Notes¥from¥the¥conference¥¥¥ Alexander Hughes THIERRY DE MONTBRIAL CIS EXECUTIVE SEARCH CONSULTANTS Founder & President of the French Institute European Newsletter for International Relations (IFRI) Notes from the conference... PAGE 2 Alexander Hughes Russia CIS Executive Search in Central Managing Partner: LAURENCE BAPAUME Bolshaya Ordynka St., 44/4 THERE NOW EXISTS DISTINCT SPECI- 109017 Moscow, Russia FICITY IN THE SEARCH FOR TOP MAN- Tel: (7) 095 935 87 77 & Eastern Europe Fax: (7) 095 935 87 78 AGERS IN THESE COUNTRIES: E-mail: [email protected] Commonwealth of Independent ■ Western Managers set-up within these countries and dates' culture, the languages made, throughout the States the new companies and train who, after an internship they speak, and how their search, by the Search local Managers on European abroad, would be capable of families feel about the possi- Consultants on site as well or Anglo-Saxon systems of assuming the proper manage- ble life and career change. as those at the Group head- reporting and productivity. ment of the companies under quarters and the General CENTRAL EUROPE This means of course taking construction or renovation. ■ The complexity of these Management of the local certain transitional measures: different elements and the and international corpora- obviously a "colonial" type of ■ These assignments require suitability of a person to a tion who are recruiting, as policy of importing managers a lot of finesse, taking into certain post comes out of well as the decided motiva- is completely excluded in consideration the candi- the cooperative judgment tion of the candidates. No 26 these countries with such prestigious history. SEARCHSEARCH Alexander Hughes is a European Group of Exe- ■ Managers who have emi- cutive Search Consultants, specialized in the direct search grated to other countries, and recruitment of Board level Managers, Experts and bestowed with diplomas Non-Executive Directors. We accompany our clients Human Capital in Central from Western universities, throughout their development across Europe, offering our have the advantage of knowledge in order to help them succeed in their new speaking the local language establishment or to restructure their existing business.

and are also keen on coming After structuring our presence in Western Europe as well EDITORIAL & Eastern Europe

