Executive Development in Portugal: Why Local Companies Are Falling Behind

Key Takeaway: Over 60% of Portuguese companies cite leadership capability gaps as a key obstacle to growth (Eurostat) — yet 62% of Portuguese organisations increased their leadership development investment in 2022–2023 (Randstad). The investment is growing. The structure is not keeping pace. Portugal’s executive development gap is not a resource problem — it is a methodology problem.

Last updated: August 13, 2026

In Portugal’s fast-changing economy, building future-ready executives is no longer optional. According to Eurostat, over 60% of Portuguese companies cite leadership capability gaps as a key obstacle to growth — especially in sectors like technology, industry, and energy. As Lisbon, Porto, and other regions attract increasing foreign investment, organisations are recognising the urgent need to prepare managers capable of leading expansion. Yet many still lack structured strategies to develop their senior teams effectively.

Key Figures at a Glance

Data point Figure Source
Portuguese companies citing leadership capability gaps as an obstacle to growth 60%+ Eurostat
Portuguese organisations that increased leadership development investment (2022–2023) 62% Randstad Portugal
Portugal corporate training and executive development market size >USD 1.2 billion Ken Research
Multinational companies with operations in Portugal +2,700 — creating demand for internationally capable executive leadership AICEP Portugal Global

Why Structured Leadership Development Still Lags in Portugal

Compared to other European markets, many Portuguese firms rely on informal learning to prepare future executives. Structured management training programmes, coaching, and assessments are often missing — limiting companies’ ability to build competitive leadership pipelines.

The paradox is that investment is growing: 62% of Portuguese organisations increased their leadership development investment in 2022–2023 (Randstad). But investment without structure produces activity rather than capability. Sending managers on programmes that do not connect to their specific development needs, their next role requirements, or their organisation’s strategic context generates training hours without leadership readiness.

Portugal’s corporate training market is valued at over USD 1.2 billion — but the majority of that investment is concentrated in generic skill programmes rather than structured executive development anchored to specific leadership transitions. The result is that 60%+ of Portuguese companies still cite leadership capability gaps as an obstacle to growth, even as they increase investment. The problem is not the budget. It is the design principle: investment in content when the real need is investment in readiness for the next role.

The Risks of Promoting Technical Experts into Executive Roles

Portuguese companies frequently promote operational specialists into management positions without providing training in strategic thinking or people management. This limits their ability to lead teams effectively and slows organisational growth.

The technical expert who is promoted into an executive role without structured transition support does not fail because they lack capability. They fail because the capabilities that made them excellent in the previous role — deep functional expertise, individual problem-solving, technical precision — are not the capabilities that determine success in the new one. No amount of functional competency compensates for the absence of strategic thinking, stakeholder management, and leadership under ambiguity.

Cultural Barriers to Building Strong Leaders in Portugal

In many Portuguese firms, leadership is viewed as something learned through experience. Formal feedback processes and structured skill-building remain rare — particularly outside Lisbon and Porto. Soft skills like communication and adaptability are often overlooked in favour of technical competency and institutional seniority.

This cultural model produces leaders who are experienced but rarely self-aware about the specific dimensions of their leadership that limit their effectiveness at the next level.

Generational Expectations Are Changing Talent Development in Portugal

A new generation of professionals in Portugal is reshaping expectations around career development. Millennials and Gen Z employees increasingly prioritise companies that offer structured growth opportunities, ongoing coaching, and transparent career pathways. They view professional development not as a privilege for a few, but as a standard part of employment.

Many Portuguese firms continue to rely on informal, unstructured development models that fail to engage younger talent. Without clear progression frameworks and investment in skill-building, high-potential employees are likely to seek opportunities elsewhere — often with the 2,700+ multinationals operating in Portugal that offer more formalised leadership development programmes.

To attract and retain this next generation of leaders, companies in Portugal must rethink how they approach executive development, embedding coaching and structured advancement into their talent strategies.

The retention dynamic in Portugal is changing faster than the development infrastructure. Younger executives who have built their early careers alongside the multinational influx — in shared services centres, in startups, in technology companies — have a reference point for what structured development looks like. When they move to a Portuguese domestic company that offers tenure-based advancement and informal mentoring, they are not comparing like with like. They are measuring against a benchmark that most Portuguese domestic companies are not yet meeting. The firms that close that gap fastest will have a structural retention advantage — not because they pay more, but because they invest in development with the same rigour that multinationals do.

What Portuguese Companies Can Do to Build Stronger Leadership Teams

Forward-thinking businesses in Portugal are:

  • Implementing management training and structured executive programmes anchored to specific role transitions rather than generic competency frameworks.
  • Using leadership assessments to identify the specific capability gaps between current performance and next-role readiness.
  • Offering executive coaching to help managers transition into strategic roles — with the coaching agenda defined by assessment results, not self-reported development priorities.
  • Aligning skill-building with retention strategies — so that development investment is visible, structured, and communicated as part of the organisation’s commitment to career growth.

These actions help create resilient management teams ready to lead future growth — and to retain the high-potential talent that will either be developed internally or recruited externally by a competitor.

Zavala Civitas executive development methodology for Portugal

Executive Development in Portugal — The Strategic Imperative

Executive development is no longer optional for companies aiming to compete locally and globally. In a market with 2,700+ multinationals setting the development benchmark and a generation of professionals who will choose their employer partly on development quality, the Portuguese companies that build structured executive development programmes now are building a competitive advantage that compounds over time.

Contact us today to design a structured management development strategy tailored to your organisation’s needs.

Frequently Asked Questions: Executive Development in Portugal

Why do 60% of Portuguese companies cite leadership capability gaps despite increasing investment in development?
Because the investment is concentrated in generic skill programmes rather than structured development anchored to specific leadership transitions. Sending managers on training programmes that do not connect to their next role requirements or their organisation’s strategic context generates training hours without leadership readiness. The problem is not the budget — it is the design principle: investment in content when the need is investment in readiness for the next role.
Why is promoting technical experts into executive roles without development support so common in Portugal?
Because in Portugal’s experience-first leadership culture, the assumption is that operational excellence is evidence of leadership potential — and that the transition will happen naturally through experience in the new role. But the capabilities that made someone excellent as a technical expert — individual problem-solving, functional precision, deep expertise — are not the capabilities that determine success at the executive level. The transition requires specific development investment, not just time in the role.
How is the multinational influx changing the executive development benchmark in Portugal?
By creating a generation of Portuguese professionals who have experienced structured development — coaching, assessments, feedback cultures, clear career frameworks — as part of their early careers. When those professionals move to domestic Portuguese companies, they are not just comparing salaries. They are measuring development quality against a benchmark that most domestic companies are not yet meeting. The firms that close that gap will have a structural retention advantage.
What is the most common executive development mistake in Portuguese companies?
Treating development as a reward for performance rather than a preparation for the next role. When high-performing managers are sent on executive programmes as recognition for their current-role success, the development content is not calibrated to the specific gaps between where they are and where they are going. The result is that the organisation invests in development without building the specific readiness the succession plan requires.
How does Zavala Civitas approach executive development in Portugal?
Through structured assessment of the gap between current performance and next-role readiness, development planning anchored to the specific mandate the executive is preparing for, executive coaching with an agenda defined by assessment results rather than self-reported priorities, and milestone tracking at quarterly intervals rather than annual review cycles. The process is designed to produce measurable readiness, not just programme completion.

Building a structured executive development programme in Portugal?

Zavala Civitas designs assessment-anchored development programmes for Portuguese companies and multinationals in Portugal.

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