search-consult Issue 24

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2005 / ISSUE 24

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The International Executive Search Magazine

The Largest Search Firms in the World 2005 How Search in the Middle East is Evolving Interview with Nancy Garrison Jenn Technology & Executive Search

COMING UP IN FUTURE ISSUES:

www.search-consult.com Succession Planning

Executive Talent Online

In-House Search

What Do Your Clients Want?

SUBSCRIBE ON-LINE

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search-consult MANAGING DIRECTOR Jason Starr jason@search-consult.com EDITORIAL Pilar Gumucio editorial@search-consult.com PRODUCTION Yann Le Leyour yann@search-consult.com

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Clients & Headhunters: How to Maximise your Relationship .................................page 4 Both clients and consultants alike are analysing ways to make their relationships more productive. With a new book out on headhunters, Nancy Garrison Jenn discusses her views on this topic with searchconsult.

The Largest Search Firms in the World 2005 ...........................................................................page 9 Our annual survey of the largest Search networks is back. Learn which firms made the top 20 globally, and who the key leaders are in each local region.

Chile: A Business Platform for Latin America ......................................................................page 15 Boyden, one of Chile’s leading Search players discusses how this country is now becoming a regional hub for Corporations and Executive Recruitment!

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.

How Search in the Middle East is Evolving .............................................................................page 17 As commerce grows and becomes more dynamic and sophisticated, so does Executive Search. Nick Ekendahl, Regional Director for SpenglerFox MEAA, reports.

Selecting an Executive Search Management System ....................................................page 19 Jason Starr takes a look at how to ensure that your requirements will be matched by your software provider by following the decision-making process step by step.

Stanton Chase International: “When the Client Speaks, We Listen” ...........page 22 Read how the firm’s strong client focus, unique business model and local insight combined with a global reach, has allowed Stanton Chase International to establish compelling partnerships that have fostered clients and candidates to succeed.

What Do Your Clients Want? ..................................................................................................................page 25 We continue to explore the views clients have on the Search industry. In this edition, Pilar Gumucio interviews Mohamed Danish, Head of HR for American Express Middle East and North Africa to obtain a perspective from a multinational corporation operating in an emerging market.

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.

© Copyright 2005 Dillistone Systems Ltd

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Clients & Headhunters:

How to maximise your relationship

By Pilar Gumucio These are busy days for the search industry. The global economy is performing much better and companies are hiring more and more executives.

M o r e o v e r, n e w p a r a m e t e r s a r e arising in the global market that are making the hiring process more complex, where quality and speed are essential.

Within this context, the relationship between a search firm and a client is becoming more demanding. In fact, both are looking for ways to make their association more productive, explains Nancy Garrison Jenn, author of Headhunters and How to Use Them, in an exclusive interview with search-consult.

During the process of researching this book, Garrison Jenn interviewed a number of HR Directors and senior staff of the top search firms worldwide. She said that more and more companies are becoming increasingly aware of the competitive edge that the right people make to an organisation’s

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productivity. And just like they are expecting immediate results from the selected candidates, they are also expecting immediate benefits from the selected search firms they choose to help them gain or maintain their comparative advantage.

Nancy Garrison Jenn

“HR directors want quality, speed and more value added thus, there is

an increased demand for ongoing market intelligence, benchmarking, and in general, a more consultative approach,” she stated.

THE RIGHT OFFERING As competition increases and search firms strive to comply with the high quality demands of the market, search firms are working very hard in their offerings.

Small specialised boutiques are strengthening their industry knowledge and client focus.

Large global firms are increasing their global reach and are building up their worldwide reputation.

At the same time, firms – such as Egon Zehnder, Russell Reynolds and Spencer Stuart – are primarily focusing on enhancing their executive search offering.

Others, such as Korn/Ferry and Heidrick & Struggles are expanding their offerings to include a more diverse portfolio of services such as management appraisal and executive coaching.

According to Garrison Jenn, the

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beauty of this business is that “there is room for both, global firms with geographic reach, and the specialised boutiques which have depth and are often innovative and actively engaged with the client.”

She quoted insiders as saying that professional standards are improving, and will continue to do so as long as clients insist that the standards be maintained or raised.

Within this context, she reported that firms, and thus consultants, have in the past been rewarded on individual efforts. This is now changing as a team approach is starting to be valued as a more effective way to be able to respond to clients’ demands.

She added that in order to really achieve this, it is necessary to change the current compensation structures to reflect this entrepreneurial and cohesive team spirit.

In fact, Garrison Jenn recommended: “when a company is looking to hire a search firm, it should take into account how the consultants who will be working with them are motivated and compensated.”

Companies should also understand that working with a search firm implies much more than a simple transaction.

A NEW PARTNERSHIP Garrison Jenn explained that during and right after the last recession, many companies and search firms focused on cutting costs. This in turn lowered the standard of level expected by many clients as many companies reported their dissatisfaction with the candidates chosen and how the process was carried out. The industry was forced to take a deeper look at itself and find ways to better their service.

As a result, clients began demanding a more strategic association. Garrison Jenn insisted

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that in today ’s current environment, companies and search firms need to move away from a transaction mind set and learn to maximise their relationships even further.

She stated: “Clients need to put a stop to the purchasing department being involved in decisions that they are simply not equipped to make.

Search firms need to talk to clients more strategically, talking about issues such as retention and leadership development.”

According to this author, current market demands and the impact of Sarbanes Oxley regulations have created new requirements for managers and boards. “Companies are turning to search to help them assess composition of boards, functional expertise of critically important roles such as CFO, risk management and compliance.”

Search firms are also aware of this new approach. In her book, Garrison Jenn cited Bob Damon of Korn/Ferry, who noted:

“search firms must transform themselves from transaction-based

to trusted advisers, and develop close personal relationships with their clients.

This is the key to maximising the relationship.”

vendors

HAVING A STRATEGIC VISION Nancy Garrison Jenn encourages companies and search firms to become strategic partners, sooner rather than later so that each can benefit accordingly.

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According to her, many searches commence after a key employee has departed as speed places a crucial factor. Furthermore, this often “leads to a search for candidates who are available and are what is known as front of mind.”

Nevertheless, Garrison Jenn noted how it is far better to conduct a systematic analysis of the market, including out of the box ideas, which can lead to a better shortlist and eventual appointment.

In fact, the author insisted that the best practice is to have an association in which the company and the search consultant openly discuss the firms’ succession planning, such that the search firm is aware in advance of potential hiring needs and, as well as understanding specific assignments, can undertake anticipatory searches.

She reported how this association “has to be a long term partnership that involves succession planning, periodic meetings, thinking strategically, cultural fit, emotional intelligence and understanding the culture of the company.”

As a result, clients will not only attain the right executive to fill a position, but they will obtain much more, such as knowing that they have the right team in place, making sure that each team member is c o m p e n s a t e d a c c o r d i n g l y, elaborating a succession strategy as well as understanding where their competitive threats will come from.

Garrison Jenn explained that those HR directors that support this approach suggest that senior search consultants should be seen as an integral part of their team.

She quoted Peter Wright of Estée Lauder as saying: “Good headhunters who are deeply steeped in their markets on a global level can add real business benefit beyond the search. They can give you a people-based competitive view of the market. They can provide valuable insight into the new

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business areas, particularly the way organisations structure their overall approach and, of course, compensation trends… If this advisory service can be provided combined with consistent delivery on quality searches, then surely this must be worth nurturing.”

