search-consult Issue 7

/ ISSUE 7 2001

The International Executive Search Magazine

Search Icon: Russell S. Reynolds Jr The Chairman of The Directorship Search Group talks to search-consult

Executive Search The South African Market Women in Search Strategic Board Recruiting

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.

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.

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.

Winning the Talent Wars

by Bruce Tulgan

Recruit & Retain The Best

by Ray Schreyer, John Lewis, Jr. McCarter

"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

search-consult Issue 7 2001

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!

Purchase online at www.search-consult.com

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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, Pilar Gumucio editorial@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 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.

September 11, 2001 Production schedules are such that this issue of search-consult will land on desks several weeks after the events of September 11th.

Despite this, we would still like to express our sincere condolences to all those affected by the tragedy. We feel that it would be fitting to highlight the Disaster Relief Fund set up by the Association of Executive Search Consultants.

If you would like to make a contribution to this fund , cheques may be made out to the AESC Disaster Relief Fund and sent to the AESC at 500 Fifth Avenue, Suite 930, New York, NY 10110. Should you wish to make contributions via money transfer or credit card then send an e-mail to Peter Felix at pmf@aesc.org for further information.

In the next issue of search-consult, we will be eager to illustrate any examples of how our industry is pledging support to those affected by the disaster. Once again, our deepest sympathies for all those affected.

The team at search-consult

Front Cover: Russell S. Reynolds Jr, Chairman The Directorship Search Group. Photography courtesy of The Directorship Search Group

Š Copyright 2001 Dillistone Systems Ltd

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Korn/Ferry - Profits fall, C.O.O. departs www.search-consult.com

NEWS

KORN/FERRY INTERNATIONAL reported revenues of $114.4 million for the first quarter ending July 31, 2001, a 34.1 percent decrease from revenues of $173.6 million in the first quarter one year ago.

The firm reported a loss of $1.25 per share, compared to earnings of 26 cents per share for the same period one year earlier. $49.4 million of the earning figures include asset impairment and restructuring charges. Operating losses amounted to $52.4 million for the first quarter, compared to an operating profit of $18.5 million for the first quarter of 2001.

Korn/Ferry's executive search business reported revenues of $99.2 million, a 34.7 percent decrease from revenues of $151.9 million for the same period a year ago.

Revenues for executive search in North America declined 45.3 percent to $52.5

Korean search firm receives ISO9001 accreditation www.search-consult.com

NEWS

A.N.S. INC. HAS BECOME THE FIRST ever human resources management firm in Asia to be ISO9001 accredited for its human resources management and human resources development services.

The Korean search market has been

million for the first quarter of fiscal year 2002. Futurestep, the firm's middle management recruitment branch, reported revenues of $14.3 million for the first quarter of fiscal year 2002. This equalled a 33.6 percent decrease from $21.6 million in revenues from the previous year. This quarter also saw a reduction in operating losses for the online venture of 53.8 percent to $3.7 million, compared to operating losses of $8.1 million for the same period a year ago.

These figures accompany the news that Michael D. Bekins, Chief Operating Officer plans to leave the company at the end of October, after 20 years of service. Since joining the firm in 1980, Mr Bekins has held various senior management positions in Korn/Ferry's network, most recently as President, Europe, having been President of Asia/ Pacific.

expanding rapidly in the past 10 years currently numbering over 100 firms actively serving the needs of multinational corporations and domestic corporations.

A.N.S. Inc. was established back in 1996 and started to evaluate their entire system over a year ago. It is the first company in Korea to be accredited by the International Standardization. ISO9001 is the international standard for quality management and quality assurance which established by the technical committee (TC176) of the International Organization for Standardization.

Christian & Timbers open in Chicago www.search-consult.com

CHRISTIAN & TIMBERS HAS announced the opening of its Chicago, IL office as part of its strategy to expand operations in the Midwest. Birgit (Bee) Westphal will lead the Chicago office as managing director.

Stephen Mader, President and C.O.O. of Christian & Timbers, commented, "Chicago is the gateway city for our industrial practice and is arguably the second greatest commercial and financial center in the country. The city has a strong talent pool and market for executive search in addition to its well-established venture capital community".

Birgit Westphal first joined Christian & Timbers as a managing director in the Toronto office in August 2000, having ran her own search firm in Germany and then in Canada. Birgit Westphal will continue to lead the industrial practice. Christian & Timbers Chicago will focus on expanding the firm's financial, life sciences, consumer and retail practices.

This move is coupled with the firm's move into larger offices in London's Picadilly. "At a time when many companies are downsizing, including executive search firms, we feel privileged to be expanding to a larger space to accommodate the growth in our business" says managing director of Christian & Timbers' European operations, Brad Dewey.

COMING UP IN THE NEXT ISSUE:

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Exclusive Interview

Global Search

Hob Brown Jr, CEO Russell Reynolds Associates

search-consult analyses the global reach of the major players

search-consult Issue 7 2001

NEWS

Executive Search in Spain & Portugal

The World Search Group Partners’ meeting

Indepth coverage incorporating the results of an exclusive survey by search-consult

An exclusive report from Copenhagen

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Research firm launches first 24 hour service www.search-consult.com

NEWS

ARMSTRONG CRAVEN LAUNCHES first 24 hour executive research service.

Executive research and business information firm, Armstrong Craven, announces today that it will offer clients a 24 hour executive research service.

Clients' demands for international executives has resulted in over eighty per cent of Armstrong Craven's assignments involving searching Europe, the US and Asia Pacific for talent.

From their offices in Manchester, Northern England, researchers work through the time zones to identify and attract the talent across the world.

Armstrong Craven's client list include

international blue chip companies, the international executive search businesses and professional advisors such as venture capital firms. Employees from the three main research practices - technology, healthcare and generalist will operate appropriate shift patterns specific to each search assignment.

Kirsty Young, Armstrong Craven's director of business development says; "Our clients demand candidates with global experience on their CVs so it is only right that we should offer them a truly international service. We have worked through the night for our clients on an adhoc basis and today's announcement shows our formal commitment to responding to our customers' needs."

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The IACPR respond to terrorist attacks www.search-consult.com

NEWS

In response to the World Trade Center disaster, the International Association Of Corporate and Professional Recruitment (IACPR) will offer its resources to serve as a clearing house for any of the employees at the Trade Center disaster who lose their jobs as a result, and for employers who have available positions which might be suitable for these individuals. Individuals and firms looking to learn more may contact the IACPR on +1 312-630-9881 or iacpr@aol.com.

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New Middle Eastern office for Cornerstone www.search-consult.com

NEWS

CORNERSTONE INTERNATIONAL Group has unveiled the opening of a new office in Saudi Arabia.

It is intended that IRC Retained Search, headquartered in Al Khobar, will assist Cornerstone in international client organizations as well as local Saudi Arabian organizations seeking executive talent (Saudi and non-Saudi) for their Middle Eastern operations.

The company feels that "in light of the current atmosphere in the Middle East, many companies may seriously consider establishing and/or strengthening their local capacity to operate from a "friendly" country such as Saudi Arabia.

Products, supplies, and services will be needed to support the current Middle East situation, and much of this support may entail private-sector organizations operating from a Middle East location".

According to Cornerstone's Chairman, William Guy, "IRC Retained Search was carefully selected following a rigorous screening process that entailed face-toface interviews plus careful reference checking of multiple client firms of IRC. We feel that Cornerstone now has a high-quality consulting representation in the Middle East."

In addition to retained executive search, IRC Retained Search also provides other forms of HR consulting services to client firms, for example, training and development HR consulting services.

The firm feels that such training capability is also required by firms that are entering the local Middle

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Boyden Remains Confident www.search-consult.com

NEWS

BOYDEN GLOBAL EXECUTIVE SEARCH held its regional European meeting during the third week of September, at which 81 of the firm's search professionals and their partners were joined by their counterparts from the United States, Chile, Japan and Australia.

At a recent regional European meeting in Rome, Boyden Global Executive Search's President, Christopher Clarke, unveiled statistics regarding the 18% increase in Boyden's global professional staff since January 1, 2001, which was "in marked contrast to the implosion by major competitors".

This was announced to 81 search professionals and their partners plus counterparts from the United States, Chile, Japan and Australia. Also announced were the additions of Boyden offices in the

East market for the first time.

The General Manager of IRC Executive Search is Mr. Ramzi Beidas. "We are prepared to assist client firms in locating local and non-local executive talent willing to be based in the Middle East.

We are able to recruit professional talent, and we are also able to train them, if needed."

The opening of offices in Saudi Arabia follows Cornerstone International Group's follows the signing of SeleCorp, S. C. as their official Member Firm in Mexico City, Mexico. Founded in 1984, SeleCorp specializes in executive search and selection services in Mexico, Canada, and the United States. The Mexican arm will be run by Julieta Gomez Valasco.

following locations: Tokyo, Atlanta, Baltimore/Washington DC, Malaysia, Indonesia, Singapore, Copenhagen, Dusseldorf and City of London (Financial Services). Mr Clarke also revealed that an agreement has been made with a major firm in South Africa, finer details are to be made public at a later date.

Attendees heard that Boyden has to date accomplished more than 450 key searches for its top ten global accounts.

Knut Revling (Boyden, Oslo) and Tom Flannery (Boyden, Pittsburgh) presented the firm's new management assessment tools to the audience. Boyden is anticipating a "turbo-charge" in this line of business with Knut Revling as Practice Leader. Practice groups will now be linked up internally across the world, told Bob Concannon (Boyden, San Francisco), Practice Leader for High-Tech.

Amrop Hever Group names new Executive Director www.search-consult.com

THE AMROP HEVER GROUP has announced that Gerard Nauwelaerts will succeed Paul McMahon as Executive Director.

