gif Islamic Finance
opments to be implemented. The leader’s ideas are then brought to life by the people he or she is leading.
Not only is innovation necessary to compete with counterparts in conventional finance, but also to work together with the conven- tional financial sector. Working in co-opera- tion with the competition could help Islamic finance by creating a more sustainable ethical financial system around the world. Figure 3 shows the difference between con- ventional or Western leadership and Islamic leadership.
There is a long list of qualities essential to the core concept of Islamic leadership within an Islamic finance institution. The qualities include self-discipline; positivity; honesty; confidence; competence; humanity; proac- tive approach, and realism. These qualities may apply to both Muslim and non-Muslim leaders within the Islamic finance industry.
“Knowledge is power” could be an effective summary of the way to achieve an influen- tial role in the Islamic finance industry. The phrase conveys the message that having ac- cess to useful and relevant information gives one an advantage in handling situations and maximising opportunities.
Leadership roles within the industry, such as Chief Executive Officer, Director, Chair- man and Head of Department, all come with great responsibility for making innovations that not only make sense in theory, but are successful in practice. Innovation in Islamic finance takes the form of new, tailored prod- ucts and services that have both unprece- dented purposes and characteristics.
In order for the people in power to use their authority effectively, they need to engage in a range of activities which influence people and which gain acceptance. These activities can be classed into three categories:
• Rational • Psychological • Social
Within the Islamic finance industry, building up a reputation is an important aspect of becoming an influential person. But those in power can rely on alliances and good repu- tations to get favours, improving their influ- ence and their power of achieving goals.
Some of the people featured in the listing have taken on the responsibility of creating new levels of Islamic finance and introduc- ing innovative products and services. For leaders, the innovative process is very im- portant, and challenges the financial prod- ucts and services already established.
18 Global Islamic Finance April 2012
The leader must use a proactive method in order to ensure innovation, and must work with positivity and confidence in his or her ideas. In addition, modesty ensures that the leader is also working with his or her peers, and taking on any suggestions or advice that could help.
The finance industry is fast-paced and com- plex, and it is important that the leaders are respected by their peers and by the competi- tion. An ideal way of gaining respect is to be simultaneously kind to others and confident. The confidence must be based on honesty, and not deceit.
The leader must have confidence in his or her suitability for the roles and responsibili- ties that he or she has taken on, as this will give others confidence in the leader.
One key responsibility which leaders face is the distribution of resources, and of mana- gerial roles such as knowledge and financial skills. Leaders must pay attention to the IT opportunities, as these resources ensure that Islamic financial products remain Sha- riah-compliant.
Across the world, Islamic Financial Institu- tions (IFIs) give a lot of their time to struc- turing Shariah-compliant products and services - but do they focus enough on the importance of promoting Islamic finance? In order to ensure continuity, and improve the performance of IFIs, leadership programmes need to be made available.
Staff training programmes are also very important in attaining a higher standard of human resources and improving customer experience and customer service quality. An IT environment which caters to the Islamic banking requirements will also need to be developed. A well-developed IT environment is an important consideration for market players wanting to enter the Islamic financial market and develop or change their systems to include Islamic banking.
The differences between conventional in- stitutions and IFIs could bring challenges in the future. There are differences in the mar- ket systems, regulations and practice. The goal of developing a united code of practice within the Islamic finance industry is very important.
The code of practice for IFIs needs to be con- sistent, and to address the different finan- cial and Shariah governance and application methods within the industry. The customers’ views are very important: by understanding the customers’ perspective, IFIs are able to develop the correct products and services to meet their needs. An in-depth understanding of customer preferences will help the public
to tell the difference between the Islamic banks and the conventional competition.
When facing challenges within the Islamic finance industry, leaders must be driven by meaning, community, honesty and trust. They must inspire and motivate staff, who invest their time in the organisation, often at the expense of family or personal time. This is one of the challenges that leaders face.
Knowledge is an important and powerful tool for a leader; without self-knowledge, how can they understand their organisa- tions, position in the community and cus- tomer base? All of the leaders featured in our listing have a high level of qualifications, proving that knowledge is necessary and important within leadership in the Islamic financial industry.
Reputation and networking for industry leaders Attending conferences and networking is a good start to building important and ben- eficial business relationships. All of the in- fluential people on our list have attended numerous conferences, and have also been key speakers or part of the discussion pan- els. Leaders are always meeting people who share their passion for the Islamic financial industry, and who pass on valuable skills which are important to develop and expand the industry.
Reputation is a big part of building a promi- nent role in the Islamic finance industry. Building on business relationships can help you in the future, and increase your reputa- tion within the industry. However, although reputation is important, some of the influen- tial people featured on the list prefer not to be in the public eye.
When Alberto Brugnoni, founder and chair- man of the board at ASSAIF, was asked which awards he had won or been nomi- nated for, he said that, ’I always shunned this sort of thing, and focused my energies and time on actions and concrete results for the sake of the value proposition of Islamic finance - although I often receive letters of appreciation. It is perhaps also a question of character: I pretty much shun the public life and prefer the backstage to the spotlight.’
Every leader within the Islamic finance in- dustry is different, but they all have some- thing in common - and that is the drive to make a difference and contributing to the growth and development of the Islamic fi- nance industry.
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