search-consult Issue 11

2002 / ISSUE 11

The International Executive Search Magazine

Interim Management

Alain Tanugi

Search in China, Hong Kong and Singapore

20 Years of TRANSEARCH International

INTERVIEW

INTERVIEW

The Future of Search

INTERVIEW

FEATURE

COMING UP IN FUTURE ISSUES:

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Paul Reilly, Chairman & CEO, Korn/Ferry

Dayton Ogden, Chairman, Spencer Stuart

Ulrich Dade, Chairman, AmropHever Group

War for Talent 2: Update from McKinsey

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search-consult MANAGING DIRECTOR Jason Starr jason@search-consult.com EDITORIAL Barbara Kwateng Pilar Gumucio editorial@search-consult.com PRODUCTION Margaret Jaouadi margaret@search-consult.com

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search-consult is published 10 times a year by Dillistone Systems Ltd, Calvert House, 5 Calvert Avenue, London, E2 7JP, United Kingdom and printed by Printhouse Corporation, London NW10 6ST, www.printhouse.co.uk. All statements, opinions, and expressions are the sole responsibility of the authors and the Publishers reserve the right to amend / alter articles as necessary. The Publishers cannot be held responsible for any loss or damage, however caused, of any materials supplied. Any materials supplied may not always be returned. No part of this publication may be reproduced in any format without prior written consent of the Publishers.

Front Cover: Alain Tanugi, CEO, TRANSEARCH International. Photography courtesy of TRANSEARCH International. Š Copyright 2002 Dillistone Systems Ltd

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Ray & Berndtson acquisition www.search-consult.com

NEWS

RAY & BERNDTSON ANNOUNCES THE firm's plans to acquire Rhodes Associates, an executive search and management consulting firm specializing in real estate and financial services. At the time of our publication, both firms had signed a letter of intent.

Rhodes Associates, a New York based executive search firm founded in 1968, is considered among the top American search firms in finance and real estate.

Ray & Berndtson is among the top ten global international executive search firms, specializing in recruiting services for high-level executives. Ray & Berndtson, founded in 1965, currently holds 48 offices in 31 countries and on 5 continents.

The eventual acquisition of Rhodes Associates will permit Ray & Berndtson to expand its financial services practice

in all sectors of real estate, as well as investment banking, fixed income and equity capital markets, and investment management.

Twenty members of the firm will be joining Ray & Berndtson, including Managing Partner Steven Littman and Partners Jane Lyons, Dominic Castriota, Kerry Allison-Gaines, Wendy Weiler, Scott Coff, Joan Zimmerman, and Thomas Cleary.

"We are pleased by the high caliber of people who are joining our firm," said Ray & Berndtson Chairman and CEO, Paul Ray Jr. "Their experience and proven capabilities will further strengthen our financial services and real estate practice. Additionally, this acquisition will establish New York as our largest office, and will enhance the relationship between our US practice with our UK, European, and other global practices."

Horton and Leaders Trust join forces www.search-consult.com

NEWS

EXECUTIVE SEARCH FIRMS Horton International and Leaders Trust International have merged forces to create a combined trans-Atlantic search firm under the Leaders Trust International brand name.

The co-chairs of the firm will be Michael Boxberger and Philippe Bouvard.

Mr. Boxberger had been President and CEO of Horton and former CEO of

Korn/Ferry. Bouvard had been Chairman of Leaders Trust and had been one of the founding partners of Egon Zehnder.

Horton, founded in 1978, and Leaders Trust, founded in 1984, were reputable search firms in their own right. Each benefited from strong, but regional, positions. The objective of the new merger has been to combine resources, merge industry expertise and expand their international presence to help better service their clients.

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Heidrick & Struggles expands its interim executive placement service to North America www.search-consult.com

NEWS

HEIDRICK & STRUGGLES EXPANDS its interim executive placement service to North America. The service will help current and prospective clients to identify and attract worldclass leadership on an interim basis.

Built upon the success of Heidrick & Struggles' existing "Protem" service in Europe and Australia, Heidrick & Struggles Interim complements the company's core executive search business and represents the next step in Heidrick & Struggles' plan to provide integrated high-level leadership consulting services to clients around the world.

Rick Troberman, Managing Partner for Heidrick & Struggles Interim states that, "Our clients, now more than ever, have been requesting this kind of help based on what they are confronted with in the current market."

K/F, H&S Offer Coaching www.search-consult.com

NEWS

KORN/FERRY INTERNATIONAL unveiled its executive coaching service as part of the firm's Management Assessment service through an affiliation with Dr. Marti Smye.

Paul C. Reilly, CEO of Korn/Ferry, claims that “organizations can now turn to ‘Korn/Ferry’ to fulfill this need in addition to the other high-quality executive human capital solutions they look to Korn/Ferry to deliver”.

Wes Richards, the firm's Senior MP, hopes to expand the firm's "offerings to help our clients build the best leadership teams in the world".

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CLASH OF THE TITANS? DISPUTE BETWEEN TMP & KORN/FERRY www.search-consult.com

NEWS

KORN / FE RRY I NTE RNATIONAL and TMP Worldwide have entered into a dispute over the employment of two of its employees.

At the end of February, the TMP Executive Search announced that it had hired James M. Bethman as the Global Technology Sector Leader and Partner in Dallas. Jeremy C. Hanson was appointed Managing Partner and head of the division's Minneapolis office. Until then, they had been senior executives for Korn/Ferry International.

A few days later, attorneys representing Korn/ Ferry sent a letter to TMP Worldwide. The letter threatened a lawsuit unless TMP Worldwide immediately withdrew its offers of employment to these executives and immediately ceased the recruiting of any, and all Korn/Ferry employees.

According to Daniel Margolis, Korn/Ferry's Director of Marketing Communications for the Americas, the "two employees joined TMP in violation of their employment agreements with Korn/Ferry and (TM P) announced their appointment before we received any official resignation. We had no intention of making this a public dispute, but TMP has seen fit to issue two press releases on the subject. We will not tolerate any competitors interference with our employment relationships and ability to serve clients and protect our brand."

John Mclaughlin, Group President of the Americas for TM P Worldwide, stated "We find

Korn/ Ferry's objections to our recent hiring of James M. Bethmann and Jeremy C. Hanson to be legally baseless and without merit. Korn/Ferry is clearly upset that two of their top performers have decided to join TM P Worldwide. The truth of the matter is that these executives called us."

Mr. Mclaughlin added, "We find it especially ironic and troubling that, without any evidence of wrongdoing by TMP, Korn/Ferry sees fit to condemn and threaten us over actions that fundamentally define the executive search business in which they operate.

The bottom line is that TMP is the firm with a vision for the future of executive recruitment and that is attracting the industry's top talent.

Korn/Ferry should recognize that such moves can be accomplished without violation of any laws or enforceable contractual restrictions.

Contrary to the assertion of Korn/Ferry's counsel, TM P has hired these two key individuals in a lawful and legitimate manner and has not and will not induce them to breach any of their valid obligations to Korn/Ferry.

Obviously, Korn Ferry differs.

Moreover, Daniel Margolis said "TM P is attempting to gain visibility from the strength Korn/Ferry has built among senior executives by continuing to make this dispute into a public issue.

Almost every week, we receive inquiries from TMP people as well as consultants from competitor firms, but we do not announce them."

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Whitney, Bennett & mainland China www.search-consult.com

NEWS

BOTH THE WHITNEY GROUP AND Bennett Associates have announced moves into mainland China.

As we go to press, the Whitney Group has signed a letter of intent to form a joint venture with Shanghai ChengDa Executive Recruiting. The new entity will eventually be named Whitney ChengDa.

Meanwhile, Bennett Associates have announced an affiliation with EPC Consulting Ltd, a PRC human resource consultancy, in Beijing and Guangzhou, China.

Bennett Associates currently holds offices in Hong Kong, Kuala Lumpur and Sydney as the new alliance will strengthen the firm's business development and customer service in the Greater China region.

EPC Consulting is a relatively new firm.

Yet the company's Managing Director and Chief Representative for China, Ms. Vicky Wong, has over 8 years experience in

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international executive search as Search Director with Boyden Intenational.

Ms. Wong has more than 20 years commercial experience with multinational companies in Asia and has accumulated more than 12 years experience of working with China.

"My partner Simon Chiu and I have been recruiting senior executives in the PRC since the mid 1980's. With Vicky Wong's expertise and network in the PRC and the support of our team in Hong Kong, we can now provide additional value to our international clientele" said Peter Bennett, the firm's Managing Director.

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TRANSEARCH International:

20 years of SearchEuropean Style

By Jason Starr The management of an international search group is a complex affair. For Alain Tanugi, Chief Executive of TRANSEARCH International, the role has an extra layer of complexity. TRANSEARCH International is a hybrid business, made up of controlled offices, franchises and affiliates. Some of the franchises are partially owned by the parent; many are not. In an exclusive interview with search-consult, Alain Tanugi discusses his views on company growth and the diverse nature of the business. n April 1982 TRANSEARCH International was founded as a loose affiliation. The late 90's saw the firm move towards a more integrated organisation. Today, TRANSEARCH has around 150 Consultants, spread across 54 offices - nine of which (in North America and in Asia) are affiliates. The year has started with 20 new consultants being added, 3 new offices, and TRANSEARCH now occupying the number 12 position in the international rankings. This makes TRANSEARCH one of the few firms to be growing in the current environment. Despite this, the firm is considerably smaller than it was at its peak - in 1998, the business was represented in 68 cities.

"Most of our competitors bottomed out in 2001 because of the shrinking market. Of course, we experienced this as well but, in our case, much of the fall is due to a

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Alain Tanugi difference of opinion in what an international search firm should be. The new TRANSEARCH is different and has different requirements from its people."

