search-consult Issue 23 by margaret jaouadi

wydanie 23d.fh8 01/06/2005 10:21 Page 1 M

CY CMY

2005 / ISSUE 23

The International Executive Search Magazine

The Search for Diversity

What Do Your Clients Want? - interview with top HR professional - S. Gary Snodgrass from Excelon Corporation IMD International Search & Consulting - Survey Results Data Protection and Executive Search COMING UP IN FUTURE ISSUES:

www.search-consult.com The largest Search Firms in the World 2005

Technology in Search

Executive Talent Online

What Do Your Clients Want?

SUBSCRIBE ON-LINE

wydanie 23d.fh8 01/06/2005 10:21 Page 2 C

CY CMY

Boyden global executive search

Boyden...Industry Practice specialists since 1946 • Board Search

• Energy & Natural Resources

• Management Assessment

• Public Sector/Government

• Interim Management

• Not for Profit

• Financial Ser vices

• Automotive

• Global Risk Management & Security

• E-Business

• Technology

• Consumer Goods

• Human Resources

• Transpor tation & Hospitality

• Life Sciences

• Professional & Business Ser vices

62 Offices in over 40 countries and continuing to grow…visit a Boyden office nearest you via our website, www.boyden.com.

Africa Asia/Pacific

Europe

Nor th America

South America

wydanie 23d.fh8 01/06/2005 10:21 Page 3 C

- L

CY CMY

T O

search-consult Dear Editor,

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

ADVERTISING/SUBSCRIPTIONS/REPRINTS UK and Europe North and South America South East Asia and Australia Yann Le Leyour enquiries@search-consult.com or log on to www.search-consult.com

search-consult.com Calvert House, 5 Calvert Avenue London, E2 7JP, United Kingdom Tel: +44 (0)20 7749 6102 Fax: +44 (0)20 7729 6108 www.search-consult.com

For manuscript/ photographic submissions, please e-mail our Editorial department or write to the address above to obtain author/ photographic guidelines.

search-consult is published by Dillistone Systems Ltd, Calvert House, 5 Calvert Avenue, London, E2 7JP, United Kingdom and printed by Mr. Bloom Ltd, Sopot, Poland, www.mrbloom.com.pl. 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.

Your recent letter from John Steele, President of MRI Manserv AG, presented a very interesting example of how a franchised recruitment organisation can cater to the diverse needs of modern day industry and commerce. I agree that clients are looking for economies of scale by reducing the number of search and recruitment suppliers, but if we are to survive in today’s highly competitive market we should look to become partners with the client not just in their human capital requirements but in their overall corporate planning strategy. Global representation is desirable. However, all the top search methodologies in the world will have little impact without other essential ingredients. If we are to impact performance sufficiently to impress the client, overseas resources need to be significant in terms of the number of people on the ground possessing the industry knowledge and genuine specialisation skills required. Certainly training is something that should influence a recruitment organisation’s performance, but generally speaking, training tends to revolve primarily around fee generation. Effective training should concentrate on surfacing that top performer who will have a positive impact on the company from day one. CNA International is an executive search franchise operation based in the UK and founded in 1995. It is unusual in that it also provides management consultancy, interim management and corporate finance. What CNA has discovered is that a lot of companies, large and small, might have strategic plans in place, but do they not know if these plans are valid, and if they are, they do not usually have the resources to implement them. Without an agreed and valid plan in place, it is pointless to even pretend to know what a client really needs in terms of people talent. What is the answer? CNA has developed a facilitation process called “Vision to Reality” or VTR™. This process is relatively inexpensive to implement and is designed to quickly determine the validity of a company’s perceived strategy. The process obtains absolute management consensus and develops a time plan as well as an agreed road map. The VTR™ process is delivered by high-calibre CNA facilitators who then work closely with the client to identify the additional resources needed to implement this new strategy. We find that by partnering with the client this way, we build stronger longer lasting relationships throughout a company and as a result, we can deliver not just executive and middle-management recruitment, but provide management consultancy across a broad range of skill-sets as well as filling interim management assignments. Our corporate finance capabilities put us in a strong position from the start. If a recruitment organisation is to survive in the years ahead, it must be prepared to meet the changing needs of the market. We believe our new approach to the market is dynamic and builds great board level relationships because we have become an integral part of our clients’ corporate planning. Yours sincerely, Albert Wilde CEO – CNA International

ISSUE 23 2005 search-consult

wydanie 23d.fh8 01/06/2005 10:21 Page 4 C

CY CMY

Working in partnership with the leaders of today and tomorrow

Stanton Chase International provides executive search, organisational planning and recruitment consulting services. Our seasoned consultants combine local insight with specific industry expertise in eight dynamic sectors of the global economy: • Board and Corporate Governance • Consumer Products &Services • Financial Services • Healthcare &Pharmaceuticals • Manufacturing &Engineering • Professional Services • Natural Resources &Energy • Technology

Established in 1990, Stanton Chase International has grown consistently to be ranked among the top 1% of global executive search firms.Our growth has been built on solid performance, consistent delivery and quality service, with longstanding clients. Our forward thinking and long-term dedication to our clients set us apart. No matter where you are and whatever the need, we can work with you to provide executive search and leadership capital solutions to foster the success of your organisation. To speak with an industry practice search specialist or find a location near you, go to www.stantonchase.com

www.stantonchase.com

North America

56 offices in 36 countries Latin America Europe/Middle East/Africa

Asia /Pacific

wydanie 23d.fh8 01/06/2005 10:21 Page 5 C

CY CMY

- D

The Search

forDiversity by Pilar Gumucio

n today's competitive markets many companies are seeking to fully understand diversity and how it can provide them a competitive edge. These companies are turning to search consultants to widen the talent pool, effectively identify this untapped talent and then help incorporate these outstanding individuals into their respective organisations. In an increasingly multi-racial, multiethnic, religiously and ideologically disparate society, companies are becoming increasingly aware that their organisations develop and flourish through the talents and abilities of the people they employ. As a result, these companies are taking the necessary steps to ensure that the employees they hire statistically reflect both society at large and their customer profile in particular. “Mirroring’ your marketplace makes the market a lot more accessible", reports William H. James II, Managing Director of Diversity

Val Singh

for Avery James, a retained executive search firm based in Los Angeles, California. Umesh Ramakrishnan, Vice-Chair and Diversity Leader for Christian & Timbers, who is based in Cleveland, Ohio, explains how “diversity is a long term commitment that capitalises on various individual backgrounds, perspectives and strengths. It must become part of the fabric of the company, and like any sound business strategy it should be well thought out to positively impact the bottom line.” Given that businesses today are facing greater challenges, Pat Prout, President and Chief Executive of The Prout Group, a boutique search firm based in Cleveland, Ohio, highlights the valuable competitive advantage that companies can provide by strategically leveraging the benefits of an effective diversified workforce. This is achieved by “diversity providing an enormous potential, enabling firms to acquire a diverse talent pool that will generate different experiences, new perspectives and better solutions that will help push these companies forward, “ states Betsy Bruening, Vice-President of The Prout Group. As a result, ”companies with diverse perspectives are probably better positioned for the challenges of the future, better able to respond to new markets, new relationships, new languages and new ways of doing business,” reports Dr. Val Singh, Senior Research Fellow at the Centre for Developing Women Business Leaders at Cranfield School of Management that is located in the United Kingdom. Ignoring diversity, on the other hand, can undermine business performance as well as being potentially costly in terms of damaged reputation and compensation

payments. Organisations failing to recognise and act on the power inherent in differences will ultimately find themselves battling low retention, low employee engagement, low productivity and thus, a lower turnover. Nevertheless, many organisations remain wary of diversity initiatives because they still equate diversity with affirmative action and filling up quotas. In addition, many see diversity as a race or gender issue and therefore, hesitate to take on the proverbial can of worms. It is crucial that companies understand that today diversity embodies so much more.

