search-consult Issue 15 by margaret jaouadi

2003 / ISSUE 15

The International Executive Search Magazine

Peter Felix President of the AESC

On the eve of the AESC Conference in New York, Peter Felix writes for search-consult Using Outside ResearchersMaximizing the Relationship

FEATURE

As Heidrick and Struggles faces a lawsuit, we ask: What responsibility should a search firm face when placements go wrong? FEATURE

FEATURE

COMING UP IN FUTURE ISSUES:

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Interim Management

The Top Search Firms

Review of the AESC Conference

Search in New York

Incorporating Search-Portfolio with the latest information on Careers in Executive Search

“If you select my search firm, I will offer to reduce my fee to 20%”

“If you select my search firm, I will offer to waive the initial retainer fee”

“If you select my search firm, I will add value”

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

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search-consult is published 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: Peter Felix, President of the AESC. Photo courtesy of the AESC.

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Executives & Recruiters Expect Employment Market To Improve In 2003 www.search-consult.com

NEWS

FOR EXECUTIVES AND recruiters alike, hope apparently prevails that the sour job market will start to improve. Or at least, that is what the results of two new surveys by ExecuNet, an executive-career resource, indicate. In one survey of 1,185 executives, 79% believe the economy is going to rebound in 2003 while 21% expect economic improvement will be postponed until 2004. When asked about their expectations for the executive employment market during the next twelve months: 65% expect the employment market will be better in 2003 than it was in 2002; 30% believe the market will remain unchanged from 2002; and 5% think it

will be worse than 2002. “Executives are cautiously optimistic that the job market will start to look better in 2003,” says Dave Opton, CEO and Founder of ExecuNet. “As corporate profits improve, we expect to see increased activity in the executive employment market.” Meanwhile, in a survey of 323 search professionals, recruiters predicted a 15% rise in executive search assignments for 2003 when compared with 2002, a year in which search firms reported a 20% drop in seniorlevel assignments from the prior year. The most promising sectors for executive hiring were Biotechnology/ Pharmaceuticals; Healthcare; Manufacturing; Financial Services; and Consumer Products.

Fees in 2002 Reveal Mixed Results For Search Industry www.search-consult.com

NEWS

On an overall basis, 2002 was a mixed year for the search industry. On one hand, the combined retainer fees in 2002 for the 25 largest US executive search firms fell below $1 billion for the first time since 1997. TMP Worldwide, Heidrick & Struggles International and Korn/Ferry International, considered among the top 5 search firms worldwide, reported annual revenue losses that

ranged between 12 and 29 percent. Although this is the second consecutive year revenues have continued to drop for many of the top search firms, currently there appears to be a slight improvement over 2001 when the losses were much greater. On the other hand, for some search firms, such as Spencer Stuart, DHR International, A.T. Kearney, and Slayton International, 2002 was a positive year as revenue growth rates ranged between 2 and 65 percent.

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What Outside Research and Search Contractors can offer their Clients Maximizing the relationship from both perspectives By Tory Clarke and Georgina Tremayne f you are a corporate recruiter or search firm that needs to outsource part or all of your search, would you know who to contact and, more importantly, how to get the most from the relationship with your outside contractor? We contacted 320 search professionals, members of the international not-forprofit organization Executive Search Roundtable (ESR), and asked key questions such as who, why and when to use an outside contractor, cost involved, what to expect and what not to expect, how to work most efficiently and how to select the right outside resource for you. As ESR members are search professionals in large international search firms, domestic boutiques and corporate recruitment departments, the information supplied comes from both the contractor and the client perspective to offer a wellrounded series of checkpoints and guidelines to help you in your decisions.

WHY USE, WHEN TO USE, WHO SHOULD USE OUTSIDE CONTRACTORS? Clients should use outside contractors for a number of reasons. ● Like consultants in any other area, they

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can be utilized only when needed and paid hourly/per diem, on a project basis, or through some combination of these arrangements. No benefits, perks or physical space are required for their utilization. If business is slow, contractors do not arouse frustration or demotivation within your existing team when they are not needed. Most contractors, simply to remain in business, must be competent in a wide variety of industries and job functions. Full-time employees tend to have specializations. Contractors are an ideal choice if you don’t have the internal resources or you want to augment your resources (with languages, geographical location, industry or functional expertise) or if you want to approach sensitive candidates (direct competitors). They offer a focused, apolitical approach and some can offer 20+ years of experience for the cost of a newlytrained researcher. Sometimes your inhouse researchers will be stymied by a search or in approaching certain companies. Hiring an outside researcher to approach those targets

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differently can usually generate additional names and provide you with candidates that are in places that you may not have thought to look. You can use contractors to conduct the core research so that recruiters can focus on the search strategy, sourcing, candidate recruiting and selection process. Small corporates that do not utilize search firms for their staffing needs should consider using contractors on an as-needed basis. Outside research can help the corporate HR team in smaller firms that have not yet built in-house capabilities and for international searches more than one contractor can be used by both search firms and corporates. Contractors are an ideal resource for start-ups, corporate HR departments, division managers, sales managers and search firms for all the reasons listed above.

WHAT TO EXPECT Outside contractors can do as little or as much as their clients require. Their work can be a series of “unbundled” services where each stage of the search process is

defined as a separate project. Depending on the outside contractor these services can include any of the stages shown in red in the search process: a

Client Briefing Specification/Candidate Profile Written Specification Approved by Client Target Company List Development a Candidate ID Organization Charts of Company Divisions and Market Intelligence b Candidate Approach and Ongoing Candidate Development Networking and Sourcing Review Candidate Long list with Client Candidate 1st Interviews Client Interviews / Candidate 2nd+ Interviews Reference Checks Offer / Assist Negotiation Placement candidate identification supplies phone number

and sometimes an email address b

approach to ascertain level of interest

ADVICE - Involve the outside contractor in the search strategy discussions. They can provide suggestions and insights on where to look for potential candidates. WHAT NOT TO EXPECT The outside contractor will not have been privy to all the conversations with your client so will never have the same full understanding of the nuances of the search from your client’s perspective. Here are some aspects you should not expect from them: ● They will not share confidential information about other clients. Integrity and ethics are critical. ● Expect phone numbers but not necessarily direct line numbers. ● Bios/Backgrounds of individuals. ● Data provided may not be easily imported into your contact database. Check format required and plan for the possibility of manually retyping data. ● Copious reports. Given the reduced fee the research could be compromised if too much time is expected to be

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dedicated to report writing. ADVICE - The client (corporates in particular) needs to be more proactive in closing the search and making the hire. As a rule, they will be receiving resumes and information from outside contractors about candidates that are not currently looking for a job and, in many situations, they will have to be able to close the deal by selling these candidates on their company. COST Most outside contractors are only interested in a retained relationship with their clients i.e. one where they are working exclusively on a project and are paid regardless of results. For this reason guidelines/parameters need to be provided and a sense of trust developed at the outset of the project. There is a wide variation in fee structure - some work on an hourly basis, some per diem, some per project, some inclusive of expenses…if you are uncomfortable with an hourly rate, it’s worth discussing alternative arrangements. Terms vary greatly so discuss them thoroughly. These are some examples of terms reported across several countries. There are no set terms for any country or sector. ● Contract Research: Between $75 and $125 per hour dependent on experience and product. ● Charge by the hour but minimum hourly commitments, where you buy 20 or 40 hour blocks of time. ● Charge by the project and agree to deliver a certain number of qualified and interested candidates for a set price. ● Charge by the hour plus take percentage of the fee upon hire. ADVICE - Per hour tends to deal but make sure approximately how many estimate for the project. Remember to ask if phone included or are additional.

