7. Global Careers - PRINT_watermark.pdf

# Work background of top managers This section explores the typical professional trajectories and prior experiences of individuals who attain top management positions, examining their industry backgrounds and career progression. ### 1.1 Previous industry experience Top managers often have a diverse range of prior professional experiences, with certain sectors being particularly prevalent in their career paths [2](#page=2). #### 1.1.1 Banking and finance A significant proportion of top managers, approximately 15 percent, have a background in banking. This suggests that experience within the financial sector is a common precursor to leadership roles [2](#page=2). #### 1.1.2 Consulting The consulting industry also serves as a strong foundation for future top managers, with around 10 percent of CEOs having prior experience in this field. Furthermore, 14 percent of top managers have experience in international consulting and audit firms [2](#page=2). #### 1.1.3 Academia While less common than banking or consulting, a small percentage of top managers, around 3 percent, come from academic backgrounds [2](#page=2). #### 1.1.4 Public service Experience working for the government or in the public sector is valued, particularly in countries like France. Approximately 20 percent of top managers have experience in public service [3](#page=3). ### 1.2 Career progression and number of positions held The journey to a top management position typically involves holding multiple roles before reaching the highest echelon of leadership. #### 1.2.1 Average number of positions On average, individuals hold approximately 8.3 positions before reaching their top executive role. This figure highlights a career path that often involves a considerable amount of experience across various roles and potentially different organizations [3](#page=3). > **Tip:** The substantial number of positions held before reaching the top indicates that leadership development is often a gradual process, involving diverse responsibilities and learning experiences. #### 1.2.2 Breakdown of average positions Further details on the average number of positions reveal a pattern of progression: * An average of 6.5 positions are held before reaching the top executive level [3](#page=3). * This is further broken down to an average of 5.4 positions [3](#page=3). * And an average of 4.9 positions [3](#page=3). These figures collectively underscore the extensive career development and experience accumulation necessary for individuals to ascend to top management positions. --- # Education and international background of top managers This topic examines the academic qualifications and global exposure of individuals in top management positions. ### 2.1 Completed university studies A significant majority of top managers have completed university studies. While it is possible to reach top management without a university degree this is not the norm. The primary fields of study for top managers are business, management, or economics, followed by engineering. Other common fields include law and a broad category of "other" studies. For instance, in Switzerland, economics accounts for approximately 48% of top managers' studies, with engineering at around 30%, law at 16%, and other fields at 10% [5](#page=5) [6](#page=6). ### 2.2 Proportion with MBA degrees The presence of MBA degrees among top managers is notable, with figures varying across different contexts. In some observed instances, up to 63% of top managers hold an MBA degree. There is evidence of an increasing number of top managers obtaining MBAs, particularly in countries like Switzerland [6](#page=6) [7](#page=7). ### 2.3 Proportion with PhD degrees A considerable proportion of top managers also hold PhD degrees. Germany, in particular, has shown a very high proportion of top managers with PhDs, with 45% holding one in 2009. Additionally, Russian top managers have been observed to hold multiple university degrees [7](#page=7). ### 2.4 Elite institutions The origin of a top manager's education can be significant, with studies suggesting that attending elite institutions matters. Examples of such prestigious institutions include the Grandes écoles in France, Oxbridge in the UK, ABC schools in India, and the Ivy League in the USA [8](#page=8). ### 2.5 International background The international background of top managers is a key aspect of their profile. #### 2.5.1 Proportion that are non-PCNs (foreigners) A substantial proportion of top managers are not "primary country nationals" (PCNs), meaning they are foreign nationals within the country of management. Swiss managers, for example, are highly internationalized, even when compared to managers in the Netherlands and Sweden, with reported proportions of non-PCNs at 46% and 51% in some studies [9](#page=9). #### 2.5.2 Proportion with international experience International experience is common among top managers. Many top managers have had exposure to international environments during their careers. A significant percentage report having international experience, with figures reaching 75% in some datasets [9](#page=9). #### 2.5.3 Proportion with at least 3 international experiences Beyond general international experience, a notable number of top managers have accumulated multiple international experiences. Studies indicate that between 11% and 17% of top managers have at least three distinct international experiences [10](#page=10). > **Tip:** When analyzing the educational background of top managers, consider both the type of degree and the reputation of the institution. Similarly, for international background, differentiate between general international exposure and multiple, specific international experiences. > **Example:** A top manager might have an MBA from Harvard (elite institution, MBA degree) and have previously worked in leadership roles in both Germany and Singapore (multiple international experiences), contributing to their overall international background. --- # Reaching the top: career paths and influencing factors This section examines the distinct