William James

By making an organisation’s infrastructure more diverse and inclusive a business can also improve its corporate culture, company image and its reputation. It is about creating an inclusive workplace culture where all employees feel respected, valued and can contribute their best talents and experiences

ISSUE 23 2005 search-consult

wydanie 23d.fh8 01/06/2005 10:21 Page 6 C

- D

Vanessa Coleman

to generate new ideas, superior services and innovative products. How well a company manages recruitment and retention practices directly affects its competitive edge, and may well be the deciding factor for its very survival. MORE THAN GENDER Vanessa Coleman, founder and Principal of Coleman Parker, a boutique search firm based in London, describes how initially, legal compliance was the primary driver behind most diversity recruitment. “But now organisations have learned that if they want to operate around the world, they must be able to recruit and retain individuals who are different, as they are beginning to take diversity more seriously.” According to Kate Bullis, Principal and Leader of the Diversity Practice at SEBA International that has offices in New York and London, many organisations are learning that developing a diverse culture provides a competitive edge in the war for talent. “Companies, such as IBM, Deloitte and Booz Allen, are clear examples of how businesses are engaging in diversity and creating inclusive working environments.” These businesses are understanding that by widening and enriching the talent pool, diversity allows firms to tap into a broad set of skills, creative talents, experiences and viewpoints that reflect the marketplace and thus, will make companies better able to develop and market innovative products and

search-consult ISSUE 23 2005

CY CMY

services that appeal to a variety of employees, customers, shareholders, communities and suppliers around the world. As a result, diversity is being perceived as an investment as companies around the world are now recruiting graduates and highpotential leaders with the aim of developing a more representative and diverse workforce. Businesses are particularly concerned with recruiting and retaining their senior management team as diversity can play a crucial role in this process. With the skills shortages at a high, it is crucial that businesses do not overlook important sections of the population when it comes to hiring and retaining staff. Organisations that do not embrace diversity risk losing out in the War for Talent. In fact, research has shown that candidates actively eliminate from consideration companies that demonstrate a lack of commitment to diversity. At senior levels these losses can be detrimental, especially when competitors that offer them more inclusive working environments are whisking them away. DIVERSITY OF CONCEPTS After realizing benefits diversity can provide corporations, and more importantly the cost incurred if a company doesn't embrace inclusion, the next task is to understand that the concept of diversity itself varies enormously from country to country. These variations are due to the national and historical contexts found in each society as the discriminated or untapped talent pool will also change as a direct result. Consequently, “what works in the USA may not work in European countries,” states Dr. Val Singh. She describes how, according to her own research, “in the UK diversity is generally about gender and race/ethnicity, while in Scandinavia and Switzerland it is about white women. In France it is about cultural diversity, while in Germany it is about international experience brought into German business.” Douglas Board, Deputy Chairman of the Amrop Hever Group's London firm, agrees that the differing national contexts for diversity are critical. “In the UK, gender and ethnicity remain important but so is disability, with age, sexuality and religion rising up the

agenda. Leading edge, transformative work is going on in black empowerment in South Africa and search is playing a vital part. Turkey has record numbers of women in senior professional roles. But in France, diversity could still mean looking wider than the graduates of a handful of elite schools and colleges.” Lucy Marshall, Group Principal of The ASIA Partnership Group headquartered in Sydney, explains how for a client in Japan, a diverse slate of candidates may mean including women candidates. For a

Lucy Marshall

European-based company looking to operate in China, it may mean looking at cross-cultural candidates throughout Asia, identifying certain skill sets and competencies that would enhance that particular role, taking into consideration China’s social and cultural context. Meanwhile, all the consultants interviewed in the USA convey the importance of presenting an inclusive slate of candidates, which primarily focuses on women and race/ethnic minorities. With globalisation playing a crucial role in business, William James reports how clients really want to make sure that the selected candidates reflect their customer base. “This may include widening the talent pool to include executives from countries such as China and India where markets are emerging with robust economies.” If you look at the definition a bit more

wydanie 23d.fh8 01/06/2005 10:21 Page 7 C

closely, you can see how “diversity means difference and variety,” which “includes visible differences such as gender and ethnicity, less visible differences such as age and ability/disability, and invisible differences such as religious or political persuasion, or sexual orientation,” explains Dr. Val Singh. In fact, since diversity is based on individual perceptions, for some their definitions will be ever expanding and evolving while for others it will be limited to expressing one or two differences. A LACK OF DIVERSE TALENT Regardless of how you define diversity, there is a consensus that there are not enough diverse individuals with relevant backgrounds, especially at senior management levels. William James describes how this talent pool is the result of a thin pipeline. Historically, leadership development opportunities within companies were almost nonexistent for minorities and women. With companies now embracing diversity initiatives, this is slowly being corrected. Dr. Val Singh comments: “Companies should work with search consultants to identify promising individuals and to help develop them for future positions.” Moreover, she suggests that at director levels, search firms should encourage clients to include more women and ethnic minorities in their short-lists, and to take an unbiased view in assessing their potential. “If an organisation is serious about diversity at the most senior levels, it needs to search if it is to reach these people,” states Douglas Board. A concept many agree with as the demand for search assignments in diversity is growing across the board. Pat Prout affirms that in order to achieve diversity, it is vital that effective search consultants focus more on networking and sourcing, performing intensive research and digging deep to identify talent from unexpected sources and candidates who are not necessarily the obvious choices, but are strong talented individuals that will add value. Lucy Marshall notes how important it is “to go beyond the usual and obvious areas and look further for the skills they need, allowing a richer pool of candidates to be considered.”

CY CMY

Douglas Board

Some recruiters are checking resumes for subtle clues or leveraging an extensive network of resources, including professional, trade and educational organisations as a means of conducting thorough research and casting a wider net to find these qualified applicants. Within this context, Douglas Board reports: “It is important that search consultants add value to the process, and that they do not compromise on excellence and talent.” For him, the assessment of which candidate is the right fit is imperative as search consultants must “make sure not to lower standards but just challenge the reasoning behind the merit,” discuss it thoroughly with the client and get them to look at a broader slate of candidates. According to Virginia Clarke, Head of Spencer Stuart's Global Diversity Practice, who is based in Chicago, it is critical that search consultants make sure they have the right candidate by “thoroughly identifying the possible candidates, validating them through referrals and sourcing, conducting competency based interviews and seeing what they do and how they really get there.” This process involves ensuring that “they have the required skill sets and cultural fit,” states Betsy Bruening. Virginia Clarke remarks how “executive search is an art, not a science. Therefore, it is important to have a systematic approach to obtain the right fit.” She then explains: “The success of the

- D

candidate will depend on this assessment as well as the level of honesty that exists between you, as a search consultant, and the client.” CHALLENGING CLIENTS Conducting diversity searches often implies consultants have to be candid with the client. William James stresses that “sometimes you will have to challenge senior people in the organisation and change their mindsets in order to get them out of their comfort zone as you widen their perspectives to include multicultural customers and employees.” Vanessa Coleman agrees and reports how working out of the comfort zone not only entails presenting a long list of possible candidates but dialoguing with them throughout the entire process, challenging their reasons why they subconsciously select one factor over another as they establish the parameters of the search. ”Once that has been completed, it is making sure that those candidates not only appear on the short list but that the client actually hires them.” Pat Prout advises companies to be conscious that when hiring a diversified candidate, “it’s a two fold purpose. On one hand, they are looking for the right match, the executive that will fill the job description as accurately as possible. On the other hand, the client must be aware that the executive will fill another function, which involves mentoring and demonstrating throughout the client’s organisation that they’re committed to diversity.” One of the fundamental tasks search consultants have is to challenge clients, explains William James. This implies educating some clients, specifically those that still perceive diversity to be equated with affirmative action. These companies are looking to meet targeted- goals, but are not necessarily enlightened on the importance of inclusion.” Kate Bullis furthers this notion by explaining how many companies have traditionally hired “reactively”, which means that they are recruiting simply because they need to fill a quota. “The best opportunity for diversified recruitment takes place when a company is willing to expand its horizons and reach into the market on a proactive ISSUE 23 2005 search-consult

wydanie 23d.fh8 01/06/2005 10:21 Page 8 C

- D

Virginia Clarke

basis. I recommend that my clients develop relationships with diversity executives of all kinds so when an opportunity to discuss an actual position presents itself, a pipeline of possibilities already exists.” Within this context, Betsy Bruening reports how crucial it is to make sure clients understand that diversity means more than just an inclusive slate of candidates. “Make sure that the institution understands what it entails and how to achieve it. This can range from explaining the benefits diversity can bring your client to helping the company recruit a director of diversity that will truly help them achieve this process.” Pat Prout states: “Depending on the client, you get them the candidate that will bring the most value. Sometimes that means presenting them high flyers. On other occasions, that means presenting them with candidates that have the potential to be even more successful if given the opportunity. The risk may be greater for the client, but the potential rewards can also be greater. This is obviously dialogued with clients as the ultimate decision depends on them.” DIFFERING VIEWS There are occasions when there is a discrepancy between two or more views within the same organisation. Vanessa Coleman describes how “expectations can be different from division to division, especially in companies that have a global reach. For instance, in one country

