Download Personalitöö Rahvuvahelises keskkonnas

Practice:
Leadership and Management
Development in the Baltics
Why leadership issue is
important?
• Whenever expanding or planning a change – the
leader issue is of key importance to all companies
operating crossboarder
• Failures to run subsidiaries abroad
– 20% inadequate financing
– 80% failure to reach and attract leaders
• Lessons from expansion x-Baltic
– Involve and adjust to new leaders
– communicate vision
Leadership style perception
• Decision making
(authocratic/consultative)
• Teamwork/individualistic orientation
• Attitude to change (early adoption/
aggressive confrontation/ scepticism)
• Communication habits
(formal/informal)
• Openness
Availability of leaders
• Lithuania
• Adequate supply for SME
• For sizeable enterprizes – lack of managerially competent
leaders in specialized fields (e.g. IT, etc)
• Latvia
• For SME – turnover of good leaders
• For sizeable enterprizes the issue is at the mid-level
management
• Estonia
• Adequate supply for SME
• Lack of leaders for sizeabale enterprizes
Source of leaders
• Lithuania
• Internal development (change averseness, loyalty to
organisation)
• Multinationals is a source for other multinationals mostly
• Latvia
• Internal development
• Headhunting among companies (average stay rather short)
• Other companies (loyalty to profession, not organisation)
• Estonia
• Multinationals rotation
• Sizeable state institutions & businesses
What Leaders Value
• Lithuania
• Stability and long term commitment
• New challenges and variety
• Proximity to political elite (large institutions and companies)
• Latvia
• Varying: e.g. Stability for state institution leaders, however
challenges, money, etc. in the private sector
• Personal development and achievement
• Status and power
• Estonia
• The leaders expectation is first of all one’s own growth
• Reasonable and trustworthy “stakeholders environment”
• Technocratic/market rather than organisational goals
prevail
MD Process to grow leaders
• Lithuania
• Integrated MD process is very rare in local companies
• Interest in MD is growing
• Succession planning quite rare so far, individual initiative
• Latvia
• Quite a few companies (mostly international) have an
advanced MD process
• Interest in MD is also significant and many companies started
implementation efforts
• Estonia
• 3-5 local companies have the integrated MD process
• MD Philosophy adopted in 10% of organisations
• Few Leaders are coaching successors by personal initiative
Remuneration issues
• Lithuania
• The opportunity to build own image overweighs money
• In state companies amounts limited by governmental level
• Latvia
• Highest remuneration in absolute terms in the Baltics
• Large regional differences
• Different types of remuneration including stock options, etc.
• Estonia
• Salary and annual bonus
• Almost non-existent 2+ years related option and bonus
schemes
• The opportunity to build own image overweights money
Conclusion
• There are differences
• However, more similarities