This "new TRANSEARCH" is the result of a process that began formally with a decision taken at an annual conference three years ago. With the objective of developing a more integrated business, sixty-two partners voted to create a plc as a vehicle for taking equity stakes in both established and to-becreated offices. Partners in the local office would be entitled to a stake in the new holding company if they gave up control, or at least a slice, of their own business.

Of course, not all the firms that were part of the TRANSEARCH group were prepared to take this step, and a number left. Tanugi argues that this process developed a smaller but stronger business.

The need to tighten relationships between offices was, in part, a reflection of the search industry in the late 90s. A series of IPO's decimated a number of the networks and the feeling within TRANSEARCH was that tighter integration was necessary to survive. It was also felt that increased integration could "‌create value at global level, attract consulting talent, and help with the acquisition of major accounts".

Today however, while the environment is very different, the desire to build a business around "the mutual interest" remains.

Tanugi and his team have identified what they believe to be the "ideal" profile for a TRANSEARCH consultant and have put in place plans that, they believe, will help attract and retain this type of individual and to encourage them to "teamwork" for the good of the organization.

"TRANSEARCH International is not a business built around rainmakers. The types of consultants that we tend to hire are solid, steady and consistent billers working at a high level. Rainmakers can be, sometimes, difficult and individualistic. Our consultants get on well with each other. They give and receive mutual support and that helps them and their clients. These are the people that

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we want, and the behavior that we wish to reward."

Tanugi realises that a big part of the policy to attract and retain such individuals is the group's compensation strategy. A new compensation plan was launched as an experiment in the flagship office in Paris.

Since 2001, consultants have received between 40%-60% of their total compensation through a bonus scheme.

Nothing unusual in this, perhaps, but, unlike many such schemes, the bonus value is based on the performance of the local team, whereas the distribution reflects the collective as well as individual performance based on a number of measurements.

"The best performers this year, may not be the same next year. The system helps to blur the differences. The pot is based on the performance of the office as a whole. It is distributed to individuals based on a number of distinct performance criteria, both qualitative and quantitative."

"The qualitative criteria are used to encourage certain behavioral traits. These criteria will vary from consultant to consultant and by year. For example, a consultant who is too focused on domestic search may be set a target relating to the origination of business for overseas colleagues. Another example is when a consultant works mainly with smaller clients through the year; he will be expected to gain at least one big client the next. If these targets are achieved, the business will be more successful and the consultant will be better rewarded. Typically, a consultant will have a up to 3 qualitative targets per year."

"Consultants thrive in such an environment of mutual support. We do take steps, however, to ensure that none of our exceptional performers lose out through this approach. If we see the same individual top the performance table for three successive years, we will offer him an additional bonus."

Another perceived benefit of the system according to Tanugi: "Under this model, many of the participating consultants are able to take partnership positions within the business, enabling them to share in the success of the group. They are encouraged to focus on the success of the whole, and are

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then invited to enjoy the fruits of their and others' labour."

The complex nature of the TRANSEARCH business means that this compensation plan is not yet universal; however, it has been successful in the Paris office and Tanugi believes that the scheme could be progressively rolled out into further offices.

Recruiting, motivating and retaining search talent is, Tanugi believes, the most important part of his role for the coming years.

"It's the area that I already spend a substantial amount of my time on. I am convinced that search firms do not pay enough attention to developing internal human capital. In the long run it will be detrimental to the success and growth of any business. The "War for Talent" applies now more than ever to our own industry, as

“.... Being originally a European search firm,

encourages the unique culture that we foster...� search firms scramble to define what talented contributions mean to them in the long run. " He believes that the "collaborative" culture which has started to develop within the firm, is enabling him to attract consultants who are excellent search professionals, but not necessarily confirmed 'stars' yet. As a case in point, he names Marc-Antoine Tschopp, a January recruit to the Geneva office.

Tschopp boasts a background that includes time at McKinsey and at Spencer Stuart.

"We are not just going after the 'big names'. We want people with the right profile, people who will improve our business and do excellent work for our clients. We will pay them well, but if money is the main motivation, TRANSEARCH may not be the right search firm for them. If they are real team players and want to be part of building a solid business in the long run, TRANSEARCH is the right opportunity."

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So what is the right profile? What makes a TRANSEARCH consultant?

"The most fundamental requirement is that the consultant is passionate about client focus and about delivery. This stems from his or her background - there are certain organizations, both within and beyond the search industry, where the culture is such that these people thrive. We tend to recruit from these firms."

"The market is tight, right now, and we are taking few risks. Therefore, we are mostly hiring proven consultants with a track record in executive search. In the longer term, however, we tend to bring people into the industry - people who we can train internally. A recent example of that is Regina Bisikiewicz in our Warsaw office.

She has a wide entrepreneurial background having founded and co-owned the Polish subsidiary of a major Scandinavian software company. She had the right cultural background and, with that, we can teach search techniques. We will always aim to take good people from within the industry but, long term, I expect the larger proportion of new recruits will come from outside."

When consultants are new to the industry, it is important that they receive the right support.

TRANSEARCH regularly runs seminars for partners, consultants and associates. Typical of this was the global Researchers' Conference held in Brussels late in 2001. Over the course of three days, researchers from as far a field as Brazil met to discuss research techniques, to optimize information sharing, and to take part in team building exercises. The business also maintains a global Intranet (incorporating a Knowledge Management System) and audits offices to ensure that procedures are adhered to. Furthermore it is currently compiling a comprehensive induction program for new consultants and researchers joining.

"I firmly believe that the future growth of our organisation depends on the successful transfer of knowledge and skills. We are determined to create forums to enable human capital development, we thus invest heavily in our people."

The compensation, recruitment and training strategies are all designed to

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reinforce a culture, which, Tanugi believes, will give TRANSEARCH a competitive edge.

"Being by origin a European search firm encourages the unique culture that we foster. This is a strength for us. We have a strong presence in Latin America, a growing presence in Asia, and some excellent affiliates in North America but, fundamentally, we are a European company.

Our style is certainly distinctive."

Tanugi believes that this European ethos may give the firm a competitive advantage in many of the emerging markets. He thinks that ,in countries such as Brazil and China(which will definitely become a major market for search ), European firms may sometimes be regarded more positively than are the US firms.

"It's a reflection of cultural perceptions. I believe that the Europeans are perceived differently to the Americans. In some markets, that will work for us."

"I do believe that the European way of doing search is different to the US model. Of course, our client retains us and our client comes first. We believe, however, that we have a duty to our client not just to make a placement but to put in place an executive who will have a positive long-term effect on our client. For that to happen, we need to create a win-win scenario. Our consultants are trained to consider carefully the needs of both parties. Of course, there is also the 'cycle of search': Today's candidate is tomorrow's client!"

Cultural differences are partially the reason behind the fact that TRANSEARCH still only has affiliates in the US. Tanugi admits to an unsuccessful attempt to acquire a US business in 2001. The likelihood is that when a fully-fledged TRANSEARCH office is opened in the US, it will be done through organic growth.

"We have excellent affiliates in North America and we want to keep them within our organisation; they are perfectly aware of our strategy for the region :We plan to open an office ourselves, probably in New York.

The primary differentiator for this office will be that it will not only focus on local business but will serve as a talent portal for US corporate clients growing operations outside of North America - we will give

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clients an alternative to using the big US firms for searches in other parts of the world."

The opening of the New York office had been pencilled in for May 2002 but has been postponed whilst the group focuses on issues closer to home. Last year, the firm acquired UK property specialist Thomas Cole Kinder and Tanugi believes that TRANSEARCH will continue to strengthen in Europe over the next few months.

"Holland is currently the only western European country in which we have no presence. We are in Greece, in Ireland, in Luxemburg‌ we are all over Europe except Holland. We aim to resolve that situation. I can also see us taking major steps to further strengthen in our core markets."

Tanugi believes that TRANSEARCH will continue to grow. However, he does believe that there is an ideal size for a global search business.

"I doubt that we would grow much above 200 executive search consultants globally. If you become too large, you have problems, you become more vulnerable to economic pressures, as well as having to deal with major off limits complexities. For the past 3 years we have focused on quality as opposed to quantity & our motto has been: Not the biggest, but the best!."

Normally, a remark like this is followed by criticism of the larger firms. In fact, Tanugi does not take that view. He is not against acquisitions, nor against going public.

Indeed, he has respect for the management of the public firms.

"There is a real shortage of good managers within the executive search industry. The fact is that even Korn/Ferry, the largest firm in the industry, had to look outside for a new CEO. However, what I do like about Korn/Ferry and Heidrick & Struggles is that they are willing to try something different. You should not be afraid to try and possibly fail."

"I acknowledge the fact that people like Piers Marmion (CEO, Heidrick & Struggles) and Paul Reilly (CEO, Korn/Ferry) are trying to broaden the focus and offer a full range of Human Capital Management services. It is very easy in this industry to sit back and ignore change. I respect those that do

not do that."

Tanugi sees further a future where the search professional provides a more consultative role - "Too often, the client is given the 'last acceptable candidate standing'. Our role should be to find the very best and ensure that they are integrated successfully into the client." However, he believes that the model under which search firms are compensated does not always allow this.

"If we can put in place an executive who will take the value of a business from $ 4 Billion to $ 6 Billion over, let's say, 3 years, then how much is our contribution worth? Many clients feel that one third of the total cash compensation package is too high as a fee ;they may be right if we are essentially doing a limited amount of consulting & mostly a transactional job. I believe that the business model of search will progressively change. The consultant should continue to work with the client beyond the placement. A good placement can turn sour if the integration is not right many clients are honest enough to admit that they are not good at this part of the process. I believe that there is a better model for the search business; one where the consultant will only work on perhaps 68 assignments but will take a "hands on" role, at least throughout the first year. Under this model the fee will need to be higher this model would require highly skilled consultants - people who would not be motivated by reduced annual earnings - but even then it would still be a small price to pay for the process that is indirectly responsible for the future growth and development of the client. Maybe the fee structure should reflect the longer-term performance of the placed candidate. Of course, this will need to be a lot of educating of the client for this to happen. Essentially, we would be offering genuinely strategic consultative services rather than just a traditional placement. I'm not sure that it's for my generation."

www.search-consult.com

For more information, go to: Web: www.transearch.com

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Taking Care of Sailors Lessons for retaining talent and HR executive survival

By Frank Sharp few years ago, our summer vacation on the Outer Banks of North Carolina gave us the unexpected chance to attend a Change of Command Ceremony at Naval Station Norfolk, the shore base that supports the U.S. Navy's Atlantic Fleet.

