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2008 / ISSUE 32

The International Executive Search Magazine Published by Dillistone Systems

Announcing The Executive Search Consulting Conference - March 10, 2008, New York

HR Interview: Stephen Sidebottom, Head of Human Resources for Europe at Nomura International Succession Challenge for Search Firms Diversity of Thought: The Next Frontier Executive Search in CEE On-Boarding: A New Take on an Old Practice

EARLY BIRD DISCOUNT OFFER AVAILABLE NOW! For details turn to page 6-7 or visit www.search-consult.com/newyork2008.

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EARLY BIRD DISCOUNT OFFER AVAILABLE NOW! For details turn to page 17 or visit www.search-consult.com/research2008.

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Success... ...is About People Who Lead. Boyden has been leading for over 60 years, founded with a vision to match top executives with exceptional companies, so each can be successful. Today we continue to lead through innovations that ensure our clients reach their goals now, and in the future. Allow us to introduce to you the enterprising people of Boyden, and show you how our global experience and personal commitment can help your organization achieve its potential. Visit us at www.boyden.com to find the Boyden office near you.

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Joseph Daniel McCool is a writer, speaker and advisor on executive search best practices. He is the author of Deciding Who Leads, a forthcoming book exploring the influence of the global executive search consulting profession on corporate performance, culture and profits that will be launched at search-consult’s March 10, 2008 conference in New York City. Mr. McCool is a senior contributing editor with ExecuNet and the former editor of Kennedy’s Executive Recruiter News and its International Directory of Executive Recruiters. His views on management succession have been cited in BusinessWeek, The Economist, The Financial Times, The Wall Street Journal and other media around the world.

MANAGING DIRECTOR Jason Starr jason@search-consult.com

Just Say “No. Thanks…”

EDITORIAL Pilar Gumucio editorial@search-consult.com

Let this edition of search-consult reach you with a valuable introductory lesson: Sometimes it’s far better to decline a potential client’s invitation for a formal review of your experience and capabilities as an executive search consultant than to have them qualify you as another ‘vendor’ and allow them to dictate the terms of leadership recruitment. That would certainly appear to be the case with one of the world’s best-known companies, which has put a former Procurement executive in the lead of its transformation of relationships with executive search firms. Mind you, this individual claims that cost-control isn’t the driving factor in his company’s decisions about which executive search consultants to engage and add to its preferred supplier list. But given that it uses a standard, boilerplate Request for Proposal document to qualify firms to be considered, and expects discounted fees right out of the gate, I remain unconvinced. What’s more, this particular global company, one with a brand name each of you would recognize, stipulates in its agreements with its chosen executive search firms that the desired time-to-fill for each of its executive-level vacancies is a mere 60 days. Yes, you read that right. I wonder how many searches left in the hands of its internal recruiters are completed in that time. Now, if this global organization isn’t already appealing to you as a retained executive search consultant, consider the fact that, as part of its engagement terms, it expects its chosen search firms to float the resumé or C.V. of any exceptionally well-credentialed individual its ‘search partners’ happen to meet in the course of their regular business, and yes, outside the scope of any specific search assignment.

PRODUCTION Margaret Jaouadi margaret@search-consult.com

ADVERTISING/SUBSCRIPTIONS/REPRINTS UK and Europe North and South America South East Asia and Australia Yann Le Leyour enquiries@search-consult.com or log on to www.search-consult.com

search-consult.com Third Floor, 50-52 Paul Street, London, EC2A 4LB, 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 quarterly by Dillistone Systems Limited, Third Floor, 50-52 Paul Street, London EC2A 4LB for US$96 per year and printed by Mr. Bloom Ltd, Sopot, Poland, www.mrbloom. com.pl. Periodical Postage PAID at Jamaica, NY. POSTMASTER: Send change of address changes to Dillistone Systems Inc., 50 Harrison Street, Suite 201A, Hoboken, NJ 07030. 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.

© Copyrights 2008 Dillistone Systems Ltd

DOESN’T THAT SMELL OF CONTINGENCY HEADHUNTING? Oh, and if you’re not already chomping at the bit to add this big, global company to your own client list, just consider that these engagement terms conveniently leave out any guarantee of actually landing any business from this hiring organization during the course of its contract term. In fact, some of the firms who found these terms quite appealing have yet to land any business from this hiring organization. The lesson here? Well, for starters, it’s clear that the dysfunction (some of it, admittedly, caused by some search consultants) that has led some large, multinational companies to take things into their own hands and dictate the terms of engagement with executive search firms has indeed led to a ‘dumbing down’ of retained executive search consulting. But you needn’t buy into it, or contribute to it. That’s right, the choice is entirely yours. After all, doesn’t this example present a good study of when it makes sense to simply turn down a potential client’s overtures or otherwise ignore or walk away from an attempt to redefine your practice with a potentially hollow promise of future search assignments? The work of you and your search firm are indeed defined as much by the business you choose to pursue and execute on behalf of hiring organizations as by the assignments and relationships you choose not to pursue or take any further. Sometimes it’s just better to say, “No. Thanks….” And better to focus your energies on far better opportunities to grow your business. Joe McCool is a speaker at the upcoming Joseph Daniel McCool joemccool@comcast.net

Executive Search Consulting Conference. In addition, he will be running a unique workshop on best practices in business development. See pages 6-7 for more details.

ISSUE 32 2008 search-consult

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n a highly competitive industry such as financial services, being able to obtain talent that will understand what the clients’ needs are, deliver tailored innovative solutions and be able to operate on a global basis is paramount for a company to be successful in today’s fast-paced business environment. Nomura is a perfect example of a successful global financial services group attributing its success to the company’s leadership and talented employees that are executing a well-thought strategy that optimizes the Asian investment bank’s unique strengths, skills, and expertise in providing clients a diverse line of competitive products and valueadded financial and advisory solutions in 30 countries. Nomura’s operations include global markets, global investment banking, global merchant banking, asset management and domestic retail in Japan. Stephen Sidebottom, Nomura’s Head of HR for Europe, spoke to search-consult to explain how this leading global financial house’s success is dependent on making sure its business and human resource objectives are perfectly aligned, especially when it comes to acquiring top talent. This, obviously, means that Nomura must have a clear vision of what to expect of its executive search providers, HR department

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By Pilar Gumucio

and the corporate view of where the business is heading in order to make the most informed decision when attracting and attaining outstanding executives. INVESTING IN ITS FUTURE When making an executive hire, Sidebottom considers executive recruitment to be strategic as it “can have a critical impact on the performance of the firm as well as on the existing teams and how they work”. As a result, when hiring for an executive position Nomura will usually work with a search provider to help find them the right executive. Even if the company decides to fill that position internally, they will still consult a search consultant for external benchmarking. He explained: “We work closely with those people who understand our business and the external market, and can give us the information that we need to make the best possible decision in hiring a new recruit.” Sidebottom works with a select group of search firms, establishing strong partnerships with consultants that “are able to understand and give value to both the process of finding talent and also understanding what we are doing with it.” He advises search firms to make sure they offer their clients a whole

range of services that can cover external benchmarking, market mapping and consulting. Nomura’s Head of HR explained that in order for an executive search firm to really be effective, search consultants must understand the business very well, have access to managers, have access across a range of products so that they can see how Nomura are leveraging across those products and across business opportunities and are not isolated in one business area. “In return, because they understand us, they are able to represent us better externally; they are able to provide consistency; they are able to explain and tell our story; they are able to explain how our businesses fit together and how we make money. Therefore, they are better able to articulate to candidates what are the opportunities for them,” stated Sidebottom. He added that in order to have a successful search, an open dialogue is fundamental. Nomura expects executive search partners to provide feedback, identify gaps and advise it on what could be done differently. “It is not always a question of the search firm not providing,” continued Sidebottom. “Sometimes it is us being unrealistic, other times the consultant will require us

