Why is high demand for Chief Product Officer in Europe showing no signs of slowing down?
Gone are the days when product management was a siloed discipline, tucked neatly under the wings of the Chief Marketing Officer. Let’s find out why the demand for product leaders in Europe is on the rise and unlikely to decrease anytime soon. Product leaders are becoming the new architects of the digital era. Over one-third of Fortune 100 Companies have appointed a Chief Product Officer, which represents a 41% growth rate over the past three years. It is obvious that in today’s fast-paced business environment, companies in Europe are relying on digital technologies to innovate and stay competitive. As a result, leaders who understand how to leverage technology for product development and enhancement are becoming the main trend. But what are the key attributes that drive companies when seeking a Chief Product Officer? 1. Cross-Functional Chief Product Officer Leadership Product leaders frequently collaborate across diverse departments, incorporating insights from teams such as marketing, sales, or engineering. This cross-functional leadership is one of the reasons why board members want to have them by their table. Especially during the launch of new products, the guidance of a skilled Chief Product Officer becomes invaluable as their leadership approach can represent a catalyst for elevating innovation within your company. It’s not surprising that the demand for such leaders in Europe constantly rises, especially in the tech field. Learn more about the latest trends in the labor market. Check out the following publications: 2. Chief Product Officer with a customer-centric approach If it’s not focused on your customers, don’t do it. The mantra is followed by the Chief Product Officer. Hence, the experts continually monitor customer requirements and translate them into product features and enhancements. With the support of a Chief Product Officer, your company consistently operates with up-to-date data, enabling informed decision-making. As companies continue to seek individuals capable of effectively explaining data and guiding the company in the right direction, the demand for these leaders is likely to increase. 3. Agility on top Once product leaders understand their customers’ needs, swift response becomes imperative. Currently, companies demand leaders who can adeptly adjust their plans with agility. An illustrative segment in this context is the consumer electronics manufacturing sector, where we frequently witness companies achieving success with tech leaders who can implement effective agile strategies. Conclusion The surge in demand for product leaders in Europe is undeniable and appears poised to persist. The key attributes driving companies to seek Chief Product Officers include their cross-functional leadership skills, customer-centric approach and ability to adjust strategies with agility. Particularly during new product launches, the guidance of skilled tech leaders proves invaluable, acting as a catalyst for elevating innovation within companies. About the author Paul Koudijs is a member of the TMT & High-Tech practice at Neumann Executive. He specializes in leadership, senior management and technology executive roles for the IT, Technology and FMCG/CPG sectors. Thank you for your interest in our executive search solutions. We are here to help you build your leadership team. Contact us for more details
Strategic role of HR in private equity
While many private equity (PE) investors are quite optimistic about the year 2024, the current challenging geopolitical situation, coupled with slow economic activity and tight credit markets, undeniably exerts pressure on the entire industry. This situation intensifies the pressure on PE firms to refine their current investments and maximize their value. According to a research project by Harvard Business Review, the leadership of portfolio companies (portcos) has a 10 to 15% impact on financial performance and a 25 to 30% impact on market valuation. In essence, talent emerges as one of the most crucial assets for private equity firms in creating value for their acquired companies. This trend is gradually overshadowing proprietary deal flow and financial engineering. Given these circumstances, the role of Human Resources (HR) in private equity becomes pivotal. Despite this, we still observe many portcos where the HR function remains transactional and, unfortunately, does not adopt the strategic scope we anticipate. At the very least, we would expect the following strategic competencies: 1. Getting the best talent on board Time is of the essence in private equity, but… For a PE firm, it is crucial to assemble the right team before completing the acquisition process. When executive search is involved, HR professionals often face a common challenge. Both portco and PE executives may, at times, emphasize the urgency of time, pushing HR to take shortcuts, such as hiring based on personal connections or past success stories. This can prove to be a costly approach. Each acquisition unfolds under unique market conditions, and each portfolio company confronts distinct challenges—no story can be replicated. The only correct approach is to conduct a thorough executive search supported by an extensive list of target companies, including already recommended candidates. Even after the top management of a portco is hired and settled, the active role of HR persists. According to data from AlixPartners, 73% of CEOs are likely to be replaced during the entire investment life cycle, and even 30% of replacements will be replaced. These alarming numbers apply similarly to other executive positions. This places special stress on HR professionals to continually observe the market and benchmark internal candidates against the best external ones. The most efficient way to do so is through talent mapping, often provided externally by most executive search firms. 