that Chinese raters now endorse similar characteristics for effective leadership as their Western counterparts. Currently, Chinese executives are less skilled in these important areas. A key for Chinese executives to compete will be their ability to understand and develop in these critical competencies.