Our Industrial team recently released a study of the General Manager landscape of the Czech industrial sector, and its implications for retention, succession planning and recruitment. We are pleased to share with you an Executive Summary:

General Manager Landscape Key Findings

✅ The average number of years in the role is close to four. Almost 50% of GMs are new in the role (<2 years’ experience). After the third year, about half of GMs have changed roles and after the fifth year, around three-quarters. This illustrates the necessity of succession planning.

✅ If a GM has been in place for more than two years, candidates with “ready now” and “ready in 12 months” status should be identified, internally as well as externally.

✅ Half of the GMs are appointed internally, and the other half outside the organization. Czech-owned companies have double the number of external recruitments, with Engineering being the dominant functional background, followed by Finance.

✅ About half of the General Managers are “first-time” GMs, even more so in the case of Czech owned companies. Subsidiaries of international companies tend to place their bets on GMs who already have GM experience.
50% of General Managers have around 16 years’ experience before becoming a GM. No GM has less than 3 years’ experience.

✅ GM roles are mostly filled by men, with little movement over time. This gender disparity is consistent across both Czech-owned and international companies.

✅ When it comes to the identification of GM potentials, attention must also be paid to diversity, provided that the employer has a stated desire to make improvements in this area.

✅ Of the people aspiring to a GM role, Directors with Engineering background are most likely to be recruited for a role outside their current company. For the purpose of retention, a development plan that leads to potential promotion is important to define. Patience should also be emphasized since GMs change roles at a relatively frequent rate, meaning that future internal opportunities are likely to arise.

If you have any questions regarding our observations or would like to receive the full complimentary report, please reach out to Daniela Nedvedova or email her on dnedvedova@spenglerfox.com