A DELICATE OPERATION O b v i o u s l y, w i t h a l l t h e s e requirements the process of finding a search firm that fits the necessities of a company is now more delicate and complex.

In fact, Nancy Garrison Jenn made reference to a quote made by Manuel Marquez of Spencer Stuart, which stated:

“The economics of search have more to do with getting value than the cost of the service itself.

The right placement will provide huge added value, whereas a mistake can result in serious losses for a company.”

A c c o r d i n g t o t h e a u t h o r, headhunters get it right when they have the time to be thorough and systematic; when there is empathy between them and the client; when they have a thorough knowledge of the client and are well briefed; when they know the marketplace and the candidate pool and when they can establish rigorous time frames and stick to them.

In fact, Garrison Jenn has listed a series of criteria to select the right

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search firm, drawn from discussions with HR directors at major organisations as well as reputable headhunters. The list includes:

• Expertise: the consultant has to understand the business, the job, the culture, the organization and the market.

• Ambassadorial ability: Does the headhunter represent your company well in the marketplace?

• Reputation: The headhunter has to be known for the high quality of his/her work.

• Speed: the client needs to be sure that the consultant will act with a desired speed, bearing in mind what he can realistically expect if the job is to be done well.

• Communication: This is an essential issue, because the client has to have a periodical report and has to be aware of the progress of the search.

SPEAKING TO THE HEADHUNTER Nancy Garrison Jenn insisted that it is always a good policy to speak to the headhunter personally, but more importantly, visit their offices to get a feel of their atmosphere and how they work. Talk to past clients of the headhunter you are contemplating using. Speak to other headhunters to gain their perspective and help you assess if the consultant that will be handling your search really does suit your needs, does have invaluable market knowledge and an outstanding track record.

Once you have selected the firm, the author suggested that you provide the consultant with “as much information as possible about the company and the post. Explain why the role may be difficult to fill. Be clear and provide explicit milestones and benchmarking criteria to evaluate performance. Identify success criteria and treat the headhunter as part of your own team.”

In fact, insisted Garrison Jenn, the more access the consultant has, the better able to propose suitable candidates.

The author quoted Andrew Lowenthal of Egon Zehnder, who said:

“The art of the good executive firm is not only to know all the potential candidates

but, more importantly, to know their motivations, what sort of positioning might attract them and be able to assess if the fit is right.”

This can only be done if the search consultant has a clear idea of what you, as the client, want to achieve. The more information about your firm you provide them, the more you will help them understand your company better as they are then able to attract and help you select the right candidate.

In the end, what is important is that both the headhunter and the client learn how to maximise the relationship, raising the standards for both to continue to be effective in attracting high calibre executives. www.search-consult.com For more information, contact: Email: nancy@ngjenn.com

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The

Largest Search Firms

in the World - 2005

By Jason Starr and Pilar Gumucio

t’s that time again; searchconsult’s annual review of the largest retained search firms in the World. As always, we have taken the approach of measuring scale in terms of global reach. Simply put, we count the number of offices.

To be more specific, we count the number of offices that are identified primarily from retained search firms and exclusively from firms that are actively involved in Human Resources.

If a search business is formally a subsidiary of a larger group (i.e., A.T. Ke a r n e y E x e c u t i v e S e a r c h i s genuinely separate to A.T. Kearney Management Consulting) then it may be included, but only those offices providing search services will be considered for the count.

Rightly or wrongly, this approach excludes lower level recruiters that ‘dabble’ in retained search, looser networks that provide services beyond human resources and most of the management consulting firms. It does, however, give us a list of fairly well recognised search firms.

The survey methodology is to ask firms to provide a breakdown of offices on this basis. search-consult

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then randomly checks a sample of these responses. For those firms who do not provide data, we endeavour to do a manual count through information sourced elsewhere. If a firm specifically asks not to be included, we respect this request.

Many may argue that due to modern communications and specialist external researchers, a search firm does not necessarily need to set up an office in a particular country to be able to recruit candidates from that countr y. Nevertheless, executive search implies much more than just sourcing candidates. A profound understanding of the local business culture and legal framework, fully comprehending the latest trends and compensation packages, the advantages and challenges the local market may have, as well as where to source and how to find the right candidate is much more effective w h e n a f u l l - t i m e , l o c a l l y- b a s e d search consultant performs these activities.

As globalisation spreads, in conjunction with clients and search firms’ business evolving from a simple transaction to more of a trusted

adviser and strategic partner, the demand to offer clients and candidates a consistent and truly global reach is paramount.

Within this context, our survey not only provides a macro panorama of the number of firms that operate on a global basis but also allows us to provide a more detailed regional focus, identifying specific firms that are stronger in certain parts of the world – something that few revenue based evaluations can provide.

So, enough with the presentation… onto the results: THE WINNER IS …

The largest retained executive search organisation in the world, by the number of offices, remains the Amrop / Hever Group. The network has grown from 79 offices last year to 83 this year – and remains some distance ahead of the rest. Their business is spread across 51 countries and achieved revenues last year of around $150 Million.

Gerard Nauwelaerts, Executive Director of Amrop Hever reports: “Being the largest network in the world gives a feeling of strength,

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The Largest Executive Search Firms in the World - 2005.

NO 1 2 3 4 5 6 7

8 9 10 11 12 13 14 15 16 17 18

19 20

NAME Amrop Hever Group AIMS Korn/Ferry INAC IESF Boyden Egon Zehnder Heidrick & Struggles Stanton Chase The Taplow Group Transearch Int Spencer Stuart Ray & Berndtson DHR International Intersearch AEA Int Search EMA Partners IMD Horton International IRC Russell Reynolds World Search Group AT Kearney Signium CFR Neumann Penrhyn Accord Group TOTAL

N AMERICA OTHER AMERICA EUROPE SE ASIA OTHER 10 11 43 18 1 7 6 45 9 1 22 10 19 16 0 0 4 52 5 2 5 6 23 27 1 13 6 26 14 1 11 6 29 13 0 18 7 22 11 1 13 9 17 20 0 11 7 28 11 0 9 5 26 8 2 17 5 19 7 1 7 6 30 5 1 39 1 2 2 0 2 3 27 8 3 8 3 27 4 1 11 5 22 4 0 2 0 25 8 0 2 3 21 8 0 2 0 31 1 0 12 2 13 6 0 10 0 13 6 1 11 1 12 4 0 3 1 18 6 0 0 0 27 1 0 0 0 23 0 0 2 4 11 3 0 0 1 13 5 1 247 112 664 230 17

TOTAL 83 68 67 63 62 60 59 59 59 57 50 49 49 44 43 43 42 35 34 34 33 30 28 28 28 23 20 20 1270

TABLE 1: The Amrop Hever Group leads globally

confidence and pride. But, as for every number 1, complacency is the capital sin not to commit.”

He explains how “neither our 150 million USD combined turnover, nor our geographical lead position give us any competitive advantage beyond the front door. Our real competitive advantage lies in our ‘entrepreneurial corporation’, which combines seamless collaborative work, a relentless pursuit to quality and the enjoyment of a truly global, multicultural and inspiring partnership. Being the best network for our clients, our consultants and our researchers is our simple but ambitious aim.”

