Stanton chase report warsaw 2013 04-30


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Stanton chase report warsaw 2013 04-30

  1. 1. Are Polish Top Managers Euro-Class?1. EXECUTIVE SUMMARYIntroductionStanton Chase International is one of the world‘s leadingretained executive search companies with 73 offices in46 countries, and more than 350 specialised consultantsaround the globe. In order to be able to provide itscustomers with an accurate assessment of the currentmood in specific markets and countries, Stanton Chaseregularly conducts extensive opinion surveys among topmanagers in various key countries. The aim of thesesurveys is the close monitoring and analysis of nationaland international trends and developments.One such survey was carried out in October 2012 inPoland. Almost 1,000 top executives took part in thesurvey. The survey was carried out in Polish and wasthe first such survey carried out by the Stanton ChaseWarsaw office. We are pleased with the high responserate and delighted to share the results.The results closely correlate with the insights gained byStanton Chase executive search consultants andspecialists in their day to day contacts with the leadingexecutives in Poland.This survey consisted of 23 multiple choice questions inthree different categories. Respondents were asked togive their opinions on: the current economic situation and outlook personal career drivers whether top Polish managers of today are Euroclass.The respondents were also representative of the keybusiness industry sectors including ConsumerProducts and Services, Technology, Industrial, LifeSciences and Healthcare, Logistics andTransportation, Natural Resources and Energy,Financial Services, Professional Services,Government, Education and Non Profit.The key resultsThe three most important findings of the survey are:1. Cautious Economic outlook for 2013The CEOs are cautious on the economic outlook for2013 with almost 60% of all respondents pessimistic ofthe economic outlook in their specific business sector.Technology, natural resources and energy are regardedas the industry sectors with the best perspective ofgrowth in 2013.2. Innovation and LeadershipInnovation, or an ability to think “out of box”, togetherwith leadership and charisma are the competencyrequirements of CEOs for business today.3. Polish Top Managers today are Euro-ClassIt is generally believed that the key strengths of topPolish managers are the delivery of results, crisismanagement, restructurisation, productivity,decisiveness and change management. On the otherhand, the key areas for improvement are internationalwork experience, sustainability, strategy, a more opendemocratic management style and communications.Polish top managers are comfortable in internationalmeetings and are regarded as propagators of change.2. CURRENT ECONOMIC SITUATION ANDOUTLOOKIt is almost impossible to conduct any meaningfulbusiness discussion without reference to the economicclimate. We have behaved no differently in our survey.Positive climate in 2012Our CEOs in Poland took a rather positive view of thecurrent business climate in 2012 compared to theprevious year. The vast majority, 75% of all respondentsstate it was the same or better. However 35% state itactually improved, but 25% claim it to have deteriorated.better35%the same40%worse25%Assesment of the current situation in yourbusiness compared to last year
  2. 2. Caution for 2013This optimism on current mood in 2012 is in contrast tothe economic outlook for 2013 which is more cautious.Almost 60% of all respondents were pessimistic of theeconomic outlook in their specific business sector. Theresponses were however moderate with only 7%showing either a very optimistic or very pessimisticoutlook.Of specific interest is the response to which businesssectors are envisaged to have the best perspective in2013.A clear majority of the CEO respondents expect thetechnology and the natural resources and energysectors to be the top performers in 2013. Thesebusiness segments are the clear leaders and are closelyfollowed by consumer products and services,professional services, and healthcare and life sciences.At the other end of the spectrum, media andentertainment, and government, education and non-profit sectors are perceived by the CEOs to have mostdifficulty in 2013. They are followed by financial services,industry, and logistics and transportation.It should be noted that over half the CEO respondentswere from either