2. Retaining and motivating top talent Without a doubt, one of the primary tools for retaining, motivating, and attracting key individuals in portcos is the executive package. Quality packages typically include two or three percent equity, and this percentage may increase based on the seniority of selected executives. The HR professional must ensure that packages, even those with little or no equity, are supplemented with other meaningful incentives to maintain the loyalty and motivation of key talent. In addition to enticing executive packages, HR should also play a pivotal role in creating and managing other tools to retain and motivate key talents. These may include, for instance, clear communication of the company’s vision, employer branding, or hybrid working models, just to name a few. Learn more about the latest trends in the labor market. Check out the following publications: 3. Integrating different cultures Culture is key to success (and failure) in private equity deals… When a PE firm acquires a company, it usually has a significant impact on the portco culture. The encounter of two different cultures can be fatal for the entire deal. While PE professionals excel in numbers and deal structuring, they often lack excellence in people skills. Their financially focused, change management, or time-pressing attitudes can create significant stress for portco management, easily destabilizing the whole team and hampering its productivity. The situation may worsen if the portco CEO or CFO also comes from the PE industry. This is where the crucial role of HR executives comes into play. With strong support from other top executives, they need to integrate both cultures and smooth out sharp edges as quickly as possible. Cultural fluency, involving consideration of the other person’s perspective, is key. This can be achieved by deploying various tools such as continuous communication of the company mission and objectives, introducing a new organizational structure, conducting workshops and team-building events, fostering employee engagement, etc. However, the most important tool for each stakeholder involved is mutual respect and humility. Conclusion: Value creation in private equity occurs through various mechanisms, but ultimately, it is driven by people. Every PE firm, especially in middle-sized and larger portcos, should appoint a strategic HR executive with a broad mandate (but at least at the minimum scope mentioned above) and a sufficient budget, as this can significantly increase the company’s value more than anything else. About the author Lumir Meloun is an executive search professional with over three decades of experience and a proven track record in top management positions across diverse industries. His expertise is concentrated in the private equity and financial services sectors in continental Europe and the UK, with a particular emphasis on the CEE region. Thank you for your interest in our executive search solutions. We are here to help you build your leadership team. Contact us for more details
Adapting to the future of work: A holistic approach to upskilling, reskilling and purpose-driven jobs
In today’s fast-paced business environment, leaders must be prepared to tackle the challenges presented by the Fourth Industrial Revolution, the rise of AI and automation, and the demand for purpose-driven jobs. Find out in this article how important it is for organizations to adapt an invest in the upskilling and reskilling of its workforce. Upskilling refers to the process of enhancing existing skills, while reskilling aims to equip employees with new skills for different roles within the organisation. By providing opportunities to develop new competencies and grow professionally, companies can stay ahead of the competition and ensure that their workforce is ready for the future. How to plan for reskilling and upskilling With technology advancing at an unprecedented rate, it is crucial to adapt and acquire new skills that align with shifting norms. By taking the initiative to upskill or reskill, employees can not only enhance their job prospects but also gain a greater sense of fulfilment and satisfaction in their work. However, it is important to first identify areas for improvement and to set achievable goals. From there, individuals may consider various learning opportunities, such as online courses or professional development programmes. Furthermore, fostering a culture that values purpose-driven jobs is essential when it comes to attracting and retaining top talent. As more professionals seek roles that align with their personal values organisations must be prepared to offer meaningful work. By connecting employees’ roles to the greater mission and values of the company, businesses can create an environment in which individuals are inspired to contribute their best efforts and drive the organisation forward. Learn more about the latest trends in the labor market. Check out the following publications: Identifying skills for today and tomorrow One way to achieve this is by developing pathway tools that help employees visualise their potential growth within the organisation and to identify the skills that will underpin their advancement. By offering resources and support for continuous learning, companies can empower employees to pursue their passions and align their career goals with the company’s objectives. But the first step in this process is to have a clear understanding of the importance of building a purpose-driven culture within the organisation. This begins with recruiting and developing leaders who recognise this very need. By prioritizing purpose-driven jobs and fostering a supportive environment, companies can better align their workforce with their overall mission. Developing a strategic plan for reskilling and upskilling Developing a strategic plan is crucial for ensuring that the right skills are being taught to the right people at the right time. Such a plan can outline the goals and objectives of the reskilling and upskilling programme. It can also identify the skills needed for individual roles, and highlight the training resources available. By taking a thoughtful and strategic approach, companies can ensure that their employees are ready to face any challenge and stay ahead of the curve in terms of performance deliveries. Utilising existing resources to gain new skills and certifications As companies continue to adapt to new technologies and evolving work environments, the demand for skilled and knowledgeable employees has never been higher. Fortunately, HR departments, can draw on existing resources, and implement a suite of measures to help employees gain new skills and certifications. By investing in employee development, companies not only foster talent but they boost engagement and retention rates. HR departments that draw on existing resources not only lay strong foundations for growth and development, but personify gold-standard best practice. About the author Łukasz Jadczak is a highly experienced Executive Search professional with nearly two decades of expertise. He is focused on supporting clients through complex change management and organizational transformation processes. Thank you for your interest in our executive search solutions. We are here to help you build your leadership team. Contact us for more details.
