As Vice President of Human Capital for the International Air Transport Association (IATA), Italian native Guido Gianasso is playing a significant role in the human resource management of an organization that represents, leads and serves the airline industry. IATA’s members comprise some 230 airlines - the world’s leading passenger and cargo airlines among them - representing 93 percent of scheduled international air traffic. Gianasso, who previously served in senior human resource positions for the United Nations, the World Bank and several leading multi-national corporations, heads a unit that strives to provide IATA employees with a great working and learning environment. IATA creates this learning atmosphere in part by utilizing the IMD Corporate Learning Network, which offers members lifelong learning and world-class networking.

The airline industry is facing numerous challenges. In this first installment of the IMD Corporate Learning Network Executive Spotlight, Gianasso addresses some of these challenges as well as how learning takes place within IATA.

What are the greatest challenges in your industry over the next five years?

Aviation, the world's most global industry, is also the most fragmented, with over a thousand airlines competing for rare profits. The industry average profit margin is just 0.3%! The list of challenges is long, ranging from fuel prices averaging over $100 a barrel to the US credit crunch slowing traffic growth. Just imagine that for every dollar the price of oil goes up, costs for airlines go up by 1.6 billion. Another major challenge that will accompany us over the next five years is how the concern for climate change will drive the need to deliver results to reduce emissions. Monopoly suppliers (airport authorities first of all) charging extravagant fees and the uncoordinated mess in airport security measures are additional issues making life very difficult for airlines.

What are the essential skills that every great business leader must bring to an organization?

A great business leader must be able to articulate a vision and align people to it. The vision is essential to give the company a sense of direction in a rapidly changing business environment. At the same time, a business leader must be able to inspire and mobilize internal and external stakeholders.

In your estimation, what is the most common mistake business leaders make today?

Leading a business in these turbulent times of change is not easy. Balancing strategy and execution, short-term against long-term and detecting indicators of mega trends early enough are some of the important challenges we are all facing.

Do you have an example of this?

A common mistake that I often see is grossly underestimating the importance of cultural differences. I find this very interesting. We all talk about growing markets such as China and India, and still there is very little interest in understanding Asian cultures and values. Statistically 70% of all foreign investments in China end up in heavy losses for the western partner. And the cause is not Chinese political or legal systems, nor is it language. It is the cultural divide. And still, many western leaders decide business acquisitions, mergers and outsourcing without realizing that these initiatives can be successful only if based on a good understanding of how our Asian business partners, clients and employees think. Western business schools, even the best ones, still devote very little attention to Asian cultures and their impact on business.

How does learning take place within your organization?

At IATA learning takes place in many ways. We put our focus on leadership development with a variety of programs, the most important being the Intercultural Leadership Engagement and Development Program (I-Lead). This program aims to develop - through action learning - a new generation of leaders able to work across cultures. We also believe that a good way to develop our employees is offering them international development assignments, swaps and shadowing programs. I recently met a young Chinese employee. Three years ago she started as an international intern in Geneva in the Chief Economist Office and then moved to Montreal and was promoted to Product Manager. I believe this is a nice example of the possibilities that exist for young and committed individuals in our organization. But I also remind newcomers that the key to their success is continuous learning; and continuous learning is based on their intellectual curiosity and determination to take every opportunity they have to learn and broaden their horizons.

What are the main benefits and takeaways that your organization experiences as the result of being a part of the IMD Corporate Learning Network? What are the main benefits of this membership for you personally?

IATA has been a part of the IMD Corporate Learning Network since 2007. We are an organization whose workforce is distributed among 74 offices around the world. Many of these offices are relatively small and our local employees have limited access to traditional learning opportunities. The learning network offers all our employees, in their offices in Lima or Auckland, a window of the world and an opportunity to hear and learn from the best. For me personally the Advisory Council is an opportunity to be in touch with my peers and discuss with them and with IMD Faculty topics of common interest.