The survey has previously noted that Amrop / Hever was particularly strong in Europe and South America, but was somewhat vulnerable in the US. The addition of Battalia Winston this year will certainly resolve any remaining doubts.

AIMS takes the number two position f r o m K o r n / Fe r r y w h i l e H e i d r i c k & Struggles – in revenue terms, usually found contending with Korn/Ferry for the number 1 slot, is in

8th place, having moved down from 6th in 2004.

REVEALING FOR THE AMERICAS In North America (which entails Canada and the United States), DHR International remains the largest search firm with offices in 39 l o c a t i o n s . D u r i n g t h e y e a r, t h e Chicago-based firm opened offices in Boston, Houston, San Francisco and Salt Lake City while also recently acquiring Los Angeles-based Colleen Hulce Executive Search and is continuously adding a number of consultants.

"Our many US office locations are a means to best serve our client base. The demand for senior-level executives is rapidly increasing, and as a response to this growth in the economy, DHR has been aggressively expanding. We continue to acquire search firms, and hire professional and seasoned search consultants. Our office locations are in key markets throughout the United States, as well as internationally with wholly owned offices in Hong Kong, Tokyo, London, Brussels, and Mexico City," says David

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Hoffmann, Chairman and CEO, DHR International.

Korn/Ferry holds the number two position with 22 offices, while Heidrick & Struggles moves up to third with 18 offices.

The top spot in Other America, which consists of offices based in Central and South America, has gone to Amrop/Hever for another consecutive year. Korn/Ferry and Stanton Chase International take second and third place respectively.

ANNOUNCING FOR EUROPE INAC – The International Network of Associated Consultants takes pole position in Europe. This group is actually relatively small in terms of numbers – just 22 members – but many of these members boast offices in more than one country and this, along with a very strong reputation in Europe earns them pole position.

Clive Miéville, CEO of INAC, adds: “ What characterises INAC is its owner-manager involvement in each country. Every client knows that the consultants he's dealing with will not be an anonymous entity but a clearly identified face! INAC consultants have expert local knowledge of their market and, through the network, allow their clients to take advantage of global expertise.”

He states, “Since INAC is of European inspiration, and therefore different in nature to the Anglo-Saxon giants, we are delighted to know that our coverage of the European markets is obtaining recognition. INAC also has representatives in Asia, the Americas and Australasia.”

AIMS and Amrop Hever are also very strong in Europe, with 45 and 43 offices respectively. AIMS has a good spread of offices across the continent, and are particularly strong in the emerging market that was formerly known as Eastern Europe.

REPORTING FOR ASIA PACIFIC IESF takes the crown in Asia Pacific, boasting 27 offices in this ISSUE 24 2005 search-consult

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NAME DHR International Korn/Ferry Heidrick & Struggles Spencer Stuart Boyden Stanton Chase

N AMERICA OTHER AMERICA EUROPE SE ASIA OTHER 39 1 2 2 0 22 10 19 16 0 18 7 22 11 1 17 5 19 7 1 13 6 26 14 1 13 9 17 20 0

TOTAL 44 67 59 49 60 59

Table 2: DHR International leads in North America

NO 1 2 3 4

NAME Amrop Hever Group Korn/Ferry Stanton Chase Heidrick & Struggles The Taplow Group 5 Egon Zehnder AIMS IESF Ray & Berndtson Boyden

N AMERICA OTHER AMERICA EUROPE SE ASIA OTHER 10 11 43 18 1 22 10 19 16 0 13 9 17 20 0 18 7 22 11 1 11 7 28 11 0 11 6 29 13 0 7 6 45 9 1 5 6 23 27 1 7 6 30 5 1 13 6 26 14 1

TOTAL 83 67 59 59 57 59 68 62 49 60

Table 3: The Amrop Hever Group leads in Central & South America

NO 1 2 3 4 5

NAME INAC AIMS Amrop Hever Group IRC Ray & Berndtson

N AMERICA OTHER AMERICA EUROPE SE ASIA OTHER 0 4 52 5 2 7 6 45 9 1 10 11 43 18 1 2 0 31 1 0 7 6 30 5 1

TOTAL 63 68 83 34 49

Table 4: INAC leads in Europe

NO 1 2 3 4 5

NAME IESF Stanton Chase Amrop Hever Group Korn/Ferry Boyden

N AMERICA OTHER AMERICA EUROPE SE ASIA OTHER 5 6 23 27 1 13 9 17 20 0 10 11 43 18 1 22 10 19 16 0 13 6 26 14 1

TOTAL 62 59 83 67 60

Table 5: IESF leads in the Asia Pacific region

region. This firm operates on the principle of one member firm per c o u n t r y. T h e y b e l i e v e t h a t t h i s philosophy allows the firm to offer international clients the highest level of commitment.

IESF Joint President, Mark Geary, who is based in Hong Kong, comments: “The International Executive Search Federation (IESF) is delighted to learn that it is confirmed as the No 1 executive search and selection partnership in Asia Pacific and No 5 globally by search-consult.”

He adds: “What has spurred the growth in IESF is getting back to the basics of global executive search and selection networks. Some erstwhile famous groups have chosen to go public and in the drive for revenues

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Leading Executive Search Firms in Respective Regions.

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have lost their focus and identity as they diversified from executive search into other consulting activities, which has confused clients. IESF went back to the basics of partnership – one member per country, new members serving a probation period before being ‘elected’ into membership by the rest of the members, keeping services focused on executive recruitment and keeping running costs down. Several new members joined IESF from other groups tired of paying high fees and seeing ver y little global activity resulting. Clients are also looking for re-assurance about delivery - all our member firms are privately owned, a factor that also appeals to too many of our clients as they know if we don’t deliver we don’t eat.”

Stanton Chase, Amrop / Hever and Korn/Ferry have also ranked strongly in Asia Pacific, with 20, 18 and 16 offices respectively.

IN CONCLUSION Overall, it is interesting to note that, despite the booming search environment which we are now enjoying, the actually number of offices boasted by the top 5 firms is essentially stable. This probably reflects that the upper echelon of the industry – at least as defined by these criteria – is dominated by the networks (as opposed to the integrated firms) and the networks are all fighting for the same members. This tends to mean that while firms may move between networks, the total number of offices remains roughly the same.

What is also noticeable is the difference between the ‘big hitters’ in the US and in Europe. Only one firm – Korn/Ferry International – makes the top 5 lists for both regions. As the market for executive search becomes increasingly global, firms will find it increasingly important to find crossatlantic alliances. This may mean high quality boutiques making strategic alliances, firms consolidating and even partnerships between networks are possible. Remember that in 2002 Amrop / Hever was formed from two individual networks. Organisations that have a strong presence in one region could certainly wish to cooperate with firms that have a strong presence in another region that will ser ve to enhance both of these organisations’ assets.

Any ranking of search firms will be controversial. The criteria for selection and the criteria for ranking are both fairly arbitrar y and, as such, we await and welcome your feedback! www.search-consult.com For more information, contact: Web: www.search-consult.com

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Chile:

A Business Platform Latin America

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verall, Chile is highly attractive to international business. This increases the opportunities for the search industry.

