search-consult Issue 8

/ ISSUE 8 2001

The International Executive Search Magazine

Hob Brown Jr. on Management Russell Reynolds Associates' President and CEO speaks exclusively to search-consult

Global Leaders Which of the Major Firms are Truly Global?

Search in Spain and Portugal

www.search-consult.com

Maintaining Quality in Search Assignments

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global executive search

search-consult Entrepreneurial Spirit & freedom from bureaucracy Trusted relationships with clients Global Commitment to client service through our international offices High-Touch personal service

MANAGING DIRECTOR Jason Starr jason@search-consult.com EDITORIAL Barbara Kwateng Pilar Gumucio Paul Cowap 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

Boyden is investing through the recession We are adding leaders globally to our practice teams in: ●

Board Search

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Management Assessment

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Financial Services

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Pharmaceuticals

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Consumer

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Professional Services

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High Tech

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Many Other Areas

Work with Boyden to find leaders as business comes out of recession For a confidential discussion, contact

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.

Chris Clarke, President 364 Elwood Avenue Hawthorne, NY 10532

Front Cover: Hob Brown Jr., President and CEO, Russell Reynolds Associates. Photography courtesy of Russell Reynolds Associates.

914.747.0093 cclarke@boyden.com www.boyden.com

© Copyright 2001 Dillistone Systems Ltd

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Heidricks announces “reshaping of organization” www.search-consult.com

NEWS

PIERS MARMION, THE NEW CEO of Heidrick & Struggles, has announced a series of sweeping business changes designed to build "a leaner, more focused client-driven organization that combines our individual strengths into a unified force more effective than ever before."

Key Changes include: ● Workforce reduction by 16% - 335 further employees to leave, in addition to the 300 who left in June. ● Focus on Major Account Relationships in the hope of cross selling complementary services. ● LeadersOnline to be fully integrated with the core search business by January 2002. LeadersOnline will be repositioned as a practice group focused on 'emerging high potential executive talent'. ● Management structure to be simplified, with aim of giving managers greater accountability for service quality, development of

people and financial performance. ● Consolidation and downsizing of office space and other infrastructure.

Many of the large offices will become service centers for smaller offices that will operate without local administrative support. ● Pat Pittard, the former CEO succeeded by Marmion, is to end his association with the firm. He had been expected to remain with the firm as Chairman of the Board.

Marmion commented "We have been analyzing every aspect of our business model and cost structure to identify the inefficiencies that have crept in to our operations.

While we are taking significant actions now to reallocate resources and to reduce costs, our focus extends well beyond simple costcutting measures. We are reshaping the organization because we want to maintain the muscle for future growth and the resources to invest in strengthening ourselves."

Heidrick & Struggles are not the only firm cutting offices; this month it has been revealed that Russell Reynolds plans to close their Los Angeles office.

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Restructuring at TMP Worldwide www.search-consult.com

NEWS

OVER THE LAST MONTH, TMP Worldwide has announced a series of major changes to its management structure - a number of which will have a direct effect on the executive search division.

The firm has named Jim Treacy president of the overall business. He will also continue to serve as COO and will be part of the newly created Office of the Chairman. Three new 'Global Director' positions have also been created. As a result of this, Andrew Banks, formerly CEO of the eResourcing division, adds the Executive Search division to his responsibilities.

The firm has also been reorganized on a geographical basis. Until now, the firm had been organized operationally by business segment but the hope is that, in addition to creating business development opportunities through referrals, the firm will cut costs through "a shared services approach for Information Technology, Accounting, Treasury, Marketing and Advertising, Legal, Tax, and Human Resources".

Andrew J. McKelvey, Chairman, commented, "By moving to a regional structure, we are now able to capitalize on a new level of synergies across our business segments and most importantly, provide each of our clients with valueadded solutions that range from Intern to CEO. With a broad collection of human capital products and services, we are in

the unique position to leverage our existing customer relationships and increase our market share with each client, which will further drive our organic growth. Cross selling has been a focus at TMP for several years now, and today's action significantly advances us towards our goal of providing one-stop-shopping solutions. I am very excited about the significant new growth prospects this organizational structure will now afford us."

Prior to this restructuring, Steve Potter was CEO of the Executive Search division of TMP. He has left the business 'to pursue other interests'. Mr Potter, profiled in issue 2 of search-consult, began his search career at Russell Reynolds before founding Highland Search Group. TMP named Potter CEO of the search division when it acquired Highland Group two years ago.

McKelvey commented "During the past two years, Steve Potter helped us strengthen the CEO component of our company's overall intern-to-CEO business model.

We thank Steve for his contributions in broadening TMP's reputation as a leader in senior-level executive search counsel and services, and all of us at TMP Worldwide wish him well in his next endeavors."

The departure of Mr Potter brings to five the number of major Search firms to have changed CEO this year. The other firms to announce changes have been Korn/Ferry International, Heidrick & Struggles, A.T. Kearney and Spencer Stuart.

Search firms respond to September 11th tragedy www.search-consult.com

NEWS

SEARCH FIRMS AROUND THE WORLD have continued to offer services to companies and individuals affected by the terrorist attacks on September 11th.

In Issue 7 we reported that the IACPR was offering its services as a 'clearing house' for both candidates and firms effected (iacpr@aol.com); the Cornerstone International Group is providing a similar service while also offering to 'project manage' recruitment campaigns for firms on a pro bono basis (billguy@cornerstoneintl.com).

Christian & Timbers have set up an "Executive Relief Effort" at www.ctnet.com.

According to Jeff Christian, this site aims to provide a "free exchange between companies that have lost talent in this tragedy and individuals who are interested and available to help. A large number of firms are offing pro bono services on behalf of firms affected while others have made donations to charitable funds or offered services through the eBay 'Auction for America". Finally, as reported in Issue 7, the AESC has set up a disaster relief fund - contact pmf@aesc.org for further information.

COMING UP IN FUTURE ISSUES:

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In-House Search

Surviving the Slowdown

Can companies save money by bringing the search process inhouse ?

Which market sectors are prospering despite the economic turmoil ?

search-consult Issue 8 2001

Executive Search in Scandinavia

Executive Search in China & Singapore

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

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

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Korn/Ferry TRANSEARCH Horton International International announces opens in Peru moves India Security Practice www.search-consult.com

NEWS

www.search-consult.com

NEWS

www.search-consult.com

Leonard Hull joins Accord

TRANSEARCH INTERNATIONAL recently announced the opening of an office in Peru.

The office is based in Lima and is managed by Jorge Velaochaga. Jorge is 37, holds an MBA from University of Texas, and is a former partner of Amrop International. He has completed executive search assignments in the Telco, IT, Pharmaceutical, Tobacco and Energy sectors among others.

His generalist perspective is gained through experience in Sales, Administrative, HR, IT, Strategic Planning and International Business managerial and executive positions held in multinational corporations such as IBM del Peru and Interoc Ecuador (Grupo Custer).

Alain Tanugi, Chairman of TRANSEARCH International Partners, said that he was extremely pleased to welcome Jorge to the TRANSEARCH world. He further mentioned that with eight TRANSEARCH offices in Latin America covering Mexico, Argentina, Brazil, Venezuela, Colombia and now Peru TRANSEARCH has representation in almost all the economic centers of the continent. An article on page 16 of this issue of search-consult. positions TRANSEARCH International as number 2 in the South American market.

HORTON INTERNATIONAL'S BOARD of Directors have announced the realignment of its international organization with the transfer of the Mumbai, India office from the Asia/Pacific Region to the European Region. The firm states that this has been done to reflect the realities of linkages between India and European business centers.

ITP Worldwide add six offices www.search-consult.com

NEWS

ITP WORLDWIDE, THE NETWORK of IT Search firms, has announced a number of new members. Gisha Shona in Israel, Quorom in India, Passarelli Consultores of Brazil, Fleet and Partners of New Zealand, Korean firm Lee & Partners and EMS Consulting on Taiwan bring the number of members firms up to 12.

Etienne Reeners of European member firm Hightech Partners spoke at the recent search-consult conference in Brussels - a review of which can be found on page 26 in this issue of search-consult..

KORN/FERRY INTERNATIONAL HAS launched a 'Homeland Defense Security Practice' specializing in senior-level recruitment in the security and defense sectors. The firm reveals that the practice was created in response to recent client demand and changing corporate considerations, resulting in the growing need for high-level security executives both domestically and abroad. Korn/Ferry consultants offer expertise in search for executives as well as newly-created and traditional security positions that focus on preventative measures and cost efficient solutions.