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to test and clarify our own objectives by trying different angles and approaches.... My experience has shown that these partnerships can be very successful as long as both sides maintain an open dialogue and give honest feedback.” IT IS NOT AN HR JOB Sidebottom noted that his company doesn’t use search firms for HR processes such as induction and assessment. The main reason he advocates is that a company can’t effectively outsource the fundamental workings of how your business works and how your organization operates. According to Nomura’s Head of HR, a company “can’t outsource a set of issues on how to make people feel connected or at home. The organization has to embrace these people and what HR does within this process is to make it as easy and effective as possible. “ HR is a facilitator and a lubricator within this executive recruiting process, engaging with these potential candidates so that they fully understand the role, the culture and how the organization works from the inside. If you outsource this task, then you are converting it into a transaction. By doing this, “then you will lose some real value,” Sidebottom stated. He does expect his search providers to follow up with the candidates. If there is information that needs to be fed back to Nomura, the company would view this as part of the search firm’s ongoing service. Sidebottom advises executive search consultants to “focus their efforts on their core expertise of understanding the market and understanding the talent opportunities that are out there. Being able to combine these with a detailed understanding of how we work and how we succeed gives you some powerful insight.” ESTABLISHING A CRITICAL BALANCE Referring to the process of selecting the right search provider, Nomura’s HR executive insisted that companies must select wisely: be sure that the search

Stephen Sidebottom

consultant understands the market and is willing to take the time to invest in getting to know and understand the client’s needs rather than just taking a transactional approach to filling the search. He elaborated: “It is critical that search providers understand how to operate the balance between the three pieces of a successful search, which is: the business, the HR function and the search provider. If they don’t understand this critical equilibrium then I simply don’t work with them.” According to Sidebottom, some recruiters focus too much on the relationship with the manager, while others only focus on the HR function. Neither of these approaches are sufficient, with inconsistencies emerging and more searches not being able to be filled accordingly. The most successful relationships with executive search firms, explained Nomura’s Head of HR,, are when the consultants work seamlessly and are proactive with both the HR and the business teams, trusted and respected by both parties. BEING PROACTIVE Sidebottom advocated a proactive HR department that is involved throughout the entire process of a strategic hire, adding

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real value and “not just rubberstamping at the last stage.” He elaborated: “HR must take an active role in helping shaping the search, understanding what we are looking at and being involved in the discussion with the recruiters and the business team in what they want, how they are going to change their team and how are they going to create vibrancy and innovation with the new executive.” The answers are crucial, allowing each person involved in the process to make better decisions on whom to hire, on how much to offer and on how to structure the reward package. The elements required for obtaining a successful search may be obvious as a delicate equilibrium between the search provider, HR and the business is fundamental. Nevertheless, the reality is that there are more strategic mis-hires today than ever before. As a result, it is evident that many companies and search providers are not upholding this critical balance. This may be a good time to see if you really are. Listen to Sidebottom’s advice and play a proactive role in making your organization, as well as your clients’, as successful as Nomura’s. Stephen Sidebottom joined Nomura International plc as Head of Human Resources in September 2004. Prior to joining Nomura he was Global Head of Corporate Finance and Advisory HR, and Global Head of Organisational Development at Dresdner Kleinwort Wasserstein. In this role he was responsible for the provision of HR to the Corporate Finance and Advisory business globally and for establishing global training, performance management and OD functions as well as for new talent recruitment at graduate and MBA levels. Stephen spent four years with DKW; before that he spent two years at Commerzbank AG as Head of HR for their UK business, building a new HR function to support their securities business; and prior to that he was a director of HR for the investment banking and structured finance businesses of Barclays de Zoete Wedd/ CSFB. Stephen is currently Chairman of the City HR Association and has fellowships with the CIPD and RSA. He has an MA in Modern History and Economics from St John’s, Oxford and an MBA from the London Business School. In 2007 Stephen was ranked 37 in UK magazine Personnel Today’s Top 40 HR Power Players.

www.search-consult.com For more information visit: Web: www.nomura.com

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The practice of executive search in the Americas will soon reach a critical tipping point. Corporate demand for exceptional leadership talent continues to grow along with client expectations of long-term value and candidate expectations of career stability - all against a backdrop of record low executive tenure. So what next for the client relationship? How will the emergence of social networks shape the future of recruitment research? Will client pressures around the global sourcing of candidates force more boutique firms to find international partners? And how might the principal of today’s executive search firm realize a return on their investment in the firm? Join search-consult for its inaugural Americas conference for answers, insights and practical advice about tackling these and other important strategic issues that will shape the future of executive search consulting and the value it drives for corporate clients. Plus, be among the first search consultants to receive a copy of Deciding Who Leads: How Executive Recruiters Drive, Direct & Disrupt the Global Search for Leadership Talent, a groundbreaking book by search-consult featured columnist Joseph Daniel McCool.

Jacques “Jay” Andre Booz Allen Hamilton Vice President and Executive Hiring Leader

Colgate-Palmolive Director, Global Staffing

Kerri Arman

John A. Byrne BusinessWeek Executive Editor

Hess Corporation Director, Talent Acquisition, Marketing & Refining

Boyden Global Executive Search President and CEO

Caroline McClure

Joseph Daniel McCool

Janet Jones-Parker Doublier

Harcourt "Buzz" Patterson

Christine Bilotti-Peterson

Lockheed Martin Head of Executive Recruiting

search consult Author and Featured Columnist

Jones-Parker/Starr Founder and Managing Director

Jim Cavnar

IRC Recruitment U.S. Board Chair

Chris Clarke

The Hartford VP, Executive & Strategic Staffing

Mark D. Ernsberger

Lauryn Franzoni ExecuNet Vice President & Executive Editor

UBS Head of Diversity Wealth Management U.S.

Alain Tanugi

Andrew Walker

Steve Watson

Farr Associates President and CEO

TRANSEARCH International Chairman

IESF Joint President

Greg Jones

Stanton Chase International Chairman

Optional workshops Search Execution and Client Management Workshop

Leaders: Betty Wong Tomita and Gai Galitzine Target: This one-day workshop is for intermediate and experienced Executive Search professionals. Cost: EARLY BIRD RATE US$599 / GBP299 / EURO415 (valid until January 31, 2008.) Standard rate: US$799 / GBP389 / EURO535 Venue: Mid Manhattan Date: March 11, 2008 (9am - 5pm)

The Retained Executive Search Training workshops are designed to meet training needs of a profession in transition. Our industry does not have exams as in the legal, audit and financial services professions, but we do recognise the importance of delivering high quality professional consultancy services to clients – none of us would be in business if we did not deliver on this. The prevailing model for best practice is a mixture of good understanding and systematic coverage of the market place and effective use of good network of experts in each industry. Through presentations and small discussion groups participants will have the opportunity to review with their peers current search industry issues including: • Client Management – developing and maintaining relationships. • Search Management – ongoing client communications, management of research and systems. • Candidate Management – assessments, reports, reference checking and closing negotiations.

