Radical management practices are helping Asia’s top chief executives stay ahead in an era of economic uncertainty, from flat company hierarchy to “servant leadership.” “I have always been motivated to encourage managers to do their best to serve,” says Jahja Setiaatmadja, one of the top-ranking chief executives in Institutional Investor’s 2023 All-Asia Executive Team. Setiaatmadja became president director of PT Bank Central Asia in 2011, after serving as a director since 1999 and managing the bank through its recovery from the 1998 Asian Financial Crisis. He practices servant leadership, a style formulated by Robert K. Greenleaf in the 1970s that emphasizes serving employees rather than leading them. In more than 30 years at the bank, Setiaatmadja says he has brought positivity to the workplace by helping employees to achieve success through their own growth: “Through collaboration we gain mutual understanding to achieve common goals and the agility to respond to changes.”
Collaborating with employees is perhaps more challenging at Bank Central Asia, which has more than 50,000 staff, than it is at smaller, more agile companies. But Setiaatmadja’s desire to share power is not unlike that of Chris Lin, chairman and president of Taiwan circuit designers ASPEED Technology. Lin, who was highly ranked among chief executives in the technology semiconductor category, values independent thinking and free expression on the part of the company’s 100-strong staff. “ASPEED is a very flat organization,” Lin says. “All employees are independently responsible for project operations, and [if] there is an important decision to be made, they can come and discuss it with me.” Lin credits employee autonomy for the efficiency of the company, which has pioneered the development of 360-degree immersive intelligent cameras for smart factories and smart cities. The cameras improve on previous fisheye devices by allowing managers to remotely monitor machinery and operators, thus cutting staffing requirements.
Fluctuations in demand have created challenges for tech companies, however, and Lin says that ASPEED has suffered from weak orders in the server market, adding to prior challenges created by a semiconductor shortage.
Jamie Lin, CEO at Taiwan Mobile and the highest-ranking telecommunications sector chief executive in II’s survey, says that his company has also experienced fluctuations in consumer demand. He says that an unprecedented decline in the sales of smartphones is due to a saturated market, and explains that the company has thus shifted its focus to increasing the amount spent by its existing customer base.
Jamie Lin was in the U.S. — first as an MBA student at NYU’s Stern School of Business, and then to launch his own startup — when Apple and Google introduced smartphones to the global market. Although he had planned to settle overseas, the opportunity to bring some of that innovation back to Taiwan got the better of him. While the startup mindset has seen the company experiment with new ventures, such as cloud gaming in partnership with NVIDIA, Lin’s management style is more considered. Now still only in his forties, he says he has been refining his approach to leadership, including communicating more meaningfully with his employees, especially around business strategy. And that strategy? “Think long term,” he says, quoting Jeff Bezos, who said, “Just by lengthening the time horizon, you can engage in endeavors that you could never otherwise pursue.”
Chris Lin, Chairman and President, ASPEED Technology
Have there been any surprises in your sector this year?
Fluctuations in the server market, from last year’s wafer capacity shortage to this year’s order digestion and order weakness in customer demand. However, the excitement of AI is something to look forward to. It’s important to realize that the rise of a new technology era creates uncertainties and is full of challenges.
What challenges is the business currently facing?
The uncertainties in the overall server market, as well as the new products that ASPEED is introducing. We’re going to see challenges and breakthroughs for ASPEED.
How is your leadership style evolving?
ASPEED is a very flat organization. We’ve got about 100 employees. We adopt full authorization and encourage all employees to express their thoughts and opinions freely, and we only hire experienced employees. All employees are independently responsible for project operations, and if there is an important decision to be made, they can come and discuss it with me. This is the reason we’re able to maintain high efficiency, speed, and flexibility at ASPEED.
What new technology are you excited about?
I’m very excited to see the progress of AI and how humanity will benefit from it. This is a very exciting time for technology.
Jamie Lin, CEO, Taiwan Mobile Co.
Have there been any surprises in your sector this year?
Contrary to more optimistic projections, the telecom sector witnessed an unprecedented decline in smartphone sales in the aftermath of the pandemic, setting record lows. However, since the third quarter of 2022, Taiwan Mobile has successfully bucked this trend by implementing the “King of Mobile” strategy, which has boosted our smartphone bundle sales by double digits, despite the shrinking overall market. Additionally, we have been pleasantly surprised by the faster than anticipated recovery of travel and roaming services.
