search-consult Issue 6

/ ISSUE 6 2001

The International Magazine for Search Professionals

Heidrick & Struggles Acquisitions, layoffs and restructuring An exclusive interview with Pat Pittard

Germany's Top 25 Search Firms Going Global Options for Expansion Executive Search Management Consultancy ?

www.search-consult.com

The executive-search

bookshop The Board Book : Making Your Corporate Board a Strategic Force in Your Company's Success

by Susan F. Shultz.

Susan Shultz is principal of SSA Executive Search and a recognized speaker on corporate governance.The Board Book is designed as a practical guide to recruiting and managing corporate boards. It certainly achieves its objective; packed with case studies Motorola, Pepsi Bottling, Pinnacle West, Compaq and many other major US businesses are quoted and the author also makes good use of wisdom imparted by other Search Firms - research from firms such as Korn/Ferry and Spencer Stuart are quoted at appropriate moments.

Secrets of the Executive Search Experts

by Christian Schoyen and Nils Rasmussen

Billing Power! The Recruiter's Guide to Peak Performance

by Bill Radin, Betsy Smith

Headhunters have a knack for making "miracles." Out of seemingly thin air they locate star job candidates, folks who rarely materialize using the usual recruitment sources. How do they do it? This compelling book reveals the strategies used by top-ranking executive search professionals. It focuses on the crucially important research process, explaining how to maximize the power of both traditional and online resources.

Plus, readers get tips on working with outside Search Firms, steps for locating candidates abroad, and explanations of industry terms: a full arsenal of valuable information.

The classic best-seller just got better! Newly revised and expanded, Billing Power is a comprehensive, easy-to-read guide packed with innovative, money-making techniques, timesaving tips and proven methods for increasing your billings.

The industry standard!

Softcover, 224 pages, illustrated.

Bill Radin is a top-producing recruiter, manager and trainer whose innovative techniques have helped thousands of recruiting professionals achieve peak performance and career satisfaction.

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search-consult MANAGING DIRECTOR Jason Starr jason@search-consult.com EDITORIAL Barbara Kwateng Editor barbara@search-consult.com

ADVERTISING/ SUBSCRIPTIONS/REPRINTS UK and Europe North and South America South East Asia and Australia Carol Crawford Business Development Executive carol@search-consult.com

Headhunters Revealed!

Career Secrets for Choosing and Using Professional Recruiters

by Darrell W. Gurney Friendly and concise...a welcome resource. Gurney explains in upbeat, chummy prose all there is to know about the recruitment process."

Publishers Weekly, May 29, 2000 "Gurney offers Web-savvy tips throughout."

American Library Association's Booklist,April 15, 2000

The Global 200 Executive Recruiters :An Essential Guide to the Best Recruiters in the United States, Europe,Asia, and Latin America (Jossey Bass)

by Nancy Garrison Jenn "The Global 200 Executive Recruiters is another proof of Nancy Garrison Jenn's in-depth knowledge of the world's executive recruitment market.

Though interesting for recruiting companies to learn about their sector and their competitive position, the book is particularly of help to their clients and potential clients in assessing executive Search Firms and the recruiters with those firms.

Recruit & Retain The Best

by Ray Schreyer, John Lewis, Jr. McCarter

Winning the Talent Wars

by Bruce Tulgan "Every page will grab you and change your thinking....great solutions to the greatest business challenge in the new economy."

Douglas McCracken, Chief Executive Officer, Deloitte Consulting

The signs on the road to the new economy point to an allout war for talent.

Organizations increasingly encounter difficulties in recruiting and retaining top talent because they have yet to deal with today's most critical human resource issues.To remain competitive, you must create a talent powered company consisting of highly motivated, skilled, and loyal employees.That's the central message in Recruit and Retain the Best.

Tulgan artfully blends timely insights with innovative solutions from the world's best companies... a whole new perspective.

Terrence R. Ozan, Group Managing Director, Cap Gemini Ernst & Young

Executive Recruiters :A 5 Step Power Strategy for Using America's Top Headhunters to Advance Your Career

by Scott W.Walmsley Executive recruiters can be the key to your career advancement. Professional recruiting firms are hired by many of the world's top, most desirable companies to find professionals for what are often the highest compensated and most prestigious positions in business.

The search-consult.com bookshop, in association with Amazon.com, brings you a range of books about executive recruitment most below list price.

In addition to the titles listed here, a number of additional publications are available from the site.

Point your browser at: www.search-consult.com and click on search-bookshop to browse!

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

Front Cover: Pat Pittard, Chairman of Heidrick & Struggles

Š Copyright 2001 Dillistone Systems Ltd

Purchase online at www.search-consult.com

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>>> STOP PRESS <<<

Korn/Ferry International layoff 500 www.search-consult.com

NEWS

KORN/FERRY INTERNATIONAL have announced a series of business restructuring initiatives designed to reduce expenses in response to the current economic environment and to reposition the company to take advantage of the increase in executive demand when the economy improves.

In response to these initiatives, Korn/Ferry International will take a total charge against earnings of approximately $86 million, or $1.74 per share, which may impact earnings in both Q1 and Q2 of fiscal 2002. The charge reflects costs associated with a decision to reduce the workforce by 20 percent, or nearly 500 employees; consolidate all back-office functions for JobDirect, Futurestep and Korn/Ferry; and write down other related assets and goodwill.

Additionally, the company announced that executive salaries have been cut by 10 percent. As a result of these initiatives, the company expects to save approximately $38 million of annualized costs.

Due to the weak international economy and a general slowdown in recruiting, revenue for the first fiscal quarter of 2002 is expected to be approximately $114 million. Revenues for the prior year first

fiscal quarter were $173.6 million.

As a result of this drop in revenues, the company expects to post a net loss, before the charge discussed above, in the range of $0.05 to $0.08 per share, compared with record quarterly reported earnings of $0.26 per share in the prior year first quarter. The expected first quarter results include an approximate $0.08 per share benefit attributable to the adoption of SFAS No. 142 relating to the treatment of goodwill.

"The economy is having a profound effect on corporate hiring and, therefore, we are taking these necessary and prudent steps to rightsize our business for the prospective economic recovery. We believe these measures will enable us to adapt to the temporary slowdown in the marketplace and be competitively strong and well positioned for the upturn in the market," said Paul C. Reilly, Chairman and Chief Executive Officer of Korn/Ferry, who joined the company on June 30, 2001. "We deeply regret the impact of these actions on our broad employee base, but our focus is on retaining our top fee earners and maintaining our high standard of client service. Even though these actions have been difficult, I remain excited about business prospects of Korn/Ferry and the long term outlook of the human capital market and am committed to driving shareholder value."

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Heidrick & Struggles announces Q2 figures www.search-consult.com

NEWS

THE IMPACT OF THE SLOWDOWN ON Heidrick & Struggles (see feature, Page 13) was made very clear at the announcement of the firms Q2 results.

"Demand for CEOs and other critical leadership positions remains solid among our client organizations around the world. Below the most senior level positions, however, business in the U.S. continues to be difficult and now is being compounded further by a softening of business in other regions of the world. In Europe, we're being affected both by an economic slowdown as well as unfavorable valuations of European currencies against the U.S. dollar," said Patrick S. Pittard, Chairman of Heidrick & Struggles International (HSI Group). "It's also worth mentioning that we're faced with difficult comparisons against the 2000 second quarter, which was extraordinarily robust in the dot-com sector. This year, business in that sector is practically absent."

EXECUTIVE SEARCH RESULTS (ALL FIGURES IN US$) Revenue for Executive Search was $117.3 million in the 2001 second quarter, down 27 percent from $160.3 million in the 2000 second quarter. Operating income was $8.9 million in the 2001 second quarter, down 64 percent from a year ago. Although fewer searches were conducted overall, CEO searches represented a greater than typical proportion of the total. While confirmed searches decreased 40 percent from the 2000 second quarter, fees per search rose 21 percent because of this change in the mix. At June 30, 2001, the company employed 492 executive search consultants, representing an increase of 15 percent over 427 consultants as of June 30, 2000, and a 10 percent decrease from 546 consultants as of March 31, 2001.

Revenue in North America was $66.8 million, a decrease of 32 percent from $98.8 million in the 2000 second quarter. Strength in the Health Care practice group was offset by declines in most of the other practices.

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The operating margin declined to 10.6 percent from 18.0 percent in the 2000 second quarter, due in part to a decrease in revenue coupled with increased fixed costs related to a higher headcount for consultants and their search teams compared to the 2000 second quarter.

In Latin America, revenue was $3.5 million, a decrease of 35 percent from $5.4 million in the 2000 second quarter, as the region felt the effects of a weakening U.S. economy. Excluding the impact of foreign currency translation into the U.S. dollar, revenue decreased 25 percent on a local currency basis from the comparable quarter in 2000. There was an operating loss of $378,000 in the 2001 second quarter, compared to operating income of $825,000 in the Comparable quarter last year.

Revenue in Europe was $39.5 million, a decrease of 15 percent from $46.6 million in the 2000 second quarter. Excluding the impact of foreign currency translation into the U.S. dollar, revenue decreased 9 percent on a local currency basis from the comparable quarter in 2000. Gains posted by the Professional Services practice group were offset by declines reported by most of the other practices. Lower revenue significantly affected the operating margin, which decreased to 3.3 percent from 10.2 percent.

In Asia Pacific, revenue was $7.4 million, a decrease of 22 percent from $9.5 million in the 2000 second quarter. Excluding the impact of foreign currency translation into the U.S. dollar, revenue decreased 13 percent on a local currency basis from the comparable quarter in 2000. The operating margin declined to 12.2 percent from 16.2 percent.

