Winter 2006 Boarda newsletter for members of the conferenceAsia board in asia

Inside Two Conferences Focus on 2 Recent Conferences and Events in China 3 Upcoming Conferences

4 Council News Carolyn Brancato, director of The Conference Bureau, used his keynote speech to rein- Board Corporate Governance Research Center, force the essential role of corporate governance 7 Recent Research led two major corporate governance conferences in ensuring the integrity of China’s banking sys- 8 Events in Beijing in October that were sponsored by tem. Wu Taishi, the head of research at the Bank Deloitte China and Towers Perrin. The first was of Communication and an instrumental player in the Forum on Corporate Governance, which was that bank’s successful public offering, spoke on developed in close partnership with the State- the pressing need for Chinese banks to seek Owned Assets Supervision and Administration joint venture partners who incorporate a high Commission (SASAC) and included more than standard of corporate governance throughout the 120 attendees from Chinese state-owned enter- organization before seeking external financing. prises (SOEs) preparing for privatization. In his keynote address, Liu Dongsheng, director-gen- eral of the Enterprise Reform Bureau of SASAC, explored the relationships in SOEs between state shareholders, the board of direc- tors and the supervisory board. More specifi- cally, he discussed how a clear definition of roles and responsibilities between SOEs and their holding companies is crucial to effective corporate governance and establishing a bal- ance between decision making and execution. Liu also stressed the need to set up a strong supervisory board composed of experienced directors who are not members of management to avoid some of the problems inherent in over- lapping roles. The Forum on Corporate Governance and Chinese Banking was held in association with the China Banking Regulatory Commission’s Beijing Bureau and attended by more than 60 senior representatives from major banks in Han Minxi of the China Banking Regulatory Commission China. Lai Xiomin, director-general of the gave the welcome address at the Forum on Corporate Governance and Chinese Banking. 2 the conference board Boardasia winter 2006

the conference board recent conferences and events

Conference Examines Shared Services in China The 2005 Asia-Pacific Shared Services Conference, which was sponsored by The Amherst Group and TPI, gave participants an opportunity to explore the pros and cons of operating service centers in China. Speakers from Philips Electronics (), DHL Worldwide, Henkel Asia-Pacific, HP Services and the Aditya Birla Group addressed a variety of issues related to aligning shared service operations with business strategies. Attendees also had an opportunity to visit facilities run by Accenture and Honeywell.

Gail Fosler Warns of a Possible Slowdown in 2006 During a December visit to Singapore, Gail Fosler, executive vice president and chief econ- omist for The Conference Board, shared her global forecast for 2006 at a briefing hosted by the Singapore Institute of Management. Noting that Andrew Crow, Vice President both the U.S. and Chinese economies are slowing in and CIO—Asia-Pacific for Philips tandem, she discussed the impact of the energy shock on con- Electronics (Singapore), spoke on the challenges his company faces sumers in the , Asia and Europe and suggested in aligning strategies across that there are signs of a significant slowdown in growth. 15 countries. Gail Fosler’s economic insights are available to Conference Board members through her monthly publication StraightTalk, which provides the research, forecasts, and objective analysis that regional executives need to make effective decisions within their markets. For more informa- tion, visit www.conference-board.org/economics/stalk.cfm

Gail Fosler, Executive Vice President and Chief Economist for The Conference Board.

New Series of Webcasts Announced In order to bring fresh ideas about urgent topics to busy executives, The Conference Board Asia- Pacific is launching a new series of Webcasts. These 60-90 minute online presentations will feature Conference Board researchers as well as leading thinkers from Asia-Pacific, the United States and Europe.

Upcoming Webcasts February Developing an Ethical Corporate Culture

March Human Capital Metrics: Aligning Measurement With Business Goals for Results That Matter

April The China Workforce: 2006-2012: Where Will the Skilled Managers Come From?

May Corporate Governance in Family-Owned Businesses: Secrets of Good Governance That Drive Market Value

June Assessing and Minimizing Risk in Joint Ventures: How Can You Control Risk When You Aren’t the Controlling Partner?