PwC in Australia www.search-consult.com

NEWS

THE AUSTRALIAN EXECUTIVE recruitment business of PricewaterhouseCoopers has been acquired

by Julia Ross Recruitment Ltd. The business is to be rebranded "First Water Executive".

PricewaterhouseCoopers executive recruiting business in other parts of the World are not affected.

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>>> STOP PRESS <<< DHR to acquire Stratford Group ? www.search-consult.com

NEWS www.search-consult.com

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LEONARD HULL INTERNATIONAL has been named as the new UK member firm of International Network The Accord Group. Leonard Hull International, set up by former journalist Carol Leonard, replaces the firm Tyzack and Partners which left the network following its acquisition by The Whitney Group last year.

AS SEARCH-CONSULT GOES TO press, sources within The Stratford Group have revealed that the search division of Spherion is set to be acquired by DHR International.

While the story is as yet unconfirmed, it seems that DHR International have offered positions to the vast majority of The Stratford Groups’ consultants.

As revealed in our story on page 16, DHR

International are already the largest search firm in the US in terms of office locations.

Spherion, a publicly traded business offering a range of recruitment related services, have made sweeping cut backs this year, with some 500 job losses across the group.

DHR International is a partner with H. Neumann International in Europe.

We hope to carry further detail on this story in the next issue of search-consult.

Business Cards: Executive Research Firms Working in Partnership…

Persona is a well-established research company providing highly proactive search solutions purely to recruitment companies. Our experienced in-house research team have knowledge of a wide range of industry sectors and research methods enabling us to deliver the results you need. …to deliver Solutions Our services include: Target List Compilation; Candidate Identification; Candidate Approaching International Assignments; Company/Departmental Structures; Bespoke Research Assignments For further details or a copy of our company brochure, please contact Michelle Whitfield-Speed at:

Tel: (+44) 1423 529087 Fax: (+44) 1423 507466 e-mail: persona@personauk.co.uk Claro Way, Harrogate, North Yorkshire HG1 4DE England

ROYCE ASSOCIATES (est. 1994) Independent Executive Research

To receive search-consult on a regular basis subscribe at www.search-consult.com Candidate identification and screening.

Assignments cover a range of industries, functions and levels from junior managers to board level.

Cross-border research in French, German and Spanish.

Tel:+44 (0) 20-8682 4027 Fax: +44 (0) 20 8672 6808 email: GeorgeRoyce@cs.com

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Annabel Hodgson Newton Research Associates, Unit A6, Hatcham Mews Business Centre, Hatcham Park Road, London SE14 5QA Telephone: +44 (0)20 7639 4844 Fax: +44 (0)20 7639 4833 Mobile: 07957 659103 e-mail: a.hodgson@newtonresearch.co.uk

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Hobson Brown

on

Management

Not many executive search firms can claim to have been profiled by The Institute of Knowledge Management and used as a case study by students at Harvard Business School.

Russell Reynolds Associates is one firm that can; the reason - the commitment of Hobson Brown, Jr., the firm's President and Chief Executive Officer to the concept of "social capital."

In an exclusive interview with searchconsult, Mr. Brown explains how he believes his firm has developed a culture of collaboration. t's surprising but true: sharing information and resources is not considered beneficial by every search firm. Although information is fundamental to the business of search it is the exception, not the rule, for a firm to spend millions on knowledge management.

Russell Reynolds Associates argue that they go further in achieving this than other firms. In fact, they go so far as to claim it as a competitive advantage.

"Some people consider us a bit

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“....we believe that things like profit centers or compensation based on formulas are

impediments to cooperation.” different. When a client hires this firm they get the resources of the whole firm," explains Mr. Brown. "We believe that things like profit centers or compensation based on formulas are impediments to cooperation. Under our compensation system, we make discretionary judgments based on what that person does to contribute to the overall success of the client and the firm. You can't do that with a formulaic compensation system."

Impacting recruiters' compensation may be the most overt way of achieving knowledge sharing, but Russell Reynolds Associates also has a number of more tactical measures in place to encourage

By Jason Starr that behavior.

Every Monday morning in each of the 33 offices around the world, staff meetings are held to discuss every search in which the firm is involved. All professional staff are involved. Every day, each member of the firm receives a list of newly opened assignments; this stimulates ideas for sources or potential candidates.

"Every single search is reviewed - how is it going, who is doing what," emphasizes Mr. Brown. "There is a real effort to share ideas. Our recruiters identify targets for our candidates on a worldwide basis."

The weekly staff meeting is one of a number of behavioral norms that Russell Reynolds Associates encourages. The firm also has a 'five call rule', which requires recruiters to make five calls requesting advice from colleagues upon the booking of any new assignment.

These calls are to be made before any other sourcing calls. Ideally this practice ensures that the spectrum of potential candidates is as broad as possible. A related expectation is that the firm's

employees are expected to return colleague calls before any other including those from clients or candidates.

Russell Reynolds Associates has a global database that contains information on every assignment, every client and every candidate with which the firm is in contact. Currently, the database contains information on nearly 40,000 assignments and close to 1,000,000 individuals.

"If I look at the database I can see everything in real time. If a consultant interviews someone in New York and summarizes that interview in the database, then people in London and Singapore can read about it instantaneously.

It facilitates cooperation and sharing. It's like the blood system for the human body."

Mr. Brown believes that such databases are vital to the firm's ability to perform efficiently.

"We have never believed that the solution rests in a machine, but the database does do a couple of things," he reports. "It gives you a tremendous starting point. It also brings a sense of the institution to a client or candidate. If a recruiter can talk to an individual and be aware of conversations held by a colleague with that individual four months ago, he or she will see us as a worldwide organization.

They will consider us as a firm who knows who they are. A database is a great facilitator of communication and it's an integral part of our search process."

Encouraging people to share information - whether through a database or the firm's behavioral norms is not necessarily second nature. Mr. Brown emphasizes the importance of inducting new employees.

"I used to see every single recruit at the associate level or above before they were hired.

However, you can't build a business like that - you have to empower people. But I still talk to people about every single recruit. I like to know the logic behind hiring the person. What is he or she going to contribute? What is

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this person's background? I want an idea of how it will make the firm look. How will we grow the person? Who will be responsible for that?"

The vast majority of Russell Reynolds Associates' recruiters are brought into the firm directly from the industries they serve - they have tended not to recruit from other search firms. To help them evaluate the potential success of an individual being considered for the firm, they employ a competency test.

Mr. Brown observed that "executive search isn't what most people think of as a career. You ask someone about search and they say, 'I'm a Civil Engineer! Why would I want to do search?' What we try to do is create a 'probability of success' profile to help those people understand that they can be good at the business. I think that in most cases it has only reaffirmed what we have sensed, but it is helpful for them. They can look at this

“....I used to see every single recruit at the associate level or above before they were hired.

However, you can't build a

you have to empower people.” business like that -

and say, “I have the characteristics that have made people successful in this firm.

I can give it a shot”.

Once individuals are recruited to Russell Reynolds Associates, heavy emphasis is placed on the induction process. Every new recruiter has a mentor, and a process is undertaken to acquaint the recruit to every aspect of the firm.

"We move the new consultant around the office, have him sit in different chairs and see various parts of the process," explains Mr. Brown. "There is also a formal New Associates Program which is

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Hobson Brown Jr. conducted two or three times a year. We bring people from all over the world for this professional development."

The New Associates Program will typically involve 20-30 participants, all of whom will have joined Russell Reynolds Associates within six months. They are drawn from across the world. Partners of the firm are the primary faculty members; they lead the coursework discussions, and modules cover topics such as best practices, effective interviewing, negotiating skills, and how to close a search.

Once the induction is completed, professional staff can expect to meet at Global Conferences every two or three years. These are attended by members of the professional staff and are designed to reinforce best practices as well as the unique culture of the firm.

"We work with our people constantly.

People are our biggest cost - everything else pales," comments Mr. Brown. If we are bringing in people who do not come from the search industry, then it is incumbent upon us to ensure that they get all the training they need to be successful and to be able to contribute here." www.search-consult.com

For more information, visit: Web:

www.russellreynolds.com

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The Search

Quality for

By Jason Starr and Barbara Kwateng

ook at the marketing literature or the website of almost any major search firm and you will find the word "quality". The Korn/Ferry website claims "…the firm's search professionals consistently strive to offer the highest quality standards" while Russell Reynolds site talks of "…providing clients with high-quality services in a professional manner". But, in the context of executive search, what does the word 'Quality' actually mean and, perhaps more importantly, how are search firms actually trying to ensure that it is a deliverable and not merely a marketing slogan?