be a better you ask hours they charges are

WHAT TO SUPPLY TO THE CONTRACTOR ● A complete briefing. For best results, they should have all the information you have. ● Discuss any sensitive issues in the search. ● Target company list. ● Job title, function and level of individuals you are looking for. ● Agreed job description, reporting structure, corporate culture and a point of contact. ● Agree realistic deadlines. ADVICE - Listen to their feedback, be responsive and keep the lines of communication open at all times. CHECKLIST SUMMARY - IS THIS CONTRACTOR RIGHT FOR YOU? Integrity and ethics Ask for references. They will be representing you. Off-limits If any, does this extend geographic boundaries, subsidiaries and divisions? Long term relationship Is there a mutual genuine desire to build one? Quality of research Focus on tenacity of the researcher, thoroughness and attention to detail. Sector knowledge How many successful searches in this sector? When? Area of expertise Function, level, industry sector Cost Per hour, per day, per project (if so, how long), phone charges included or extra? Receiving Data How will it be delivered and in what format? Progress Reports Are any included or can this be arranged? If so, how often? FINDING A GOOD CONTRACTOR It can be difficult. Get a referral from someone or go through an organization such as the ESR. Executive Search Roundtable’s annual ‘Directory of Independent Research &

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Search Consultants’ is available for purchase through the association’s website (http://www.esroundtable.org). This contains a guide to all services Search Contractors offer and is listed by industry, functional expertise and geographical area too. THE CLIENT VIEW “I have to have confidence that when I get ID work it is accurate and that if it is not complete, the researcher has made me aware. When I go to a client and say that we have contacted every person within a specific department or a given company, I have to know I am giving a accurate and complete picture or my own credibility is at stake. Once I see a trend of a researcher to represent inaccuracies, I can no longer trust that person and eventually I don’t use them. Bottom line, good accurate work makes me look better to my clients.” “Give them (the contractor) a

sampling of your target companies and let them work on that for a brief period. If you like the results, engage them for the full search.” “I have learned to place incredible value on the relationships that I have with the researchers who have produced for us.” THE CONTRACTOR VIEW “Simply the fact that someone has chosen to work as an independent connotes an energy level, entrepreneurialism, ability to organize and manage one’s time and resources. There is a skill in working with limited direct supervision, and a desire for psychological, emotional and financial success.”

www.search-consult.com

For more information, contact: Web: www.SearchTalentGlobal.com

This is the first in a series of articles researched and written by Tory Clarke (President of Executive Search Roundtable) and Georgina Tremayne (Partner at SearchTalent), with input from ESR members. The Executive Search Roundtable (ESR) is an international association of recruiting professionals dedicated to research and search execution. Founded in 1979, ESR membership encompasses professionals from executive search, corporate recruiting, and the independent consultants serving them. www.esroundtable.org SearchTalent is an international consultancy recruiting search professionals into search firms. Expansion from Partner placements to other search roles is made possible by the newly forged links with ESR members.

New Partnership Announcement Executive Search Roundtable &

SearchTalent New Service for Search Professionals and Search Firms Executive Search Roundtable (ESR) is a not-for-profit association with an international membership of recruiting professionals dedicated to research and search execution. It provides a variety of programs and services, best practices, professional development, and networking opportunities. SearchTalent is an international consultancy recruiting search people into search firms. The link between the two organizations will provide an extended and much needed service focusing on Researcher, Recruiter and Associate level Career Opportunities. Search firm clients will be introduced to a broad spectrum of ESR members who sign up to SearchTalent’s service.

FOR MORE INFORMATION: www.esroundtable.org www.SearchTalentGlobal.com Executive Search Roundtable Tory Clarke, President +1 (212) 894 8300 Tory.Clarke@wmann.com

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SearchTalent (US) Georgina Tremayne +1 (201) 795 5168 AMtalent@search-consult.com

SearchTalent (EMEA) Alex Jenner-Akehurst + (44) 20 8422 9845 EUtalent@search-consult.com

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TMP Worldwide:

New Split Critical

for

Future Growth

MP Worldwide recently announced that the new publicly traded company, that is being formed through the spin-off of its executive search and eResourcing business units, will be called Hudson Highland Group and will be trading under the ticker symbol “HHGP.” The spin-off company, whose plans were originally announced in October of last year, should be completed by March 31, 2003. With an employee base of 4,000 and covering 29 countries, Hudson Highland Group will consist of three divisions: TMP/Hudson Global Resources, TMP/Hudson Human Resource Consulting and TMP/Highland Partners. The two enterprises of TMP/Hudson Global Resources and TMP/Hudson Human Resource Consulting will work together to assess, recruit, and develop talent to optimize their clients’ businesses. At the top end of the recruitment services spectrum, TMP/Highland Partners will

recruit at the CEO, COO, CIO, CFO and Board of Director level, as well as senior level operations and staff positions. Over the next two years, the company intends to phase out the “TMP” name from this new company. Meanwhile, TMP Worldwide will remain a stand-alone corporate entity comprised of Monster, Monstermoving, Advertising & Communications and Directional Marketing. As a result, TMP is hoping that each enterprise will be better positioned to focus on its core businesses and competencies, and thus compete more effectively in their respective markets. “We’ve spent considerable time and effort engaging internal and external specialists to arrive at a name that we all believe will best serve as our new corporate identity and enable us to clearly distinguish ourselves within the staffing and search industry,” said Jon Chait, Chairman and CEO of Executive

By Pilar Gumucio

Search and eResourcing, who was appointed last October to oversee the spin off. Mr. Jon Chait is an industry veteran and has held numerous leadership positions within the recruitment industry, including CEO of Spring plc, and CFO and Managing Director of International Operations for Manpower Inc. SENIOR MANAGEMENT In order for this new company to operate, key senior management has already been designated. TMP has promoted President of Executive Search of North America, Michael Kelly, to the position of Global CEO of Executive Search. Jon Chait commented, “Mike has displayed outstanding leadership to the North American Executive Search group in the last year. I have been truly impressed with his leadership, team attitude, recruiting skills, and his integrity, and I can think of no better

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person to lead the new global search entity than Mike.” The company has also created a new Executive Search Board of Directors to oversee that side of its operations. Three Regional CEOS have been appointed as they will also serve on the Board of Directors with Michael Kelly. John Wallace, previously serving as COO of Executive Search in North America, becomes CEO of North America. Andrew Simpson, most recently President of Executive Search in Europe, has been elevated to CEO for Europe. Dan Dumitrescu, who was President of Executive Search in Asia and was formerly leader of the Advanced Technology practice throughout Asia Pacific at Korn/Ferry International, takes on the role of CEO of Asia Pacific. “I could not have asked for a more experienced management team. I have worked with John, Andrew and Dan for more than a year now, and their leadership skills and the depth of their experience continually impress me, noted Mr. Kelly. The Hudson Highland Group has also appointed Richard W. Pehlke as Executive Vice President and Chief Financial Officer of Hudson Highland Group. Mr. Pehlke who has over 27 years of corporate financial leadership experience, will be responsible for all financial functions of the corporation and will also serve on the Board of Directors. He comes from having served as chief financial officer of a privately held technology services company and as president of a consulting business. PAST PERFORMANCE Earlier this month TMP Worldwide