LEADERSONLINE RESULTS Revenue for LeadersOnline was $5.8 million in the 2001 second quarter, a decrease of 4 percent from $6.1 million in the 2000 second quarter. LeadersOnline reported an operating loss of $135,000 versus an operating loss of $4.3 million in the 2000 second quarter.

"In July, revenue was slightly below June and there is little reason to believe that August will be significant to the quarter. In

Europe, much business is placed on hold due to structured vacations, and business activity typically returns in late August and September," said Pittard. "It's difficult to discern any patterns from our revenue on a week-to-week basis since some weeks are strong while others are not. Therefore, we remain conservative in our outlook."

Heidrick & Struggles acquire SHP Associates, London www.search-consult.com

NEWS

HEIDRICK & STRUGGLES International, Inc. has announced the acquisition of SHP Associates, a U.K.-based search firm specializing in work at the middle and senior management level.

"We intend to continue to make the necessary investments to expand our management search business for emerging leadership talent in Europe," said Piers Marmion, "Our expansion plans through organic growth as well as acquisitions of profitable businesses like SHP Associates -- are an important step forward in becoming even more competitive and distinctive in this region. They provide an excellent complement to our core executive search business, and allow us to get to know talent earlier in its career and support clients effectively, with our guarantee of quality, at critical levels where we have not operated before."

James R. Quandt, President and Chief Executive Officer of LeadersOnline commented "I am impressed with the reputation and professionalism of the talented individuals who will join our Heidrick & Struggles team. Their skills in the media-driven search business, coupled with our proven web-enhanced methodologies, greatly enhance the speed and scope of candidate acquisition services we deliver to our clients."

SHP Associates have 15 consultants and 32 employees and achieved revenue last year of approximately US$7,000,000.

Exclusive Interview with Pat Pittard, Chairman of Heidrick & Struggles See Page 13

Poor verification taints industry

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NEWS

STORIES IN THE NEWS AND business press about Albert J Dunlap and his incomplete resume have been called "a public relations disaster for the executive search industry" Mr. Dunlap was chairman of Sunbeam corp and was fired in 1998 amid allegations of fraud.

Sunbeam had retained Korn/Ferry to run the search which brought Dunlap to the business and it is alleged that the World's largest search firm failed to notice that he had been fired twice earlier in his career - by Max Phillips and Son and by Nitec Paper Corp. At Nitec, Mr. Dunlap achieved spectaclar

Cornerstone in Peru www.search-consult.com

NEWS

C O R N E R S T O N E International Group have have named BDO Consulting S.A.C. of Lima, Peru as its latest member firm. BDO, with seven local partners, offers both retained search and generalist management consulting service.

Corrections: www.search-consult.com

NEWS

IT HAS BEEN POINTED OUT TO US THAT Daniel Carney of Boyden International was named as David Carney in Issue 4. We apologize for this mistake and are happy to correct it. Gremlins also attacked our article on German Executive Search. The company name of Bechtle was misspelled in the article.

profits - for which he received huge payouts - only for auditors later to conclude that the profits were fictitious.

Mr. Dunlap made no reference to working at either firm, skipping from a role at Sterling Pulp and Paper (ending in 1973) to American Can which he joined in 1977.

Korn/Ferry point out that Mr Dunlap was recruited to Sunbeam primarily on the basis of his undisputed accomplishments at Scott Paper - a position for which he was recruited into by Spencer Stuart.

Spencer Stuart argue that whilst Mr. Dunlap did not reveal his time with the two firms to them, they had validated his record over the a period of 20 years (up to and including his time at American Can).

TRANSEARCH International opens office in Greece www.search-consult.com

NEWS

T R A N S E A R C H International have opened an office in Greece - the firm's 4th new European office this year.

The office is located in Athens and is managed by Spiros Kapnias and Spiros Trivolis. Spiros Trivolis has not only years of experience in Human Resources but also in Management Consulting. Spiros Kapnias boasts a background in the Human Resources functions in various Industries such as Consumer and Retail as well as Industry and Resources.

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German legal battle develops swings towards search www.search-consult.com

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NEWS

THE ONGOING BATTLE IN GERMANY about the right for Search Firms to contact candidates at work has seen another development - this time in favor of the search industry. At the end of July, a new ruling was made on contacting candidates on their work telephone number (see search-consult issue 5). A high court in Stuttgart ruled in favour of executive search consultant Michael Dobler who had been taken to court by Bechtle AG, a German software house. This is the same firm who was embroiled in a court battle by another search firm in a case which ran from 1999 until last year. On that occasion, Bechtle was successful in obtaining a decision in their favour against the search firm calling its employees. In 1999, the high court in Stuttgart ruled that "any attempt to source candidates on their work telephone number is inadmissible" (record number U 133/99).

In the past, the pattern has been that courts have made decisions on the basis of previous cases. In a therefore unusual step, the high court in Karlsruhe declared that sourcing candidates from another company is part of competition in a market economy and is therefore allowed. Dobler's behaviour, as an executive search consultant, was therefore permissible. The judge ruled that short telephone calls to make initial contact scarcely interfere with work. The threat that Dobler would have to pay 500,000 DM (US$ 240,000) in fines or Bechtle's aim to be granted compensation disappeared.

This means that two high court decisions are in direct conflict with one another. If either party makes an appeal, then it will be up to the Bundesgerichtshof (Supreme Court) to settle the matter.

Related Story: The Top Search Firms in Germany - See Page 9

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Renoir Partners acquires CorpExec www.search-consult.com

NEWS

LONDON BASED SEARCH firm Renoir Partners have announced the acquisition of CorpExec - the search firm formally known as Corporate Executive Search Renoir Partners was established in Spring 2001 by recruitment industry veterans Andrew Goodman and Ben Anderson with backing of US$2million equity investment from individuals linked with leading venture capital firms, including Quester, Broadview, Amadeus and iGabriel. The company has offices in London and San Francisco and has already gained a strong foothold in the emerging and pre-IPO technology sectors where it works with leading venture capital firms and

entrepreneurs to build senior management teams on both sides of the Atlantic.

CorpExec, formerly part of payment system specialist Auxinet plc, is a strong fit for Renoir Partners, offering both strategic opportunities and operational synergies. Founded over a decade ago, CorpExec has complementary expertise in the emerging technology and e-commerce sectors. In addition it brings strong experience in the corporate technology marketplace, endorsed by a blue-chip client base of software, services and telecommunications companies. The company's entire team of highly experienced research and delivery professionals have been integrated within Renoir Partners' UK operations. The

combined group boasts 25 partners.

Said Ben Anderson, CEO of Renoir Partners: "CorpExec has a wealth of experience and an excellent reputation for delivering senior search assignments to a diverse range of technology companies across Europe and Asia Pacific.

This acquisition bolsters our position in the market and broadens our geographical reach."

Said Howard Bird, former Managing Director of CorpExec: "This is a tremendous opportunity to be part of progressive business with a clear Strategy and strong foundations to accelerate growth and leadership in the technology industry. Renoir Partners and CorpExec share the same proposition to work in

long-term partnership with clients through the delivery of strategic human capital solutions."

Both Ben Anderson and Andrew Goodman are well known names in the UK search industry.

Mr. Goodman founded Goodman Graham which he sold to BNB Resources in 1995, and was Chairman of Techpartners International for an 18 month period culminating in a sale to Harvey Nash plc in April 2000.

Anderson's career includes a successful 10-year spell at recruitment services group Robert Walters where he led corporate development as Executive Director, took the business global and led the company through an IPO in 1996.

A.T. Kearney Search names Gene Shen President www.search-consult.com

NEWS

GENE SHEN HAS BEEN named as president of A.T. Kearney Executive Search effective immediately. Shen will report to Dietmar Ostermann, chief executive officer of A.T. Kearney.

Shen previously was head of the A.T. Kearney Executive Search global financial services group in New York. He will continue in that role while also assuming global leadership responsibility for A.T. Kearney Executive Search, one of the world's largest retained executive Search Firms. Shen

replaces Brian Harrison.

"Gene has developed our financial services practice into a significant player in the global search arena," Ostermann said.

"In his new role, he will drive further growth for the practice and chart a new course for A.T. Kearney Executive Search as a collaborative partner with the global management consulting capabilities of A.T. Kearney and the implementation infrastructure of EDS. This unique combination will provide a service offering unequaled in the executive search marketplace."

Prior to joining A.T. Kearney, Shen was a co-founder and

managing partner for the Whitney Group, an executive search firm specializing in the financial sector, where he established the Tokyo office.

Shen also served with Citicorp for six years, directing global recruitment for investment banking and specializing in global finance from 1978 to 1982. In addition to establishing executive search offices worldwide, he has worked on behalf of global clients in Asia, Europe and the U.S. "We will be globally- and industry-focused with a particular emphasis on financial services and technology," Shen

said. "In addition, as part of our global expansion, we will have the unique ability to crossfertilize talent between management consulting and executive search."

Shen attended the Cesare Barbieri Center for Italian Studies in Rome and earned a B.A. in political science and modern languages from Trinity College and a JD-MBA in international business and finance from Harvard. Shen also holds the distinction of being one of the youngest trustees of Phillips Exeter Academy, a leading preparatory school in New England.

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Key moves in Executive Search this month A.T. Kearney & Heidrick & Struggles name new leaders - see News Pages TRANSEARCH International have announced a series of new recruits to offices around the World. Jörg Müller has joined the Stuttgart office. Mr Müller is the former Vice President Human Resources Hirschmann Electronis GmbH, Neckartenzlingen and he joined with 10 years experience in HR management, specialised in automotive supplier industries and communication.

Michel Groulus joins the firm's Brussels office as a Partner. Mr. Groulus has 22 years experience in various National and International Management positions. As an entrepreneurial Business Developer, he worked for Companies like Hardware Providers (Digital, Data Terminal Systems, Correlative Systems), Software Editors (AES, SAP), System Integrators (Corsys, Logica), Consulting Companies (DMR) and more recently Start Ups into the e-Business (Sap Markets, Rightworks).