Addressing the assembled naval officers, enlisted personnel and guests just before handing over command to his replacement, our old friend Captain John Petrie talked about his mission statement for the Base under his leadership: "We take care of sailors".

Reflecting on his two years at Norfolk, John faced a mix of operational challenges that private sector executives face: cost reduction, outsourcing, supply chain optimization, and quality. A military base is also a city within a city, and as Commanding Officer, John also had the role of City Manager, providing services to 65,000 residents on the base. Still, John focused everyone in his command on a simple, overriding theme: "We take care of sailors".

Fast forward to a few weeks ago. Over after-dinner coffee at our home in Zurich, I asked my friend Bill why he had decided to decline an early retirement program that would have added five years of age and service to his pension multiplier. Bill exploded into a tirade about how he could not find anyone in HR in Europe or the US who could help him assemble all the numbers he needed to fully understand the financial impact of the early retirement offer.

He gave up and let the offer expire. Steve jumped in with his latest experience with unresponsive HR Administrators who do not return phone calls or answer his e-mails, then tell him how he has violated policy by the actions he finally took on his own. The conversation took on a "can you top this?" character as Bill and Steve swapped their

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HR horror stories.

Since they both know that I was a big company HR guy before I moved into consulting in the mid-nineties, they proceeded to paint me with the same brush.

"You HR people want a seat at the strategic table, and you can't even move me from Zurich to Paris without screwing up my paycheck for six months! What's worse, you don't acknowledge my e- mail or return my calls!"

“.... You HR people want a seat at the strategic table,

and you cannot even move me from Zurich to Paris without screwing up my paycheck for six months!”

Ouch! Even though their companies are not my clients and I've been out of corporate HR roles for eight years, I felt myself under personal attack. I also felt hugely dispirited about their perceptions of my profession. I really thought we had left all this behind somewhere in the early seventies. Where, in all of this, is the spirit of "We take care of sailors"?

Their stories resonate with three disturbing themes. HR Services staff ● Lack responsiveness, sense of urgency. ● Lack competence to resolve complex issues. ● See themselves as the "policy police" out to catch employees breaking the rules.

Why worry about Bill and Steve? It's pretty simple, really. These two are quality

people, "A" players in their respective companies. As successful international executives with pan-European responsibilities in their respective Fortune 50 US companies, they are attractive target candidates for global roles in their respective disciplines, Supply Chain Management and IT. Their intense dissatisfaction with HR support services increases their vulnerability to overtures from executive search consultants.

Poor HR Service is deadly to the overall image of HR competence, since Steve and Bill transfer their experience-based perceptions about HR service delivery to all aspects of HR. They both go out of their way to avoid contact with "the damned HR Department" in its entirety. Moreover, as respected "A" players, it's likely that their perceptions about HR competence and contribution are widely shared in their management teams. Since people generally act on their perceptions, I would expect the European HR Directors of these two companies are also ignored and avoided, not really in the game.

HR executives of big companies need to do a personal reality check from time. As you travel around the company, tap into the Steve's and Bills and see how your people are doing. "Taking care of sailors" is fundamental to taking care of yourself.

Frank Sharp is Managing Director, Horton International in Zurich. Frank helps companies with global leadership development and executive search. Earlier, he was an HR executive with Exxon and ABB.

www.search-consult.com

For more information, contact: Email: sharp@horton-intl.com

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The Tigers and the Giant:

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Asia-Pacific sia-Pacific is reputable for its discoveries, wisdom and resilience. Today, as the fastest growing region in the world, Asia Pacific continues to draw attention. In fact, the People's Republic of China (PRC), Hong Kong and Singapore exemplify the region's dynamics, each offering unique challenges and enormous opportunities for businesses and search firms.

Over the past 20 years, China has been transforming itself from a centrally planned economy to more of a marketoriented system. Production has quadrupled and it now has the world's 2nd largest GDP. China's economy has been growing faster than any other over the past 6 years but, in stark contrast to other emerging markets, this growth is generated to a large extent by its domestic demand. With a population of 1.3 billion, China offers a potentially lucrative market for goods and services.

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At the same time, China is also attracting many firms to open up operations since land, labor and other facility costs are much lower.

China's fast growing economy, the impact of China's recent entry to the WTO (World Trade Organization) and

“.... Hong Kong search firms have been filing executive positions in China for multinational companies

since the 1980s.� hosting the 2008 Olympics, have generated further economic development, an increase in productivity and a high level of foreign and local competition.

Nevertheless, these developments require structural reforms

By Pilar Gumucio and complex challenges. The Chinese Government has committed itself to continue its efforts to opening the economy, deregulate services, and scrap unnecessary regulations in order to create a more suitable pro-business environment. In order to do so, Beijing must combat fragmented power politics, corruption, as well as create and enforce a transparent legal framework. It is a time of enormous changes, but companies are betting that the rewards will be worth it.

Hong Kong, on the other hand, is an established regional gateway. Today the Wall Street Journal Annual Index considers Hong Kong as the "world's freest economy". It is highly dependent on international trade and investment.

Hong Kong is especially key as an intermediary for business, in and out of China.

This city's economy is structured around its service sector - accounting for

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virtually 90% of its output - especially as an international finance center.

Hundreds of multinationals have set up their regional headquarters in Hong Kong. Its strategic advantages are: its close proximity to major markets, worldclass communications, a transparent regulatory system, well developed infrastructure, local quality management and a network of financial and professional service firms.

Singapore is also considered a regional hub. It is one of the world's most prosperous economies with strong international trading links and with per capita GDP above the leading economies of Western Europe. Singapore's economy is driven by its exports and service sectors. Manufacturing, of which electronic products account for over half of output, is vital for its economy. At the same time, this Asian economic tiger is strongly investing in its finance, high tech and healthcare sectors as it hopes to be considered a gateway in these sectors as well.

Singapore's success is a product of number of factors: political and economic stability, strategic location, pro-business governments, a transparent regulatory framework, world-class communications, first-rate infrastructure and very qualified local management.

Hundreds of multinationals and many large local firms have established their regional headquarters in this city-state. Many are using it as a home base to tap into nearby emerging ASEAN (Association of South East Asian Nations) economies, some to expand to Mainland China and yet others to extend to areas outside of this region.

IN SEARCH OF ROOTS Executive search began in 1975 with Boyden opening its office in Hong Kong, and thus becoming the first executive search firm in Asia. Norman Broadbent, Spencer Stuart, Russell Reynolds, and Korn/Ferry soon followed suit.

Like the rest of the world, executive search in Asia mirrored the economic

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development of this region. During the 1970s, Hong Kong was a manufacturing base as assignments in retail and manufacturing were important.

Financial and professional services also showed steady growth. In the late1980s and early 1990s Hong Kong's competitive edge began to erode as many manufacturing operations transferred to Mainland China. By mid 1990s, the economic structure was clearly service oriented. Therefore, executive search primarily focused on financial, consumer, high-tech, and professional services.

According to Bob Gattie, Managing Director of the Amrop Hever Group in Singapore, "when global search firms

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Alistair Sutherland - TMP Worldwide

with the entry of established search firms - replacing the "old boys network" system commonly used in recruiting senior executives in the past." Executive search "boomed in the early 90's" as global search firms, "other specialist and boutique firms began to flood the market. That was a time when markets were deregulating, and the service sector flourished - firmly establishing these countries as regional hubs".

According to Alistair Sutherland, President of Asia-Pacific for TMP Worldwide, "Financial services and technology have, and continue to be, the motor of executive search. That does not mean that other industries do not remain very important".

Hong Kong and Singapore were mature and highly competitive executive search markets. China, on the other hand, was virtually still an untapped market.

Sam Wan, Managing Partner of the Amrop Hever Group in China, recalls, "Hong Kong search firms have been filling executive positions in China for multinational companies since the 1980s. The first major international search group ever to set foot in China was Norman Broadbent in 1993…

Thereafter other firms quickly followed suit."

The most important sectors for searches in China have been in manufacturing, retail and start up operations.

set up in Singapore in the mid 1970s, they were involved initially in the financial services -particularly the banking- industry. During the 1980s and 1990s, search assignments spread into those areas where Singapore itself was developing. Manufacturing, chemical processing, logistics and professional services" became important.

High-tech, telecommunications and pharmaceuticals showed a steady growth.

Louisa Rousseau, Managing Director of Bó Lè Associates, reports, "in Hong Kong and Singapore, executive search started

THE EMPERORS Among prominent search firms based in China are Bó Lè Associates, Korn/Ferry, Russell Reynolds, Heidrick & Struggles, TMP Worldwide, Spencer & Stuart, Egon Zehnder, Amrop Hever, AT Kearney, Boyden, Norman Broadbent, SES, Bennett Associates and The China Team.

Among the leading search firms based in Singapore are Egon Zehnder, Bó Lè Associates, Korn/Ferry, Heidrick & Struggles, Russell Reynolds, Spencer Stuart, Amrop Hever, TMP Worldwide, Garner International, Salzer Group,

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Horton, SES, AT Kearney, Ray & Berndtson, Clyde Consultants, RM Associates and Roger Prior Associates.

It is important to depict the financial specialists since they play an important role in Asia-Pacific's executive search.

