Managing Leadership Skills 2024

If you're an aspiring leader and wondering what skills you need to develop to be exceptional in your role and conquer the above challenges, here are five skills you should concentrate your efforts and attention on:

Adaptability - To build adaptability as a leader or manager, concentrate on cultivating a mindset of continuous learning. Try to embrace change and view new market trends or challenges as growth opportunities instead of seeing them as threats, and encourage your team members to do the same. Being agile and resilient will help you easily flex your approach and pivot your strategy where necessary. One important way to develop adaptability as a skill is to rethink your attitude towards failure, and use setbacks and negative feedback (regardless of the source) to help you grow as a leader.

Emotional Intelligence - Emotional intelligence (EQ) is another essential skill needed by today's leaders. Qualities associated with emotional intelligence such as curiosity, lifelong learning, motivation, and self-awareness, are highly prized by organizations and will be in demand for the next few years. This is particularly because workplace relations in 2024 are so complex that they require much more than raw hard skills and talent. You need to develop EQ traits such as self-awareness, a growth mindset attitude of lifelong learning, and being empathetic and establishing healthy work relationships through your communication. 

Communication - Business communication is at an all-time low. Approximately 75% of employees see communication skills as the number one essential attribute for leaders. Poor communication costs U.S. businesses an estimated $1.2 trillion annually. This is why it's essential to focus on communicating effectively, through active listening, using multiple (and the most appropriate) communication and collaboration tools, and being mindful to use your words to empower, motivate, and inspire with confidence. Also consider that what may be interpreted in one way might be construed offensively or not be comprehended at all, by others. 

Artificial Intelligence - AI has rapidly taken over multiple industries globally over the past year, and organizations are now facing challenges of how to incorporate AI into their specific industries and workflows. It can be a challenge, especially when considering how to navigate data protection and security concerns and adhering to AI ethics, but it is achievable with the right knowledge, training, and support.

Change Management - 73% of employees report moderate to high stress levels as a direct result of changes in their organization, resulting in 5% worse performance than the average employee. This makes building change management skills such as effective communication, analytical skills, cross-functional collaboration, and strategic thinking, a high priority for aspiring leaders this year. 

GX Bank & Zurich

Berhad, Malaysia’s first digital bank, has announced a strategic 10-year bancassurance partnership with Zurich General Insurance Malaysia Berhad and Zurich Life Insurance Malaysia Berhad. This exclusive agreement seeks to revolutionize the insurance landscape by offering micro-protection products tailored to the needs of the underserved population.

The collaboration, outlined in a recent joint press announcement, aims to deliver digital insurance solutions that are simple, user-friendly, and affordable. GXBank intends to use advanced technology and data-driven insights to identify customer pain points, collaborating with Zurich Malaysia to develop innovative digital insurance products.

The first of these digital insurance offerings is expected to launch in the third quarter of 2024, focusing on protection against unauthorized transactions stemming from cybercrime, as well as losses resulting from electronic scam messages. The product targets individuals typically underserved by traditional insurance markets.

More Accessible - 84% of Malaysia’s uninsured population falls between the ages of 18 and 34. Moreover, 58% of adults in Malaysia do not have life insurance. This gap in coverage is coupled with a rise in cybercrimes, with online fraud cases doubling over the past five years from 2019 to 2023, leading to losses estimated at RM1.3 billion in 2023 alone.

OCBC Offer To Acquire Great Eastern

Oversea-Chinese Banking Corporation Limited (OCBC) has announced a S$1.4 billion offer to acquire the remaining 11.56% of Great Eastern Holdings Limited that it does not already own.
This move aims to strengthen OCBC’s core pillars in insurance, banking, and wealth management while improving its capital management to boost shareholder returns.

Premium Price - The offer, which aligns with OCBC’s corporate strategy to solidify its position in wealth management, values Great Estaren shares at S$25,60 each. This represents a 36.9% premium over Great Eastern’s last traded price of S$18.70, with additional premiums ranging from 38.6% to 42.4% over various historical trading periods up to May 9, 2024.

The bank currently holds 88.44% of Great Eastern, and this offer seeks to secure complete ownership and eventually delist the insurer from the Singapore Exchange.

OCBC’s Strategy - OCBC introduced its current corporate strategy in 2022, emphasizing regional trade, investment, and wealth flows. The offer will aid the bank in strengthening its leadership in wealth management through hubs in Singapore, Hong Kong, and Dubai.

Over the last 10 years, Great Eastern has contributed an average of S$700 million annually to OCBC’s profits, comprising approximately 15% of the bank’s net profit. Increasing the stake in Great Eastern will allow OCBC to better leverage the synergies between the two firms.

This is not the first time that we are making an offer to increase our investment in Great Eastern – first in 2004, followed by 2006. As OCBC has been the majority shareholder of Great Eastern for the past 20 years, the group has entrenched institutional knowledge and expertise to manage the insurance business. We are confident this exercise complements our One Group, One Brand strategy. This will further accelerate our ambitious wealth management plans and build even tighter bonds and synergies across all our business pillars and key markets.

Reade Digest - A Giant Falls

The recent announcement that Reader’s Digest UK will cease its print operations after 86 years is more than just the end of magazine, it’s a dramatic example of what happens when companies fail to adapt quickly in a world of relentless change. The closure of this once trailblazing publication underscores a crucial lesson for all businesses: adapt swiftly or risk obsolescence.