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reported a net loss of $51.1 million compared with earnings of $17.9 million a year earlier. Total commissions and fees for the entire calendar year ending on December 31, 2002 were $1.1 billion, a 21% decrease from total commissions and fees of $1.4 billion announced a year earlier. The breakdown reveals that TMP Executive Search reported total commissions and fees of $66.9 million, a 39% cut from $109.4 million for the prior year period. Meanwhile, Monster’s commissions and fees were $416.6 million for the calendar year, depicting a 22 % loss from $535.8 million for the prior year period. TMP also announced a charge of approximately $100m to reorganize the business in connection with the spin-off of the eResourcing and executive search businesses. The company has further refined the amount of the charge to approximately $115 million, of which $40 million will be non-cash. “We operated in a difficult market during the year, as the continued overall slowdown in the global economy and job markets have reduced volume, particularly in our staffing business,” said Andrew J. McKelvey, Chairman and CEO of TMP. OUTLOOK Many are watching the spin-off with interest as the overall recruitment market remains very challenging in the short term. Although TMP expects “the difficult and challenging market conditions that it experienced in 2002 to continue into 2003”, the firm’s “operating and financial priorities for this year will focus on realizing operating efficiencies across the

entire organization.” In a juncture in time where uncertainty prevails and a volatile economy underlines the corporate environment, TMP remains optimistic about the potential earnings both companies can provide. TMP believes that “This natural teaming of our business units into two separate companies will better align our resources around our clients and enable these enterprises to more effectively leverage their respective assets and maximize value for their customers. This separation also eliminates the perceived conflict-of-interest between the staffing industry and our Monster and interactive offerings.” TMP has clearly selected the name of the new company, defined its objectives and strategically placed the senior executives to be able to push the new company forward. Now it is just a matter of wait and see - see if the clients, candidates and fellow executive recruiters have the same faith in “The Highland Group” that its creators have proclaimed. Michael Kelly sums it best when he said, “I am sincerely honored at the opportunity to serve as Global CEO, and am truly excited about our prospects as we evolve into a global search organization. We have taken this year to focus on the strength of our sectors, and have made strategic additions to our team. We are ready for the market turnaround and will have the advantage when it does.”

www.search-consult.com

For more information, contact: Web: www.tmpworldwide.com

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A Lawsuit Against Heidrick & Struggles:

A Time of Reflection? By Pilar Gumucio ount Sinai Medical Center has filed a fraud lawsuit against Heidrick & Struggles, claiming the executive search firm hid the tarnished track record of the hospital’s former CEO, Bruce Perry. Although the claims are being disputed by Heidrick & Struggles, the story has sparked the interest of many. Heidrick & Struggles is considered among the top and largest search firms in the world. Moreover, this event has occurred at a point in time where the Corporate World is in the midst of an economic downturn and suffering the effects of a Corporate Governance Crisis. As a result, the ethical conduct and performance of some executives are being questioned as confidence levels continue to diminish. The specifics of the case are that Mount Sinai Medical Center filed a fraud lawsuit against Heidrick & Struggles in MiamiDade Circuit Court in mid December, claiming that Heidrick & Struggles knew or should have known about Bruce Perry’s past performance before recommending him for the hospital’s top job in 1998. Mount Sinai Medical Center, one of Florida’s largest hospitals, said that

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Heidrick & Struggles had given glowing reviews for Bruce Perry’s work at Children’s Hospital in the District of Columbia and Community Hospitals of Central California in Fresno. The lawsuit said Mr. Perry left both hospitals in bad shape. Yet at the time the hospital hired him, they were not aware of this information. The lawsuit blamed the loss on “the incompetence of Mr. Perry and his staff, many of whom had been hired through the efforts of Heidrick & Struggles,” and “Perry’s complete inability” to run a hospital of Mount Sinai’s size. Eric M. Sodorff, Manager of Communications at Heidrick & Struggles, stated, “We fully intend to fight these claims vigorously because we strongly believe there is no basis for it. We are proud to have earned a reputation that has always been based on excellence in building leadership teams.” It is important to remember that for 50 years, Heidrick & Struggles has specialized in senior-level management search assignments for a broad spectrum of clients worldwide. In various market reviews conducted by search-consult,

Heidrick & Struggles has repeatedly ranked among the top three search firms, respected by their colleagues for their integrity and successful placements. WHERE SHOULD THE RESPONSIBILITY LIE? Whether Heidrick & Struggles should be liable or not, is not the focus of this article. The idea is to look at the bigger picture and see what is happening in the Corporate World. For many, the pending lawsuit serves as a clear example of some of the effects that the crisis of governance, in conjunction with a bear market, is beginning to have on the search industry. Currently, the conduct and performance of some top executives are obviously in the spotlight. As a result, questions arise, such as when a top executive does not perform his or her best, who bears that responsibility? Is it the search consultant that advised him or is it the client for hiring that person? Christopher Clarke, President of Boyden gives us his opinion on this matter. It is evident that a search consultant’s role is increasingly becoming more

visible as thousands of successful searches and satisfied clients are favourably publicized. The media reports on the latest trends within the search industry, conducts rankings and surveys, as well as informs who has left what search firm and who has created a new one. By the same token, it is logical that public interest will also be keen on information regarding an unsatisfied client, such as the case against Heidrick & Struggles appears to portray. Within this context, the advice given to a client by a search consultant does have enormous weight. “It would be foolish to comment on the merits of a particular case without all the facts. Yet it is important to remember that search is not a 100% exact science, so there will always be cases of failure. It is unreasonable for search firms to simply wash their hands of any malfeasance or weak performance by those they recommended. If search firms are negligent in reference checking or in their evaluation, and their recommendation was given weight by the hiring organization, then there are clear legal liabilities. If search firms do their professional best and there is still poor performance or malfeasance in many cases where they are involved, then their judgment and value should be questioned.” Clarke added, “The client does the hiring and is responsible for the governance of individuals once hired. Usually, clients use search input to help make their decisions, this does not absolve them from ultimate responsibility.” WHAT IS THE IMPACT? Executive search has relatively been unscathed by lawsuits, most remaining private and being settled out of court. Yet as executive search is becoming increasingly more visible and obtaining a higher profile, the possibilities of being sued also increase. Although there have been an explosion of corporate scandals that have implicated investment banks and audit firms, Clarke noted, “Interesting enough, no search firms have yet been implicated in the

major cases, such as Enron, World Com, Tyco and Sprint. Why is this? Is it because these firms did not use search firms for those top positions or is it that search firms rarely get sued because there are bigger targets to pursue? In America, litigation is about the chances of success or failure in forcing a settlement. It has nothing to do with what is right and wrong. Search firms will get sued if the client thinks they can extract cash from them. The bigger firms will therefore be sued more than the smaller ones.” In a bear market, there is more pressure to get the best and most professional job done. For clients, this means that they are caught in a dilemma: on one hand they must cope with the need to lower costs while simultaneously boosting productivity and revenues. Clients are becoming more selective in the way they use search as many are reducing the number of preferred suppliers or at the very least, reviewing the terms and conditions of their current contracts. Clients’ requirements are becoming more specific and demanding as the level of competition among search firms intensifies. Therefore, their expectations are greater as they are placing more demands on the search industry to get them the very best executives. For search consultants, it serves to raise the sensitivity levels and raise the standards of conduct. QUALITY IS KEY Clarke described, “During the bubble years, some search firms over expanded and did not train or supervise their own new hires well enough. They let their quality control, ethics and reference checking slip. The pendulum has swung rapidly back and now search firms are going back to what they should have been doing all along. Search consultants and clients, alike, are focusing on ethics, values and behaviours, which meet the new climate of rigorous standards.” The days of doing one off transactions are gone as search consultants must increase background checks, improve their assessment skills, and rely more on

