Striking right balance in internal, external talent
> PNB chairman says 75%-80% of positions in local firms should be filled by internal promotions and the rest by external hires
KUALA LUMPUR: About 75%-80% of positions in Malaysian corporates should be filled by internal promotions and the remaining 20% by external hires, said Permodalan Nasional Bhd (PNB) chairman Tan Sri Abdul Wahid Omar ( pix).
He said there is a need for Malaysian corporates to strike the right balance between internal and external talent, opining that one in every four to five positions should be filled externally.
“I believe in nurturing your talent or to ‘grow your own timber’. This is important to provide the employees with good career progression opportunities. However, it is also important to bring in external talent from time to time, to refresh the organisation and to bring in external perspectives,” Wahid said at the Malaysia Leadership Succession Summit yesterday.
He said it is also important for Malaysian corporates to rejuvenate from time to time and perhaps look at imposing a time limit for board members to serve.
“While long serving CEOs provide stability to the organisation, there is also the risk of the leader and his organisation slipping into complacency. A rule of thumb, no one should be in the same position for more than 10 years, whether as a head of department or a CEO. If the person is good, he should be moved to a bigger role or organisation,” said Wahid. He said corporates should also develop young talent as not many young people are given such opportunity now. Wahid was the CEO of UEM-Renong group when he was 37 years old. Other aspects of developing talent and leadership in Malaysia includes the need to select the right leader, focusing on integrity, competency and humility; the need to put into place a proper succession planning and talent review process to cover key positions; using diversity in terms of skills, gender, ethnicity, age and even nationality for multinational organisations as a source of strength.