Mr McMahon and Mr Nauwelaerts have been working together for the last few months in the hope of achieving a smooth handover. The Amrop Hever Group was formed following the merger of Amrop International and the Hever Group.

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

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Key moves in Executive Search this month Spencer Stuart in South Africa have made a new appointment; Mpho Seboni has joined the Johannesburg office of Spencer Stuart as a Director in August 2001. He has occupied a number of CEO and senior line manager roles in South Africa, USA and Botswana companies in a variety of sectors and was a management consultant with Gemini Consulting, Johannesburg. Prior to joining Spencer Stuart, Mr Mpho was the Managing Director of an investment holding company. Mpho Seboni has lived in the UK, Canada, and South Africa and was educated at McGill University (BA) and Oxford University (M. Sc).

Hong Kong based executive search consultancy, Bennett Associates, has announced the appointment of two senior consultants in Hong Kong and Malaysia; Brian Lockyer and Foo Kok Yee. Bryan Lockyer has worked for Hong Kong's largest IT&T recruitment agency and with a leading New Zealand's IT recruitment firm. Foo Kok Yee was an employee with Citibank over the last 25 years and was most recently directly involved in the recruitment of senior technology specialists for Citibank Malaysia.

Tom H. Rosenwald joins the New York office of The Directorship Search Group as a managing director and head of the marketing and consumer products practice. Linda Ducruet joins the firm's Greenwich, Connecticut office as a Managing Director and head of its wealth management practice. Both were previously with Heidrick & Struggles.

Odgers Ray & Berndtson have awarded their annual prize for the Cranfield School of Management to Kester Scrope as the MBA student most likely to succeed in management. The ÂŁ2,000 Odgers Ray & Berndtson Prize is presented to a full-time MBA and was established in 1987 by Ian Odgers, who took the Cranfield School of Management full-time MBA programme in 1966.

Boyden has appointed John Dembitz as its Director. Currently holding a number of non-executive directorships. Mr Dembitz joins Boyden with responsibility for board level appointments and for developing the professional services practice. He will work alongside London Chief Executive Mike Curlewis in the strategic development of Boyden's UK/ Irish offices.

John Dembitz was a former Partner at Korn/Ferry International and a senior consultant with McKinsey & Co. The firm has also strengthened its German team with the voting of new partners. As announced in search-consult (issue 5), Ulrich Schuhmann, Thomas Breitzmann and Michael Kerber have newly been elected as partners. They are now joined

by Dieter Albeck and Dr. Marlis Reck which takes the total count of partners at Boyden in Germany to 14.

Heritage Recruiting Group, Connecticut, has named Vincent P. Nolan as Vice President. Mr. Nolan was previously executive director at Meriden Business & Learning Center. In his new position, Mr. Nolan will focus on new client development and executive level recruiting in various industries for the firm.

Simultaneously, the firm has formed a recruiting alliance with temporary staffing firm McIntyre Associates and will now offer its existing clients executive search options in focused practice areas which include, accounting and finance, office service and information technology.

Chicago-based executive search firm Cook Associates has named Ken Norris, formerly with A.T. Kearney Executive Search, as Vice President in its technology practice.

Battalia Winston International, New York, has appointed Dr. Gil Carrara as head of its healthcare practice specializing in pharmaceuticals, biotechnology, consumer healthcare, managed care and health

information. Dr. Carrara comes from Nicholson International, where he was managing director of the firm's healthcare practice. Previously, Dr. Carrara served as a principal in Korn/Ferry International's global healthcare practice.

Dick Beal has been named as Executive Vice President and Managing Director of DHR International, Illinois. Beal comes from Korn/Ferry International, where he served as Managing Director in the Austin office.

Korn/Ferry International have recruited Chris Matchan as a VP in the London office.

Bishop Partners has opened a new office located in Los Angeles and hired Peggy Winston as Vice Pesident to head the operation. Ms. Winston joined the firm having recruited for Los Angeles-based firm Brad Marks International, entertainment industry search firm. The firm has also appointed Holly Haygood, formerly with Heidrick & Struggles International, as Vice President in the New York office.

Sheffield Howarth, the financial services recruitment firm, has hired six staff in London, Paris and Frankfurt.

Geraldine Kaye, Chair of UK Firm GAAPS has been elected chair of the Association of Search and Selection Consultants.

Korn/Ferry International has closed three additional offices in Emeryville, California, Dusseldorf, Germany, and Prague, Czech Republic.

Joanna Clemens has joined The Miles Partnership from Norman Broadbent

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

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Icon Russell S. Reynolds Jr

By Jason Starr, search-consult

here are not many retired search executives who, upon returning to the business, can generate headlines in the Financial Times, Fortune and The New York Times. One who can and did - was Russell S. Reynolds, Jr Founder of Russell Reynolds Associates and now Chairman and CEO of The Directorship Search Group.

Now, in an exclusive interview with search-consult, Mr Reynolds talks about his career and how he sees the industry today.

Born and raised in Greenwich, Connecticut, Mr Reynolds was educated at Yale and spent some time in the US Air Force as a First Lieutenant and a Navigator-Bombardier before entering the business world with JP Morgan and Company.

"I worked there for eight years and that taught me a tremendous amount. I learned about business, made many contacts and developed my business philosophy - to do first class business in a first class way."

Mr Reynolds spent eight years with the Bank before deciding to move on. As has

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happened for many of the people leading the search industry today, his first exposure to the sector was as a candidate.

"I was being introduced by search firms to prospective employers, but I kept thinking about the fee they were going to earn if I was hired. I kept thinking about the process that the consultant was going through - how he wrote the letter, the mechanism of presenting me and so on. It fascinated me more than the positions I was being offered and after a few weeks I

Russell S. Reynolds Jr

realized that I was interested in the Search business. JP Morgan had offered me a position in Personnel because they considered me a 'people person' but I didn't want to do it in a bank - I wanted to be in the mainstream."

The status of the search industry at the time was not too high - Mr Reynolds recalls that, when his father was told of his plan, he had been less than impressed.

"He told me I must be out of my mind and that I was leaving the World's best company. I told him it was a tremendous opportunity and went and did it anyway."

Mr Reynolds joined a small firm called William H. Clark Associates and felt at home in the search industry from day one.

"I was working with companies like General Foods, Morgan Stanley, American Express and Oppenheimer & Co. and I loved it."

His aptitude for the business was clear from an early stage. Mr Reynolds recalls a story of a lunch that took place some six weeks into his employment.

"My senior partner invited me to lunch at the New York Yacht Club with a client. I felt fairly insecure and was unsure as to

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why I was there until the partner told the client 'Russ Reynolds here knows more about the search business than the rest of us combined'. I felt great."

His abilities were also recognised at an early stage by the industry as a whole. He was soon invited to sit on the steering committee of the AESC with the likes of Gardner Heidrick, Ward Howell and Spencer Stuart "…despite being the junior guy by quite a margin".

Mr Reynolds was with William Clark for three years and built up his client portfolio to such an extent that he felt that he was unable to support the necessary level of service alone.

He considered the best way to get around this plateau was to hire an assistant - "…a bright young person to carry my bags, leverage my time and help me do the searches".

The role of bag carrier to Russ Reynolds - whilst perhaps not the most glamorous title in the industry - is one which has started the career of a number of leading search practitioners (see, for example, Steve Potter, CEO of TMP Worldwide Executive Search, profiled in Issue 2 of search-consult, and Halsey Minor, founder of CNET).

Scott Weiss

Brian T. Kelley, Jr

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Back at the Clark firm, the request to take on such a person was refused on the basis that if Mr Reynolds had an assistant all of the partners would also demand one.

Instead, it was suggested, some of the less busy partners could assist Mr Reynolds.

"I pointed out that I was 33 and they were in their fifties and would not wish to take orders from me."

Mr Reynolds admits to being "…a little bit brash and a little bit audacious" and felt frustrated with the limits imposed on him at William Clark. He recalls a conversation with the Managing Partner where he told him "Frankly, Mr Clark, I wouldn't have hired some of these people. They are rejects from the business world and I don't think they are qualified to make judgements about picking people for management."

It was this frustration that lead to Mr Reynolds' decision to found Russell Reynolds Associates on October 2nd, 1969.

"I was convinced I was going to be successful and failure never occurred to me. I'm a somewhat spiritual person and I felt I was being directed to do this and that it would be good for my family, for me and, hopefully, for my clients."

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Mr Reynolds invited an old friend, Lee Getz, to join him as a Partner and within a couple of months it became clear that the business would be a success. Early clients included Capital Research, General Foods and JP Morgan. In the firm's first full year it billed $550,000 and made a gross profit of $167,300.

"We were young, we were idealistic, reasonably well educated and optimistic.

Business was great."

In year two the firm billed $980,000 and "…I was beginning to get bored. I wondered what we should do as an encore and being completely nonanalytical I put my finger up to see which way the wind was blowing and it was blowing towards London."

Therefore, in 1973, Mr Reynolds flew to London. He spoke to friends working for McKinsey and Company and asked who the good London recruiters were. One of the names to be mentioned was Roy Bruce, then with Heidrick & Struggles.

"I called up Heidrick & Struggles and asked to speak with Mr Bruce. I was told that "…Mr Bruce is under the weather today…. You can reach him at home if you want to call him." The helpful switchboard operator provided the number.

