EFFECTIVE BUSINESS LEADERS CRUCIAL NOW, SAYS M'SIAN DPM

KUALA LUMPUR, Feb 17 (Bernama) -- The current global economic challenges
have put chief executive officers (CEO) of companies in the front and centre of
attention, with their past actions being scrutinised and their behaviour and
actions going forward being closely watched, Deputy Prime Minister Najib Razak
said here, Monday.

CEOs, he said were expected to rise to the challenge and steer their
organisations and corporations out of troubled waters that the world economy
was now in.

"The business world is witnessing massive upheaval and scandalous
revelations. The crisis calls for a re-examination of the corporate culture and
the way business had been done. In some of the scandalous revelations in the US,
it has proven that business as usual is not an option anymore.

"That model has been been broken. A new way needs to be found. It calls for
active, innovative, aggressive leadership and bold decisions. In view of this,
effective leadership has never been more important," he said at the New Straits
Times and American Express organised Malaysia's CEO of the Year Award 2008
ceremony at a leading hotel here.

He said periods of economic stress, test the ability and capability of CEOs
and demand that they rise to the challenges and how they steer through such
troubled times would show the mettle he or she is made of.

"The CEOs of today are being tested on several levels, both internally and
externally. While they may have some control over their internal environment,
they certainly do not know what awaits them externally in the current volatile
business environment," said Najib, who is also Finance Minister.

Reminding CEOs that loyal and hardworking employees were best assets of any
organisation, he urged them to "strengthen and retain what you have" and that
it would be difficult to find good workers when economic recovery eventually
came.

He urged CEOs to train and equip staff with appropriate knowledge and skills
to enhance efficiency and improve competitiveness, as these cannot be ignored
even during difficult times like now.

Najib said in today's fast paced, hyper competitive, technology driven
world, common sense and good judgement mattered more than ever and "as leaders
of your respective organisations, the shareholders and the board are not your
only constituency as your decisions and actions have implications far beyond
your office and company."

"Therefore, to face the rapidly changing and increasingly hostile economic
environment that effects your business, CEOs as leaders, must be prepared to
change the reactive mindset, make a paradigm shift by taking the bull by the
horn and be proactive in addressing issues that threaten your livelihood and
the well being of your employees and customers," added Najib.

The Deputy Prime Minister said in the fast paced world of business, CEOs
must not only multi task and cater for varied and different demands on their
time from the multitude of "constituents", but also be ahead of the business
cycle in ensuring the continued survival of their business.

"While, the bottom line and the financial performance of a company is
important, there is more to running a corporation than just bottom lines. The
continued survival of the company and that of the CEO will depend on the
leadership and skills demonstrated in enhancing competitiveness and efficiency
of the corporation, retaining and building confidence of their employees,
maintaining trust of shareholders and retaining loyalty of customers.

In the current difficult environment, CEOs are required to deliver far more
than they have done so in the past, he said, adding that a lot rested on them as
business leaders trusted to deliver to customers the best service and quality
products with honesty and integrity.
-- BERNAMA