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Entries in Executive Search Definition (3)

Tuesday
11Aug2009

Executive Search and the meat market

Some buyers create an image of Search Consultants in a single dimension, effectively turning them into a commodity. They can then proceed to buy executive search on price (as search consultants all search and find "people" anyway). In these challenging times price will of course be a factor, but price should never be the cause of a rejection – unless the consultant cannot establish and communicate the value and ROI the delivery of his service will bring to the client.

The same applies to job boards and social networks such as Linkedin and Xing. Their success perverts their purpose, and leads to an increasing commodification. Most of the executives I know do not give a damn about Linkedin or Xing anymore, unless they are really, really desperate for a job. We use these sites and networks only as a passive resource, even if a recruitement researcher with good knowledge of Google’s scripting language can run circles around the benefits of a Linkedin or Xing membership.

Furthermore, I am astonished by the ratio of irrelevant applications to positions posted on job boards and networks such as Linkedin (if those "open" positions are genuine to start with). Nick Corcodilos has some excellent posts in his blog on this subject.

To escape a one-dimensional image, Search Consultants must control their marketing and message. Their communication has to be laser-focused and singular, and their positioning should be narrow. I always stress I mainly work in the emerging markets zone, with a majority of assignments in technology.  Though it sounds counter intuitive and contrarian: no one who tried to be many things to many people succeeded (except in the rare case of GE). To think you are above the fundamental marketing principle of focus, you’re headed straight for crapshoot.

The meat markets of recruiting are roamed by headhunters, those who won’t focus, and don’t have a clue of value creation, pricing and ROI. Those consultants surrender the control of their marketing and image to the buyer who, for reasons of convenience, but mostly of ignorance, will then issue a request for “bids”. This for a critical and sensitive service assumed to be similar to tenders for computers, car fleet extensions, office furniture, wall paint, toilet paper and so on… 

Stay out of the Meat market. Take control of your marketing, hone your message, focus and do not be many things for many people.

Monday
27Jul2009

Buy and deliver the consequence, not the service

A plumber offering to replace tubes and pipes, a lawyer proposing to write contracts or a doctor claiming present a diagnosis will loose out quickly to plumbers proposing to plug your leaks quickly, efficiently and economically; to lawyers structuring your acquisition in a beneficial and solid manner; and to doctors curing your ailment fast and without complications.

The successful sales and marketing of services does not consist in the presentation of a series of actions that constitute the service,  but in the offer of an efficient, effective and lasting solution.

HR buyers often approach search consultants with the request to find "someone", and the majority of search consultants present a service consisting of "finding candidates". The former immediately come up with job descriptions and desired profiles; while the latter in return will pitch a search system and methodology. Both however forget to define the value to be realized from the transaction, even less to "dollarize" that value. It is similar to the mute communicating to the deaf, though in this particular case they can find an agreement.

Does the client organization want to double or triple sales, increase revenue per employee, gross margins, to reduce dramatically employee churn, inventory leakage, improve cash flow from operations, reorganize the business unit to such extent that the channel has more depth, customer satisfaction increases, manufacturing yields improve dramatically,... ? I am astonished by how few companies want to initiate a search without a clear idea of what exactly they want to improve, least by how much; and by the search consultants who will avoid any inquiry beyond the plain obvious related to the act of finding an executive.

Of course, job descriptions contain a list of responsibilities described as "the management of the sales team", "report to the VP Manufacturing", "present leadership in customer satisfaction", "deliver great quality", "manage operations profitably and efficiently", "grow international sales" etc...  They are common to the majority of job descriptions produced by HR departments. However, they do not cover the tangible and intangible improvements in value to be delivered by the executive to be brought in.

Search consultants must offer a solution to a business problem. Though that business problem is related to filling a critical and sensitive position, the solution is found not in the search for an executive, but in delivering someone uniquely qualified to create the specific improvements sought.

Search consultants who relentlessly ask questions to frame and define the value sought by their prospect are the right people to entrust the critical task of bringing in executive power. Shy away from those consultants pounding on their search methods and systems: hammering with a blindfold on is guaranteeing a risky and painful outcome. Caveat Emptor.

Wednesday
11Mar2009

What is Executive Search ?

The first question often asked during a visit to prospective candidates and clients in emerging markets is about what an Executive Search consultant does, and how he works. In the US or Western Europe , HR executives and hiring managers have gone through many pitches from search consultants and the concept is already known to a great extent. I face the question quite regulary as what and how I achieve what I do as Executive Search Consultant. In this article I will answer the what part of the question, and focus on the how in a series of future articles.

Executive Search is a service usually provided by external consultants with the aim to solve a particular business problem (some firms I worked with, Google for instance, have their own talent acquisition team and only rarely require outside assistance). The service aims to solve that problem through filling a critical and sensitive position in the company with the best available talent in the market.

I have come across consultants who claim they focus on filling positions determined by their hierarchy in an organization, say CEO and CEO -1 for small companies, and to -3 or -4 for large multinational firms. While this could be true in most cases, defining the focus of service in function of a company hierarchy is too limited, because it misses the dimension of value implied by critical and sensitive. Let me illustrate this. A Multinational Internet Security company retained me in 2007 to find them a Sales Engineer for their teams in Czech Republic, Turkey and the United Arab Emirates. I should correct myself, not just "a" Sales Engineer, but the best available professional, CISA certified, with project management and pre-sales or consultancy experience in each of those countries. They simply wanted to meet, and interview the best available professionals in those countries, and select the best individual, nothing less. This firm was therefore willing to pay our retainer fee because they clearly understood the value proposition of the service.

The tangible reasons why companies resort to Executive Search are manifold. An Executive Search Consultant could be mandated for the confidential replacement of an under performing senior member of the management, filling an executive position which became available for various reasons, expanding management bandwidth with new expertise during periods of fast and sustained growth, bring in the best expertise when entering a new geography or market, compare an internal candidate for a senior management slot with some of the best outside candidates for the role.

Executive search is therefore a rather small subset of recruiting, and involves consulting both the client and potential candidates. Furthermore, it is definitely a very focused activity, specifically aimed to bring to the client the best available people in the market. The impact of a great hire on a balance sheet  of the employer can be tremendous, and even a marginal improvement in overall performance can bring a significant revenue upside. Imagine then the burden of the wrong hire and resulting under performance, additional intangible costs related to higher churn, inefficiencies and lost opportunities.

Great marketing, brands, logistics, strategies, IT, manufacturing are meaningless without three key factors:

  1. Management
  2. Management
  3. Management

The prime responsibility of the Executive Search Consultant is to bring this vital and essential business ingredient of to the client Company.

One important last note is that Executive Search cannot create the best people, a feature some prospective clients seem to expect. Though this might sound quite obvious to some, I did not accept mandates because clients expected me to find candidates below market price, or willing to consider contractual terms where they would be foregoing the benefits of their existing employment. Why should exceptional executives, successful in their career, be willing to consider an offer below their current package ? There are HR executives and hiring managers who are troubled and disturbed candidates reject such offers. Hence, just as companies should pick their Executive Search Consultant carefully and in a well informed manner, consultants should equally assess properly what value the client is expecting to materialize.