For more information, contact Hanifah Yu at [email protected] winter 2006 Boardasia the conference board 3

the conference board upcoming conferences

Leading HR Through the Challenges of Growth Asia-Pacific HR Conference and Talent Management Forum February 28–March 2, Leading-edge thinkers and skilled HR practitioners from Asia and around the world will gather in Hong Kong to discuss HR strategy in the region. Specific topics on the conference’s agenda include the HR value proposition, change management, business challenges, leadership devel- opment, mergers and acquisitions and building and operating a business in provincial China. In addition to the conference sessions, attendees will have the option of taking part in a one-day Talent Management Forum for senior executives, which will specifically address talent identifica- tion, hiring, retention and leadership development in Asia-Pacific, and/or a half-day pre-conference workshop on maximizing rotational assign- ments. (Participants may select full packages or individual offerings.)

Maximizing Branding and Communication Strategies for Asia Asia-Pacific Marketing and Communication Conference May 24–25, Hong Kong The theme of this year’s conference touches on three areas of critical importance to leaders throughout the region: supporting global brand management strategy from Asia and executing that strategy locally; gain- ing regional understanding and a focus on marketing and communica- tion, both internally and externally; and striving for competitive advantage by using technology to manage marketing operations and con- vey the company’s message. Participants will hear from marketing experts and representatives from some of the most innovative Asia- Pacific, U.S. and European companies.

Asia-Pacific Risk and Ethics Working Group The rush of foreign investment into Asia-Pacific is increasing the need for careful manage- ment of legal and reputational risk. Although this problem isn’t unique to Asia-Pacific, there are issues that are region-specific. In managing risk and developing ethics programs and policies, companies accustomed to Western business practices are finding that they must be responsive to the expectations of diverse local constituencies as well as the concerns of multiple foreign stakeholders.

The Asia-Pacific Working Group on Risk and Ethics is sponsoring research on effective gover- nance, risk analysis and ethics programs in the region and is seeking members who can con- tribute to the discussion of a range of urgent issues, including ethics programs and the role of the board, how to conduct compliance risk analysis, managing supply chain issues and maintaining company business conduct standards in joint ventures.

The next meeting will take place in Shanghai in May and will be hosted by Hill & Associates. For more information, contact Meg Gottemoeller at 852 2804 2438 or [email protected] 4 the conference board Boardasia winter 2006

the conference board council news

China Human Resources Council Shell China Limited hosted September’s council sessions at their offices in Beijing. After Lia Belilos, HR director of Shell China Ltd., provided an overview of the company’s business and its HR challenges in China, members examined expatriate compensation and benefits structures using frameworks that had been implemented at Ford and Nokia. The meeting also featured a discussion of best practices in the development of middle managers moderated by Elaine Lin of Baxter Healthcare and an inquiry into people strategy and resource planning led by Niklas Lindholm from Nokia and Elaine Wang from BP. When asked to list pressing HR topics in China, members flagged contributory social insurance, schemes, people mobility, shared service experiences, reward management, union involvement and avian flu preparedness.

Next meeting April 19-21, Suzhou

Asia-Pacific Human Resources Council November’s well-attended meeting was held in Kowloon Bay on the premises of MTR Corporation. In addition to participating in the council sessions, members had the opportunity to visit MTR’s learning facilities and operations centers. Paul Sakrzewski, HR services director in Asia for BOC Gases, gave a presentation on his com- pany’s selection, development and remu- neration policies for international assignees. This was followed by a dis- cussion of work/life balance led by Charles Lim, director of human resources for ASEAN, Australasia and India for P&G, who also provided an overview of P&G’s own substantial global program. Key points mentioned during this discussion included the four drivers that shape work/life initiatives: globalization, technological advances, Members of the Asia-Pacific Human customer responsiveness and personal Resources Council during an offsite accountability. The council also heard from Dr. Ronald Lam of the Hong Kong Department of visit to one of MTR’s facilities. Health on the risk management of avian flu and other health crises.