the industrial or the consumer productand service business segments. However, media andentertainment, government, education and non-profitorganizations, and financial services amounted for only5% of the respondents which could partially explain thelow ranking of these sectors.3 PERSONAL CAREER DRIVERS“Job challenge” rather than “remuneration and jobsecurity”Despite the on-going global crisis, the key factors forCEO job satisfaction remain the classic personal driversof a job challenge, freedom to make decisions and thepossibility to achieve results. These are closely followedby company values and the ability to progress anddevelop in the organisation. The CEOs remunerationpackage was ranked only in a low ninth place andscored by only 28% of the respondents.Most surprisingly in these volatile times is that jobsecurity came in penultimate place and was chosen byonly 10% of the CEOs as a major factor for worksatisfaction.very optimistic7%optimistic34%ratherpessimistic52%verypessimistic7%How optmistic are you for economic and businessgrowth in your sector during the next 12 months?0% 10% 20% 30% 40% 50% 60%technologynatural resources and energyconsumer products and servicesprofessional servicehealth care & life scienceslogistics and transportationindustrialfinancial servicesgovernment, education and non-profitmedia/entertaimentBusiness sectors in Poland with the best business perspective in the next 12 month
  3. 3. The lowest score, with only 6% of the respondents, wasfor a low stress level which may be explained that todayit is regarded as a pre-requisite of such seniormanagerial positions. However, the need to maintain ahealthy balance between work and private life wasidentified as a major factor by over 40% of therespondents and came in a high 6th place.Expectation of innovation and leadership from CEOsThe CEO survey respondents were very clear on the keycompetency requirements for top managers. Well over50% of the CEOs indicated that innovation, or an abilityto think “out of box”, together with leadership andcharisma are the key competencies required of topmanagers for business today.Very high scores were also received for changemanagement abilities, as well as for ensuring theeffectiveness of the organisation and businessdevelopment skills.The lowest scores from the list of 21 competencies orskills, all scoring below 7%, were for technical skills, self-confidence, mobility, time management, knowledge offoreign languages and crisis management.The Polish CEO survey respondents are aware that theymust also personally develop these skills andcompetences. There is a good correlation between thetop manager key competencies and the individual CEOpersonal development needs.Of specific interest is that the Polish CEOs today feelvery comfortable with business ethics, values anddecision making skills. These are competencies ranked0% 10% 20% 30% 40% 50% 60%job challengefreedom to make decisionspossibility to achieve of resultsquality of work environment (values)opportunity for personal growth anddevelopmenthealthy balance between professionaland private lifegood team work atmospherecorporate culturesalary and benefits packagegood relationships with superiorjob securitylow stress levelsKey factors to job satisfaction0,0%10,0%20,0%30,0%40,0%50,0%60,0%Key skills of Top ManagersEssential competencies of Top Managers Personal development area
  4. 4. fairly high in importance for top managers. However,they feel the personal need for more development withself-confidence, time management, foreign languagesand with the acceptance of feedback. All thesecompetencies were ranked in the lower importancerange for top managers.Personal development and work satisfaction are themain reasons of job changeThe key drivers for CEOs deciding to change companiesare also very clear. Over 50% of the respondents citedcareer development and an increase in job satisfactionas the primary reasons for potentially considering achange of work.There are also relatively high scores for the opportunityto realise personal and family goals as well as anincrease in the compensation package.Seeking a less stressful workplace and surprisingly afear of redundancy are indicated as not significantfactors for potentially changing jobs.Work satisfactionThe Polish CEOs are very satisfied with their role. Over85% of respondents are satisfied with 18% stating theyare very satisfied.In comparison, only 12% are slightly unsatisfied with lessthan 3% of CEOs