Best Practices For Business Development – Tactics To Disrupt & Elevate The Executive Search Experience

Leader: Joseph Daniel McCool Target: This optional event is only available for delegates attending The Executive Search Consulting Conference in New York on March 10, 2008. Cost: US$475 / GBP250 / EURO350 Venue: The Princeton Club of New York Date: March 11, 2008 (9am - 12pm)

It’s time for a fresh approach to differentiate and elevate the client and candidate experience with today’s executive search consulting firms and to disrupt the traditional approaches to developing new business. Shifting corporate priorities and lingering misconceptions about the value of retained executive search should move you to differentiate not only your business development efforts but also your stewardship of the firm’s brand, culture and services portfolio. Gain new insight on how to separate from the status quo and reengineer executive search for maximum client value and the highest return on your investment in business development.

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Agenda 8am REGISTRATION AND CONTINENTAL BREAKFAST

DECIDING

9am WELCOME REMARKS Jason Starr, Publisher of search-consult magazine and President, Dillistone Systems

WHO LEADS

9:15am INTRODUCTION John A. Byrne, Executive Editor, BusinessWeek

How Executive Recruiters Drive, Direct & Disrupt the Global Search for Leadership Talent

9:30am KEYNOTE ADDRESS - Deciding Who Leads: How Executive Recruiters Drive, Direct & Disrupt the Global Search for Leadership Talent Joseph Daniel McCool, Author and Featured Columnist, search-consult 10:30am SPONSOR PRESENTATION 10:40am NETWORKING BREAK 11am TBC 11:30am PANEL DISCUSSION: WHAT’S NEXT FOR THE CLIENT RELATIONSHIP? MODERATOR - Janet Jones-Parker Doublier, Founder and Managing Director, Jones-Parker/Starr Jacques “Jay” Andre, Jr., Vice President and Executive Hiring Leader, Booz Allen Hamilton Kerri Arman, Director, Global Staffing, Colgate-Palmolive Christine Bilotti-Peterson, VP, Executive & Strategic Staffing, The Hartford Jim Cavnar, Director, Talent Acquisition, Marketing & Refining, Hess Corporation Greg Jones, Head of Diversity, Wealth Management U.S., UBS Caroline McClure, Head of Executive Recruiting, Lockheed Martin 12:45pm NETWORKING LUNCH 2pm HOW SOCIAL NETWORKS WILL CHANGE EXECUTIVE SEARCH Lauryn Franzoni, Vice President & Executive Editor, ExecuNet 2:45pm PANEL DISCUSSION - GLOBAL PARTNERSHIP: THE NEXT CHAPTER Chris Clarke, President and CEO, Boyden Global Executive Search Harcourt ‘Buzz” Patterson, U.S. Board Chair, IRC Recruitment Alain Tanugi, Chairman, TRANSEARCH International Andrew Walker, Joint President, IESF (International Executive Search Federation) Steve Watson, Chairman, Stanton Chase International 3:45pm NETWORKING BREAK 4pm TALENT MAPS AND PIPELINES: WHAT’S NEXT FOR MANAGEMENT SUCCESSION 4:45pm WHAT’S NEXT FOR EXECUTIVE SEARCH AND EXECUTIVE ONBOARDING Mark D. Ernsberger, President and CEO, Farr Associates 5:30pm CLOSING REMARKS Jason Starr, Publisher of search-consult magazine and President, Dillistone Systems 5:35pm-7pm COCKTAIL RECEPTION AND BOOK SIGNING with Joseph Daniel McCool * The agenda and speakers are subject to change.

JOSEPH DANIEL McCOOL Foreword by John A. Byrne, Executive Editor, BusinessWeek

This event is also acting as the official launch for “Deciding Who Leads: How Executive Recruiters Drive, Direct & Disrupt the Global Search for Leadership Talent” – the new book by Joseph Daniel McCool. Join us for our drinks reception and receive a complimentary copy, signed by the author. The executive search consulting business has grown significantly since ‘The Headhunters’ was published in 1986. But now, in ‘Deciding Who Leads: How Executive Recruiters Drive, Direct & Disrupt the Global Search for Leadership Talent’, the first book exploring the global influence of executive recruiters since then, author and search-consult columnist Joseph Daniel McCool contends the process and external perceptions of its value have actually changed very little over the past two decades. The status quo that pervades the global market for executive search consulting creates significant threats and opportunities for those interested in bridging new client relationships and reversing lingering questions about its effectiveness and value. Join us at search-consult’s inaugural Americas conference for a first - and what promises to be an especially revealing - look at the issues explored in this groundbreaking new book which examines the executive search consulting business, the issues it has to resolve to grow its influence and how your firm can separate from the profession’s lack of innovation.

Book now for EARLY BIRD price! Only US$699 / GBP349 / EURO499 per delegate. This EARLY BIRD discount offer is valid until January 31, 2008. After this date standard prices apply: US$899 / GBP450 / EURO650 per delegate. Group discounts available! Please call us on +1 (201) 653 0013 or send an email to events@search-consult.com Online payment facility as well as downloadable booking form available at www.search-consult.com/newyork2008

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ow does a director selection and board advisory firm facing its own succession issues and the daunting task of addressing the mounting pressures facing today’s corporate boards, mobilize the resources required to stay on top of the board services market and rebuild for its own future? That was the challenge facing Roger M. Kenny and Peter Kindler, two of the world’s most experienced board recruitment consultants and strategic advisors to corporate boards on issues of director selection, board assessment and leadership succession. Kenny and Kindler, the Principals of New York-based Boardroom Consultants which was founded in 1974 as the first advisory firm in the United States to specialize in governance consulting and director selection, had been approached by a number of executive search firms in recent years, all of them sensing opportunity in the board recruitment and advisory services market. For the two leaders of Boardroom Consultants, those discussions accentuated their strategic focus on solidifying their own succession plan so that the brand gravity and unique advisory services offered by Boardroom Consultants could be extended and enhanced far into the future. How else to build a lasting legacy? Then along came Bob Benson, formerly Executive Vice President of International operations for Spencer Stuart, whose career there had overlapped with Kenny’s years earlier. Kenny confided that, especially given the governance reforms and other mounting pressures on today’s corporate boards, it was becoming increasingly difficult for his