It has a stable democratic government and an economy, which is the envy of many developing countries. Chile is a small country, with a homogenous population of 16.1 million, located on the far southern western side of Latin America. Chile has been developing consistently during the last 30 years. Current year GDP growth is projected to be around 6.25% with a 12 month accumulated inflation rate of 3.1%. This is higher than expected, mainly due to oil price increases. Income per capita for 2004 was US$ 5,897.

Unemployment, measured as a percentage of the economically active population, is only 8.7%. The current growth cycle has been driven by high copper prices, strong domestic demand and imports all within the framework of strict fiscal policies that target a fiscal surplus of 1% of GDP. This is currently running at 1.4%.

Approximately 87% of 2005 first semester government expenditure belongs to current expenditures, two thirds of which are attributable to increased spending of Health, Justice, Defence, Public Works and the judicial sector reform.

The Chilean Selective Share Price Index (IPSA) closed for the first six month of the year with a gain of 14.2% and the projection is to reach 18% by year-end. The trade surplus for the first six months stands at just over US$ 5.3 billion, reflecting 27% growth in exports and a 39% growth in imports (2004 figures were US$ 32 billion and US$ 23 billion respectively). The strong increase in imports mirrors domestic demand that has started to follow export driven growth. Chilean exports to the Americas grew by 29%, to Asia by 27% and to Europe by 23%.

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Overall, 36% of Chilean exports go to Asia, 35% to the Americas and 27% to Europe. The principal destination for Chilean exports is the US with 15.7%, followed by China with 12.1% and Japan with 11.5%.

Under this positive economic and political scenario, presidential elections will take place on December 2005, where no substantial changes in economic policies are expected from any of the leading candidates.

John Byrne

SHEER MAGNETISM As a result, multinational companies are taking advantage of Chile’s economic and political stability. There is a growing trend among them to establish their Regional Headquarters and in some cases their Shared Services Divisions in this country. This is the case of Unilever, which moved to Santiago in 2004. Soon afterwards, Nestlé and Xerox

By John Byrne established their Southern Cone offices in the capital city.

Unsurprisingly, mining giants such as BHP Billiton have recently moved their Base Metals World Headquarters to Santiago. World-class mining equipment suppliers such as Bucyrus, Orica, P&H MinePro and Finning are also here.

Fast Moving Consumer Goods such as Clorox, Beiersdorf and Kodak have their Latin American headquarters in Santiago. Chemical related industries such as Methanex have offices based in this country’s capital city.

Motorola and Cellstar have back office facilities in this country as HP, Air France and Delta Airlines have all established their call centers here. Service leaders Sodexho Aramark and Compass have also set up an office in Santiago as the number of multinational companies operating from Chile continues to grow.

These companies, operating in the post Enron era, have brought to the local market additional requirements caused by the implementation of Sarbanes Oxley. This has generated a significant demand for qualified professionals in financial control. A recent study by the American Chilean Chamber of Commerce indicated that 22 of their 1,000 members have some type of Regional Platform already in place. The Chilean Foreign Investment Agency reports that 44 multinationals are operating out of Chile.

In the same survey, companies were asked, why they had installed this type of platform.

73% indicated that this was driven by cost reduction considerations. 68% cited centralization of operations. 45% replied that it was to facilitate the standardization of procedures . 41% of respondents said it was to increase the added value to their process.

When asked why they had opted for Chile

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the reasons were: economic stability (86%), Security (82%), good quality professionals (77%), low corruption levels (50%), transparency (45%), low financial costs (32%) and the existence of multiple trade agreements that give good access to relevant markets (32%). The infrastructure, climate, legal system and good communications were also mentioned as critical factors. A survey done

by AT Kearney placed Chile on the seventh place out of 25 desirable locations to establish a business platform among multinationals.

The negative points raised are the limited availability of foreign language speakers and rigid labor laws that include limitations as to the quantity of foreign nationals that can be employed by the local corporation (15% of payroll maximum). The activities being performed in this country include: regional offices, back office, technical support centres, software development and call centers. The countries being served from Chile include: Peru, Argentina, Colombia, Mexico, Uruguay and Paraguay.

Clearly the most important barrier these companies have encountered is the availability of English speakers. The Chilean government developed a database, of which 6,505 people qualified with the minimum standards; these represented 37.3% of the people that took these tests. Double taxation is also an issue, but it is currently being resolved through the trade agreements and multiple bilateral tax agreements which Chile is part of.

SEARCHING FOR THE RIGHT TALENT From a search perspective, Chile’s positive economic situation means added demand for the right talent in a market that is both dynamic and constricted. The latter is due to a relatively shallow talent pool and pressure from booming industries like mining, salmon farming, viticulture and retailing. Mining is by far the highest growth sector and leadership candidates are sourced from around the world, due to the limited local pool of qualified leaders.

Other areas that are demanding executives are the export oriented businesses such as viticulture and fish farming. Both of these industries are now in a second or third stage of their international development and are establishing offices close to their markets as opposed to just selling their goods to traders.

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Furthermore, this new demand has to compete with the growing internationalization of Chilean corporations such as Compañia Sud Americana de Vapores (the 14 largest shipping company in the World), Lan Airways (which has taken a significant portion of Latin America’s freight and passenger traffic with operations in Florida, Ecuador, Peru and Argentina), retail operations by Falabella, Ripley and Farmacias Ahumada as well as Sonda (that develops software in multiple locations).

Japanese trading houses are also present, such as Sumitomo Corporation and Mitsui.

At the same time, many local corporations now have significant investments in the region such as CMPC, Celulosa Arauco, and Masisa in the forestry sector; Concha y Toro as well as San Pedro in the wine sector; Metalpar and CTI in the manufacturing area, and quite a growing number of entertainment and real estate development groups in Florida. All of these ventures require qualified management professionals.

To serve this growth, leading search firms including Boyden, are present with healthy and professional operations. At the same time, many local companies, such as Seminarium and Hemisferio Izquierdo, were established as offspring from the international search firms as competition is intensifying.

The original market for search firms was geared towards multinational corporations, but has gradually expanded to include large local corporations, mid-sized firms and family owned companies. Significant portions of the senior management positions are still recruited through school or family acquaintances; however, this is declining as market sophistication continues to increase. The fact that Chile is being used as a Business Platform is an advantage for a firm like Boyden with its global search system. The same is true for the local corporations that have international trade or investments that require world-class executives, which they may not always find in this country.

Talent search in Latin America has a global view and current assignments have lowered country barriers, and thus, are creating opportunities for culture diversity that is strongly demanded by corporations that service this region. Even though countries, with the exception of Brazil, speak the same language, local culture requires local exposure when

managing the operations out of a regional platform. Companies must be well aware of the linguistic, social and cultural challenges they shall encounter. The search industry in Chile reflects the nation’s economic activity and therefore should be highly oriented towards export related industries. These international search firms have important advantages as they can gather world resources to serve their regional clients. Many cross – border searches within the region are taking place with multiple sourcing options so as to better serve their customer base. In fact, the principal markets to recruit from are Argentina, Brazil, Mexico and Peru. In the case of mining, executives are being hired from Canada and Australia. Cross border searches are increasing as the war for talent in Chile continues to increase.

Corporations around the region are ramping up their investments and operations to achieve higher levels of productivity.

Therefore, they need to do a better job recruiting and retaining their top talent. The obvious effect is that search firms are being obliged to become more creative and innovative, reduce cycle times, demonstrate expertise and further improve their service as they deliver impeccable results.