search-consult ISSUE 23 2005

CY CMY

the executive I am dealing with may be more liberal minded and yet when I deal with the headquarters of the same client that is based in another country, they might be more conservative. As a result, discrepancies may arise on how broad they want me to search and what type of candidates they want me to include in the list.” Within this context, Virginia Clarke cautions companies to be aware that there is a fine line between special treatment and diversified/inclusive actions due to changing behaviours and attitudes of society. As a result, consultants “should pay close attention to the mechanisms that are in place, at the personal and subconscious levels of the individuals involved in the process because although a company may embrace diversity, a hiring manager may not be too enthusiastic.” These discrepancies occur because they are dependent on individual views and the backgrounds of hiring managers. The best way to overcome this is by showing them how these initiatives will increase the company’s bottom line, state Vanessa Coleman and Umesh Ramakrishnan. According to Virginia Clarke, if there is a discrepancy between the commitment of the CEO and the hiring managers’, the consultant should “tell the client. Together they should explore ways to make accommodations, such as changing reporting relationships to attract or modify organisational structures. In the end, it is about enhancing and using the best talent to make a company’s performance more efficient.” For diversity to really work, Pat Prout reports how a search consultant must understand and recognise what it means to the business, which is reflected in the company’s attitude towards diversity. “This not only involves the CEO’s commitment, but how it’s implemented throughout the organisation.” This encompasses much more than just the CEO’s commitment to diversity, but includes how the people below the CEO understand and implement the concept. Pat Prout describes how “incentives should be applied” to effectively help with this transformation process. Virginia Clarke adds: “Since individuals

are a function of their exposure, you must help them understand that they are accountable, helping support your client’s commitment to diversity.” FINDING CANDIDATES Since there is a shortage of supply of exceptional diverse candidates in senior management, it is fundamental that companies and consultants alike focus on ways to be better able to capture these untapped pools of talent. For instance, in the USA why are women, Afro-Americans and Hispanic leaving the corporate world to begin their own businesses? Is it because these executives are hitting a plateau because those corporations continue to ignore the unique skills and talents these untapped sources can provide them? Is it because there are no other people like them in the decision-making levels that they can look up to, that can mentor them and, therefore, help organisations discover and develop the talent within? Corporations are realising that this way of doing business is counterproductive. As a result, they are actively seeking to capture and retain diversified candidates. Douglas Board insists that search consultants “must have creative ideas for attracting less likely candidates.” Kate Bullis explains how her job comprises much more than just “looking for diversified candidates, but analysing ways to hire and then retain the best talent.” She assists her clients in creating ways to diversify the talent pool and then set up programs – such as mentorships – that will lead to greater retention. She goes on to describe how some women are leaving the workforce at managerial levels. Companies are beginning to ask what they can do to retain them more effectively. The successful companies are implementing various initiatives that allow greater flexibility in the work environment, and allow this untapped talent pool to connect with other people within the organisation as well as clients so that company’s overall performance is enhanced. At the same time, more and more search consultants are attending conferences, joining professional affiliations and partnering with advocacy groups to be able to create

wydanie 23d.fh8 01/06/2005 10:21 Page 9 C

The Trainer: Jill Dillistone – arguably the Search industry’s leading trainer with over 20 years experience of conducting research for a number of premier search firms in the UK and Europe as well as delivering training courses internationally for major search firms such as Russell Reynolds, Heidrick & Struggles and Whitehead Mann.

The Approach: On-the-job training within small business units is the pattern in the Search industry. This tends to mean – particularly in smaller firms – that Search Professionals are not exposed to the techniques and approaches developed in other firms. All workshops are as participative as possible with role-plays using case studies and “real” examples and materials are provided to refresh memories!

CY CMY

EXECUTIVE SEARCH TRAINING WORKSHOPS a series of 1-day training seminars for Search Professionals

"Workshop was great. I learnt some important issues regarding client management." Sorin Popa, Accord Group, Romania "Well structured, well paced, clear presenter, good group discussion and clear objectives covered." Sally Clark, Kathleen Townsend Executive Solutions, Australia "As a newcomer to the industry, I found the day very useful and came away with a knowledge of processes and techniques." Susan McCabe, Halcyon Consulting, UK

THE WORKSHOPS:

Research and Candidate Development Workshop – 13 September 2005, London

This 1-day workshop is for less experienced researchers and consultants. The three themes covered during the day are research skills, telephone techniques and administration and project management. You will learn: How to be creative in solving your search • Five techniques to screen candidates effectively • How better to set priorities and manage your time • The secrets of getting to the best candidates fast

Search Execution and Client Management Workshop – 14 September 2005, London

This 1-day workshop is for professionals involved in the search execution process and focuses on effective and successful client management and liaison (including progress reporting), candidate interviewing and referencing and the preparation of candidate reports and package negotiation. You will learn: How to get the real story behind the CV • Five techniques to add value in the search process • How better to manage client meetings • The secrets of developing long term client relationships

Interview Skills Workshop - 15 September 2005, London

In response to demand following our May training seminars, this 1-day workshop is for executive search professionals and covers different approaches to interviewing with a focus on judging fit to client requirements. It involves case studies and provides the opportunity for role play.

The workshops take place in Central London and cost only £299 / $560 / C430. Maximum 16 attendees per workshop. To book, please complete the booking form available online at www.dillistone.com/workshops and send it with the payment to (please make the cheques payable to Dillistone Systems Ltd): Executive Search Training Workshops, Dillistone Systems Ltd Calvert House, 5 Calvert Ave, London, E2 7JP, UK If paying by credit card, please fax it back to us on +44 (0)20 7729 6108. Refreshments will be provided throughout the day. Cancellations have to be made in writing up to 31 August 2005 and are subject to cancellation fee of £50 / $90 / C70. We regret that cancellations received after this date cannot be accepted and will be liable for the full fee. Replacements can be made at any time. For more information, please visit our website www.dillistone.com/workshops or send an email to marketing@dillistone.com

wydanie 23d.fh8 01/06/2005 10:21 Page 10 C

- D

an extensive network that will allow them to effectively identify, develop and retain these diverse candidate pools. Diversified Search, for example, has recently partnered with The Leader’s Edge, an organisation dedicated to the leadership development and advancement of executive women, to design programs to help women develop a realistic understanding of the issues and experiences needed by boards today as a means of capturing and preparing them better to take on this challenge. William James explains how he and his search firm support education as a corporate strategy. “Americans increasingly are not pursuing careers based on math and science. Therefore, it is important to be able to help increase the talent pool in those industries.”

Umesh Ramakrishnan

He comments: “Take technology as an example. Through the boards and associations I participate in, I am actively encouraging and assisting African-Americans and Hispanics to enter these fields. How can we achieve this? One way is by engaging them at the college level, or possibly even before. This includes working with educators as they guide students toward technology and develop their leadership skills. Our longrange goal is to provide clients with a diverse selection of candidates.” Recruiters are also demonstrating their commitment to diversity by making sure to hire a diverse workforce themselves.

search-consult ISSUE 23 2005

CY CMY

Lucy Marshall explains how her firm not only advices and provides diversity recruitment, but believes the best way to embody diversity is to lead by example. She explains how the composition of the ASIA Partnership Group “reflects such diverse cultural backgrounds that they allow the team to work in 14 different languages” and thus, capitalise on their market expertise in being able to effectively partner with their clients. Betsy Bruening and Pat Prout report that the fact that one is a white female and the other an African American male has helped both of them advocate diversity because they have first-handed experience, which comes in handy when you are discussing the details of diversity with a client as well as convincing a candidate to join your client’s company. CHASING THE RIGHT CANDIDATE As with any search, winning over the best candidate can be the hardest part of the engagement. Within this context, Kate Bullis reports how this task entails “wielding the muscle from the fat, really selecting the most qualified candidate and then enticing him or her to the opportunity.” Umesh Ramakrishnan explains how attracting diverse candidates is not as simple as it might appear. “Many star candidates are lost in large corporations, pressed under glass ceilings. Others are focused on making their mark in their current jobs.” As a result, executive recruiters have to be very creative in approaching them since there is a high demand for effective diversity candidates, as many are less likely to change positions because they are being treated very well by their existing employers who are conscious of the competitive edge these executives are providing their businesses. Douglas Board indicates how critical it is “to be able to establish the candidate’s trust in the hiring organisation, and to overcome any suspicions of tokenism. Why is the organisation interested in diversity? Does it flow from its core values and business logic, or does it have another reason? “ “If the company’s track record around diversity has not been strong, be up front about it. Explain to the candidate why and how the client is willing to change that. And