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small firm to keep pace with the evolving requirements of director selection, board effectiveness assessment and other critical succession challenges. Benson, now the Chairman of Slayton Search Partners, articulated his fastgrowing firm’s vision for bringing boardlevel expertise to its current clients and its capacity to bolster Boardroom Consultants’ team, brand and service offerings. “We’ve admired and been attracted to Slayton for a long time,” Kenny says. “Bob Benson and I both worked at Spencer Stuart earlier in our careers, and I know the kind of man he is, and I know the quality of work done by Rick Slayton and the rest of their Slayton Search Partners team.” KEEPING PACE WITH NEW BOARDROOM PRESSURES Aside from the personal chemistry and reputation of the two firms that made the acquisition possible, both saw it as an ideal opportunity to bring more experience, consultants and market perspective to their clients’ most pressing leadership challenges. Benson explains how “Slayton Search Partners will help provide Boardroom Consultants with additional resources, as the pressure for both management and board performance accountability continues to escalate.” Kenny reports that one of the biggest pressures on much larger director recruitment and board advisory firms is how to equitably prioritize individual clients’ interests when they’re working to fill dozens of director search assignments at any one time that have an identical, or nearly identical, search specification/mandate. Benson acknowledges that nearly

identical director specs have drastically reduced the pool of potential board recruits because of their universal reliance on the experience that only a former or sitting CEO, CFO or board chairman could bring to another company’s board. That has contributed to a perceived supply problem for corporate boards that need to replace retiring directors, or those whose terms may be cut short by mandatory board term limits that have contributed to significant demand for new corporate directors. “We want to make sure our focus remains on our ability to serve the best interests of the client, not on our size or the volume of our assignments,” Benson says. “Without that focus, executive search professionals wind up spread across far too many assignments. The bureaucracy needed to manage the process becomes cumbersome for everyone. And most important, the roster of candidates that are deemed ‘off-limits’ because of client conflicts can take the best available talent off the table.” Benson explains: “We’ve worked hard to turn the search experience from one of dealing with restrictions and limits to a positive opportunity to build strong, highperforming management teams. Coming together with Boardroom Consultants is another major step in building an organization with the reach and expertise to fulfill our client needs at the highest levels.” By working as partners, Kenny notes, Slayton Search Partners and Boardroom Consultants will be able to tap into complementary skills and expertise to offer clients the combination of services that provides the best possible results for their unique leadership needs and circumstances.

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Kenny adds: “Joining Slayton Search Partners makes both firms more valuable to our clients. We now can offer the combined expertise of two firms with proven success in providing services critical to highperforming businesses – exceptional management talent and a strong board of directors.” NEW DIRECTOR REQUIREMENTS While many of the experience-based requirements for board director positions will perpetuate, Benson says, more focus should and will be paid to the character, collegiality and communication skills the independent director brings to the increasingly competency-based makeup of the board of directors. He reports that an increasing number of corporate boards are spending more time analyzing the kind of skill sets their directors need. That’s creating new opportunities for the few board advisory firms with significant experience recruiting independent directors and a substantial track record of meaningful board assessment work. It’s also expanding the scope of soft skills that will eventually prove themselves key characteristics of the highest performing board directors. SEPARATE MARKETS, COMMON VISION Benson says the priority for Boardroom

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Consultants moving forward will be to deepen client relationships based on the depth of its experience, the perspective of an already expanding team of consultants and its exclusive focus on board-level leadership issues. Slayton Search Consultants and Boardroom Consultants will continue to operate as two, distinct brands, Benson explains, because of Slayton’s continuing focus on executive search and the much broader scope of Boardroom’s work as a strategic advisory partner to some of the world’s largest multinational corporations. The firms’ go-to-market strategies, the requirements of the consultants who execute their engagements and the nature of their client relationships are indeed unique, and so the brands will be managed separately while the resources of each firm are made available to clients with specific needs at the management or board levels. Additionally, Boardroom Consultants plans to offer additional services to maximize results for corporate boards and provide directors with a comprehensive and compelling portfolio of advisory services options. Over its history, Boardroom Consultants has completed more than 350 director recruitment assignments on behalf of leading companies and institutions, as well as dozens of consulting initiatives relating to board structure, committee charters, succession planning and board assessment. But both also realize the added value created by their synergy, however distinct the individual clients they serve. “Joining Slayton Search Partners makes both firms more valuable to our clients,” Kenny says. That’s because Slayton’s clients will be able to leverage the board-level resources and expertise offered by Boardroom Consultants, and Boardroom’s client base will be introduced to the resources of an executive search firm that brings a new approach to the practice of management recruitment. Slayton’s unique Limit-lessSM approach to its executive search practices focuses on the possibilities, rather than the limitations, of executive search. It optimizes results through

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careful focus on select practice areas and assignments, optimal organizational size and structure, and the direct involvement of proven search professionals in every assignment. That vision for the firm’s future has moved it to have each of its consultants certified in behavioral interviewing techniques. It has also pushed Slayton Search Partners to have each of its employees – from its partners, search consultants, associates and executive assistants – commit to a common set of culture statements about how the firm’s employees will do business, interact with each other and deliver consistent results for its clients. Slayton Search Partners’ acquisition of Boardroom Consultants is the latest step in its strategic plan to offer clients a unique – and more effective – approach to executive search, especially at the top levels. Mr. Benson is the Chairman of Slayton Search Partners and Boardroom Consultants. He brings over 25 years of domestic and international experience as a leader in the executive search industry. Mr. Kenny is the President of Boardroom Consultants. Prior to co-founding the firm in 1982, Mr. Kenny was a Senior Vice President and Partner with Spencer Stuart.

www.search-consult.com For more information contact: Email: bbenson@slaytonsearch.com rkenny@boardroomconsultants.com ISSUE 32 2008 search-consult

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CHECK WHOM YOU WANT TO HIRE The success of a company is closely linked to the quality of services provided, which in turn depends on the quality of its workforce. In this context, success can be equated with effective hiring. When hiring a new employee, the company trusts the successful candidate to make a positive impact on its turnover, facilities and reputation. But in order to assess whether or not that person will be good enough for the job, is being trustful enough? The hiring process is generally less time-consuming and costly than the on-boarding period, during which the new employee is brought up-to-speed with his/her new role and starts to show results. WK Personal Risk Managers was established to support the recruitment process. Our main activity is to help you select the very best employees for your company. We offer a comprehensive verification of all information submitted by candidates during job applications, giving you a useful tool to minimize the hidden risks behind Résumés/CVs. Pre-employment screening reduces the risk of hiring the wrong person and a allows you to select the very best candidates. The same process can help to take the right decision when the employer wishes to promote someone internally.

Our standard services include: • employment verification • obtaining references • education verification • security screening / BS 7858

These services allow you to answer the following questions: 1. Is the person qualified enough for the position? 2. Does the person have enough experience? 3. What kind of an employee is he/she? 4. Were the previous employers satisfied with his/her performance?

WK Personal Risk Managers offers its services in the following countries: Armenia, Australia, Austria, Belarus, Belgium, Bulgaria, Canada, Czech Republic, Denmark, England, Finland, France, Germany, Ireland, Italy, Kazakhstan, Latvia, Lithuania, Moldova, Netherlands, Norway, Poland, Romania, Russia, Scotland, Slovakia, Switzerland, Tajikistan, Ukraine, USA, Uzbekistan, Wales. We are always happy to offer a trial case to demonstrate not only our fast and efficient work, but also the efficiency of our service itself.