Definitions of the terms are myriad.

Magnus Tegborg, CEO at Swedish firm Alumni defines quality as "Delivering to a client what they need, on time." Michael Byrne, the Chief Operating Officer at British boutique The Rose Partnership believes that being a quality firm involves ensuring that when a client gives his firm an assignment they can expect it "…to be completed to a standard methodology that they understand from the outset and that they believe will deliver the best

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possible candidate." For Doug Orr, Vice President of Knowledge at Ray & Berndtson in the US, Quality is - quite simply - "the consistent production of results… the bottom line is client satisfaction."

While everyone questioned defines quality in terms of client satisfaction, most acknowledged that this was only achieved through the instigation of internal procedures which - in many cases - the client would never be made aware of.

Chris Clarke, President of Boyden, describes his firms' quality assurance process as "a cycle" which includes "…recruiting quality individuals, developing their Deadline skills and search Day 0 competencies, building and Day 1 constantly Day 3 improve a quality Day 7 search process, get quality Day 30 feedback from clients and Day 90 i n t e r n a l

colleagues; evaluate quality feedback and plan further improvement actions".

TRAINING IS KEY Those responsible for achieving quality tend to use two techniques - training and imposed procedures. The Professional Development Department at Heidrick & Struggles has developed three individual training programs for new professionals one developed for 'new to search' professionals; one for hires from other firms and one for senior associates promoted to consultant. Upon completion of the training courses, a mentoring process is then followed whereby the new recruit is partnered with an experienced consultant. Christian &

Timbers, meanwhile, has developed a 'Leadership University'. This is an elearning center which is designed to teach employees skills such as project management and interviewing techniques. Boyden, Intersearch, Russell Reynolds and TRANSEARCH are amongst the many cross border search groups that bring employees together for international training sessions.

SYSTEMS AND PROCEDURES For many of the more established search firms, once a new recruit is trained he or she is expected to follow a specific set of business procedures.

Ray & Berndtson, for example, have mapped out the search process in detail with quantifiable objectives for each stage.

A key tool in managing the workflow is the firm's database system. Rhonda Fisher, Director of Knowledge Management, explains "The search management system is vital. We make sure that everyone participates in entering information into the system. We produce detailed reports analyzing the performance of users in terms of what goes in. We have developed norms for each role within the business - this enables us to look at the data entry performance for consultants, researchers and administrators individually."

Many of our interviewees agreed that enforced use of a good database is A nalysis R eport A nalysis R eport

ResearcherPerform ance Analysis ResearcherPerform ance Analysis Assignm entStatus = ACTIVE Assignm entStatus = ACTIVE Target C om panies C andidates Identified C urrent Target omeved paniVari es ance C andidat Ieved dentifVari ied ance R esearcher A ssignm ents G oal AC chi G oal Aes chi C urrent R esearcher A ssi gnm ent s G oal A chi eved Vari A chieved 0% Variance JS 5 100 100 0% ance 150 G oal 150 AJ 3 54 55 2% 80 75 -6% JS 5 100 100 0% 150 150-2% 0% IS 5 105 102 -3% 125 122 A J 3 54 55 2% 80 75 -6% RH 2 30 30 0% 65 60 -8% IS 5 105 102-7% -3% 125 122-6% -2% TS 6 150 140 190 178 RH 2 30 30 0% 65 60 -8% TS 6 150 140 -7% 190 178 -6%

R esearcher Perform ance A nalysis :Target C om panies

Workflow Business development and new searches entered into system Develop target list of companies ‘Mine’ existing names matching target criteria from search management system Gap analysis and name identification on ‘holes’ in search strategy All research complete and initial candidate development Goal: Search Complete

Figure 1: Ray & Berndtson Search Execution Workflow

160 140 120 100 80 60 40 20 0

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fundamental to achieving quality. At this point, for the purposes of openness, it should be stated that search-consult magazine is published by Dillistone Systems - developers of software for retained executive search firms.

Paddy Morrissey, Managing Director of Sheffield Haworth comments that "We have a team dedicated to cleaning up and checking the database in order to provide a 1st class data support system." At the Rose Partnership, out of 52 full time employees, 3 work exclusively on database cleaning.

Many firms use a 'carrot and stick approach' to data management.

Emphasis is not just on monitoring and correcting poor work but also on rewarding good work. The sample report on database coding (chart 1) is fairly typical of the type of data on which firms will make compensation decisions. Doug Orr of Ray & Berndtson comments "A large part of our compensation is metric driven, based on quality statistics." Jeff Christian of Christian and Timbers reveals "…we pay on quality, and each year, the bar is raised. Every year, quality becomes a bigger part of our year-end bonus and it is measured at every level. To be promoted, you need to have performed to certain quality levels."

While database management is fundamental it is not the only issue that firms have to be concerned with.

International search network InterSearch has a 'Standards and Quality Committee' which has developed a manual covering issues such as group membership requirements, policies and procedures, assignment information, design and marketing issues and use of the Web. Every aspect of the business is considered to be relevant to quality.

One area of the search industry which has come under the spotlight recently is reference checking. Dr Buckhard Block of Delta in Germany points out "There will always be candidates who use almost criminal methods to falsify documents. If you check up on candidates as part of fulfilling your quality aims then these candidates will not have an adverse

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Q uality ControlReport Data Q uality Control

R esearcher JS AJ IS RH TS

Target % w ith % w ith 5+ C om pany research date contacts 20 100% 100% 19 100% 100% 20 97% 100% 15 100% 95% 20 95% 95%

% w ith rating % w ith tel 100% 100% 99% 100% 99% 100% 100% 100% 97% 100%

% w ith URL 98% 100% 100% 100% 100%

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effect on your business…We always request original copies of documents and references."

ASK THE CLIENT For many firms, it is not enough merely to implement internal procedures.

Quality is about client satisfaction and this needs to be measured.

Boyden achieve this in a variety of ways including both online questionnaires and the use of an independent firm to undertake postcompletion surveys. Chris Clarke reveals that "We are migrating to a system where we will use online centrally gathered client feedback after every assignment….". At Ray & Berndtson in the US a formal questionnaire is regularly mailed out to a random sample of clients and the Partner at the firm responsible for the client relationship then follows this up. While international members of the Ray & Berndtson network may take different approaches, the firms' key international clients all have a key account manager who will undertake a similar audit globally.

On quality audits, Michael Byrne takes a different point of view. The Rose Partnership' COO reveals that at his firm "No audits are done with clients. It is, frankly, not the most useful way of doing it. The better way is to have a senior member of staff who is close to our core clients because, in this way, they won't wait for an audit. If something is wrong, the client will come and tell us about it immediately…. This is what I mean by quality being on-going. I see a role for quality audits in larger firms where it is

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difficult to be as close to clients. I also see their worth in volume driven firms who have lower rates - it can be harder to see what is going on. But, for boutiques with a smaller number of clients, you get feedback all the time." A similar line is taken by Dr Block "… we don't complete them. The only ones who profit are the auditors themselves.

Quality must be present in all aspects of the organization and should occur naturally. Quality shouldn't be a chore."

However it is achieved and however it is measured, the industry is in agreement that quality is the way forward. During the industry's boom last year, demand was such that even those firms unconcerned with service levels were able to turn down business. This is no longer the case. As Chris Clarke says "…We should only have people in the profession who are passionate about client service and quality. The others will be driven out as clients want and expect more… Quality is the future of the industry and anyone who thinks otherwise should exit the industry."

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Firm

____________________________________________________

Appraiser

____________________________________________________

You requested us to carry out a search and selection for a manager/employee for the following position/s Project/Position

____________________

IS Project number ___________

Your candidate

____________________

employed since _______________

Please give us your feedback on the standards of our services: 1)

Competence/professionalism in handling the project:

2)

Availability/communication of your consultant and assistant:

3)

Selection and assessment of the presented candidates:

4)

Your satisfaction with the chosen candidate up to now:

5)

Your satisfaction with the overall IS performance:

A D F G K A D F G K A D F G K A D F G K A D F G K

World Search

Other related personal comments are welcome! ____________________________________________________ ____________________________________________________ ____________________________________________________ We aim to continually improve our services for you. This information will be treated confidentially. Thank you for your contribution! ____________________ Date

____________________ Signature

Intersearch project appraisal form

www.search-consult.com

Doug Orr

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.