John Byrne –Managing Partner, Santiago Office Born in Lima, Peru, John now holds dual Chilean/British nationality. He has a degree in Business Administration and is also a Certified Public Accountant.

He began his professional career in 1978 in Valparaiso with a ship & stevedoring agency and in 1981 started a career in banking.

For twelve years he worked for the Bank of America N.T. in Santiago rising from account executive, Corporate Finance Manager, Manager of Capital Markets to finally being appointed Chile Branch Manager in 1991.

In 1994 he was appointed Senior Country Officer for The Chase Manhattan Bank N.A., Santiago and in 1995 joined the Banco Sud Americano, an important local retail institution as Executive Vice President International & Treasury Division.

In 1997 his entrepreneurial vocation led him to form Allot Consultores Asociados, a recruitment, selection and executive search company which has successfully developed a full service business to clients, including professional training and development.

Since mid 2000, John Byrne has integrated his search activities under the Boyden brand.

Boyden established an office in Santiago in 1994, and is considered among the most innovative executive search firms in the southern cone of Latin America, especially in mining and financial services. In fact, Boyden Chile has recruited the largest number of consultants to be able to effectively offer clients a more accurate and personalized service.

www.search-consult.com For more information, contact: E-mail: jbyrne@boyden.com Web: www.boyden.com

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How Search in the Middle East Is Evolving

by Nick Ekendahl oday, the rapidly developing Middle East (ME) economy offers exciting top-level career opportunities for a variety of industry sectors. Countries such as the United Arab Emirates and Qatar in particular have strong economic development programs, which will see an increase in business opportunities over the coming years. Dubai alone is the second fastest growing market in the world after Singapore. In 2004, around 20 companies registered with the UAE Economic Department to set up offices in this region.

The Middle East Business Confidence Index has also risen by 7.5% in one year.

Previously executive search in the Middle East has been advertising led, in particular using print media in each local country.

However, the Middle East marketplace has grown in sophistication, with the true search methodology evolving rapidly in recent years. For example, the classic search model -of referrals, research, networking to identify and submit a shortlist drawn from competitors of similar industries – is being increasingly employed. Large local enterprises are following the examples set by the Middle East subsidiaries of multinational companies by adopting some of their recruitment strategies. This can be seen in countries that host Middle East & Africa headquarters of those multinationals, such as Qatar, Bahrain, Kingdom of Saudi Arabia or the UAE. However, there is still considerable reliance on executives hired through directors’ own networks or recommendations, particularly amongst local Arab-owned businesses. After several years of Western-educated and experienced Arabs gaining experience in international markets,

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there is now a substantial population of Araborigin talent at senior executive levels across the full spectrum of industries.

Clients across the ME are realizing the importance of finding and appointing the best strategic and internationally minded leaders to their key positions in what is still regarded as an uncertain marketplace, and that this can only be achieved by searching a wider market of professionals. Potential talent must be coached on the enormous benefits of working in this developing and evolving region. In an ever growing and competitive region, clients are learning that advertisement or database search simply does not attract the level of managers that is required to develop their businesses accordingly.

There is now a new breed of international executive search companies that use a different philosophy to attract high calibre

Nick Ekendahl

talent to companies in this region. Middle East businesses are recognizing the need that, on occasion, they need to source senior management from outside their existing networks. These needs cannot always be fulfilled by the many hundreds of advertised recruitment agencies operating in the region.

As a result, search firms are finding that companies are more willing to engage their specialised services.

Competition is very tight, however, with fees always a deciding factor and several of the established agencies marketing themselves as “executive search” when in fact a database service is the only service provided. Having consultants who are fully knowledgeable on the cultures and region is also essential; search firms setting up without this cannot expect to be seen by local family run businesses as key players on the regional market. Developing the trust of local companies is dependant on many factors, including a transparency of successful work in the region.

Qualified professionals who have a clear understanding of the local and intricate businesses manage these executive search consultancies. They have access to a vast network of quality professionals, not just in the local market but also worldwide. Clients wishing to recruit executives with solid regional affinity and linguistic ability are just as likely to find them in North America or Europe than the Middle East. Numerous Arabic speaking professionals are eager to relocate back to the region to take advantage of the financial benefits and the high standards of living. Expatriates still also continue to look at relocating to this region for the same reasons.

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Tel Rashid, Country Manager SpenglerFox UAE, says, “Our consultants and business have prospered due to the network’s commitment to improving the multi-cultural workforce in the ME marketplace while at the same time showing a vital respect for the traditions and cultures of the region.”

All potential candidates who are new to the region are thoroughly briefed by their consultants, who have strong local knowledge in addition to international exposure. In these regions the consultant is key in acting as the mentor and coach either for a European candidate coming into a local business or a local candidate entering an international firm. The Middle East is a predominantly Islamic area, with many Arabs still rooted by the traditions of ancient tribes and civilizations. While there is a modern, and Western feel to many of the fastest growing cities, the indigenous population is, nevertheless, much more conservative than those of their European counterparts.

Mirroring client demands, the team in this regional hub conducts truly borderless searches for their clients in the ME region.

In turn, consultants are operating research activities and searches from Riyadh to Johannesburg, to Singapore to Kuwait, to Hong Kong to Cairo, to Amman to Moscow, to Edinburgh to Manila. Clients are therefore assured that the conventional recruitment practices that they were accustomed to are no longer sustainable in a marketplace where candidates are required to be both internationally experienced with an adaptability to the local and intricate ways of the ME market. For example, there are the very apparent social hierarchies that make up the working populations of the Gulf Arab nations. These differ considerably if one examines the markets of North African Arab states such as Egypt, Morocco and Tunisia. Trading environments and workforces differ again in the Levant region, which consists of Syria, Lebanon, Jordan.

The Gulf Arab nations, with their oil-driven economies tend to be the major employers of these other Arabs, who often regard themselves more educated and cultured, due their histories.

Our clients look keenly for candidates who are particularly strong in change

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management, people management and, of course, multi-cultural environments. Clients in the ME are undergoing constant changes in all areas of business and will continue to do so for many years to come. If they are of Arab-origin, then experience in a large multinational, or working directly in Europe/USA is often valued highly. It is the role of the consultant to ensure a full examination of each candidate’s background and experiences in addition to any potential issues that may arise from working in a predominately Arab region. The relationship that develops between the consultant and their candidates can often be stronger in emerging market regions such as ME than perhaps in more developed countries, due to the vital ‘coaching’ needed to ensure each candidate is aware and briefed to commit to such an environment.

The challenge now for executive search consultancies in the Middle East is to further educate their clients on the benefits of the pure search methodology. The search firm must prove it’s network’s dedication to being the clients’ leading partner in the executive recruitment process, exceeding expectations and defying the standard conventional practices that clients have been accustomed to in this region.

The Middle East is still a price sensitive market when it comes to recruitment.

However, as the marketplace evolves, more and more multinational and large local companies are seeing the benefits executive search offers. These benefits not only include attracting and recruiting the right executive but also retaining them for a longer period of time.

In addition to demonstrating a thorough understanding of the ME marketplace, a search consultant needs to be able to offer a personalized service towards clients and candidates so that an effective and continuous relationship can be achieved.

For instance, many of the larger companies in this region are family owned businesses, which means that search consultants must take this factor into account in their dealings as they continuously build on the established relationship, ensuring the client appreciates that relying on their local network will no longer suffice in a dynamic, aggressive and internationally evolving marketplace.

