One of the consequences of globalization for Asian companies is that they are now expected to match the performance standards of their counterparts in developed countries. In a recent survey of 27 leading Asian companies, we encountered the rigorous operational control of many top Western ones, but even now, little attention to managing and motivating people.¹

Certainly, in terms of the building blocks of managing performance, Asian executives rate their companies somewhat highly on organizational structure and highly on framing a clear mission (Exhibit 1). Most executives said that the operational-control processes and organizational structures at their companies were geared toward meeting targets and goals—and that responsibility was indeed pushed down to accountable performance units. But few felt that their companies set bold and measurable performance targets, though all agreed on the need to do so.

Of the three methods used to control or coordinate business performance—operational control, financial control, and the placement and management of people—Asian companies overwhelmingly favor the operational approach (Exhibit 2, part 1).

None of the executives reported that their companies place a strong emphasis on ways of managing people to ensure top-notch business performance. Yet a large proportion of the executives surveyed said...