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consulting services to stay close to their clients. Although strong personal relationships have always been vital in search, the economic downturn and the growing distrust in large corporate institutions have made clients demand that trustworthiness be embedded if a personal relationship is going to continue. In fact, the top search firms are the ones that add value, perform consultancy services, are relationship-driven, able to demonstrate product expertise and provide a consistent top quality service. As part of an ongoing effort to heighten the awareness among consultants, clients and candidates about what is best practice in high-end executive search, the AESC (Association of Executive Search Consultants) is constantly reviewing the standards of its Code of Ethics and Professional Practice Guidelines and it has recently re-established a new supervisory Committee on Ethics and Professional Practice. This professional association strives to educate corporate executives and consultants as it holds high quality courses and workshops to better interviewing techniques, enhance assessment skills, and review corporate business practices and procedures. In sum, this lawsuit against Heidrick & Struggles has highlighted the growing distrust that is apparent in the Corporate World. Whether it is as a result of corporate scandals, a CRISIS OF Corporate Governance, the economic downturn or the enormous uncertainty for what lays ahead, the end result is that clients are demanding excellence and trustworthiness to be ingrained in their relationships with search consultants. Under today’s conditions, there is no room for error as past performance and satisfied clients spread fast and serve to generate more business. The successful ones will remain on top, while the others will definitely have to review their standards of conduct.

www.search-consult.com

For more information, contact: Web: www.heidrick.com

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By Peter Felix othing focuses the mind like a threat or challenge. It is true of nations - it is true of individuals, it is true of professions. The past several years have been dog days for all professional services, not least of all executive search. A slump in demand has lead to aggressive selling, penny-pinching clients and a feeling of frustration on both sides of the search equation. Enron and the corporate governance crisis have just added fuel to the fire. The focus on professional service firms which did not perform as expected or whose ethics may have been questionable has rubbed off on all professions. Executive search is no exception, and why should it be? We do after all deal with the most sensitive and confidential issues. The significance of top management hiring is felt all the way down through the organization chart and into the public marketplace. This is important work and needs to be done well and with adherence to the highest professional standards. When it is not it deserves to be the target of approbation. So the pressure is on. How should the profession respond? Panic, price cut to oblivion, offer contingency candidates, change the wrapping of the service and

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pretend that it is something else. Surely the answer is none of the above. Executive search consulting has come of age and is now broadly recognized as a key management tool without which many top managers could not, or would not wish to, run their organizations. With this coming of age comes responsibility and accountability. With it also comes maturity and the confidence to act professionally. If executive search is a profession then it must behave like one

â&#x20AC;&#x153;If executive search is a profession then it must behave like one and be seen

adding value to those who put their trust in it.â&#x20AC;? to be

and be seen to be adding value to those who put their trust in it. Although times are hard for this business most consultants are in it because they want to be in it and want to spend their working lives providing a professional service. Part of the satisfaction of being a search consultant is doing a quality job and being

recognized for that fact. If the relationship with a client is being marginalized either because the client is under such pressure that he wants to treat executive search like a commodity or because he has lost respect for the value added, then it may be an excellent time to re-evaluate that client relationship rather than change the nature of the service. Clients are unlikely to compromise on quality - regardless of the price paid, the client is not expecting discounted quality. This is a slippery slope that goes to the very core of professionalism. No-one can legislate to raise the bar for a profession. But professional pride and standards can be developed, promulgated and beaten into the organizational culture, such that they become a second sense. Professionalism can also be conveyed to the client buying the service. Some clients will take pride in using a firm because of its global reach, its brand name or because of its niche specialism. In other words, the consultant and the firm reflect upon the decision maker in giving him or her a good feeling that they chose the right firm. The feeling of having got a firm on the cheap is less certain to be a satisfactory one.

The executive search profession will come out of the current recession smaller, more focused and possibly less sure of itself, but hopefully not. My firm belief is that the quality firms and consultants that remain should feel more confident of their ability to add value and should stick to their guns in providing core quality executive search services. Add on services are fine and in some cases will make good sense. However, a thinning of the proposition or a move away from the core business may only leave the client confused and without a firm center board to his relationship with the search firm. In this time of crisis and turmoil, the AESC is pursuing its goals of promoting the core values of executive search and helping to raise visibility for quality search around the world. Professional standards are important to clients, even more so given the insecurity of recent times, and we firmly believe that they will gravitate towards firms who demonstrate a

commitment to them. AESC membership is the only form of quality accreditation that exists in the executive search profession - a fact increasingly becoming known to hiring organizations that have plenty of choice when it comes to selecting firms to work with. As the professional association for executive search, the AESC can offer a seal of approval for our member firms. But we can do more than that - we can build a body of knowledge and skills that go to the core of what professional executive search is all about, and by offering it on a standardized basis around the world. This we have now started with our major new initiative - AESC Campus - our new web-based education and training service for executive search professionals. Employing a combination of different delivery systems -classroom, on-line and conference call - AESC Campus will embrace the core competencies of executive search and begin to build the

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basic training blocks required for excellence in this business. There has always been a need to fill the training vacuum for executive search professionals but today it is more important than ever. As the profession comes under increasing scrutiny there is more need to ensure quality and professional performance. As time and cost pressures increase the ease and facility of distance learning meets many needs. This major step in AESC service will benefit our member firms around the world and bring them closer to what we see as the AESCâ&#x20AC;&#x2122;s core mission promoting excellence and best practice in executive search around the world.

www.search-consult.com

For more information, contact: Web: www.aesc.org

ISSUE 15 2003 search-consult

Search Focus We cover the world, but have unequalled local expertise. With over 30 years of experience in 38 countries, Ray & Berndtson is a global leader in search.

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The Americas

Europe

Pacific Rim

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Ke y m o v e s i n E xe c u t i v e S e a r c h DHR International announces the following

joining DHR, Mr. Novak was Co-Founder and Vice

of the firm’s New York office. In his new role, Mr.

appointments. Nicholas Rogish joins as Executive

President Sales of Sendouts.com, a provider of

Trum, who joined the firm in 2000,

Vice President of the Healthcare and Life Sciences

management software for the executive search and

responsible for WJM Associates’ Human Resource

Practice and Managing Director in the firm’s

staffing industry.

Services,

Columbus office. Previously, Mr. Rogish was

including

Executive

will be Coaching,

Assessment and Recruitment, Organizational

President and Founder of Rogish Associates,

TMP Worldwide Executive Search welcomes

Effectiveness

which was recently acquired by DHR. Franklin K.

Lynne Boehringer and Betsy Tilkemeier. Ms.

Consulting.

Brown is named as Executive Vice President and

Boehringer joins as a Partner of the Healthcare

Managing Director in the firm’s New York office.

sector and Legal Practice in the firm’s Chicago

Stanton Chase International hires Nancy Keene

Prior to joining DHR, Mr. Brown was the Managing

office. Ms. Boehringer previously served as a

as Director in the firm’s Dallas office. Ms. Keene,

Director of the Global Financial Services Practice of

Consultant at Egon Zehnder International where

who comes to Stanton Chase from Ambler

Horton International, which is now Leaders Trust

she was a member of the Life Sciences Practice.

Associates, will handle assignments in the

International. Fred J. O’Connor becomes Executive

Ms. Tilkemeier joins as a Partner in the firm’s

Industrial, Technology and Service sectors.

Vice President and Managing Director in the firm’s

Chicago office and a Member of the Retail and Corporate

Ms.

Princeton, NJ-based executive search firm Ken

Chicago office. At DHR, Mr. O’Connor will focus on

Tilkemeier previously served at Korn/Ferry

Clark International opened a Boston office in

executive search assignments throughout North

International, where she most recently served as

Waltham, MA and has added Keith Gaspard as

America and Europe. Mr. O’Connor most recently

a Client Partner and led the firm’s Midwest

Managing Director. Mr. Gaspard, previously a

served

Corporate Communications Practice.