Establishing that vital trust with the client company in the ME requires personal attention by the search consultant. This not only entails regular updates on the assignment, but permanently satisfying queries and building a long lasting relationship so that the client adheres to the strategic benefit of the cost. While this is of paramount importance in every region worldwide, it takes a stronger understanding of local traditions to build on this in the ME. The consultant must also be fully aware of the legal restrictions in the region when it comes to attracting and transferring talents.

These restrictions may include, for example, the transfer of work visas and eligibility of candidates who may be on another company sponsored residency. The ban on transferring work visas in the region is often a cause for concern.

The Middle East is still an emotional workplace and by using impartial and trained consultants to source, assess and prepare candidates, clients can be sure they are hiring the best strategic candidates to help prepare the companies for the increasingly competitive marketplace and to become market leaders not only in the ME but on the global market.

Nick Ekendahl -Regional Director, SpenglerFox MEAA Nick Ekendahl established SpenglerFox in the Middle East in 2002. Since establishing the office in Dubai, Nick has been working in HR management, largely within the management of search & selection projects, in addition to the development and definition of job descriptions.

Nick Ekendahl serves in the position of Managing Director for SpenglerFox in the Middle East, Africa and Asia Pacific.

Prior to establishing in the UAE, Nick worked for 2 leading international Search & HR Consultancy companies. He has been involved in projects such as HR audits, management evaluation & development, salary surveys, assessment & development and change management.

Nick has a Business Administration degree from the UK.. He speaks Dutch, English, German and French fluently and is currently learning Arabic.

SpenglerFox MEAA is a part of a wholly owned Executive Search and Human Resources Consultancy network, providing highly professional and discrete service to a variety of top clients, ranging from global blue-chip organisations to large local business. Sectors covered include Technology, FMCG, Retail, Luxury Goods, Banking, Property and Petrochemicals.

Consultants are highly trained and hail from a variety of backgrounds, nationalities and industries, reflecting the cosmopolitan nature of the region. As part of their network, SpenglerFox MEAA works closely with its teams in Western Europe and Central Eastern Europe.

www.search-consult.com For more information, contact: E-mail: nekendahl@spenglerfox.com Web: www.spenglerfox.com

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Selecting an Executive Search Management

System for Your Business

By Jason Starr or every executive search firm, information management is critical. This is particularly true today as, with a variety of internet services providing high quality but generic information through the web, firms which compete through the ability to source superior candidates quickly and efficiently need to ensure that in-house knowledge management is optimal.

When not hammering out 1,300 words for this magazine, my ‘day job’ is to be CEO of Dillistone Systems – suppliers of software for managing executive search firms and publishers of search-consult. We are seeing record demand for our software – in the last month alone, we have sold systems in the US, UAE, UK, Hungar y, South Africa, Hong Kong, Singapore, Poland, Turkey, Switzerland, Belgium and New Zealand – and so I felt it would be

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useful this month to put down some thoughts on key points to consider when making a purchasing decision.

Obviously, the most fundamental point is determining a product designed for your business type. The majority of readers of this article will be partners within ‘retained’ or ‘ c l i e n t - d r i v e n’ e x e c u t i v e s e a r c h firms. If this is the case for you, then please remember that – in exactly the same way that executive search is different to applicant management, executive search software is different to applicant tracking systems (ATS).

Most ATS systems revolve around finding candidates based on resume searches. This is, of course, a perfectly valid process but it is not much use as a tool to manage a business based around finding ‘passive candidates’.

A system based around finding passive candidates will allow you to

identify associates of a candidate through an analysis of his employment history. It will allow you to track sources and referrals. It will allow you to analyse target companies and take references.

Essentially, it will reflect the search process.

Take a look at the graphic on the next page. This is a summary of the ‘typical’ executive search process.

Of course, your business is not likely to mimic this identically, but I would guess that most search firms are not going to be that far away from it. This is the core process that our FILEFINDER product is designed to support (albeit with plenty of options to customize); before you begin the process, you may find it useful to produce a flow chart to reflect how your team works. Given that most software demonstrations will take the best part of an hour, you may want to

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produce a shortlist of possible suppliers. A good way to do this is to speak to friendly competitors.

Before making contact, review supplier websites. Look for testimonials from companies like yours – executive search firms in your market. For information, you will find around 50 testimonials from FILEFINDER users at: http://www.dillistone.com/text.as p?PageId=2 Typically, if the website boasts a client list made up exclusively of the graduate recruitment teams at Fortune 500 companies then you are not looking at a firm which is structured to support an executive recruitment business. (Furthermore, if the company doesn’t have more than one or two testimonials, you may wish to ask yourself ‘why?’!)

Once you have found one or two suppliers, call them and ask them to name their main competitors. In most regions, there are only 2 or 3 serious suppliers and so this approach should get you fairly quickly to a shortlist.

Prior to the demonstration, try to have a good understanding of what you want. For larger firms with delineated job roles, try to include members of each ‘user group’ (it always amazes me when the evaluation is taken purely by a technician or ‘the boss’ – and not by the main users of the product!)

During the demonstration, try to ensure that the vendor is focussing on how your business works – not how the software works. If expecting your business, the vendor should be ready, willing and able to show how the product will support it.

Ask questions about support. If the supplier is not in your time zone, how will they help you when you need support? Even if the firm is in your time zone, what happens if you need out-of-hours support? At Dillistone Systems we maintain support desks in NJ and TX, USA, in the UK, Germany and Australia. This allows

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Client Client Briefing Briefing

Job Job & & Candidate Candidate Specification Specification

Research Research Strategy Strategy

Database Database Interrogation Interrogation

Identification Identification of of Source Source

Approach Approach Sources Sources

Approach Approach Candidates Candidates

Preliminary Preliminary Assessments Assessments

Review Review

Consultant Consultant Interview Interview

Prepare Prepare Profile Profile

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“The typical search process reflected by FILEFINDER executive search software”.

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Rejections Rejections

Reference Reference Checks Checks

Rejections Rejections

Candidate Candidate Presentation Presentation

Client Client Interview Interview

Verification Verification

Rejection Rejection

Negotiation Negotiation

Candidate Candidate Joins Joins

us to offer support pretty much all day and all night. Any client can email our support team and expect to receive a call from which ever office is open at that particular time; a client can email a request to support as he leaves his office, and can often expect a resolution when he or she returns to the office the next morning. Would you like that? Can your supplier offer that?

After the demonstration, you should expect to receive a formal proposal. This is not the end of the process, however. Prior to making a final decision you should ask to speak with references – people in similar types of firms – who can explain how the database improved their business. In practice, no vendor will offer a ‘bad client’ as a reference you are unlikely to get a response which is necessarily reflective of the client list as a whole – but speaking to any client will give you the opportunity to ask questions about practical issues such as training, support availability and data transfer.

In conclusion, the two main points when selecting a product is firstly to ensure that you purchase the product that best reflects your search process and secondly to ensure that you give enough consideration to what happens after you sign on the bottom line – support is just as important as f l a s h y f u n c t i o n a l i t y. H o w e v e r, if you don’t have time to follow full due-dilligence on your purchase, feel free to simply email sales@dillistone.com, visit www.dillistone.com or call your local Dillistone Systems office. We sell to more search firms than any other supplier and so we are a fairly safe bet!

