How to Revolutionize Exports? The Case of Estonia Anu-Mall Naarits General Manager Marketingi Instituut Estonia • • • • • • • • • Re-independent since 1991 45,227 km2 (similar in size to Denmark or the Netherlands) 1.34 million (68% Estonians, 25 % Russians) Capital Tallinn (403,000) Estonian Currency Euro (2011) Member of EU and NATO (2004) Member of Schengen zone (2007) http://www.investinestonia.c om/?internalUrl=whyInvestIn Estonia Key sectors ICT and electronics Transport and logistics services Business and financial services Industrial machinery and metalworking Main economic indicators, 2010 GDP real growth (%) 3.1 GDP (current prices, billion EUR) 14.5 GDP deflator (%) 1.5 Consumer price index (%) 2.7 Employment (15–74 years old, thousands) 570.9 Employment growth (%) -4.2 Unemployment rate (ILO) 16.9 Average wage (EUR) 791 Wage real growth (%) -2.0 Current account (% of GDP) 3.6 GDP growth and inflation, 2002-2010 15 15 10,2 9,2 10 7,8 7,1 10 7,5 7,1 5 5 3,1 0 0 2002 2003 2004 -15 Source: Statistics Estonia 2006 2007 2008 2009 -3,6 -5 -10 2005 2010 -5 -10 gdp growth inflation -14,1 -15 A NEW TRAINING PROGRAM TO BE LAUNCHED Goals for the new program • Increase export • Help companies to find new export sales managers • Decrease unemployment among graduates The program • Recruit 25 new export sales managers to 25 companies • 12 month export training • Personal mentor • Study visits abroad company mentor export sales manager Requirements 25 export sales managers • Graduates • 1st or 2nd job • Fluent English, Estonian + 1 foreign language • Experience from abroad • Motivated to start sales career 25 export companies • Min 640 000 euros export sales • 20 - 250 employees • Production or services • Targets a new market • Employs a new export sales manager for 12 months • Or appoints a person from other position Challenge to recruit 25 export sales managers 25 export companies …during 2 months or the program would not start Strategy • Nationwide intensive media communication to maximize the amount of applicants • Group selections to speed the process up • Communicate clear course of actions to partners, get them committed Maximise applications (3 weeks) Test and approve (1 week) Match companies with candidates (3 weeks) Match with coaches (2 weeks) CHALLENGE 1: GET ENOUGH APPLICATIONS Media campaign • Intriguing name: Export revolution • Press conference • 80 articles • Advertising in central media • Mailing lists and networks • Social media • Telemarketing for companies Results Export sales managers • 511 applicants • 189 qualified • 120 passed the language test Export companies • 67 applicants • 35 qualified CHALLENGE 2: MATCHING COMPANIES AND CANDIDATES Challenges • High risk decision for both parties • Candidates with no previous experience • How to know the sales potential of 120 candidates with almost no time? Work fair Schedule • 5 days pre fair access to CV-s / to companies’ information • 30 min pre-briefing • 1 hour 120 candidates meet the 27 companies • 30 min select up to 10 best candidates • 1 hour schedule interviews • up to 10 interviews 25+5 minutes • Selection narrowed to 4-6 candidates Final selection • Managed by companies – Meetings in companies – Tests – Personal assignments – Group works • First 25 got into the program CHALLENGE 3: MATCH COMPANIES AND COACHES Matching with coaches • 10 coaches • 25 companies + 25 new export sales managers • Speed date 5 minutes meetings • combination based on their preferences LESSONS LEARNED Key success factors • Media support created an image of VIP (Very Important Program). Meaningful name and “mission impossible” were well understood! • Extreme speed of recruitment sorted out the most motivated from both sides • Sense of competition increased speed of decision making • Daily internal communication with all participants • Passionate participants: companies, candidates, mentors, Marketingi Instituut, ITM Worldwide and Enterprise Estonia Key learning points • • • • Motivation, motivation, motivation! Graduates’ the CV-s do not show their potential Program was not for unemployed Innovative recruitment strategy sets extremely high expectations to innovative training methods 6 months later • 1 company quitted, 1 export manager quitted, 1 change of coach • All the others are very happy! • Export is increasingly popular among small and micro companies! Thank you! Questions? Top 6 export and import countries Finland Exports 17,0% Imports 14,9% Sweden 15,6% 10,9% Russia 9,7% 8,3% Latvia 9,0% 10,9% Germany 5,2% 11,3% Lithuania 4,9% 7,7% Export Import Machinery and appliances 22,6% 23,5% Mineral products 15,7% 17,5% Wood and articles of wood 9,1% 2,8% Base metals and articles of metals 9,1% 10% Misc. manufactured articles 7,6% Transport equipment 6,5% 7,1% Chemical products 4,5% 8% Food products 4,0% 6,3% Live animals, animal products 3,7% Textiles and textile articles 3,6% 5% Plastics and rubber 3,2% 5,6% Paper and paperboard; printed materials 3,2% Other 7,2% 14,2% Industrial Production