In Sao Paulo, Grace Pedreira and Nahid Chicani have joined the company. Ms Grace is previously from A.T. Kearney where she was Vice President in Executive Search.

Grace is a generalist and has been in executive search for 9 years.

Mr Chicani specialises in Consumer and Retail and held a Vice President position at a global consumer goods company for a number of years. Mr Chicani has been active in Executive Search for 3 years.

Finally, Stefan Michaelis joins the firm in Frankfurt. Mr Michaelis studied Economics and Political Sciences at the University

Frankfurt. Prior to joining TRANSEARCH he was the co-founder and co-owner, responsible for marketing & sales of a company in the service industry. He also has long-term experience in advertised recruitment.

Shelly Jones, Managing Director of the Seattle office of Korn/Ferry International is to head the firm's global aerospace practice.

Firth & Associates, the London member of the Cornerstone International Group, have announced the addition of Mr. Barry Laine to their London-based professional team as their IT Practice Leader.

Mr. Laine has worked in the Technology industry for more than 30 years including experience in the full arena of telecommunications and the internet.

Norman Broadbent has hired Greg Patel as direct of capital markets in the financial services practice. Mr. Patel will take responsibility for developing the capital markets team and is expected to hire additional recruits in the near future. Mr. Patel joins the firm from Reech Capital.

Garner International has recruited Hugo Yadi and Bertrand de Muizon to jointly head up its new Banking practice.

Ray & Berndtson have announced the arrival of Walter L. Ames as Partner in the Healthcare and Life Sciences Practice. Mr Ames brings an executive search background from Russell Reynolds Associates where he was a managing

director. He worked for several years in their Tokyo office before moving to Los Angeles in 1999. Mr. Ames will work out of the Los Angeles office. The firm has also announced the promotion of Deborah Seltzer to Partner.

Ms Seltzer also works in the Healthcare and Life Services Practice, and is based in Atlanta.

Ray & Berndtson announces the promotion of Michael Otte to principal in the Business and Professional Services Practice in Los Angeles. Mr. Otte was formerly with Ray & Berndtson in Frankfurt, Germany.

Simon Stephens joins Odgers, Ray & Berndtson in Leeds. Mr. Stephens was previously with Michael Page.

Christian & Timbers have recruited Shane Burgess as a vice president in the London office. Burgess works with global blue chip companies and early stage ventures and has led and executed assignments across all functions within the information technology, telecommunications and new media markets.

Formerly at Korn/Ferry International, Mr. Burgess was the youngest principal in the firm’s advanced technology practice in Europe as well as the UK representative for e-business within the technology group. His recent client work has included building management teams and placing executives at U.S. and European companies like marchFIRST, Hyperion Solutions, Colt Telecom and GTS Telecommunications. Additionally, he has worked with a number of prominent venture-backed companies at board level.

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

To receive search-consult on a regular basis subscribe at www.search-consult.com

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A Human Business Dale Winston of Battalia Winston talks to Jason Starr any consider Executive Search to be an increasingly scientific process. Some firms are using psychometric testing techniques; the use of technologies such as video conferencing and the Internet is widespread.

In the eyes of Dale Winston, the high profile head of Battalia Winston, however, fundamental to a good executive search is the skill of intuit.

"Executive Search requires certain fundamentals - technology, for example, and you need these to be competitive.

Beyond this, however, to be good at search requires an intuitive ability. A consultant needs this to understand the client's culture and what the success factors will be. Every business has different needs and people who may be very successful in one environment may not be in another. Intuit is the skill of knowing which people will fit in which environments."

Some consultants believe that psychometric tests are the most accurate way of assessing cultural fit. Ms Winston does not accept this view.

"There are some profiles which are just not accurate; the intuit is not always accurate either, but having a sense of people is vital. I used to have a very dear client who insisted on having every candidate assessed. I used to predict within 5 points up or down the persons’ IQ and I was always right. It was a running joke."

An additional 'human skill' which she believes is fundamental to the success of the search is the art of working with the client to agree a realistic specification.

"Another part of the art is trying to get the client to really focus in on what their needs are and to define deliverables for

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Dale Winston the candidate. Many clients come to an opening search meeting with a stack of generic requirements which I describe as "Motherhood and Apple Pie". Our job and this is part of the art - is to push them beyond this generic specification.

Sometimes this is collective and requires a group facilitation process. What are the real objectives for candidates?"

Ms. Winston believes that cultural fit is key to the success of her business. When hiring for Battalia Winston, Ms Winston and her partner, Terry Gallagher, claim that they prefer people who will fit the firm's own culture rather than those who, potentially, will bill more..

"There are many 'lone rangers' who are very significant producers and who we have had the opportunity of hiring in the past. We feel that these people would be counter to our culture. We have some unique things about our culture. We are very collaborative. We are team oriented in what is basically a business driven by individual production. This comes down to who you hire. Some time ago a colleague of mine asked me 'How do you compensate people to team?' I answered 'You have got the tail wagging the dog.

You have to hire people who already have that mindset.'"

Despite the care with which Battalia Winston aims to recruit, it has grown into a top-twenty American search business, with six offices across the US and links to the Accord group beyond outside the States. Unlike a number of the larger US businesses, Battalia Winston has chosen to focus purely on its core business of Search. Ms Winston draws an analogy to the retail sector where she likens many of the larger firms to Bloomingdales. Battalia Winston is more akin to a GAP or a Limited.

"We have a different model. The large firms are department stores, whereas we are a specialist store for search services.

Our average compensation is around US$230,000 - US$240,000. We do not provide internet based recruiting services and we do not offer management appraisal services."

Ms Winston does not believe that the Internet is competitive at the level at which she recruits and believes that firms who aim to develop a business around the web are following a flawed Strategy at this level.

"The internet is essentially an advertising tool. I see the Internet as being a very powerful tool for mid-level recruitment and so it will have an impact on the contingent firms who work at the US$70,000 - US$150,000 level. I see our business moving upward and away from that. At the risk of being controversial, I don't believe that TMP will stay in the search business. I think that they believe that everything, cradle to grave, will go through the Internet.

I don't believe that." www.search-consult.com

For more information, visit: Web:

www.battaliawinston.com

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German Search industry worth US$1 Billion

By Barbara Kwateng in Frankfurt he German executive search and lection market grew in size by over 20% last year. The Bundesverband Deutscher Unternehmensberater (or BDU, the Association of German Management Consultants) announced that the sector's turnover had jumped to 2.5 billion DM (US$ 1.12 billion) last year, an increase of 0.49billion DM from 1999's figures. The top 25 firms accounted for 43% of the market (see table). The average growth experienced by German executive search and selection consultants for the year 2000 was 15.5%, lower than the average growth in 1999 at 16.4%.

The BDU research also reveals a sharp rise in the number of assignments carried out in the year 2000. In total, 89,000 searches were carried out in 2000, compared to 75,500 in 1999. This could be the reason for the boom in the number of consultants. From 1999's figure of 6,350, there was a steep increase in the number of consultants at German executive recruitment firms in 2000 to 7,400. The number of executive recruitment firms rose steadily to approximately 2000 companies. In 1999, this figure was 1950.

Dr. Joachim Staude, Vice President of the BDU remarks "The driving forces behind the growth which we have witnessed in the last few years include good economic data, the boom on the stock market and dot.coms needing to fill many management positions. To a degree, the high demand for talent could scarcely be met".

Dr. Staude notes a slowdown "...in the growth figures for the first 6 months of 2001. The current market situation means

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that many companies are taking much more care before making any decisions on hiring. Some firms are even putting their hiring strategies on hold". However he predicts that "...bar any surprises, client firms are likely to give up their restraint in recruiting".

This month has also seen a

development in the ongoing legal wrangle over the practice of executive Search Firms contacting prospective candidates at work. A Stuttgart court ruled in favour of search consultant Michael Dobler - ruling that sourcing candidates at work was allowed. Our News pages carry the full story.

“In total 89,000 searches were carried out in 2000,

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compared to 75,500 in 1999...”

Web:

For more information, visit: www.bdu.de

Top 25 German Executive Recruitment firms by revenue (in millions): Firm 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Kienbaum Executive Consultants GmbH Heidrick & Struggles Ray & Berndtson TMP Worldwide Search Baumann Unternehmensberatung AG Korn/Ferry Hofmann Herbold International GmbH Egon Zehnder International GmbH Spencer Stuart & Associates GmbH DELTA Management Consultants GmbH Steinbach & Partner GmbH: DM Deininger Unternehmensberatung GmbH Russell Reynolds Associates, Inc. Mercuri Urval GmbH CIVITAS International Management Consultants GmbH Signium International - Ward Howell Pape Consulting Group ifp Institut für Personal- und Unternehmensberatung a_priori international AG Corporate Consult Dr. Heimeier & Partner GmbH Boyden Global Executive Search TRANSEARCH Cetra Consulting GmbH H. Neumann International GmbH IIC Partners Executive Search Worldwide SCS Personalberatung GmbH Interselect GmbH Human Resources Consulting

DM (Million) 12 7,0 11 3,5 87,0 83,5 82,4 80,0 72,5 39,0 38,0 34,9 32,6 30,4 28,0 26,7 26,0 25,5 23,0 22,5 20,0 18,7 17,2 16,6 11,9 10,9 10,0

US$ (Million) 56.8 50.74 38.9 37.33 36.84 35.77 32.41 17.44 16.99 15.6 14.57 13.59 12.52 11.94 11.62 11.4 10.28 10.06 8.94 8.36 7.69 7.42 5.32 4.87 4.47

(source: Data from Bundesverband Deutscher Unternehmensberater)

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Three months in the life of

Heidrick Struggles

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Layoffs, management restructuring and acquisitions

By Jason Starr, search-consult eidrick & Struggles International made headlines in both the Executive Search and the mainstream business press in June with the announcement of layoffs across the business.