stating they are unsatisfied.4 ARE POLISH TOP MANAGERS OF TODAYEURO-CLASS?Openness to international workInternational work collaboration is almost a pre-requisiteof doing business in Poland.Almost all the CEOs, over 94%, have international workexposure such as participation in international strategicprojects. Over 61% of the participants are involved ininternational projects often or very frequently. Only justunder 6% of the participants have had no opportunity ofinvolvement in such international project work.The CEOs are willing to participate in internationalprojects with almost 87% expressing eagerness to beinvolved in such work. In fact, almost 30% are classifiedas very keen.0% 10% 20% 30% 40% 50% 60%opportunity to develop careerincrease of job satisfactionrealisation of personal and familygoalshigher salary and benefits packageI do not envisage any changework “burn-out”fear of unemploymentseeking a less stressful workenvironmentPotential reasons for changing jobvery satisfied18%satisfied67%ratherunsatisfied12%unsatisfied3%Satisfaction with current work situationvery often21%often40%seldom33%none6%Involvement in strategic internationalprojects
  5. 5. Only a very small minority of less than 2% do not like orget the opportunity to be involved in internationalprojects, whilst slightly over 8% have some reservations.English and German languagesNot surprisingly, English is the dominant language forinternational meetings with over 92% of CEOsparticipating in meetings in that language. However,almost 10% of the CEOs participate in meetings inGerman, which can be easily explained as Germany isthe largest investor in Poland. More surprising is thatalmost 3% of meetings are held in French.It is interesting to note that almost 5% of the Polish CEOinternational meetings are held in Polish. This figure mayseem surprising and may be explained by Polishcompanies recruiting or relocating Polish nationals tointernational positions.Initiators of changeIt is very interesting to analyse the role that Polish CEOsor top managers take in international meetings. Almost55% of the respondents state that their role is significantand is focused on change. Whilst over 27% state theirrole is supportive.It should be noted that today, Polish CEOs do not takethe leading role in international meetings. Less than 7%of those surveyed have taken that role.International work experienceThe CEOs surveyed have extensive international workexperience. Almost 55% of the CEOs have workedabroad. Over 33% of the respondents have workedabroad for more than one year. This figure is surprisinglyhigh and confirms the international experience of topPolish managers.International promotion opportunities and mobilityAlmost 65% of the CEOs surveyed state that there is apossibility of them being promoted in their internationalvery willing29%willing58%ratherunwilling8%unwilling3%lack ofopportunities/experience2%Willingness to participate internationalmeetings and projects0% 20% 40% 60% 80% 100%EnglishGermanPolishFrenchLanguage used in internationalmeetings0% 10% 20% 30% 40% 50% 60%important / promoting changesupportingleadinglack of experienceconciliatorypassiveRole in international meetingsNo45%Yes, less then1 year22%Yes, morethan 1 year33%International work experience
  6. 6. structure. In fact, almost 28% state the possibility as verylikely.15% of respondents do not see an opportunity ofinternational promotion, whilst the opportunity does notapply to 20% of the CEOs.The international promotion data is very impressive andconfirms the quality of the Polish CEOs and topmanagers. This is further confirmed by the answers tothe question on the assessment of the CEOs chance toreplace their current boss in international structuresoutside of Poland.Almost 54% of the Polish CEOs believe there is apossibility of them replacing their current internationalmanager. 