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