Cristina Brett Rudy Trey Lever Stephens Hutter Reynolds Bruce Michael P Jane Thomas Russell S. Kathy E Beebe Kelly Barratt L McLane Reynolds, Jr Kohns Jeffrey Valerie Francesco von der Schulenberg Stogdale Santulin

Brad Barton Brono de Cintre Amy Le May

Ryan W Eckel

The Directorship Search Group

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Mr Reynolds called Mr Bruce, met him the next day and, having hit it off, invited him to Greenwich to meet Lee Getz, Hank Higdon and other associates. Russell Reynolds now had a London office.

At about this time Korn/Ferry approached Mr Reynolds. Lester Korn and Dick Ferry offered Mr Reynolds a position of Partner in New York, but Mr Reynolds felt that the objectives of Korn/Ferry did not mesh with his own personal beliefs.

"I wanted to build the world's best Search firm, and not the world's biggest.

It's a huge difference. I wanted to be the McKinsey of the Search business."

After London, the next offices to open were in Chicago and Houston and the rest is history. By the time Mr Reynolds left the firm it had achieved revenues of $96,000,000 and was a very close second to Korn/Ferry in terms of size.

So what was behind the decision to leave the firm he founded?

"I was travelling incessantly and it was tiring. Also, the firm had grown to such an extent that it didn't need me any more.

This became clear at an event I attended through our Paris office. A French client came up to me and didn't know who I was. When I told him my name he commented that he hadn't been aware that there was a Mr Russell Reynolds. I realised the company didn't need me anymore."

Mr Reynolds sold his share in the firm and limited his involvement to a consultancy contract. To keep himself busy, Mr Reynolds invested in "Directorship" - a high quality monthly publication and database dealing with corporate governance.

"I had a little trouble understanding that Mr Brown (Hob Brown, Mr Reynolds' successor at Russell Reynolds) and his partners really thought they could run the firm very nicely without my presence.

When this finally got through my thick skull, I realised that I was freer than I had anticipated and so I took a few seats on boards and developed a corporate governance consulting business at Directorship."

In mid-1999, Mr Reynolds' non-compete

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clause with Russell Reynolds was ended and he was ready to go back into the Search business. He achieved this through the merger with Michael Kelly Associates a boutique search firm based in New York City.

"Mike is a terrific guy. He has everything you need to be a search consultant and he is very charismatic. He picked my brain from time to time about the development of his business and we became very good friends. At one point he suggested that I go back into search. I thought this was crazy - I'm a Neanderthal - but at Directorship we have an advisory board that includes people like James Kinnear (former President and CEO, Texaco) and Harold Poling (Former Chairman and CEO, Ford Motor Company) and they agreed that I should get back into the business."

Once again, Mr Reynolds set about building an international Search business, but this time the first overseas office was in Paris, soon to be followed by London.

Directorship recruited Jeffrey von der Schulenburg to run its London office. A German-American national, Mr von den Schulenburg was a Partner at Korn/Ferry in London and had previously been with Russell Reynolds Associates as a recruiter in the London office. This followed by a year a tie up in Paris with Daniel Jouve President of Jouve and Associates and a former General Manager for Russell Reynolds Associates in Paris.

If Directorship is similar to Russell Reynolds Associates in terms of how it has been received in the market and the rapid international build up that it has achieved, it does have a number of differences.

One of these is size. Russell Reynolds Associates has continued to grow and now boasts 300 professionals working from more than 30 offices. Mr Reynolds believes that this scale of firm is not appropriate in the search business.

"I think that the optimum size for a search firm is 100 people. You want a business where everyone knows everyone else and, at that size, you can still run the business as a caring entity that puts relationships ahead of money. I think we will open maybe two or three more offices

over time - but not until the market improves."

The company also makes no claim to focus exclusively on "A-level" assignments.

"There is no pride or arrogance here.

We are not a firm that will say, 'We just work at the top level'. We will do whatever is important to the board and/or Chief Executive Officer and if that means that we have to go out and recruit a Harvard Business School graduate then that is what we will do. We have done several CEO assignments and a lot of work in private banking for people earning between $200,000 and $2,000,000, but most of our work, however, is for NEDs at $50,000 - $100,000 per year."

One assignment that was particularly successful was run on behalf of R.J. Reynolds Tobacco Holdings Inc., which used Directorship to recruit 4 directors after it was spun off - a feat achieved in 60 days.

On his return to the industry, Mr Reynolds was awarded the Gardner Heidrick award by the AESC. He remains a man of strong opinions, and used his acceptance speech to criticise a number of trends in the industry - including public ownership, discounted search fees and diversification. He does not believe that search firms should grow through acquisition and also feels that the Internet has only a limited role to play in the recruitment of senior people.

Even after 35 years in the business, Russ Reynolds demonstrates a tremendous passion for Executive Search. His opinions are expressed forcefully - but with humour. Patently very intelligent, he regularly uses self-depreciation to take the edge off remarks which could, otherwise, be considered arrogant. His commitment to training and the development of young blood is beyond reproach and there is no doubt that the search industry is better for his return.

www.search-consult.com

For more information, visit: Web:

www.directorship.com

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Women in Search

By Barbara Kwateng, search-consult Traditionally, female search professionals have been found in support functions, in secretarial or research roles. Although in the past decade the number of women found at top levels in search firms has increased, those making it to Chief Executive level in large global executive search firms is noticeably low. In this article we look at why this is so, whether it is indicative of a glass ceiling in executive search and how the balance can be changed. growing number of female search professionals in top positions are those who own or co-own their own firms. Janet Jones-Parker does just that; co- owns the company JonesParker/Starr which recruits office managing partners, practice leaders and principals for executive recruitment firms.

Having run the AESC, she is regarded by peers as one of search's female pioneers.

In 1973, together with her partner Anne Hyde, she appeared on American primetime television when Citibank hired her co-owned company, Management Woman Inc., to find a female VicePresident. At that time it was quite radical for a woman to be contracted to find a professional salaried for $100,000 (approximately $285,000 by today's standards) "Over the last three decades the landscape has totally changed" she explains.

"Back then there were really only a few

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women doing research and, at Handy Associates, a Harvard Business School graduate was the director of the research department." Also seen as a pioneer in search is Millie McCoy of Gould, McCoy & Chaddick. She was one of these women who started out in research at Handy Associates. "The search industry is more open to women, you are judged on your performance which is a major advantage".

The Association of Executive Search Consultants (AESC) points to its female membership level resting at 28% of 3430 consultants as symptomatic of these changing times. "Today, women are very successful in every sector specialization and are doing extremely well in search. I would like to say that women are taking

over search but that is not true. They are just being equally successful as men are and the doors are open" she continues.

Janet Jones- Parker believes that "clients have no problems talking to women".

Mary Pitsy of Boyden would go one step further, "clients and candidates both like talking to women. The ability to empathize is definitely called on when clients need advice on how to dismiss their Chief Financial Officer or how to change their board with tenacity. The executive search consultant is first and foremost a trusted adviser. Women are good at fulfilling this objective." As a Managing Director of Boyden in Belgium, she feels that "when women are good, they are usually better". Perhaps this is

Mary Pitsy

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less a case of prejudice within the ranks and more so "the challenge of fighting society's roles. You can be the best but this is still a battle that every female professional needs to win in order to be at the top".

A standard response to the fact that there is an imbalance between the numbers of women and men at the top of the search would be the challenges of society, i.e. having children. Superficially, it could be said that few females make it to CEO in large firms because they take a career break at a critical point in their career, concentrating on other things.

This break may be short or long yet the impact it makes on career development maybe lasting. According to Dale Winston, Chairwoman and CEO of Battalia Winston in the US "consultants compensation and value is based on their production. An extended leave of any sort will impact on production" and therefore chances of advancement. However, Ms. Winston feels that a search firm would be failing its female search professionals if it were "not to accommodate the needs which society places upon them".

Many search professionals point to the way in which the industry has developed as a reason for a low percentage of toplevel female search professionals. Gould, McCoy & Chadick Managing Director, Millie McCoy, would say, "the leadership positions, especially in the public firms are largely composed of industry professionals, of general managers. The fact is that there are not many women who come from that level back into the service industries. It's an evolutionary thing. Change will come about, essentially when industry's make- up changes". Birgitta Neuhauser, Managing Director of the Swedish search firm Neuhauser & Falck says, "Approximately 9/10 researchers are female. Perhaps this typecasts women into a supporting role in search; they're seen more as a researcher while their male counterparts are seen as consultants. When it comes to hiring a senior consultant, most firms choose between finding a consultant from another search firm and training a leader

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from industry. It's rare that a researcher is promoted". Despite valuable knowledge of the market, few women are rising above the researcher level into the upper echelons of search. The Executive Search Roundtable, presided over by Tory Clarke of Whitehead Mann, has 349 members in the United States. "Of these, 60% are involved in research. A massive 90% of this sector is made up of women".

It is argued that researchers and consultants bring varying skills which compliment each other but differ heavily from one another. This could be a reason why the predominantly female researchers do not make it to consultant level. However Tory Clarke believes that this should not always be the case.

“....approximately 9 out of 10 researchers are female.

Perhaps this typecasts women into a supporting role..�

"Central to the researcher's ability to advance is the possession of the right skills for their organization. Not every researcher is suitable for the role of a consultant in the same way that not every consultant could do a researcher's job."

Ms. Clarke continues by saying, "essentially, a researcher is responsible for undertaking a more tactical, reactive, process- driven task, ideally with welldefined parameters and a 'bumper- zone' between them and the client, in the form of consultant. The consultant is more proactive, opportunistic and client- facing.

Between these two roles lies a gray area in which both researchers and consultants work. The skills sets required do overlap. There should be no reason for a researcher to believe that they cannot make a successful consultant".

At least 4 of our interviewees followed this exact route, researcher to consultant.

Millie McCoy of Gould, McCoy & Chadick was one of the very first to do so. "It took years to move from research into

consultant role. It was extremely difficult.

