Are Polish Top Managers Euro-Class?

1. EXECUTIVE SUMMARY

Introduction Stanton Chase International is one of the world‘s leading retained executive search companies with 73 offices in 46 countries, and more than 350 specialised consultants around the globe. In order to be able to provide its customers with an accurate assessment of the current mood in specific markets and countries, Stanton Chase regularly conducts extensive opinion surveys among top managers in various key countries. The aim of these surveys is the close monitoring and analysis of national and international trends and developments. One such survey was carried out in October 2012 in Poland. Almost 1,000 top executives took part in the survey. The survey was carried out in Polish and was the first such survey carried out by the Stanton Chase Warsaw office. We are pleased with the high response rate and delighted to share the results. The results closely correlate with the insights gained by Stanton Chase executive search consultants and specialists in their day to day contacts with the leading executives in Poland.

This survey consisted of 23 multiple choice questions in three different categories. Respondents were asked to give their opinions on:

the current economic situation and outlook

personal career drivers

whether top Polish managers of today are Euro class.

The respondents were also representative of the key

business industry sectors including Consumer

Products and Services, Technology, Industrial, Life

Sciences and Healthcare, Logistics and

Transportation, Natural Resources and Energy,

Financial Services, Professional Services,

Government, Education and Non Profit.

The key results The three most important findings of the survey are:

1. Cautious Economic outlook for 2013

The CEOs are cautious on the economic outlook for 2013 with almost 60% of all respondents pessimistic of the economic outlook in their specific business sector. Technology, natural resources and energy are regarded

as the industry sectors with the best perspective of growth in 2013.

2. Innovation and Leadership

Innovation, or an ability to think “out of box”, together with leadership and charisma are the competency requirements of CEOs for business today.

3. Polish Top Managers today are Euro-Class

It is generally believed that the key strengths of top

Polish managers are the delivery of results, crisis

management, restructurisation, productivity,

decisiveness and change management. On the other

hand, the key areas for improvement are international

work experience, sustainability, strategy, a more open

democratic management style and communications.

Polish top managers are comfortable in international

meetings and are regarded as propagators of change.

2. CURRENT ECONOMIC SITUATION AND

OUTLOOK

It is almost impossible to conduct any meaningful

business discussion without reference to the economic

climate. We have behaved no differently in our survey.

Positive climate in 2012

Our CEOs in Poland took a rather positive view of the

current business climate in 2012 compared to the

previous year. The vast majority, 75% of all respondents

state it was the same or better. However 35% state it

actually improved, but 25% claim it to have deteriorated.

better 35%

the same 40%

worse 25%

Assesment of the current situation in your business compared to last year

Caution for 2013

This optimism on current mood in 2012 is in contrast to

the economic outlook for 2013 which is more cautious.

Almost 60% of all respondents were pessimistic of the

economic outlook in their specific business sector. The

responses were however moderate with only 7%

showing either a very optimistic or very pessimistic

outlook.

Of specific interest is the response to which business

sectors are envisaged to have the best perspective in

2013.

A clear majority of the CEO respondents expect the

technology and the natural resources and energy

sectors to be the top performers in 2013. These

business segments are the clear leaders and are closely

followed by consumer products and services,

professional services, and healthcare and life sciences.

At the other end of the spectrum, media and

entertainment, and government, education and non-

profit sectors are perceived by the CEOs to have most

difficulty in 2013. They are followed by financial services,

industry, and logistics and transportation.

It should be noted that over half the CEO respondents

were from either the industrial or the consumer product

and service business segments. However, media and

entertainment, government, education and non-profit

organizations, and financial services amounted for only

5% of the respondents which could partially explain the

low ranking of these sectors.

3 PERSONAL CAREER DRIVERS

“Job challenge” rather than “remuneration and job

security”

Despite the on-going global crisis, the key factors for

CEO job satisfaction remain the classic personal drivers

of a job challenge, freedom to make decisions and the

possibility to achieve results. These are closely followed

by company values and the ability to progress and

develop in the organisation. The CEOs remuneration

package was ranked only in a low ninth place and

scored by only 28% of the respondents.