Gen Z employees becoming managers: What can we expect?
Gen Z is now in the workforce. Organizations must adapt their strategies to effectively attract, retain, and engage this new generation of employees. What is even more important, the “under 30” professionals, so the oldest members of Gen Z and youngest Millennials, are already beginning to hold executive positions. In this article, we explore how Gen Z employees are shaping the future of leadership. Gen Z employees stepping into the new role It is uncommon for Gen Z employees to attain C-level positions beyond Startups. However, a growing number of young professionals are now securing middle management or N-1 level roles. The rise of Gen Z managers is particularly evident in business environments that embrace innovation, agility, and digital transformation. Industries that heavily rely on technology, such as e-commerce, software development, and digital marketing, are witnessing an increasing number of Gen Z managers at the forefront. These young leaders thrive in fast-paced, dynamic environments. Space, where they can leverage their technological prowess and adaptability to drive organizational success. Startups and tech companies, known for their emphasis on creativity and disruption, are also fertile ground for Gen Z managers to flourish. Furthermore, industries that prioritize social responsibility and sustainability, such as renewable energy, ethical fashion, and eco-friendly consumer goods, attract Gen Z managers who are deeply invested in making a positive impact on society and the environment. Regardless of the specific industry, businesses that value diversity, collaboration, and employee well-being are more likely to see Gen Z stepping into management roles, as these values align closely with the priorities of this generation of leaders. Learn more about the latest trends in the labor market. Check out the following publications: Create a resilient culture in times of uncertainty AI for businesses: How to combine technology and human skills Adapting to the future of work: A holistic approach to upskilling, reskilling and purpose-driven jobs More technology and purpose-driven leadership There are some significant strengths that Gen Z Managers bring to the table, such as tech-savvy approach and digital leadership. Growing up in the digital age, Millennials and Post-Millenials are known for their comfort and proficiency with technology. They often incorporate technology into their leadership practices, leveraging digital tools and platforms for communication, project management, and data analysis. Moreover, they are quick to adopt emerging technologies and are often at the forefront of digital transformation initiatives within organizations. Millennials and Post-Millenials also represent purpose-driven leadership, often motivated by a desire to make a positive impact on the business environment. They seek meaningful work and are motivated by organizations that align with their values. What’s more, creating a flexible and adaptative work environment is natural and intuitive for them. Which on the other hand might be sometimes challenging for Baby Boomers and Generation X. Hiring young leaders for high-level positions can cause doubt among management boards. In executive search recruitment, there are concerns about these candidates relying too much on technology, being impatient, and having a general lack of experience. However, with the right guidance and opportunities for mentorship, young leaders can successfully manage high-value companies and intricate organizational structures. An HR and advisory toolkit, complete with strategic workshops, development programs, and personalized coaching and mentoring sessions, is available to aid in this process. It’s crucial to cultivate an inclusive culture rooted in diversity and equality, which necessitates the gradual integration of skilled and knowledgeable leaders, regardless of their brief experience. Gen Z employees as future of leadership Gen Z managers have a profound impact on organizational dynamics, bringing forth a host of transformative changes. With their fresh perspective, innovative mindset, and adeptness with technology, Gen Z managers are catalysts for organizational agility and adaptation. They embrace collaboration and inclusivity, fostering diverse and cohesive teams that thrive on cooperation. These young leaders prioritize employee well-being, recognizing the importance of work-life balance and mental health support. Gen Z managers also champion a culture of continuous learning and growth, encouraging professional development and embracing emerging trends. Furthermore, they leverage their digital fluency to drive digital transformation, implementing new technologies and processes to streamline operations and enhance productivity. Their focus on sustainability and social responsibility shapes organizational values, driving companies to adopt environmentally friendly practices and engage in ethical business initiatives. About the author Dorota Hechner is an esteemed consultant, who boasts of extensive experience in the field of executive search, recruitment, and HR consulting. With an unparalleled level of expertise, she endorses a personalized, innovative approach that prioritizes achieving unmatched outcomes for all her clients. Thank you for your interest in our executive search solutions. We are here to help you build your leadership team. Contact us for more details.