Web:

in

Copenhagen

For more information, visit:

search-consult

search-consult Issue 8 2001

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IS Project Appraisal

ADVERTISING IN

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By Paul Cowap and Jason Starr

With 41 offices across the World, the World Search Group network is one of the largest groupings of independent search firms. Despite this, they are a group with a relatively low profile in the industry.

Management of an executive search brand was just one of the issues discussed by the groups' partners during a series of meetings in Denmark, Sweden and Norway this September. Paul Cowap and Jason Starr attended for searchconsult. orld Search Group can trace its roots back to the summer of 1981.

Founder members William Willis (William Willis Worldwide in Greenwich, Connecticut) and Maurice Dennis (of Dennis and Gemmill International & Partners Limited, London)

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Francis Kudayah & Bjarne Steine

shook hands at an AESC meeting on an agreement to work together on international assignments. Later that year, Alain Touveron of Touveron and Associates in Paris and Ekkehard Wille of Ekkehard Wille Unternewhmensberatung in Wuppertal joined the partnership and, slowly, a network began to form.

"It was all very amateur and we didn't meet on a regular basis" explained Dennis, who is the current Chairman of the group, "but we started to gain momentum in the late 80s and have grown very substantially over the last decade."

Until recently, the focus for expansion had been the US. Under the regional leadership of Bill Handler (whose firm, W L Handler and Associates, joined the group in 1995) the network has named

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Wilhelm Wachtmeister & William Willis five new members over the last couple of years and Handler believes that all of the major markets in the region are now covered.

The focus of attention, therefore, has switched to the Pacific Rim and the Copenhagen meeting was attended by a number of prospective members from that area. One of these, Search International, is lead by Korean Search veteran Kwok Kee. "We see a lot of benefit in joining a network such as the World Search Group.

In additional to the opportunities for sharing business opportunities, it is good to have people to brainstorm with. There is a very open attitude within the group."

As the first search firm in Korea to join the AESC, Search International have received approaches from a number of the major integrated firms but Ms Kee sees clear benefits in the network structure. "We have a kinship with the people here; there are some excellent firms and a very open attitude. I feel very comfortable with the people I have met here."

This is a view that John Peebles of John Peebles Associates concurs with. His firm has also chosen the network approach to going international despite receiving 'numerous' offers to join the public firms.

"The public firms would look for us to provide 15-30% annual growth. We are based in a declining market and we just can't do that. I have no desire to attend a partners conference in New York or Chicago and get beaten up as the guy who has offered continued profitability but failed to achieve the required

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growth."

Peebles' reason for wishing to join a network is perhaps not typical. He claims to be more motivated by a desire to source international candidates than a wish to receive incoming business referrals.

"Last year, 22% of our candidates were international. We expect this figure to rise in 2002. I'm doing a search at the moment for a major international professional services firm - I have candidates in Copenhagen, Kuala Lumpur, Jakarta, San Francisco and Sydney. There is no one appropriate in New Zealand. At the moment I am using contract researchers in New York and London. I can trust them to do a good job, but I don't really know them. I'm joining the World Search Group so I can get to know people with real expertise in local markets."

One of the problems that the group acknowledges is that, currently, it does not have the level of brand recognition boasted by some of the firms with which it competes.

Compared to some of the networks, the group has a fairly loose rulebook, which means members are able to use the World Search brand in different ways. If a client should call Bill Handler in the US, the phone will be answered "WL Handler, World Search Group". A letter from Maurice Dennis would arrive on paper headed "World Search Group Dennis and Gemmill International." The Scandinavian member, formerly known as Pancrestus, now trades under the name "World Search Group Scandinavia."

To what extent does this matter? A search network has two audiences for its brand; prospective members and prospective clients. Obviously, every prospective member would like the name awareness of a Korn/Ferry or a Heidrick & Struggles, but few wish to give up their own local brand, which may have been built up over many years. Dennis argues that a flexible policy enables his group to have the pick of the established firms looking to enter a network type structure.

"Everyone makes there own local

decision. You should not be heavy handed with these things; the executive group is trying to win people over through persuasion and the logic of the argument rather than through imposition."

As for the clients' viewpoint - Bill Handler is of the opinion that the name is immaterial once a relationship has been developed "Last year, we brought

Ben Beaver & Alain Touveron in Accenture as a major new client.

They required multiple assignments and we asked our Chicago partner to executive a number of them on our behalf. So long as the level of quality is consistent, the client really doesn't care."

The World Search Group is unique among the major networks in that they can claim never to have lost a member.

Its objective going forward is to continue to add to the list of members, to develop the World Search brand and, perhaps most importantly, to increase the level of intra-group referral. In the words of meeting host Lena Skou - "this meeting will have been a success if, as a result, we do more cross border work next year."

www.search-consult.com

For more information, visit: Web:

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The Global Search Firms search-consult takes a new approach to assessing the global firms

Heidrick & Struggles 31 H. Neumann International / DHR 49 Korn/Ferry International 20 Boyden 14 Amrop / Hever Group 9 Egon Zehnder International 12 TRANSEARCH International 7 Spencer Stuart 18 Ray & Berndtson 13 World Search Group 11 Horton International 6 Intersearch 2 IIC 5 Russell Reynolds Associates 12 Accord Group 6 TMP Worldwide 11 EMA 11 AT Kearney 14 ITP Worldwide 5 TOTAL 256 TABLE 1: Leading firms by number of offices

N America Other America

H. Neumann International / DHR Heidrick & Struggles Korn/Ferry International Spencer Stuart AT Kearney

Europe

SE Asia

31 28 25 26 28 28 27 20 24 12 19 20 21 12 21 10 11 9 14 386

10 0 16 14 12 11 8 7 5 9 10 7 6 6 4 4 4 4 7 144

7 2 10 6 6 6 8 6 5 4 3 2 2 3 0 6 3 2 1 82

49 31 20 18 14

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Other TOTAL

2 2 0 0 3 0 2 1 0 4 0 3 0 0 2 1 0 0 1 21

81 81 71 60 58 57 52 52 47 40 38 34 34 33 33 32 29 29 28 889

Europe

SE Asia

Other

TOTAL

28 31 25 20 9

0 10 16 7 4

2 2 0 1 0

81 81 71 52 29

2 7 10 6 2

Table 2: DHR lead in North America

N America Other America

By Jason Starr raditional measures of search firm size have been based on revenues.

These are all well and good, but tend to bias the figures towards those firms which take the biggest assignments and, therefore, generate the biggest fees.

Given the nature of the industry today, the analyst wishing to produce figures has to also consider issues such as the valuation of stock holdings and adjustments necessary to remove revenues from non-search related activities.

Another issue relates to cross charging; firms with regional profit centers (the network firms in particular) can often inflate figures through double charging.

For example, a search by a firm in Chicago involving support from a Parisian affiliate may see the client being billed for the full amount of the Assignment by the US firm. A fee is generated of, say, $100,000 and this is billed by the Chicago search firm directly to the client.

The Firm in Chicago is then billed by the French firm for - say - $20,000 reflecting the services supplied locally. The end

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result - a client is charged $100,000, but the search networks book $120,000.

The events of the last few months have also had a significant impact on the meaningfulness of using revenue figures for comparison. A search firm heavily based in Europe with a financial year closing in March of 2001 would produce relatively speaking - far better numbers than a search firm based in the US announcing figures at the same time, purely because of the different stages of the economic cycles.

The other problem with using revenues as a measure of 'size' for search firms is that is doesn't actually have any meaning to anyone other than the management and shareholders of the firms listed.

From the point of view of a client, there is no benefit in the fact that a search firm achieves major revenues; of course, these revenues may be indicative of a firm that provides excellent service and has a spectacular rate of repeat business, but equally, it may be indicative of a firm with numerous 'off-limits' issues.

Therefore, search-consult has selected

an alternative approach for what will become an annual review of the World's biggest search firms. We have chosen to analyse the firms in terms of regional and global representation.

Like revenues this is far from being a perfect solution. As we speak, a number of firms are closing offices and therefore even by the time this review is read - it may prove to be outdated. In practice, the reduction of offices tends to affect the integrated 'wholly owned firms' more than the networks. The networks have a different problem in that they can, from time to time, lose members to other groups.