Most surprisingly in these volatile times is that job

security came in penultimate place and was chosen by

only 10% of the CEOs as a major factor for work

satisfaction.

very optimistic 7%

optimistic 34%

rather pessimistic

52%

very pessimistic

7%

How optmistic are you for economic and business growth in your sector during the next 12 months?

0% 10% 20% 30% 40% 50% 60%

technology

natural resources and energy

consumer products and services

professional service

health care & life sciences

logistics and transportation

industrial

financial services

government, education and non-profit

media/entertaiment

Business sectors in Poland with the best business perspective in the next 12 month

The lowest score, with only 6% of the respondents, was

for a low stress level which may be explained that today

it is regarded as a pre-requisite of such senior

managerial positions. However, the need to maintain a

healthy balance between work and private life was

identified as a major factor by over 40% of the

respondents and came in a high 6th place.

Expectation of innovation and leadership from CEOs

The CEO survey respondents were very clear on the key

competency requirements for top managers. Well over

50% of the CEOs indicated that innovation, or an ability

to think “out of box”, together with leadership and

charisma are the key competencies required of top

managers for business today.

Very high scores were also received for change

management abilities, as well as for ensuring the

effectiveness of the organisation and business

development skills.

The lowest scores from the list of 21 competencies or

skills, all scoring below 7%, were for technical skills, self-

confidence, mobility, time management, knowledge of

foreign languages and crisis management.

The Polish CEO survey respondents are aware that they

must also personally develop these skills and

competences. There is a good correlation between the

top manager key competencies and the individual CEO

personal development needs.

Of specific interest is that the Polish CEOs today feel

very comfortable with business ethics, values and

decision making skills. These are competencies ranked 0% 10% 20% 30% 40% 50% 60%

job challenge

freedom to make decisions

possibility to achieve of results

quality of work environment (values)

opportunity for personal growth anddevelopment

healthy balance between professionaland private life

good team work atmosphere

corporate culture

salary and benefits package

good relationships with superior

job security

low stress levels

Key factors to job satisfaction

0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

60,0%

Key skills of Top Managers

Essential competencies of Top Managers Personal development area

fairly high in importance for top managers. However,

they feel the personal need for more development with

self-confidence, time management, foreign languages

and with the acceptance of feedback. All these

competencies were ranked in the lower importance

range for top managers.

Personal development and work satisfaction are the

main reasons of job change

The key drivers for CEOs deciding to change companies

are also very clear. Over 50% of the respondents cited

career development and an increase in job satisfaction

as the primary reasons for potentially considering a

change of work.

There are also relatively high scores for the opportunity

to realise personal and family goals as well as an

increase in the compensation package.

Seeking a less stressful workplace and surprisingly a

fear of redundancy are indicated as not significant

factors for potentially changing jobs.

Work satisfaction

The Polish CEOs are very satisfied with their role. Over

85% of respondents are satisfied with 18% stating they

are very satisfied.

In comparison, only 12% are slightly unsatisfied with less

than 3% of CEOs stating they are unsatisfied.

4 ARE POLISH TOP MANAGERS OF TODAY

EURO-CLASS?

Openness to international work

International work collaboration is almost a pre-requisite

of doing business in Poland.

Almost all the CEOs, over 94%, have international work

exposure such as participation in international strategic

projects. Over 61% of the participants are involved in

international projects often or very frequently. Only just

under 6% of the participants have had no opportunity of

involvement in such international project work.

The CEOs are willing to participate in international

projects with almost 87% expressing eagerness to be

involved in such work. In fact, almost 30% are classified

as very keen.