Pat Prout

make sure the client is truly willing to hire and retain the best talent by providing a diversified and inclusive working environment,” reports Kate Bullis. Virginia Clarke points out that the search consultant must make the candidate feel like part of the company. It is the search consultant’s task to build relationships and raise the profile of the client company. Meanwhile, it is the company’s task to have a real notion of what it takes to ensure that they really do provide an inclusive environment. As you can see, diversity is a complex concept, especially in a globalised world where companies and societies alike are becoming more aware of the competitive advantages that diversity can offer. Within this context, the successful search consultant becomes a fundamental component in communicating the benefits this can bring a client company, creatively and effectively identifying and capturing the right candidate and, more importantly, in helping develop and retain top talent in the quest for widening the scope of the search to reach and incorporate a larger spectrum of diversified candidates.

www.search-consult.com For more information, contact: Web: www.search-consult.com

wydanie 23d.fh8 01/06/2005 10:21 Page 11 C

CY CMY

Knowledge - FREE with every record. Opening a company record in FILEFINDER will present the user with both the ‘data’ from the database and the very latest news on that company – delivered automatically from the Web.

This gives users a benefit in terms of both business development and research. In turn, this will help your search business perform better. FILEFINDER software is designed for Executive Recruitment and is supported by people who understand Executive Recruitment. To find out how your business can benefit, book your FREE demonstration TODAY! US: +1 (201) 653 0013 UK & Europe: +44 (0)20 7749 6100 Germany: +49 (0)69 27 40 15 807 Australia/Asia: +61 2 9006 1194 Rest of the World: +44 (0)20 7749 6100 sales@dillistone.com www.dillistone.com U S A

U K

G E R M A N Y

A U S T R A L I A

wydanie 23d.fh8 01/06/2005 10:21 Page 12 C

- D

CY CMY

How a Chief Diversity Officer

Should Impact

theBottom Line by Tory Clarke he role of Chief Diversity Officer (CDO) is not a new one. However, its influence is being increasingly felt at all levels of large corporations. If the individual holding the position has the ideal skillset and if the environment is truly geared towards diversity-inclusion, the impact of the role should create huge benefits for any organization, both culturally and financially. Just what an environment “truly geared towards diversity-inclusion” looks like, and what that “ideal skillset” is, are topics for another discussion but what remains is the potential impact of the role of the Chief Diversity Officer at a fundamental business level. The Benefits of a Diverse Workforce: Today, it is widely recognized that diversity-inclusion should be on every CEO's priority list. A select handful of retained search firms successfully partner with a broad spectrum of corporations and their Chief Diversity Officers to bring diversity and its related benefits to their management team, leadership and board of directors.

search-consult ISSUE 23 2005

• A consistent theme in senior-level recruitment today is that high caliber executives (of any age, culture, e t h n i c i t y, g e n d e r, g e o g r a p h i c background, race or sexual orientation) are more attracted to an o rg a n i z a t i o n w h e r e d i v e r s i t yinclusion initiatives are underpinned by a fundamental belief, throughout the organization, in diversity as an economic imperative.

Tory Clarke

• A diverse workforce should enable a company to capitalize on new markets as customer bases become even more diverse than the workforce – employees who reflect an organization’s clients/customers can literally and figuratively speak their language. Diverse employees can understand a kaleidoscope of customers/clients, identify their needs and suggest potential new markets and innovations. • One benefit of capitalizing on differences amongst an employee base is creativity. Incorporating the talents, skills, creative talents, experiences and viewpoints of all the individuals on a diverse staff can bring different solutions, perspectives and ideas, as well as challenge accepted views and therefore yield new business opportunities and aid the decisionmaking process. • With salaries, benefits, training and development comprising one of the largest parts of an organization’s budget, maximizing return on investment and competitive a d v a n t a g e a r e k e y. W h e n

wydanie 23d.fh8 01/06/2005 10:21 Page 13 C

employees leave because they don’t believe they are valued, or because they perceive a workplace to be hostile, money and time invested in those employees are lost. The Role of the Chief Diversity Officer: In the past, many organizations positioned the role of the Chief Diversity Officer as attending to internally-focused crisis management, legal issues, or communication of community-focused initiatives and many individuals have achieved huge success in such roles. These executives were pioneers, paving the way for today ’s Chief Diversity Officers and for the role as it will continue to develop in the future – as facilitator and catalyst for delivering the key economic case for diversity-inclusion to all constituents, inside and outside the company. As more progressive organizations have highlighted diversity as a vital part of their commercial decisionmaking and strategic planning, the Chief Diversity Officer has been given both seniority and access to the leadership team. The Chief Diversity Officer of the future will increasingly focus on communicating the economic message to employees, customers and suppliers. This message will be communicated through every aspect of the CDO’s remit including strengthening diversity-inclusion initiatives among employees, customers and suppliers; developing employee relations, recruitment and university relations processes; exceeding diverse customer expectations; and corporate and community leadership. Recruitment, Inclusion & Retention This should be one of the most visible aspects of the CDO’s role but, sadly, in many organizations the CDO has not historically been as close to the recruitment function as they should

CY CMY

be. Effective diversity recruitment provides companies with access to the broadest possible pool of available candidates and positions it as an Employer of Choice for both majority and minority groups. The cost of not being adequately diverse is very real for businesses. Research has shown that candidates actively eliminate from consideration companies that demonstrate a lack of ethnic or gender diversity. Equally, organizations that fail to demonstrate commitment to diversity in senior management have been shown to lose a significant number of their diversity hires to organizations that offer more obvious opportunities for advancement. The cost of losing an employee is several times their annual salary and, as a result, retention and inclusion have become as important as successful hiring. Communications & Training One of the key roles of the Chief Diversity Officer is to raise awareness of diversity and drive training amongst the various populations within the workforce, customer base and supplier base. An emphasis on the benefits of a range of differences will create situations that positively leverage those differences in the broader business environment. Reflecting the Customer Population As the result of an explosive growth in ethnic populations, this is an area where the business case for diversity is particularly strong and where an effective CDO communicator can have a substantial impact. If an employee and supplier base reflect more accurately the target customer base, companies are able to develop a deeper understanding of the diverse needs and tastes of their end users, as well as an increased richness of ideas, which gives them a competitive advantage in their marketplace. A Chief Diversity Officer should be able to communicate this message in every

- D

discussion at ever y level of the organization. “Doing the Right Thing” Diversity is seen as an increasingly important factor in improving corporate performance, communicating this diversity philosophy often falls under the remit of the CDO. The business case is clear - as companies around the world focus more and more on the issue of corporate social responsibility, their approach to diversity will remain under public scrutiny and will trigger a more critical evaluation of performance in this area by external stakeholders and potential employees alike. If an organization's wider social responsibilities are not reflected in its hiring policies, its reputation in the business community and its financial performance will inevitably suffer. Tor y Clarke is a Partner at USb a s e d B r i d g e Pa r t n e r s L L C (www.bridgepartnersllc.com), a retained executive search firm with a focus on senior-level diversity recruitment. Bridge Partners LLC was founded by principals with extensive experience and credentials in leadership and senior-level recr uitment, both in the US and internationally, its executive search offering, capability and experience cover many industries and functions. Through a combination of the a research-based methodology and networks, our team has an unrivalled ability to successfully and efficiently execute senior search assignments, bringing to each project a focus on ensuring that our clients are presented with a diverse slate of candidates.

www.search-consult.com For more information, contact: Web: www.bridgepartnersllc.com