The prominent leaders are Whitney O'Neill, Executive Access, Eban International, Global Sage, Alexander Mann, The Consulting Partnership, Wall Street, Pelham Search Pacific, Taylor Abott Asoociates and Baines Gwinner Associates/Whitehead Mann.

UNDERSTANDING THE LEGEND According to Louisa Rousseau, "clients based in Hong Kong and Singapore are sophisticated users of executive search, so charging a retainer is generally a well-accepted practice.

Sam Wan explains, "within most multinationals, the concept is well understood and executives do know how to react when they get a call from a headhunter. Yet, there still are many technical personnel who, upon receiving such a call, will yell out at their colleagues while holding the phone: "Hey, who wants to change his job?"

Peter Bennett, Managing Director of Bennett Associates, reveals, "There is no direct translation for executive search in the Chinese language. The closest words are employment agency and consulting service. Obviously, we are much more than that. We must explain that the traditional method of hiring on recommendations by family and friends is simply not enough."

Harry O'Neill, Managing Director of Whitney O'Neill, explains, "One of the problems is that everyone believes they know everybody and therefore they don't need to use search. You have to sell the message that search is not just about knowing people. Clients have to understand that your search firm is part of your sales force and we are marketing a message on your behalf, in addition to hiring people for you."

He describes, "when it comes down to negotiating terms, unlike the US and Europe, people here have a real

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problem. It's simply not done. If it is done through an intermediary, the whole negotiating process can be handled a whole lot better‌ Once the results are seen, they are happy to pay a retainer as long as they get value for money."

Louisa Rossenau - Bó Lè Associates "In China, executive search is still new", reports Peter Bennett. "As companies become more international and companies see the results of using executive search, companies will accept executive search more."

When asked about further development of executive search in Asia-Pacific, Alistair Sutherland believes, "Clients are looking more to work on a long- term basis. As search evolves, placement will become part of a broader suite of offerings pivotal for a company's strategy to identify and manage senior talent."

Bob Gattie believes that "we will see the larger executive search firms increasing their product offering. These firms are expanding their range of services to include internet recruitment and middle management recruitment. At the same time, more search firms are offering management audit, assessment, and coaching. This is partly customer driven, but it is also partly an attempt by

the search firms to get closer to their customers."

Sam Wan considers that, "due to the proliferation of contingency operators and a fierce level of competition, retained firms have suddenly realized that they have to demonstrate a tangible difference in standards to survive."

NEW CHALLENGES FOR THE TIGERS The overall market in Asia-Pacific depicts signs of growth, averaging a 10% annual rise.

Bob Gattie reports, "The economic situation in parts of the region, particularly in South Asia, has been poor. At the same time, parts of China are growing so quickly that its high demand is not being satisfied by the present supply of candidates."

The search professionals interviewed have attributed the global economic slowdown, difficulties in the IT sector, as well as the developments that are occurring with China's entry into the WTO to be important factors affecting the development of executive search.

Hong Kong and Singapore are facing hard times. Ravi Machiraju, Managing Director of RM Associates, reports that these "economies are slowing down and thus, senior level opportunities are shrinking."

The challenge for these two countries is how to identify new opportunities abroad.

According to Louisa Rousseau, "there is a growing perception that Hong Kong and Singapore are losing their competitive edge as unemployment rates soar to new heights. This has a direct impact on Hong Kong and Singapore's talent market, particularly on issues related to job security" as more companies relocate to the Mainland within the next few years.

In fact, Alistair Sutherland describes how executives are being forced to become more mobile and follow this trend if they want to remain competitive.

Louisa Rossenau explains, "Hong Kong and Singaporean professionals are preferred in China because of their

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language advantage, cultural affinity, hands-on exposure in the Mainland as well as their global mind-set."

Bob Gattie reports, "Many of the large Asian conglomerates and government linked corporations are increasingly using search. Many of these companies are investing and starting operations in other parts of Asia, Europe and the U.S. Therefore, there is a market for executive search with those companies looking for talent in Singaporean companies abroad."

He describes that locally "there is a strong demand in the biotech and healthcare areas."

Finance, manufacture, logistics, high-tech and professional services are also significant.

Hong Kong's status as an intermediary for businesses in and out of China, as well as a regional hub makes its expertise and extensive know-how vital for China's emerging markets. Within this context, finance, legal, retail, consumer, industrial, technology, business and general management are a few of the industries where talent is in high demand.

THE GIANT AWAKENS Executive search holds great promise in China. Its entry into the WTO as well as Beijing's present developmental priorities is giving way to rapid economic expansion.

Alistair Sutherland believes that "China is still in its formative stage. It is

“.... Many of the large

are increasingly using search.�

Asian corporations

still has an underdeveloped search market".

Yet China is at a critical juncture as "many companies are trying to identify key players, map out the brain makers and where to invest in China."

It is important to depict that the

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service sector has traditionally been heavily regulated. Ravi Machiraju explains, "The executive search industry has been liberalized over the last few years. For a long time, local Chinese employees could only be hired through certain state-owned placement/staffing companies. Although this has changed now, a foreign search company still needs to have a local partner which owns a business license to operate an executive search business."

Search firms are setting up offices in Shanghai (cosmopolitan center), Beijing (political capital), and some have even expanded to Guangzhou and Shenzhen.

Bob Gattie - Amrop Hever Group Sam Wan describes that in the past, many foreign search firms operated as "representative offices". Ravi Machiraju informs that, "These offices carry out the groundwork but cannot charge any revenues. They are therefore funded and maintained by the Hong Kong or Singaporean office which manages the billing."

"At this juncture", Sam Wan states, "many players are adopting a wait-andsee attitude to find out what the new rule actually means and how - or even whether -- it will be enforced."

Meanwhile, a large number of foreign medium-sized corporations are setting up offices in China. Simultaneously, local companies and State-owned enterprises (SOE) are restructuring and preparing

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their business strategies to be able to compete in this new environment.

Alistair Sutherland reports, "Local companies who want to compete with multinationals are looking more for global skills and mindsets and therefore, are being forced to use these sourcing strategies if they want to be able to compete effectively." In fact Louisa Rousseau believes that "these local companies are more than ready and willing to lure top talents from multinationals".

There is a strong demand for expatriates in general management, country managers, directors, financial controllers as well as sales & marketing executives. There is also a large turnover for Asian and Western talent, in foreign and local companies.

At the same time, many of these multinational companies are localizing their management positions. In fact, 90% of midlevel managers in foreign companies are already local, with the salary gap between foreign and Chinese executives getting narrower.

Alistair Sutherland explains that in the past, "expatriates were paid high premiums and attractive packages to come to Asia. However, since there is now more local competition, the packages have been lowered and are more appropriate to the surroundings."

In addition, many businesses are beginning to invest and nurture local talents. Sam stresses how companies are beginning to see the "need to structure a staff retention strategy and adopt a long-term view of employee development".

Furthermore, Louisa Rousseau believes, "as the talent market matures, Chinese nationals will fill an increasing number of senior professional positions overseas."

THE ACHILLES HEEL Although China currently has a vast deal of opportunities, it is important to note that there are still difficulties that must be overcome.

Sam Wan reports, "in China the law

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does not always say what can or cannot be done. Even if it does however, the letter and spirit of the law are often ignored when favoring outside interests.

A search company may sometimes infringe on an unusual rule. A typical example is by taking certain categories of staff out of a SOE to join the private sector without obtaining the proper release papers."

Ravi Machiraju explains that because information is not always easily accessible, issues like obtaining reliable references and diligently verifying candidate qualifications and credentials take longer since one must find alternative methods to gather and verify such information.

Louisa Rousseau and Peter Bennett believe that in China, there is a lack of international professional standards and work ethics.

Louisa Rousseau elaborates, "Hong Kong and Singapore do not have problems with these issues because executive search is already a wellestablished industry where many international firms operate. Yet in China, "there has been a proliferation of firms that claim to be doing executive search even when their practices and standards do not meet international standards."

ABOUT THE EMPIRE Executive search is complex in AsiaPacific as search consultants must look beyond borders when recruiting. In fact, cross border searches account for 75100% of all their assignments.

Bob Gattie explains how "…we look for candidates across the region, from Australia to China from India to Philippines. We look for Asians outside the region that are willing to return. You have pockets of Indians, Chinese, Singaporeans, and so forth, living in the States and Europe. Expatriates are only considered if they add value in terms of technology transfer or bringing a head office… Clients expect all these to be included as candidates."

Ravi Machiraju explains, "Search consultants need to be sensitive to such

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KEY ECONOMIC DATA FOR CHINA, HONG KONG AND SINGAPORE Population GDP GDP Per Head (US$) Real GDP Growth (%) 2001 Real GDP Growth (%) 2000 GDP-Composition By Sector Agriculture (%) Industry (%) Services (%) Inflation (%) Labor Force (M) Unemployment (%) Exports (BN) Imports (BN)

CHINA 1.26 Billion 1.1 Trillion 870 7.3

HONG KONG 6.9 Million 163.2 Billion 24,990 0.1

SINGAPORE 4.2 Million 92.3 Billion 27,350 -2.2

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15 50 35 0.4 800 10* 232 197

0.1 14 88 -3.7 3.40 4.5 204 215

30 70 1.4 2.1 3.1 137 127

* 10% is estimated for urban centers. Rural is higher, figures say up to 30% of rural workforce is unemployed.

SALARY LEVELS FOR SENIOR EXECUTIVES Marketing Finance Sales HR General Manager

CHINA US$ 47K – 72K US$ 47K – 84K US$ 36K – 72K US$ 47K – 72K US$ 47K – 120K

HONG KONG US$ 96K – 150K US$ 102K – 190K US$ 96K – 150K US$ 96K – 128K US$ 150K – 250K

SINGAPORE US$ 83K – 99K US$ 83K – 99K US$ 83K – 99K US$ 72K – 88K US$ 95K – 125K

* Provided by Bó Lé Associates

cultural differences and deal with their candidates accordingly. Ensuring a cultural fit is as critical, and sometimes even more so than a technical/functional fit. This is particularly true for Asian conglomerates."