Partner in the International Technology Practice of

Partner

DiamondCluster

International, where he focused primarily on risk management advisory, insurance brokerage and post merger integration management. DHR appoints Jim Loose as Executive Vice President in the Retail/Consumer Practice. He will be based in the firm’s Dallas office. Mr. Loose was previously Owner and Founder of Galloway-James. Lance Winn joins as Executive Vice President in the firm’s Austin office. Previously, Mr. Winn served as a Principal in the Advanced Technology Practice of Korn/Ferry International. Adrianne Kalyna is named Executive Vice President in the Chicago office, Prior to joining DHR, Ms. Kalyna was a Principal with Martin Partners, where she developed

extensive

executive

Communications

Practices.

and

Corporate

Governance

Heidrick & Struggles, will also continue to build Brian M. Sullivan, the former Vice Chairman of

and lead the firm’s Technology Practice nationally.

Heidrick & Struggles International, has rejoined the firm as a Special Advisor to CEO Piers Marmion.

Steven H. Maxwell has joined The Onslott Group

Mr. Sullivan had left the firm in February 2002 for

as President. Mr. Maxwell comes from the

personal reasons and will now be returning in a

Technology

part-time role. Mr. Sullivan will be advising on

Associates, where Mr. Maxwell worked with a

special projects in the areas of Marketing, Client

broad array of technology companies, ranging from

Development and Expansion, and Public Relations.

early stage start-ups to established global

Mr. Sullivan merged his private recruiting firm,

corporations.

Sullivan & Company, with Heidrick & Struggles in 1999, and since that time the financial services practice at Heidrick & Struggles has grown into one of the firm’s largest practice area.

recruiting

Practice

Russell

Reynolds

Boston, MA-based executive search firm Conley & Company has appointed Michael A. Ahearn as a Managing Director. Mr. Ahearn has more than 25 years of search experience, most recently serving

experience across a broad range of industries,

Heidrick & Struggles has also appointed Jory J.

as the Recruiting/Human Resource Partner at

including manufacturing, high tech, and service-

Marino as Managing Partner of the firm’s Global

Charles River Ventures. Prior to that, Mr. Ahearn

based companies. DHR welcomes David Conner as

Chief Information Officer (CIO) Practice. Mr. Marino

served as a Partner of the Boston office of executive

an Executive Vice President in the firm’s Denver

has more than 25 years of executive search

search firm TASA Worldwide..

office and as a member of the Healthcare and Life

experience and joined Heidrick & Struggles in

Sciences Practice. Mr. Conner was previously the

1999, after the firm merged with Sullivan &

Corporate Vice President Human Resources of

Company, where he served as a Senior Managing

Centura Health, a $1 billion health system with

Director.

12,000 employees. Dennis C. Muchmore joins as Executive Vice President in the firm’s Lansing

Jennifer Bol joins Spencer Stuart as a Consultant

office. Mr. Muchmore will work with corporations,

in the firm’s New York office and a member of the

public institutions and non-profit organizations to

Life Sciences and the Not-for-Profit practices.

recruit and retain high-level executives. Most

Previously, Ms. Bol was a Partner at Heidrick &

recently, Mr. Muchmore served as Senior Partner

Struggles.

and Founder of Muchmore Harrington Smalley and Associates, a Michigan-based public affairs firm with offices in Lansing and Detroit. Christopher M. Novak is appointed as Executive Vice President and a member of the firm’s Technology Practice. He will be based in the firm’s St. Louis office. Prior to

John Weigold has joins Canny, Bowen as Managing Director. Mr. Weigold previously worked at Heidrick & Struggles, and will focus on seniorlevel assignments in the private equity, industrial and technology industries. Caliber Associates, a retained executive search firm providing services exclusively to the Life Sciences Industry, has appointed Robert J. Glaser as Senior Vice President. Mr. Glaser has over 25

New York City-based executive search firm WJM

years of experience in the pharmaceutical and

Associates has appointed Charles D. O’Dell, former

biotechnology industry, most recently serving as

CEO of Sodexho Marriott Services, as President and

President of the McKesson Pharmaceutical Partners

COO. Mr. O’Dell succeeds John P. Finnerty, who

Group.

becomes Vice Chairman of the firm. Meanwhile, Kip Trum has been promoted to General Manager

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

ISSUE 15 2003 search-consult

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experience or market changes. 4) MANAGE BY WALKING AROUND One great way to gather details and remain up-to-date is through walking the halls, listening and observing. All managers must know each of their direct reports, from the CEO down. Talk to them about their work, what they enjoy and what bothers them. Make sure that everyone has an opportunity to talk with you, not just “your favorites.” Most managers have a certain style, and the way they use their skills on a day to day basis is what develops company culture. This is a top-down dynamic and it’s a rare company that can succeed with clashing cultures. 5) CONSTANTLY SOLICIT INPUT It almost doesn’t matter how you do it weekly “all hands” meetings, suggestion box, email forum, open-door policy - as Nike says “just do it!” Make sure that everyone knows the company is sincere about employee involvement, and that their input is welcome. Combine this philosophy with “manage by walking around” and most issues can be identified and resolved before they turn into serious problems. 6) INTERNAL OPERATIONS: MAKE SURE THAT ALL OPERATING DIVISIONS HAVE THE SAME INFORMATION What! You say, “How can that happen?” By not communicating goals and objectives of each department and the company as a whole. It doesn’t matter how large or small the company, if people aren’t working together toward appropriate goals, frustration and discontent will eventually prevail. Now that you understand the common message - tell everybody about it! 7) ARTICULATE COMPANY VALUES AND GOALS Isn’t it frustrating to work hard at something and not know how you’re doing? Or not even know if what you are doing matches the goals of the company? Marcus Buckingham wrote in his excellent book First Break All The Rules: What The Worlds Greatest Managers Do Differently (Simon & Schuster, 2000) among his 12 questions that

define what employees want, number one is, “Do I know what is expected of me at work?” This excellent book should be mandatory reading for all managers, as it really defines the key components of employee retention. 8) TELL EVERYONE HOW THEY ARE DOING Because both the deliverer and the receiver hate reviews, often they are either not done, or done improperly. If the company has recruited wisely, compensated fairly, worked hard to develop a positive culture, communicated well internally and put forward goals and values, the remaining element must be to give each person a personal evaluation. Hard to do? You bet it is. Are there difficult conversations that must be undertaken? Yes. But if a company does not tackle difficult situations, the message can be quickly interpreted that the company doesn’t care. Protect those that care about their jobs, and work hard in addressing problems. Whatever you do about employee turnover, don’t ignore it. If your employees are not where they want to be professionally, provide an opportunity where they feel safe communicating to you. Then, find a way to make a new place for valuable employees within the company. If you don’t make them feel secure and challenged, they will leave in search of greener pastures. You will not only have lost top talent, but also the knowledge and experience they gained at your company. Ken Campbell is President of WAGIC INC (www.wagic.com) a consumer products company with product design, engineering, manufacturing and distribution services. Formerly he was founder, CEO of Centegy Corporation, a supply chain software company and a co-founder of USWEB Corporation. He has 25 years experience in building channels for high-technology and consumer products.

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Leadership challenges faced by

Corporates

Emerging Economies

By R Suresh n highly developed economies such as US, Europe, Japan and the likes, corporate performance, and the performance of individual business units are systematically assessed. CEOs and the direct reportees to the CEO are accordingly rated, groomed & deployed. Invariably the succession is planned, resulting in either a timely initiation of lateral hiring process or an internal grooming process for identifying the next CEO. However, in developing countries with emerging economies, even the top corporates at times, have processes which are fragmented, leading to tremendous amount of challenges for achieving effective leadership. The article here below summarizes some of the core issues.