What challenges is the business currently facing?
Our primary challenge is navigating a saturated market amidst a declining population, necessitating a strategic focus on our existing customer base. As part of this approach, Taiwan Mobile has been creating unique bundle packages and introducing innovative products and services since 2020. Our aim is to increase our average revenue per user and reduce churn rates through this sustainable growth foundation strategy. Our efforts have paid off, with our smartphone average revenue per user growing for 24 consecutive months. Our postpaid churn rates also reached an all-time low, while our smartphone user base grew by 2.3 percent in the first quarter of 2023.
How is your leadership style evolving?
I’ve been refining my leadership style over the past years, focusing on providing meaningful recognition to my team members and clearly communicating our strategic objectives in well-orchestrated frameworks. By developing these two aspects, I’ve observed a more cohesive alignment within the team and a noticeable boost in morale, both of which are propelling us toward our shared goals.
What’s the best piece of business advice you’ve been given, and from whom?
To think long term. As Jeff Bezos once said, “If everything you do needs to work on a three-year time horizon, then you’re competing against a lot of people. But if you’re willing to invest on a seven-year time horizon, you’re now competing against a fraction of those people, because very few companies are willing to do that. Just by lengthening the time horizon, you can engage in endeavors that you could never otherwise pursue.” This wisdom has deeply shaped how I think about our strategies.
What new technology are you excited about?
Blockchain technology is something I’m particularly enthusiastic about. Over the next two decades, I believe it will revolutionize the way we store and exchange value, akin to how the internet altered information exchange over the past thirty years. The potential applications and benefits of blockchain are vast, and I eagerly anticipate its transformative impact.
Jahja Setiaatmadja, President Director, Bank Central Asia
Have there been any surprises in your sector this year?
We haven’t seen any particular surprises. Rising interest rates since mid 2022 have been expected, and Indonesia’s economy remains resilient and supportive of the banking industry. We keep a close watch on global developments and the next interest rate cycle, and we have to be agile to respond to the dynamics of our business.
What challenges is the business currently facing?
The banking sector is a proxy for the economy itself, and uncertainty is high in the global economy. We give credit to the government and regulators for the steps they’ve taken to preserve economic growth and banking sector stability. On the ground, competition is always there, which leaves us no room for complacency, despite our strong achievements. Another important point to watch is cybersecurity risk, for which we always have to be on alert.
How is your leadership style evolving?
I believe people are valuable assets for the company. In my experience, investing in people will result in further development of the individuals and the company. Cultivating trust and empowerment culture are absolutely important. Leading does not mean being authoritarian or only giving directions or assignments without absorbing the aspirations and input of employees. Leadership covers the functions of pioneering, aligning, empowering, and acting as a role model. I’ve always been motivated to encourage managers to do their best to serve and empower their teams and our loyal customers, which helps create a work culture in which employees can grow and harness their maximum potential. It’s called servant leadership. I also promote what we call “BCA Leader+,” which embraces broader elements of leadership such as empathy, humility in serving others, persistence but patience, and going the extra mile. Collaboration is part of our culture. Through collaboration we gain the mutual understanding we need to achieve common goals and the agility to respond to changes.
What’s the best piece of business advice you’ve ever been given, and from whom?
We have to be agile in responding to the VUCA (volatility, uncertainty, complexity, and ambiguity) settings. A leader must be alert and know when to put on the brakes and when to optimize opportunities. For example, in the past, the budget was like a holy book, but over time the target and budget have to be flexible, as things change very quickly. We need to have a rhythm in guiding business growth, in adjusting to macro- and microeconomic situations. In the end, a good leader will know the right time to pursue optimal targets. Customers help us to grow, and listening to customer needs pushes us to think of how to serve them better, what we can do more of, and how we can be their bank of choice, regardless of whether the business environment is colored by challenges or opportunities.
What new technology are you excited about?
We believe AI will play an important role in both the front end and back end. AI can help us in many ways — for example, it can be used to analyze a customer’s behavior patterns and transaction needs, provide customized financial advice, apply targeted product recommendations, and proactively detect fraud. We believe that continuous investment in IT is a must. We spend an average of $350 million in capex per year, and this year we’re investing in data centers, mobile banking enhancements, branch revamps, call centers, cybersecurity, automation, and much more.