Our investigation depicted that repeat businesses are extremely high, ranging between 60-80% of all assignments.

Harry O'Neill explains how long term relationships are highly valued here.

Therefore, it is common for "the established firms to have been working for the same clients for years and that is why we appear to do well since candidates identify us with the firms we represent for a long time. We have a far smaller universe of potential clients to draw from so you tend to guard your client relationships very jealously and very carefully."

PAYMENT FOR SERVICES All the search professionals interviewed agreed that the standard fee for retained executive search is 1/3 of annual salary for senior executives.

Some admitted that because of fierce competition and the global downturn, the fee arrangement can often be brought down to 25%.

Although there were some firms that charged a flat fee, this was becoming less common.

BEYOND THE GREAT WALL Asia is the fastest growing region in the world. Obviously, there is an extremely high demand for talent.

Executive search is highly competitive and developing quickly. Businesses and search firms are aware of the challenges that are in store. Yet, they are betting that the opportunities will be much greater. All three economies have proven their resilience and their knack for adapting to whatever lays ahead. It is now time to see how executive search will continue to unfold for the Tigers and the Giant. www.search-consult.com

Comments?

Email: editorial@search-consult.com

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Developing

the

Research Strategy

By Simon Stephenson, SRA

Simon Stephenson

THE ASSIGNMENT BRIEF The starting point for the Research Strategy is the assignment brief, which

client, its culture, ambitions for the future, challenges, structure etc. It should go into some detail about the

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should provide all the information that is required. It should tell you about the

eveloping a Research Strategy is the key to any successful research project. This need not be overly complicated and with practice and experience it should become a simple thought process. It is, however, a discipline that if not followed will result in a less that satisfactory outcome. Above all it is important not to just say "I did one of these searches last month, let me find the old target list". No two project briefs are ever identical, no two companies are the same and the commercial world is always fluid. In simple terms a candidate who might be a good fit for Goldman Sachs would not necessarily be right for the Agricultural Bank of China, even though both organizations were looking for a Sales Director in the Asset Management Department and both roles were based in London.

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position, key tasks, performance measurements, reporting lines and external relationships. The person specification will throw light on the sort of background successful candidates will be expected to have and it is important here to differentiate between "useful to have and essential to have" in the way of skills and experience. Finally some idea of the reward package is essential.

THE QUESTIONS Having understood the brief, one should then ask four key questions which will provide the basis for the research strategy.

Question 1. What are the core skills sets required to undertake this role?

The answer to this question will allow you to decide if the candidate must come from the client's industry sector or whether other sectors are relevant. A simple example would be that a Sales Director for a readymix

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concrete company need not necessarily come from another readymix business, but could instead be found in some other product supplier to the construction industry. In this case, the important core skill that they require is the ability to sell within the construction industry supply chain and not just within readymix concrete.

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couple of divisions, unless the rewards are amazingly high. On the other hand it may be that the client has strategic plans for ambitious growth, and while it is not currently recognized as a major player in the sector, this is going to change and needs to be transmitted to candidates.

Secondly, it is important to find out how the company is perceived Question 2. What is the scale of the culturally i.e. is it bureaucratic, role? youthful, aggressive, paternal etc? One The scale of a role can be measured may well look for other companies with in a variety of ways; by company a similar cultural approach to the client in order to find the right candidate turnover, market capitalization, size of match. Finally market sentiment is work force, advertising budget, critical i.e. how is the company geographical coverage etc. Every role regarded amongst its peers? Is it will have something to measure its aggressively attacking new markets or scale by. Somebody who is currently a considered to be lacking in ambition; is Marketing Manager with an advertising it fast moving and has embraced budget of £5m, a team of 15 direct technology or is it sitting back and reports and with European letting the opposition undermine it's responsibility, is most unlikely to want market share, or is it a hierarchical or a to move to a new role that is UK matrix organization? focused, leading a team of 10 and with These softer issues are harder to a budget of £1m; even though it may answer than the first two questions and have the title of Director. The answer to one must avoid the scale question being too dogmatic will start to “.... it is important to and blinkered. indicate which companies within find out how the company There is a danger that as a researcher the selected is perceived culturally one can perceive industry sectors are no reason why a relevant to this candidate would search. want to make a move from one Question 3. What company to is the standing of another; for the client in its personal reasons sector? they may elect to This is a question move for the sake of their children's that needs to be addressed carefully, as schooling, or for a lifestyle change etc. it can save a great deal of time if While it is a pragmatic question, care answered truthfully. Firstly, you must should be taken not to rule out asking decide in which "Division" the company candidates from unlikely companies. lies. One can safely say that Goldman However, the highest rate of success is Sachs is in the Premiership while a going to come from those organizations smaller bank such as Harris Trust and which are a good match.

Savings might be in the 3rd Division. To take the analogy further, it is an easy Question 4. What tools do you have sell to move someone from a lower to a to assist you? higher division but very hard to As you start to plan the length of time persuade someone to drop down a

i.e. is it bureaucratic, youthful, agressive, paternal etc?”

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that a project will take, you need to decide what information sources you have available to you. Previous assignments in the sector are a good starting point but never the whole answer - information rapidly looses its validity only months after it has been obtained. You must decide how the internet can help you either through specific industry association websites or sites such as Hoovers or Hemscott for industry wide information. This is a subject all by itself and it is worth spending some time on becoming really familiar with how to get the best out of the internet. You also need to decide how much telephone work is required as this will occupy a good deal of your time line and must be planned for. You will also need to identify your sources of both industry and candidate information.

CONCLUSION The answers to these four questions should help you to select a list of companies where the most suitable candidates will be located and you will have identified at what level they are working at. At the same time, you will also have listed the sources and tools available to help with the research and will have an indication as to how long the project will take. Your strategy is complete.

This is not a hard and fast process.

There will always be candidates who come in from left field. However, it must be remembered that research is a structured process and unless parameters are put in place, then it becomes a blind fishing trip rather than a true search.

FUTURE ARTICLES In the next issue we will look in more detail at the tools that are available to the researcher.

www.search-consult.com

For more information, contact: Email: simon@exec-research.co.uk

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Interim

Management

How does it differ from the search industry?

By Ludwig Heuse f you, as a client, request the services of an interim manager, you are faced with one of the four following situations:

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SITUATION 1: SOMEONE HAS TO BE ON THE JOB TOMORROW. PERIOD. THEN YOU'LL THINK FURTHER. Imagine an automotive company manufacturing a small component somewhere in the chain leading to the glimmering Porsche. If the production manager is not available from one day to the other for whatever reason, someone else with the appropriate qualifications and experience has to be put in his place immediately to secure just-in-time-delivery. If there is no one within the company who can take over, an interim manager must step in.

SITUATION 2: SOMEONE HAS TO DO A JOB, BUT A PERMANENT MAKES NO SENSE (YET).

The classical interim managementcase, i.e. A restructuring has to be done, a new plant has to be built or a production line has to be transferred to another location. When the job is done, the skill is not needed any more.

This category applies also to M&A

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situations, either before the sale, when the company on the block has to be put in shape but is not wanting to be burdened with long-term personnel contracts, or after the acquisition, when the acquirer wants to make up his mind first about the future structure of the company before it makes sense for a search consultant to look for a manager for a permanent placement.

For example, it makes a difference whether a search consultant can offer a MD-position to a potential candidate if the acquisition will be run as a stand-alone entity, or whether he can offer only a second level position in case the investor decides to merge it

Ludwig Heuse

with another company. This category applies also in cases where a company needs qualified know-how but has no use for it five days a week, i.e. a skilled HR-manager for a high-tech start-up.

SITUATION 3: SOMEONE HAS TO DO THE JOB BUT YOU WILL NOT FIND SOMEONE TO DO IT AS A PERMANENT. Think of strange places (i.e. an oil refinery 2000 kilometres East of Moscow) or unpleasant situations (a new CFO for Enron).

SITUATION 4: THE SEARCH FOR A PERMANENT IS ALREADY ON, BUT THERE IS NO CREDIBLE CANDIDATE IN SIGHT YET AND THE JOB HAS TO BE DONE IN THE MEANTIME Search consultants feeling the hot breath of their clients on their necks refer their clients to us in these situations because it makes their job easier. There is a tendency in the clients’ mind to like a candidate the more they need him, but urgency is not a good counsellor. Therefore search consultants, interested in long term client relationships, may prefer to have an interim holding out while they do

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talks to available candidates, the power balance between him and the candidates is different than in the search industry. On the one hand, at the time the IM provider offers a job, there is often no clear alternative assignment available to the candidate, which means, the offer is found money, he is not lured away from another source of income, but on the other hand, IM providers most often talk to people who are financially independent.

Interim management makes sense for those functions within an organization which can be cut out and clearly defined. The nearer a position is to the heart of the organization, the

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more it is concerned with strategy questions.

The less interim management makes sense, as in these cases continuity and long-term commitment with the organization are paramount.

The nearer a function is to the heart of the organization, the more it is concerned with strategy, the less IM makes sense.

Obviously the question arises whether search and IM firms can provide both services. There are clear synergies between these businesses as those involved talk about the same issue with their clients - the provision of human resources. But, there are differences and difficulties resulting,

PERCENTAGE OF COMPANIES USING INTERIM MANAGERS IN GERMANY

90% 80%

Disproportionate Usage of Interim Management among companies with more than 100 employees

70% 60%

Percentage

50%

IM-Users

40%

Total

30% 20% 10%

> 1.000

501-1.000

401-500

301-400

201-300

101-200

0% < 100

their search according to their good practise, which just takes its time. This category applies to situations in which an interim takes over until a permanent, who has already been identified, is available. Assignments of this category are mostly unproblematic and have, relatively to others, unusually low stress levels.

