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How Smart Baltic Leaders Work 2006



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How Smart Baltic Leaders Work 2006

  1. 1. Baltic Leadership Survey Baltic Leadership Survey August 2006
  2. 2. summary overall remarks <ul><li>Organisations that have had a very successful year stood out in the survey … </li></ul><ul><ul><li>By setting high goals and being most flexible in reacting to environmental changes </li></ul></ul><ul><ul><li>By inclusive management, whereby employees are informed of the plans and have a high degree of freedom to act </li></ul></ul><ul><ul><li>By managers positive attitude towards the employees </li></ul></ul><ul><li>In the Baltic comparison some overall trends were: </li></ul><ul><ul><li>Lithuanian managers stood out as highly results oriented: achieving tangible results is an important goal and they tend to set their goals knowingly high. They also work longer hours. Their leadership style is inclusive and they give people the freedom to act. </li></ul></ul><ul><ul><li>Latvian managers in this survey stood out as the hands-on type managers, who are more likely to make decisions themselves and then explain the plans to their team. They were more focused on the details and directing the daily work of their team (*). </li></ul></ul><ul><ul><li>Estonian managers didn’t differ especially in their leadership style, but for taking better care of themselves – having longer vacations and leading a healthy lifestyle to keep re-energized </li></ul></ul>
  3. 3. the year 2006 has been quite successful in the Baltics managers evaluations of the success of their organisation in 2006
  4. 4. Latvian and Lithuanian managers attribute the success a bit more to themselves How much does the success of the organisation depend on the manager's decisions and actions?
  5. 5. motivation motivation
  6. 6. managers are motivated foremost by the content of their work, but also the material benefits that go with the job What motivates you as the manager the most ? <ul><li>In comparison: </li></ul><ul><ul><li>Estonian managers emphasize more the opportunity for self-fulfillment </li></ul></ul><ul><ul><li>Latvian managers named material benefits considerably more than others and working with a good team is more important for them </li></ul></ul><ul><ul><li>Lithuanian managers are results oriented and enjoy perfecting their work </li></ul></ul>stable and accustomed work rhythm changes, there is always something new recognition, positive feedback from others perfecting the work, continuously working out new and better solutions working with interesting and stimulating people self fulfillment – testing and developing oneself achieving tangible results good salary and corresponding life style an important and interesting job Lithuania Latvia Estonia
  7. 7. low motivation is attributed mostly to the team members , not the organisation or the manager Causes of low motivation <ul><li>Only every 4th manager ackonwledged the problems of low pay – for the employees it still tends to be an important factor of dissatisfaction </li></ul><ul><li>In comparison: </li></ul><ul><ul><li>Estonian managers attribute problems more to people focusing on other things besides work and inefficient cooperation and communication in the organisation </li></ul></ul><ul><ul><li>Latvian managers think more that managers should provide people more enough direction and support in daily work </li></ul></ul><ul><ul><li>Lithuanian managers see the problem more in people’s lacking skills or unsuitable characteristics </li></ul></ul>manager interferes too much and doesn't give e nough freedom to act manager doesn't give enough recognition to them manager doesn't provide them enough direction and support in daily work salary is too small they have other problems, outside work cooperation and communication within the organisation is not working organisation doesn't offer enough career opportunities they want to get by easier, not wanting to make an effort work is not a priority for them, other things are more important their skills and personal characteristics don't fit the job Lithuania Latvia Estonia
  8. 8. managers motivate their teams by sharing information and including people in decision making Practices of motivating the team <ul><li>However, the level of inclusion behind this statement can be different </li></ul><ul><li>In comparison: </li></ul><ul><ul><li>Estonian managers invest more in the pleasant work environment </li></ul></ul><ul><ul><li>Latvian managers believe in giving the work a larger meanig and assigning challenging tasks to people </li></ul></ul>offer interesting, challenging tasks explain the larger meaning and importance of their work take an interest in their work and well-being create a pleasant work environment (tools and premises) good salary and other material benefits give positive feedback, recognition openly share information about the goals and plans include them in decision making Lithuania Latvia Estonia
  9. 9. summary motivation <ul><li>Motivational problems are attributed mostly to employee’s lack of skills and interest and considerably less to organisational factors or actions of managers </li></ul><ul><li>The solution are seeked in involving people in decision making and sharing information about the goals and plans of the organisation, hoping to get people committed to the goals and their work – still, the degree of involving people can be quite different </li></ul><ul><li>However, in organisations that have had a very successful year the focus is less on blaming employees and more on organisational and managerial factors </li></ul><ul><li>The problem of low pay as a motivator is recognized only by every fourth manager as one of the most important problems, while the managers name it as one of their own main motivators and while its still a very real problem from the perspective of many employees </li></ul>
  10. 10. planning and directing planning and directing
  11. 11. overall, budgets are planned a bit more specificly than activities Planning – how specifically things are planned? Budget, financies Activities
  12. 12. a vision of activities extends longer than the specific budget Planning – for how long are things planned? Budget, financies Activities
  13. 13. the plans are not cast in stone in any of the Baltic countries How precisely do you adhere to the yearly plans and budgets?
