- Non-Japan Asia’s Influence on the Global Operating Environment Perceived
as Greater than the U.S. and Western Europe -

- Yet the West Still Seen as Driving the Dynamic Leadership Practices Needed for Future Success -

LOS ANGELES and SINGAPORE, February 7, 2007 – Korn/Ferry International (NYSE:KFY), a premier global provider of talent management solutions, today released the findings of a survey it conducted worldwide in late 2006 with the Economist Intelligence Unit to gauge perceptions about what it takes to successfully drive growth strategies for Asia, as well as the impact the region is having on the evolution of international business practices.

When asked to rank various geographic markets according to their influence on the macro business environment, 72 percent of the C-level respondents surveyed rated non-Japan Asia as the most significant, while 64 percent voted for the U.S. Notably, Western Europe ranked third (33 percent), followed closely by Japan (26 percent).

Yet, when scoring Asian business heads on their ability to establish best leadership practices and develop world-class teams capable of thriving in a global marketplace, fewer than 20 percent of executives considered them to “greatly excel,” while their U.S. counterparts were given the nod by a full 50 percent of respondents. Again, Japan stood out as a cut above its neighbors, ranking higher than or at least on par with Western Europe in terms of setting global leadership standards (27 versus 25 percent) and developing winning teams (30 versus 31 percent).

“As Asia’s prominence as an economic powerhouse has risen, so have the expectations of foreign investors and multi-national companies seeking to take advantage of the tremendous growth opportunities available,” said Paul C. Reilly, chairman and CEO of Korn/Ferry. “However, in order to deliver on Asia’s promise, we need to take a longer-term view, recognizing and planning for the complexity of the challenges present in such a diverse and developing market – not the least of which is the huge demand for leadership talent that is still scarce there.”

EAST MEETS WEST IN LEADERSHIP
Thirty-five percent of the executives polled indicated that globalization warrants a new set of business standards combining best practices from Western and Eastern cultures, and that a “fused” leadership profile will evolve over time. In fact, almost 40 percent see the potential for an Asian business leadership model to replace Western practices in the future as long as the parent company’s culture is kept intact, whereas 24 percent believe that the ideal would be simply to adapt Western standards in an Asian context.

Specifically, Western managers running businesses in Asia are encouraged to focus on establishing strong local networks, to reflect the current Asian business leadership style that respondents said is characterized by a heavy reliance on familial and friendship links (57 percent). For Asian companies aspiring to go global on the other hand, more than half of those who took the survey said the most critical Western practices that will ensure their success are 1) empowering employees and 2) focusing on strategic vision.

“The cultural diversity of the region, the need to manage the break-neck pace of growth here, and many other factors are making it more and more difficult to define one leadership style or set of best practices that will be the most effective in Asia,” said Charles Tseng, president of Asia Pacific for Korn/Ferry. “Our study illuminates the paradox facing even the most sophisticated companies wanting to expand or enter the region today: how to reconcile their growth targets with the paucity of best-in-class leadership talent.”

About The Study
Entitled “The Dream Team: Delivering Leadership in Asia,” the survey polled over 300 C-level executives with primary responsibility for or familiarity with their company’s operations in Asia. Thirty-four percent were based in the Asia Pacific region, 27 and 28 percent in North America and Western Europe respectively, and the remaining 11 percent in Latin America, Eastern Europe, the Middle East and Africa. The study is part of Korn/Ferry’s regional “Delivering Leadership” campaign, and is the second in a series of significant research projects and thought partnerships that will be conducted to explore and help shape the development of Asia’s business landscape for the future.

About Korn/Ferry International Asia Pacific
Korn/Ferry International, with more than 70 offices in 40 countries, is a premier global provider of talent management solutions. Korn/Ferry was the first major U.S. executive search firm to operate in Asia Pacific when it opened its doors in Tokyo in 1973. Today it has 15 offices in key business centers throughout the region, including: Auckland, Bangkok, Beijing, Hong Kong, Jakarta, Kuala Lumpur, Melbourne, Mumbai, New Delhi, Seoul, Shanghai, Singapore, Sydney, Tokyo and Wellington.

Based in Los Angeles, the firm delivers an array of services that help clients to identify, deploy, develop, retain and reward their talent. For more information on the Korn/Ferry International family of companies, visit www.kornferry.com.