Summed up, in more than half of the projects, the overriding concern of the client is time or the lack of it. The client does not care whether the candidate calls himself an interim manager or not, what he demands is rapid deployment. The necessity for the IM provider to present credible candidates within a very short time period results in the most important difference between the IM provider and the search firm, which is: IM providers do not even talk to candidates serving in permanent positions, because the time needed to dissolve their current contracts is not available. That means, in IM, the search has to be carried out before the client calls, and the candidates presented are mined in constantly updated data banks. As interim assignments average eight months, it would also not make sense for someone in a permanent position to give this up for a short-term job.

Unlike search firms, IM providers do not even talk to candidates in permanent positions, there is just no time for it.

From the perspective of the candidate, interim management is about being self-employed with the resulting consequences: You have to function on your own without the borrowed credibility of a brand-name business card; you have to be a marketer of your own services whether you are a marketer by profession or an accountant; you should have a financial cushion to bridge times without assignments and, last but not least, you should be willing to live a nomadic life. What you get offered are interesting projects, not career opportunities. As the IM provider only

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Size Brackets

REASONS FOR USING INTERIM MANAGERS IN GERMANY (ANALYSIS OF 550 PROJECTS IN 2000 - 2001) Bridging of Vacancies 26%

Finite Projects, such as relocation of production, product introduction 19%

Other 12% Coaching 19% Restructuring 16%

Change in Ownership (M&A) 8%

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for example, from the fact that the search industry is a fee business, whereas IM providers are principals.

They contract with the client for the entire project of, say, eight months, and have a back-to-back contract with the interim manager. That means IM is not only about identifying the right talent and putting it to work, but also about leading high profiled executives and risking the name of the organisation on the performance of them. What happens, if an interim manager makes decisions, which cost the client money? An IM provider should have addressed the issues of interim manager performance control and legal liability in advance. And, as IM providers are often called in when clients are in trouble, they better have organized proper ways of debt collection. These are issues talented search professionals can address as well as executives working as IM providers, but there are more subtle points, which may make it difficult for

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the same firms to provide both services.

Firstly, people who are selfemployed are talked to and handled differently to people who are employees, whether they may they be high up or not. Different types of people have the talent for each of these languages, which again means firms providing IM and search-services alike need different types of executives. That can work out more often than not, but more often the same types of people gather in one organization.

Secondly, as the search industry is well established and whereas IM is relatively new and upcoming, providing both services mostly means that established search firms start IM offspring. As the search arm of the respective firms tend to subsidize the new IM arm in the beginning, the power balance within the firm is with the former, which is bad for the latter, as it is not free to develop the IM

business according the rules of this industry. In other words, search professionals "think" the IM business as just a slightly different form of the search industry, but it should be thought off as an industry of its own.

This uneven balance between search firms and their IM offspring can be illustrated by the tendency of the former to "dump" candidates into the lap of the latter when they think these executives cannot be placed anymore in permanent jobs because of age or otherwise. The motive now is more to do something good to the executive than to provide the IM outfit with the best talent. On the other hand, an IM firm is dead from the start if its data bank contains primarily candidates who are there for necessity and not for choice.

www.search-consult.com

For more information, go to: Web: www.interim-management.de/

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ISSUE 1 ● Dr Jürgen Mülder Heidrick & Struggles ● Executive Search and Management Appraisal

ISSUE 2 ● Steve Potter TMP Executive Search ● Executive Research The Outsource Option

ISSUE 3 ● Jeff Christian Christian and Timbers ● Focus on the Whitehead Mann Group

ISSUE 4 ● Windle Priem Korn/Ferry International ● Chris Clarke Boyden Global Executive Search

ISSUE 5 ● Paul Ray Jr Ray & Berndtson ● Search in Germany The Law

ISSUE 6 ● Pat Pittard Heidrick & Struggles ● Germany's top 25 Search Firms

ISSUE 7 ● Russell S Reynolds Jr. Directorship Search Group ● Search in South Africa ● Corporate Governance

ISSUE 8 ● Hob Brown Jr. Russell Reynolds Associates ● Global Leaders ● Maintaining Quality in Search

ISSUE 9 ● Gene Shen - A.T. Kearney Executive Search ● Competition from within in house executive search

ISSUE 10 ● Dr Jürgen Mülder Heidrick & Struggles ● Executive Search and Management Appraisal

ISSUE 11 ● Alain Tanugi TRANSEARCH International ● Interim Management ● Search in China, Hong Kong and Singapore ● The Future of Search

“Our readers include executive search professionals from firms in 60 countries.” £150 / $240 / €240 is the cost for 10 copies per annum, delivered anywhere in the World.

Subscribe online at: www.search-consult.com or e-mail: enquiries@search-consult.com to find out about discounts for multiple copies.

World of Search AUSTRALIA Stephen Lennard Crown Executive Solutions Executive Search has changed considerably in recent years and it will continue to evolve for at least the next five.

The majority of informed clients will no longer accept older style methods and beliefs.

Gone are the days of a six-month search, as innovation, speed and delivery become the accepted benchmarks against which to evaluate our performance.

You only have to look at the criticisms of the industry to find the way forward: 1. Slowness to act and time taken to complete assignments 2. Conflict of interest and the inability to search from other client companies 3. Approximately 60% of searches are successfully completed often leading to client dissatisfaction Each of these point to the need for new ways of working, yet most would agree there is likely to be little change to the structure of the search industry.

The global firms will continue to enjoy a perceived market image of safety and international reach where corporations are looking for global searches, while the smaller firms will increasingly network themselves through associations or strategic alliances to combat the large global players.

However in my view, the fully vertically integrated firms offering executive search down to secretarial and temporary placements will not last.

The one stop shop mentality / structure is internally, more often than not, fraught with conflict by competing groups. Conflict of interest is a major issue here. The client company will see this and therefore their market penetration will be capped.

While search is and will continue to be a business of relationships, I predict we are seeing the last days of the old boy network, which has been key to the success of many players.

Much more reliance will be placed on strategic management assessment as part of the search process in order to reduce the risk

In this issue we ask our panel to look into a crystal ball....

How will the executive search industry look in five years time?

of an inappropriate hire and increase the success of the placed executive over the long term.

Clients will demand greater value from the process, which means we need to develop new services as consultants and drive down the latent costs of a poor hire.

It is this innovation that will differentiate a truly professional search firm from the increasing number of inexperienced operators entering the market.

In this regard, technology has been our friend and foe. It has helped to reduce the time taken to reach potential executives while lowering the barriers of entry, making it is easier for more firms to offer a similar search service.

Encouragingly the future of executive search is bright with plenty of opportunity for us all to develop the industry, but with no room for complacency. â&#x20AC;&#x153;

JAPAN Bryan Gould Medina Consulting The current shake out in executive search is going to reshape the competitive landscape for the next 5 years. The big 5 global recruiting firms are undergoing a very painful transition, especially the publicly-traded firms who are trying to improve their earnings by reducing consultant pay-outs for many and reducing research support.

Brand will matter less than consultant capability and quality of client relationships, as big brand (read: big overhead) firms drive out solid talent, who discover that going independent and forming smaller and more efficient firms and alliances, will better serve their interests.

In Japan, the end of the life time employment and seniority pay systems combined with faltering Japanese companies' dire need for good talent, will continue to provide interesting opportunities for executive search.

UK Brian Hosking TRANSEARCH International While watching a Japanese animated film with my son last year, the world was imagined as a place fraught with nanotechnology, cyborgs and artificial intelligence. I found it fascinating to think that this is how the future of the human race might look. It reminded of William Gibson's Neuromancer and maybe the Wachowski brothers' The Matrix. I was most surprised to find a character in the story, very much close to the Head-Hunter that we know today. The man embodied a free agent that was paid by rival companies to acquire talent from their competitors. I started thinking about the role of technology in our business and what the future would hold for us.

The realization that technology enhances and improves our everyday life is profound, even more so when you are convinced that human intervention will always be needed.

This makes me very excited as the proverbial 'the sky is the limit' becomes a reality. This is no more different in Executive Search. The business has always been reliant on human contact and relationships. As human capital becomes more relevant to the success and growth of businesses, using technology to enhance our efforts to find appropriate talent will become crucial for our survival. I cannot imagine a world without the important human interaction that has come to characterize our business, instead I see a more effective service delivery, with measurable standards encouraging total transparency with our clients. The appropriate use of technology should enable us to make real value added contributions.

Do you have a question for a future panel?

Email editorial@search-consult.com 22

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Paul Ray Jr Ray & Berndtson

By 2007, I expect the retained executive search business to have fully regained its growth momentum of the late 1990s and to have increased to a $12 billion industry worldwide. I expect to see particularly strong growth in Europe and a build up of momentum in the Asia/Pacific region.

I believe that the core business will continue to be retained executive search but at a higher level of execution quality brought about by increased client awareness and higher demands. By effective use of technology good consultants will become even more productive and be able to leverage their strong client relationships into higher margins and even higher fees.

I expect to see a greater offering of human capital management solutions from some search firms, in particular the public ones, adding to their stable of services both horizontally and vertically within the market.

However, I do not believe that this will essentially change the nature of the retained executive search work performed by these firms and they will need to carefully control conflicts of interest, much as investment banks have to.

I expect to see the AESC as a strong, global organization taking a much higher profile in the promotion of executive search, the raising of standards and professional education.

Overall I expect to see a higher quality and higher end industry which has differentiated itself more effectively from volume recruiting and the lower end of the market. Added value will be the key - for those consultants and firms able to provide it the future looks extremely sound."

If we look at the future of executive search, it is in for a lot of changes. Globalization is definitely changing the demands of executive search.

