In Portugal, the market is relatively small, executive mobility is limited, and reputations travel quickly. Many companies already have solid senior leaders in place.It’s not about whether these leaders are competent. The question is how to assist them in improving performance as they take on greater roles.
Most people have an area that they can improve on, and with the right programs that can be developed. These programs are commonly being incorporated and implemented in organizations because they have the ability to show the areas in which an executive can improve before choosing to lose that employee and hire someone new.
The main purpose of the assessments is to see what level of support is needed to help leaders be more effective and at what level of seniority the support is needed. They look at how a leader thinks and where decision-making becomes difficult for them. They examine personal motivation and obstacles, which enables individuals to overcome growth barriers.
The boundaries of senior level experience
A common pitfall in leadership choices is the tendency to place too much weight on experience. In Portugal, many senior executives have comparably aligned career trajectories. They have frequently been in the same industries, in the same kinds of organizations, and even within overlapping networks. This can create the illusion of depth, even when exposure is limited.
According to McKinsey research on leadership effectiveness, past experience alone is a weak predictor of future performance in complex or changing roles. What matters more is judgment, learning agility, and the ability to adapt when context shifts.
Executive assessment helps distinguish between repeated experience and genuine leadership capability.
Executive Development and Assessment in Portugal: What companies actually assess today
Assessment at senior level has evolved well beyond competency checklists.
In Portugal, effective executive assessment tends to focus on a smaller number of practical questions:
- How does this leader make decisions under pressure?
- How do they handle ambiguity and limited information?
- Can they influence peers and stakeholders without relying on hierarchy?
- Are they equipped to grow with the role over time?
Harvard Business Review states that senior leaders more frequently derail because of behavioral blind spots and decision making patterns rather than due to technical gaps. This is especially pertinent in the markets where leaders tend to stay in the role for extended durations.
Development as a retention tool
Retention is one of the least discussed leadership risks in Portugal.
According to Eurostat labor mobility data, while overall executive mobility remains lower than in larger European economies, internationally exposed senior leaders are increasingly open to opportunities abroad when they feel professionally stalled.
For many organizations, executive development has become a way to:
- signal long-term commitment
- offer progression without immediate role changes
- reduce the perceived career ceiling in a small market
Well-designed development programs help senior leaders see a future inside the organization, rather than outside it.
Internal succession versus external benchmarking
Portugal’s leadership market forces companies to think carefully about succession.
Promoting internally feels safer and faster, but it carries risk if readiness is assumed rather than assessed. External hiring can bring perspective, but also creates integration and retention challenges.
According to BCG research on leadership transitions, organizations that combine internal assessment with external benchmarking make more robust succession decisions than those that rely on instinct or tenure.
In practice, executive assessment allows companies to decide whether development, role redesign, or external search is the most sensible path.
Common mistakes companies make:
Several patterns appear repeatedly in senior leadership decisions:
- Using generic assessment tools designed for larger markets
- Treating development as training rather than behavioral change
- Separating assessment from real business challenges
- Delaying assessment until performance issues become visible
According to INSEAD research on executive development, development efforts are most effective when they are closely tied to the leader’s actual mandate and organizational context.
Executive Development and Assessment in Portugal: When assessment becomes a strategic lever
Executive assessment tends to deliver the most value during moments of change.
These include:
- leadership succession planning
- private equity entry or exit
- founder transitions
- regional or international expansion
- governance restructuring
According to Gartner research on leadership risk, organizations that assess leadership readiness before major transitions significantly reduce disruption and early executive turnover.
In Portugal, where leadership changes tend to have long-term impact, this proactive approach is particularly relevant.
Executive Development and Assessment in Portugal: A long-term perspective
These tools are not about fixing weaknesses. It is about ensuring that senior leaders can continue to perform as roles evolve.
In small leadership markets, the cost of getting this wrong is high. Executive Development and Assessment in Portugal has therefore become less about potential and more about sustained effectiveness over time.
