To read whole report by Anderson Willinger, executive search experts, follow this link: Significant management changes in 2019
There were 101 more changes on senior management level in 2019 than in the previous year.
The total number reached 652 changes.
The changes on CEO or Country Manager level increased in 44% compared to 2018.
According to findings of Anderson Willinger, executive search, the main reason for the increase in change was the appetite of smaller companies, especially in the area of services, to acquire senior directors who have strong contacts and experience.
The main fields where the changes took place last year were the fields of ICT, Consulting, Financial Services, Logistic Companies and Manufacturing.
The increase compared to 2018 was also in the spectrum of changed positions in the ranks of senior management.
Fewer companies have changed their Board.
The world of banks accepted the most experts in data and digitalization.
Real Estate has rather recruited new managers to manage its finances, FMCG has focused on attracting new people in marketing.
The world of consulting services recruited mainly senior workers for consulting work in the field of energy, artificial intelligence, Industry 4.0 and forensic consulting.
The general change that interconnects all disciplines are Transformation, Agile, and CX, which means Customer Centricity, and these roles are also likely to dominate the changes we will see this year.
The big change is that companies are no longer focusing on direct competition when recruiting their management.
According to a survey by Anderson Willinger, executive search, of all analyzed managers who changed positions in 2019, 62% were those who moved to another field.
Compared to 2017, when the so-called interdisciplinary transfers accounted for only 27%, this figure is a very large increase.
This trend can be observed especially in middle and lower management. For CEOs and Board positions, it is still at 30%.
Why are companies interested in managers outside their field?
The success of companies is no longer in their size, but in speed. Companies are more interested in customer satisfaction which means that a service or product can be delivered in the shortest time possible, in the highest quality and at an affordable price. With this goal, companies turn to agile management and create top management positions with focus on customer satisfaction.
Another reason for this change is digitalization across all segments and new roles in data management, digital or business intelligence.
The consequence is that companies or their leaders are no longer inspired by their competition but look for solutions to their problems from the best players on the market, who are often from different industry.
E-commerce and Startups
The closed community of startups and also e-commerce companies, where in the past a new team member was usually founds thanks to contacts, is also opening up. There were 4.3% of managerial changes in this segment.
Rohlík.cz, Seznam and Mall Group have undergone important changes.
Startups, but also small and medium-sized companies are recruiting CEOs with previous corporate experience, while corporate firms are now much more open to recruiting managers from startups where they expect more dynamism and ‘fresh air’.
How does the world change in the Czech Republic and Slovakia for expats in senior management positions?
Overall, the number of foreign managers working in the Czech Republic is increasing. Except from Prague, they are also located in Brno.
However, the number of foreigners in the position of CEO is constantly decreasing. Today it is 8% of all changes in senior management positions. ICT, Real Estate, FMCG and Pharmaceutical Industry are the main industries that still attract top managers from abroad.
Foreigners in the Czech Republic are increasing in expert roles or managers working for multinational HUBs of global brands. However, many of them no longer have the original expat benefits.
What can we expect in 2020?
If the trends identified by Anderson Willinger, executive search, continue, then the following facts can be expected in 2020.
Companies will be more flexible in recruiting senior managers for specific short-term projects. They will be more open to the atypical demands of employees (shorter working hours, different kind of contract, distant work) to provide the flexibility, speed and dynamism they need for their development.
On the other hand, tolerance towards managers who will have difficulty adapting to change will drop significantly. Companies will be more prompt in replacing them.
The hitherto closed worlds of startups, family businesses and corporations will begin to open even more and, as far as recruitment is concerned, inspire each other.
Increasing awareness of the fact that flexibility is not the only important moment will be a major catalyst for change. In order to achieve the expected results, companies will have to think how to better combine the flexibility of young people (mostly under 35 years) and the expertise of older ones (over 45 years).
Corporations will continue to reduce senior and middle management and with distribution of responsibilities up and down the company structure.
Anderson Willinger, executive search experts, message at the end:
An absolutely necessary condition for the success of the company transformation is the ability to transform ourselves.
Read more: Why do people work for my competition and not for me?