pathways to reaching elite positions, differentiating between meritocratic contest-based routes and elite-sponsored selection, alongside key societal and organizational factors that shape career progression [11](#page=11) [12](#page=12). ### 3.1 Pathways to elite positions Two primary routes are identified for individuals aspiring to reach the top: the contest route and the sponsorship route [11](#page=11) [13](#page=13). #### 3.1.1 The contest route: merit-based advancement The contest route is characterized by an open competition where elite status is the prize, and participants have significant latitude in their strategies. This path is primarily based on what an individual can do, emphasizing merit and performance [11](#page=11) [13](#page=13). Key elements of this route include: * **Day-to-day results at work**: Consistent delivery of expected outcomes is crucial [14](#page=14). * **Ability to deliver expected results**: Demonstrating capability to meet and exceed job requirements [14](#page=14). * **Consistency and track record**: A sustained history of successful performance builds credibility [14](#page=14). * **Perceived results**: How one's achievements are viewed by others [14](#page=14). * **Reputation**: The overall standing and opinion of an individual's work and character [14](#page=14). * **What other people think of you and your work**: External perception significantly influences advancement [14](#page=14). * **Getting noticed**: Actively ensuring one's contributions are visible [14](#page=14). * **Who knows you and that you are able to do what you do?**: The intersection of recognition and demonstrable ability [14](#page=14). Performance is considered the foundation of career progression in this model [14](#page=14). #### 3.1.2 The sponsorship route: elite-selection-based advancement The sponsorship route involves elite recruits being chosen by established elites or their representatives. Status is conferred based on criteria of supposed merit, and upward mobility is akin to entering a private club where sponsorship by existing members is necessary. This path is largely dependent on who an individual knows and is characterized by network-based advancement [11](#page=11) [13](#page=13). > **Tip:** While both routes can lead to top positions, understanding their distinct mechanisms is crucial for strategic career planning. #### 3.1.3 Family influence in banking Historically, family belongingness has played a significant role in the banking sector, particularly in private banks, where a high percentage of banking elites have come from families of top bankers. However, this trend has diminished over time in other types of banks [11](#page=11). > **Example:** A chart illustrates the declining percentage of banking elites with a family background in top banking positions from 1900 to 2020, showing a steeper decline in commercial banks compared to private banks [11](#page=11). ### 3.2 Factors influencing career progression Several national and organizational factors significantly shape an individual's career trajectory [12](#page=12). * **National institutions**: Systems such as the education system play a substantial role in career development [12](#page=12). * **Cultural factors**: Societal perceptions of certain career experiences, like military or civil service, can influence opportunities [12](#page=12). * **Elite circles**: The influence of established elite groups can dictate access to certain positions, sometimes resembling a caste system [12](#page=12). * **Approach towards management**: The prevailing management philosophy, whether generalist or specialist, impacts who can ascend to managerial roles [12](#page=12). * **International background**: Credentials from international institutions, such as an MBA from the USA, can serve as a stamp of credibility [12](#page=12). ### 3.3 Key career competencies Beyond technical skills, certain competencies are critical for career advancement. These can be categorized as [15](#page=15): * **Knowing how**: This involves the ability to adapt work skills to different contexts and learn new competencies (learnability) [15](#page=15). * **Knowing whom**: Relational competencies are vital, encompassing the ability to develop and maintain a network both inside and outside the organization [15](#page=15). * **Knowing why**: This refers to self-awareness regarding interests, values, and identity, which is essential for adapting to new contexts [15](#page=15). Exposure, or making one's capabilities known, is identified as a key to advancement [14](#page=14). > **Tip:** Developing both strong performance (knowing how) and robust networks (knowing whom) is essential for a successful career. ### 3.4 Management effectiveness Research distinguishes between average, successful, and efficient managers, suggesting different attributes contribute to each category. While the specific attributes for each category are not detailed in this excerpt, the implication is that effectiveness in management involves more than just efficient task completion [15](#page=15). ### 3.5 Career scripts The concept of "career scripts" describes the prevalent models or narratives that guide career progression. Two main types are identified [16](#page=16): * **Traditional career script**: Often implies mobility within a single organization (intra-organizational mobility) [16](#page=16). * **Mobility career script**: Encompasses both intra-organizational and inter-organizational mobility [16](#page=16). The relative speed of these scripts towards achieving CEO status is a point of inquiry [16](#page=16). ### 3.6 Other influencing elements Other critical elements that contribute to career advancement include: * **National culture**: The broader societal culture [16](#page=16). * **Company culture**: The internal environment and values of an organization [16](#page=16). * **Networking**: The active cultivation of professional relationships [16](#page=16). * **Mentors & coaches**: Guidance and support from experienced individuals [16](#page=16). --- # Military service and public sector experience This topic examines the significance