What We All Can Learn From China's Business Leaders

Over more than 30 years, the chief executives of Chinese companies have risen from pariahs to role models in a rapidly changing world. I recently interviewed 15 top Chinese corporate leaders, and found that they have important lessons to teach us in the West. They especially show an underlying ability to broaden their thinking and integrate perspectives. They reveal three perspective-taking practices are essential for leading change and that can prove of value to leaders everywhere:

1. First, reframe. The two-character Chinese word for business, sheng yi, literally means "create new meanings." Business, according to the Chinese CEOs I interviewed, starts with seeing what is and what it can be. They constantly present themselves, in effect, with the framing question "What image do I see in my mirror?" and the reframing questions "How might I see it differently?" and "What am I blind to?" Those questions help them continually reframe and reinterpret what lies before them, behind them and within them. They clarify their passions, redefine their strengths and reinvent their business approaches.

A CEO I talked to at a textile company reframed the notion of success by moving from competition to collaboration. In a cutthroat environment, he began to build relationships and even introduce clients to competitors. "From one angle, it seemed like career suicide," he said. "But, it could also bring more opportunities. I saw that it would not be enough for my company to be famous for textiles. We must build an international brand for our region as the hub for textile production. Then we could attract business not only in China but around the globe."

2. Next, transcend. In Taoism, the greatest leaders deeply appreciate the interrelation between ying and yang, or positive and negative. Effective Chinese CEOs intentionally take a long view of their enterprises' cycles of ying and yang. They seek out lessons from history and from the experiences of others. They ask, "What if I see an unexpected image in the mirror?" In doing so, they become neither complacent in victory nor desperate in defeat. They transcend the highs and lows of the current moment and thus build their resilience and learn to accept, and not resist, the ambiguities inherent in change.

A chairman of a fund-management firm in China illustrates for me how the mindset of transcendence can drive organizational success. He reads extensively, particularly noting what he calls "winners' curses," when celebrity leaders failed to achieve enduring successes. He also regularly imagines himself handling crises even though his company shows no signs of immediate danger. He explained, "When the TV weather channel broadcasts that it is going to be sunny today, I ask myself, 'Am I ready if a terrible storm strikes in five minutes?' Every day I spend 70% of my time planning for the future." As he transports himself into an imaginary difficult situation, he identifies weak business links, anticipates problems and invents solutions.

3. Finally, listen. When leaders work hard at listening to others, they build, or rebuild, mutual trust and respect, make space for innovation, and drive, or survive, change. Some CEOs ask, "How big is the gap between what I see in the mirror and what others see in me?"--and truly listen to the answers. Such leaders aggressively seek to address gaps and misperceptions, not ignore them.

Remember that the social and cultural environment in China was extremely hostile to private enterprise several decades ago. Profit was seen as contrary to the righteousness of mainstream Confucian teachings. Private ownership was abhorrent. Banks weren't willing to offer loans to private businesses, because they didn't trust them. Consumers doubted the quality of the products and services offered by new companies. That's why even now one CEO told me, "You cannot get any business done if you listen to stakeholders only in offices. You must do the same when you interact with them in your social and private lives." China's emerging leaders have built close relationships with stakeholders by being consistent listeners in both professional and personal settings. Over time, they have successfully reversed the prevailing cultural prejudice.

Emperor Tang Taizong, of the Tang Dynasty, one of China's most admired leaders ever, famously said, "With a bronze mirror, one can see whether he is properly attired; with history as a mirror, one can understand the rise and fall of a nation; with people as a mirror, one can see whether he is right or wrong."

Nearly 14 centuries ago Tang asserted the importance of perspective-taking for a leader's success. It is still relevant and essential for change leadership. In the spirit of Tang, we can use reframing, transcending and listening to transform challenges into opportunities and successfully forge ahead in the face of an uncertain future.

Cheng Zhu is a senior faculty member at the Center for Creative Leadership and author of the chapter "Chinese 'Sheng Yi': Reinterpreting Challenges for Leaders" in The ASTD Leadership Handbook (2010).