P&P Strategy barometer 2012

Dr. Pendl & Dr. PiswangerPersonal & Managementpartner

P&PStrategy Barometer 2012

International top managers on traits of a CEO, HR strategies and expansion strategies in various markets for the next 3 yearsWhat really matters to top managers in 2012 shows the current survey by Pendl & Piswanger,carried out between Sept. 3rd and 14th. 611 international top managers from Austria (n=272) andCEE (n=339), covering CZ, HR, HU, RO, RS, SI and SK, participated.

We would like to thank Headquarters Austria for supporting us in distributing the questionnaire.


strategic thinker

21%decisive

12%

interpersonal skills

11%

communication skills

9%

authenticity

9%

results oriented

7%

analytical skills

6%integrity

5% charisma

5%

creativity

3%

intellectual agility

3%

change agent

3%

inspiring pionieer

1%

drive, power

2%

courage

2%

tolerance for risk

1%

intellectual agility

2%

creativity

3%

courage

2%

inspiring

pionieer

5%

results oriented

10%

communication skills

7%

change agent

7%

integrity

7%

decisive

6%

drive, power

6%

authenticity

6%charisma

5%

analytical skills

5%

interpersonal skills

4%

tolerance for risk

4%

strategic thinker

20%

Graph 1: What makes an effective CEO – Austrian=272

Graph 2: What makes an effective CEO – CEEn=339

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Wanted: Strategic thinkers

The vote was clear – with around 20%, the most mentioned and most important trait of a CEO (out of 16) is „strategic thinking“. This result is the same across all countries where the survey was carried out.After this, the picture becomes regionally diversified: while a CEO in Austria has to be quite „decisive“ (12%),has to have good „interpersonal skills“ and „communication skills“ (11% and 9%) and a high degree of„authenticity“ (also 9%), the focus in CEE lies – with sometimes great differences between the countries –on „results orientation“ (10%) ahead of „communication skills“, being a „change agent“ and „integrity“ (each7%).Remarkable is „tolerance for risk“: Top managers are generally expected to be careful: In most CEEcountries this value is between 1% and 2%. The exceptions are Hungary with 6% and the Czech Republicwith 5% (Austria 1%).Massive differences in mentality can be seen at the following traits: „Decisiveness” is important for 12% ofthe CEOs in Hungary, but only for 2% in the Czech Republic or Slovakia.„Interpersonal skills“ are seen relevant only for CEOs in Austria with 11%. In Serbia, Slovakia and Slovenia,this lies below 2%.„Results orientation“ ranges far on top in Serbia (25% – most important), followed from Romania (17%) andthe Czech Republic (14%).„Authenticity“ is seen important only in Hungary (13%) and Austria (9%), while this is completelyirrelevant in Serbia or the Czech Republic.„Analytical thinking“ is for only 5% of all respondees a trait for a CEO, in Croatia and Hungary even only for3%.„Integrity“ is important in Slovakia (10%) and the Czech Republic (9%), while in Hungary and Serbia, this isimportant only for 3%.

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strengthening employer branding

8%

establishing/ expanding performance

management

7%

talent management

8%

personnel-, team- and organisational

development

14% supporting entrepreneurial thinking

16%

further developing leadership

competence

17%

improving working climate/ staff

commitment

6%

establishing/ improving performance

oriented salary system

7%

health management

3%

succession planning, defining career

paths in the organisation

4%

lean management

3%

sustainability management

3%

recruiting specialists/ experts from

other markets/ countries

3%

gender/ diversity management

1%

establishing/ improving performance

oriented salary system

9%

talent management

9%

supporting

entrepreneurial thinking

10%

improving working climate/

staff commitment

10%

establishing/ expanding

performance management

12%

further developing leadership

competence

10%

succession planning,

defining career paths

in the organisation

6%

strengthening

employer

branding

6%

sustainability

management

5%lean

management

3%

health management

1%

optimising

fringe benefits

2%

gender/ diversity management

1%personnel-, team- and organisational

development

15%

recruiting specialists/ experts from

other markets/ countries

1%

Graph 3: HR issues of strategic importance 2012/13 – Austrian=272

Graph 4: HR issues of strategic importance 2012/13 – CEEn=339

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Developing leadership competence

For 17% of the Austrian top managers, „developing leadership competence“ is the most importantHR strategy for 2012/13. This is closely followed by „supporting entrepreneurial thinking“ with 16% and 14% for „personnel-, team- andorganisational development“, followed by „talent management“ and „employer branding“ (8% each). Both is-sues have gained importance compared to 2011, showing clearly that these issues are now relevant notonly for large multinationals.In Eastern Europe, the focus lies also on developing people, but the focus is more on „personnel-, team- andorganisational development“ with 15%.Already 12% of the top managers in the CEE region emphasize the relevance of „establishing performancemanagement“. In Serbia (16%), Hungary (15%) and Romania (14%), this is much more important than inother countries. Only 7% in Austria mentioned this as an HR strategy for the coming year.