I kept asking, eventually the founder of my first employer, Jack Handy (Handy Associates), gave me a chance to do a courtesy interview. I held up well." Ms. McCoy's opportunity came when "we got an upsurge in business. At the same time, a head of acquisitions for a British conglomerate came to Handy Associates's offices. No- one had any time for him so they asked me to work with him. He needed a white paper written on an industry segment which he was interested in. I helped him write the paper. He went out, acquired a company and came back to me to do the search for the President. My very first search was for a CEO. The firm had to let me continue doing searches. My advice is to wait for an opportunity, then you seize it".

Another woman who has made precisely this progression is Valerie Baxendale, a consultant at Boyden in Brussels. After 2 years working in research at Boyden in London, she rose to Junior Consultant and now Consultant level. Ms. Baxendale believes that the distribution of female search professionals is "not a clear cut gender issue. The top levels of search are often comprised of those coming from outside of the industry.

The more senior female executives in all

Tory Clarke

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Janet Jones Parkers / Valerie Baxendale industries there are, the greater the number of high- ranking female search professionals. It is as simple as that".

Having started out as a Researcher at Boyden in London, she "made sure that everyone in the firm understood that I was willing to do more. I was inspired by 2/ 3 mentors who could see that I wanted to do more and pushed me in the right direction. I often went to client meetings on my own. Some of my colleagues at that time wouldn't work with a new consultant because that would involve working on comparatively junior assignments. The reality is that for Chief Executive level search, the step from Researcher to Consultant is very large.

Those doing lower level search may find that they receive greater responsibility sooner, making the transition to Consultant easier and a promotion that much quicker."

Also inspired by a mentor was Maureen Alphonse- Charles, Senior Vice President for Management and Development at J. Robert Scott, a wholly owned subsidiary of Fidelity Investments. After joining Pendleton James (now Whitehead Mann Pendleton James) in 1994 as an associate, Ms. Alphonse- Charles left the firm as a Partner earlier this year. ""I did have industry background, having worked for the Swiss Bank Corporation, Putnam and a women's own investment firm. Yet I really felt that my career took off under the mentorship of Andy Hunter, the CEO of Whitehead Mann Pendleton James. There I moved from research into candidate development from where I started grooming business relationships. After a point, I was bringing in my own searches.

This then evolved into running my own segment within financial services. I went on to join J. Robert Scott which offered the opportunity to grow professionally and

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personally which should be a priority for any professional."

The scenario has somewhat changed since as Dale Winston says, "when it was an advantage to have an androgynous name like mine". Those search firms with women consultants "...were, in this respect, progressive for the times". Today Ms. Winston believes that "if there is a glass ceiling for female search professionals, it is self-imposed". This is in contrast to Birgitta Neuhauser's belief that "glass ceilings do exist in search. It is difficult for a female to get to the top executive recruitment positions. When you get to a certain level, it does become an issue that you just don't belong to the boy's club. But this is slowly changing as the boards of directors are represented by a younger age group." Ms. Winston believes that one of the reasons that there are not a lot of women prominent in senior management roles is because "there are not a lot of females prepared to make the sacrifices to reach these positions". Janet Jones- Parker echoes this. "One might say that no major search firm is run by a woman but I believe that this is because women do not want to manage and run. They like the business want the flexibility and control over their lives but do not want to manage a firm and deal with what that means".

However, Janet Jones- Parker, as a recruiter of recruiters, does not believe that this is gender specific. "Few men want to run a firm either. It is difficult to find a search consultant who is willing to run an office let alone a firm".

All of the mentioned women enjoy successful careers and at the same time, all have a family. "The central key is good organization. If you are well organized, good in your profession, then you will unequivocally receive merit. The more valued you are, the steadier the advancement. Not only is it important to know when to delegate, it is also important to inspire your peers and to create an effect where your presence is positive" believes Mary Pitsy. At Boyden in Belgium where she is Managing Director, the proportion of male to female

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consultants lies at 50-50. For Sweden's Neuhauser & Falck, this lies at 1 male and 4 female consultants and at JonesParker/ Starr. Ms. Jones- Parker co-runs a firm with a 50- 50 split between male and female consultants.

Neuhauser & Falck founder, Birgitta Neuhauser, advises young search professionals to "first and foremost, make sure you have a good teacher". She believes it goes without saying that a young search professional needs to "be very careful in every step. Make sure you always do your homework before going to see a client. Equally important are you candidates. Always give them feedback in a positive way. Make sure you leave them with a good impression. You never know when you may be facing a rejected candidate as a client". Ms. Neuhauser would also state "you need to have a very high level of integrity so that it can never be questioned. Be kind to your clients and candidates alike without being too familiar. At Neuhauser & Falck, we never use first names with our clients or candidates."

“"...it is very important

search reflects society's make up.� that

Millie McCoy would suggest, "in larger search firms, you're going to have similar sorts of problems that you would be exposed to in a corporation. My advice is that if you're having difficulty climbing the corporate ladder in one of these larger firms, get with a smaller one. A plus about this profession is that you can be very successful in a small search firm." Janet Jones- Parker gives a similar line. "Learn all that you can in your current firm. Then ask for advancement to acquire knowledge and exposure for the next level. If this is constantly denied, move on to another firm. Make sure that there are opportunities for advancement at your new firm. Move on to move up."

Valerie Baxendale believes that the young search professional should "keep at

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it, be ambitious. Build up your credibility by mastering other skills whether that be specialist sector knowledge, languages or otherwise. In this way you raise your profile and make yourself interesting to the powers that be. What is extremely important is to bring in clients. If you cannot do this, you won't be taken seriously and will always remain in a support role".

Dale Winston echoes this. "A consultant is evaluated on the level of production not on soft skills. You need to be producing business and executing searches constantly. The key to success is developing clients. If your clients value you then you will be at the top of your profession".

If a female search professional does feel that there are barriers to her advancement on gender grounds, another avenue could be to join a female led firm. Ms. Winston explains that her "firm is gender neutral.

Any consultant would be foolish to join us with conflicting values".

Through this Battalia Winston regards itself as "not having a glass ceiling by any stretch of the imagination". Boyden's Mary Pitsy supports this "with a woman as a Managing Partner, it is easier to regulate equal opportunities throughout the firm".

Maureen Alphonse- Charles goes back to the theme of mentorship and visibility as key to progressing within a firm. "It is just as important to have a mentor within search as one outside. The best way to find mentors from outside is by joining a network or association of a sort. The old boys' network is often blamed for keeping women out of the very top management positions. If we realize the strength of this, then we should understand the benefit of any network. I myself am part of informal networks of women. There are organizations which have search as part of the group like the Boston Club and Women in Business. The Partnership focuses exclusively on providing mentors and a network for people of color, especially those who are at executive levels within their organizations".

But are such organizations such a good idea?

Amongst female search

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Maureen Alphonse professionals, it is often argued that you should be a professional first and foremost, irrespective of gender. Yet Ms. Alphonse- Charles does not agree. "I always want to be known for the quality of my work, more than anything else. I am a search professional and I am a woman of color. I can't disguise or separate these facts. It's almost part of the package. I would join organizations that empower women. I am fully aware of the challenges which we face and that there is power in numbers". Over and above this, Maureen Alphonse- Charles sees huge importance in "helping others. By coming together and having discussions which are candid, we can pass the lessons which we have learned to others. I know that I have got where I am today by learning from others.

It's important that I give others this chance too".

The associations point seems to be a crucial one. Belonging to an organization of a sort provides the professional with a support network, helps the professional to help others and raises visibility and profile. Like Ms Alphonse-Charles, many of the other women we spoke to are members of industry organizations. For example, Mary Pitsy is a member of the Belgian Executive Search Association (BEXSA) and coaches M.B.A. students at the Solvay Business School and Birgitta

Neuhauser belongs to Executive Search Konsulter (ESK or Swedish Executive Search Association).

The participants all believe that change is continuing and that the search industry will become much more diverse. All agree that a woman in leadership positions resonates throughout the firm and impacts on the make- up of the search company. It may also be the landscape of other industries which determine how quickly this change comes about. The trend seems to be CEO's with management experience which doesn't necessarily involve search.

The more women who have top credentials and come from outside the industry into search, the quicker the distribution will tilt in favor of a diverse search workforce.

All our interviewees came recommended for the important part they play in executive search. They were: ● Valerie Baxendale: Boyden Global Executive Search ● Maureen Alphonse-Charles: J. Robert Scott ● Tory Clarke: Whitehead MannExecutive Search Round table ● Mary Pitsy: Boyden Global Executive Search ● Janet Jones- Parker: Jones-Parker/Starr ● Millie McCoy: Gould, McCoy & Chadick ● Birgitta Neuhauser: Neuhauser & Falck ● Dale Winston: Battalia Winston In addition to our interviewees, some women in search who were labeled as "influential" include: ● J. Veronica Biggins: Heidrick & Struggles ● Ulla Hilding: Éligo AB ● Brigitte Lemercier: Russell Reynolds ● Anna Mann: Whitehead Mann ● Marnie McBride: Spencer Stuart ● Jana Rich: Korn/Ferry International ● Phillipa Rose: The Rose Partnership ● Rae Sedel: Russell Reynolds ● Judith von Seldeneck: Diversified Search Companies www.search-consult.com

For more information, visit: Web:

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Increasing diversity in your business Search firms with discrepancies in their make- up should consult the Coopers & Lybrand (now PricewaterhouseCoopers) 1997 report entitled the 'Trendsetter Barometer'. Having interviewed CEO's of 427 of the fastest growing product and service companies, it found "The diversity issue has

“....more than half of America's fastest growing companies cite diversity

in their management teams as a factor important to their business growth..” briskly climbed the corporate ladder of importance to become an indicator of a firm's prosperity." It found that "more than half of America's fastest growing companies cite diversity in their management teams as a factor important to their business growth". James P. Haynes, then partner and director of the firm's diversity practice, believes that "CEOs who acknowledge the importance of women and minorities on their management teams appear to be leading the more progressive and productive growth firms".