On June 20th, Heidrick & Struggles International announced a 'realignment of its workforce'. Some 13% of the workforce - around 300 people - left the firm, with 65 search teams affected. In the days after the layoffs were announced, analysts at both Goldman Sachs and Merrill Lynch cut their outlook for the Chicago-based firm.

Meg Saegebarth of Goldman wrote ``While we had hoped that some of HSII's cost cutting moves last week would help offset the declining demand environment, we were overly optimistic given how much their business has deteriorated".

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Less than a month after this the firm announced the acquisition of mid to senior level UK search firm SHP Associates. Two weeks later, during the conference call announcing the second quarter results, CFO Don Kilinski acknowledged that more cut backs may be required "… nothing is off the table…we will have to revisit the issue over the next month or two if revenue continues on its current path."

Then, on August 9th, the firm announced that Piers Marmion would replace Patrick S. Pittard as Chief Executive Officer from October 1, 2001 and that David Anderson would take on the role of Chief Operating Officer. Mr Pittard would continue as Chairman of the Board.

In an article which features an exclusive

interview with Pat Pittard, search-consult looks at the decisions made by the firm, and its likely future path.

The June 20 2001 announcement revealed that around 300 people were being laid off by the firm. Layoffs covered every part of the business, with 2/3 of the people released based in North America, 20% in Europe with the remainder being in Latin America and Asia Pacific. 63 were Consultants and virtually all practice groups were affected. The reduction will also enable the firm to consolidate or close a number of offices in total, the cut backs should save US$30US$35 million annually.

Mr. Pittard accepts that reductions were the results of decisions made in the previous year. "The truth is that the year 2000 was incredibly robust. Optimism

surrounded the "New Economy." This optimism made us do things that in retrospect weren't the best decisions aggressive staffing particularly.

However, if we had not made the hires in latter 2000 and the economy continued to be robust through 2001, we would have lost significant market share. It is easy to be 'retrospectively brilliant,' but in today's business climate, be decisive and then adjust. We hired for a robust economy. That didn't happen - and now, we have to react to reality."

He acknowledges that the firm had assumed that the growth rates of 2000 would continue into 2001 and had hired on that basis (the firm recruited 119 Consultants - net - last year). He also believes that last year's huge volume of business meant that the firm had not put enough effort into business development.

"We were so overwhelmed with work that we didn't have time to give attention to business development. We were taking venture backed, early stage work that seemed to easily find funding. As the funding dried up this year, many of these firms folded. Partners who served this market lost their business flow, and they did not develop new relationships so there was nothing in the pipeline."

"We found ourselves in a market that had adjusted back to 1999 levels and yet we had 2001 level staff. For the first two quarters we worked very hard to see if we could make adjustments in our expense lines. If the downturn was short lived, like the fourth quarter in 1998, we would have been wise not to have gone through a headcount reduction.

However, the severity of the situation became evident at the end of the second quarter. As you book in the latter part of Q2 you have visibility into Q3… From this we could tell that the business recovery in the US was not going to be substantial at least for search, in Q3. We simply had no choice but to reduce the workforce."

Cut backs at the public firms have made the headlines this year - both Korn/Ferry and TMP Worldwide have made similar announcements - but Mr. Pittard does not

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accept that the layoffs are connected to the firm's public status.

"A slowing economy is not interested in your capital model. All Search Firms, public and private, are going through the same thing. We have had headcount reductions in the past, but as a private company, it is not in the public 'glare.' As a public company you must announce these actions."

Mr. Pittard argues strongly that neither last year's growth or this year's cutbacks are anything other than a reflection of market demand.

"Our analysts had much more modest growth predictions last year than we actually saw in the market. All our practices were being inundated by work at all levels, and particularly internet start-ups. We have always enjoyed a

Pat Pittard premier position in technology - and with early stage companies. For a number of reasons, we have always liked this business. We are an aggressive firm. It is higher risk - no question about it. So it came down to an issue of serving clients; they came to us for work and our Partners came to (the management) requesting capacity. Basically, our staff increases were the result of business demand; we would have had that demand whether we were public or private" At Heidrick & Struggles' Annual Stockholders' Meeting earlier in June, Mr.

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Pittard had revealed that the firm intended to use the slowdown "…to invest in people, in technology, and in our future". This plan is unchanged, but he is aware that acquiring firms such and recruiting consultants soon after announcing layoffs may send a mixed signal.

"It's hard on our people to have weathered a reduction and said goodbye to colleagues and later, the firm announces an acquisition and a new colleague shows up. The truth is that we may need to send this mixed signal. The colleague who left may not have reached a point of production whereas the colleague that we bring in could be a mature search consultant, and his/her level of production has stayed constant even in a tough economy. This elevates us all. The best search professionals know how to develop business even in tough economies. Those who have not seen a recession do not have the same experience to rely on. Not only can hiring senior staff bring us business, but they can also be mentors to our next generation of consultants. There is exceptional talent competing with us, and this is a good time to attract top performers."

Evidence of this was provided in the August Conference call. Lynn McHugh revealed that 40% of the firms' consultants "...are still underwater - that is, they are not producing enough revenue to earn their base salaries, and any minimum guarantees they may have".

Ms McHugh also revealed that many of the top consultants continue to perform well and are in line for bonuses, and Mr. Pittard is aware of the argument that the public structure of Heidrick & Struggles may make it harder to recruit and retain top billers. The reasoning goes that public firms have to divert a percentage of profits away from the earners and to the shareholders. While he has heard this argument, Mr. Pittard disputes the fact that his professionals earn less at H&S. "Our philosophy has been for years to

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pay our people at the top of the sector, and in dollars, not percentages. The way to accomplish that is to work at the top.

Senior-level engagements command higher fees. The partner can be paid a slightly smaller percentage but receive more take-home pay.

The average compensation of our consultants has been better every year for the last five years - including the two years that we have been public (1999/2000).

In addition, our people are building up equity. It is our intention with the Heidrick & Struggles brand, impact at the top, our global reach, diversified practice structure and compensation model, which rewards sharing - to accelerate our Partners significantly past any other firm.

Add to that equity in the firm - and you have solid potential for long-term wealth creation.

We often attract competitors to our firm.

Our compensation model is not dramatically unlike theirs with the exception that we drive bigger numbers through the model and we can add equity to the mix. With the sector’s stock price being down, equity is not playing a major role now - but it will."

"Our Partners do defer 10% to RSUs (stock) each year - but that amount is almost equal to what they were paying to capital as a private company partner.

And the RSUs are liquid in three years.

On the private model, we did not gain liquidity for our stock until retirement at very little appreciation."

The firm also continues to invest in technology. A search can take as long as six months to complete at the highest level and the firm is currently beta testing new technologies which reduce this period by a month. Mr. Pittard believes that long-term investment in technology can help reduce the cycle time of assignments by 25%. He believes that achieving this level will offer many benefits.

"It's not just time - everything is improved. You don't lose the candidate's interest, because you get to presentation faster. Consultants are more committed to searches that move along at a faster pace.

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They can book more assignments, i.e., greater capacity. Everything improves; speed, quality, compensation, everything."

Beyond the core executive search business, Heidrick & Struggles is following what Mr. Pittard refers to as a 'T' Strategy. This involves developing services to provide management recruitment (the vertical axis of the T) whilst identifying complementary services such as executive compensation and retention along the horizontal axis.

"We have extraordinary access to and influence with CEOs. We intend to leverage those relationships into complementary businesses."

Vertically, LeadersOnline was designed as a web enhanced business to serve the management recruitment needs of clients, typically operating at salary levels of up to US$180,000 and with an average fee of US$41,000 per placement. While marketing expenses have been cut back

Lynn McHugh revealed that 40% of the firms' consultants “...are still

underwater - that is, they are not producing enough revenue to earn their base salaries, and any minimum guarantees...” over the second quarter, the firm has announced a renegotiation of the strategic alliance between the business and Business Week magazine. As part of this, the Leader magazine, distributed via Business Week, will be redesigned and the print run increased to enable insertion into the full production run of the magazine - this will raise the reader audience from several hundred thousand to several million qualified individuals per issue.

The initial plan was to develop LeadersOnline as an independent

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business which would be taken public in its own right. The collapse of the capital markets last year meant that these plans were discontinued, but Mr. Pittard is extremely bullish about the future of LeadersOnline as an integrated tool.

"We now have critical mass for LeadersOnline in the US and parts of Europe and it should break even in the third quarter. LeadersOnline is going to be a very big part of our business."

The search for the services that make up the horizontal axis of the 'T' is the job of Heidrick & Struggles Ventures. This division considers building, buying or entering into strategic alliances with other firms.

"It is very hard to build every new business, brick by brick.

With LeadersOnline there was nothing to acquire - we had to build it - but with companies with an established client base, you are able to get a faster start. I think that you will see us do more acquisitions and alliances than start-ups in the future."

As for the future, Mr Pittard welcomes the appointment of Piers Marmion - "I am certain Piers will be an outstanding CEO" and is not entirely disappointed to be moving into a role which will enable him to spend more time on assignments.

Speaking prior to the announcement of the management change, he revealed "I have maintained my client relationships because, ultimately, I want to go back into Executive Search."

