A need for skills development and inspiration leadership
The Insurance Institute of South Africa (IISA) hosted its 2008 Annual Conference at Sun City on the 22-23 June 2008. The official delegate register lists 385 attendees from 156 organisations; and as we enjoyed the Gala Dinner on Sunday night and roamed the exhibitors’ hall on Monday it was clear most of those on the list were in attendance. In today’s newsletter we’ll share some of our thoughts on the conference presentations.
Titled “Charting the Course” delegates were treated to a diverse selection of professional speakers who shared their views on what is required for the continued success of the insurance industry (and South Africa) over the next decade. We cannot possibly do justice to a roster that featured seven guest presenters and both the present (Anton Ossip) and past (David Harpur) IISA Presidents. Instead we’ll save the meat of these presentations for future communications. Today we’ll filter out the reams of useful comment on the international and domestic economy and focus instead on the main themes that emerged during the event: the need for skills development and innovative leadership.
Setting up a skills production line
The skills aspect was comprehensively addressed during the presentation by INSETA chef executive, Mike Abel. He warned insurance companies against the knee-jerk response of cutting marketing and training during tough economic times. Talent, training and retention remain the ‘holy grail’ for success in the industry. Other speakers mentioned retention too. Patrick Kenny, President of the International Insurance Society pointed out that in the US, only 14 of 100 insurance agents remained in the industry after four years. He commented that the persistency factor was a great cost to doing business in the insurance arena.
Abel created a shortlist of likely skills shortages in the South African insurance sector over the next five years. He said the industry would have to create 3 840 managers, 9 670 professionals, 11 600 clerical & admin and 3 010 sales workers. These numbers were based on responses from various top executives. And the big question is: “Where will the industry find these skills?
INSETA is already busy with the groundwork: “We need to go to the matriculants and those in grade 10,” said Abel. He told the audience that INSETA had sent insurance brochures to more than 500 000 students and that a number of internship and mentorship programmes have been implemented to increase the number of black graduates entering the industry. But to guarantee success more direct action from insurance companies will be required.
We need more ‘enabling’ chief executives
Another presenter who shared strong views on leadership in the 21st century was Pete Laburn of Pete Laburn International. Laburn specialises in ‘possibility driven thinking’ and has spent many years helping “leading organisations to catalyse, develop and sustain their businesses, through bold strategic thinking and contemporary leadership practices.” He certainly left delegates with plenty to think about – and we viewed leadership in a different light when his 40 minutes were up. Some of the key skills for leaders include: industry knowledge, the respect of your peers, a giving nature and an understanding that “leadership is about influence not control!”
Laburn identified two types of chief executives. He labelled one the Chief ‘Extraction’ Officer and the other the Chief ‘Enabling’ Officer and proceeded to sketch the difference each leadership type could have on an organization. A leader who is intent on extracting the maximum performance from his staff will use any means necessary to achieve this goal – including driving his workforce relentlessly with not though for their longer term wellbeing. On the other hand, an ‘Enabling’ leader would build, nurture and develop a team for the long term.
We did some thinking and came up with a nice analogy from the rubber industry. Brazilian rubber farmers would put rubber taps in the trees on their small plantations to extract rubber. If a farmer tapped the tree too aggressively the tree would dry up and yield less rubber over a period of time. But with proper care and discipline the tree could yield more rubber over a longer period!
South Africa needs an inspirational leader
The undisputed highlight of Monday’s conference was the presentation by Anglo American chairman and author, Clem Sunter. He painted a rather grim picture for the country going forward, comparing South Africa Inc to a premiership football team in danger of being relegated. But there is hope.
He says South Africa needs an inspirational leader to avoid relegation. “I offer hope with conditions,” said Sunter. “We can get back to the middle of the premier league; but we’re going to have to work at it!” And he closed with a challenge to all conference delegates. He suggested we ask: “What am I going to do – what is my business going to do – to help South Africa get back into the premier league?
Editor’s thoughts:
The dominant themes at the IISA 2008 Conference were those of skills development and leadership. Presenter after presenter highlighted the need for inspirational leadership to ensure that South Africa delivers its true potential. And the challenge is not only directed to politicians; but to every single one of us. What are you doing to get South Africa back into the premier division? Add your comments below, or send them to gareth@fanews.co.za
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