With her experience of consulting companies on diversity issues, J. Robert Scott's Maureen AlphonseCharles couldn't agree more "It is always of highest importance to make sure that top performers get

the job. However, I believe that it benefits clients and us internally when we have a more balanced team. It brings a deeper level of creativity to the firm and ultimately enhances its performance. There is a very fine line which you need to walk; I'm not talking about focusing on affirmative action. Rather widening your lens and that of the client".

Millie McCoy also firmly believes that as a Managing Director and co-founder, there is a responsibility to ensure equality within her firm. "We are very diverse, not just on a gender basis but also racially. We've always been very proud of this. Within the last decade, clients have developed a greater awareness of the needing to build diversity within their executive ranks. This was not just a result of governmental pressure but also study statistics. Diversity reflects society".

Ms. McCoy has seen the impact

“....In the last 5 years

43% of our searches have been filled by a woman or minority..” that diversity makes on a client. A few years ago, I put together a pitch for a Chief Technical Officer for a Fortune 500 company. They requested our diversity statistics which we then trawled through our database to collect the data for this potential client. In fact, we won the

search and as we weren't specialists in CTO's, I was interested to know what put us over the edge. What we were told that is that we had the best diversity statistics. We now keep such statistics which has taught us a lot about ourselves. It's quite amazing; in the last 5 years, 43% of our searches have been

“search should only

talents, gifts and knowledge of consultants who serve clients successfully...”

reflect the

filled by a woman or minority. This is clear evidence of the importance of diversity to clients".

Janet Jones- Parker believes that "search should only reflect the talents, gifts and knowledge of consultants who serve clients successfully." Tory Clarke, however, sees things differently. "In short, it is very important that search reflects society's make- up." Based in America, Ms. Clarke sees that "the US workforce is changing rapidly and irrevocably. Companies which do not reflect this will soon be seen as old fashioned. Diversity takes many forms, it may be represented by color, and it could be typified by gender. A more diverse workforce offers widens the company's views and reflects the customer base. It will be the diverse companies who will lead the way".

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FOSTER PARTNERS From its roots in a public accounting firm, Foster Partners has developed into a search business with some ideas which go against the industry norm. Dwight Foster talks to Jason Starr in an exclusive interview for search-consult. oster Partners is the successor practice to KPMG US Executive Search. KPMG (then Peat Marwick Mitchell & CO) had offered executive search services since 1962 but was hampered in its growth by substantial client blockage with the accounting firm's audit client base and the independence requirements of the Securities & Exchange Commission (the SEC). In 1978, all of the US public accounting firms agreed to a voluntary proscription of services to their SEC registered clients.

KPMG continued to provide services under this limitation until 1990.

Dwight E. Foster, the National Partnerin Charge of the U.S. Executive Search practice took early retirement from KPMG and organized the buy-out of the search business. This took place in December 1989. From this, Foster Partners LP was created and this firm began its operations on January 2, 1990. At the end of 1992 Foster Partners converted from a partnership firm to a Delaware Corporation. The converted firm's legal name is D.E. Foster Partners but the business is known in the market as Foster Partners.

An early objective of Foster Partners was to provide global coverage for multinational clients. An initial step in achieving this was to organize in-bound and out-bound alliances with overseas KPMG offices. Over time these relationships have been replaced with links to strong single discipline

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independent executive search firms.

Foster believed that this was necessary as he felt that some of the overseas KPMG practices were heavily 'advertised selection' oriented and uncomfortable with the direct recruitment approach preferred by his business' clients.

"We realized that demanding global clients wanted more than advertised selection and cursory file search approaches to fill critical needs."

By the end of 1998, Foster Partners had set up alliances with executive search firms in 38 countries. In 1999, however, the firm began to explore the option of taking on partners under a different type of relationship - the licence relationship.

Foster explains the difference between the two types of partnership. "Firms in alliance relationships basically have a quid pro quo on business referrals.

Licensees have an exclusivity arrangement to use our name and process, in return for a licensing fee which is paid to us quarterly. Both the alliance and licensee relationships have agreed to operate within the policy and practice guidelines set out in the Foster Partners Practice Guide."

Dwight Foster

The first firm to join the group under a licencee arrangement was Foster Partners Asia which was created in the spring of 1999 by Trevor McCormick, a KPMG veteran. FP Asia is headquartered in Hong Kong and serves the management recruitment needs of multi-national clients in Beijing, Shanghai, Singapore, and Malaysia. "FP Asia's business mix has changed dramatically.in its three year history" said Foster. "At its inception in spring 1999 inception, FP Asia was serving automotive, e-commerce, telecommunications, high technology, and OEM components sector. These segments have little demand at this time.

Today, FP Asia is prospering in the energy, medical equipment, and investment banking sectors. At a time when the global demand for investment bankers is weak, there is a heavy demand for US trained Chinese investment bankers to return to China."

In the UK, Foster Partners appointed Copley/Wall as their local alliance partners on an exclusive basis.

Discussions with a major pan-European retained Search firm are ongoing.

Foster Partners has also entered into licensing relationships in the US with CP Johnson & Associates in Minneapolis (Chris Johnson is a former KPMG executive search consultant), Reffett & Associates in Seattle, a well regarded specialty retailing firm and, most recently, Daubenspeck & Associates - an IT specialist in Chicago. Reffett have since expanded their operations and now also boast the Foster Partners license for Charlotte.

The group aims to develop synergies via bi-weekly telephone conference between offices and through periodic national meetings - the most recent of

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which took place at the end of 2000 at the Glen Cove Conference Centre in New York. This effort has paid off - for example, consultants from Washington, Minneapolis, New York, and Seattle are working closely on a national initiative for the 'not for profit' and trade association sectors and as a group have developed an impressive client list.

This partnership is fairly typical of the relationships which have sprung up across the group; For example, Gail Amsterdam in the New York office, works closely with Bill Reffett of Seattle on retail assignments -- one of the firm's strengths.

In developing the group's culture, Foster has introduced some policies on billing which go against the norm in the industry. With the exception of the retail practice, fee structures in the group tend to be based around fixed 'project fees' rather that a percentage of total compensation. He explains "‌this goes back to our roots in public accounting and a desire to be objective. Where is our objectivity if we are advising the client to pay more aggressively when it also

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influences our fee?". The policy on equity payments is equally strident. No firm in the network will accept such compensation "We do not accept payment in equity or warrants. We believe that any firm that has pursued that practice will have some serious risk exposure in their balance sheets."

Foster Partners does not participate in contingent fee recruiting, however the business does undertake a large amount of what Foster refers to as "Pipeline recruiting". This is where the business undertakes a retained assignment for a client who requires a number of people in similar disciplines. "An example of this would be a retail client for whom we recruited a series of Merchandising Managers over a period of three years. It also happens a lot in investment banking - and when it does happen we will look to negotiate an additional fee on the basis of the increased value to the client."

Foster believes that the focus on developing his business through the recruitment of additional licencees and allies is vital - he does not believe that

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he can rely on the KPMG association alone.

"The KPMG relationship has to be less formalized because of the independence scrutiny of the SEC. We are allies of and we lease space from KPMG but, at the end of the day, Foster Partners is required to independently develop its clientele. Other firms don't sell your business for you. We have to go out and win business as if KPMG did not exist."

In summing up, Foster added, "Foster Partners started business with a high services orientation, public accounting firm standards of processes, documentation and professionalism. We are gathering likeminded boutique firms to join us in a global, "one firm" client services delivery methodology. We ask ourselves the same question at the end of each week: How big can an executive search firm become before it gets bad?"

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For more information, visit: Web:

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EXECUTIVE SEARCH: The Brussels Debate search-consult, in association with Dillistone Systems, are proud to introduce the latest in our series of Executive Search Debates. The Brussels event takes place at the Brussels Park Atrium, Rue des Colonies 11, Brussels, 1000 Belgium on 24 October 2001 from 9:00 a.m. Speakers include: Robert Brodsky - Secretary General Belgium Executive Search Association Mary Pitsy oude Hendrikman - Managing Director Boyden Global Executive Search Anders Borg - President Hansar International Etienne Reeners - Managing Partner Hightech Partners ITP Marc Swaels - Managing Vice President, Management Assesment Practice Korn/Ferry International Europe Alexandre Paternotte de la VaillĂŠe - Managing Partner Stuckens, Paternotte Eurosearch

Attendence is free but by ticket only - to apply for a ticket, visit www.search-consult.com call the the Marketing Department on +44 20 7749 6100 e-mail debates2001@search-consult.com Exclusive coverage of the event will be provided in the following issue of search-consult magazine.

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Ray & Berndtson

the Netherlands in

By Barbara Kwateng, search-consult he Dutch office of Ray & Berndston, is one of the leading search firms by revenue and has plans to consolidate its market share. Having been an acquisition target for an international firm as recently as last year, the company still remains firmly a part of the Ray & Berndtson group. Talking to Managing Partner Roger Bekius and Partner Daan Steenbergen, we find out about Ray & Berndtson's assignments referral process, employee-employer relations and look at their predictions for search in the Netherlands.