Competition is not just local, but global as competition comes from many places.

An important challenge is how do search firms expand their business internationally serving clients across the borders while at the same time still guaranteeing a high quality standard of service. This is difficult since it is not a question of production, but a concern that deals with people's behaviour. Despite innovations in technology, executive search is still a people business. This means that relationships are extremely important as trust and respect between the consultant and the client are vital. Consultants must have high ethics and strong values. We must push for strict standards on quality.

There will be more demands on really being able to assess a candidate's abilities and how to guarantee his or her success in the future.

Search firms must broaden their product offering to incorporate much larger and deeper understanding of human resource strategies.

Through their networks, partnerships or internal know how, search firms must define new areas to get closer to their clients and provide these services. Although some search firms will remain specialized, I think that the norm will tend to broaden their executive search services from just placement to coaching, management assessment, management auditing, and so forth. In a big market there will always be room for specialities related to skills, yet they are more vulnerable to market fluctuations. I think that many serious and large firms are, and will continue to get into other HR consulting services that will give them a broader readiness to tackle the problems of their clients.

At the same time, clients are also increasingly demanding to centralize their HR concerns.

The successful search firms will be the ones that can effectively answer clients HR concerns while at the same time making clients feel that they receive the same quality service in any country - respecting and understanding the cultural differences.

Five years from now, executive search at the most senior level will remain similar to what it is today.

Knowledge will become increasingly transparent, as technological advancements bring additional depth to information.

Rather than supplanting search, as some predict, technology will strengthen our business, increasing our ability to identify top candidates.

As an example, Ray & Berndtson has already seen an increase of 225% in online registration entries since 2000.

However, high-tech is not hightouch. With all that technology can do for the search process, it cannot replace the critical, personal, human interaction that search professionals bring to the very senior levels.

While some pundits believe the need for a critical mass may cause search firms to offer additional capital services such as coaching, this is unlikely to become a wide-spread phenomena. Although some firms will expand their services, it is difficult to predict how valuable such offerings will be in five years, as there has not yet been a successful model that integrates the necessary synergy.

Both integrated and global partnership firms will continue to thrive, as both contain successful attributes. While some search firms believe their business is more effective within a single ownership model, at Ray & Berndtson we have found the global partnership model to be competitive in personal, high-level work for clients on a local and global basis.

In five years, clients will expect more from us. We will continue to serve their needs.

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By Jason Starr A few years ago, the name "Norman Broadbent International" was synonymous with boardroom search at the very highest level.

Miles Broadbent and David Norman were to FTSE100 firms what Gerry Roche was to the Fortune equivalent. In the mid management search arena, subsidiary NBS had an equally dominant position.

Few could have predicted what followed. A decade of turmoil saw the acrimonious break up of the partnership and the subsequent departure of many of the leading consultants. Investment was poured into an Internet venture - My Oyster which, eventually, failed. Financial results went from bad to worse and, in January, the business was forced to issue new shares to raise the cash needed to keep the business going.

Norman Broadbent has now named the new chief executive who, it believes, will improve the fortunes of the firm. In line with the unpredictable nature of the companyâ&#x20AC;&#x2122;s recent history, the man they have named to lead the recovery of one of Britain's best know search businesses is a Shakespeare quoting American. In this interview, the new CEO of Norman Broadbent, Doug Bugie, talks exclusively to search-consult.

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Doug Bugie he interview takes place early on the morning of March 14th, 2002. It's an important day for Doug Bugie; he is in his second week at the firm and is hours away from giving his first speech, en masse, to his new team. He is also one day away from the announcement of the group results for 2001 - results that he labels "atrociousâ&#x20AC;Ś but, in fact, they are in the past.".

Our interview begins at 8am; Bugie has been at his desk for over an hour, finalizing his presentation. He is an avid reader, and has chosen to base his address around the St Crispin's Day speech from Shakespeare's Henry V. In the play, the speech was given by the

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English King, immediately prior to the Battle of Agincourt. An English force, hugely outnumbered by its foe, was famously victorious. Bugie draws parallels with the situation at his new firm.

"The Battle of Agincourt was one of the greatest military victories in history. The English were successful for three reasons.

They had an imaginative strategy; they had the tools (the battle saw the first use of armour piercing Long Bows) and they had someone up front who believed."

"We have a new strategy, based around our strengths. The strengths are: a brand with superb recognition, a terrific client base - the bluest of blue chip firms - and a solutions product that works. We have some good people here already - we need to attract more. All we need now is to build the team to get the most out of the business."

There is no question over Bugie's ability to build a recruitment business. Prior to joining Norman Broadbent International, he founded Humana International. Over a seven year period, he built the business into one of the largest mid-range recruitment firms in the World - a multi-million pound business operating, through franchisees, in 27 countries. He sold the business to U.S. group MRI Worldwide in 1999.

He talks confidently, enthusing about the potential of the business, confident that he

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can bring success. He focuses on the business' strengths; talks glowingly of the brand and of his colleagues. Doug Bugie is a man who can sell.

In practice, however, he is facing a huge challenge. Parent group BNB Resources resigned from the London Stock Exchange in January, and joined the Alternative Investment Market (a London exchange for smaller firms). At the same time, it announced plans to issue over 12 million new shares in the hope of raising £3.2 million. Without this injection of cash, "BNB (would have been) left in a financial position where it may be unable to service its working capital needs as they (fell) due".

The end of year results for 2001 - issued in March - demonstrated the problem.

Turnover had fallen from £153 Million to £132 Million and the total reported pre-tax loss for the year was £18.9 Million (although over half of this relates to exceptional charges).

"The numbers are poor, I acknowledge that. But, they are historical. Our past strategy did not work. OK, fair enough, but we have drawn a line under that. We cut back on our overheads (saving an estimated £14.6 Million on an annualized basis) and put in place a new strategy. The financial situation today is sound - the share issue announced in January was entirely underwritten because our major shareholders have confidence in the future.

Furthermore, so far this year, we are hitting our targets."

The new strategy for the group will see a focus on the solutions business. Described 0

by Bugie as "… a true 360 strategic partnership where we discover, develop and retain people to give our clients a better competitive advantage.". It is a service that he believes his firm already provides well.

"It is difficult for a recruitment business to differentiate on a purely transactional basis.

There are a lot of great companies who can provide excellent recruitment services. How you can be different is by really partnering with your client. You plug in to the business… you have to know it inside out, its culture, its ethos, its strategy etc. That is what our solutions business does. It's what clients like and it's what the street likes.

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"You will see us grow quickly in solutions.

We will not abandon our search roots - we need the top level contacts to open doors, but solutions will grow more quickly - the growth differential will be a factor of five, maybe ten, even fifteen."

In its heyday, Norman Broadbent was a global business with offices in all of the major markets. Today, the business has just 30 consultants, and only has wholly owned offices in Britain and Spain. A licensee, Charlie Chalk, runs the U.S. business from Atlanta. Bringing in new talent, Bugie believes, is a vital part of his role.

"Our business needs to be structured to attract talent. People are vital to what we do and, although we have good people here, we need more."

"My background is in growing a recruitment business through franchising.

Our objectives here are different - we will not be setting up hundreds of Norman Broadbent firms around the globe, but we will be looking to bring in talented people, and we will be flexible about the ways in which we attract them."

"Our strategy will be different in different markets. In the UK, we will be searching for top consultants to join the existing business.

In other markets, we may acquire, grow organically or look at the licensing option."

"Take the Middle East, for example. We may feel that a licensing arrangement is the way forward there - this enables us to bring our skills and expertise to the sector without risking our capital. In Japan, however, it might be that we feel that the potential is such that we will need to acquire an existing player. We will make decisions based on what is best for the business and will not just arbitrarily follow a single strategy."

Bugie believes that, for any expansion strategy to work, the core product must be right.

"At Humana, I learned that a great business needs three things. It needs good people. Good people attract more good people. It needs a proven methodology to market, sell and deliver its services.

Furthermore, it needs an execution path.

Finally, once you have the attractive business models in place to enable growth

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to occur, you promulgate it to the world. You aim to find like-minded people and business that would like to grow at a faster rate than they are currently doing.

Essentially, we offer the rocket fuel. Once you have these fundamentals, you can discuss whether growth is done through joint venture, acquisition or licensing on a case-by-case basis. Anything is possible."

Underlying the strategy for growth is a plan to dramatically increase the groups marketing efforts.

"We have made some mistakes and we have corrected them. What is left is a core of excellence at senior and mid level search and a solutions business that works. We believe that these are things that we do excellently, and we should not be ashamed to tell people about it. Our marketing effort will be far more active - we will revive the NBS brand. We will be hosting HR forums and sponsoring charities. The solutions business will be proactive about promulgating its success - we work with companies such as The Royal Bank of Scotland, Microsoft and the Learning Skills Councils - with whom I believe our teams are doing a great job. We need to let the wider market know about our capabilities.

"Let's face it, Norman Broadbent is not what it once was. Yet it has the potential to be even greater than it once was, but it will be a fight. It will not be easy. All I can say to people is this: before I joined Norman Broadbent, I did a huge amount of due diligence. I looked at the investors, the clients, and the business. Sure, there were problems, but I could see that they were being acted on and that, fundamentally, this business has some great strengths. I would say to people, do what I did. Check us out.

