Heidrick & Struggles: Poland's "Borderless" Leaders

In the 25 years since Soviet communism collapsed, Poland has transformed itself from a stagnant planned economy to a dynamic industrial state. The country is now the sixth-largest economy in the European Union and the fastest growing. The economic renaissance has created a unique environment for business leaders, nurturing a generation of local executives seasoned by economic turmoil and uncertainty. And for some companies operating there, Poland has served as a sort of emerging-market proving ground for leaders coming from outside the country.

A brief look at this dynamic offers food for thought for companies everywhere interested in finding—and nurturing—leaders comfortable operating in today’s fast-paced and globally interconnected world.

RESURGENCE AND GROWTH

The Polish economy has diversified considerably since the days of state-run enterprise. The private sector now contributes 76% of gross domestic product (GDP). Medium-sized companies that were once small businesses now form the backbone of the economy. This diversity has brought a measure of resilience to global market turmoil.

Indeed, growth has remained strong. Between 2006 and 2013, Poland’s GDP grew, on average, 3.9% annually and exports increased by 6.3%, and the European Commission predicts that the country’s GDP will grow 3.5% annually through 2017, with exports keeping pace at an average increase of 5.8% a year.

Stronger ties with foreign businesses also encourage growth. Poland joined the European Union as a full member in 2004, and its private enterprises have developed deep relationships with German, Dutch, French, British, and US partners. Through these connections, European and US companies have recognized the resourcefulness of Polish managers who have endured and prospered through tough times.

LEADERS WITHOUT BORDERS

Many of these top managers can now be described as “borderless” leaders. Free movement of labor within the unified market benefits those who spent their early careers gaining experience in local Polish companies and then made career moves to bigger enterprises in other countries. Roughly 2.1 million Poles are living outside their native country, according to Poland’s Central Statistical Office; most Polish expatriates live elsewhere within Europe. The British Polish Chamber of Commerce recently sponsored an event in Warsaw organized around the theme that more and more Polish executives are finding senior positions abroad, with regional and global responsibilities.

In Heidrick & Struggles conversations with companies who have hired Polish executives, many cite the candidates’ in-country work experience as an advantage elsewhere (in regional or global headquarters, for example) because of the combination of generally having a results-oriented leadership style along with excellent language skills. In addition to English, many Poles speak languages such as German, Russian, French, Italian, or Spanish.

A case in point is Darek Lenart, now senior vice president of human resources for MasterCard’s Worldwide Finance group based in New York. Early in his career, Lenart worked in human resources for Pliva, a former state-owned pharmaceutical company. In 2004 he moved over to PepsiCo’s local headquarters where he took on increasing responsibilities in human resources, first in Poland and then elsewhere in Central Europe. Six years later he landed the job of human-resources director for finance, IT, and corporate functions in Europe and then later human-resources director for operations in Western Europe, which meant relocation to PepsiCo’s European headquarters in Geneva. In 2013, MasterCard recruited him for a full global role at their office in New York.

THE GROWING NEED FOR EXPATRIATE MANAGERS

In the early years of its economic surge, Poland’s market was seldom seen as a career-making opportunity for up-and-coming international executives whose companies had established operations in the country. Similarly, relatively few domestic Polish companies were much interested in recruiting international talent for their leadership ranks. This is changing as global companies seek to capture their share of domestic growth opportunities and as local companies (interested in the same) have realized that the Polish marketplace has, in some cases, outpaced the availability of local talent. In Kraków or Wrocław, business-processing-outsourcing services are currently on the rise to address shortages in functional expertise.

Both factors are bringing in more professionals from outside the country with a broad range of international experiences.

Read the full report by Heidrick & Struggles here.