Ray & Berndtson has 47 offices in 31 countries with global revenues totalling $176 Million. Repeat business contributes to this figure (80-85% of clients come back with more assignments) and 15% of their turnover is derived from referred assignments. Clearly, this is an important part of the firm's business. Whilst how fees are split for referred assignments is a part of company global policy, the client's wishes and the level of the search dictate how the referred assignment itself will be done, says Managing Partner Roger Bekius. "The Dutch clients may approach us in the Netherlands, as their local Ray & Berndtson office, in order to find a new Chief Financial Officer to be based in the United States. The normal procedure is that the referring consultant, i.e. the Dutch consultant, would play a minimal

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“....Both the referring consultant and the lead consultant who actually completes the search

benefit through the referral fee scheme.� part in the execution of the search. In usual cases, the Dutch consultant would pass the assignment on to his/her American colleagues".

However "sometimes the client wants the referring consultant to play a pivotal part in the search. Our partner firm, say in the US, may have a shortlist of 4 or 5 candidates, yet the client firm wants us here in the Netherlands to see these candidates before they are presented to them. They may feel that we understand their company culture better. Our advice to clients is however that the partner firm is best placed to lead and execute the search as they understand the local culture and can search better for the perfect candidate".

Both the referring consultant and the lead consultant who actually completes the search benefit from through the referral fee scheme. This acts as an encouragement to share and pass on

work, when necessary. Fellow partner Daan Steenbergen therefore believes that "a client's interests are always best at heart" as there are no arguments over who is going to do the search. There are two policies for fee splitting as Roger Bekius, Managing Partner explains. "If the search is inter-regional, e.g. from the United States to France, then the referral fee will be of 20% of the final fee. If this referral leads to other assignments, then we remain flexible. A sliding fee scale is negotiated between those who are involved.". Therefore the referring consultant will benefit if the client starts a lasting relationship with his/her colleague in a different region.

The holding company also benefits from this interactivity between regional offices. Executive Search International, or 'ESI' as it is known receives 5% of the final fee. This goes towards consolidating the company's infrastructure. Bekius informs "This money contributes to the costs involved in marketing activities, opening new offices and such like".

Inter-regional referring may be a feature of business yet it is probably less so than passing on assignments within a region, e.g. from European to European office. To reflect this, the referral fee level is somewhat different. "If we were to pass an assignment to our German colleagues, for example, we would

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Dan Steenbergen receive one-off percentage of the fee.

This would amount to 20% of the fee for the first assignment which our German partners complete for the client only," says the Managing Partner.

Amongst the 175 searches that the Dutch arm of Ray & Berndtson completes per year, there are those that call for what Bekius terms as "international team-based outlook". There are occasions however when no fee is levied between offices. This is when research resources are shared. The policy is quite exact; when another office requires research totaling less than 8 hours, this is free of charge. When this is exceeded, then a fee applies. However, Bekius says that the reality of this is quite different. "We normally don't start billing our partners for research resources for less than 1-2 days of time spent working on their assignments". Steenbergen elaborates "when it becomes more serious, for example when our research consultants spend a week working on an assignment for our UK colleagues, then we start billing at a negotiated level."

Just as maintaining good relations between offices require diplomacy, so does the topic of employer-employee relations. The research resources come into the equation of cross-border assignments as well as the Dutch office's employee retention and motivation

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strategy. Surprisingly, however, as far as researchers are concerned, Roger Bekius says, "there are no promotions from within. Research consultants remain research consultants. We are clear about this from the outset. During the interview stage, we make sure that our potential researchers are well aware of this".

Therefore those ambitious researchers at Ray & Berndtson in the Netherlands have little chance of ever making it to consultant level. The company simply prefers to recruit its consultants from outside. Some in the industry argue progression from researcher to consultant is a good investment in continuity as well as succession planning. On the other hand, Bekius and Steenbergen believe that consultants are more effective when they come from outside the firm. Daan Steenbergen points to two types of researchers at Ray & Berndtson in the Netherlands. "There are those for whom researching is a career. They are often in their late '30's to mid- '40's. They do not want commercial responsibility, rather their priorities include working in a good team in a pleasant cultural environment".

In addition to these career researchers, there are definitely those researchers, perhaps on the whole younger, who are highly ambitious and for whom researching is only the beginning of their career. Steenbergen believes that the firm has a responsibility to these types of researchers. "We try to keep them happy for 2 to 3 years. We have a very open set up here which may surprise some of our competitors. When our ambitious researchers have grown out of their role, they come into our offices and say 'I'm considering leaving, what's the best advice you can offer me'. It doesn't have an impact on their bonuses or the way they are treated. We want to coach them.

Sometimes we introduce them to our client firms".

Does this not cause a conflict of interest? No, believes Steenbergen. "We don't make any placements there, no fees are levied. We may merely introduce a researcher to a client. They have to do the rest of the work". The researchers

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may feel motivated to perform well not just on the basis of internal benefits, e.g. promotion within the research ranks from researcher to senior researcher. They are also encouraged by the fact that their performance plays a part in finding another job through Ray & Berndtson.

It is a two way street: from search to industry and, at the upper levels of Ray & Berndtson, from industry to search.

"Some of recent consultant hirings have come from outside the industry. It takes 6-9 months for them to become fully operational". Bekius dismisses the disadvantages of high costs incurred whilst waiting for these consultants to produce revenue. Instead he sees the benefit of "their seniority and skills which can be applied to search".

The industry to search route is the background of one of Ray & Berndtson Netherlands newest partners, Bert Hondebrink. Previously, he was Senior Vice President for Ventures and Ebusiness at i2 Technologies, following a career at Phillips as worldwide Senior Vice President for global e-commerce business. Perhaps one of the reasons why Roger Bekius is not worried about the start-up costs involved in hiring consultants without search experience is that the firm believes that it is "not primarily short-term sales driven".

Although the firm has an idea of what they want to accomplish over the year,

Roger Bekius

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their consultants "do not have fixed sales targets" explains Bekius. "We believe this is a long-term business of relationship building, not a short-term, one-off sales business. We consider it to be important that senior consultants have senior level relationships with prospective and existing clients. I always say that I have some clients that are not even aware that they are my clients yet!"

"We don't get nervous if our consultants have a close relationship with a potential client for 2 years without ever having won an assignment with them. It's all about building up trust. If you're active in the market and continuously building up trust, then this potential client will come to you with their most discreet search when the time is right. This may be in 6 months, 1 year or 3 years," continues Bekius.

The firm has 11 consultants, of whom 4 are partners, all building up trusted relationships with existing clients. Of those 3 are part-time consultants, a part of the company's strategy. Partner, Daan Steenbergen, feels strongly that these part-time consultants "excel in their profession". He dismisses any claims that this is an enlightened approach. "They happen to be all mothers who do a top job and make an crucial contribution to the organization. They co-ordinate this with other things they do".

There is a clear existence of global policy at Ray & Berndtson when it comes to splitting fees of referred assignments.

However does this global concept extend to company culture? This question is central to the company's philosophy. Last year, during an acquisition trial with an international competitor, Ray & Berndtson in the Netherlands completed an analysis on the existence of a global company culture within the firm. "I spoke to partners who came to Ray & Berndtson from other leading firms. These included partners coming from across the world who had left international competitors to join us. The survey included in depth telephone interviews about why these professionals joined our group. I questioned what their ideas on culture

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were, comparing and contrasting them with their previous employers".

"My findings were very interesting and provided an insightful angle on how our company culture works. Among the results, we found that Ray & Berndtson does have a clear global culture. Our fundamentals are based on professionalism and friendship. The ideals we hold mirrored those held by partners around the world within the firm," tells Roger Bekius.

A global strategy for Ray & Berndtson has evidently been to widen the scope of services offered. The immediate future, believe these two partners, is a little uncertain at present. The effects of this period will mean a reform in search firms.

"The quality and client focus will be sharpened somewhat dramatically. In the next 5 years, there are going to be a lot of changes. Those who survive this reorganization will produce a broad range of services to their clients" believes Daan Steenbergen. He feels that this will be a matter for every search economy,

“....We don't normally start billing our partners for

for less than 1-2 days of time spent..�

research resources

especially in the Netherlands.

"We believe that pre-search and postsearch services will become as important as the assignment itself," continues Steenbergen. "Retention is going to become an ever more important issue".

Ray & Berndtson in the Netherlands is gearing up to meet this aim. "We are about to launch a new business range offering management audits and team coaching. Our consultant Majorie Soeters has just completed a postgraduate diploma in management coaching. She will be part of the coaching division which will be handling assignments at individual and team levels," Bekius adds.

This development, they believe is

crucial because "organizations are changing faster than ever before, moving from one type of core business to another". The trigger has undoubtedly been e-business and the way it has revolutionized the way people work. In his capacity as partner leading assignments in consumer goods and for service companies, Steenbergen has witnessed the impact of e-business on traditional business cultures. "Our plan is to help companies and talent to work whose culture is unfamiliar. We want these 'culturally unfamiliar' people to assimilate into the company well. This benefits candidates and clients alike."

As well as concentrating on emerging services, the firm is also aligning itself along the Netherlands' growing industries says Ray & Berndtson partner Daan Steenbergen.

"Professional services, biotech and the leisure industry are going through a mini-boom at present. Increases in search for the leisure industry are largely attributable to the fact that the average working week compromises of 38 hours in the Netherlands. Dutch people simply have more time on their hands which is pushing up growth rates in leisure. They need good senior management to make this work ".

Managing Partner Bekius expects things to pick up in other areas of search too. "We expect to see the return of the technology sector in the first quarter of 2002. As well as in the new economy industries, we predict a boom in search for privatized industries, for example energy and utilities. Traditional public sectors like healthcare, government and education need another style of governance to ensure that they are more customer-oriented. This is where demand for search will come in. They require the benefit of our private knowledge to improve public institutions".