Reader’s Digest - was once at the forefront of the publishing industry, pioneering direct marketing strategies that became the gold standard. With targeted mail campaigns and enticing sweepstakes, it carved a niche that drew millions of readers. At its peak, the magazine’s circulation soared above two million in the UK alone. But those glory days are long gone. The publication’s circulation had plummeted to about under 200,000 copies recently, reflecting a stark decline in reader engagement and subscription revenue. 

This decline speaks volumes. It wasn’t just the digital revolution that outpaced Reader’s Digest; it was the magazine’s inability to keep up with the rapid transformation of consumer preferences and the media landscape. The digital age demands agility and a willingness to pivot strategies quickly, traits that Reader’s Digest, saddled by traditional methods and legacy issues–including a hefty pension deficit– struggled to embody. 

The truth - the fall of Reader’s Digest isn’t unique. It’s a scenario playing out across various industries where longstanding giants find themselves outmaneuvered by nimbler, more innovative competitors who are not only ready to embrace new technologies but are also driving them.

The magazine’s journey from a market leader to a casualty of industry evolution is a cautionary tale highlighting the peril of resting on one’s laurels.

For businesses today, the message is clear: the pace of change is not slowing, and the tolerance for inertia is lower than ever. Companies must continuously seek out and implement innovations, not just in technology, but in all aspects of their operations, from marketing strategies to customer engagement and beyond.

In this era, even giants can fall. The story of Reader’s Digest serves as a stark reminder that no brand, no matter how once revered, is immune to the forces of change. To survive and thrive, evolution isn’t optional–it’s essential. This is the age of adapt or die, and the closure of Reader’s Digest UK is a poignant, if unfortunate, illustration of this reality.

Apollo Global Management - Acquiring Illegal Life Insurance

Apollo Global Management Inc bet on the longevity of senior citizens by acquiring illegal life insurance policies and funnelling the payouts through shell entities. The private equity giant allegedly set up a web of sham trusts – using a secretive affiliate called Financial Credit Investment – to hold a portfolio of stranger-originated life insurance policies worth US$20bil.

Insurable Interest - Taking out life insurance on a stranger is “anathema to hundreds of years of public policy” and a violation of the Delaware Constitution. Apollo has been carrying out a widespread fraudulent human life wagering conspiracy designed to not only hide its involvement, but to create the false appearance that the policies it owns are somehow legitimate.

The lawsuit was filed April 26 in Delaware’s Chancery Court by the estate of Martha Barotz, whose policy allegedly paid out US$5mil after she died in 2018. The case stems from earlier litigation between the Barotz estate and the Apollo-linked trusts, along with the estate’s subsequent attempts to collect on the nearly US$7mil judgement it won.

Prudential Dumped Assurance IQ

Insurance giant Prudential is shutting down Assurance IQ, five years after spending $2.35 billion to acquire the under-the-radar tech startup based in the Seattle region. Prudential noted in its first quarter earnings report it “decided to exit” the Assurance business.

Assurance IQ - Assurance uses technology to match consumers with insurance plans that are purchased online or through an agent. Its acquisition to Prudential was one of the largest in Seattle tech history, and the largest insurance tech exit in history.  

The startup, founded in 2016 never raised any outside capital and reached a $1 billion company. At the time of the deal, Prudential claimed Assurance’s “rapid-growth model offers compelling economic advantages with low fixed costs and low capital requirements that produce high margins and high degree of scalability.”

But just a few years later there were signs of trouble with missed financial targets and government inquiries over regulatory matters. Many insurance technology companies struggled amid the broader tech downturn that started in 2022.

Poor Performance - Prudential stopped reporting Assurance financial data in January 2023, in part because “its financial results and operations are not considered significant. Assurance reported adjusted operating income of $29 million in the fourth quarter of 2022, compared to a net operating loss of $10 million a year prior.

Prudential took goodwill impairment charges, used when a company’s value decreases following an acquisition, of $177 million, $903 million and $1.06 billion in the fourth quarters of 2023, 2022 and 2021, respectively.

Assurance had around 1,700 employees as of December 2022 and now has 1,000 employees, in addition to contract workers who help customers find insurance plans.

Great Eastern Posted 26% Growth Profit

Great Eastern posted a 26 per cent year-on-year increase in profit to $306.7 million for the first quarter ended March, versus $244 million in the same period the year before. This was driven by higher profit from the insurance business as well as favorable investment performance in the group’s shareholders’ fund, said the insurance arm of OCBC on April 29.

Profit from Great Eastern’s insurance business was up 4 per cent year on year to $236.3 million, which was attributed to a stable contract service margin release, as well as higher profit from general insurance.

Profit from the shareholders’ fund rose 245 per cent to $76 million mainly due to higher fee income, interest and dividend income – as well as mark-to-market gains in equities, collective investment schemes and derivatives.

Total weighted new sales rose 34 per cent on the year to $524.2 million from $390.9 million in Q1 FY2023, as growth across the group’s operations in Singapore, Malaysia and Indonesia was driven by core distribution channels across these markets.

New embedded business value – a measure of the long-term profitability of new sales – grew 21 per cent to $163.2 million from $135.4 million. Capital adequacy ratios of its insurance subsidiaries for the quarter were “strong and well above their respective minimum regulatory levels.

Shares of Great Eastern closed 9 cents, or 0.48 per cent, higher at $18.78 on April 29. While this marked the counter’s highest point in the year to date, the latest closing price remains about 40 per cent below April 2018 levels when Great Eastern was trading above $31 apiece.