  14. 14. goals are set in cooperation and action plans can be prepared rather independently How do you act when preparing and executing action plans? Are the proposals for your subordinates’ goals usually made … A. Your subordinates have a large degree of freedom to act B. You give them quite specific action plans and check execution
  15. 15. Lithuanian managers strive for the highest goals A. Knowingly high goals B. Knowingly conservatively How high do you usually set the goals for your organisation?
  16. 16. other important principles in planning What else is important in planning? (%, Baltic total) taking advantage of the experiences of others, learning from them recreational, team building activities setting high goals can't say other using intuition orientation towards development, innovation, creativity implementation of bonus systems being conservative, considering budgets and other restraints dividing goals up between divisions & people, assigning spesific tasks focusing on the end result importance of feedback and tracking implementation planning from bottom up, including people and getting their commitment reacting to environmental changes, flexibility to adopt plans description of planning measures, periods, management systems
  17. 17. appraisal and development discussions are common tools of management Appraisal and development discussions are conducted with …
  18. 18. financial measures are tracked monthly in most organisations Frequency of tracking different performance measures Achieving strategic goals Customer satisfaction (surveys, feedback) Financial measures (budget, growth, profit)
  19. 19. fulfilling action plans and other performance measures are tracked most frequently Frequency of tracking different performance measures Other performance measures (quality, product lines) Fulfilling action plans
  20. 20. including people in decision making and action planning is practiced by the majority of Baltic top managers Which of the following is closest to how you give directions to your direct subordinates?
  21. 21. motivating and involving people is the most important challenge in planning, giving directions and controlling What is most challenging in planning, giving direction and controlling? (%, Baltic total) Persuading the owners, government institutions in the plans Working out optimal processes, smooth work organisation Other Don't know, unanswered Achieving good cooperation Lack of resources, incl the right people Setting the right (ambitious and achievable) goals Predicting the changes in the environment, responding to these Lack of time Executing the plans consistently Achieving the goals set, achieving good results Control, tracking performance measures Motivating and including people, achieving their enthusiastic input
  22. 22. summary planning and directing <ul><li>In goal setting, both the conservative and high achievers philosophies are represented among the Baltic top managers. Lithuanian managers stand out as setting the highest goals. </li></ul><ul><li>Financies are planned more precisely than activities, but general action strategies are in place for longer periods than one budget year </li></ul><ul><li>Generally the attitude towards plans is quite flexible and managers are open to changing them, if the environment changes or new ideas emerge </li></ul><ul><li>Organisations that have had a very successful year stand out in setting higher goals and being more flexible in reacting to environmental changes than others </li></ul><ul><li>Financial measures and fulfilling action plans are generally tracked at least monthly, customer satisfaction and achieving strategic goals less frequently </li></ul><ul><li>The opportunity for employees to have their say in goal setting and their freedom to act when executing the plans is quite high </li></ul>
  23. 23. efficiency efficiency
  24. 24. Lithuanian managers are more efficiency driven Latvian managers have other priorities A. Getting more efficient is one of the most important goals for our organisation Attitude towards the importance of efficiency B. At the moment other goals (innovation, growth) are more important
  25. 25. managers try to be more efficient by prioritization and delegation of tasks What do you do to be more efficient in your own work ? <ul><li>In comparison: </li></ul><ul><ul><li>Estonian managers believe most in delegating the less important tasks to others </li></ul></ul><ul><ul><li>Latvian managers name delegation less </li></ul></ul><ul><ul><li>Lithuanian managers point out prioritizatin less </li></ul></ul>there is no need to be more efficient I focus on managing people I decide and act promptly, not putting things off analyses of performance measures, organisation of work I use time management software and other technological tools I focus only on work and avoid disturbance, when working I delegate as much as I can I prioritize the tasks Lithuania Latvia Estonia
  26. 26. difficulties in resource planning and systematic analyses of efficiency measures are most common challenges Common problems in striving for more efficiency <ul><li>In comparison: </li></ul><ul><ul><li>Estonian managers say more often that they haven’t found the best measures for evaluating efficiency and blame the lack of understanding and skills of the employees </li></ul></ul><ul><ul><li>Latvian managers say more that employees don’t want to make an effort </li></ul></ul><ul><ul><li>Lithuanian managers sense that people fear efficiency improving changes </li></ul></ul>employees fear that they will become redundant employees don't see the need to be more efficient employees don't have the skills to be more efficient external factors hinder being more efficient employees don't want to make an effort (more than others) employees are afraid of efficiency improving changes weak cooperation and information sharing between divisions haven't found the best measures to evaluate efficiency not being systematic enough in analysing the measures planning resources is difficult Lithuania Latvia Estonia