Currently, there are two types of CEOs in the developing economies such as India, China, South American & East European countries. The first category type A, are CEOs who are tough with the times, flexible, charged with many-anammunition to strategize and lead the businesses into the foreseeable future (say 5 years). The second, type B, are the embattled ones, who are qualified alright but have lost the momentum somewhere along. They are clinging on to their roles since their corporate boards or the promoter groups still see succor in them or there is pretty much no viable alternative. If you now want to fast forward into future, the leadership solution seems obvious. Prop-up, motivate and aggressively encourage the

type As while gradually but firmly replacing the type Bs. However, deep down, the solution is easier said than done. The corporate and itâ&#x20AC;&#x2122;s leadership dynamics are far more deeply embedded in the organization, its people, the formal & informal processes that these challenges have to be addressed by the Board with a firm grip. This leads us to believe leadership development, deployment & succession planning is beyond the realm of a formal HR system of compensation, motivation, performance management etc, which are more aptly applicable to the middle & entry levels of organization. The leadership issues are the preoccupation of the Chairman, the Board and that of principal stakeholders. No surprise that

ISSUE 15 2003 search-consult

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chairmen of global corporates including some of the Indian corporations spend a lot of time spotting & luring talent both from within and outside. The mute question from hereon is how does the Chairman handle the leadership issues in these turbulent times; here are few insights carved out of our assignment experiences.

R Suresh 1. HEART-HUNT THE TYPE As, BEFORE THEY’RE HEADHUNTED: Type A leaders have abundant positive energy. They are invariably attuned to global market realities surrounding their enterprise and the industry. At times, though rarely, they are also good team managers and not individualistic and hence can make their business units and functional groups align with the central thought process. Obviously, the type A CEOs are in paucity, and hence have highest probabilities to be picked-up by other competing organizations. The signals emitting from them will always be encouraging, but they may spring a sudden surprise by calling on the Chairman and announcing their decision to move out. If they move-out the organization has not only lost an able CEO but has a whole lot of ‘stunned senior & middle management’ members who form their own-opinions on how best the situation can be handled. It’s here the Chairman should pre-empt the

search-consult ISSUE 15 2003

situation and ideally earn the loyalty of the CEO or atleast holdout a larger-bait to him/her for future development. Beyond the conventional HR measures, such CEOs should be made to feel like co-stake holders, by providing seats on the Boards, maybe with equity-options, generous performance linked payments and above all, treating them as extended promoter-family members. The promoter or the Chairman should be genuinely concerned and display the concern in the well-being of the CEO and his family. In tough and good times alike, the CEO should be treated with respect and not side-stepped, so as to ‘win-his-heart’ before somebody ‘hunts-his-head’! 2. PLAN SUCCESSION FOR TYPE Bs: Type B CEOs invariably engage themselves in lackadaisical activities, they are seen more often involved in internally focused programs rather than external revenue generating initiatives. You may see them heading long-winded task forces on Quality, HR (travel policies!), ERP-implementation, and a whole host of functional subjects, when there are burning business issues of market share, pricing & margins, new

“.... the CEO should be treated with respect and

so as to ‘win-his-heart’ before somebody ‘hunts-hishead’!”

not side-stepped,

products, value-chain, global trade opportunities, M&A and such issues. Type B CEOs place too much emphasis on their past success stories and examples. They somehow realize that they’re running out of steam and while presenting a committed face, they simultaneously explore opportunities outside. It’s here the Chairman should counter them, communicate the Board’s intention to replace, plan their exit

time-lines, involve them in successor identification and most importantly design their exit-benefits in order that they do not feel their past is not valued. 3. FINDING SUCCESSOR FOR TYPE B: Generally speaking, potential successor would’ve got stunted or buried if not ejected out if there are type B managers holding reins of corporate organizations for longish tenure as general apathy would’ve crept-in. Lateral hiring of a CEO emotionally in line with the hiring organization is recommended, instead of hiring someone who’s ‘super-cast’ alright but feels that he’s too good for the hiring context. To come to think of it, the next CEO may not have been a CEO at all, he may come from one-level below in competing organizations (or in some cases from within the organization). Induction of the new CEO and exit of old CEO should be planned to accuracy with a fair amount of overlap to ensure no shocks occur! 4. REGROUPING TEAM UNDER THE TYPE A CEO: Whether you have a new CEO or the current type A CEO, its mandatory that you pepper the rest of the organization with bright managers who have confidence and fire to execute their roles. They should all be future type A CEOs. There are certain essential pre-qualifying characteristics which are sought in them: globality (abilities to conduct biz in global context), use of technology to reduce costs & improvise biz processes, operational excellence, fired-up all the time to position & market their products, services and other offerings and above all zeal at heart. This regrouped or rejigged team will energize the corporate, pressurize the CEO to take decisions quickly and strive to meet the goal set by the stakeholders.

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World of Search

In this issue we ask our panel to discuss their views on generalism vs. specialism

USA

Thomas L. McLane & Ryan W. Eckel The Directorship Search Group

Marcus Stafford Antesi

Jim Cinquina Merlin international

Clients these days seem to be overly focused on the length of a search firm’s list of completed assignments in increasingly narrow niches. There is a perception that, for example, if a firm has completed 50 searches for CFOs of medium-sized pharmaceutical companies, the 51st search will be a cakewalk, and the client will be the beneficiary of the search firm’s redundant experiences. Unfortunately, this way of assessing search firms’ capabilities tends to de-emphasize the “art” of conducting a search. It is too easy for specialist firms to be lulled into the regurgitation of candidates for several similar searches. Although this allows for quick generation of candidate names, clients often receive background on candidates who were passed over by their competitors. A consultant’s excessive reliance on the database can cause a client’s relationship with a specialist firm to sour after the first one or two searches, when fresh new candidates fail to surface. Generalist firms, on the other hand -and particularly boutiques - will typically conduct original research and put fresh thinking into every new assignment. A talented search consultant will be able to take this research and assess the characteristics that will ultimately enable the candidate to be successful, which include “fit” with the client company culture, personal values and ethics. Furthermore, a generalist firm can draw on experiences in other industries. For the same reasons diversity in thought is important in the workplace or boardroom, it is important when conducting a search. Of course, a consultant’s technical knowledge of the industry or function is important in many assignments. Accordingly, even most generalist firms are organized in groups of industry expertise. At the end of the day, however, there is no question that it is the original work and the ability of a consultant to conduct a quality search that will bring the best candidates to the client.

There is a growing trend that appears to favour specialist firms. In fact, our clients do not want to be the training ground for searches. They want to be able to count on a specialist firm that has in-depth understanding of the technology industry and can comprehend the different sectors in which technology is applied in the markets that they operate in. One must know the industry and that means following the complex dynamics of the technological sector as well as the company’s. It also means knowing who the competition is, being able to compare employee benefits as well as provide other vital market intelligence that is the added value that specialist firms can provide to their clients. This same information is vital for consultants as this knowledge helps us provide the best candidate because we concentrate all our efforts in studying and analysing the ICT market, establishing and maintaining our network and periodically updating our databases. With experience, specialist firms develop an innate understanding of their industry and thus, have the appropriate knowledge, competence and responsibility to be able to identify the right candidate. There is no advantage in presenting a candidate unless one is confident that there is an excellent fit on all sides. More importantly, specialists have valuable criteria to reject wrong candidates, which very often is the hardest part of conducting a search.

Specialized search firms offer great advantages to candidates and clients because we understand and fulfil what they want from the beginning because our background, our skills and all of our resources are geared towards recruiting senior-level professionals in one specific industry. We are specialized in the pharmaceutical industry, and have been for over thirty years, so we know everyone and through the grapevine, are tuned in to the latest happenings and news. Our clients use our service because they know us and are repeatedly satisfied with what we deliver. We speak the language, understand the market and know everybody in the business. Our knowledge is unmatched by anybody because we have been doing only that for so long. This in turn, has lead to the development of successful long-term relationships throughout the United States and Canada. We know who to go to right away to find candidates and we can work much more quickly than anybody else can. Because of our many searches, most of the research has already been done. With such a large database, we can access candidates quickly and either recruit them or network with them rather quickly to bring in the most qualified talent. There is no beating around the bush. We get results immediately. With virtually no off limit restrictions we can recruit the strongest talent available.