Please do not hesitate to contact us with all your questions. WK Personal Risk Managers Tel. +48 32 785 00 51, Fax. +48 32 785 00 52 anna.wojcik@wkprm.pl, damian.kasprzyk@wkprm.pl www.wkprm.pl

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he term “diversity” is taking on new meaning among companies that are focused on building dedicated and strategic workforces. Most sizable companies today utilize some form of diversity initiative in an effort to provide appropriate jobs and career opportunities for minorities and women. They should be commended for their efforts and congratulated when successful. These initiatives typically address race and gender, but how often do companies’ hiring policies target candidates who think differently and don’t fit the traditional culture standard in place since the company was founded? Diversity of thought— often the last form of diversity to seep into a company’s culture—is becoming an important recruiting strategy for today’s leading organizations. As the Managing Partner of an executive search firm in a major U.S. city, I have been exposed to countless clients who truly understand the concept of race and gender diversity initiatives, but get nervous at the thought of hiring candidates who don’t exactly “fit” their culture. The idea that someone would think outside-the-box and challenge conventional thinking (even if done appropriately) makes them cringe. They consider “group think” or uniformityin-thinking as a positive outcome of a productive meeting. These are some indicators of rampant conformity I’ve recently heard: “Great meeting— everyone is on the same page,” “You

need to play the game to fit in here,” “He is a real maverick and won’t make it,” or “Great background and education, but she’s just not a culture fit.” Jim Collin’s breakthrough book, Good to Great, exemplifies this point further in the following paragraph: “Indeed, one of the crucial elements in taking a company from good to great is somewhat paradoxical. You need executives, on the one hand, who argue and debate—sometimes violently—in pursuit of the best answers, yet, on the other hand, who unify behind a decision regardless of parochial interests.” ASSESSING YOUR ORGANIZATION In James Surowiecki’s book, The Wisdom of Crowds, he argues that “under the right circumstances, groups are remarkably intelligent, and are often smarter than the smartest people in them.” He maintains that “wise crowds” need diversity of opinion, decentralization, independence of members from one another, and a good method for aggregating opinions. Diversity of thought inherently brings in fresh information; independence keeps people from being swayed by a single opinion leader; people’s errors tend to balance each other out, and considering all opinions helps ensure that the results are considerably “smarter” than if a single expert had been in charge. The growing dependency on assessment testing tools to screen job applicants is something to consider. On

By Randy Hain the surface, it seems like a great idea. Determining if someone is qualified for a specific role is certainly appropriate, but testing specifically for culture fit can often lead to hiring decisions that result in corporate “sameness.” Who in a company will challenge outdated strategies? Who will confront the status quo and present fresh ideas? Too often, outside-the-box thinkers are viewed as management headaches. The character traits that fuel their unique perspectives and unconventional thinking can be a challenge for traditionally-trained managers. Dr. Ron Young, CEO of TROVE, an Atlanta-based leadership development and coaching organization, says: “Utilizing assessment testing to identify the ‘secret sauce ingredients’ that make top performers excel and selecting for those ingredients in new hires is not the same thing as hiring for cultural fit. In fact, people who fit seamlessly into the existing culture are more likely to be moderate—not superior—performers. Consequently, the misinformed use of assessment testing can create a regression toward the mean rather than raise the performance bar.” But changing how you hire is not enough. Companies must also evolve to provide leadership training that teaches its leaders to identify, hire and ultimately maximize the potential value of candidates who think differently. Take this a step further and companies will learn how to identify these types of thinkers ISSUE 32 2008 search-consult

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within the company, then engage the necessary tools to help them grow and ultimately be promoted to a level where they can influence strategy. Aligning diversity of thought with a company’s business strategy, workplace strategy and marketplace strategy sets it up for success. Leading companies are altering their approach to employee selection and learning to embrace diverse thinking. Consider what some of those executives are saying: From a speech given by former Hewlett-Packard Chairman and CEO, Carly Fiorina: To be successful, we must harness diversity of thought. Yes, diversity of people, diversity of background, diversity of experience, diversity of skills, diversity of ideas. This is about a new definition of diversity that has to do with more than national origin or race or creed — it has to do with keeping the market in motion by feeding it new models, new ideas, new approaches. CNN Worldwide President Jim Walton at a recent World Report Conference: We need to have people with diverse thought challenging us in the planning of what stories to cover, who to interview, what questions to ask, and we feel this is a start, to continue to grow our fine profession. David Greenberg, Senior Vice President of HR for L’Oréal USA, recently quoted: Do we have enough diversity? Not just international and ethnic diversity, but a diversity of thought—which is key to how L’Oréal fosters innovation. A diverse group of people can be more innovative than a homogenous group. There might be more friction and discomfort among people who think differently, but the output is more innovative. The kind of creative, innovative diverse thinking necessary to solve business problems is limited by what we bring to the table, as manifestations of our perceptions, perspectives and value systems. It takes much less effort to stay within our comfort zones and surround ourselves with people who think like us. It is also a very good way to lose customers and market share.

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SHIFTING THE PARADIGM One of the keys to operationalizing this change is to alter the fundamental building blocks of the company’s hiring process. First, this requires careful review and modification of job descriptions and how they are being used—do they contain language that perpetuates hiring the same type of candidate versus broadening the requirements for the role? Make sure they also focus on areas that qualify candidates for soft skills, intelligence and even non-industry experience. Secondly, as Dr. Young of TROVE points out, modify the utilization of assessment testing. While growing in popularity, assessment testing runs a real risk of promoting stale cultures and people that fit a certain profile. These tools can be modified to screen candidates differently and measure more broadly, instead of the typical narrow set of parameters. Finally, companies need to embrace the paradigm shift from the very top of the organization. When executives and Human Resources collaborate to identify diversity opportunities and begin an open dialogue about hiring differently, those organizations will thrive. Just as important is acknowledging that existing

leadership must develop new strategies for leading these outside-the-box thinkers. This concept of hiring, developing and promoting for diversity of thought is not novel. There are companies, especially in the technology sector, who are doing a pretty good job of bringing in the right people and unleashing their potential. Companies like Google, eBay and MySpace don’t hire people who think alike, look alike and act alike. Their success lies in the pursuit of intelligent, diverse (in thought) and creative people who can help them make breakthrough discoveries, challenge the rules of convention, create exciting new products and reshape the marketplace. Companies should look closely at this model because establishing a workforce that is diverse in thought and ideas is a business imperative. If Surowiecki’s assertions are correct, organizations that tap into the collective power of the “wise crowd” can catapult their strategy, and ultimately their success, to the next level. Randy Hain is Managing Partner and Shareholder of Bell Oaks, a nationally-recognized executive search firm. He has an established track record of leading successful searches and building teams in diverse industries and functional specializations ranging from individual contributors to C-level leadership. He has played the lead role in hiring, training and developing of one of the most successful search consultant teams in the business, and has earned a reputation as a values-based leader who invests heavily in his colleagues, candidates and clients. Randy’s deep sense of community is reflected in his work and that of the Partners of Bell Oaks. He may be reached at rhain@belloaks.com or +1 (678) 287-2031. With a nearly 40-year legacy in executive search, Bell Oaks specializes in identifying, attracting and hiring professionals to critical positions with companies across the country. Founded in 1970, the national firm has particular expertise in the areas of sales and marketing, human resources, finance and accounting, information technology, and manufacturing/operations/engineering. Bell Oaks is consistently ranked as one of the leading search firms in the South and was recently named one of Atlanta’s Best Places to Work by the Atlanta Business Chronicle for the second consecutive year.

www.search-consult.com For more information visit: Web: www.belloaks.com

search-consult ISSUE 32 2008

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Executive Talent in Asia: Delegates Rate the Inaugural 2-Day Event in Hong Kong an Overwhelming Success! Around 250 delegates from 19 different countries gathered on 6-7th of November to attend search-consult’s inaugural Asia-Pacific Conference “Executive Talent in Asia - A Global Perspective on the New Battleground”. The event, held in one of the world’s finest hotels - Island Shangri-La in Hong Kong - was considered an overwhelming success by the majority of the professionals who attended. In a truly international environment, this two-day forum provided valuable learning and networking opportunities for distinguished leaders from both Western and Asian organizations, experts from the Corporate Recruiting/ Human Resources Community and prominent Executive Search Consultants who met to address the best ways to win the latest battlefield that is emerging in the war for talent.