The other problem with this type of review is that it encourages a 'flags on maps' approach. The fact that a firm has an office in a certain country does not necessarily mean that it is more able to provide a service in that country beyond that offered by a firm with no office (see issue 6 of search-consult).

For inclusion in the tables opposite, firms must operate on a retained basis out of at least 25 offices and must be

Korn/Ferry International TRANSEARCH International Heidrick & Struggles Boyden Amrop / Hever Group Egon Zehnder International Spencer Stuart TMP Worldwide

20 7 31 14 9 12 18 11

Europe

SE Asia

25 27 31 26 28 28 20 10

16 8 10 14 12 11 7 4

10 8 7 6 6 6 6 6

Other TOTAL

0 2 2 0 3 0 1 1

71 52 81 60 58 57 52 32

Table 3: Korn/Ferry International are leading players in South America

N America Other America

Heidrick & Struggles Egon Zehnder International H. Neumann International / DHR Amrop / Hever Group TRANSEARCH International

31 12 49 9 7

Europe

SE Asia

31 28 28 28 27

10 11 0 12 8

7 6 2 6 8

Other TOTAL

2 0 2 3 2

81 57 81 58 52

Table 4: Heidrick & Struggles lead in Europe

N America Other America

Korn/Ferry International Boyden Hever / Amrop Group Egon Zehnder International Heidrick & Struggles Horton International

20 14 9 12 31 6

Europe

SE Asia

Other

TOTAL

25 26 28 28 31 19

16 14 12 11 10 10

0 0 3 0 2 0

71 60 58 57 81 38

10 6 6 6 7 3

Table 5: Korn/Ferry International strong in Asia and Australia

represented in at least 3 continents. The size constraint has meant that a couple of the firms that may be considered as 'top 25' in terms of revenue have not made this list (namely Penrhyn International and Foster Partners). All firms within a grouping - both affiliates and wholly owned members - are listed.

Table 1 reveals that the World's leading firm by revenues - Korn/Ferry

International - is only the third largest in terms of offices. Ahead of Korn/Ferry are Heidrick & Struggles and the H. Neumann International / DHR Partnership. A couple of notes on the firms lower down the table; readers may be surprised to see that TMP Worldwide is only at position 15. Clearly, the highly acquisitive TMP have many more offices globally than the 32 listed here; however, the firm

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provides multiple levels of recruitment service, and even Executive Recruiting is provided under two brands - 'Executive Resourcing' and 'Executive Search'. For the purposes of this analysis, only those offices belonging to the top level Executive Search business are included.

We would anticipate that in 12 months time, the gap between the integrated firms and the network firms may be much smaller.

Table 2 looks at which of the firms are strongest in North America. Perhaps surprisingly, the Partnership of H. Neumann International and DHR leads the list - the North American offices being made up by the DHR side of the alliance (see news section for DHR acquisition). It is interesting to note that North America is dominated by integrated firms - If you consider DHR as being, at least within the US, a 'wholly owned business' - then all of the top 5 businesses are integrated.

The leading 'network' firm in the region is Boyden with 14 offices.

Korn/Ferry International boast the strongest roll out in South America, with 10 offices.

They are ahead of TRANSEARCH International who have 8 offices and Heidrick & Struggles who own 7. Five firms have 6 offices in the region.

The European top five is led by an American firm - Heidrick & Struggles who, through a combination of organic growth and acquisition, now boast 31 offices. Korn/Ferry International fail to make the European top five - with 25 offices in the region it takes seventh place.

Korn/Ferry International have more representation than the other firms in the Pacific Rim with a total of 16 offices.

Boyden have strengthen their presence in the region this year and take second place. Heidrick & Struggles and Horton International tie for fifth place with 10 offices each.

These figures provide a snapshot of an industry in turmoil. Offices are closing, firms are merging, networks are restructuring. We will carry an update of this review in 12 months time - and predict a very different set of results.

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Executive Search

in the

Information Age

By Ryan W. Eckel, Associate, The Directorship Search Group, Inc

he executive search industry is going through a particularly difficult period.

Recent unfavorable press on the competence of our industry has exacerbated the effects felt of the economic slowdown that persists through 2001, which has only been intensified by the events of September 11. However, it is important to bear in mind that it is general trends, not extraordinary events, that shape our business landscape. And it happens that we are in a period when these trends are profoundly dynamic. One trend in particular, instant access to information, fundamental force in business and economics, has grown dramatically over the past few years.

Much has been made of how this alters the way we conduct virtually every aspect of business, from managing supply chains to competing for market share, to paying our bills. However, only superficial attention has been paid to how the information age is affecting the executive search industry.

Thorough analysis reveals that, contrary to conventional thinking, executive search will thrive as a result of the

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changes brought about by the information age.

In business overall, the evolution of near-perfect information reduces the ability of firms everywhere to obtain traditional competitive advantages.

Smaller companies are able to increase their sales and marketing reach to levels that even the world's largest corporations were not able to achieve just a decade ago. Supply chains and inventories can

“....a company's performance is increasingly a result of the quality of its

how well they are organized to work together.” people and

be managed in real time using sophisticated software. As a result, the concept of the "experience curve," where companies that have been in business for a long time have certain cost efficiencies, is being redefined. The playing field has

been substantially leveled for upstarts.

It is already apparent that the increased availability and improved quality of information will have more profound implications for recruitment than simply the proliferation of job boards. The trend bears two related, yet distinct, consequences that will make executive search more important than ever.

First, almost all industries are becoming more talent-sensitive than capitalsensitive, as most forms of physical capital have become "commoditized", while talent capital remains unique and stratified. In other words, a company's performance is increasingly a result of the quality of its people and how well they are organized to work together. This has long been true of the professional service sector, particularly in financial, legal, accounting and consulting firms.

However, recognition of talent capital is also steadily becoming a reality in virtually every industry. As profit margins and barriers to entry are driven down by the commoditization of physical capital, successful organizations will not necessarily be those that, for example, have executives able to manage a supply

chain efficiently, but rather those with the leadership abilities and problemsolving skills to execute a successful strategy or create a brand. This point is not to be misunderstood: Both roles will continue to be important, but the pendulum is swinging to emphasize the latter. Simply put, continually improving the talent in your firm is one way in which you can still develop and retain competitive advantage.

For example, Wal-Mart has spent more than 30 years fine-tuning its pricing and inventory management methods, working its way up the experience curve.

For decades, its scale and operating efficiency were translatable into a distinct competitive advantage, and WalMart turned this into periods of tremendous growth. However, the recent advent of real-time pricing capabilities and dramatically improved inventory management software has reduced the value of the experienced gained in over three decades of retail sales. The entire Wal-Mart process has, in effect, been commoditized, allowing upstarts to enter the retail space at almost the same level (at least as far as pricing and inventory management is concerned) as the established player. Wal-Mart still can capitalize on its brand, among other things, and this is where having talented management will truly make a difference.

A much simpler (and oft-cited) example of an industry that has already learned the lesson of the difference made by talented management is the salt industry. Salt is as true a commodity as there is.

However, Morton, through clever marketing and branding, has been able to dominate the market, even as it sells its product at a premium. In this case, it was virtually a winner-take-all battle, and Morton won it with its people.

The second consequence of the information age that will benefit executive search is the increased liquidity of the job market resulting in a need for executives to "fit" in their organization.

The improved availability of rich information about employment opportunities has made it easier than

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ever for top executives to switch jobs. In an environment characterized by no less an authority than McKinsey & Company's "War for Talent," this yields a high rate of turnover, which is costly for employers. A less traditional means of obtaining an edge to remain competitive in industries experiencing a degree of commoditization is recognizing that real advantage can be found in the way in which companies retain their human capital. In this increasingly liquid job market, employee "fit" plays an ever more integral role in achieving efficiency. A company will move swiftly past its competitors if it can retain its talented management. This retention begins with the recruitment of executives who will mesh with the

Ryan W. Eckel organization, and do so quickly. As good as the job boards are at matching up an employer with a mid-level job seeker, they cannot begin to deliver this "fit" in a way that an experienced executive search firm can.