Do you have a question for a future panel? Email editorial@search-consult.com 22

search-consult ISSUE 15 2003

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EUROPE

Andrew Ross Garner International

Patrick James Bruneteau Tess/B & Associes

Whether specialist or generalist, “off limits” is the real big issue that the search industry must address. The larger and more dominant a position a consultancy occupies in a given sector the less able it will be to deliver the best quality and range of shortlist. Today’s more enlightened client is typically more experienced, discerning and generally street-wise and therefore less inclined to be impressed by the consultant whose sole key USP is that they “know everyone who’s anyone in the sector”. One particularly savvy HR Director’s response to this tired boast is “So what?” What this client wants is a consultant who will: ● Add value ● Challenge, question and validate the brief ● Provide valuable external insight and objectivity ● Get to know and understand the organisation and its culture ● Deliver a quality shortlist from direct competitors and further afield ● Do so quickly and professionally ● Contribute on a broader front than the immediate assignment Being an industry specialist can also result in having too narrow a focus and mean the consultant is unwilling (or unable) to deliver candidates with broader and more varied experience: candidates who could bring different skills and a fresh perspective. Increasingly the more enlightened organisations are less interested in looking solely amongst their direct competitors and want us to find them the brightest and the best - wherever they may come from. The more personal and effective service must therefore come from a welldeveloped relationship between the client organisation and a smaller consultancy that predominantly only represents them in their particular sector.

One of the most important developments in Executive Search is certainly the specialized orientation that some firms have taken to become experts in one or two particular fields or sectors. It’s very attractive for clients and candidates to face consultants who are speaking the same language. The client may have the impression that he could be much better served by a specialized firm than by a generalist one. People often think that specialized executive search firms will have a deeper understanding or react quicker in completing a search than a generalist firm. I would emphasize that an experienced and qualified senior consultant for a generalist firm can do the job with more openless, more imagination and have more freedom than a specialized firm who could be confined in his own particular area. New information is quickly understood by generalist consultants and they have the added advantage of getting a much wider scope for giving their clients advise and conducting searches. Specific knowledge in a certain sector is, of course, a big plus but a good, intelligent, dynamic and well trained search consultant will quickly achieve this goal. The advantages that people may associate with specialized firms is the impressive databases dedicated to one or two functions or sectors. If the specialization is not too narrow, it could be a good choice for middle and middle-top positions for example in financial and marketing positions. One difficulty about specializations by sectors is that you must take into account that your market has its own borders and off limits. If some client’s firms are merging together, the hunting field becomes even narrower. As a

Patrick James Bruneteau

specialist firm you become more vulnerable as it is rather uncommercial to tell one’s clients that you are unable to hunt 40% or 50% of the market because all those firms are your clients.

ISSUE 15 2003 search-consult

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The Making

of a

Manager By Jorge E. Fernández eople can be taught certain managerial technologies, but not the fundamental human traits that convert the employment of those technologies into organizational results. An adult’s leadership capacity is virtually fixed by the time they arrive at the corporate doorstep. Simply put, people do not change much once they enter the corporate world and the changes that do occur are mainly due to a consolidation of inherent strengths. Therefore, it makes sense for companies to focus their resources on identifying leaders. The early identification of managerial talent is possible if organizations take personality seriously. The characteristics that enable people to learn to manage effectively can be easily measured but cannot be taught. Research concerning personality and managerial performance point to the following characteristics: (1) resiliency, (2) ambition (3) maturity, (4) powerorientation, (5) sensitivity, (6) organization, and (7) cognitive style.

RESILIENCY: Resilient people

are

not

easily

search-consult ISSUE 15 2003

frustrated or upset and they bounce back quickly from reversals and disappointments. Additionally, they manage stress well owing to their tolerance for ambiguity and perseverance in the face of difficulties. When one considers the demanding nature of managerial work, the capacity to remain calm, cool, and collected is fundamental to success. AMBITION: Marvin Bower referred to this attribute as the “Will to manage.” These people have great stamina. Their inner drive and competitive energy is spent on tackling organizational problems and achieving results. They show a willingness to take command and make decisions, qualities that are indispensable in a leader. MATURITY: These people are known for their selfcontrol and favorable attitude toward authority. Ben Franklin said it best, “He that cannot obey, cannot command.” Mature people get along with their superiors. This is important because a manager must be able to represent

his/her group upward in the organization and to gain support for his/her actions at higher levels. Self-discipline is also important, because managers need to curb their impulses, stay focused, maintain schedules and follow routines. According to Plato, “Self-control is the greatest of values.” POWER: Only those people who have a strong desire to influence the performance of others and who derive genuine satisfaction from doing so can learn to manage effectively. A manager to be effective must exercise power over his/her subordinates and direct their behavior in a manner consistent with organizational objectives. He/she must tell others what to do when this becomes necessary and enforce his/her words through positive and negative sanctions. When speaking of managers, David McClelland said it clearly, “Power is the great motivator.” SOCIAL SENSITIVITY: These people have the capacity for empathy. They are able to perceive the

subtleties of others feelings. Furthermore, they are able to cope with the emotional reactions that are crucial in gaining the willing cooperation of other people. Many intelligent individuals bright enough to learn the methods and techniques of management fail because their affinity with other people is almost entirely intellectual. They are emotion blind just as some people are color blind ORGANIZATION: These people are well organized. They retrieve key information readily, govern their own time, and keep their priorities straight. Bruch and Ghoshal, call them “purposeful managers.” Their research findings as reported in the Harvard Business Review indicate these managers are both highly energetic and highly focused. Accordingly, they carefully orchestrate their time by zeroing in on vital goals and committing themselves to there completion. COGNITIVE STYLE: Peter Drucker, says some people prefer doing things better while others tend to do things differently. These opposing strengths capture the basic differences in people’s thinking styles. Micheal Kirton, an authority on creativity, calls them the adaptor personality and the innovator personality. The adaptor is efficiency minded and seeks solutions in tried and understood ways. Mostly, they acquire depth of knowledge and usually are not promotable outside their area of expertise. On the other hand, the innovator is strategically minded and seeks to reconstruct problems and discover clever solutions. They are highly curious and seek breath of knowledge, which often makes them promotable or placeable outside their area. MATCHING TALENT TO TASK: Everyone knows experience is the key to the practitioner’s skill. Of course, managers are no exception to the rule. They are required to learn on the job how to take action and how to gain the willing cooperation of others in achieving desired

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results. What all managers need to learn is that to be successful they must manage in a way that is consistent with their unique personalities. Therefore, matching talent to task is essential. Mismatches are easy to detect. Typically, the person learns slowly, does not profit from repeated experience (monotonous plodding), loses self-confidence, and ultimately burns out. To avoid these costly mismatches companies should augment their selection methodology by using well-validated measures of personality. Namely, those that are designed for working adults, predict occupational success and do not discriminate. IMPLICATIONS FOR MANAGEMENT DEVELOPMENT: Organizations need two kinds leadership to function properly: (1) strategic management, and (2) operational management. The work of leadership expert John Kotter shows us that strategic leaders concern themselves with establishing direction, aligning people, and motivating others in order to produce change. Conversely, operational leaders concentrate on planning and budgeting, organizing and staffing, monitoring and problem solving in order to produce consistency and predictability. Not surprisingly, only a few exceptionally talented individuals excel at both. As Kotter has noted, the core activities are simply different. Naturally, an organization needs to grow both kinds of leaders. Since experts agree that leaders are not created in the classroom then on the job experience becomes the developmental vehicle of choice. For instance, if a managerial position requires expert knowledge, consensus building, strong tactical skills, or handling of crisis then someone with an adaptor personality is well fitted. Remember they are characterized by their agreeableness, calmness, discipline, and methodicalness. However, should a position depend on strategic thinking and introducing change such as turnaround jobs and start ups then only someone with an innovator’s personality can succeed.