  27. 27. Baltic top managers try to encourage their teams to look for ways to be more efficient What do you do to achieve more efficiency in the work of your subordinates and collegues ? <ul><li>In comparison: </li></ul><ul><ul><li>Estonian managers don’t want to interfere in the work of their team and point out the need to focus on the essentials </li></ul></ul><ul><ul><li>Lithuanian managers believe more in IT tools </li></ul></ul>I don't interfere in people's work, I let them decide how to work most efficiently I involve consultants to find new ideas to increase efficiency I tell them to act in a planned way and focus on the essentials I provide IT tools that help to be more efficient I attempt to measure, evaluate efficiency I offer solutions to be more efficient I talk to people and ask questions to make them look for ways to be more efficient Lithuania Latvia Estonia
  28. 28. summary efficiency <ul><li>Efficiency is one of the most important goals in 2/3 of the organisations </li></ul><ul><li>Latvian managers agreed with that considerably less than Estonian and Lithuanian managers </li></ul><ul><li>In striving for more efficiency, problems are seen more in organisational factors than among employees – planning resources, measuring efficiency and achieving good cooperation between departments are the main challenges </li></ul><ul><li>For solutions, managers turn to their teams and encourage employees to find ways to be more efficient, but they also are involved and offer solutions themselves </li></ul><ul><li>In organisations that have been very successful in 2006 measuring efficiency is more of a priority than in other organisations. Also the managers of these organisations encourage their people more to take initiative in finding ways to be more efficient </li></ul>
  29. 29. re-energizing re-energizing
  30. 30. top managers work on average 47 hours a week and take a 3 week vacation How much time have you taken off for vacation in the last couple of years? (%) How many hours do you work on average in a week? (%)
  31. 31. managers gather energy by spending time with their families How do you gather new energy for work ? <ul><li>In comparison: </li></ul><ul><ul><li>Estonian managers emphasize following a healthy regime more </li></ul></ul><ul><ul><li>Latvian managers named more spending time with friends or alone, to organize one’s thoughts </li></ul></ul><ul><ul><li>Lithuanian managers have the best ability to make things easy for themselves and take their jobs as a game </li></ul></ul>I spend time alone and organize my thoughts I take my job as a game, I make things easy for myself I spend time with friends I can disconnect from work, if necessary I read and mentally develop myself in other ways I travel, incl. combining leisure and business trips I follow a healthy lifestyle (sports, nutrition, physical work) I spend time with my family Lithuania Latvia Estonia
  32. 32. problems of keeping the energy level high are seen to come outside work and from people’s lack of skills Causes of not being energized <ul><li>In comparison: </li></ul><ul><ul><li>Estonian and Latvian managers see the lack of skills of planning and prioritizing as the first problem </li></ul></ul><ul><ul><li>Lithuanian managers don’t see that as the first issue, but attribute problems more to personal issues </li></ul></ul>employee is too conscientious, always trying to be the best organisation puts too many obligations on employees employee feels the lack of attention work is routine or hard in some other way employee's internal negative attitude towards life and work employee can't plan and prioritize employee has problems in personal life Lithuania Latvia Estonia
  33. 33. managers uphold the energy of their teams by giving people freedom in their work and organisation of joint events Most common practices of keeping the team energized <ul><li>In comparison: </li></ul><ul><ul><li>Estonian managers support people’s own learning and sports activities and advise people not to focus only on work </li></ul></ul><ul><ul><li>Latvian managers don’t believe a strainless working atmosphere is a good one, but they give additional paid vacation time, if necessary </li></ul></ul><ul><ul><li>Lithuanian managers try the most to create a strainless working atmosphere </li></ul></ul>keep people's work load moderate give additional payd vacation time to people, if necessary advise to pay attention also to other parts of life besides work support learning and sport activities create a strainless working atmosphere (avoiding also the strain of speed) support the organisation of leisure, training and energy building events in the organisation give them freedom in the organisation of their work Lithuania Latvia Estonia
  34. 34. summary re-energizing <ul><li>Problems of keeping the energy level high are most commonly attributed to people’s personal problems and lack of planning skills </li></ul><ul><li>At the same time, the most common solution is to give people freedom to organize their own work – maybe developing the planning skills should also be a priority </li></ul><ul><li>More than half of the organisations see investment in joint leisure and energy building events as one of their main solutions </li></ul><ul><li>Even more attention goes to joint events in organisations that have been very successful in 2006, while keeping the workload moderate is less of an option for them (success probably means more work) </li></ul><ul><li>In very successful organisations managers see more employees that even try too hard to do their best, instead of saying that people can’t plan </li></ul><ul><li>Personally the managers of very successful organisation work also longer work weeks, but at the same time take longer vacations to be re-energized </li></ul>
  35. 35. survey methodology background of the respondents <ul><li>The survey mapped management practices of top managers of Estonian, Latvian and Lithuanian organisations </li></ul><ul><li>Based on the lists prepared by in total 3259 invitations to participate were sent out and 739 managers answered (23% response rate) </li></ul><ul><li>Respondents were split as follows: </li></ul><ul><ul><li>375 from Estonia (31% response rate) </li></ul></ul><ul><ul><li>165 from Latvia (17% response rate) and </li></ul></ul><ul><ul><li>199 from Lithuania (18% response rate) </li></ul></ul><ul><li>The survey covered managers of both private and public organisations, the latter making up 20% of the total sample </li></ul><ul><li>The survey was conducted in the form of an online survey, from August 3rd till the 14th </li></ul>

Editor's Notes