Piers Marmion now takes the reign of a firm which will have to operate in choppy waters for the foreseeable future. The firm continues to boast a brand name which is second to none and, as the SHP acquisition demonstrates, it continues to invest for the long term. How he is able to play his cards during the downturn will go a long way towards answering the question of whether a search firm should be public or private. www.search-consult.com

For more information, visit: Web:

www.heidrick.com

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Brussels

Boutique

Barbara Kwateng talks to Guy Stuckens and Alexander Paternotte of Stuckens, Paternotte / Eurosearch n the last few years, Belgium has seen its fair share of mergers and acquisitions, including very public ones such as the combination of Korn/Ferry and Carre/Orban, a firm which was set up by two ex Egon Zehnder consultants. This has led to, according to Robert Brodsky of the Belgian Executive Search Association (BEXSA), the large international firms increasingly "dominating Belgian Executive Search".

Smaller Belgian firms have also tried to grow in the pursuit of greater riches.

There are those, however, who wish and intend to remain small. Brusselsbased Stuckens, Paternotte/ Eurosearch is one of these firms. First founded as Delville, Stuckens & Partner in 1976, the firm became Stuckens, Paternotte/ Eurosearch in 1997.

We talk to the two managing partners, Guy Stuckens and Alexander Paternotte de la Vaillée, about Belgian executive search, their network and the challenges which they have faced. We also look at the problems faced in finding candidates

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amongst a population of only 10 million and the differences between operating a large global firm as opposed to a smaller Belgian firm.

The firm is part of the Eurosearch network which is represented by 6 members, down from its previous high of 22. Much of the drop is down to the departure of the 10 Eastern European members who decided to leave and pursue their own interests which they felt were not compatible with the rest of the group. These reasons include that the Eastern European firms were attracting a different type of candidate, the high potential middle manager in his late 20's, early 30's. The network, in its larger days, was more formal, with a board consisting of representatives from US, Asia, UK, rest of Europe and Germany.

Now its members include the German firm Deininger with 25 consultants; in the Italian branch of Eurosearch, the two founding partners still run the company.

France has, however, restructured itself and offers management audits alongside

executive search and Poland is Eurosearch's central European representative. Five years ago, they suddenly lost their British member Norman Broadbent when "[the firm] imploded in 3 markets, the UK, the US and also in Asia." tells Guy Stuckens.

Norman Broadbent was replaced a year later by Springman Tipper Campbell. The decision making body now consists of the major partners or country managers who meet twice a year to discuss common plans for the next two quarters. The firm has over 20 years with the network and Alexander Paternotte is very happy with the relationship. "The best acid test for any networked search firm is how easily assignments can be transferred. You're put all your credibility into the hands of your partner. In the year 2000, we transferred about 40 assignments between the network".

There is no global off-limits policy for the network "In this respect, we're not that integrated as yet" says Paternotte.

The absence of a global off-limits firm is

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vital for Search Firms in Belgium because "about 50% of our assignments are done on an international level. There are the traditionally international sectors such as healthcare but in Belgium we often need to look for candidates outside of our country. Recognising that Belgium is a small country, our clients don't demand a Belgian candidate, we need to look outside. We call our partners, who help us come up with candidates".

"People are harder to move now than ever. In international assignments we talk to both the candidate and persuade them about a position but we also talk to the partner of the potential candidate.

The unspoken contract has now been broken. It used to be that if you were a flexible employee working at IBM, they would take care of you until retirement.

Now the social safety net has been removed. People are much more careful about moving, something extra needs to be on offer, experience offered in a new sector, more responsibility. We're finding that financial rewards are proving less attractive than ever" says Paternotte.

Stuckens, Paternotte/ Eurosearch are committed to retaining clients. According to Guy Stuckens, their firm never works on a contingency basis "...repeat business is our survival. The longest client has been on our books for 25 years." This is how such a small boutique consisting of 2 consultants, 1 researcher and 1 secretary can compete against the international firms. Their clients know their history.

"Our clients also know that we will keep working on an assignment until we have found the right candidate. We don't have a big machine pressurizing us to complete x amount of assignments to inflate quarter figures and buoy the share price".

Both Stuckens and Paternotte acknowledge the quality of their competitors. Alexander Paternotte spent many years working the some of the biggest names in search, first with Egon Zehnder, then with Spencer Stuart. "I joined Egon Zehnder attracted by the possibility of having a real stake in a firm.

After 6 years at Egon Zehnder I became a partner but I still had little power because

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of the share structure. After 9 years with Egon Zehnder, I decided to join Spencer Stuart which was, at the time, a very small outfit in Belgium. The aim was to help direct and rebuild a reputable firm.

There were just two of us back then.

Within one and a half years, we acquired the Quadrus search firm and the company tripled in size. There were difficulties which has left Spencer Stuart in Belgium today with 2 consultants".

Having spent time at both firms, Paternotte is perfectly placed to see the differences between the two firms in Belgium. "Egon Zehnder is very personality driven. It is an excellent firm and brilliant for esprit. In contrast, Spencer Stuart is much more structured.

Processes are systemized, for example closing and following up assignments.

Visiting clients is never done alone, rather in pairs. New business is published on the firm's Intranet to source consultant's knowledge on a global level.

“...Whilst searching for a Head of Quality Assuarance Europe, I spoke to 235

candidates...”

They have an effective business development and quality assurance".

Guy Stuckens adds that the advantage of being a large firm is that "...the name opens doors. They have so many consultants that someone somewhere within the company has done an assignment in a similar field. Their practice groups are all encompassing.

However the greatest disadvantage for them is off- limits. The situation becomes horrendous". This is backed up by Alexander Paternotte "...within these big firms, you cannot talk to someone without having the green light from the research manager in that country". This is obviously disastrous for large Search Firms in Belgium if many of their candidates come from outside the country. "In contrast, we have lower overheads, are less constrained by off-

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limits and can work freely on an international level. If you do a good job, you can be small and have your name open doors. Every completed assignment brings us a lot of satisfaction".

"We have done many challenging searches" Paternotte continues. “I have placed a candidate, an excellent match in a very secret search and the client didn't even interview a second person. Whilst searching for a Head of Quality Assurance Europe, I spoke to 235 candidates in an attempt to find the perfect candidate! Guy has placed a whole management team for a Swedish/ Austrian paper mill company in Southern Africa and, earlier this year, he placed a production director for a large firm in the Congo. We never feel that we have to stop a search because of pressure to do more and more searches to inflate our results figures".

Stuckens, Paternotte / Eurosearch are proud of their status. They are one of Belgium's leading boutiques, a member of the Belgium Executive Search Association, in which Guy Stuckens is heavily involved. Despite enjoying a boom last year, they were exposed to the dot.com bubble bursting. Stuckens "It was a very interesting year. However by April/ May, many of our dot.com searches were looking wobbly," says Stuckens.

The firm was doing 6 dot.com searches for one European holding company, with the fee structure set so that research and search were paid in cash and the hiring fee made up of shares and capital. "Our client had seen the candidates and knew who they found interesting but their funding ran out by June. It's part of the game" tells Paternotte with no regrets.

"We can define searches as 'bottom line' or 'balance sheet'. Bottom line searches relate to a field in which we have already completed an assignment. We know who the movers and shakers are in this area and who would move to another company provided that the price was right. Bottom line searches have a quick completion time.

The dot.com assignments which we completed were balance sheet searches. We learnt something new; it provided us with a

knowledge asset. Our client wanted candidates in their late 20's/ early 30's with less experience but with an appetite for risk. Therefore we cannot regret that we were part of this exciting time" he says.

Like any search firm across the world, the economic situation is having an affect on business. Stuckens elaborates that "...business development is more difficult this year. It is not just clients who are being more cautious; it's candidates as well. Convincing a candidate to move in times of economic uncertainty is not easy".

In contrast, they describe setting up a search business in Belgium as "...not difficult. The start up costs are minimal, there is no entry barrier. The making of a successful search firm is much more difficult" tells Stuckens. Most Belgians speak 3 languages, French, Flemish and English. According to Robert Brodsky of BEXSA, it is possible to do search in Belgium as an English speaker. "There

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are a few successful search professionals in Belgium who do not speak both of the countries' official languages, for example Anders Borg of Hansar International (Penrhyn International)" he believes. “It does add value to speak to the candidate in his or her own language during an interview, discuss shortlists with clients in the preferred language, but this is not essential, says Brodsky.

"To come straight from industry and set up your own executive search firm is the difficulty here" Paternotte feels. "The first year might be easy as you have good contacts, in the second year, business slows down as your contact list dries up and the third year is difficult because noone knows you. I would advise learning your trade in a large search firm and then setting up your own practice".

And the future? "We want to attract a few professionals who are like- minded and take a similar approach to search as ours. At the same time, these professionals should be sufficiently well-

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known in the market to develop their own client list, someone who has come from a large firm. Our ideal is to function like a law firm with an equal partnership structure, we're against inequality.

However, we are never going to be 10 person firm. In fact, we do not intend to rise above 4 or 5 consultants. Experience has taught us that anything larger brings problems of office politics" tells Alexander Paternotte.

Guy Stuckens also gives his vision for the future. "Our aim is complete client satisfaction, hence our stress on size and the amount of repeat business which we have. People who were our candidates 10 to 15 years ago are coming to us as clients, handing us assignments. Long may this trend continue".

www.search-consult.com

For more information, visit: Web:

http://www.stucpat.be/

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ompanies traditionally concentrated their efforts on obtaining robust legal, financial and strategic consulting advice. Some had the belief that, almost by sheer luck, the "people thing" would work itself out.

That has all changed. At Egon Zehnder International, we believe that the ability to make good "people" decisions is today's most enduring source of competitive advantage.

We are all probably familiar with the famous words by Jack Welch: "If we don't get the people thing right, we lose; it is the most important thing in all our businesses". In this new, borderless world, this so-called new economy, they are true words of wisdom.

Now, more than ever, top managers at leading corporations are increasingly appreciating the colossal value of recruiting and retaining a superior team.

They are not only consistently turning to search consultants; they are also relying on them as trusted advisors and partners in their pursuit of victory in the war for talent.