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

Completion Completion

E-mail: sales@dillistone.com Web: www.dillistone.com

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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

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Stanton Chase International:

“When the client

speaks, we listen”

By Pilar Gumucio s globalization spreads and businesses continue to expand into new markets, more and more companies are aggressively hiring multiple executives than ever before.

Steve Watson, Chairman of Stanton Chase International (SCI) and Managing Director of the Dallas office talks to search-consult explaining how the firm’s strong client focus, unique business model and local insight combined with a global reach, has allowed SCI to establish compelling partnerships that have fostered clients and candidates to succeed.

In today ’s dynamic business environment, clients are expecting faster and more precise results as time becomes a luxury they no longer have at their disposal.

With such intense competition, clients no longer want to groom an executive into position; they demand that the chosen candidate be able to fill all the job specifications from the very start.

Watson reports how SCI is striving to find ways to speed the search process without compromising on fit, “while continuing to strengthen our offices with industrial knowledge, enhance our research capabilities, work harder to access people quicker, broaden our candidate pools and increasingly share and collaborate more with our key client accounts on a global basis.”

He states: “Speed, however, must never

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be sacrificed to quality, fit and knowledge of the industry. With our entrepreneurial approach and model, we will continue to be open to creative processes that better match that of our clients. “

Steven Watson

THE CLIENT IS PRIORITY In fact, SCI was established in 1990 after the Amsterdam, London, Paris, Baltimore, Dallas and Los Angeles offices of Marlar Associates decided to come together in search of a better business model that would allow them the necessary adaptability to be able to effectively serve their clients better.

Fifteen years later, Stanton Chase International has continued to grow. In fact, search-consult has ranked SCI among the top 7 largest search firms in the world as it operates 60 offices in 39 countries; yet this principle has remained the primary reason for this firm’s continued success. This principle entails an ownership model that permits each office to remain individually owned, while at the same time possessing an equal share in the International Firm and, thus, creating an equal peer relationship among the firm’s shareholders.

As a firm, “we don’t have hard requirements or structures on process, fees and invoicing,” describes Watson. This, in turn, allows Stanton Chase International to “adapt our process to our clients’ needs.”

These needs will obviously vary, depending on the client and the countries where the client is operating. All the offices will carry out executive search assignments but depending on the marketplace, some of SCI’s offices will also offer coaching, management assessment and lower level recruiting.

Watson states that “in the US we usually don’t have other formal services but, based on the clients’ needs, we have the flexibility to construct any appropriate consulting project where we have the knowledge.”

This formula has worked well for SCI, reporting a 26% increase in revenues for the first half of 2005 compared to the same

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period one year ago. The firm anticipates a continued dynamic employment market with positive growth throughout the remainder of the year.

He adds: “Not only have we continued the successful assimilation process of our recent worldwide office additions of the last several years, but also we have continued to grow and expand given the strong resonance of our value proposition in the market with clients, potential clients and new consultants.”

According to Watson, industrial, healthcare and pharmaceuticals, technology, energy and consumer products are currently their most active industries in executive search.

EXPERIENCE AND CREATIVITY Talking about the future and the challenges that lay ahead, the Chairman of Stanton Chase International explains how one of their main objectives is to strengthen their offices with “appropriate industry specialists for the market to meet clients’ needs, and to continue to be open to creative processes that better match our clients.”

With technology and Internet advances, this implies looking to shorten their research capabilities. Watson insists that a fundamental component of this process is their experienced consultants.

He states: “Most of our Senior Consultants have C-Level experience, which sets us apart from other search firms.”

Watson explains that this experience, combined with an intimate knowledge of their own local, regional and national markets, allows the consultant to “gain a thorough understanding of a client’s culture, industry, competitors, strategy and value proposition.”

At the same time, candidates are asking more questions about the offers. He insists that “they are much more careful on chemistry and culture fit, and want stability and growth opportunities with their next employer. They want more than just a job.”

Finding the right match, thus, is a very arduous task. It can be made easier if the consultant is experienced and partners with the client to creatively meet the new challenges ahead.

In addition, “we pay particular attention

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to cultural fit and we proactively provide market feedback to our clients.“ With each search, clients can expect to get feedback on the market including compensation data, perceptions of the client, trends and non-confidential competitive information.

A GLOBAL VIEW The Chairman of Stanton Chase International is very optimistic about the firm’s future. He believes that the next five years will be very good for this leading executive search firm.

As businesses continue to expand into new markets, clients are demanding crossborder search assignments in and from virtually every continent.

Watson describes how “from the US, we see a strong interest in China, India, Mexico, Southern Asia, Japan, and Central Europe.”

He notes that there is always activity between North America and Europe and that there is a growing interest between India and China, Scandinavia to Europe and to the US, and India to the US. Watson explains: “Some of the increased flow of assignments is due to strong outsourcing models being adapted by US and European clients for their own new business model. This is one of the strengths of our platform since we have the ability to serve clients globally with special coverage in emerging markets.”

In fact, he reports how his firm is concentrating on “enhancing key account relationships to serve clients consistently on a global basis” while at the same time “focusing their growth in emerging markets and providing value added services to clients.”

He believes SCI is well positioned to achieve these objectives, reporting how the firm has already integrated their key account program within their eight global industry practice groups as a means to better serve their major key clients consistently on a global basis.

At the same time, Stanton Chase International has recently recruited new offices in Helsinki, Finland and Auckland, New Zealand.

“The addition of new offices in Europe and the Asia/Pacific means our global

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platform and entrepreneurial approach to client service will be even greater, strengths we can leverage on behalf our clients.“ According to various publications, including search-consult, SCI is among the top seven largest search firms worldwide.

SCI is a clear leader in the booming Asia Pacific Region and third in South America.

In regard to acquiring more offices, Watson indicates that Stanton Chase International’s “continued aggressive geographical penetration strategy is now focused on emerging markets like China, India and Eastern Europe.”

He explains that they are particularly strong in China with five offices, India with four offices and have solid coverage in Central Europe.

Therefore, they are now considering possible expansions in Moscow in Russia, Sweden, Turkey, the Middle East and South Africa.

At the same time, SCI is also taking into account strengthening their US coverage to include offices in Boston, Detroit or Cleveland as well as Seattle. In Canada, SCI is examining Vancouver, Montreal and Calgary or Edmonton as possibilities.

Watson reports: “The combination of our global footprint with local market emphasis appears to getting traction in the market with clients and potential consultants who seek this blend of capabilities.”

SOLID PERFORMANCE Stanton Chase’s expansion – remarks Watson – has been built on the foundation of solid performance, consistent delivery and quality service, with greater than 70% of their work derived from longstanding clients.

In fact, SCI brand appears stronger than ever which has resulted in new client growth, new consultant acquisition and the joining of new offices worldwide.

“In essence, we strive to be as valuable to our clients as they are to us,” assures the Chairman of Stanton Chase International. www.search-consult.com For more information, contact: Web: www.stantonchase.com

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Communication

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key for clients he global economy is performing very well, and more and more businesses are expanding into new markets. To be effective in this process, communication is essential.

Something that Mohamed Danish, Director of Human Resources for American Express (AMEX) Middle East and North Africa, fully understands.