ISSUE 23 2005 search-consult

wydanie 23d.fh8 01/06/2005 10:21 Page 14 C

- T

L O

CY CMY

G Y

Upgrading Search System by Scott Molski time comes at most Executive Search firms when they realize that they would benefit from a sophisticated search-focused database system. And, at most of these firms, after the daunting task of making such a decision, they acquire a host of new problems: What product to select? How stable is the company supplying it - will they be around two years from now with a new product and support for newer computers? How will I get the data from my current system into the new one? If you have been, are, or expect to be in such a situation, this article is for you. The first step in your migration is to select a product and a company that you are satisfied with. During the evaluation process, you not only need to consider the product features that you see in the demonstration and literature, but the company itself as well. You may see a piece of software that looks great, but if the company

search-consult ISSUE 23 2005

isn’t going to make it to next year, what will you do when your system goes down right as you’re bidding for a huge project? Hire IT consultants? Try to export the data yourself? No matter what you try, you will probably end up paying a lot, losing the deal, or worse, your relationship with the prospect, and you’ll be right back where you started: with under-utilized data on a bunch of spreadsheets. Dillistone Systems, the supplier of FILEFINDER 7, where I have just recently switched from the implementation team to the sales team, is dedicated to customer care. Dillistone’s global presence ensures that you can receive support when you need it: whether you are working regular hours where you can contact your local office, or you are working early, finishing a proposal, or late, getting out a client report, when one of Dillistone’s other offices will help you out. And, with our over twenty

year track record, you get the benefit of frequent software updates, a large customer base and the comfort of knowing that the company that makes the software you have chosen will be around when you need them for many years to come. Once you have selected your new system, the next step will be getting the software installed. One of Dillistone’s implementers will install your system and provide you with both software and system administration training. With FILEFINDER 7, you have the option of installing the system on one of your ser vers, where you maintain the hardware and the backups, or you may have the software hosted by Dillistone where we perform all of the server work and maintain your back-ups. After the system is installed, the next issue will be getting your data across. Whether you are moving from simple MS Excel spreadsheets, a

wydanie 23d.fh8 01/06/2005 10:21 Page 15 C

contact management system, such as ACT!, an Access database, or another search database system, your data is going to be uniquely yours and you want it to flow seamlessly into your new system. Just as you did your due diligence in selecting a software provider, you will expect the same quality and professionalism from the people responsible for getting your data into the new system. From the moment you request a migration quote, Dillistone treats your data in strict confidence. Once your current system has been evaluated, you will receive an exact quote for the price of the migration. From here, you will have an initial mapping conversation with one of our project managers. At this meeting, your project manager will guide you through the new system and make expert recommendations to suggest where you data would work best. Once the mapping has been completed, the testing phase begins. One of our database engineers will use the mapping as a guide to write the data migration scripts. Once the scripts are complete, they will be run against a test copy of your database. This evaluation database will then be provided to your firm for review. This way, you have the best possible to review your data because you will be able to see and use your data exactly as it would appear in your new FILEFINDER system. Once you have made your initial review, you will provide your project manager and database engineer with such feedback. The feedback will then be implemented and the new scripts run. Then, your firm will be provided with a second test database for your review, a final opportunity to ensure that your data is just how you want it in your new system. Once you give the go ahead, Dillistone will run the scripts against your live database. You will then be live on FILEFINDER, with a perfect data migration, and the absolute minimum in downtime.

CY CMY

Of course, with your new system, you will want adequate training on how to use it. When you purchase from Dillistone, your sales person and project manager will consult with you on the appropriate amount of training time to meet you needs. One of Dillistone’s trainers will then train your firm on exactly what you need to know to get the most out of your system. Additionally, the Dillistone trainers and implementers who work with your firm are experts in the product and in the search industry. With clients in over 43 countries, everyone at Dillistone who serves you will have had tremendous experience with, and exposure to, a diverse range of search practices. Such knowledge and expertise will be available to you at anytime - from your initial training sessions to any contact you have with our global support team. Dillistone Systems also maintains a FILEFINDER Users network where you and your firm may share knowledge and experience with other search professionals who use the same system.

This year, around 60 search professionals from the UK and Continental Europe, Australia and North America attended our FILEFINDER Global Users Conference

just another way that Dillistone helps you get the most out of your system.

in London —

- T

L O

G Y

Since Dillistone serves so many clients in so many different parts of the world, they also have the ability to perform implementations and t r a i n i n g r e m o t e l y, s h o u l d i t b e impractical to travel to a client’s location. This benefit is especially useful for our many virtual organizations that have many people who do not work at a centralized location.. Once your firm is trained, and you begin working live on FILEFINDER, you and your colleagues will probably still have a few questions. With Dillistone’s expert and responsive support, whenever you have any FILEFINDER questions, you may contact the Dillistone Support team, by calling one of our offices, where you may speak directly to a technician, or by emailing support@dillistone.com, where you will receive a prompt reply or a call back. The best part of the whole process is that once you have signed the order for FILEFINDER, everything from the system install, to your data migration, to the expert training of the employees at your firm is usually completed in under a month with almost no downtime at all for your firm. Hopefully, as a result of reading this article, you are more at ease about the entire system migration process. If you would like to know more about what Dillistone Systems c a n o f f e r, o r w o u l d l i k e a demonstration of the marketleading FILEFINDER 7, please email sales@dillistone.com or visit our website, www.dillistone.com, for the contact information of your local office.

www.search-consult.com For more information, contact: Web: www.dillistone.com

ISSUE 23 2005 search-consult

wydanie 23d.fh8 01/06/2005 10:21 Page 16 C

- H

CY CMY

Clients Expect Value

Added Partnerships

by Pilar Gumucio n today ’s highly competitive world, more and more clients are demanding that their executive search providers not only supply them premium talent but that they increasingly take a more proactive role with their clients. S. Gary Snodgrass, Executive Vice President and Chief Human Resources Officer of Exelon Corporation, speaks to search-consult about what he perceives to be the key factor for selecting and retaining executive search firms. “In the end of the day, it’s about establishing long-term relationships and enduring partnerships,” he explains. In a fast-paced environment where top talent is highly valued, searching, selecting and then attaining outstanding candidates to join Exelon is fundamental. Snodgrass places high expectations on the type of executives he wants on board to provide his company with an added advantage. As a result, he fully understands how important the right search providers can be to achieving this objective. Within this context, Snodgrass explains that it is very important that search providers understand that companies are increasingly expecting more from them. “I don’t just want a firm that is compliant and will simply fetch and fill a job,” he reports.

search-consult ISSUE 23 2005

As an accomplished human resources executive who has been the recipient of numerous awards, particularly the 2004 Human Resources Leadership Award presented by HuntScanlon Corporation and the 2004 Colleague of Distinction Award presented by the Human Resources Management Association of Chicago, his advice should definitely be noted.

S. Gary Snodgrass

When asked about the service he expects search firms to provide Exelon, Snodgrass declares: “Providers must understand our business, follow and track our industry and bring us that proactive talent.” He reports that as a client, it is

important that they “don’t take us for granted.” Challenge and dialogue Snodgrass expects a search provider to permanently challenge and dialogue with the client company, adding value efficiently and effectively. This implies tracking and maintaining candidates on a proactive basis as well as providing a collaborative effort to probe and discuss the role, the scope, the culture, the potential fit as well as the leadership style and qualities required. “These are the reasons we look to search providers because we want them to go the extra mile to intensify our relationship,“ he remarks. Exelon’s Chief Human Resources Officer reports: “It is important that you show us your enthusiasm and continue to bring fresh ideas to the table without having to be called upon.” Snodgrass considers that a search firm has to be progressive, be able to fully understand a client’s company and provide in-depth proposals that depict their high level of commitment to enhancing their client’s reputation and performance. Exelon Corporation’s portfolio speaks for itself. The company operates the largest nuclear fleet in the United States, one of the largest commercial nuclear fleets in the world, and is generating nuclear energy more efficiently than ever. Exelon, which has

wydanie 23d.fh8 01/06/2005 10:21 Page 17 C

approximately 5.1 million customers and more than $14 billion in annual revenues, boasts one of the largest electric utilities within the United States, with a nationwide reach and strong positions in the Midwest and Mid-Atlantic. Exelon attributes its success to realizing that the company ’s core power lies in the relationships Exelon has created and maintains with customers, employees and the communities in which it serves. Within this context, talent is highly valued. As a result, the search providers Exelon selects to work with are permanently dialoguing, engaging and adding value as they help find those highly sought after top performers that will create the long-term strategies and enduring relationships that will permit this company to thrive. The value of diversity A high performance culture that reflects diversity is highly prioritized, as search providers must understand how Exelon’s diversity policies are firmly anchored in their fundamental belief that inclusion, respect and fair treatment contribute to increased productivity. “Diversity is critical for our organization because we have such a diverse customer base,“ Snodgrass explains. “This helps enrich our organization’s creativity as our employees can provide multiple solutions, which obviously increases profits and provides an environment that generates new ideas, superior services and innovative products.“ He adds: “This is a winning formula since it attracts and maintains talent by creating a positive environment that helps individuals thrive and thus, the company thrives as well.” Within this context, Snodgrass explains that broadening the talent pool is vital in today ’s competitive market as he highly encourages search providers to present an extensive and diverse slate of candidates. “We have delayed, deferred or even

CY CMY

- H

opened new roles for certain exceptional candidates that we felt were right for our company,” explains Snodgrass. A dynamic market Snodgrass describes the search industry as very dynamic as the War for Talent is well underway. He reports: “The search industry is really beginning to thrive. The market is becoming candidate-focused and driven by job seekers. Companies are increasingly becoming more aware that people really are a competitive advantage as they bring fresh and new ideas.” Within that context, a search provider ’s role is paramount as a means to strengthen the existing partnership with employers.