In light of this new mindset, I have been frequently asked what the similarities and differences are between mainstream or management consultancy and executive search. The answer is: they are remarkably similar. Take the case of Egon Zehnder International and McKinsey & Company, for example. Two leading professional service firms that operate in seemingly unrelated fields, but that, when compared side by side, they are governed by practically the same values and operating principles; and pursue comparable goals.

McKinsey & Co. was founded by James O. McKinsey in 1926, around two main ideas: "To serve senior management on problems important to them and their enterprises" and "Professionalism: putting the interests of clients first and maintaining the knowledge and skills necessary to serve these clients" .

Seventy five years later, the firm's mission statement stays true to its founding principles: "To help our clients make distinctive, lasting and substantial

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By J. Antonio Purón of Egon Zehnder International, Mexico 16

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improvements in their performance and to build a great firm that is able to attract, develop, excite and retain exceptional people" .

Through the evaluation and partner election process, along with an organic approach towards growth, they have sought to remain a "one-firm", with a worldwide culture that shares the same values, mission, standards of client service and willingness to collaborate.

McKinsey also lives by the principle of remaining a private partnership.

McKinsey has an amazing list of alumni, of which a distinguished member is A. Daniel Meiland, who was elected CEO and Chairman of Egon Zehnder International in October, 2000.

Egon Zehnder International was founded in 1964 in Zurich, by Dr. Egon Zehnder, who retired after 36 years of enthusiastic and inspiring leadership, precisely in October, 2000. Dr. Zehnder instilled in the firm a profound sense of professionalism, guided by two basic

“....Egon Zehnder International (is)...

the

number 1 exMcKinsey employer in the World.” principles: to place our clients' interests first and to lead our profession in creating sustainable value for our clients through the assessment and recruitment of top level business leaders.

The number of consultants in the global network of this Swiss-based firm at the end of FY2000 was 292, of which 44 that is, more than 1 in every 7 - are McKinsey alumni, making Egon Zehnder International the number 1 ex-McKinsey employer in the world. In fact, over 50% of the firm's consultants have formal management consulting experience prior to their search careers. The rest arrive at the firm with successful careers from an array of industries or service oriented institutions.

The selection process at Egon Zehnder

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International is perhaps the strictest in the industry. Through more than 25 interviews, performed by consultants from 4 or 5 different offices, the firm ensures that the potential candidate meets three basic criteria. The first is personal integrity, along with a complete fit with the firm's internal culture and values. The second is the candidate's patent orientation to client service. A third decisive factor is a keen business sense, acquired through 10 to 15 years of previous relevant professional experience. Egon Zehnder International selects and recruits only those consultants who have proven to be successful after a number of years.

The firm operates out of 55 offices in 36 countries. Every new consultant joining the firm has earned a postgraduate degree, some have two or more; and many have worked or studied in several countries. To complement this vast business experience, Egon Zehnder International invests heavily in training and development - more than any other firm of its nature and size.

Our structure is perhaps the most solid foundation of our vision. Our consultants are organized around a single profitcenter partnership. This is designed to eliminate competitive barriers between our offices, allowing the firm to operate seamlessly between countries and regions.

Mr. Rajat Gupta, CEO of McKinsey & Company, joined us at our Firm Conference in Berlin last year as one of the keynote speakers. He talked about the structures of professional consulting firms, and expressed his downright admiration for the culture, values and operating principles of Egon Zehnder International.

Our firm is privately owned, and it will stay that way. This is because we have chosen to operate independently of any outside interests and are motivated solely by our passion for client service and results. As Mr. Meiland points out, "what bothers me most about the executive search industry is that it's become far too commercialized. You cannot have it both

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ways - you cannot play to be a business at the same time as you want to be truly professional. It just doesn't work. I think the best structure for a professional firm is to be private, not publicly held… if money is the overriding concern, the wrong choices are made".

At Egon Zehnder International, we become partners with our clients. Over two thirds of our engagements come from existing clients, most of whom we have served over a long time. David H. Maister, one of Dr. Zehnder's favorite authors, writes: "If your clients aren't actively telling their friends about you, maybe your service isn't as great as you think".

As management consultants, we have to rapidly and thoroughly understand the nature and strategic challenges of our

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clients, in order to help them solve their top management concerns. We do not delegate. The consultants working on the engagement are those best prepared to have the right ideas on how to solve a challenging executive search, a complex managerial appraisal, or a top level corporate governance issue.

Another crucial point of differentiation for Egon Zehnder International is its compensation structure. At most management consulting and executive Search Firms, professionals are paid according to the size of their billings.

Consequently, firms invest considerable time and resources to track these results accurately. At our firm, rewards are strongly tied to seniority. Consultants do not receive commissions or any

J. Antonio Purón

Profile

J. Antonio Purón is a principal in the Mexico City office of the executive search firm Egon Zehnder International. Mr. Puron focuses on general management, marketing and business development searches, primarily in the fast moving consumer goods, high technology and telecommunications sectors.

Prior to joining Egon Zehnder International, Mr. Purón was a management consultant at Bain & Co., based in Mexico City. In this position, Mr. Purón worked on

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several cases in the U.S., Mexico, Central and South America. The projects included market introduction, business diversification and organizational re-design strategies, for clients in the personal computer, financial services, internet and retail industries.

Previously, Mr. Purón spent several years at Procter & Gamble, where he held various positions in the marketing area.

His latest role was marketing manager for the health care category. Based in Mexico City, Mr. Purón participated in various regional projects, in the U.S., Central and South America.

Mr. Purón received a Master's of Business Administration from The Kellogg School of Management, Northwestern University and a Bachelor of Science in Economics from The Anahuac University in Mexico City.

percentage-based compensation, encouraging teamwork and information sharing across the firm.

We are confident that there will never be a substitute for high level, personal advice, especially when it concerns leadership and human capital issues, which are crucial to the success of any business. The use of new technologies, such as the internet, will serve as a tool to improve our productivity in terms of research and knowledge management.

With our competency-based evaluation model, we not only select and attract top talent, but we are also capable of helping with their retention and motivation. Once a manager is hired by our client, we help them develop the individual; because throughout the process, we form a good understanding of what the strengths and areas of opportunity are, so that the client can then provide specific guidance and design the compensation Strategy accordingly.

Executive search is therefore naturally linked with management consulting.

There is a high correlation between the way each adds value. We both serve the same purpose of helping our clients solve their most pressing managerial issues and succeed. Clients benefit from sharing the dedication and the wealth of knowledge created by professionals.

David H. Maister contributes with his own definition of how to effectively "care" for clients: "Believe passionately in what you do, and never knowingly compromise your standards and values.

Act like a true professional, aiming for true excellence, and the money will follow".

Egon Zehnder International and McKinsey have both established themselves as truly successful professional firms and leaders at their field, mainly because their company's organization, structure, systems and staffing are completely aligned with their long standing Strategy of focusing, first and foremost, on serving their clients.

Source: "McKinsey and Company, inside and out" an introduction to the firm, March 1999 ibid "True Professionalism", by David H. Maister, The Free Press, 1997 ibid

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The Client's Bill of Rights: What to Expect from Your

Executive Search Firm

By Peter Felix, AESC espite its huge growth around the world as a critical modern day professional service, Executive Search Consulting can still be confusing to client hiring organizations and the candidates who are directly involved in the process.

For this reason the Association of Executive Search Consultants (AESC) has prepared a Bill of Rights for Clients and Candidates in the belief that educated users are more likely to be satisfied users.

An abridged version of the Client's Bill of Rights follows. Full versions may be downloaded from the AESC's web-sites www.aesc.org or www.bluesteps.com.

An executive search involves a complex process that requires a substantial investment of your time and resources.

When you hire a retained executive search firm, you're entitled to receive a high level of service. But what is the difference between a professional, reliable service and a lower quality of service? What are your rights and obligations as a client? Above all, how do you know when you have received excellence in client service?

The more you know about the ins and outs of working with Search Firms, the better your chances of achieving a successful search and receiving full value for your investment. In the belief that

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Peter Felix well-educated clients always lead to better client/consultant relationships, the AESC offers the following "Client's Bill of Rights."

I. The executive search firm shall provide you with an accurate and candid assessment of its capabilities to perform your search.

Not all Search Firms offer the same services, but they should all operate in line with the highest professional standards. In addition to the obvious differences in size and manpower, Search Firms also vary in their areas of expertise, their knowledge of and contacts within

various industries, and the skills and experience levels of their search consultants.

Before agreeing to undertake any search, the executive search consulting firm should: ● Verify that it has the resources, time, knowledge and expertise to handle your specific assignment. ● Disclose any and all information with regard to relationships or circumstances that might create actual or potential conflicts of interest.

Disclose limitations arising through service with other clients that may affect its ability to perform the search assignment. ● Define with you which part of your organization is the "client" (i.e. which subsidiary, division, department, etc.) and agree upon the period, if any, during which the firm will not recruit from the defined client organization. ● Define the scope and character of the services to be provided and the fees and expenses to be charged for the services rendered.

This requires that you provide a full and accurate description of your organization, its business needs and culture, the position to be filled, and your criteria for the ideal candidate. If the search firm cannot handle your

assignment, it should explain why and then refer you to another firm better equipped to meet your needs.

II. The executive search firm shall tell you who will conduct the search.

In addition to the consultant who generates the business relationship, there may be a team of professionals who will handle the search assignment.

It is certainly within your rights to ask for and to receive full and open disclosure regarding the consultants and their ability to successfully handle the assignment, as well as the resources the firm has available to support the consultant/team working on your project.

