Synopsis: For mid-sized, international industrial companies headquartered in developed markets, expanding and operating in emerging markets presents a distinct set of leadership talent challenges. These organizations, often operating in niche or specialized segments within the industrial sector, encounter significant barriers to securing the right leadership talent to drive performance in underdeveloped markets.
Recognizing, accepting and navigating these challenges is critical to reducing inefficiencies, managing stakeholder expectations, and optimizing long-term outcomes. These challenges include:
Many emerging markets lack a strong industrial base and a corresponding technical education infrastructure. Local talent is frequently concentrated in commercial or service-oriented sectors, narrowing the pool of candidates with relevant operational and engineering expertise.
In contrast to developed markets, where industrial competition fosters a vibrant executive talent ecosystem, emerging markets often lack the usual competitors. Where competitors do exist, they frequently operate through agents, distributors, or legacy family business partnerships, none of which are structured to produce seasoned executive talent.
In some cases, multinational firms with a longstanding local presence have cultivated suitable leadership talent. However, these professionals often exhibit strong institutional loyalty, having developed their careers within a single organizational culture. Despite initial openness to new opportunities, those candidates frequently withdraw late in the process due to hesitation or perceived risk.
The absence of standardized compensation benchmarks across emerging markets in underdeveloped sectors leads to considerable disparities in leadership remuneration. This lack of consistency complicates market mapping, benchmarking, and creates potential inequities within regional leadership teams.
Deploying expatriate leaders supported by a long-term local successor plan remains an effective interim solution. This model, when coupled with structured mentorship and exposure to cross-border teams, facilitates localized capacity-building. However, localization policies and cultural considerations can limit the sustainability of expatriate-led structures. Having an expatriate in a local market is also an expensive solution given the required compensation and expat benefits (housing, schooling, relocation etc.)
An increasingly tested approach involves recruiting leadership talent from adjacent sectors with more mature industrial ecosystems such as FMCG with a significant manufacturing operations. These candidates often bring stronger operational expertise and international exposure. The challenge lies in managing the elevated compensation expectations and aligning these potential hires with HQ preferences, particularly when candidate backgrounds deviate from the established norm that are vigorously tested in developed markets.
Once a leadership solution is implemented, retention emerges as the next critical issue. Executives who meet the profile become highly visible and in-demand across the market. Without a robust retention strategy, they risk rapid turnover and talent flight.
Excapio is a disruptive executive search and leadership advisory firm, dedicated to identifying and securing exceptional leadership talent through a strategic, bespoke and insight-driven methodology. The name, Excapio, is derived from two fundamental components: “Ex” representing the executive search discipline, and “Capio” a Latin term meaning to find, seek, capture, or acquire. This fusion underscore a core mission—to assist organizations in discovering and appointing visionary leaders who will drive their success.