0% 10% 20% 30% 40% 50% 60%

opportunity to develop career

increase of job satisfaction

realisation of personal and familygoals

higher salary and benefits package

I do not envisage any change

work “burn-out”

fear of unemployment

seeking a less stressful workenvironment

Potential reasons for changing job

very satisfied 18%

satisfied 67%

rather unsatisfied

12%

unsatisfied 3%

Satisfaction with current work situation

very often 21%

often 40%

seldom 33%

none 6%

Involvement in strategic international projects

Only a very small minority of less than 2% do not like or

get the opportunity to be involved in international

projects, whilst slightly over 8% have some reservations.

English and German languages

Not surprisingly, English is the dominant language for

international meetings with over 92% of CEOs

participating in meetings in that language. However,

almost 10% of the CEOs participate in meetings in

German, which can be easily explained as Germany is

the largest investor in Poland. More surprising is that

almost 3% of meetings are held in French.

It is interesting to note that almost 5% of the Polish CEO

international meetings are held in Polish. This figure may

seem surprising and may be explained by Polish

companies recruiting or relocating Polish nationals to

international positions.

Initiators of change

It is very interesting to analyse the role that Polish CEOs

or top managers take in international meetings. Almost

55% of the respondents state that their role is significant

and is focused on change. Whilst over 27% state their

role is supportive.

It should be noted that today, Polish CEOs do not take

the leading role in international meetings. Less than 7%

of those surveyed have taken that role.

International work experience

The CEOs surveyed have extensive international work

experience. Almost 55% of the CEOs have worked

abroad. Over 33% of the respondents have worked

abroad for more than one year. This figure is surprisingly

high and confirms the international experience of top

Polish managers.

International promotion opportunities and mobility

Almost 65% of the CEOs surveyed state that there is a

possibility of them being promoted in their international

very willing 29%

willing 58%

rather unwilling

8%

unwilling 3%

lack of opportunities/

experience 2%

Willingness to participate international meetings and projects

0% 20% 40% 60% 80% 100%

English

German

Polish

French

Language used in international meetings

0% 10% 20% 30% 40% 50% 60%

important / promoting change

supporting

leading

lack of experience

conciliatory

passive

Role in international meetings

No 45%

Yes, less then 1 year 22%

Yes, more than 1 year

33%

International work experience

structure. In fact, almost 28% state the possibility as very

likely.

15% of respondents do not see an opportunity of

international promotion, whilst the opportunity does not

apply to 20% of the CEOs.

The international promotion data is very impressive and

confirms the quality of the Polish CEOs and top

managers. This is further confirmed by the answers to

the question on the assessment of the CEOs chance to

replace their current boss in international structures

outside of Poland.

Almost 54% of the Polish CEOs believe there is a

possibility of them replacing their current international

manager. 18% of the respondents rated their chance as

high.

The vast majority of the CEOs, over 90% of

respondents, are mobile to international relocation

should they be promoted. Over 38% were fully mobile,

52% have some reservations, whilst only 10% state that

they are not open international relocation.

CEO key management tools to achieve current

business objectives

There are many management processes and tools, and

the CEOs selected the key tools which they currently

use to achieve their business goals.

The key management tools currently in use are project

and results focused. For over 50% of the CEOs the key

management tool is Project Management, closely

followed by Management by Objectives (MBO). Over

45% of the CEOs are implementing change

management programmes.

Also, high on the list in 4th and 5

th position respectively

are business intelligence and benchmarking.

Surprisingly high on the list, in 6th place is coaching and

mentoring, and ERP systems come in 7th place.

Despite the on-going economic instability and the

additional focus on costs and cash management, it is

interesting to note that radical financial optimisation

programmes, such as cost reduction and improvement in

working capital and cash flow, were only identified as

key programmes by under 32% of the CEOs and ranked

in only 10th place. This may be explained by the fact that

due to the economic situation these programmes have

been on-going for some time and are not regarded as

key strategic programmes, but rather as business as

usual management tools.