III. The executive search firm shall provide a high-level consultative relationship.

"Retained executive search consulting" is defined as a specialized form of management consulting, conducted through an exclusive engagement and on a pre-determined retainer-fee basis. Its purpose is to assist your organization in defining executive positions, identifying well-qualified and motivated candidates, and selecting those best suited through comprehensive, quality assured search processes.

In addition to locating high quality candidates, your search firm should also provide information and feedback that not only helps direct your search for executive talent but can also be used to run your business more effectively. This feedback includes: ● Knowledge of the industry in which the search will be conducted, including availability of candidates, comparative assessments of those candidates, and remuneration levels. ● General market research regarding how your organization is perceived in the market, what your competitors are doing, and what kind of recruiting strategies may or may not be working at any given point in time.

Do not expect a 50-page market research report for your retainer fee. But the search firm should give you a reasonable overview of market conditions and the general perception of your

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organization in the marketplace for talent.

IV. The executive search firm shall hold your information in strict confidentiality.

By its very nature, an executive search requires you to divulge highly sensitive information about your organization. The search consultant must treat any and all information you give them with the utmost confidentiality.

At the same time, the consultant cannot conduct an effective search without making some information available to potential candidates. To protect your interests, however, the search consultant should guarantee that he or she will: ● Use confidential client information only for the purposes of conducting the assignment. ● Disclose client information only to others within the search firm (who may be supporting the consultant on this assignment) or potential candidates

“...your search firm should also provide information and feedback that not only helps direct your search for executive talent...but can

also be used to run your business more effectively.” who have a need to know the information. ● Never use confidential information for personal gain or provide that information to third parties for their personal gain.

V. The executive search firm shall demonstrate a clear understanding of the position, the company and the objectives of the search.

In order to conduct a successful search, the consultant must have a crystal clear understanding of the position to be filled, the requirements of the job and your company's culture. Accordingly, you should insist on receiving a report that details the consultant's understanding of:

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Your desired level and type of experience ● The background, education and technical skills needed to successfully perform the position ● Responsibilities of the position ● Any interpersonal skills needed Good Search Firms will do more than just feed back the job description you present them. They will proactively help you develop, modify and refine your own understanding of the position. To help with this critical step, give your search consultant access to all those who participate in the selection process and encourage them to provide full disclosure regarding the position to be filled.

Because the job description represents the bedrock of a successful search, you have a reciprocal obligation to notify the consultant any time circumstances (either internal or external) require a change in the position or the type of person you're looking for. Be aware that a major change in search specifications may require a change in fees.

VI. The executive search firm shall provide you with regular, detailed status reports on the progress of the search.

Depending on the position to be filled, the availability of talent and a host of other factors, a successful search can take anywhere from a few weeks to several months. To keep you up-to-date, the search firm should provide ongoing progress reports that include: ● The companies at which the consultant has tried to target candidates ● The market response to the search ● Obstacles to identifying or attracting candidates ● Candidates currently being developed The search firm should update you regularly, either by phone, fax, e-mail, written report or some combination of all four. Let your consultant know your preferences.

VII. The executive search firm shall present qualified candidates who fit the position and the culture of your organization.

The consultant should present you with a range of qualified potential candidates,

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whom he or she has thoroughly assessed and interviewed. The consultant should be able to discuss each candidate's: ● Experience level and significant achievements relative to the position to be filled ● Education and background ● Intellectual, interpersonal and motivation competencies ● Personal strengths and weaknesses with respect to the position to be filled ● Perceived cultural fit ● Interest in the position ● Remuneration and financial expectations In presenting candidates, either individually or in a "shortlist," you should expect the consultant to discuss the interviewing arrangements and other issues that can affect the critical interviewing process. Immediately after you have interviewed candidates, your search consultant should solicit your comments and feedback and help you conduct comparative candidate assessment and analysis. They should complete and transmit to you the verification of credentials and reference checks.

If it becomes apparent that the search will take considerably longer than expected or that it may not yield an acceptable range of candidates, the consultant should inform you as soon as possible and discuss alternative courses of action.

VIII. The executive search firm shall help you negotiate with the final candidate, representing both parties with skill, integrity and a high degree of professionalism.

Once you have selected a final candidate, the consultant's role changes from that of search agent to negotiator and communicator. At this point, the consultant's primary function is to help you bring the candidate on board in a manner that facilitates a long and successful stay with your organization.

This includes: ● Acting as an intermediary between you and the candidate regarding compensation, benefits and other

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conditions of employment Feeding back to you any reservations or concerns the candidate may have about accepting the position ● Helping the candidate to assess the opportunity ● Working with both sides to create a "win" for everyone Although the consultant represents your interests first and foremost, he or she must also remain sensitive to the needs and concerns of the candidate. To do otherwise significantly reduces the chances of a successful hire. In addition, representing both parties with integrity and professionalism ensures two important outcomes: ● The candidate comes aboard feeling that he or she has been treated fairly ● The search enhances your company's reputation in the marketplace Remember that your candidates are also very busy professionals who have sacrificed valuable time to talk with you.

Furthermore, they did not solicit this opportunity; it was presented to them.

IX. The executive search firm shall provide you with a clear understanding of its replacement policy and other unusual situations that may arise during and after the search.

The search firm cannot (and should not be expected to) guarantee to fill your position. The consultant also cannot guarantee that, once placed, a new hire will stay with your firm. With that in mind, the consultant should provide (in writing) an explanation of the firm's policy regarding possible outcomes.

These include: ● The search firm's obligations and responsibilities to you should a newly recruited professional leave your company for any reason within an agreed period of time. ● Your obligations to the search firm should you hire a candidate presented during the current engagement for a position other than the assigned vacancy. ● The conditions under which the search firm can withdraw from your assignment or consider it sufficiently ●

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changed to start a new search.

X. The executive search firm shall provide you with a reasonable level of follow-through after you have hired the candidate.

Seemingly successful placements can sometimes fall apart during the transition period. As a result, the consultant's responsibility does not end when the candidate accepts the offer. Instead, the consultant should stay in contact with the new hire as long as necessary to ensure a smooth transition and help them settle into the new position. Above all, the consultant should make sure that you are fully satisfied before considering the search a success and concluding the assignment.

Stand up for Your Rights!

Given the importance to your organization of filling the position with the highest quality candidate, you have every right to expect the highest level of service. Remember that by working with a retained executive search firm you have entered into a consulting partnership.

Take a proactive approach to managing the relationship. Do your homework and provide full and accurate information regarding the position and the ideal candidate. Set very clear expectations up front in terms of how you and the search consultant will work together. Keep the lines of communication open at your end, and stay in regular contact with your consultant until the assignment has been completed to everyone's satisfaction.

If at any time during the search your consultant doesn't seem to understand the nature of the assignment, fails to provide ongoing feedback and progress reports, fails to present a range of qualified candidates or doesn't represent your firm in the manner you wish, express your dissatisfaction immediately!

Now that you know your rights, it's up to you to hold your search firm to the high standard of service that you expect. www.search-consult.com

For more information, visit: Web:

www.aesc.org

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Going Global -

Options Expansion

for

By Barbara Kwateng, search-consult

oing 'international' is a natural course of evolution for many executive Search Firms. Motivated by a desire to generate higher revenues and improve client service many choose to join a network, open a subsidiary abroad or merge with a global wholly owned firm. But there is a breed of international firm which is on the increase, the one site firm serving an international clientele. They believe that the benefits of a single site outway the costs. The success of this would depend on whether all the opportunities and more which are available to multinational firms could also be exploited by these one-office search companies. We

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Andrew Garner

look at the different types of international firms and ask how a one-site firm can capitalize using their models. In addition, we look at how a one-site firm can avoid the difficulties which a multi- national firm may face.

An example of a one-site firm is Wakefield Talabisco. Based in New York, it has no overseas offices or affiliations yet claims that it is able to conduct international search as well as any multinational.

"To avoid watering down company culture, hands on bosses prefer to keep one office from where the business is managed", says Barbara Talabisco, founder of the firm.

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Ms Talabisco identifies three basic reasons why a firm may need to operate overseas - languages, time zones and cultural awareness. She believes that she has developed a model which overcomes all three problems.

"We work 24 hours a day. At 5 p.m.

New York time, we begin calling potential candidates in Australia, by 7p.m. we're contacting talent in Asia. Our researchers have all spent time outside the USA. Therefore we respect the differences between business practices in Taiwan as opposed to Korea. As far as a language barrier is concerned- there isn't one. Top talent in Europe and increasingly across Asia are fully conversant in English".

Ms Talabisco believes that the effectiveness of this Strategy is reflected by the fact that her business currently has 15 searches running across Asia. "This is a clear sign of a winning Strategy. It is most definitely possible to run an international firm from one office."

Christian & Timbers would take a similar line on language as a barrier but believe that the consultant needs to be based reasonably close to the client.

This means that the firm's researchers, or knowledge workers as they are termed, are asked to identify talent from a head office in Cleveland, Ohio, midwest America. "Where research is done is irrelevant. The same research methods are used to find candidates across the world. For example, we recently did an assignment to find the Vice President of Human Resources at Ebay. Our line up of candidates represented a very mobile pool of talent from Belgium, Switzerland, Germany, the US and France. Local research just wouldn't have worked in this case.", explains Geneva based Brad Dewey, Managing Director of European Operations.

Essentially, Christian & Timbers achieve this by splitting the traditional research role in two. The knowledge workers - who have reading skills in foreign languages and a high degree of sector specialization - identify candidates before the local consultant makes contact.

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But is this the best path? Research done from one office may only bring the most visible top candidates but can miss out on vital local talent. These individuals may not be as easy to find out, perhaps appearing occasionally in local press, for example. To find out about the local candidate, the researcher may need an ear to the ground and this can mean a local presence. Managing Director of Garner International, Andrew Garner believes that this is key and is strongly of the opinion that the ideal model sees "...a research project being done at local level whilst the consultant who took the assignment creates the shortlists, talks to the candidates and deals with the

clients".