The conference began with a reception, followed by a lion dance and a traditional Chinese dinner. After dinner, Tony Taylor, Chief Executive Officer of Cathay Pacific, provided a perspective on Human Resources Management at this US$6,5 Billion organization and one of Hong Kong’s largest employers. The second day was filled with thought-provoking topics, addressing the latest developments that are affecting how companies and search providers source, attract, retain and develop top talent.

The delegates hailed the content and the speakers as first rate, finding the topics to be “very informative”, “extremely useful” and “enlightening”. A series of discussion panels, with leading experts from both sides of the recruiting community, addressed critical issues, such as: how this strategic relationship is developing in Asia, what are the expectations each side has in the present and for the future, what do clients see as their main challenges in regard to talent acquisition and how the differences in Asian countries are affecting the executive recruitment process. Delegates praised them as “amazing” and “fascinating”. Delegates also appreciated the optional workshop sessions that provided valuable information as well as more opportunities to network and exchange ideas with their peers from across the globe. Jason Starr, Managing Director of Dillistone Systems and publisher of search-consult magazine – the organiser of the event, stated: “Today, the world for talent is global and the conference reflects that reality. With delegates from across Australasia, the Middle East, Europe and the Americas, never before has a conference on this topic attracted such diversity in its contents, speakers and attendees.” One attendee reported: “It was invaluable in helping to provide much needed industry perspective and commentary on the state of affairs in the Talent Management industry, especially in the Asia Pacific region. Many of the presentations were nothing short of outstanding.”

Due to the overwhelming positive responses from the attendees, speakers and sponsors, search-consult is committed to holding further conferences worldwide. Therefore, look out for further news on the specific details at www.search-consult.com. Many thanks to HR Magazine Executive Solutions for providing pictures for this article.

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Advanced email integration allows improved management of incoming and outgoing emails via MS Outlook. A new interface, improved templates, additional CC and reply functionality along with support for SMS and TAPI compliant telephone systems are all provided in the new FILEFINDER system.

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UK / Other Europe: +44 (0)20 7749 6100

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ne of the most frustrating ironies for business leaders in Asia today is that in the world’s most populous region their toughest challenge is finding people. Asia’s talent shortage has been the source of much debate and frustration over the past few years as businesses struggle to not only to recruit new employees, but also to retain their existing staff in this very active marketplace. Governments and companies alike are undertaking strategies designed to alleviate the tight labor market, but it will likely be years before employers can reap the benefits of these programs. In the meantime, business leaders must adopt strategic rather than tactical planning to boost employee retention and stem the outflow of talent from their organizations. Investing in strategic hiring programs, comprehensive on-boarding, training and development programs, succession planning and effective career development opportunities to attract and maintain talent should all be considered as part of the strategic planning, shifting the focus from talent acquisition to talent retention. Across the region, rapid economic growth has greatly increased the demand for labor over the past decades, significantly outpacing the available supply. Today, businesses in Asia are grappling with difficult decisions over how to continue their growth with the limited availability of talent. The shortage of qualified staff now ranks as the top concern amongst 600 CEOs of multinational corporations in China as well as South-East Asia, according to a recent study by the Economist.

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Furthermore, it seems that the situation will get worse. McKinsey Global Institute recently conducted a study on managers in China, predicting that China will need 75,000 international managers in the next decade. However, this problem is not unique to China and is evident across the entire region. The small pool of available talent in a region - whose economies are, with few exceptions, booming - shifts tremendous advantage from corporations to qualified candidates who are now demanding enormously high wages, more impressive titles, and who may leave and find a new job that offers more on any given day. “Pay rates for senior staff in many parts of Asia,” notes the Economist, “already exceed those for similar staff in much of Europe.” And yet wages continue to rise, with many employees expecting at least a 40% increase in compensation each year according to presenters at a recent XMei Conference on HR. STAYING AHEAD OF THE GAME In this extremely dynamic market, companies are forced to continually be one step ahead as a means of attracting and retaining top talent by offering larger compensation packages as well as evergrander titles. Along with titles and salaries, the expectations of job seekers are also increasing. Reasons for changing jobs, of course, differ greatly. Nonetheless, according to ChinaHR, salary is the largest motivating factor for young executives. Recent

search assignments we have undertaken at DHR International reinforce this trend. For example, a candidate for a General Manager role to lead the China operations of a leading consumer organisation requested an 80 percent increase on a compensation package that was more than in line with market value. We have also noted a 40-100% increase of clients requesting local talent at the middle to senior management level in China. The number of requests for expatriates in China as well as the rest of Asia Pacific has increased by 30%. In addition, we have noticed during the last year an upturn in the long-term incentives being offered in the form of stock options or equity, as a means to retain executive talent. As a result, battling attrition has become a major priority for business leaders across the Asia Pacific region. With turnover rates that in some industries can exceed 30%, HR professionals are wrestling with strategies to retain top talent in a highly active labor market. This need is particularly accentuated in extremely competitive industries such as healthcare and life sciences, consumer goods, retail and financial services. HOW TO RETAIN THE BEST? These organizations must prioritize talent retention versus talent acquisition. With a finite supply of human capital, corporations cannot simply keep hiring. Instead, they must hold on to their existing talent pool by placing incentives that will attract them to stay on board. Human

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In the executive search profession, quality starts at the research level. To help researchers achieve results, search-consult is running its first Research Practitioner skills day. Delivered through small groups, it will be packed with practical tips and techniques that will make a real difference to the way you work.

WHAT WILL YOU LEARN?

• Information sources; the best places to find candidates. • How to get the best out of the internet. • Tried and tested techniques for approaching candidates. • Telephones skills; how to pace the call and absorb the information. • Difficult candidates; what to do when the candidate isn’t interested or not qualified for your search. • Legal issues, how European data protection law and the Employment Equality Regulations affect the search process.

Karen Blakeman

WHAT’S DIFFERENT?

We are limiting the numbers to 60, and for most of the sessions you will work in groups of 12 people. Small groups encourage informal and frank exchange of ideas, and that is part of the value of this event. Trainers will rotate around the groups to ensure that you have the opportunity to learn from each of our experts!

