Practice: Leadership and Management Development in the Baltics

1. Practice:Leadership and Management Development in the Baltics

2. 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

3. Leadership style perception • Decision making (authocratic/consultative) • Teamwork/individualistic orientation • Attitude to change (early adoption/ aggressive confrontation/ scepticism) • Communication habits (formal/informal) • Openness

4. 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

5. 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

6. 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

7. 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

8. 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

9. Conclusion • There are differences • However, more similarities