Mattel has learned this lesson the hard way. A leading toy manufacturer in the 1980s that wrote the book on branding "Barbie", the company recently experienced significant turnover in the management ranks. Executives in line to run the company left in droves, stripping Mattel of its leadership and morale, as Roger Brunswick and Gary Hayes wrote in the March 2000 issue of Directorship monthly. It is difficult to identify a single cause for the attrition, but it is generally

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acknowledged that the ability of CEO Jill Barad to communicate with her executives was suspect, despite her brilliance in marketing. Regardless of the reasons, the absence of leadership at Mattel, coupled with a disastrous acquisition that might not have happened had the company's management bench been stronger, has contributed to its losing more than 80% of shareholder value during Ms. Barad's tenure as CEO. Obviously the CEO lacked some critical leadership skills. However, the more relevant issue, as far as search consultants are concerned, is the composition of Mattel's executive team. A good search firm has the ability to recognize a CEO's or other executive's managerial strengths and weaknesses, and then find talented people who can work for that person.

A talented search consultant can make a difference in helping companies keep their best people. Job-hopping will likely increase because it is so easy to identify other opportunities. Employees can now go to a job board, type in their search criteria, and with the click of a mouse see hundreds of "matches", then apply for the jobs with another click of the mouse. Not only is job market liquidity costly for employers, but its growth comes at a time when they are already being squeezed in other areas. Proper use of a high-quality search firm will attract the kind of people who will not click and quit.

How can awareness of these trends improve your search practice? We can start by reflecting on how we add value for our clients. As human capital issues are becoming more and more strategic in nature, our clients will increasingly look to us as strategic partners. Ironically, the information age will call on search consultants to resurrect old-fashioned values. We need to establish tighter relationships with our clients and consult with them on their recruiting issues.

Close partnerships will allow us to identify the best people, and not just the best résumés, for our clients.

Furthermore, we should be leading the discussion on the subject of human

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capital. If we do this convincingly, our clients will be successful, and the potential for winning assignments will become boundless. Russell S. Reynolds, Jr., the chairman of our firm, recently commented that the search industry should hold itself up to the standards of the preeminent investment banking and strategy consulting firms. Taking this notion a step further, it is predicted that executive search will become even more influential and valuable than those two services, as human capital remains one area that will never become commoditized. Search will not become antiquated as a result of the information age; rather, provided that the industry understands the increasing importance of technology's role, it will become vital. www.search-consult.com

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Ryan W. Eckel: Associate-Healthcare Practice Ryan W. Eckel joined The Directorship Search Group initially as an Associate to Russell S. Reynolds, Jr., and now also focuses on the healthcare industry, particularly in the life sciences and advisory board areas.

Prior to joining Directorship, Mr. Eckel conducted human physiology research projects at the John B.

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Pierce Laboratory in New Haven.

Additionally, he was involved in a U.S. Olympic Committee exercise physiology study on the effects of living at various altitudes on aerobic performance. Mr. Eckel has also worked in the real estate investment and mutual fund areas at Phoenix Wealth Management, a Fortune 500 financial services firm in Hartford.

Mr. Eckel graduated with a BS from Yale, where he was Captain of the varsity cross-country team and earned All-New England honors as a member of the varsity track team. He is an avid skier and cyclist, and currently sits on the committee of the Yale Club of New York.

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EXECUTIVE SEARCH IN THE

IBERIAN PENINSULA

By Pilar Gumucio he Iberian Peninsula is a land of explorers, manifested in their discoveries of the New World. Today, at the start of a new century, the Spaniards and Portuguese continue to depict how dynamic and energetic they can be by breaking new frontiers -those of executive search.

In the last two decades, the Iberian Peninsula has increasingly become a very favorable and competitive market for business. A combination of factors has contributed to this development. The most important are the fact that Spain and Portugal joined the European Union as well as government efforts to liberalize the economy and labor regulations. Well-established political and financial mechanisms, relatively low wage levels, easy access to EU markets, and a favorable quality of life attracted many multinationals to set up subsidiary offices in Spain and later in Portugal. At the same time, local business began to develop and mature.

These actions, in turn, have promoted heavy investment, technological innovation, and contributed to a high level of economic development. In fact, Spain and Portugal are presently renown as two of the most dynamic countries of the EU, each having had more than five years of consecutive economic growth.

As the Iberian economy matures, becomes more specialized and sophisticated, the increase in competition has allowed the executive search industry to take root. The search and selection of top professionals is becoming a pivotal strategy to increase a company's success rate.

THE JOURNEY BEGINS The executive search industry began in the mid 70s in Spain and a decade later in

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Bruno Lehmann Egon Zehnder Portugal. In both countries, the first clients to use executive search were the multinational companies that had been accustomed to using this service abroad.

Eduardo Rogriguez Legorburu, Country Manager for Russell Reynolds in Spain explains how "at the end of the 70s and beginning of the 80s foreign banks began positioning themselves in Spain. Therefore, many of the clients came from the financial sector. Gradually other multinationals required this service in other sectors."

Julio Amo, President of TRANSEARCH and one of the pioneers in executive search in Spain, recalls that consumer goods and pharmaceuticals were also in high demand.

In Portugal, Carlos Melo Heitor, Managing Director for Glasford Portugal, explains how banking and finance were primary sectors that began using executive search. Carlos Morgado, Managing Director of Aims, reports that companies that operated in consumer goods, pharmaceuticals, and industry also required this service.

The pioneer of executive search in Spain was Egon Zehnder, opening an office in Madrid in 1974. A few years later, Spencer Stuart, Ray & Berndtson and Russell Reynolds followed suit. Key cities where executive search began operating were in Madrid and Barcelona.

In Portugal, the pioneer was Robertshaw that opened an office in Lisbon in the mid 80s. Years later, Egon Zehnder, Amrop and Boyden also opened their offices there.

Lisbon and Oporto were the first cities where executive search prospered.

A DYNAMIC MARKET The industry of executive search in the Iberian Peninsula has been very dynamic.

Many of the companies surveyed indicated that their annual growth achieved or exceeded 20%.

"The use of executive search has broadened in scope. At the beginning, the clients were multinationals and very few local businesses. Today, executive search is used by multinationals as well as family owned businesses", reports Julio Amo. Luis Truchado, Managing Director of EuroGalenus/Penrhyn, comments that the executive search market has matured.

Although it still needs to develop further, it now provides a "standard service that can be identified within subdivisions."

It is important to analyze what are the primary factors that have allowed the executive search industry to flourish in the Iberian market.

"The development of executive search was possible because of the investments of multinational companies", states Carlos Morgado. He explains that the increasing importance of telecommunications, consumer

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Carlos Melo Heitor Glasford Portugal goods and distribution sectors heightened the demand for professionals that operate in these sectors.

Bruno Lehmann, Managing Partner of Egon Zehnder, recalls the "almost missionary type work" that search consultants performed in explaining executive search to companies.

Eduardo Rodriguez Legorburu considers that this played an important role as search professionals selected talent that satisfied, or even exceeded, their clients' expectations.

Carlos Melo Heitor perceives a key factor as being "the appearance of more competitors".

He believes that this had the positive effect of further developing the market because it extended the service of executive search to incorporate the rest of the region and not only operate in big cities.

THE MOST RESPECTED In every profession there are always those that stand out. According to a survey searchconsult conducted among the executive search firms in the Iberian market; Spencer Stuart, Egon Zehnder, Russell Reynolds, Seeliger y Conde (Amrop) and Heidrick & Struggles are chosen as the most admired firms in Spain. Meanwhile, among the most respected firms in Portugal are Egon Zehdner, Heidrick & Struggles, Glasford Portugal, Horton International and Amrop.

Behind every firm are talented professionals. The results of search-consults' survey indicate that Francisco Gasset, Luis Conde, Jean Belda, Eduardo Rodriguez Legorburu, Julio Amo, Jose Medina and Luis Truchado are among the most respected search professionals in Spain. In Portugal, among the leading search professionals are

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Bruno Lehmann, Jose Gonรงalo Maury, Rafael Mora, Carlos Melo Heitor, Jose Caetano Silva, Maria da Gloria Ribeiro, Guilhermina Vaz Monteiro and Carlos Morgado.

ABOUT THE BUSINESS In the last few years, the most dynamic sectors that executive search have operated is in IT, telecommunications, pharmaceutical, consumer goods, and banking/finance. As a result of the economic slowdown, other, more traditional sectors, such as construction and industry, have also gained a bit of momentum.

Although everybody admitted that the economic downturn is having an impact, especially after the recent events in the United States, the general feeling is that the executive search industry has a brilliant future ahead.

Cross border searches have increased in relation to the process of globalization.