Jill Dillistone

WHO ARE THE TRAINERS? We have five top trainers;

• Karen Blakeman, RBA Associates. Karen set up her company, RBA Information Services, in 1989. Since then she has trained thousands of people on using the internet to access information. • Jill Dillistone, search-consult’s regular trainer. Jill has masses of experience having worked as a researcher herself then as a trainer. Her CV includes Russell Reynolds, Heidrick & Struggles and Whitehead Mann. • Francesca Lahiguera. Francesca is a very experienced consultant with an international perspective having worked with Sun Microsystems and Heidrick & Struggles in the US, Paris and London. • Caroline Mills. Caroline has been an information officer in advertising and executive search. She has worked for Heidrick & Struggles and Edward W Kelley & Partners, and now runs her own company, Ask Caroline. • Neal Woodcock, Words in Action. Neal’s company has provided communications training to companies across Europe and the US, including Microsoft, ABN Amro and A. T. Kearney Management Consultants.

Francesca Lahiguera

Caroline Mills

Neal Woodcock

For a detailed agenda and breakout sessions please visit www.search-consult.com/research2008 Book now for EARLY BIRD price! Only GBP 379 / EURO 545 / USD 775 + UK VAT (17.5%) per delegate. This EARLY BIRD discount offer is valid until January 31, 2008. After this date standard prices apply: GBP 479 / EURO 699 / USD 899 + UK VAT (17.5%) per delegate. Group discounts available! Please call us on +44 (0)20 7749 6102 or send an email to events@search-consult.com Online payment facility as well as downloadable booking form available at www.search-consult.com/research2008

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resource departments throughout Asia, with varying degrees of success, are experimenting with different approaches to combat attrition. While salary and career expectations play a large role in changing jobs, as talent ages job stability and career opportunity increase in importance. Of course, continually raising salaries is one way to retain employees, but in addition to being unrealistic, it is not, the most effective. Training, developing and mentoring employees all yield far better results in terms of employee retention. Even seemingly smaller gestures, such as providing staff with benefits such as cell phones or PDAs, transport allowances, and offering flexible working hours all have positive effects on employee retention. Other strategies such as career counseling, on-boarding programs and succession planning are also very important to maintaining a team. The talent acquisition process cannot end with a job offer; new employees must be trained effectively to ease their transition into the new environment, as well as being counseled on their potential career paths within an organization. On-boarding programs are important for both: the new hire (which integrates them into the culture and team) and the corporation (which helps build their reputation as a reliable and thoughtful employer). This is especially true in Asia where strong employer brands play a key role in attracting new talent. Amidst the backdrop of rapid growth and massive investment in the region, corporate leaders have been fielding tactical, piecemeal solutions to deal with the talent gap in Asia. A more strategic, end-to-end approach to talent management is required for companies to continue to attract and retain high-caliber talent. THE CHALLENGES AHEAD As an executive search consultant operating within the Asia Pacific region, our first challenge is to find ways to attract the best talent in the market. This can only be achieved through comprehensive research and thorough knowledge of the talent landscape for the sector that you

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are working in. We are seeing a growing trend for specialty practice groups as we continue to build our practice groups across the region. The second challenge we face is being able to identify ‘push factors’ beyond compensation. For instance, we must assess if the candidates are in alignment with our clients. If they are aligned, we must use these ‘push factors’ to motivate the candidate to consider the role and not be driven exclusively by financial motivators. Being able to do this is fundamental. In this tight labor market we have observed a significant increase in candidates demanding extremely high compensation. At times, these demands are unreasonable and even questionable. As a result, in certain countries we have implemented a standard request for pay slips or tax returns to verify compensation data, helping us gauge pay scales more effectively and also better understand the marketplace. This transparency has benefited our clients, made our job easier, helped build up trust with both the client and candidate, filtered out any misrepresentation of data and eliminated certain candidates. With these challenges in mind, it is our responsibility as experienced search consultants to source candidates globally for roles in Asia Pacific; encouraging clients to consider transferable skills across different industries and looking at

a talent pool that can ‘step-up’ rather than approaching candidates to consider a lateral move. Our role is shifting from being more transactional to now being more consultative. In a market where supply is extremely scarce, we need to partner with our clients to help them overcome this talent shortage, recommending creative solutions and lateral thinking. As this region continues to boom, more and more executive search firms are expanding as competition for experienced executive search consultants mirrors the existing talent shortage. Consultants may be open to hearing offers, but are hesitant to change firms because it will take several months to re-brand themselves and inform their steadfast clients where they have moved. At the same time, there are countries, especially Mainland China, where finding competent executive search consultants is a struggle since retained search is still in its infancy. DHR International Asia has been successful in attracting the right talent to join our team as we use the same philosophy we use for our clients: we have placed a strategic talent acquisition program at the consultant and research levels that identify people with the right cultural fit who can add value and grow in our organization. We partner with our clients so they are able to do the same. * The author would like to thank Matt Sears, an Associate at DHR, for his assistance with this article.

Christine Greybe is DHR International’s Managing Director of Asia-Pacific. Ms. Greybe has been instrumental in establishing the DHR brand throughout the region, working with some of the world’s leading companies to identify and place their most senior executives at both a global and regional level. From an initial base at the company’s regional headquarters in Hong Kong, Ms. Greybe has led the expansion of DHR’s offices to Japan and China, with ongoing plans to continue to expand across the region. For nearly 20 years DHR International has been a leading, privately held provider of executive search solutions with 46 wholly-owned offices spanning the globe. DHR’s renowned consultants specialize in all industries and functions in order to provide unparalleled senior-level executive search, management assessment and succession planning services tailored to the unique qualities and specifications of their select client base.

www.search-consult.com For more information visit: Web: www.dhrinternational.com

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s IIC Partners celebrates its 21st birthday, IIC Board Chair Martine Bournerias met with search-consult to discuss how “this global search organization is truly coming of age.” “We’ve been consistently ranked among the top 10 global providers for the past several years, and this year in two independent surveys we have been ranked eighth by both office count and revenues,” Bournerias reported. “But not everyone knows us.” “The challenge for us,” she described, “is to now convert size and capability into a comparable level of public profile and market power.” Still, she said, getting IIC’s name in front of the client community only matters if key people remember it … which is why it is vital that IIC be able to successfully differentiate itself from the other 50-odd organizations of all sizes offering search services through regional or global affiliations. Paradoxically, she reported, IIC’s greatest apparent weakness in the area of developing name recognition is turning out to be its greatest strength. “Our members are all determinedly independent,” Bournerias noted. “It’s a major reason why they join IIC, which originally stood for Independent International Consultants — though now we only use the acronym.”