Large 28%

Limited 37%

None 15%

Not applicable

20%

Possibility of international promotion in current company

Large 18%

Limited 36%

None 19%

Not applicable

27%

Possibility of taking current managers international job outside of Poland

Yes 38%

Limited 52%

No 10%

Mobility to international relocation in the case of promotion

Effectiveness of Polish to non-Polish top managers

The Polish CEOs attempted to classify the differences in

management behaviour between Polish and non-Polish

managers. Although this assessment is rather

subjective, the results are certainly interesting.

The key strengths of top Polish managers are regarded

as the delivery of results, crisis management,

restructurisation, organisational efficiency, productivity,

decisiveness and change management.

Non Polish managers strengths are regarded as

international work experience, sustainability and the

0% 10% 20% 30% 40% 50% 60% 70%

Project management

MBO (Management by Objectives)

Change management

Business intelligence

Benchmarking

Coaching /mentoring

ERP

Performance Management Systems

Internal communications / intranet

Radical finance management (cash flow / costs)

CRM

SWOT analyses

Lean

six sigma

Key tools to achieve business strategic goals

0% 20% 40% 60% 80% 100%

International experience

Sustainability

Strategic planning

Open / democratic management style

Corporate social responsibility

Communications

Work organisation

Team work

Leadership

Motivation of employees

Change management

Decisiveness

Productivity

Organisational efficiency

Restructuring

Crisis management

Focus on goals

Polish Managers

Non-PolishManagers

environment, strategic planning, an open and democratic

management style, corporate social responsibility and

communications.

No difference is perceived on leadership skills,

motivation, team work and organisation of work.

Top Manager remuneration packages

The standard remuneration package of the Polish CEO

and top managers consists of an annual salary, annual

bonus based on predefined goals, a company car and a

medical health plan.

Just over 52% of the top managers have a life insurance

plan as part of their remuneration package.

Company shares and other mechanisms of company

profit sharing are still not common in Poland, but are

held by approximately 25% of the top managers and are

clearly becoming more popular. Monthly or quarterly

bonuses are generally not applied to managers at this

level.

Polish CEOs and top managers are able to perform at

top class level and are being promoted to the

international structures of multinational companies,

however their compensation packages still lag behind

international benchmarks.

Just over 44% of the respondents believe their

remuneration package is comparable to international

colleagues. Only 3% state they have a better package,

however, almost 45% of the CEOs state their

remuneration package is lower than international

colleagues.

Polish Top Managers are Euro-Class

80% of the Polish CEOs and top managers believe they

are Euro class in managerial performance. A very high

proportion of 32% were very decisive on this matter.

Just under 20% of the managers believe that Polish

managers are not yet at this level. Interestingly, there

were virtually no managers who did not have a clear

opinion on this matter.

0% 20% 40% 60% 80% 100%

Basis remuneration

Company car

Medical health plan

Annual bonus

Bonus based upon MBO

Life insurance

Share options

Pension plan

Profit sharing scheme

Quarterly bonus

Monthly bonus

Elements of compensation package

Better 3%

Comparable 44%

Worse 45%

No opinion 8%

Competiveness of Polish remuneration package to international peers

Definitely yes 32%

Yes 48%

Not yet 19%

no 1%

Do you personally feel a Euro–Class manager?

5 DEMOGRAPHICS OF RESPONDENTS

The CEOs and top managers who participated in this

survey work all for companies in Poland, are Polish

speaking and are key decision makers.

Although the respondents work in all sectors of business

in Poland the majority of over 51% are from the industry

and 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 senior

managers who responded are over 35 years of age, but

surprisingly over 50% of the respondents are in the age

group 35-45 thus are relatively young.