back to their countries under as developing a fully global service as co-founder of AEA [] good conditions. International Search (Americas – Europe – Asia Pacific), we have been dedi- he success of a company set-up abroad techniques are going to develop quickly as head- cated to adding a very strong presence in Central and Eastern Europe, under depends in large part on the key players put in hunters, playing an essential role at the heart of this ■ Local Engineers and development since 2001. charge of local subsidiaries. Expatriation of endeavor, are confronted more and more frequently by RICHARD HES, Managers who have been T Our presence in Central and Eastern Europe is organized in three zones: already-known collaborators is often the first essen- recruiting problems with new conditions specific to MANAGING PARTNER AH CZECH REPUBLIC well trained from schools ᮣ Our office in Moscow covers Russia as well as the other member tial step, however this is hardly satisfactory in the these complex countries. PRAGUE countries of the Commonwealth of Independent States. long-term as it is costly and not always most suitable Alexander Hughes Czech Republic ᮣ Central Europe, led from Prague, disposes of offices in the Czech to the unique situations in each country. The Executive Search professionals at Alexander Managing Partner: RICHARD HES Hughes chose to host an in depth reflection on this Repu-blic, Hungary, Poland and Slovakia. It is therefore necessary to search for and to find Resslova 1 subject led by Thierry de Montbrial, Founder and ᮣ top local management resources. 12 000 - Prague 2, Czech Republic Our Bucharest office serves Eastern Europe ( & ). President of IFRI. A conference, Human Capital in Tel/Fax: (420) 2 249 130 92 With over 30 years experience, our 18 completely incorporated offices, Central and Eastern Europe is a zone which represents Central and Eastern Europe, was held in June 2003 E-mail: [email protected] Czech Republic 80 Consultants and a total of over 200 professionals work to find the major stakes for international companies. Fostered by with an audience consisting of Managers from large Hungary key individuals who represent major strategic stakes for the develop- the admission of many of these international groups and the WARSAW Poland ment of your company. countries into the European Managing Partners of Alexander Alexander Hughes Poland Slovakia Union, they are going to experi- Hughes offices throughout Warsaw Financial Center ence a significant economic Europe, including the Czech ul. Emilii Plater 53, rebirth in a very short period of Republic, Slovakia, Poland, 00-113 Warsaw, Poland time. With their internal markets Romania, and Russia. Tel: (48) 22 528 6633 in full development, Central and E-mail: [email protected] The communications on the Eastern European countries are political, technical, and cultural going to open up to increased aspects of these countries pro- consumerism. Moreover these vided, and continue to provide a ASTERN EUROPE countries will be host to extensive E wealth of knowledge on the spe- manufacturing relocation. BUCHAREST cific stakes and the dynamism of Alexander Hughes Romania The struggle to find top local talent these zones. Managing Partner: GEORGE BUTUNOIU will be challenging, though vital 12, Belgrad St., Sector 1 for the development of groups MAURICE ROZET Bucharest, Romania coming from abroad as well as PRESIDENT Tel: (40-21) 231 07 30 local companies. Executive search ALEXANDER HUGHES INTERNATIONAL Fax: (40-21) 231 07 19 E-mail: [email protected] Bulgaria Romania Alexander Hughes 4 THE EXECUTIVE BOARD OF EXECUTIVE SEARCH CONSULTANTS ALEXANDER HUGHES INTERNATIONAL Founding member of International Search FURTHER READING... A Geopolitical & Historical View RUSSIAN POLITICS AND SOCIETY by Richard Sakwa “The construction of (Routledge; 2nd Edition edition, 1996). A CONCISE HISTORY OF POLAND by Jerzy Lukowki and Hubert Zawadski. Europe... by far the most (Cambridge University Press, 2001). of Central & Eastern Europe daring project of THE PRICE OF FREEDOM: A HISTORY OF EAST CENTRAL EUROPE FROM THE MIDDLE AGES TO THE PRESENT by Piotr Stefan Wandycz. the 20th century” (Routledge; 2nd edition, 2001). TRANSLATION FROM FRENCH OF A CONFERENCE GIVEN BY MR. THIERRY DE MONTBRIAL ()DOING BUSINESS IN EMERGING EUROPE by Francois-Serge Lhabitant, Yahia H. FOUNDER AND PRESIDENT OF THE FRENCH INSTITUTE FOR INTERNATIONAL RELATIONS Zoubir, and Alan Wilkinson. (Palgrave Macmillan, 2003). (IFRI) ON JUNE 10, 2003 AT THE AUTOMOBILE-CLUB DE IN , FRANCE rooted. Thus the fundamental question had already established a relationship is: What is Europe? Because if we want with Byzantium. One of the most the two World Wars. At that time, the to unify Europe, what exactly do we important cultural choices, originating Austrian-Hungarian Empire was com- N ORDER to understand Eastern European countries today were want to unify? Conventionally, geogra- the great divide in this region, was pletely dismembered including a part Europe, it is essential to recall the inevitably associated with the old phy books from the 19th century made almost simultaneously by the of the territories belonging to Hungary, Idramatic events of 1989 -which will regime in one way or another (notwith- showed clear geographical boundaries: Polish and the Russians: Poland chose that was given to Romania. This brought forever be a landmark in Universal His- standing the change of generations). the so-called Ural Barrier, the Caucasus the Roman Church and Kievian Russia along the problem of Transylvania, tory - and the fall of communism. We I insist on this point and the Turkish Straits. chose the Byzantine one. This split which remains a bone of contention for must also keep in mind the dialectics of because in Western “...we should Taking a closer look, we between Western and Eastern Empires the Hungarians. What is noteworthy is forgetting and remembering. Europe and the USA, rather talk about the realize that these and between the Roman Catholic and that the perspective of joining the EU we live in societies boundaries do not LAURENCE BAPAUME, MANAGING PARTNER OF AH Orthodox churches shaped the Euro- was enough of an incentive for Hun- unification of Europe RUSSIA CIS (CENTER) AND CONFERENCE GUESTS

Since the 1970s, my work has taken me where we tend to make any sense. On All the Photographs All Rights Reserved for pean history and continues to leave its gary and Romania to rein in potential to many countries. I am quite familiar believe that as soon as and not its one hand the Ural mark all over Europe. disputes. with Russia and most Eastern European we have turned the reunification” Mountains are insignifi- KEY FACTORS IN THE STRATEGIC SEARCH countries, pre and post communism. page, the world is radi-()cant and are only a con- Let us now tackle the construction of With regard to economic problems, FOR HUMAN CAPITAL IN CENTRAL & EASTERN EUROPE: On a trip to Poland, after the fall of the cally different. Fortunately, memories of ventional barrier. On the other hand Europe, as for me, it is by far the most after a rocky start, Poland, the Czech

Soviet Union near the end of 1991, the past still live on: this is what we call the Caucasus is indeed a barrier. But it ¥¥¥ UnderstandingEastern Europe as con- and engineers available across the zone, daring political project of the 20th cen- Republic and Hungary have performed I was taken aback by a meeting with culture or civilization. divides Ossetia in such a way that stituted by Russia and a mosaic of coun- thus allowing companies to take on rapid tury. Unfortunately our contemporaries remarkably well and have achieved the Polish younger generation who South Ossetia is in Georgia and North tries whose common goal is to attract development and establish new facto- are largely unaware of this. This great economic as well as political suc- You often hear about the "reunification Ossetia is in Russia. Thus, the Osse- foreign investments and to create their ries in these countries. endeavor began with the treaty of cesses, which must be commended. own local industries. Eastern European of Europe." This expression is irrelevant tians, ethnically the same people, end Realizing that despite the noticeable Rome in 1957, which means that the However let us not underestimate their countries, which are going to join the because, to my knowledge, Europe has up being either Asian or European. Fur- weaknesses within the managerial and European Union is not even 50 years burden and hardships. never been united and the history of ther more, if we consider the Straits of conference EU, are unequal in weight but have all old. What has been done historically ¥ financial fields, these countries have taken assumed an important industrial cul- Europe is foremost fraught with dis- the Bosphorus and the Dardanelles as on the challenge of training the special- over the past 46 years is unprecedented On average, the economic growth rate

putes and conflicts. When it was frontiers, it would mean that part of the ture and represent immediate and sig- in world history, despite lamentations in these countries should be higher