Next meeting April 26-28, Singapore

Asia-Pacific Talent, Leadership Development and Organization Effectiveness Council The December meeting of this council concentrated on talent management processes, leadership To inquire about the China development in Asia and Greater China and how to champion the importance of talent management. HR Council, please contact Steve Hill from Qantas reported on his company’s talent management methodologies and imple- Alice Lee, council manager, at mentation strategies for both the group and the business-unit level. Sabrina Ma of BP then spoke [email protected] or (852) 2804 1029 about her company’s programs and experiences in the areas of participant challenge programs, tar- geted learning and feedback and evaluation. In the next session, Brenda Murphy from MetLife, To inquire about the other councils Cindy Wong from Jardine Matheson, Jesper Madsen from Maersk (China) Shipping and Francis mentioned here, please contact Mok from MTR Corporation shared their experiences with achieving buy-in and driving talent man- Caroline Sy, council coordinator, at agement cultures within their diverse organizations. [email protected] or (852) 2804 1020 Next meeting February 27, Hong Kong winter 2006 Boardasia the conference board 5

the conference board council news

Asia-Pacific Corporate Communication Council The October meeting in Singapore opened with a talk by Koh Joh Ju, account director at Weber Shandwick, on how technologies, lifestyles and the definition of news have changed dramatically in recent years. Increased consumer participation—through blogs, RSS feeds, Wiki newsletters and podcasting—is having a tremendous impact on corporate communica- tions and the development of positive word of mouth. She predicted that as reliance on tradi- tional media wanes, more and more consumers will make their voices heard through technology-driven word of mouth. In another session, BP regional manager Mathew Yap related his participation with that company’s program for disadvantaged youth, an initiative that has generated genuine positive reactions to BP and created subsequent branding advantages. During the final presentation, Dr. Kathy Bloomgarden, co-CEO of Ruder Finn, led a conversation about CEOs and corpo- rate communication. Dr. Bloomgarden contended that current negative perceptions about CEOs must be changed and the relationship between ethics/corporate governance and per- formance must be strengthened.

Next meeting May 23, Hong Kong

Asia-Pacific Marketing Strategy Council Is marketing becoming a risk? This was the question posed by program director Frederic Moraillon at the beginning of the meeting. The discussion that followed focused on under- standing the impact of marketing investment and how to mitigate marketing risk in the same way as other operational risks. Members also tackled the one-to-one customer relationship, which uses communication with customers to build brand loyalty and opportunities for future profit. While this has come to be regarded as one of the most innovative marketing approaches available, members were unsure if organizations could truly manage such a program or that customers would want to enter into such a relationship. Council members also dealt with concerns about integrating technology into their function. There was general agreement that the market and consumer data currently available in the region were poor or insufficient, a factor that can make it difficult for companies to succeed. As for new technology, while most attendees saw its potential for answering marketing needs, many felt that its full potential has yet to be realized.

Next meeting May 26, Hong Kong 6 the conference board Boardasia winter 2006

the conference board council news

Asia-Pacific Shared Services Council A roundtable discussion at the most recent meeting in November allowed members to air their concerns about regional or functional models, integration across delivery functions, geographical competencies, the “people factor” and local recruitment, the need for innovation, Six Sigma value and ROI, platform consistency and the need to invest for transformation in the face of dollar sav- ings demands.

Next meeting February 15-17, Kuala Lampur

Asia-Pacific Council The kickoff meetings for the newly-formed CFO Council were held in Hong Kong and Singapore during the first week of December. A highlight of the first session was an update on the global economy from Gail Fosler, executive vice president and chief economist of The Conference Board, that examined Asia’s regional economic and political developments, currencies and financial markets and key competitive factors. Ronald Berenbeim, principal researcher on corpo- rate citizenship at The Conference Board, led the Hong Kong group in a discussion on risk and business ethics in Asia-Pacific. The meetings also included an analysis of risk assessment practices and a case study on corporate governance in JVs and business risks in supply chain operations.

Next meeting April, Singapore

As a member of the Asia-Pacific Shared Services Council’s Executive Group, Michelle Cheung, VP, Finance and Controlling for Henkel Asia- China Corporate Citizenship and Sustainability Council Pacific, helps set the council’s The opening session of this newly-formed council was hosted by APCO Asia at their offices direction. in Hong Kong in early December. Conference Board researcher Ronald Berenbeim moderated a round-robin discussion of participants’ corporate citizenship responsibilities and activities that yielded a list of important themes and topics. This was followed by a presentation of key findings from Berenbeim’s recent research on corporate social responsibility and voluntary codes. Additional concerns addressed during the meeting included the challenges faced by international companies entering China, corruption, cultural factors in emerging countries and corporate citizen- ship and sustainability programs in China, with a special focus on employee health and safety.

