Dr. Pendl & Dr.

Piswanger
Personal & Managementpartner

Strategy Barometer 2012

P&P

International top managers on traits of a CEO, HR strategies and expansion strategies in various markets for the next 3 years
What 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) and CEE (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.

Dr. Pendl & Dr. Piswanger

Personal & Managementpartner

Graph 1:

n=272

What makes an effective CEO Austria

results oriented 7% authenticity 9% communication skills 9%

analytical skills 6%

integrity 5%

charisma 5%

creativity 3% intellectual agility 3% change agent 3% drive, power 2% courage 2%

inspiring pionieer 1% interpersonal skills 11% decisive 12% strategic thinker 21% tolerance for risk 1%

Graph 2:

n=339

What makes an effective CEO CEE

drive, power 6% decisive 6% integrity 7%

authenticity 6%

inspiring pionieer 5%

charisma 5%

analytical skills 5% interpersonal skills 4% tolerance for risk 4% creativity 3% intellectual agility 2%

change agent 7% communication skills 7%

courage 2% strategic thinker 20%

results oriented 10%

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 (each 7%). Remarkable is tolerance for risk: Top managers are generally expected to be careful: In most CEE countries this value is between 1% and 2%. The exceptions are Hungary with 6% and the Czech Republic with 5% (Austria 1%). Massive differences in mentality can be seen at the following traits: Decisiveness is important for 12% of the 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%) and the Czech Republic (14%). Authenticity is seen important only in Hungary (13%) and Austria (9%), while this is completely irrelevant 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 for 3%. Integrity is important in Slovakia (10%) and the Czech Republic (9%), while in Hungary and Serbia, this is important only for 3%.

Dr. Pendl & Dr. Piswanger

Personal & Managementpartner

Graph 3:

n=272

HR issues of strategic importance 2012/13 Austria

establishing/ expanding performance management 7% strengthening employer branding 8% talent management 8%

improving working climate/ staff establishing/ improving performance commitment succession planning, defining career oriented salary system 6% paths in the organisation 7% 4% lean management 3% sustainability management 3% health management 3% recruiting specialists/ experts from other markets/ countries 3% gender/ diversity management 1%

personnel-, team- and organisational development 14%

supporting entrepreneurial thinking 16%

further developing leadership competence 17%

Graph 4:

n=339

HR issues of strategic importance 2012/13 CEE

establishing/ improving performance oriented salary system 9% supporting entrepreneurial thinking 10%

talent management 9%

succession planning, defining career paths in the organisation 6%

strengthening employer sustainability branding management 6% 5%

lean management 3% optimising fringe benefits 2% recruiting specialists/ experts from other markets/ countries 1% health management 1%

improving working climate/ staff commitment 10% further developing leadership competence 10% establishing/ expanding performance management 12%

gender/ diversity management 1% personnel-, team- and organisational development 15%

Developing leadership competence

For 17% of the Austrian top managers, developing leadership competence is the most important HR strategy for 2012/13. This is closely followed by supporting entrepreneurial thinking with 16% and 14% for personnel-, team- and organisational development, followed by talent management and employer branding (8% each). Both issues have gained importance compared to 2011, showing clearly that these issues are now relevant not only for large multinationals. In Eastern Europe, the focus lies also on developing people, but the focus is more on personnel-, team- and organisational development with 15%. Already 12% of the top managers in the CEE region emphasize the relevance of establishing performance management. In Serbia (16%), Hungary (15%) and Romania (14%), this is much more important than in other 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%) and also 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 compared 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 which will support this indirectly, are taken into consideration. Lagging far behind, exactly as last year, with 1-3% are strategies for health management or diversity management these seem to be currently of importance for only a few multinationals.

Dr. Pendl & Dr. Piswanger

Personal & Managementpartner

Graph 5:

n=272

Market strategy in Austria

The following graph shows the interests of Austrian companies in different regions/countries within the next 3 years.
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
at ia R om an ia Se Sl rb ov ia en /M ia on te ne So gr ut o h Am er N ic or a th H Am un ga er ic ry a/ C an ad a U kr ai ne M id dl e Ea st Bu Al lg ba ar ni ia a/ Ko so vo a ac ed /N on ia ew Ze C al as an pi d an R eg io n M Au st ria Sl ov C ze ak ch ia R ep ub lic R us si a As ia op e Eu r C ro Af ric

es te rn

invest/ start activity continue activity at current level N/A

strengthen activity reduce activity/ leave market

Au st ra lia

Movement ahead 23% of the responding companies plan investments or expansions

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

Future markets: Russia, Asia, South America

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 plans to 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 their activities or invest (these are 80% of the companies already knowing this market). Still going strong also the interest in North America and Canada: 19% plan to expand activities, and nobody is retreating.

The CEE in focus

In the CEE-countries Croatia, Romania and Slovenia, 23-25% plan to invest but 4% of all respondees are 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 new investments are taking place in the Ukraine and in Bulgaria. Some companies stated business interests in Macedonia (21%) or the Caspian region (15%) however, roughly 50% of those mentioning Macedonia will start or increase activities; similarly in the Caspian region. In both of these markets, P&P joins the companies starting activities new offices in Baku and Skopje will open in Q4/2012.

Even more expansion

Summarizing all trends in all markets where Austrian companies are present, more expansion than reduction is planned (23% on average plan investments or expansions vs less than 2% plan reductions or exits).
7

Dr. Pendl & Dr. Piswanger

Personal & Managementpartner

Impressum
Dr. Pendl & Dr. Piswanger GmbH A-1010 Wien, Bartensteingasse 5 Tel.: +43 (1) 402 76 08, Fax DW 31 E-Mail: pp@pendlpiswanger.at www.pendlpiswanger.at
Firmenbuchnummer: 100266a, Handelsgericht Wien Kammer: Wirtschaftskammer Wien / Fachorganisation Unternehmensberatung und Informationstechnologie Umsatzsteuer-Identifikationsnummer: ATU 37560509

1st edition October 2012 For detailed country information please contact Sigrid Httner (s.huettner@pendlpiswanger.at)