¥ ized Managers they were missing. united, it was only partially and for would be European and the nificant markets in full growth. and criticisms. The fact is that today we than in Western Europe, however it will Taking advantage of the trend, which short periods of time under the rule of other part Asian. Takinginto consideration the human and find it absolutely natural that all the take several decades to get the two from takes many of these Managers to West- conquerors like Napoleon. There has ¥ cultural importance of the past as well as Union members interact in a coopera- parts of Europe on the same level. ern universities to perfect their stud- never been a truly united Europe in the The history of Russia is quite different the unique dynamics of modern society tive manner and that the temptation of ies. Others have done internships or sense that union derived from the peo- from the history of Western Europe. The in this part of the World. war between European nations has A very positive point should however th worked abroad; and still others, whose ples' choice, as is implied today. Princes of Kiev in 10 century Russia Notes become unthinkable. In the long run, be underlined. In all of these countries, Recognizing the generations of well- families have settled abroad and have the extraordinary importance of the on- including Russia, human capital repre- As a consequence, we should rather educated and highly valuable experts had the opportunity to do their studies going process will be fully recognized. sents a very high potential. In the com- talk about the "unification" of Europe there, also speak the lan- munist system, one of the rare suc- and not its reunification. And in this guage of their native Today, as accession demands daring cesses was the educational system, in regard, the weight of history is consid- country, and eventually economic reforms, the EU is first and both technical and cultural fields. GÉRARD ARNOLD (RIGHT), INTERNATIONAL wish to go back to their ADVISOR OF AHI AND A CONFERENCE GUEST erable. If countries like Poland, Hun- foremost perceived as being a source of gary, and the Czech Republic, who roots. difficulties by incoming members. It is As a conclusion, I would like to insist on want to join the European Union, are Recognizing that all of also perceived as a source of subsidies. the time factor. Einstein once said: didn't seem to even know that Poland doing so half-heartedly, it's because these countries have been Thus daily concerns take the lead on "If you put nine women who are 1 had once been communist. They were they don't want to give up their experiencing a significant the historical project. month pregnant next to each other, you barely familiar with names such as recently recovered sovereignty so rebound over the past few don't get a child." Hitler and Stalin. It is a bit of a carica- quickly. One of the major reasons why years, Russia being a very The new members' relationship with You have to take your time. ture, but this sort of phenomenon these countries, among others, feel good example of a coun- the also poses a delicate should not be misleading. After the closer to the United States than to try coming back after its problem. Today the Hungarians and the ALEXANDER HUGHES EUROPEAN NEWSLETTER trauma that lasted for decades in most Europe is because they have not forgot- crisis of 1998. A very eco- Polish obviously have a rather strong Editor in Chief. Maurice Rozet of these countries, there is a need to ten that the wars between France and American tropism. Editorial Committee. Richard Aeschmann, Gérard Arnold, n°26 nomically strong CEE Robert Baldwin, Laurence Bapaume, George Butunoiu, forget and to dismiss the past. This does Germany greatly contributed to putting zone will be very prom- Miguel Codina, Christian Coffinet, Michel Garretta, not mean that the past has vanished - them in dreadful situations. In 1989, as the eastern part of Europe Dick Hawkes, Richard Hes, Tony Inglis-Arkell, Michel Rosset, ising for the future of Denis Sesboüé, Elizabeth Thomas on the contrary - it is very present. the 25-member Europe broke off from the Soviet Empire, it International Coordinator. Jennifer Rowell [email protected] Many of those people who hold a posi- Once again I insist on the fact that currently under con- founds itself anew faced with the situa- Head Office. tion inherited from the period between 57, bd de Montmorency – 75016 PARIS FRANCE tion of responsibility in the eastern these cultural phenomena are deeply struction. Tel.: (33) 01 44 30 22 00 Fax: (33) 01 42 88 33 95 www.alexanderhughes.com e-mail: [email protected] 3 Offices in Europe. Amersfort, Barcelona, Berlin, Brussels, 2 THIERRY DE MONTBRIAL AND DANA MORARIU, Bucharest, Frankfurt, , London, Lyons, Madrid, Milan, Graphic designer SENIOR CONSULTANT - AH ROMANIA Moscow, Paris, Prague, Seville, Turin, Warsaw, Zurich. Printed September 2003 •