Look at the strategy, the investor capability, the people, the client base. This company is in a situation similar to that inherited by Louis Gerstner at IBM. If we can get things right, the sky is the limit. There is no firm providing solutions on a global basis in the way that we will - and we will."

www.search-consult.com

For more information, go to: Web: www.normanbroadbent.com

ISSUE 11 2002 search-consult

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Letters

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Thoughts on a changing industry

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competitive and organizational strategies

developed over the past few years.

have slowly moved away from the notion of

truly a reflection of the 'world growing

a 'single, all-powerful executive decision

smaller'. A reflection of recent advances in

maker' / CEO, to a multifarious and 'team

our

driven' structure.

communicate through the major advances in

Strategies are now

and

ease

in

telecommunications

SEARCH-CONSULT in the mail yesterday

focusing on the development of a more

developments), web-based and internet

and have already read through many of the

diversified team of decision makers who

technology and new and improved features

articles with considerable interest.

share

common

in teleconferencing, the flexibility of email

the

philosophy, core values and vision. In many

and other IT related fields that have

publication has taken an international

ways it is a more 'humanistic' approach.

completely opened up and revolutionized

perspective in the content of its articles and

Each member is a valuable contributor to

the global marketplace. Today's teams, once

in-depth reports - a focus that is lacking in

this team.

The final pool of ideas and

separated by thousands of geographical

many consultant and executive search

resulting competitive strategy will exemplify

kilometres, are now only a phone call /

publications. Well done!

and represent the diversified yet unified

email

focus of individuals sharing the same drive

Implementation

I read with great interest the article

and dedication to professionalism that will

instantaneous!

'Return on Leadership' (S-C 2002, Issue 10)

ultimately shape the company success

and the many management strategies that

(Focus and Discipline factor). Like ripples in

larger executive search firms are developing

a pool then, the decisions made by a team

Leadership report ties in with the second

to increase productivity, professionalism and

will transcend beyond the sole executive

article that I read with interest on Branding

company success through a new, more

decision maker and into the creative minds

and how it developed through Boyden and

intrinsic

of

pleased

focus

to

on

see

how

organizational

a

a

common

professional

goal,

and

a

/

push

Interestingly

of

a

and

enough

recent

to

following a result-driven and proven path

I am

(eg.

which

I RECEIVED THE CURRENT ISSUE OF

especially

button

3-G

away.

feedback

the

Focus

are

on

dedicated

how the branding process and strategies

performance and strategy. As the article so

management team in sync where decisions

implemented and studied by the Boyden

clearly demonstrates and, as much as we

are made through the implementation of

search

would like to admit otherwise, at times

team-built strategies, open communication

changed

there is no single optimal 'formula', or

channels and a pool of ideas. Each member

technologies.

'factor' that will determine the overall

of the team is able to invest some of their

increase in searchers - is truly a reflection of

success of a company / firm. The 'formula' is

own 'entrepreneurial spirit' to turn a 'top

the changing times and the way a company

far more diversified than adherence or strict

down' approach into a more diversified,

has successfully adapted and changed with

cohesion to one simple factor or model. It is

'bottom up' and heterogeneous one.

the times in the promotion of unity and

a formula that transcends beyond single

professionals with

the

developed times

and

and the

The final result - the 22%

entrepreneurial spirit.

isolated factors and encompasses a largely

The final result (success / failure) is

integrated and complex framework which

reflected through the overall drive and

It is a reflection, as Ray & Berndston

shapes and underpins the overall internal

commitment of the team to the company

gently reminds us, 'that the bottom line of a

and external operational practices and

philosophy and shared goals and, by

business is its people'.

competitive strategy of a company. This is

extension,

becoming increasingly important in the

Leadership as defined by the Ray and

global marketplace.

Berndtson report). I personally believe that

the

total

ROL

(Return

on

much of the success of these new team As the article also noted, it is interesting

strategies and the move away from the 'top

to examine and follow the trend that has

down approach' is a result of the way that

developed over the past few years as

the IT and communications industries have

Heather Geluk Director of Business Development Certa Solutions Cyprus

Email your letters to editorial@search-consult.com

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ability

It is

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Key moves in Executive Search this month A.T. Kearney appoints G. Stephen Fisher as

served as acting CEO of the company's Executive

been General Manager for Mercuri Urval in

President of the firm's executive search unit. Mr.

Search

overall

Portugal. Baldwin Klep joins the firm's Brussels

Fisher previously headed the executive search unit's

management and operational responsibility for the

office as Partner. He will work on consumer goods.

Central North America and Asia regions as well as

entire Americas region across all TMP Worldwide's

Until recently, Mr. Klep had been Office Manager

was co-leader of A.T. Kearney Executive Search's

business units.

and Head of European Consumer Practice at

consumer

and

industrial

search

practices.

Additionally, he also served as interim president for six months during 2001.

Division.

He

now

assumes

TRANSEARCH International announces key senior management appointments. Janet Woolett joins the London office as she will focus on consumer and

Geoffrey M. Champion is named as a Founding

retail searches. Ms. Woolett previously served as a

Partner and Chief Executive Officer of Leaders Trust

consultant at Nicholson International. Marc-Antoine

International. Leaders Trust International is the

Tschopp is designated to the Geneva office. Mr.

newly

Tschopp will concentrate on executive search

formed

alliance

between

Horton

International and Leaders Trust International.

assignments

Until joining Leaders Trust International, Mr.

telecommunications and distribution sectors. Mr.

Champion previously worked at Korn/Ferry

Tschopp has a varied consulting background and

International as the head of the global technology

has worked for companies such as McKinsey & Co

practice.

and Spencer Stuart. Franco Parvis joins the Milan

Spencer

Stuart

announces

new

senior

management appointments. Richard S. Lannamann is designated as Vice Chairman of the firm's investment management practice in New York. Mr. Lannamann formerly served as Managing Partner and co-head of the financial services sector at Russell Reynolds Associates.

in

the

banking,

insurance,

Office. He will be project leader of talent retention.

Previously

he

was

human

resources

and

organisation director of the Nestlé group in Italy.

Anna Luiza M. Osser joins the firm's Sao Paulo office in Brazil. Ms. Osser has a extensive consulting and financial background as she has worked for companies such as Spencer Stuart. Regina

Heidrick & Struggles International. Keith MacKay is appointed as Partner at the firm's London office.

He will be work in the technology practice.

Previously he had been Managing Director for Christian & Timbers in London. Shane Burgess also joins the London office as Partner. He will work in the technology practice. Until recently, he had been Vice President for Christian & Timbers in London. Roddy Gow, Managing Director and Partner of the firm's financial services practice in the UK, begins sharing his time between the firm's London and New York offices. In addition, Roddy will now serve as Co-Managing Partner of the Global

Financial Services Practice with Kajus

Rottok, Managing Partner of Financial Services in Frankfurt. Roddy will also be forming a Board of Directors Practice in which his focus will be developing new business for the America and Great Britain.

Bisikiewicz is designated to Polish office. Ms.

Boyden Global Executive Search is pleased to

Lee Esler joins Spencer Stuart as Director in its

Bisikiewicz has extensive experience in sales,

announce the addition of Kenneth Vinther

technology, communications and media, consumer

marketing and computer science.

Mortensen to their office in Copenhagen and Donald

goods and services practice areas. Mr. Esler had recently served as a principal at Egon Zehnder International.

Russell Reynolds Associates appoints Jana Rich As Managing Director in the firm's San Francisco Office.

Before joining Russell Reynolds, Ms. Rich was a

Spencer Stuart welcomes John P. Doyle to the firm's

partner and co-leader of the software and emerging

global asset management practice in Chicago. He

technologies practice in North America for

previously served as a Managing Partner in Chicago

Korn/Ferry International.

with Ray & Berndtson.

J. Law to Chicago.

Mr. Mortensen’s fields of

specialty will be within finance, insurance, manufacturing, life sciences, telecom and IT. As a management consultant, Mr. Mortensen built up search and selection concepts at the Bronée Group and at SCR in Denmark. While at Unibank (now Nordea), he held leading positions in finance and

Stanton Chase International has named Stephen B.

insurance, later working within sales and marketing

Whitehead Mann, a leading global search firm,

Watson as Vice President and practice leader of high

at one of the world’s largest service companies, ISS

appoints Jean Allen as a partner to head the newly

technology for North America. Mr. Watson previously

Service Systems.

created corporate and marketing communications

served as a Managing Director at Russell Reynolds

professional services executive with a market

specialty practice. Ms. Allen most recently served as

Associates. Prior to that, Mr. Watson had served as

validated track record as an advisor to senior

head

a recruiter with search firms Ray & Berndtson and

management on issues related to senior level

Heidrick & Struggles International.

executive search, board recruiting, management

of

the

corporate

and

marketing

communications specialty practice at Heidrick & Struggles. Joining Whitehead Mann from Heidrick & Struggles with Ms. Allen is Laura McPhail, who also specializes in recruiting corporate and marketing communications executives.

Ray & Berndtson, a leading global search firm, announce key senior additions. Jim K. Whittle joins the firm's Chicago office as partner. He will specialize in heathcare and life sciences as well as

Korn/Ferry International names Gary D. Burnison

consumer products and services. Mr. Whittle

as Executive Vice President and Chief Financial

previously worked as a Partner for Russell

Officer. Donald Jordan, interim Chief Financial

Reynolds & Associates. Peter S. Kaplan is

Officer, will stay on with Korn/Ferry International

promoted to Partner at the firm's New York office.

as Senior Vice President of Finance.

Mr. Kaplan will focus on healthcare and life

TMP Worldwide appoints John Mclaughlin as Group President of the Americas. Mr. Mclaughlin previously

sciences. Javier Olivares is named Partner at the firm's Lisbon office. Mr. Olivares previously had

Mr. Law is a seasoned

succession and corporate governance. He began his career at the IBM Corporation in the company’s sales and marketing organization at their IT facility in Silicon Valley.

Mr. Law has been recognized for

creating one of the first online branding applications to be patented with the US Patent and Trademark Office. He was recently featured in a cover story on Internet marketing in the Harvard Business School Bulletin with Sir Martin Sorrell (WPP Group, Chairman & CEO), Professor Silk and Barry Salzman (DoubleClick International, President).

Keep us up to date with any corporate announcements! Email editorial@search-consult.com

ISSUE 11 2002 search-consult

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