“It is an opportunity for search providers to be proactive, preempting and progressive,” Snodgrass declares. He explains that although Exelon examines its preferred provider list annually, they are not inclined to change it because it is established on relationships. “It is often not the lowest price that determines our selection of search providers, but it is the ones that add the most value to our organization by delivering and pursuing an enduring relationship that persistently adds value and brings value added people to our organization,” proclaims Exelon’s Chief Human Resources Officer. www.search-consult.com For more information, contact: Web: www.exeloncorp.com

An accomplished human resources executive, Gary Snodgrass is Executive Vice President and Chief Human Resources Officer of Exelon Corporation. He joined the corporation in September 1997 and is involved in wide-ranging strategic corporate initiatives and leads the corporation’s human resources, diversity, labor and employee relations and security functions. Mr. Snodgrass is the recipient of the 2004 Human Resources Leadership Award, presented by Hunt-Scanlon Corporation. The annual award recognizes a leading human resource executive for accomplishments in designing and implementing innovative human capital strategies that have led to superior financial performance. He is also the recipient of the 2004 Colleague of Distinction Award, which was presented by the Human Resources Management Association of Chicago (HRMAC). HRMAC is a forum for human resources leaders, practitioners, service providers and business executives charged with designing and delivering workforce strategies to drive superior business performance in the organizations they serve. The award recognizes an individual who has been an active human resources practitioner and has advanced the HR profession over the course of his or her career. Mr. Snodgrass is a past president of the board of directors of the HRMAC. He has served on the adjunct faculty of Keller Graduate School of Management, a member of Keller’s National Advisory Board, a member of the Illinois Human Resource Investment Council/Illinois Workforce Investment Board, a Board of Director of the Council for Adult and Experiential Learning (CAEL) and the Boys & Girls clubs of Chicago. He is a frequent speaker and published author on human resources management issues. He is the author of the critically acclaimed book, “When Your Career Means Business,” an imaginative and practical guide to career growth for professionals at all stages of their careers. Mr. Snodgrass earned a master’s degree in business administration from Keller Graduate School of Management (Chicago). He received a bachelor’s degree in business administration from Western Kentucky University.

ISSUE 23 2005 search-consult

wydanie 23d.fh8 01/06/2005 10:21 Page 18 C

- N

CY CMY

Penrhyn International:

Multi-Country Work

is Key to Search

By Pilar Gumucio s globalization spreads and businesses continue to expand and operate in more locations around the world, having the right search provider is even more critical. Companies are looking across borders to attract the right talent that will allow them to open new markets and relocate some of their operations more competitively, and they want to achieve these objectives at a faster pace than ever before. Within this context, Skott Burkland, President of Skott/Edwards Consultants and current Chairman, explains why Penrhyn International really offers clients a competitive advantage. “Our differentiator lies in our ability to do global search and to coordinate activities across many geographies,” he states. Penrhyn International started in 1979

search-consult ISSUE 23 2005

as a joint venture between Christopher Mill & Partners, based in London, and Leon A Farley Associates, based in San Francisco. “Each firm had clients with requirements on both sides of the Atlantic, and a significant amount of business was exchanged. Over the years additional firms joined,” says Burkland. Today, Penrhyn International has 18 offices in 13 countries, plus associated offices in Greater China. It is considered a federation of independent retained executive search consulting firms, working together in partnership to provide the highest standards of service in international assignments in virtually every industry. Burkland describes how Penrhyn International is recently expanding fervently in South America and is reviewing potential additional

members in Europe. “We also plan to strengthen our position in the United States.” At the same time, Burkland cautions that the addition of new members is a very rigorous process and one that is not taken lightly. “It is quite difficult to b e c o m e a m e m b e r o f Pe n rh y n International, and we think that is the way that it ought to be.” Yet he explains how more clients a r e d e m a n d i n g t h a t Pe n r h y n International be able to service them simultaneously in various countries and regions, and as a result, this federation is exploring the addition of new member firms to be able to meet these mounting demands. Burkland reports how many people tend to label search networks as “loose affiliations”. However, he indicates that Penrhyn International entails much more.

wydanie 23d.fh8 01/06/2005 10:21 Page 19 C

“I think we have more interaction, more trust, and more knowledge of each others’ capabilities than exists between the offices of the large search firms. This works to the client’s benefit, and that is demonstrated every time large clients select us to do multicountry work over the large firms,” affirms Burkland. Multi-country projects As more companies expand their horizons and work on a global scale Penrhyn International gives clients a competitive edge because they are market leaders in their national markets, they collaborate together to source, select and attract the right talent and they create consultative partnerships that allow clients to excel and achieve their business objectives. Burkland explains that his association is based on “people who are specialists in managing multicountry projects, and who have spent their lives in multi-cultural environments.” This means that these consultants already have a great deal of experience, knowledge and understanding of companies and through their coordination with their member firms can effectively and simultaneously conduct multi-country and global searches for clients throughout the world. Penrhyn International’s crossborder assignments vary greatly, from recruiting a CEO for an international firm to simultaneously recruiting entire management teams for clients that are expanding to new markets or undertaking new strategic directions. This not only implies using the knowledge of their clients’ markets on a national level, but also includes various member firms collaborating with one another to make sure that clients have the necessary skills required to achieve their global business objectives. Obviously this differs from client to client. For example, the client can be based in one country and the position

CY CMY

can be based in another. It can also include sourcing candidates from a variety of countries, and even globally. The project may include supporting and advising on issues of organization and compensation. The search may

Skott Burkland

also include helping clients manage the cultural shifts that happen as companies continue to develop and grow. In the end, it is about maximizing local resources with a global vision that benefits the client’s performance. An effective partnership is key According to the Chairman of Penrhyn International, there are numerous ways in which companies can fill jobs. “It is our challenge to ensure that companies recruiting senior executives, wherever it may be in the world, understand the potential value that a retained consultant brings. And it is also our challenge to ensure that we deliver that value.” He adds that clients are becoming increasingly demanding about the pace at which they expect results. “That reflects the fact that organizations are much leaner than they used to be – if there is an empty executive slot it hurts, there is no cover – so there is an inevitable concern with pace. We have to respond to that concern.”

- N

As businesses continue to expand, Pe n rh y n I n t e r n a t i o n a l f u l l y comprehends the high levels of commitment and interaction required to achieve quality results across the border. In fact, Burkland reports: “If you ask how often member firms find themselves working together, my answer has to be ‘not enough’… however, if you were able to see my email inbox you would understand just how much we do work together. For example, someone in Australia needs help with finding a candidate with expertise in banking risk management; partners in London and Brussels and Zurich are working together on an assignment for a Fortune 10 company; a colleague in Brazil is asking a question about a particular company’s capability. And it is like that every day. Although we are a partnership of firms, we work like one firm.” This level of coordination is fundamental, especially if you take into consideration that clients are being more selective in choosing search partners that can ser vice them effectively and simultaneously in various parts of the world. According to Burkland, the concept of “preferred supplier” is maturing and he expects it to continue to evolve. “ To d a y m a n y c l i e n t s a r e u s i n g preferred supplier status as a cost control measure.” He hopes that this concept will evolve “into a value enhancing measure, a way of ensuring an effective partnership.” Penrhyn International aims to lead by example, establishing a consultative partnership that provides clients wherever they may be in the world with access to similarly high standards of advice and superior executive search capabilities.

www.search-consult.com For more information, contact: Web: www.penrhyn.com

ISSUE 23 2005 search-consult

wydanie 23d.fh8 01/06/2005 10:21 Page 20 C

- I

CY CMY

IMD International Search & Consulting Survey Results:

Talent Abroad

isGaining

Ground

lmost 80% of the executives surveyed believed that international experience would be extremely advantageous for their careers and would actively seek a move abroad, according to the latest survey on â&#x20AC;&#x153;International M o b i l i t y o f E x e c u t i v e Ta l e n t , â&#x20AC;? which was conducted by IMD International Search and Consulting. The poll, which includes responses from more than 2000 executives, revealed that more than half of the respondents in Europe have already accepted a transfer for an international posting compared to 34% in Australia/Asia Pacific and 30% in North America. That said, of the respondents who had undertaken international assignments, over 90 % were very happy with their ex pat period. In fact, 20% of the respondents ranked experience as the most important reason for accepting a role

search-consult ISSUE 23 2005

abroad. Other reasons that attract executives to move to a foreign country are cultural change, career development, learning another foreign language, a more attractive salary and obtaining a more fulfilling job. The survey also reported that when recruiting for a senior role, close to three fourths of the executives based in Europe and more than half of the executives based in Australia/Asia Pacific and North America were keen to recruit executives from abroad. General Management, Marketing, Sales, Operations, Scientific/R&D and Financial were the top areas where companies were recruiting from abroad. "This is good news for businesses where international recruiting is viewed as very healthy both for the corporate bottom line and for long term global stabilisation," says Elisabeth Morin, President of IMD International Search and Consulting.