18% of the respondents rated their chance ashigh.The vast majority of the CEOs, over 90% ofrespondents, are mobile to international relocationshould they be promoted. Over 38% were fully mobile,52% have some reservations, whilst only 10% state thatthey are not open international relocation.CEO key management tools to achieve currentbusiness objectivesThere are many management processes and tools, andthe CEOs selected the key tools which they currentlyuse to achieve their business goals.The key management tools currently in use are projectand results focused. For over 50% of the CEOs the keymanagement tool is Project Management, closelyfollowed by Management by Objectives (MBO). Over45% of the CEOs are implementing changemanagement programmes.Also, high on the list in 4thand 5thposition respectivelyare business intelligence and benchmarking.Surprisingly high on the list, in 6thplace is coaching andmentoring, and ERP systems come in 7thplace.Despite the on-going economic instability and theadditional focus on costs and cash management, it isinteresting to note that radical financial optimisationprogrammes, such as cost reduction and improvement inworking capital and cash flow, were only identified askey programmes by under 32% of the CEOs and rankedin only 10thplace. This may be explained by the fact thatdue to the economic situation these programmes havebeen on-going for some time and are not regarded askey strategic programmes, but rather as business asusual management tools.Large28%Limited37%None15%Notapplicable20%Possibility of international promotion incurrent companyLarge18%Limited36%None19%Notapplicable27%Possibility of taking current managersinternational job outside of PolandYes38%Limited52%No10%Mobility to international relocation inthe case of promotion
  7. 7. Effectiveness of Polish to non-Polish top managersThe Polish CEOs attempted to classify the differences inmanagement behaviour between Polish and non-Polishmanagers. Although this assessment is rathersubjective, the results are certainly interesting.The key strengths of top Polish managers are regardedas the delivery of results, crisis management,restructurisation, organisational efficiency, productivity,decisiveness and change management.Non Polish managers strengths are regarded asinternational work experience, sustainability and the0% 10% 20% 30% 40% 50% 60% 70%Project managementMBO (Management by Objectives)Change managementBusiness intelligenceBenchmarkingCoaching /mentoringERPPerformance Management SystemsInternal communications / intranetRadical finance management (cash flow / costs)CRMSWOT analysesLeansix sigmaKey tools to achieve business strategic goals0% 20% 40% 60% 80% 100%International experienceSustainabilityStrategic planningOpen / democratic management styleCorporate social responsibilityCommunicationsWork organisationTeam workLeadershipMotivation of employeesChange managementDecisivenessProductivityOrganisational efficiencyRestructuringCrisis managementFocus on goalsPolish ManagersNon-PolishManagers
  8. 8. environment, strategic planning, an open and democraticmanagement style, corporate social responsibility andcommunications.No difference is perceived on leadership skills,motivation, team work and organisation of work.Top Manager remuneration packagesThe standard remuneration package of the Polish CEOand top managers consists of an annual salary, annualbonus based on predefined goals, a company car and amedical health plan.Just over 52% of the top managers have a life insuranceplan as part of their remuneration package.Company shares and other mechanisms of companyprofit sharing are still not common in Poland, but areheld by approximately 25% of the top managers and areclearly becoming more popular. Monthly or quarterlybonuses are generally not applied to managers at thislevel.Polish CEOs and top managers are able to perform attop class level and are being promoted to theinternational structures of multinational companies,however their compensation packages still lag behindinternational benchmarks.Just over 44% of the respondents believe theirremuneration package is comparable to internationalcolleagues. Only 3% state they have a better package,however, almost 45% of the CEOs state theirremuneration package is lower than internationalcolleagues.Polish Top Managers are Euro-Class80% of the Polish CEOs and top managers believe theyare Euro class in managerial performance. A very highproportion of 32% were very decisive on this matter.Just under 20% of the managers believe that Polishmanagers are not yet at this level. Interestingly, therewere virtually no managers who did not have a clearopinion on this matter.0% 20% 40% 60% 80% 100%Basis remunerationCompany carMedical health planAnnual bonusBonus based upon MBOLife insuranceShare optionsPension planProfit sharing schemeQuarterly bonusMonthly bonusElements of compensation packageBetter3%Comparable44%Worse45%No opinion8%Competiveness of Polish remunerationpackage to international peersDefinitely yes32%Yes48%Not yet19%no1%Do you personally feel a Euro–Classmanager?
