Late last week, Microsoft announced its selection of two new technology leaders for its top team, in preparation for Bill Gates' pending departure in two years. This signals the beginning of a changing of the guard, and perhaps eventually a change of dynasties at the world's largest software company.

So that is the most important message the company thought it could give to customers and investors before anything else, such as when the Windows Vista, the new-generation operation system that the company has promised, will actually hit the market.

This must be part of a strategy. Investors would at least like to think so. The release of a handful of new products cannot be more important than the long-term development of its supplier. What matters to the future of a business, is after, all its leadership where management is taking the company, and its ability to do the right things.

At the same time, it is more encouraging to note that many companies are making efforts in the same direction, trying to bring new strengths to their management and hoping to improve the overall quality of their leadership.

The State-owned corporations in this country, though built on the model of the planned economy in which all corporate leaders were appointees of the government's industry administration, are also learning to make their leadership teams more diverse and versatile.

Earlier last week, the State-owned Assets Supervision and Administration Commission (SASAC) announced plans to recruit top managers for some of largest State-owned enterprises (SOEs) from across China and overseas. This is SASAC's fourth such recruitment campaign since the government agency was established in 2003 to supervise the reform of the economy's State sector.

The positions being advertised this time include high-level directors and financial controllers for some large industrial conglomerates and design institutes. In August, they will be joined by some positions at key corporate legal councils.

In fact, it is nothing new for SOEs to advertise high-level positions overseas. All State-owned banking groups have started tapping the international market for high-end expertise.

All Chinese companies listing overseas have at least maintained regular contact with all sorts of professional consultants in the financial service sector. Some provinces are also trying to recruit from abroad for regional SOEs.

However, it must be pointed out that while SASAC is still at the stage of testing the waters, companies grown in a more competitive environment are striking out hard. They can sink at any minute if they fail to attach strategic importance to the building of their leadership teams.

One aspect to note in Microsoft's transition is that, by bringing two men with fresh ideas into its highest echelon, it is also identifying more individuals for its next tier of leaders. Gates was smart enough to say that while the world has a tendency to focus "a disproportionate amount of attention" on him, what Microsoft always wants to be is a company of "strong depth and breadth of technical talent."

In contrast, while there are one or two talented and highly ambitious individuals at the very top of many Chinese institutions, such as corporations and city governments, the rest of the team may remain inadequate, plagued even by a lack of basic skills and training.

It is unlikely those talented persons can really make much of a change when they have to work with an inadequate team. Having just one or two capable persons is not equivalent to having a team, let alone a team that can be called a good leadership. While advertising for talented individuals, government agencies should develop a new set of rules applicable to all members of SOE management teams.

Email: younuo@chinadaily.com.cn

(China Daily 06/19/2006 page4)