Coming in third are „further developing leadership competence“ along with „improving working climate“ and„supporting entrepreneurial thinking“ (each 10%). The latter is even more important in Austria (16%) andalso very much in the Czech Republic and Serbia (14% each). In Croatia, Hungary and Slovakia only 7%share this view. On average, however, „supporting entrepreneurial thinking“ has gained substantially com-pared to 2011.Establishing „talent management“ has greatly increased importance in the CEE region with 9% in total.Dedicated activities for improving the working climate have clearly declined – instead, other strategies whichwill support this indirectly, are taken into consideration.Lagging far behind, exactly as last year, with 1-3% are strategies for „health management“ or „diversitymanagement“ – these seem to be currently of importance for only a few multinationals.

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Austri

a

Slova

kia

Cze

ch R

epub

lic

Rus

sia

Asia

Wes

tern

Eur

ope

Cro

atia

Rom

ania

Slove

nia

Serbia/

Mon

tene

gro

South

Am

erica

Hun

gary

Nor

th A

mer

ica/

Can

ada

Ukr

aine

Middle

East

Bulga

ria

Alban

ia/ K

osov

o

Africa

Mac

edon

ia

Austra

lia/ N

ew Z

ealand

Cas

pian

Reg

ion

invest/ start activity strengthen activitycontinue activity at current level reduce activity/ leave marketN/A

Graph 5: Market strategy in Austrian=272

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The following graph shows the interests of Austrian companies in different regions/countries within the next3 years.

Movement ahead – 23% of the responding companies plan investmentsor expansions

More than 2/3 of the respondees will invest in activities in Austria or expand the existing ones – this isextremely high. And, almost nobody plans to leave. Investments are also planned in 17 other countriesor regions (out of 21).Slightly more than 50% are also active in the neighbouring countries Slovakia, the Czech Republic andin Western Europe. And 2/3 out of those (around 30-35% of the total) invest or expand their activities inthese countries; only a few plan to leave.

In Russia and Asia, also 30% of all respondees are investing or expanding – but these are almost 90%of the companies already present and apparently successful there. Additionally, nobody of them plansto leave. Therefore, Russia and Asia are future growth markets not only from Austrian point of view.The picture is similar for South America: approximately 23% of the respondees strengthen theiractivities or invest (these are 80% of the companies already knowing this market). Still going strongalso the interest in North America and Canada: 19% plan to expand activities, and nobody is retreating.

Future markets: Russia, Asia, South America

In the CEE-countries Croatia, Romania and Slovenia, 23-25% plan to invest – but 4% of all respondeesare also reducing their activity. Investments in Hungary will drop further; nonetheless, still almost 50%of the respondees are active in Hungary, with 5% cutting back their engagement. No or hardly any newinvestments are taking place in the Ukraine and in Bulgaria. Some companies stated business interestsin Macedonia (21%) or the Caspian region (15%) – however, roughly 50% of those mentioningMacedonia will start or increase activities; similarly in the Caspian region. In both of these markets, P&Pjoins the companies starting activities – new offices in Baku and Skopje will open in Q4/2012.

The CEE in focus

Summarizing all trends in all markets where Austrian companies are present, more expansion thanreduction is planned (23% on average plan investments or expansions vs less than 2% plan reductionsor exits).

Even more expansion

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Dr. Pendl & Dr. Piswanger GmbHA-1010 Wien, Bartensteingasse 5Tel.: +43 (1) 402 76 08, Fax DW 31E-Mail: [email protected]

Firmenbuchnummer: 100266a, Handelsgericht WienKammer: Wirtschaftskammer Wien / Fachorganisation Unternehmensberatung und InformationstechnologieUmsatzsteuer-Identifikationsnummer: ATU 37560509

1st edition October 2012For detailed country information please contact Sigrid Hüttner ([email protected])

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P&P Strategy barometer 2012