One of the most difficult tasks entrepreneurs face as they grow their companies is bringing in high level management. Typically, this includes a Chief Executive Officer, (CEO), a Chief Financial Officer (CFO) a Vice President For Marketing (VP Marketing) and others. Locating and then convincing qualified and experienced managers to join your growing company is a major undertaking. The best candidates are already working somewhere else, and they also already have attractive compensation packages, including options. Where can you turn to for help?
An avid reader of Enable, Rebecca Channack, has the answer. Rebecca is a senior associate at Heidrick & Struggles a leading Executive Search firm with offices worldwide. According to Rebecca, Executive Search Firms provide entrepreneurs with numerous advantages in the recruiting process, as outline below:
Executive Search Firms Provide Guidance And Save Time
An Executive Search firm's services assure a close "fit" between a client company and the required executive and only this will allow a company, at any stage in its life-cycle, to maximize its opportunities.
Executive Search consultants bring a thorough understanding of a client's competitors and target market, they provide strategic guidance in successfully defining the type of candidate needed. International Search firms offer a complete understanding of the foreign experience required and compensation levels of those candidates filling positions outside of local parameters, thus enabling them to effectively bench-mark candidates. This gives greater quality and depth to the objective and informed advice provided.
Retained on a consultative basis, Executive Search fulfils client' senior management requirements using a thorough and systematic process to identify, evaluate, and recommend the best qualified candidates in any specific market-place. The best firms do not believe in shrouding methodology in mystery, but readers must bear in mind that each search has different requirements and points of emphasis and accordingly the search firm must be flexible in adapting its approach to meet client needs.
The Search Process
In general, the search process includes the following core stages:
- Briefing - Working closely with key client contacts to gain a clear understanding of the company, its sector position (including markets and competition), the post and the necessary skills and qualifications of the person sought.
- Position specification - Detailed company, position and person profiles and an outline search strategy are agreed, which become the blueprint for the search. Experienced firms are able to assess realistically demands and expectations.
- Candidate identification - Potential candidates are identified and researched using in-house expertise based on original research and discussions with informed individuals for valuable, objective insights on people and relevant issues.
- Strategy review - Regular review sessions are held with the client as appropriate in order to detail targeted organisations and to give feedback on market reaction to the client
- Candidate Evaluation - Qualified candidates identified during the course of the search are interviewed and evaluated against the agreed profiles.
- Candidate Presentation - A detailed confidential profile for each shortlisted candidate comprising biographical data, career and remuneration and a full appraisal against the specification are prepared. Interviews are then scheduled between the client and candidates.
- Facilitating - Client and candidates are counselled throughout the interview process. We assist in the finalisation of the structure of an attractive compensation package, and to resolve any issues arising
- Reference checking - The referencing process begins and comments made by referees are reviewed with the client.
- Follow-up - Post appointment, contact both with client and candidate is maintained to help ensure the candidate's successful integration into the new company.
What is the justification for using an Executive Search firm?
Most personnel agencies do not search exclusively for senior executives. Their modus operandi is well suited to low and mid-level management but they cannot consistently deliver excellence with the cultural match, so necessary at senior level.
The same problems exist with Internet recruiting services, which have begun to spring up. There is a distinct difference in the skills needed to attract different levels of management. Senior executive roles are best serviced by Executive Search firms, who are uniquely positioned to search out top level executives.
There are many reasons why the Executive Search firm is the preferred choice of partner for many companies. The recent trend of corporate "right-sizing" by eliminating certain layers of management has effectively reduced the internal pool from which talented managers can be drawn. Companies aggressively seek outside talent and, as a result there is an increase in competition for management talent, which also results in executive turnover.
Furthermore, the activities of private equity investors and venture capital firms have been accelerating at such a pace that they often find it difficult to identify leaders for the companies in which they invest. Businesses now have a greater need for executives with diverse leadership skills and the process of identifying and evaluating such executives is becoming more difficult.
First class executive management is key to the success all companies in the global marketplace. Most companies have realized that good engineers with bad management will fail every time. Therefore, when you begin your quest for top level management, one of your first steps should be to work with a leading and experienced Executive Search Firm.
Next week we will cover recruiting via the Internet. My special thanks to Rebecca Channack of Heidrick & Struggles for here contribution to Enable.
Published by Israel's Business Arena on January 18, 2000.