SEEKING EXPERTISE AND A FRESH APPROACH Two thirds of the companies in Europe and over half of the companies surveyed in the US and Asia source managers from abroad, mainly because of a lack of expertise locally. However, a need for a fresh approach or cultural change also motivates companies to look abroad. Analysing the levels of individuals that make the move to another country the results reveal that less than a quarter came from the Executive Board. Meanwhile, 30% in Europe, 12% in Australia/Asia Pacific and 8% in North America have made the move from the Operational Board of Directors level. More than half of executives have come from senior management roles while less than half have come from middle management. When asked what region those executives that would be interested in securing an international role would opt for, the results revealed

wydanie 23d.fh8 01/06/2005 10:21 Page 21 C

that executives in Australia/Asia Pacific and Europe selected the US as their first choice while North Americans chose the UK as their first choice. "The U.S. is still the most desirable place to move for international managers from Europe and Asia Pacific," says Morin. "In addition to the size of the country, language proficiency and quality of schooling and living are factors that contribute to this fact." The Americans, on the other hand, preferred the U.K. with New Zealand as a surprising number two choice. "Most likely thanks to Hollywood and the trilogy 'Lord of the Rings,' which was shot on scenic locations on the islands," Morin notes. The survey underscored the value of English in the global business world. Almost all respondents from non-English speaking countries felt that they needed to use a foreign language in their business, while it was the opposite for respondents from English speaking countries. Over 80% of the respondents that perceived English as their first language felt it is unimportant to speak a 2nd language in their current role. I n Au s t r a l i a / A s i a Pa c i f i c t h e languages most in use are Chinese (34%), English (33%) and another Asian language (18%). In Europe, English (47%), French (15%) and German (14%) are the three most widely used languages while in North America Spanish (20%), English (19%) and French (19%) are the languages most commonly used. How many executives felt prepared for international/intercultural working? The results revealed that more than 80% of Europeans felt prepared while close to 70% of the respondents in North America a n d A u s t r a l i a / A s i a Pa c i f i c f e l t prepared. Close to 10% of Europeans were not confident about their preparation

CY CMY

to work internationally while this figure virtually doubled in North America and Australia/Asia Pacific. ARE COMPANIES REALLY READY? It is widely recognised that recruiting on a global basis can provide an enormous competitive advantage by improving the talent bench strength of existing employees.

“Seasoned international managers can bring a huge breadth of capabilty,

with fresh viewpoints and a wealth of cultural understanding,” comments Sherilyn Shackell, Director of IMD International Search and Consulting and CEO of UK based Highfield Human Solutions. “The difficulties, however, are quite significant if employers cannot offer the support infrastructure necessary to ensure the success of incoming executives,” adds Shackell. Unfortunately, according to the results of the survey, executives may find themselves a little unassisted as less than half of the companies that responded provide ex pat support programs for incoming talent. Furthermore, only 25% run repatriation services for returning executives. “Without a clear strategy for managing returning executives, businesses run the risk of having little to offer in tr ying to retain home coming employees, clearly limiting the benefit of moving their own talent internationally,” Shackell notes. Only 10% of the respondents stated that their organisations had set up an

- I

official company policy to be able to source from foreign countries. More than half had reported that their organisations had never needed to recruit from abroad, close to a quarter of the executives had admitted that their companies didn’t even have a strategy in place and close to 10% of the respondents had stated that, in their opinion, there were even barriers of mobility. For those companies that do have an expatriate support program, the majority of the respondents considered relocation costs as the primary support program. Local cost of living allowance was also noted by three-quarters of the participants. Language training, local networks, tax advice, cultural training and practical information were also listed as areas of support companies were providing ex pats. Overall, the growth of international recruiting is set to continue and this reflects increasing globalisation of both company structures and executives’ mind set. Country borders are no longer perceived as the barriers they have been in the past.

IMD is an international affiliation of well-established Search and Selection firms who are leaders in their domestic markets and experienced partners in international search assignments. It was founded in 1972 to respond to the growing globalisation of the economy and answer the needs of companies worldwide developing a global approach to their markets and resources. Since then, IMD has grown to a network of more than 150 consultants in over 40 offices in major cities around the world and is currently continuing its geographical expansion.

www.search-consult.com For more information, contact: Sherilyn Shacknell TEL: +44 (0) 1635 33923 E-MAIL: sherilyn.shackell@highfielduk.co.uk

ISSUE 23 2005 search-consult

wydanie 23d.fh8 01/06/2005 10:21 Page 22 C

RESSOURCES

CY CMY

wydanie 23d.fh8 01/06/2005 10:21 Page 23 C

- D

CY CMY

Data Protection

and Executive Search By Peter Felix s you are aware, the trend towards Data Protection is gathering momentum around the world. So far specific Data Protection legislation has been enacted in the European Union, Canada, Australia, Japan, and to a lesser extent the United States. The shift towards greater regulation, and thus possible legal exposure, is inevitable. The obvious burden on the executive search profession has always been to protect confidential information on individuals. It is clear that now we must not only be in compliance with local legislation but also be seen to be implementing the highest standards of data protection in our daily work. For many firms and consultants this will involve a review and possible modification of current practices. The AESC has made considerable progress during the past several years in developing the AESC Code of Conduct on Data Protection that meets high standards of professional practice. The Code of Conduct was developed by the AESC Data Protection taskforce to enable our members to comply with relevant Data Protection laws. The taskforce has consisted of representatives from our larger member firms who are particularly affected by these global developments and also have applicable legal expertise. The AESC code and has been agreed upon and submitted to the European Union Working Party on Data Protection for review and approval. This body has invited professional organizations to present Codes of Conduct affecting their specific industries in an effort to promote

self-regulation and consistency of interpretation across the EU. The agreement on the formal code is in itself a considerable achievement. It clarifies the obligations of search firms operating in the EU with regard to the processing of personal data. It also defines EU member obligations in the context of global databases and cross border search work performed by search consultants around the world. Although the draft cannot offer legal protection for AESC member firms until formally adopted by the EU, we consider that the text reflects how firms should operate in order to comply with EU data protection legislation. Because the EU laws appear to set the highest standards of Data Protection currently in operation anywhere in the world, it is our belief that compliance with the AESC Code of Conduct, which is based on these standards, should provide excellent basic protection worldwide. AESC Code of Conduct on Data Protection I. The Retained Executive Search Profession and the Processing of Personal Data The information contained in this section aims to help AESC member firms understand and comply with the laws governing data privacy currently in effect around the world. Retained executive search consulting is recognized as a high level professional service, which performs a critical consulting role to client organizations

and is integral to the working of an effective labour market for senior management. Competitive economies today rely upon a free and mobile market for executive talent and therefore a free flow of their personal data, provided that fair practice principles are safeguarded. A key reason for employing a retained executive search firm is that many of the best candidates for top management positions are not active job seekers and do not respond to advertisements, and in order for their interest to be raised an individual approach must be made to them. This process presupposes considerable research in the executive marketplace, due diligence on candidates and a highly confidential approach to the processing of data associated with the assignment. For that reason the AESC strives to establish and promote the highest professional and ethical standards for the profession. II. The Collection of Personal Data Throughout the Executive Search Process In order to conduct an effective search assignment a search firm will proactively contact senior executives and sources in its research and networking efforts and therefore acquire and process new data rather than just rely on existing databases. Sourcing involves contacting relevant individuals who may be willing to suggest and comment on leading executives in their particular field. Such sources may be found among professional service firms, industry associations, trade