Spanish businesses, especially in the sectors

Julio Amo Brain Transearch of telecommunications and banking/finance, are expanding their horizons and venturing off to new lands -such as Latin America. At the same time, many foreigners are offering their services to work in the Iberian Peninsula. In average, executive search firms

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A major problem executive search firms must deal with is a shortage of qualified candidates. As the Iberian market becomes more sophisticated and mature, the level of competition increases as search firms battle it out for the best candidates and clients.

This problem is felt more in Portugal. Carlos Morgado explains that "Portugal is a small country and the opportunities are reduced."

Bruno Lehmann affirms that although "Portugal is a growing market, it will always be limited". In Spain, the majority of the search professionals consider the processes Eduardo Rodrigruez Legorburu Russell Reynolds work between 10 and 20% of all their assignments.

Eduardo Rodriguez Legorburu considers that when it is time to search for candidates abroad, it really "depends on the profile the client requires. Normally this is more common with multinationals". Julio Amo has a very similar opinion in stating "when a client requires a corporate position he will search throughout all Europe. He does not care about nationality. What is important is the professional's ability to fulfil the job profile."

Thee statistics depict that executive search firms' main business derived from searching and selecting local talent. Since many of the operations targeted local clients, it is only logical that the candidates are also local. This factor becomes fundamental when the profile required calls for providing insight on the regional business environment. This implies that one has a comprehensive understanding of the people, culture and language.

ITS NOT THAT EASY Despite the fact that executive search is a very dynamic market, search firms must confront every day challenges to successfully search and select candidates.

Luis Truchado Eurogalenus/Penrhyn of search and selection to be difficult, but not more or less so than in other countries.

Various search professionals believe that the executive search market would benefit from more structure. A clear example is: while in other countries an executive has a standard salary for a predetermined role, in Spain two executives - with similar job functions but in two different companies can be paid substantially different salaries.

The same search professionals admit that the market would gradually structure itself as soon as the supply of qualified candidates increased.

The executive search market is extremely competitive as many search firms are forging international alliances to improve their operative positions. Nevertheless, some smaller firms admit to having difficulty in competing with international firms that have greater financial and marketing power.

Another problem is the lack of information disclosed. Carlos Melo Heitor reports "most of the information regarding top executives is

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not public, even in large corporations. This information is public information in other countries." In turn, "a need for a very strong and effective research department" arises.

Many search professionals consider that it is important to establish a national association that would be able to establish ethical guidelines, just like the AESC does in the United States. In fact, many search professionals are concerned that unethical individuals were claiming to be executive search professionals.

Guilhermina Vaz Monteiro, Managing Partner for Horton, affirm that it is necessary to teach clients and candidates the difference between firms that operate in accordance with the highest professional standards, and the others.

KEY DIFFERENCES Some search firms recognize that there are differences in operating in a Latin market, similar to France and Italy, then operating in an Anglo-Saxon country. "Obviously there are some values that are taken more into account than in other countries," states Luis Truchado.

"For instance, this is a market that highly values interpersonal relations, much more than other countries. It operates in a more formal environment as face to face meetings are vital". As a result, candidates and clients are obtained by one's long-standing reputation. A search professional's success is directly measured by their network of personal contacts, their knowledge of different businesses and their ability to adapt to the changes occurring around them.

Search professionals observe that there is a lack of geographic mobility. In the case of Spain, Julio Amo admits that it is difficult to persuade executives to move from one region of the country to another, let alone to another country. This is based on the strong family, friends and cultural ties that Spaniards highly value." Meanwhile, in Germany and in the United States, the level of geographic mobility is much higher." Executive search firms are struggling to overcome this obstacle by offering candidates other benefits.

Although many consider the Iberian Peninsula as a single market, the fact is that there are differences between Spain and Portugal. Some Portuguese stress the need to differentiate between these markets.

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Guilhermina Vaz Monteiro believes the two biggest differences are the dimension of the markets as well as the particular opportunities generated by each market.

Carlos Melo Heitor states that "the cultural and social aspects are very relevant" since executive search is based on the human factor.

Previously, many international search firms began operating in Portugal from Spain to reduce their operative costs. However, the majority of the firms have now realized the long-term benefits of establishing their own offices in Portugal. This has strengthened their abilities to obtain prestigious clients and quality candidates.

WHAT LIES AHEAD Executive search in the Iberian Peninsula is certainly buoyant, with a bright future for many years to come. It has taken enormous steps in taking root and developing itself.

Today it is flexible enough to permit multinationals, middle-sized firms and small family-owned businesses to use this service regularly.

Within this context, one can only praise the executive search professional for having the resilience to educate and persuade its targeted clients and candidates of the benefits of using this service.

It is a fact that the corporate world will continue to change. It is up to the search professional to rethink the way he or she will attain future clients and candidates. What is certain is that the Iberian search industry will continue as long as clients continue to demand that executive search firms get them top candidates.

Guilhermina Vaz Monteiro Horton International

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Francisco Gasset: Quality is of the utmost importance According to the results of searchconsult's market review, Dr. Francisco Gasset was elected as the most respected executive search professional and his firm, Spencer Stuart, deemed among the most prestigious search firms in Spain. In an interview, Dr. Francisco Gasset outlines the principles that have probably contributed to having received this recognition.

What are the key principles and qualities that have made you among the most outstanding and respected within the executive search industry in Spain?

Various elements have contributed to receiving this recognition. First, it is important to think as a consultant and not just a headhunter. Secondly, we have always operated our business using a long-term perspective and not merely focusing on short-term results. Then there is the human aspect that the Spencer Stuart team in Spain portrays that is fundamental in creating our image as well as depicting a serious commitment to our clients. Finally, there is the quality of our work since we risk our image and prestige on a daily basis. The only way to maintain our reputation is by continuously demonstrating our high quality in our results.

What are the challenges that your company affronts?

Living in Europe, the most important challenge is how to position ourselves better within this continent. Since executives are now also in other countries, our vision must expand to incorporate them as well. Spain is opening frontiers. In this sense, South America is a market that is gaining momentum. Therefore, our challenge is international.

How long have you been working in executive search? Could you give us an anecdote?

I have been working in executive search for 22 years. I began working in this business in Spain, along with Ignacio Gil Casares in 1979.

Among my most interesting experiences is developing the image of Spencer Stuart. It has always been very satisfying the fact that I was able to develop, along with my colleagues, the company here in Spain as well as at an international level. For 8 years, I was a member of Spencer Stuart Worldwide Board of Directors, actively participating in the development of the company's global strategy.

At a local level, a satisfying moment has been contributing to develop a set of professional standards of the executive

boards in Spain. We have played a very active role in this process the last four or five years.

Taking into consideration your vast experience in this industry, what advice would you give people that want to work in executive search in Spain?

First, it is very important to have worked outside of the industry beforehand. If your focus is on executives, it is important to have been an executive yourself. This experience is very helpful and I believe that we have all achieved this at Spencer Stuart.

Another important aspect is to be a consultant and have a long-term vision.

Therefore, quality and high professional standards are fundamental elements.

Finally, you must have an international perspective. A pure local perspective is short-sided. You should incorporate yourself with search firms that already engulf this vision, since this is the market trend.

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According to the results of searchconsult's market review, Mr. Bruno Lehmann was chosen as the most respected executive search professional and his firm, Egon Zehnder, deemed among the most prestigious search firms in Portugal. In an interview, Mr. Bruno Lehmann explains the principles that have probably contributed to having received this recognition.

What are the key principles and qualities that have made you among the most outstanding and respected within the executive search industry in Portugal?

I often see ourselves, or compare ourselves, to lawyers or doctors because we cannot advertise if we are good. A good doctor or lawyer does not advertise. It's a profession that is based on reputation.

For Egon Zehnder, it is vital to deliver what we promise our clients and to abide by our principles. Our main principle is that the clients always come first. Whether it is in our advice, our work, or our way of presenting ourselves, we should always have the client in mind.

Another important element is the personal responsibility that we have with our candidates. Although we have a responsibility towards the client, who

is the entity that pays us, we also consider the candidate as very important. We believe it is important to give our feedback to the candidates that have not been chosen. In other words, when someone speaks, Egon Zehnder listens.

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What is the main challenge that your company affronts in the Portuguese market?

The main challenge is to monitor how the market is developing, where companies are going and where companies will need talent in the future.

In Portugal, as everywhere else, a war of talents is definitely underway. I believe a search firm must be able to respond to these emerging concerns.