Next meeting May, Shanghai

To inquire about these councils, please contact Alice Lee, council manager, at [email protected] or (852) 2804 1029 winter 2006 Boardasia the conference board 7

the conference board recent research research reports CEO Challenge 2006: Top 10 Challenges (Research Report 1380) This study, based on the responses of over 500 chief executive officers to this year’s CEO Challenge Survey, provides an overview of the primary challenges cited by respondents, with attention to points of convergence and departure across region, industry and company size.

Aligning the Organization: Management and Human Resource Concerns (Research Report 1370) Hank Barnette, former Chairman and Once an offshoring operation is up and running, executives face a number of unique leader- CEO of Bethlehem Steel, answered Thinking questions on the separation of roles ship and management issues. This report, the third in The Conference Board series and board/management relations Offshoring Through: A Framework for Decision Makers, explores many of the components of at both of the corporate governance offshoring leadership, including establishing a coherent manage- conferences in Beijing. ment structure and developing the offshoring leaders of the future. executive action reports Managing Talent in Asia: Leadership Challenges in a Time of Transition (Executive Action 166) A proverb advises, “The wise man digs his well before he is thirsty.” In an effort to heed this advice, this report provides a “well” of contextual understanding with which to anticipate and handle the challenges of managing leadership talent in Asia.

Corporate Social Responsibility in China: Can Voluntary Codes Succeed? (Executive Action 155) Is there an alternative to laws that are unevenly administered and enforced? A question well worth asking about business practices in China and in all developing economies.

China: Creating an Unlikely Edge in the Global Market Share Battle (Executive Action 154) The world acknowledges that China has favorable labor costs and a growing, educated work- force. But many experts conclude that more developed nations, particularly the United States, will be able to maintain their advantage through innovation. This assessment, however, is To inquire about Associate dangerously flawed. Services, please contact: Abi Hashani Research reports can be downloaded from The Conference Board Members Only Web site: Regional Director, Asia-Pacific The Conference Board www.conference-board.org/membersonly.htm 2502 Admiralty Centre, Tower 1 18 Harcourt Road Hong Kong Tel: (852) 2511 1630 Fax: (852) 2804 1403 abi.hashani@conference- board.org 8 the conference board Boardasia winter 2006 Events

Human Resources Corporate Governance Councils Council J Asia-Pacific Talent, Leadership Development J Council on Corporate Governance and Organization Effectiveness Council and Risk Management—India February 27, Hong Kong March 24,

J Human Resources Council—India J Asia-Pacific CFO Council March 2–4, Chennai April, Singapore

J China Human Resources Council April 19-21, Suzhou, China Operations and J Asia-Pacific Human Resources Council Business Processes April 26-28, Singapore Council J Asia-Pacific Shared Services Council Conferences February 15-17, Kuala Lumpur, Malaysia J Asia-Pacific Talent Management Forum February 27-28, Hong Kong Marketing and Communications J Asia-Pacific Human Resources Conference March 1-2, Hong Kong Councils J Asia-Pacific Corporate Communication Council J Global Leadership 2006: Speed, May 23, Hong Kong Flexibility and Adaptability to Change J April 6-7, Mumbai Asia-Pacific Marketing Strategy Council May 26, Hong Kong Webcast Conference The Conference Board Asia-Pacific J Managing Talent in Asia: Leadership Challenges 2502C Admiralty Centre, Tower 1 J Asia-Pacific Marketing and and Solutions in a Time of Transition 18 Harcourt Road Hong Kong SAR January 25 Communications Conference May 24-25, Hong Kong Tel + 852 2804 1000 Fax + 852 2869 1403

The Conference Board, Inc. 845 Third Avenue New York, NY 10022-6679 For more information on any of these events, please check the appropriate box, United States type or attach your business card and fax this form to +852 2869 1403 Tel + 212 759 0900 Fax + 212 980 7014 conference-board.org Name ______The Conference Board Europe Chaussée de La Hulpe 130, box 11 B-1000 Position______Belgium Tel + 3226755405 Fax + 3226750395 Functional Area ______conference-board.org/ europe.htm Company ______The Conference Board of Canada 255 Smyth Road Ottawa, Ontario K1H 8M7 E-mail ______Canada Tel + 613 526 3280 Fax + 613 526 4857 Tel ______Fax______conferenceboard.ca

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The Conference Board Programs subject to change BoardAsia Project Code: 6307-05 Winter 2006 Agenda Code: MA3