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The Role of

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Strategic Board Recruiting

By Susan F. Shultz

Adapted exclusively for search-consult from "The Board Book" (Amacom www.ssaexec.com) t is ironic that the one group, the board of directors, with the most power to influence the company, is the one group often randomly selected, rarely evaluated and almost never held accountable. As we search consultants know, if you get the people right, good governance will follow. A board's power is a function of its directors and how they are chosen. You can have any kind of process, intent and leadership, but without the right people, it doesn't matter.

As understanding of the importance of boards escalates, the process by which directors are selected becomes critical. In The Board Book (AMACOM), the "failure to recruit strategically" is the first and most critical of the most common 10 impediments to strategic boards. Analysts know this and pay a premium of 20% for good governance. 他 of Institutional

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investors worldwide rank governance on a par with the numbers when evaluating companies.

Boards used to be largely gentlemen's clubs assembled to reward large shareholders and loyal friends and managers. Still today, Boards often are little more than cheering sections who favor whatever management wants to do.

The overwhelming majority of directors are networked onto a board, usually by the CEO, too often as an afterthought.

As good governance gains favor, the process is moving to strategic recruiting.

Board membership is no longer just a reward for `making it' 74 percent of U.S. companies have nominating committees made up of independent directors who guide, if not lead, the process.

This includes determining what the needs are, overseeing the process and extending the offer to serve. Increasingly, boards are engaging search firms to validate the process and proactively access the best.

As search firms, we are positioned to add extraordinary value. Here are the steps for strategic recruiting.

1. Create a board charter.

2. Create a needs matrix.

3. Develop a measurable profile for each director slot.

4. Recruit proactively to each profile.

5. Interview and reference potential directors in the context of your board.

6. Provide comprehensive orientation.

7. Recruit in a continuum.

1. Create a board charter. (Corporate governance guidelines). Define what the board wants to accomplish and how it will be measured. Will the board offer occasional advice to generally maintain the status quo or will it be independent, engaged, and a real contributor to the success and strategy of the company?

Outline the structure. For example, how often will the board meet? Who will select the directors? What will the size be? Will directors contribute beyond the meetings?

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Is there a term of office? What's the compensation? Will there be equity?

What committees will there be?

Will there be a strategic planning retreat each year?

Will it be a statutory or advisory board?

In other words, will the directors hire and fire the CEO or will the CEO hire and fire the directors? How will the success of the directors be measured? Perhaps, an international advisory board is the assignment with a broader mission.

2. Create a needs matrix.

Once the charter is clarified, the next step is to prioritize the strategic issues, the critical needs going forward. What are the key business metrics, for instance, technology, building alliances, international expansion, merchandising, government access, e commerce, human capital, diversity, distribution, exit strategies. Evaluate the strategic plan and what the company will look like in the future. What expertise, what attributes and access will move the company to that future?

Critical needs might include: ● Merger and acquisition experience with a strong financial background. ● Technology vision to help see what technology can do for the company ● Strategic planning. ● A proven marketing leader with contacts to accelerate alliances. ● Operations experience to guide the company's growth. ● Diversity to reflect and respond to the constituencies of the future. ● Expertise in human relations - to help

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recruit board members, implement evaluation, and guide succession planning.

Remember, this is an extraordinary opportunity to gain valuable expertise not otherwise available - or affordable Once the needs matrix is detailed, the next important step is to Define the current board members in the context of the needs matrix. What is the company's bench strength? And, where are the needs going forward that are not addressed by the current directors?

3. Develop a measurable profile for each director slot once a charter and need matrix are defined. Specify expectations of each board member. In other words, give the same attention to recruiting a board member as to recruiting the most important manager, the chief executive officer, the marketing director, or the chief technology officer. How will the directors be measured? What will constitute success? What specifically will they bring to the table?

4. Recruit proactively to each profile.

Throw a very broad net. .Access the widest possible candidate base and validate the board to prospective candidates. Just as in a more traditional assignment, identify the three key elements of the board opportunity that will attract them. Why specifically will the prospective director want to serve? In our experience, the pivotal general considerations are liability, the board's independence and validity, the management, the business model, and the other directors. ● We find that chairmen and CEOs repeatedly are astounded at the level of individual willing to serve if approached in the right way.

5. Interview potential directors in context of the board. What strengths will they bring? How will they contribute?

Pose experiential questions in the context of the critical issues, so you can learn.

How will they add value? To which committees would they make the best contribution? Audit, governance, strategic planning?. Will they represent all the others who are not at the table? For

instance, ask what strategic initiatives would they suggest? How did they participate on other boards? What is their view of marketing options? What do they think about the business model? How do they evaluate the management? What role do they feel is appropriate for a director?

Yes, look at expertise, access, experience, and relevancy. But also consider scope, culture, and the soft qualities. These are the intangibles that make the board and the company the best it can be - and that buffer the company from self dealings A few other points: ● Every director votes on every issue.

They fail their fiduciary duty if they follow the lead of the "expert. If the audit committee report is on the table, even if another director is a CPA who heads the audit committee, each director must do more than follow that director's lead. Her vote carries equal weight and she is equally responsible and liable. ● Consider time availability. The average director devotes 12 to 20 days per board per year. Consider carefully the value and trade offs of over boarded, "marquis" directors. Think 2 to 3 outside directorships for employed directors and 5 to 6 for full time directors. ● Vint Cerf, WorldCom inventor of the internet, sits on 15 boards. Vernon Jordan, Lazard Freres, sits on 8 Fortune 500s. ● Remember that every person you recruit is a reason for others to stay or stay away. ● The only person who won't serve is the one you don't ask. ● Look for people who will elevate the caliber of the board 6. Reference in the context of the board. Consider balance and culture.

Pose scenarios. A powerful, decisive CEO will not necessarily be a good team player on a board, listening and brainstorming.

What is he like on other boards? Does he monopolize the dialogue? Is he prepared with thoughtful questions for discussion?

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Profile Susan F. Shultz is a recognized governance expert, speaking and writing on the competitive advantages of strategic boards and leading the governance practice of SSA Executive Search.

Recent engagements include Management Action Program's CEO Forum, Dallas; The Management Association, Milwaukee; the American

Susan F. Shultz

Or does he sit there quietly, never saying anything. Several CEOs have described such directors with outstanding credentials whose total contribution is silence. What is the attendance record of the prospect?

7. Comprehensive orientation.

As director responsibilities escalates, expecially in the area of audit and governance practices, a comprehensive, candid orientation is increasingly vital. In addition to learning the numbers and the business model, there are a number of ways to engage directors in corporate business. Pepsi sends its board members out for a day. Home Depot expects its directors to visit and assess 20 stores each year.

8. Finally, recruit in a continuum. Keep the matrix in mind and maintain a list of prospects tied to the company's future.

Bethlehem Steel is an example of a company that relies on a director matrix and maintains a confidential prospect list that it continually refines.

The most difficult thing to do around the entire governance issue is to "fire" a director. Why not invest in the process

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instead of a failure? Great boards reflect great companies, and search firms can

Management Association Executive Forum, Chicago; The American Society of Corporate Secretaries, Phoenix and The Royal College, London (March 2001).

Ms. Shultz established SSA Executive Search International, Ltd., in 1981. SSA conducts searches locally, nationally and internationally, and has affiliates throughout the world.

Ms Shultz may be contacted via email at susanshultz@ssaexec.com.

Her book, "The Board Book" is available from the search-consult bookshop (www.searchconsult.com) or from the SSA Executive Search website (www.ssaexec.com). play a pivotal role in driving the trend to good governance.

ADVERTISING IN search-consult From November, search-consult will be circulated to buyers of executive recruitment services in the US, UK and continental Europe.

Advertising opportunities are available contact Jason Starr or Carol Crawford on +44 20 7749 6102 or e-mail enquiries@search-consult.com to discuss your needs further.

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search in

South Africa

By Barbara Kwateng, search-consult outh Africa is often regarded as the only search economy on the African continent. From Johannesburg, international companies conclude search assignments placing candidates as far as the Middle East. In 1994, the six leading firms by revenue together collected $7.1 million in total revenues (source Economist Intelligence Unit). Search firms in South Africa have changed since 1994, not least because this was the year of the first democratic elections. In a recent article in South Africa's 'Financial Mail', it was quoted that one out of ten executive positions in South Africa is unfilled "because a suitably skilled and experienced candidate could not be found".

We look at why this is the case, what the main search issues are in South Africa and which African economies could burgeon a new search market.

There are 3 different types of search firms in South Africa and can be classified as first, second and third generation. The first-generation search consultancies "rely almost entirely on their contacts in the market or the traditional 'old boy' network" says Dr. Trevor Woodburn of Woodburn Mann. "The second-generation search consultancies are those who rely on computerised databases. These are mainly as boutiques or functional specialist companies." The third generation search consultancies use of a combination of their networks and databases. Extensive use is made of research methodologies to identify the candidates regionally,

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nationally or internationally.

These third generation search consultancies are largely made up by major multinational firms present in South Africa.

They include Whitehead Mann Group Plc (Woodburn Mann), Heidrick & Struggles, Spencer Stuart, TASA Worldwide and TRANSEARCH. Heidrick & Struggles South African operation was borne out of an acquisition of Johan Redlinghuys & Partner, a firm founded in 1970 that was previously part of the Amrop network. Most of the search firms are made up of approximately 4 consultants with a support network of researchers. Due to the market size, many of these are generalists, however firms like TRANSEARCH under Ian Blackie have built up specialist areas of search, i.e. mining and resources.