This desire for local knowledge was one of the motives behind Dutch firm Froom & Partner's decision to join Leaders Trust International. Founder, Albert Froom, saw "the evolution of the Euro manager who, for example, works in Britain during the week and lives in Switzerland at the weekend". Mr. Froom recognized that his database is limited to candidates based in the Netherlands and that joining a network was an ideal way to extend his reach.

"When we need someone who has certain experience in certain countries, we can go to our members for help".

For a one-office firm determined not to

Going Global - The Options Costs

Local Knowledge

Decision Making & Business Management

Single Office Start up costs are minimal – although Consultants should expect to build up Air Miles!

Working from one office simplifies business and ensures that the firm need not consider international employment law, taxation etc.

Simplest solution

Brand Management

Relatively simple, but brand awareness beyond the home country may be limited.

Research

The single office firm can have the hardest task in identifying local talent.

The issue may be simplified through the use of external research firms.

Although some firms demonstrate it is possible, the none-local firm is at a distinct disadvantage.

Client Management and Business Development

Network of Affliates Costs maybe relatively low, but revenues must be shared

Integrated Subsidiary Highest cost

Every firm looks after local issues.

The firm has to be aware of cultural, business and legal issues in all countries in which it operates.

Can be problematic.

Albert Froom – now with Leaders Trust - describes his experience at a previous network as being akin to the ‘United Nations’. Networks can also be insecure – look at the experiences of Ward Howell. Some firms – such as TRANSEARCH – have instituted share swaps to reduce this risk.

Different networks handle this in different ways. For example, all members of the Boyden International group must use the Boyden branding exclusively. Amrop/Hever allow a local brand to be used.

A local presence may make research easier and – potentially – quicker, but can bring off limits issues.

Integrated firms have the right to impose a policy and a set of standards– although management of an international business has its own problems

Integrated firms argue that the networks are not as consistent in terms of standards, procedures and infrastructure and that this can have an impact on client service.

Some clients have shown a preference for integrated businesses when selecting preferred provider lists.

However, many of these lists are overruled at a local level anyway

expand abroad, the solution may be to contact a local research firm (see searchconsult, issue 2 for further information on executive research). Armstrong Craven, based in Manchester, England, works with over 200 executive Search Firms "Search Firms see the advantage in using us when they need to complete European assignments. For example, some of our clients are American companies whose employees do not possess the linguistic skills which we have here" explains Victoria Gartside, Head of the Executive Research Practice.

Ms Gartside reveals that the firm often carries out work on behalf of clients based outside the United Kingdom.

Search Firms see the ability to outsource research as beneficial for a number of reasons - it can reduced fixed costs, help with periods when demand is particularly high and also provide a degree of industry specialization with the client may not have. Ms Gartside also sees a very significant benefit in terms of off limits. Armstrong Craven does not adopt the off limits policies of its clients

The opening of a subsidiary enables a firm to extend the brand without losing control.

A local presence may make research easier and – potentially – quicker, but can bring off limits issues.

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(Armstrong Craven's off limits list largely consists of Recruitment Consultancies).

Although the client’s off limits are strictly adhered to during the course of the assignments the firm undertakes on its behalf, Armstrong Craven does not adopt those off limits when working for other clients. If the overseas search firm worked through a UK affiliate, it would have to work within both its own and the affiliates off limit issues.

The key reason for having local representation, however, is for business development. Without a local market presence, it can be much more difficult to export a search brand abroad. What could make a firm in Hong Kong choose a European search firm to find them a new CEO? Logically, the local search firm with a reputation on the local scene would begin the sales process with a huge advantage Albert Froom concurs that international presence is vital for winning business from international clients.

"Although many of our clients are based in the Netherlands, they may have

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“...Search Firms see the advantage in using us when they need to...some of

our clients are American companies whose employees do not possess the linguistic skills which we have here.” offices abroad. Therefore market presence is essential to our winning an assignment," he explains. "Our clients are involved in a globalization process, we feel we should be too. We also benefit by knowing what search trends are developing in other regions, for example in the United States. This impacts the way we do business."

By not having local representation, the firm may be sending a damaging message - that a firm is not well enough acquainted with the indigenous market.

Andrew Garner argues the case for having nodal offices which cover a geographical area, rather than presence in every country.

"Reputation is all important," he explains. "The essential factor in developing a successful firm is critical mass and this is not a numerical phenomenon. It is more about developing a reputation which is easily recognized and well respected". In Garner International's case, this involves offices in Indonesia, Malaysia and Singapore serving Southeast Asia.

As the war for talent continues to increase - and demographics show that it will - the tendency for Search Firms to work beyond their borders will increase.

Every model carries with it strengths and weakness, and the market demonstrates that there is no single solution which guarantees success. www.search-consult.com

For a database of global firms, visit: Barbara Talabisco

Web:

www.search-consult.com

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Executive Search -

Nordic countries

The

By Barbara Kwateng, search-consult

The Nordic region of Europe - Sweden, Finland, Denmark and Norway - is increasingly seen as a single market for executive Search Firms. Michael Berglund of Michael Berglund Chefsrekrytering talks to Barbara Kwateng about why this is and how his firm - part of the IIC Partners network - operates in this environment. ichael Berglund Chefsrekrytering operates in a Swedish market which is defined by both national and regional characteristics. Sweden itself has a

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population of only around 10,000,000 but demand for search is increased by the higher than average number of corporate headquarters - Volvo, Ericsson and H&M are all based in Stockholm - and the close links with other Nordic countries. These links reflect both client demand - there are many Nordic wide companies with the airline SAS being an example of this. In addition to this, whilst the countries have distinct languages, they are tightly entwined - there are so many similarities between the different languages that citizens of each country can interact as would people speaking different dialects

of the same language. There also tends to be an overlap between ownership of languages; Swedish is the mother-tongue for 5% of the Finish population - a relic from the previous century.

Michael Berglund Chefsrekrytering is part of the IIC partnership, but it enjoys an especially close relationship with the Nordic members.

"We work very closely with our partners in the Nordic region" states Mr Berglund. "When we start a pan- Nordic assignment, we draw up a brief together and then start researching separately.

Local research is important; for example,

only a Swedish researcher would know what it means if someone has gone to certain Swedish universities, e.g. Uppsala Medical School as opposed to Karolinska Medical School. We understand the difference between Swedish regional accents and what this suggests about a candidate. It would be difficult for us to compare candidates who have studied at two top Norwegian business schools, for example Bergen against NHH. Our colleagues in Norway understand these fine cultural differences within their country better than we can". Although Norway is not a member of the European Union, it has EES status which means that its population can travel freely and are without work restrictions within Europe, making it possible for the Norwegian Search Firms to share candidates with their Swedish counterparts. Norway is one of the 15 countries participating in Schengen Accord of 1985, from which some European countries such as Great Britain have opted out of.

In Copenhagen and Helsinki, the IIC partners are known as J. Friisberg. Until fairly recently, J. Friisberg was a network in its own right, but its members decided that it was â&#x20AC;&#x153;...too small to develop internationallyâ&#x20AC;?. When the partners of the Friisberg network joined IIC, its members decided to keep the Friisberg name but in all other ways have been subsumed into IIC Partners.

Currently around 10% of revenues for Michael Berglund Chefsrekrytering relates to cross border work, and Mr Berglund expects that with will increase rapidly. In preparation, the Nordic Members of IIC are already co-operating on projects such as "The Nordic Search Academy". This is designed to provide training for new partners, consultants and researchers and to create a forum for discussion and close integration amongst employees. The firms also "...develop methodologies together and strengthen the resources of what would be very small markets".

Mr Berglund, a former Doctor of Psychiatry, believes that the ever tightening links between Search Firms in the region is in the interest of all

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Background Like many Search Firms, Michael Berglund Chefsrekrytering has developed a package of services beyond the core Executive Search business. Senior level recruitment amounts for the largest slice of the business, but over recent years the firm has launched 'People in Project' and 'The Recruitment Academy.

'People in Project' provides senior management on an interim basis a service offered by many Search Firms. The Recruitment Academy is a more unusual service, designed to educate the client in better recruitment.

One objective of the Academy is to ensure that clients are fully aware of the different services offered by the contingency agency, advertising and direct search.

"Many companies still do not know what exactly differentiates us as a search company from, say an employment agency. Many firms believe that a big database with

concerned.

"We need this to be able to continue to work at the very top level of executive search. Developing a specialist, Sweden only, business would not be sensible.

Ours is such a small country that the search firm would either run into off-limits problems or end up working at the lower end of search. It is much more logical to have a general search firm with specialist consultants working within it, for example in finance, government, consumer goods or pharmaceuticals".

Despite the slowdown in certain parts of the World, demand for search in the Nordic region remains strong. Particular growth has been seen in the amount of

many executives implies a strong executive search firm but we would say otherwise. We would define that as a high level employment agency. For us, search means seeking and identifying who is the best person for the job with and without a database. On average we contact 100 people for each search" explains Berglund.

"We then teach their recruitment managers the essentials of interviewing which are important after we have completed research and search. We improve our clients' skills on how to draw up profiles for ideal clients. You can be an extremely good executive but if you don't know how to sell your company, you will simply not know how to win the war for talent. The client needs more than the perfect search consultant. We can sell the position to a candidate but the client needs to do their part too".

search work being undertaken for the public sector.

"We expect this to be a worldwide trend. Governments are increasingly using executive Search Firms as they realise the importance of human capital.

In our market, it was not legal to perform searches for the government even 10 years ago. Things have now changed.

Public institutions are seeing that they are not as popular as they once were in attracting human capital".

www.search-consult.com

For more information, visit: Web:

www.mberglund.se

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

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

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

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

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

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