Owner / significant

shareholder 10% Chairman /

CEO / Managing Director

31% Board

member / or other 59%

Position

0% 10% 20% 30% 40%

industrial

consumer products and services

technology

natural resources and energy

health care & life sciences

logistics and transportation

professional service

financial services

media/entertaiment

government, education and non-profit

Sector

Sector

Private 52%

State 9%

Stock listed 39%

Legal entity

Polish 26%

Foreign 63%

Mixed 12%

Capital

<35 2%

35-45 51%

46-55 36%

>55 11%

Age

Acknowledgements

The Warsaw office of Stanton Chase International would

like to thank all the respondents for their time and effort

in completing our CEO Survey 2012.

We are more than pleased that you found the survey

interesting and hope that you find this report equally

stimulating.

We are very proud that 80% of the respondent wish to

further follow up points raised in this survey. It will be our

great pleasure to meet you. In the meanwhile, please do

not hesitate to get in touch should you wish to discuss

any topic.

6 STANTON CHASE INTERNATIONAL

Established in 1990, Stanton Chase International is one

of the world’s leading global executive search

companies with 73 offices in 46 countries.

Stanton Chase International has a strong market

presence in the emerging markets. In Poland and in

Central Europe, it is one of the five leading companies in

its field.

Stanton Chase Warsaw has a successful track record of

over 19 years in the executive search business and in

delivering executive search services at the top, senior

and professional levels in various business sectors. We

offer Poland’s highest-qualified team of executive search

consultants and researchers, with 800 successfully

completed projects. Our hands-on approach and deep

understanding of our Client’s needs and culture,

combined with the superior quality of services routinely

translates into a high volume of repeat business.

We have a reputation as the most prominent executive

search team on the Polish market which is largely due to

the passion, enthusiasm and true love we have for our

job. We have a profound expertise of the Polish and

CEE markets which has allowed us to deliver a variety of

projects covering a wide geographical span within CEE.

All company partners have a clearly defined Practice

Group focus and extensive local and multinational

experience and expertise. They serve international

clients as well as strong local and national players.

Services:

Executive Search

Board Services

Executive Assessment Services

Management Appraisals

International Practice Group Specialisations:

Consumer Products and Services

Financial Services

Government, Education and Non-profit

Industrial

Life Sciences and Healthcare

Logistics and Transportation

Natural Resources and Energy

Professional Services

Technology

Yes 80%

No 20%

Interest in a future follow up meeting to discuss this survey

This report has been designed and developed jointly by Beata Sokołowska-Pęk, Managing Partner and Jan Duniec,

Partner

Beata Sokołowska-Pęk, Managing Partner, Jan Duniec, Partner

“Together we create a unique team offering of added value services, innovation and

professional solutions to our business partners”

Jan joined Stanton Chase with a track

record of international work

experience in the UK, France and

Poland. He has 17 year experience of

plant and business management in

executive positions and 29 years of

involvement in industry.

Jan has dual Polish and British

nationalities and lived in the UK until

1991, and since then has been

predominantly based in Poland.

Industrial work experience includes

the sectors of telecoms, consumer

electronics, industrial processes,

contract manufacturing, the steel

industry and outsourced services. He

has actively led successful programs

of business development, key account

management, lean manufacturing,

change management, cost reduction

and business turnarounds.

Jan graduated from the University of

Manchester with a B.Sc. (Hon) in

Physics. He is fluent in Polish and

English.

The executive search consultant with

a track record of over 19 years.

Launching her executive search

career as a researcher in early 1994,

Beata was later promoted to

consultant before being appointed

Partner and Managing Director of the

firm in 2000.

Having actively participated in over

800 executive search projects

throughout her career, Beata is well

acquainted in the Industrial, Logistics,

Healthcare, Financial Services as well

as Consumer Products and Services.

She has successfully identified

candidates for board member, general

manager, manufacturing, sales,

marketing, finance, HR, IT,

purchasing, logistics and branch

manager positions.

Fluent in Polish, English and Russian,

Beata graduated from the University

of Warsaw with a Masters of Arts in

Linguistics. She has also studied in

the United States at Northwestern

University in Chicago, Illinois, and in

the UK at Central London Polytechnic.