Despite going back 31 years, South African search is still not seen by all as an established industry. According to Brian

Brian Hosking

Hosking, South African Managing Director of TRANSEARCH United Kingdom "in any one month, in South Africa, 5 new recruitment firms start up. At the current moment, there are probably 8 of them going out of business every month". Dr. Trevor Woodburn, Managing Director of Woodburn Mann (part of the Whitehead Mann Group) explains. "The market could still be described as immature as there is no clear differentiation or understanding between retained executive search, contingent executive search or general recruitment. The only exception would be the major multinational clients who operate in South Africa and have an appreciation of retained executive search".

This seems to be a crucial reason why the search market in South Africa has remained static. There has been an "explosion in the numbers of personnel agencies and recruitment shops" over the last few years, explains Neil McCafferty of McCafferty Consulting; a search firm which makes specialist placements within financial services. "Generally South African line managers favour the shotgun approach of multiple agencies to the precision of a single search professional". McCafferty continues by highlighting that "search and recruitment are often seen as one in the same. This results in the general misconception is that both subscribe to similar ethical guidelines".

One answer to this problem could be the adoption of AESC covenants on clients and candidate's bill of rights. Recruitment

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agencies are less eager to take the AESC rules on board and this is what divides the contingency recruiters from retained executive search. Managing Director, Ian Blackie, believes "that it does mark ourselves from the contingency recruiters.

It is a good tool to describe who we are.

Alongside to using these covenants, we explain to clients the risk they are taking in using personnel agencies to find senior management staff. We will find the best person available whether they are looking for a new position or not. The personnel agency will find a different sort of candidate".

However, things could get tougher for South African search in the next few years if firms do no begin to appreciate the benefits of search. Brian Hosking of TRANSEARCH explains, "in the last 2 years the market has shrunk. Amongst firms in industry, those who could move their assets outside of South Africa have done so, listing elsewhere. The South African economy has become less formal and search does not work at its best in an informal setting".

A new avenue for business could be advising on retention. The main reason behind this is migration. Marco Boni, Managing Director of Spencer Stuart in South Africa tells "this is having an impact on the entire country. The fact that highly skilled labour has emigrated has created an imbalance". Trevor Woodburn of Woodburn Mann supports this. "The pool of talent in South Africa has certainly been diminished by the emigration of individuals over the past two decades. The most notable absence of skills is in the 30 to 40age range with a particular shortage in IT, Chartered Accountants and individuals with global business and marketing experience. There are still very good candidates available but the talent pool to search in is smaller".

A quickly developing side effect is inflation in salaries. This is predominantly for two reasons. Firstly, the remaining candidates are finding that not only their skills but more so the years of experience are increasingly in demand. Ian Blackie, Managing Director of TRANSEARCH South

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Africa, has witnessed candidates who have been recruited into several positions within a short space of time. "The effect on the professional is immense. If you imagine that 200 of 15,000 accountants in South Africa are black. They are hot property.

We've heard stories of candidates being recruited from a Chartered Accountant to a Financial Director within 3 years. Within that timeframe, they may have moved several times. At some point, they find that they may not be able to cope with so much responsibility acquired over such a short space of time". As a knock- on effect of this feverish recruitment activity, companies are desperate to retain their staff and thereby employees can demand a very attractive salary. Dr. Woodburn says, "It tends to be a sellers market where good candidates are able to dictate their terms rather than the companies dictating the terms for hiring and remuneration."

The second reason for increasing salary levels is that migration. "The government is trying to reverse the migration and attract South Africans back. As a search consultant, you are well aware that there is a double squeeze on client companies. To attract these expatriates back, the salary needs to be commensurate with what they would receive in the U.K., Australia or New Zealand. Add that to the fact that the currency has depreciated, then you can understand the challenges which these client companies face," explains Spencer Stuart's Marco Boni. "When we do high level searches for important positions, we also tap into our international network to see if we can tempt successful South Africans abroad back and into these positions. It's not necessarily an easy thing to do".

Neil McCafferty's sees that "there are also a sizeable number of expatriates returning to this country. It's not entirely a one-way street." These expatriates are not only the minority white South Africans but also black South African leaders who were in exile during the apartheid regime. "These exiled South Africans are returning having been educated abroad will often have managerial experience which is second to none," explains Marco Boni.

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Apartheid in South Africa is the main reason why search consultants cannot widely capitalise on a population of 43 million people. The South African economy grew rapidly in the 1950's and 1960's, explains Brian Hosking. "However it was only accessible to whites. In order to satisfy the demands for a growing economy, the government encouraged immigration from Western Europe. This came to an end in the 1970's yet in this decade many skilled Eastern Europeans came over to South Africa to fill the skill shortage." By the early 1980's, realising that demand for talent still exceeded supply, there were the first real attempts to equip the black South African population with the necessary skills for success. "In the '90's, process of developing black potential had firmly taken route. The 1994 democratic elections gave this process further impetus".

However, search consultants are facing a more difficult task in trying to find suitable candidates for positions. If we couple the implications of migration with the fact that "at any one stage over the last 30 to 40 years, there has been a 10- 15% shortage in senior managerial skills in South Africa" as Brian Hosking puts it, we witness an increasingly challenging position which the search industry finds itself in. Hosking doesn't believe that "new black professionals are not going to fill this shortfall in the short- term. In Europe, you wouldn't accept a candidate for a top-level position with less than 10/ 15 years of senior management experience. What we are seeing are attempts to do put people into positions with less than the mandatory required experience".

Dr. Woodburn echoes this observation.

"The biggest shortage of skills is amongst previously disadvantaged black South Africans, created by the limitations imposed by apartheid during the previous four to five decades. These individuals were not fortunate enough to receive the necessary education in the sciences and mathematics as well as appropriate business experience."

To rectify this imbalance, affirmative action has been encouraged. The Affirmative Action and Employment Equity

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legislation "potentially impinges on the basis of operation" of search firms, according to Trevor Woodburn.

TRANSEARCH's Ian Blackie explains the often-misunderstood intention behind affirmative action. "It is more a positive discriminatory issue. Most people see it as a plan that all companies should have a certain amount of previous disadvantaged individuals at certain levels within a given time. This is not a strictly correct meaning.

What affirmative action says is that a company should start to reflect the demographics of the nation".

However Dr. Woodburn believes that this legislation "forces organisations that deal with government or para- statal businesses to conduct a significant portion of their business with organisations that are owned and operated by previously disadvantaged individuals". How far does this affirmative action go? Marco Boni explains his experiences. "In some cases, clients make it clear that their preference would be for a black person in a particular job. We would do everything possible to try and fulfil that requirement. But according to law, it is not possible to stipulate 'black' or 'white' but the reality is something different. We have to be very flexible in these issues and conscious of what the law says." At the same time, Boni sees the need to "redress a situation which has been skewed for so many years. This isn't just on a racial basis but on a gender basis too.

There are accelerated programmes of promoting women in existence."

But if such programmes exist, how can a search consultant be sure that they are putting the best person into a position, regardless of political or social pressure?

The widening skills shortage does make a case for greater flexibility in placements.

Spencer Stuart's Boni sees the solution in "identifying talent with generic skills who have excellent communication, solid education and experience albeit perhaps in an unrelated field. The candidates need to be able to make a leap into another field."

He does not believe that this is something which is simply South African. "It happens in other parts of the world too, sometimes on different levels".

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Trevor Woodburn The South African market is, according to Brian Hosking of TRANSEARCH, worth "a lot less than ÂŁ10 million". There may be scope for expansion to other parts of Africa. An indication of this may be McCafferty Consulting's identification of talent "in Zimbabwe, we have identified talented, quality people from Botswana, Ghana, and Kenya." Spencer Stuart believes that the Johannesburg provides "the perfect springboard for the whole of Africa and the Middle East." Perhaps it is those mature economies in Africa which would offer the perfect environment for search. However Marco Boni believes that "it doesn't necessarily follow that we would get work from mature economies.

We get a lot of work to be done in developing economies where they require skills to drive privatisation or help launch a new company. Business comes from regions like Nigeria, Kenya and Uganda, for example".

In addition to searches which are done in these regions, candidates for South African searches come from Uganda, Ghana, Nigeria, Zimbabwe to name but a few. However is the call for business enough to sustain a search firm in another South African country? Brian Hosking does not believe that this is the case. "Searches completed in the Ivory Coast are usually done from France. Houston controls a large part of the search market in Nigeria. There is not a large enough market in other African countries to warrant further office opening. Plus technology helps us connect

to all corners of the continent."

Dr. Woodburn is in agreement. It would not necessarily be viable to open an office in another region of Africa. "No particular market outside of South Africa is dominant. The reality is that most of the search opportunities are opportunistic and depending on the level of economic activity and development in the particular region".

The future for South African search will involve offering retention strategies to clients. There will also be a requirement to work on a very international basis, attracting the emigrated talent pool back to South Africa. The changes that South Africa is experiencing mean that empowerment (black owned businesses) will become just as much an issue as affirmative action.

"There is a need to reflect the demographics of society," believes Marco Boni of Spencer Stuart. Search firms are attempting to reinvent themselves around developments. In order to meet this end, Woodburn Mann is adopting a new approach. Dr. Woodburn explains.

"Woodburn Mann are in the process of identifying an appropriate individual or group of individuals. Once they have been identified, the firm will form an executive search associate owned in the majority by previously disadvantaged individuals. This business would then target those organisations demanding diversity in its ownership and structure. Woodburn Mann would provide the infrastructure support as well as transfer of skills to previously disadvantaged people recruited into the business". Through its "empowerment executive search business", Woodburn Mann believes that it will be able to "better serve the needs of employment equity and achieve representation of the demographics of the country". In order to capitalise on changing circumstances, this could be a trend followed by many of the international search firms in South Africa.

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

LD O S

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