of military service, particularly Swiss officer ranks, and public sector experience in the career trajectories of top managers, including their historical and cultural impact on corporate elites. ### 4.1 Military service Historically, the Swiss army has played a role in informally coordinating Swiss capitalism and in the development of a business and corporate elite [ . Data indicates a notable proportion of top managers have held officer ranks in the Swiss military, with figures showing 56.6% in 1980, 53.6% in 2000, and 43.4% in 2010 [ . This suggests a persistent, though slightly declining, connection between military officer experience and entry into top management positions in Switzerland over a thirty-year period [4](#page=4). ### 4.2 Public sector experience Experience working in government or the public sector is considered highly valuable, particularly in France [ . While a small percentage of top managers have public sector experience, this background is recognized for its contribution to career paths [ ] [3](#page=3). > **Tip:** Pay attention to the nuances in how different countries value public sector experience, as the document highlights France as a specific example of high valuation. ### 4.3 Career progression insights The average number of positions held before reaching a top position has shown a general trend of decrease between 1980 and 2010, moving from 8.3 to 4.9 [ . This might suggest a more accelerated path to top management in recent years, potentially influenced by factors such as globalization and evolving corporate structures [3](#page=3). > **Example:** The average number of positions before reaching a top role in 1980 was 8.3, whereas by 2010, this number had reduced to 4.9 [ . This indicates a potential shift towards faster career progression to senior leadership [3](#page=3). --- ## Common mistakes to avoid - Review all topics thoroughly before exams - Pay attention to formulas and key definitions - Practice with examples provided in each section - Don't memorize without understanding the underlying concepts

| Term | Definition | |------|------------| | Top Managers | Individuals who hold the highest-ranking positions within an organization, responsible for strategic decision-making and overall performance. | | CEOs (Chief Executive Officers) | The highest-ranking executive in a company, responsible for making major corporate decisions and managing overall operations and resources. | | Banking | The industry encompassing financial institutions that accept deposits, make loans, and provide other financial services to individuals and businesses. | | Consulting | The professional service of providing expert advice to businesses or individuals to help them improve their performance or solve specific problems. | | Academia | The environment or community related to universities, colleges, and other institutions of higher education, often involving research and teaching. | | Global Careers | Professional paths that involve international work experiences, cross-cultural interactions, and often lead to leadership roles in multinational corporations. | | MBA (Master of Business Administration) | A postgraduate degree focused on business administration and management, often pursued by individuals seeking to advance their careers in leadership positions. | | PhD (Doctor of Philosophy) | The highest academic degree awarded by universities, involving extensive research and a dissertation on a specialized subject. | | Officer Rank (Military) | A commissioned position within a military organization, typically held by individuals with leadership responsibilities and authority over enlisted personnel. | | Public Servants | Individuals employed by government agencies or public sector organizations, responsible for delivering public services and implementing government policies. | | Elite Circles | Exclusive groups of individuals who hold significant social, economic, or political power and influence within a society or industry. | | Meritocratic Route | A career progression based on individual ability, talent, and achievement, where opportunities are earned through performance and competence. | | Sponsorship Route | A career progression where advancement is facilitated by influential individuals or groups who support and promote a candidate for a position, often based on established networks. | | Performance | The accomplishment of a given task measured against pre-set standards of accuracy, completeness, cost, and speed. In a career context, it refers to one's effectiveness and results at work. | | Exposure | The degree to which one's work and capabilities are visible and recognized by others within an organization or industry, crucial for career advancement. | | Network | A system of interconnected people who can provide mutual support and assistance, particularly in professional contexts, facilitating opportunities and information exchange. | | Adaptability | The ability to adjust to new conditions or change, a key competency for navigating evolving professional environments and learning new skills. | | Learnability | The capacity and willingness to learn new skills and knowledge, essential for continuous professional development and staying relevant in dynamic fields. | | Relational Competencies | Skills related to building and maintaining relationships, including effective communication, collaboration, and networking with others. | | Mentors | Experienced and trusted advisors who provide guidance and support to less experienced individuals, helping them navigate their careers. | | Coaches | Professionals who help individuals develop specific skills, improve performance, and achieve personal or professional goals through structured guidance and feedback. | | Traditional Career Script | A career path characterized by stable, long-term employment within a single organization, with a focus on hierarchical progression and loyalty. | | Mobility Career Script | A career path that involves frequent job changes, movement between organizations, and a focus on acquiring diverse experiences and skills across different roles and industries. |