In today’s competitive market, Mr. Danish notes that there are certain skill sets that are critical for an organisation’s continued success. As a result, when there is a vacancy in one of these key roles, filling it may not be easy.

“It is not only the selection but the retention that is difficult because there is a very big demand for these executives in this market,” states Mr. Danish.

In fact, “selecting, retaining and motivating high calibre executives” are probably the most challenging tasks he has to undertake on a daily basis.

As HR Director of a multinational company that generates a considerable profit, it is vital that he be able to attract the right talent and then regularly review their remuneration packages, making sure his company ’s offers remain extremely competitive. Moreover, he must regularly assess the motivational factors that may persuade these individuals to stay put or, if not motivated properly may be encouraged to look elsewhere.

These challenges are exacerbated when you take into account that there is a labour shortage in some disciplines,

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specifically in IT, Financial services and Risk Management.

According to Mr. Danish, the shortage is due to a scarcity in quality candidates.

“It is extremely difficult to find a person that has the right set of qualifications, experience and the softer skills all in one.”

Mohamed Danish

Although it is crucial to assess who can do the job from a technical point of view, other non-technical components such as who can best adapt to the company’s culture as well as the cultures of the 18 offices where AMEX Middle East and North Africa operate - should also be considered.

Obviously, it depends on the position being filled, but often Mr. Danish will

By Pilar Gumucio insist that a detailed assessment be carried out. These will include many components such as a detailed psychometric test, a presentation, group role-play as well as a technical and nontechnical interview by a panel of members from senior management.

GETTING IT RIGHT Attracting and selecting the right candidate is fundamental as a wrong hire or a vacant key position can be detrimental to an organisation. Within this context, Mr. Danish explains that the selection process must be performed meticulously the first time, and thus, avoid mistakes or mismatches from occurring.

He provides a list of tips that he performs to make sure the process runs as smoothly as possible.

His first tip was to make sure a company carefully selects a search firm that will suit the client.

Depending on the position required, Mr. Danish will select from a long list of reputable boutiques as well as large international search firms. He does not believe in a preferred provider list per se, insisting that for each assignment he must review the list of possible suppliers.

“However, there are a few positions that whenever they are vacant, I know exactly where to go because of the speciality of these firms. For example, if we need someone in IT, I would definitely look at a top notch IT search firm. If I need someone in marketing, I would go to an organisation that I know has the

ISSUE 24 2005 search-consult

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reputation and the industry knowledge to be able to get this assignment completed ver y professionally.”

Moreover, after having worked 22 years in virtually all the areas of human resources, he has gained invaluable experience in being able to clearly identify a firm’s strengths and weaknesses, helping him enormously in being able to select the right firm for the job.

Within this context, Mr. Danish explains that there are standard questions each and every organisation should look at when selecting a search provider.

These should include the price, the completion date, the success rate of the consultant executing the search as well as the history of the search firm.

Companies should also take into consideration how search firms are permanently bettering their service and regularly updating their selection and interviewing techniques.

GUARANTEES However, in addition to all of these issues, “I insist on a solid guarantee period. For example, if within the first six months the candidate, for whatever reason, does not perform appropriately, the search firm must have the confidence in itself to give me a replacement free of charge.”

Once the search firm has been selected, Mr. Danish insists “you open an honest dialogue with your search provider, discussing everything from the price, the skills required, to the consultant selected to carry out the search.” This is fundamental so that a client can clearly communicate what they expect from the search firm so that the right candidate can be effectively selected.

It is also imperative that the client knows exactly what the search provider is doing, and planning on doing. Both must be in perfect agreement. ”I work very close with the consultants conducting the searches, we have weekly conference calls and we make sure they interview me first to explain the vacant position. From there, they work out the job profile. I then send them the

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organisational structure and the job description,” explains the Director of Human Resources of American Express Middle East and North Africa.

He would also request that one of his senior directors accompany him to the interview with the headhunters to explain to them the technical requirements since “they know more about the technical part of the job and we complement each other in putting the specifications clear to the search firm.”

The search firm can’t go wrong on this basis because they got the job specifications right from the very beginning. “Then we add the other dimensions such as the culture and the soft skills that I am an expert on.” After all of these, the firm can start the search.

After having done this effectively, continues Mr. Danish, a client must be able to regularly check the progress of the assignment by insisting there be regular feedback so that at the end of the assignment, there are no surprises.

LISTEN TO THE SEARCH FIRM The HR Director of AMEX Middle East and North Africa notes that throughout this process, it is important that the client takes an avid interest in the search firm’s recommendations and advice.

“I read the reports with a very detailed interest as the profiles and recommendations will receive serious consideration, complementing my work of making sure AMEX attracts, selects and retains high calibre executives,” he says.

But sometimes, choosing the ideal candidate requires HR executives to take some additional steps.

“For some positions – mostly the critical ones – I have a telephone conversation with the short list of candidates before I finally interview them with my senior management team. I add another dimension to this whole process.

I talk to them myself. Although I have strong confidence in my providers, I would sometimes insist to interview the candidates myself. This is just one additional checks and balances I do,” explains Mr. Danish.

He also advised companies to “make sure issues are discussed upfront with the candidate you select so that they really know what is expected of them, and you know what they expect from the organisation.”

Mr. Danish says that until now he is very happy with the results he has obtained. But he makes clear that this has to be a very professional relationship.

He states: “I may have used consultants in the past with which I have developed a very good professional business relationship but nowadays the level of their services does not fit my business needs. Therefore, it is important that from a business prospective, I look for other firms and consultants who would fit the bill and are much more competitive.”

“We are in a very dynamic world. I rather go for people that are very competitive, doing well and who are regularly updating themselves. The beauty of this approach is when you select the right firm from the beginning, you select a firm based on value for money, providing you with a very professional service, “ comments Mr. Danish.

For the HR Director of AMEX Middle East and North Africa, this whole process implies constant communication, an essential tool to obtain and retain high quality executives.

An accomplished human resource executive for over 22 years, Mr. Mohamed Danish is Director of Human Resources for AMEX Middle East and North Africa. He joined the corporation in May 2002 and is in charge of designing and implementing the company’s HR strategy in this region.

Mr. Danish is currently a member of various professional associations worldwide, such as Personnel & Development (IPD) in the UK, Training and Development (ASTD) in the US and the Bahrain Management Society (BMS).

Mr. Danish holds a MSC in Training & HRM from the UK, a BA in Economics from India, a Diploma in Personal Management from the UK, a Diploma in Work Study from the UK as well as a Certificate in Occupational Testing from the UK. His expertise is highly valued, speaking at various conferences, seminars, and educational establishments in Bahrain as well as oversees.

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

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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!

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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 - SOLD OUT & 5 October 2005, Brussels, Belgium

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, UK – SOLD OUT & 6 October 2005, Brussels, Belgium

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, UK – 10 PLACES LEFT ONLY!

This 1-day workshop covers an introduction to compentency-based interviewing and an exercise in critical-incident based interviewing. The benefits of the day include the opportunity to improve your skills in candidate evaluation; practice different questioning techniques in role plays and learn about different approaches to interviewing.

You will learn: How to match candidates to clients' requirements • Five techniques to improve your interview skills • How better to get the detail behind the CV • The secrets of presenting the right candidates

The workshops 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 (London) or 19 September 2005 (Brussels) 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

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Building Leadership teams across the world

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