  9. 9. 5 DEMOGRAPHICS OF RESPONDENTSThe CEOs and top managers who participated in thissurvey work all for companies in Poland, are Polishspeaking and are key decision makers.Although the respondents work in all sectors of businessin Poland the majority of over 51% are from the industryand the consumer product and service sectors.The legal entity of the companies is a mix of private,stock listed as well as Polish state owned companies.Whereas, the capital ownership is predominantly foreign,with only just over 25% of Polish company respondents.Not surprisingly, almost all the CEOs and seniormanagers who responded are over 35 years of age, butsurprisingly over 50% of the respondents are in the agegroup 35-45 thus are relatively young.Owner /significantshareholder10% Chairman /CEO /ManagingDirector31%Boardmember / orother59%Position0% 10% 20% 30% 40%industrialconsumer products and servicestechnologynatural resources and energyhealth care & life scienceslogistics and transportationprofessional servicefinancial servicesmedia/entertaimentgovernment, education and non-profitSectorSectorPrivate52%State9%Stock listed39%Legal entityPolish26%Foreign63%Mixed12%Capital<352%35-4551%46-5536%>5511%Age
  10. 10. AcknowledgementsThe Warsaw office of Stanton Chase International wouldlike to thank all the respondents for their time and effortin completing our CEO Survey 2012.We are more than pleased that you found the surveyinteresting and hope that you find this report equallystimulating.We are very proud that 80% of the respondent wish tofurther follow up points raised in this survey. It will be ourgreat pleasure to meet you. In the meanwhile, please donot hesitate to get in touch should you wish to discussany topic.6 STANTON CHASE INTERNATIONALEstablished in 1990, Stanton Chase International is oneof the world’s leading global executive searchcompanies with 73 offices in 46 countries.Stanton Chase International has a strong marketpresence in the emerging markets. In Poland and inCentral Europe, it is one of the five leading companies inits field.Stanton Chase Warsaw has a successful track record ofover 19 years in the executive search business and indelivering executive search services at the top, seniorand professional levels in various business sectors. Weoffer Poland’s highest-qualified team of executive searchconsultants and researchers, with 800 successfullycompleted projects. Our hands-on approach and deepunderstanding of our Client’s needs and culture,combined with the superior quality of services routinelytranslates into a high volume of repeat business.We have a reputation as the most prominent executivesearch team on the Polish market which is largely due tothe passion, enthusiasm and true love we have for ourjob. We have a profound expertise of the Polish andCEE markets which has allowed us to deliver a variety ofprojects covering a wide geographical span within CEE.All company partners have a clearly defined PracticeGroup focus and extensive local and multinationalexperience and expertise. They serve internationalclients as well as strong local and national players.Services:Executive SearchBoard ServicesExecutive Assessment ServicesManagement AppraisalsInternational Practice Group Specialisations:Consumer Products and ServicesFinancial ServicesGovernment, Education and Non-profitIndustrialLife Sciences and HealthcareLogistics and TransportationNatural Resources and EnergyProfessional ServicesTechnologyYes80%No20%Interest in a future follow up meeting todiscuss this survey
  11. 11. This report has been designed and developed jointly by Beata Sokołowska-Pęk, Managing Partner and Jan Duniec,PartnerBeata Sokołowska-Pęk, Managing Partner, Jan Duniec, Partner“Together we create a unique team offering of added value services, innovation andprofessional solutions to our business partners”Jan joined Stanton Chase with a trackrecord of international workexperience in the UK, France andPoland. He has 17 year experience ofplant and business management inexecutive positions and 29 years ofinvolvement in industry.Jan has dual Polish and Britishnationalities and lived in the UK until1991, and since then has beenpredominantly based in Poland.Industrial work experience includesthe sectors of telecoms, consumerelectronics, industrial processes,contract manufacturing, the steelindustry and outsourced services. Hehas actively led successful programsof business development, key accountmanagement, lean manufacturing,change management, cost reductionand business turnarounds.Jan graduated from the University ofManchester with a B.Sc. (Hon) inPhysics. He is fluent in Polish andEnglish.The executive search consultant witha track record of over 19 years.Launching her executive searchcareer as a researcher in early 1994,Beata was later promoted toconsultant before being appointedPartner and Managing Director of thefirm in 2000.Having actively participated in over800 executive search projectsthroughout her career, Beata is wellacquainted in the Industrial, Logistics,Healthcare, Financial Services as wellas Consumer Products and Services.She has successfully identifiedcandidates for board member, generalmanager, manufacturing, sales,marketing, finance, HR, IT,purchasing, logistics and branchmanager positions.Fluent in Polish, English and Russian,Beata graduated from the Universityof Warsaw with a Masters of Arts inLinguistics. She has also studied inthe United States at NorthwesternUniversity in Chicago, Illinois, and inthe UK at Central London Polytechnic.