Annie Leung of management consultancy CEO mindPower uses tools such as this painting to help clients understand the psychology of success

Management consultant and executive coach Annie Leung has made a business of sitting down for heart-to-heart talks with some of Asia's most powerful corporate leaders. The success of her work illustrates a growing awareness that survival is something of a "mind game" for small and medium-sized enterprises (SMEs) and larger firms alike.

"It's important for anyone who wants to set up a business that they figure out their blind spot. You need to know yourself," says Ms Leung.

"The Chinese often say you must ‘hide under an umbrella' that big business – which has systems, people who support you and corporate governors – provides. But to be an SME, you're on your own. So you need a high degree of understanding and awareness of your own competency, starting with your personality."

Ms Leung should know. After more than 20 years as chief executive of multinational companies, building major brands from Longman and Hello Kitty to Barbie and Looney Tunes, she set off on an entrepreneurial course – starting an executive coaching and consulting company called CEO mindPower.

Amid the current global economic turmoil, Ms Leung has been busy helping Hong Kong SME leaders deal with the crisis strategically, emotionally and psychologically. She says those mental factors are critical, yet often ignored, even when business is good.

"What's important is how you handle setbacks, what kind of attitude you have, and what I call ‘mind power' to get through it, because setbacks are bound to happen sooner or later."

Ms Leung says the "power"stems from a proper mindset as well as skills set, but she finds Asian managers are often less open to the idea of exploring their own business psyche, and many benefit from self-discovery, which leads to more creative thinking.

"I consult many entrepreneurs who are very bright people; so bright that when they encounter difficulty, they think, ‘I can fix it.' To some extent they hang on to their past, but in reality the whole world has changed," says Ms Leung, noting that many start-up company managers only seek help when it is too late.

"I advise people that when you do something, you have to do it wholeheartedly. You may have to burn bridges to do it, but make sure you first have support financially, emotionally and socially. Don't just burn your bridges and jump into the water, because the stress is so great that it will sidetrack you.

The Turtle

	Hung Fook Tong Executive Director Ricky Szeto also teaches university students about the importance of developing an entrepreneurial character

Veteran businessman Dr Ricky Szeto says those preparations should begin well before an entrepreneur goes into business. The head of the Hung Fook Tong chain of health drink stores is also a professor with Hong Kong's Shue Yan University and The Institute of International Economics at Beijing's Peking University.

Mr Szeto joined Ms Leung and other successful businesspeople at last month's Entrepreneur and Continuing Education Day, organised by the Hong Kong Trade Development Council and sponsored by the Hong Kong Government's Education Bureau. The event highlighted opportunities and services for new business start-ups through seminars led by successful entrepreneurs. 

Dr Szeto tells students considering an entrepreneurial path to work hard developing the personal characteristics they need to handle stress.

"I don't think just anyone should be an entrepreneur. While some people have a propensity or personal character-match to be an entrepreneur, others are better off enjoying professional work on a job basis," he says.

Dr Szeto teaches what he calls the "four Ps of entrepreneurship." He says "playfulness" generates creativity and an understanding that losing is a setback rather than overall failure. He adds that "passion" is essential, because entrepreneurs must love what they do, while "persistence" keeps them going.

"And, you must be ‘positive' - because as entrepreneurs, we should not look down on ourselves. We walk bit by bit, and understand our direction just as a turtle does. Others may not appreciate what you do, so in your heart you must be positive and know that you will prove your path may not be the best, but it is still a good way," says Dr Szeto.

"The most difficult thing to teach students is that they must know their own selves. Many young people in Hong Kong want to study business administration, but before you enrol in such a programme, you must know what is demanded of you."

Stewart Thornhill of the Richard Ivey School of business says entrepreneurs risk failure if they do not learn how to survive start-up stress

The psychological factor is finding its way into other business schools. Stewart Thornhill, a professor of strategy and entrepreneurship at Canada's Richard Ivey School of Business, who frequently teaches in Hong Kong, says an entrepreneur must "know thyself" before he or she can manage business obstacles.

"When they wake up in the middle of night with a cold block of ice in the pit of their stomach, because they're not sure if they are going to make payroll this week - what do they have to do to keep on going? Once they figure that out, they never, never stop," says Mr Thornhill.

Failure to keep psychological "momentum" may even be harming global economic recovery. Luke Johnson, Chairman of UK broadcaster Channel 4 and head of private equity firm Risk Capital Partners, says entrepreneurs have suffered from an "epic loss of confidence" and must revive their "animal spirits."

"Right now, too many would-be entrepreneurs are worrying about dangers and not rewards," Mr Johnson wrote in a Financial Times column arguing against a global rush to more regulation and state intervention.

"Fear has overwhelmed greed: the adventurous are on the retreat. Until we reverse this psychology, we shall never recover our economic momentum."  

The Unicorn

Reversing negative thinking may come down to individual business leaders taking stock of their own personalities. Management consultant Ms Leung has a painting of a unicorn strategically placed by the entrance to her office. She often asks visitors to describe the image, which serves as a sort of Rorschach test, putting clients in touch with how they view themselves.

"All people are different," she says. "And being aware of these differences can turn even a personal weakness into driving forces. First you need awareness, and then acceptance of those weaknesses, before you can take action."

Related Links
CEO mindPower
Hung Fook Tong
Ivey School of Business