These people are best known for their self-confidence (resiliency) need to influence others (power), willingness to take charge (ambition) and new ways of thinking (innovation). Note that not all work experiences are equal. Clearly, an experience can only teach what is in it. Similarly, the lessons a particular assignment imparts will only take in a particular type of learner. Unfortunately, most companies do career management poorly if at all. Many others rely on formal training programs to transform managers into superior leaders as if they where butterflies emerging from cocoons. I emphasize selection over formal development. However, education and training have their place. Business skills such as budgeting, evaluating performance and running meetings require proper training. This is true because they depend more on cognitive ability than interpersonal competence. Finally, education in the form of MBAs and/or liberal arts degrees are useful for enriching and refining practicing managers. Management professor, Henry Mintzberg puts it this way, “We cannot create leadership out of nothing -- out of the absence of potential and experience. Leadership training has to take place in context, namely with a personal understanding of what it means to lead and with a deep knowledge of a specific application of that leadership. Only then can the learning be appreciated and applied.” CAN MANAGEMENT BE TAUGHT? Management can be taught to a certain degree. Surely, we can teach about management but we cannot teach management. We have all seen that some people can learn to manage by doing, but not necessarily be taught to manage. Effectiveness in management ultimately depends on personal suitability to a particular task at a particular time.

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ISSUE 15 2003 search-consult

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CAREER OPPORTUNITIES Principal to Managing Director US - Baltimore, MD All sectors will be considered

IS an international consultancy recruiting search professionals into search firms, with discretion. For further details: 1. www.SearchTalentGlobal.com 2. Click Current Opportunities (on left) 3. Enter Ref Number or other criteria If you are interested in working with SearchTalent to help you find your next partner, open a new office or find search professionals to fulfil a specific role in your search team, contact us for a fully confidential discussion. Georgina Tremayne (US) +1 201 795 5168 Alex Jenner-Akehurst (UK) +44 20 8422 9845 Referral Program If you would like to recommend a friend or a colleague, ask us about our unique referral scheme. www.SearchTalentGlobal.com

Ref 1199

Strong leadership, new key hires and strategic international office locations offer a distinct advantage at prospective client pitches. Intelligence, ethics, energy, a true passion for search, an entrepreneurial spirit and a work hard, play hard attitude make this search firm very successful at what they do and a fun atmosphere to operate within. If you are looking to expand your practice this environment could be ideal, while you will also benefit from internal admin support, research and associate resources. The compensation plan is one of the most attractive of any search firm, with the additional incentive of joining the equity scheme when you progress to the Managing Director level. For a full discussion please email Georgina Tremayne AMtalent@searchconsult.com

Managing Partner - Equity included US - Birmingham, MI and Chicago, IL Global Automotive Practice

Ref 1167

Un-missable opportunity for career advancement in automotive search as European based company expands into North America. This is an ideal opportunity for an experienced Senior Consultant/Partner to develop own specialist Automotive Practice covering North America. You will have at least five years experience in Executive Retained Search and have the ability to develop and maintain relationships at an executive level, building and leading a core team to deliver exceptional standards of delivery. For more information please email - talent@search-consult.com

Principal to Partner Ref 1200 US - Boston, MA Biotech / Technical / Industrial / Pharma Our client is interested in speaking with an experienced search individual who is a true search professional and is interested in joining a boutique search firm with the highest past and present credentials. You will probably not enjoy a large search firm environment and you will much prefer the advantages of working in a boutique with fewer off-limits restrictions where you feel you are an integral part of all the decision making processes. You will be supported by three in-house search executors and one of the most likeable and successful specialists in these areas of search. Medium term objectives will be to discuss a percentage of company ownership. Please email Georgina Tremayne at Amtalent@search-consult.com

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CAREER OPPORTUNITIES

Executive Vice President Ref 1091 US - Oak Brook and Chicago, IL Insurance / Real Estate / Healthcare / Biotech / Technology

Senior Consultant London, UK Generalist

Ref 1182

Our client is interested in speaking with search professionals who are ready to move into an environment where there are several successful search professionals working in a number of sectors but there are limited offlimits issues in the sectors listed above. If you will have minimum search fee billings of $250,000 for the last three years, enjoy the full search cycle (with plenty of in-house support) and want to work in a fun, high energy, progressive environment with all the latest technology,

Founded early 1970s, our client is amongst the leading Search firms for Board level Executive Search on an International basis. If you have over 3 years experience of winning and delivering assignments at a senior level we would like to talk with you about this fantastic opportunity. You will enjoy a mature and collegiate working environment where the strength of the client relationships are critical to our clients' business. You will have the knowledge, credibility and experience to deal with complex and sensitive issues at Board level.

please email Georgina Tremayne at AMtalent@search-consult.com

For more information please email - Eutalent@search-consult.com

Senior Associate / Principal US - New York City, NY Legal

Partner/Consultant ASIA - Singapore & Hong Kong Technology, Media, Telecomms

Ref 1201

This New York City Legal Search Firm is currently interested in speaking with strong individuals with a track record or ability to place people at the partner level within the legal field. You will be responsible for recruiting partners with significant portable business and the full search cycle. The firm is a well-established, respected legal search firm offering strong training, coaching and mentoring. Currently the search work is a combination of retained and contingent and over 75% of the client base is national. If you are interested in joining a company that actively encourages and coaches professional and personal growth, are highly motivated and are interested in working in an environment where everyone looks forward to going to work, email Georgina Tremayne at AMtalent@search-consult.com

Managing Director US - New York City, NY Healthcare

Ref 1192

This is a ground floor opportunity to grow a new venture funded with the backing and internal support of an established group of search professionals based in New York. The company has been created to place candidates within the healthcare industry on a contingent and retained basis. You will have the advantage of training, coaching, and research support in an environment with other highly motivated and successful quality search people working in different search areas. You will initially be responsible for the full search cycle. Coaching and encouraging talent is actively encouraged and you will be rewarded additionally for building and retaining a quality team within the healthcare field. There are no off-limits issues and this is a great opportunity for someone who is interested in growing something new within a proven framework, with the funding and guidance of well respected, well liked and motivated professionals. Email Georgina Tremayne at AMtalent@search-consult.com

Ref 1189

Independently owned Global Search firm with an excellent growth history and 15 year track record delivering at senior management level in the Global Technology markets. The Institute of Directors UK applauds this refreshing Search firm as "a revolutionary and welcome way forward in search". They are currently looking to expand the Asian offices with experienced, successful and industry mature individuals with at least 5-10 years executive search experience and previous industry experience within the Technology sector. Individuals must have excellent understanding of the Asia Pacific markets and the necessary language skills. For more information please email - Eutalent@search-consult.com

Managing Partner/Director - Equity Pkg. Ref 1163 ASIA - Singapore & London, UK Global Automotive Practice Our client is a privately owned Executive Search firm based in London, UK. The company was formed in 1991 by the current founding Principal Partner. They are a specialist Global Automotive Search firm with three core business areas, Executive Search, Interim Management and Consulting. Their focus is on the worldwide automotive industry and all of its related sectors. Individuals interested in this post must possess Automotive Search experience & an exceptional level of understanding of the Automotive industry. You will have extremely good business development skills and a Well-developed track record as an Executive recruiter. For more information please email - Eutalent@search-consult.com

For these and other opportunities, or to discuss confidentially your own firms requirements, visit: www.SearchTalentGlobal.com or call us direct