ISSUE 23 2005 search-consult

wydanie 23d.fh8 01/06/2005 10:21 Page 24 C

CY CMY

London: +44 (0)20 7828 8520

E: SEARCH@J-P-A.CO.UK

wydanie 23d.fh8 01/06/2005 10:21 Page 25 C

journalists as well as executives operating in that field or through the executive search firms' own databases. Although the search firm has no contractual relationship with the senior executive it is in the interests of the search firm to maintain the highest standards of honesty, confidentiality and consideration when dealing with them. Otherwise the latter would not share his own confidential career aspirations, comments on other executives, or his knowledge of the marketplace - all which are critical pieces of information in the executive search process. Thus search firms do not reveal sources of their information (without prior permission) nor do they divulge a candidate's personal information (other than that publicly available) to a client without the candidate's prior awareness and consent. Such information is considered highly confidential, proprietary material of the executive search firm and it would be a complete breach of trust if such information were made available to third parties without the consent of the candidate or if it were to be used for purposes other than executive search. In addition to the proactive collection of data by search firms many executives send unsolicited career resumes and CVs to search firms for inclusion in their files or submit this data to them on-line via the search firm's website. They do so with the expectation that the search firm will refer to these files when conducting assignments. Executives are thus willing sharers of information with executive search firms but nevertheless expect the very highest standards of confidentiality from them. If there is no assignment currently available, which is of interest to them, then most will be content for the firm to retain their details for reference against other opportunities that may arise. Most will also willingly update their details held by a search firm in order to keep their file current. During the process of qualifying and interviewing a senior executive in connection with a specific recruiting assignment further information will be

- D

CY CMY

added to the executive's file to assist the evaluation of the candidate against the requirements of the position, and as appropriate such information will be shared with the client. III. Data Privacy Principles and Laws An increasing number of national governments have passed data privacy legislation, which affects the executive search profession. Although many aspects of data privacy and confidentiality issues are already covered by the AESC Code of Conduct and Professional Practice Guidelines, the AESC nevertheless encourages executive search firms to check whether their practices also comply with applicable national data privacy legislation affecting their national/international operations. The most detailed data privacy legislation has been enacted by the European Union (EU), Canada and Australia. In the USA, aspects of data privacy are covered by the Fair Credit Reporting Act and the Californian Fair Information Practice Principles (see below for details on this legislation). Such legislation is essentially based upon the following principles: • Information definition • Collection based on specific purpose and intent • Accessibility by the data subject • Opt in/opt out measures • Limitation on data retention • Data accuracy • Data security safeguards • Accountability III.a. Data Protection and Executive Search in Europe EU data privacy legislation was first introduced in the EU as a whole in 1995 under EU Directive 95/46. This directive became law within the 15 member states in October 1998. The law is enforced by the 15 national Data Protection Authorities who may employ sanctions ranging from significant fines to injunctions to stop processing data until data protection regulations are complied with.

III.a.1 Obligations on executive search firms operating in the EU Under the EU Data Protection legislation, when processing personal data in the EU, executive search firms should assure senior executives that: • Their personal data is being collected and processed for specified, explicit and legitimate purposes, determined at the time of collection. For instance for the purpose of executive search activity. • Their personal data will only be processed provided that they have given their consent. • The personal data collected is adequate, relevant and not excessive in relation to the purpose for which it is collected. • They will not process sensitive data, such as that related to ethnic origin, political beliefs, health or sexual preference, unless it is relevant for a specific assignment and that they have given their explicit consent. • Their personal data will be accessible and processed in strict confidentiality by authorized staff within the firm. • They will take all necessary steps to keep the data accurate and up to date. • Their personal data is not kept longer than necessary in view of the purpose of the processing. • Their personal data will only be transferred to their clients provided that the senior executive has given unambiguous consent. • They will take appropriate state-of the art technical and organizational security measures to protect personal data against accidental or unlawful destruction, accidental loss, improper alteration, or unauthorized disclosure or access. • Their clients acknowledge that they will adhere to privacy and confidentiality standards equivalent to theirs. ISSUE 23 2005 search-consult

wydanie 23d.fh8 01/06/2005 10:21 Page 26 C

- D

III.a.2. Rights of the Senior Executive When giving consent to personal data collection, the senior executives should be informed of: • The purpose of the personal data processing • Categories of recipients to whom the data may be disclosed during the search process In addition, executive search firms should inform and grant senior executives the following rights: • To obtain upon request a copy of all data relating to them, provided that the rights and legitimate of other individuals (e.g. reference sources) are not adversely affected • To correct and update their data • To request no further contact from the executive search firm • To request the complete deletion of their personal data III.a.3. Personal Data transfer outside the EU and executive search As client companies expand into new markets and as globalization becomes a key strategic focus, the need to identify executives with international experience is more pressing and there is a strong demand for expatriate managers who are willing to relocate to another country. In addition, an increasing number of senior executives are internationally mobile and a significant percentage of search projects involve cross-border work. Executive search firms make an important contribution to this process and logically operate internationally with offices in different parts of the world organized in industry practices so that they can serve international corporations, which are their major clients. Many large executive search firms have invested heavily in technological infrastructure, which has allowed them to establish secure wide area networks to share information within their own firm. Typically, all the offices of an international search firm abide by the same code of ethics with regard to confidentiality of information. According to the EU data privacy directive, personal data cannot be transferred outside the EU to countries

search-consult ISSUE 23 2005

CY CMY

which do not provide adequate levels of protection (http://www.europa.eu.int/ comm/internal_market/privacy/adequa cy_en.htm). However the Directive allows for exceptions. For instance, personal data can lawfully be transferred to third countries, which does not guarantee satisfactory protection if: • The senior executive has given unambiguous, freely given and informed consent for their personal data to be "exported" outside the EU • USA recipients of European personal data register with the US Department of Commerce and adhere to the "safe harbour scheme" aimed at fulfilling the adequacy requirements of Article 25 of the EU Directive • Non EU recipients negotiate specific contracts with European counterparts to comply with the EU legislation, as allowed under Article 26(2) • An executive search firm develops its worldwide binding Corporate Rules for international transfer, which comply with the EU privacy legislation. That option is still at the consultation stage though and has not yet been decided upon by the EU III.a.4. AESC Code of Conduct. The AESC is currently developing and negotiating at the EU level (EU Working Party 29), its own Code of Conduct reflecting specific aspects of the executive search profession. The draft code provides standards with regard to the processing of personal data on senior executives - such data being fundamental to the performance of retained executive search activity and, if approved with the EU will be an adjunct to the AESC Code of Ethics and Professional Practice Guidelines.

California Office of Privacy Protection http://www.privacy.ca.gov/lawenforcem ent/laws.htm This page contains links to some of the major privacy protection laws at the State and federal level. U.S. Department of Commerce: Safe Harbor http://www.export.gov/safeharbor/ The "safe harbor" framework is an important way for U.S. companies to avoid experiencing interruptions in their business dealings with the EU or facing prosecution by European authorities under European privacy laws. Data Privacy and Executive Search in Australia Australian Federal Privacy Law http://www.privacy.gov.au/act/index.html This page consolidates the legislation, regulations, codes, determinations and guidelines which affect private sector business, health service providers and Commonwealth and ACT government agencies. Data Privacy and Executive Search in Canada Office of the Privacy Commissioner of Canada - http://www.privcom.gc.ca/ekit/ ekit_e.asp The Office of the Privacy Commissioner of Canada has gathered useful information to help businesses learn how they can comply with the Personal Information Protection and Electronic Documents (PIPED) Act. National Data Protection Authorities throughout the World and Other Useful Links National Data Protection Commissioners - http://europa.eu.int/comm/internal_ market/privacy/links_en.htm List of National Data Protection Commisioners throughout the World.

www.search-consult.com

IV. Further Information Data Privacy and Executive Search in the USA Fair Credit Reporting Act

For more information, contact: Mr. Peter Felix, President AESC E-mail: pmf@aesc.org

wydanie 23d.fh8 01/06/2005 10:21 Page 27 C

CY CMY

wydanie 23d.fh8 01/06/2005 10:21 Page 28 C

CY CMY

Building Leadership teams across the world

51 Offices in 35 Countries http://www.transearch.com