They must be able to assist its clients in clients in retaining and motivating the right talent by advising them more in terms of internal career development, training, assessment and so forth.

How long have you been working in executive search? Could you tell us an interesting experience that you have had?

I have worked 19 years with Egon Zehnder. I spent the first 9 years in the Zurich office and the past 10 in Lisbon.

I am Swiss, but the reason why I am in Lisbon is because I grew up here and

had a Portuguese upbringing. In fact, when I moved to Portugal my parents were still living here.

An interesting experience: I recently received a phone call from an old client and candidate that the Lisbon office placed about 6 or 7 years ago in a multinational company. The chosen candidate was placed as sales director.

After 3 years he was promoted to VicePresident of the commercial area and is has now recently been promoted to CEO of the company. Obviously, this is a very rewarding experience for us. Even after so many years after making a closing, I still get tremendous satisfaction from that search because obviously we were able to match the right person with the right company.

Taking into consideration your vast experience in this industry, what advice advice would you give people that want to work in executive search in Portugal?

I believe that, in the end, you must live by what you promise your clients and candidates. Believe in what you do and never compromise your standards and values. It is important to be straightforward, clear and honest. Tell them how it is and treat others just like you would like to be treated if you were in their situation.

Leading search professionals in Portugal

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SPENCER STUART EGON ZEHNDER RUSSELL REYNOLDS SEELIGER Y CONDE/AMROP HEIDRICK & STRUGGLES GRUPO HUNTER BRAIN TRANSEARCH BRAIN TRANSEARCH RAY & BERNDTSON KORN/FERRY EUROGALENUS/PENRHYN

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EGON ZEHNDER EGON ZEHNDER HEIDRICK & STRUGGLES GLASFORD PORTUGAL TALENTSEARCH AMROP BOYDEN INVESCO TRANSEARCH HORTON INTERNATIONAL AIMS HIRE & TRUST

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Bruno Lehmann: The client always comes first

EXECUTIVE SEARCH PROFESSIONAL FRANCISCO GASSET IGNACIO GASSET EDUARDO RODRIGUEZ LEGORBURU LUIS CONDE CARLOS ZAZURCA JEAN BELDA JULIO AMO JUAN SEISDEDOS JOSE MED INA ELAINE AROZARNEA LUIS TRUCHADO

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BRUNO LEHMANN JOSE GONĂ&#x2021;ALO MAURY RAFAEL MORA CARLOS MELO HEITOR JOSE CAETANO SILVA MARIA DA GLORIA RIBEIRO EMIDIO CAMPELLO SOLEDADE MORAIS GUILHERMINA VAZ MONTEIRO CARLOS MORGADO NUNO FRAGA

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The Search Debate -

2001 Brussels russels was the setting for this the fifth Executive Search debate organised by Dillistone Systems and search-consult magazine.

Robert Brodsky of BEXSA opened the proceedings with a brief description of the impending changes destined for the Belgian Executive Search world - namely the new jurisdiction to be imposed by the Belgian Government together with a proposed tax on recruitment. He also reiterated that this was the first debate on Executive Search in a post September 11th world against an already ailing world economy. He paved the way for some of today's scheduled topics including a discussion about boutiques in the Belgian market and the changes faced by them.

The first speaker was Anders Borg of Hansar International and his chosen subject was Global Reach.

Mr Borg discussed what decides whether a search firm is successful or not in global work. On the side of building capacity and operating transnational assignments, he stressed the need for a focused project management held by one or two persons and avoiding splitting the responsibility up.

As to the type of corporate customer, he pointed to the fact that corporations where the line executives themselves see building and developing executive talent as one of their key tasks will help the search firm to achieve excellence of work, while companies with a "black-box" attitude to

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executive search will be less responsive to the global requirements and risk suboptimizing.

The next speaker was Etienne Reeners of Hightech Partners. Mr Reeners talked about the structure of his IT boutique business.

Hightech Partners for a long time operated around a Brussels hub with consultants based across Europe.

Increasingly, however, the firm found that it needed additional representation in the Anglo Saxon markets and so his firm joined the boutique network ITP Worldwide. Today ITP Worldwide includes 11 firms and Reeners argues that this type of network is the preferred approach for search, allowing as it does local entrepreneurs to operate with global coverage. Mr Reeners revealed that plans are afoot to expand the network in Asia and South America.

The next speaker was Mary Pitsy of Boyden. Her presentation, "Supping with the devil" focussed on ethics. She talked about the ethical problems with rewarding executives with stock options and also explained the Boyden stance on the problems of size within the search industry - namely, that as firms grow they increasingly face problems with off limits.

Alexandre Paternotte de la Vaillee of Stuckens Paternotte Eurosearch also considered the size issue. His presentation was entitled "Small is beautiful" and he set out to justify this claim by discussing an assignment which his firm had completed

By Paul Cowap

successfully after it had previously been cancelled by one of the major firms. He also admitted that he gets a kick from working in a smaller firm environment and would not wish to be a 'corporate man'.

The final speaker was Erwin De Wolf, standing in for Marc Swaels of Korn/Ferry International.

Mr De Wolf discussed how his firm was moving from being purely a search business to one that provided "Leadership Capital Solutions". He argued that in today's turbulent world, clients are in need of help in the entire process of change management - it is not enough merely to parachute in an executive and leave him or her to get on with it. He went on to discuss the models and systems used by Korn/Ferry to facilitate this.

Following the main presentation a lively question an answer session began. This touched on issues such as psychological testing (in Belgium search firms may not provide this service unless they use a trained psychologist), fees, management appraisal services, ethics and opportunities for growth. search-consult and Dillistone Systems would like to thank everyone involved in making the event a success.

www.search-consult.com

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Key moves in Executive Search this month Gould, McCoy & Chadick, Inc has appointed Van G. Young Managing Director, specializing in the technology, industrial, and consumer industries. Most recently, Mr. Young was a Partner with a technologyfocused executive search firm. From 1995 through 2000, he was a Consultant with Heidrick & Struggles based in New York. Mr. Young has completed numerous search assignments for senior level executives in general management, marketing, sales, and key functional roles including Board Members.

Wesley, Brown & Bartle has announced that Stephanie L. Battle and Kenneth Arroyo Roldan have been appointed president and chief executive officer respectively. The firm was established 30 years ago and specializes in Diversity Search.

John Dembitz has been appointed a UK director of Boyden. Dembitz is a former partner of Korn/Ferry International, where he developed a pan-European professional services practice, and senior consultant with McKinsey & Co, the management consultancy.

Managing Director of the firms London office. The firm has also announced the recruitment of Marcelo M端ller in Sao Paulo, Birgitta Kallving as a consultant in Stockholm, Ulf Ericsson as a partner in Gothenburg and Kenji Tomono and Motoji Ishikawa in Tokyo.

Christian & Timbers has announced that Charles A. Durakis, Jr. has joined its Columbia, Maryland office as vice president. Durakis brings over 16 years of success in executive search to the firm's Mid-Atlantic Operations. He specializes in filling senior management positions for early-stage start-ups and the Fortune 1000, particularly in the life sciences and general technology markets.

John Smyth, formerly of First Active PLC is the Managing Director for the new Dublin office of Sanford Rose Associates.

Ian Blackie has Director of the TRANSEARCH replaces Brian

been named Managing Johannesburg office of International.

He Hosking who is now

Susan Coffin joins Spencer Stuart as a Director in Chicago.

Ms Coffin was previously a principal at Heidrick & Struggles.

Marcia Pryde joins Heidrick & Struggles from A.T. Kearney as a Partner.

Key2people has recently opened in Milan.

They are headed by Francesco Benvenuti formerly of Ergon Executive Search.

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

SEARCH-TALENT A Unique Recruiting Service Exclusively for the Retained Search Sector Providing a personal and discreet recruiting service to the Executive Search sector, for Executive Search firms looking to recruit key talent and for Professional individuals looking for career progression. Our carefully selected recruiting team boasts experience in Executive Recruitment, Research, Executive Coaching and Management Consultancy; we provide a professional service to a Global client portfolio.

Partners, Principals, Consultants and Researchers can be assured of a professional, discretionary and confidential service.

If you would like to speak to our specialist consultancy please call and ask for Alex Colvin.

Tel: +44 (0) 20 7749 6102 Fax: +44 (0) 20 7729 6108 24hr: +44 (0) 7711 326 188 E-mail: talent@search-consult.com Calvert House, 5 Calvert Avenue, London, UK, E2 7JP

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