Create a resilient culture in times of uncertainty
Building a culture based on resilience is crucial for any organization looking to thrive in today’s unpredictable and rapidly changing world. In this article, we explore the significance of building a resilient culture and provide valuable insights on how to foster it within your organization. Resilient culture is one where individuals are able to bounce back from setbacks, learn from failure, and adapt to changing circumstances. A culture of resilience also acknowledges that the future is unknown; and therefore individuals are encouraged to be comfortable with ambiguity and change. Leading through resilience requires a shift in mindset from the traditional command and control approach to one that is more collaborative and adaptive. Leaders need to be able to communicate a clear vision for the future while acknowledging the uncertainties that lie ahead. Building a resilient culture One of the key components of building a culture of resilience is fostering a growth mindset. This means encouraging individuals to embrace challenges and to view failure as an opportunity to learn and grow. Leaders can do this by providing regular feedback, setting achievable goals, and creating a supportive environment where individuals feel empowered to take risks. Learn more about the latest trends in the labor market. Check out the following publications: Another important aspect related to the building of resilient culture is promoting mental and emotional well-being. This means acknowledging the challenges that individuals may face both inside and outside of work, and providing resources and support to help them cope. Leaders can do this by offering wellness programs, flexible work arrangements, and encouraging a healthy work-life balance. The role of a leader Where there is uncertainty, leaders need to be comfortable with ambiguity, and be willing to embrace change. This means being open to new ideas and different perspectives, and encouraging individuals to challenge the status quo. Leaders can do this by fostering a culture of innovation and experimentation, and by providing all necessary resources and support. Leaders need to be transparent and authentic in their communications. This means being honest about the challenges that lie ahead, while also providing hope and inspiration for the future. For this, leaders need to be able to communicate a clear vision. Creating a resilient culture – why is it crucial nowadays? There are several psychological concepts that can be applied to building a culture of resilience: By incorporating these psychological concepts, leaders can create an environment where individuals and teams are better equipped to navigate the challenges of our unpredictable world. The application of these concepts can help individuals and teams develop resilience, adaptability, and flexibility, which represent the foundations concepts for the achievement of success. About the author Alicja Jaworska supports executive search in life science, healthcare and biotechnology. During almost 12 years in the medical industry, Alicja built extremely strong client and contact base. Thank you for your interest in our executive search solutions. We are here to help you build your leadership team. Contact us for more details.
AI for businesses: How to combine technology and human skills
AI for businesses represents a new way to find fresh solutions, improve operations, boost customer satisfaction and outshine competitors. One promising approach is teaming up artificial intelligence (AI) and human skills. This article explains how AI-human teamwork can transform business customs and lead to big achievements. Benefits of AI for businesses Modern technology and humans working together can transform customer support. With chatbots and virtual assistants powered by AI, businesses can revolutionize their interactions with customers. These intelligent systems can handle simple queries, offer immediate support, and even complete basic transactions. By automating repetitive tasks, businesses can free up their employees to focus on more challenging and valuable tasks, like resolving complex issues or creating stronger customer connections. Learn more about the latest trends in the labor market. Check out the following publications: Adapting to the future of work: A holistic approach to upskilling, reskilling and purpose-driven jobs Gen Z employees becoming managers: What can we expect? Create a resilient culture in times of uncertainty Integrating AI into your businesses Algorithms of artificial intelligence are impressive at analyzing loads of data and spotting patterns. By using AI-driven predictive analytics, businesses can boost their accuracy in forecasting demand. This helps organizations to fine-tune inventory levels, avoid shortages, and decrease surplus stock. As a result, supply chain efficiency and customer satisfaction can improve. With human experts adding their industry know-how, knowledge of the market, and understanding of the situation, these forecasts can be adjusted to be even more precise. It’s a collaborative approach that delivers the most accurate results. In a time when everything is going digital, personalization has become incredibly important. Artificial Intelligence can analyze large amounts of customer data such as demographics, browsing history, and purchase records, to create targeted marketing campaigns and customized product recommendations. Marketers and sales professionals are the key drivers in showcasing the benefits of AI for business – they can now provide a personal touch and use their creativity to tailor marketing messages, understand customer emotions, and build trust. This collaboration leads to better customer engagement, increased conversion rates, and fosters long-term customer loyalty. Preparing employees for the future of AI Automation is fundamental to today’s business practices. When AI is paired with human input, intelligent process automation can be achieved, surpassing simplistic rule-based tasks. Artificial intelligence can study and assess unstructured data, while making informed choices within a certain context. As a result, businesses can streamline intricate workflows, process documents more quickly, and enhance the precision of customs processes. Human experts are still necessary to oversee and direct AI systems, to guarantee conformity with regulations and to maintain quality control. The combination of this modern technology and collaboration with humans has huge potential for revolutionizing business practices. For example, businesses can automate repetitive tasks, improve efficiency, and offer personalized customer experiences. However, it’s important to remember that artificial intelligence can’t replace human expertise, but can instead enhance it. By working together, businesses can capitalize on the strengths of both AI and humans to boost innovation, increase efficiency, and achieve sustainable growth in today’s competitive environment. By embracing AI-human collaboration, businesses can open up new opportunities, redefine conventional practices, and pave the way for a more successful future. About the author Rafał Boczkowski has 20 years of professional experience in CEE & Baltics as both as Executive Search Consultant and HR Leader. He is appreciated by his clients for his extraordinary full-range problem-solving approach. Thank you for your interest in our executive search solutions. We are here to help you build your leadership team. Contact us for more details.