By Pilar Gumucio

THE MAIN ATTRACTION Over the years, Bournerias said, IIC Partners has become the logical home of strong independent search firms — “the ones that don’t need a global brand name to gain recognition in their local markets.” Progress, the Paris-based search firm in which she is a senior partner, is the largest independent in France and an obvious example of her point. In regard to new member firms, Bournerias remarked: “We deliberately seek new members with strong local brand names, so it’s no surprise that they insist on maintaining their local identities. Part of coming of age is knowing who you are, and we are an affiliation of successful local firms.” This is good news for clients because they are able to get established access and expertise in 60 of the world’s major markets. “Nevertheless, it implies some tough sledding for our global brand because none of our members are hanging out an IIC sign over their local office,” Bournerias explained. “In fact, our bylaws prohibit it. Instead, we must rely on every member to tell the IIC story as part of their own marketing initiatives.” SINGLE OR DUAL BRANDING At an IIC America’s Regional Meeting in Miami, Joe McCool – who is a well

known writer, speaker and independent consultant on best practices in executive recruiting– discussed the importance of branding. “Any branding expert will tell you it’s just easier to convey important messages under a single brand.” “Dual branding creates an extra hurdle,” McCool said. “But the reality for most networks is that brand strength really resides at the local level. To make dual branding work, you have to continuously feed both brands at the local level and also feed the global brand across all markets. That’s where a lot of global networks fall down.” That’s precisely the area where IIC – which is a classic, dual-branded organization - intends to focus its efforts and rise, Bournerias said “We make it easy for IIC members to tell our global story as part of their own.” IIC Partners provides a whole range of tools to help members do just that. Bournerias reported that these include dual branded global client newsletters, magazine ads, practice group brochures, client presentations and ‘clone’ websites. She explained that ‘clone’ websites are copies of the IIC public website that enable any member firm to establish a dual-branded Internet presence, with a look and feel that carries a unified IIC image. ISSUE 32 2008 search-consult

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“A number of the largest members, including Progress, have adopted ‘clone’ websites because they reinforce our global identity and IIC makes it fast and easy to do,” Bournerias said. “Some not-so-large firms have licensed clones because it solves technical problems for them, or because it costs less than developing their own site from scratch.” In fact, by the time this interview is printed, IIC Partners will be launching a new version of their public website, a third-generation architecture that will dramatically update their image. This new look-and-feel will, at the same time, be available as a ‘clone’ website so conversions to the new format will be very quick and very cost-effective for member firms. She explained that members are not required to incorporate any of these initiatives. Nevertheless, Bournerias does believe that a large part of the reason for the consistent growth of IIC’s membership is because these initiatives are available and are appealing. EXPANDING ITS BORDERS But she’s aware competitors are also growing. There are now some 50 search networks, and some of these have built huge office counts in just a few years. “Some of these networks have sprung up in less time than we’ve spent looking for the right partnership in a single market,” noted Bournerias. “We think there’s a message in that for clients as it is directly related to the quality of service provided.” According to Bournerias, IIC pursues geographic expansion slowly, carefully and with quality as a first priority. “With 60 offices, we have no need to put additional dots on the map,” she stated. “We have virtually all the major markets covered, so we’re only looking for strong players in a few major cities, some second- or third-tier markets or, perhaps, some strategic specialty practices in particular cities.” For the future, IIC intends to grow primarily by expanding business in

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existing markets. And that means making their policy of dual branding work on a global basis. “We can’t afford sustained global advertising — but fortunately, neither can our largest competitors. It’s not realistic in the search business. What is realistic is for our members to carry the IIC brand with them in their local marketing. For IIC, that covers all the major markets in the world and it adds up to a global campaign.” IIC has its dual-branded marketing tools in place, but it takes more than that to motivate participation and enable coordinated activities. MAKING REAL CONNECTIONS Bournerias explained how internal communications plays a key factor in facilitating the search process. “It helps that our members have known each other for years, so there’s a level of familiarity and trust that’s vital for successful search work.” By contrast, “we suspect members in some of those fast-growth networks wouldn’t know each other if they met on the street,” she said. “And this will obviously impact their quality and effectiveness in coordinating their search activities.” IIC members meet between twice and four times a year for extended working sessions; meetings may occur

more often if they’re transferring search assignments. Bournerias stated: “When I call colleagues in Stockholm or Sydney — or Singapore or Sao Paulo - those are people I’ve known and worked with for years. The same is true for Milan, Mumbai or Montreal.” “The reason we are so effective is because we know each other well, we know how to work together and we have shared central databases to support these efforts,” she explained. Bournerias is aware that personal relationships and a schedule of business meetings around the world are not enough to sustain a global organization. That’s why a significant portion of IIC’s annual budget is directed to communications technology and content. She explained: “Our intranet includes an internal news service, shared databases of clients and assignments, forums for our eight practice groups, all our marketing collateral and a global forum to provoke discussions on hot topics in the search industry. Our IIC news service has new items nearly every day, from around the world. We’re connected constantly, so we don’t rely on a few meetings to maintain the momentum of the organization.” In fact, one of IIC’s newest members, Valentin Tuca from KM Trust & Partners in Bucharest, decided to apply to this global organization after seeing the intranet capability. He said that it showed a passion and a professionalism that were the deciding factors for their partners. “As we come of age, we’re working on getting those same qualities more widely recognized in the broad, global client community,” Bournerias reported. “This is also important to get across to search industry peers because we’d still like to fill a gap or two in our coverage — when we find the right partners.” www.search-consult.com For more information visit: Web: www.iicpartners.com

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Executive Search Practitioner Conference: Delegates Praise the London-Based Event as Very Useful & Inspiring

Around 120 delegates from 17 countries gathered to attend search-consult’s 2nd Executive Search Practitioner Conference on October 4th, held aboard HMS President, moored on London’s River Thames Victoria Embankment. Unlike other conferences, this event was designed for Executive Search Consultants to learn and discuss the latest trends and challenges from within the industry in a friendly environment, networking with colleagues and competitors from around the world. Delegates hailed the content and the speakers as first rate, finding the topics to be “inspiring, “relevant” and “very interesting”. A few of the industry’s leading experts - such as Chris Clarke, President & CEO of Boyden Global Executive Search; Alberto Amaglio, Managing Director of Korn/Ferry’s Italian offices; Ulrich F. Ackermann, Member of the Board of TRANSEARCH International Partners; Anthony Saxton, Chairman of Moloney Search and Peter Felix CBE, President of the Association of Executive Search Consultants (AESC) - shared their insights on the latest developments, how to affront the latest challenges and most importantly, how to add value amidst the changing global talent landscape. A panel discussion - “Masterclass: Searching for Solutions as the War for Talent Intensifies” – took place as delegates benefitted from asking highly experienced search consultants - such as Roger Cater, then President of AIMS International; Christopher Stokes, European Regional Vice Chair of IIC Partners Board of Directors; David Winterburn, Founder of Harrison Winterburn Associates Limited & Vice Chairman and Non Executive Director of REC and Peter Szabo, Regional Country Manager for Hungary for SpenglerFox – advice on how to be a successful search professional. The event also provided fantastic networking opportunities during the breaks and BBQ lunch. The speedboat trips offered delegates an opportunity to admire spectacular Thames River views. One of the practitioners that attended the conference remarked: “The venue was excellent, the number and mix of attendees was just right, the topics were very interesting and the speakers’ presentations were inspiring. I thoroughly enjoyed the conference and I am looking forward to the next one.”

One of the delegates remarked: “It was very interesting to get first-handed insight from the world’s leading search firms”. Another practitioner said that the conference really helped to “better understand the main issues” the search profession is facing.

Jason Starr, Managing Director of Dillistone Systems and publisher of search-consult magazine, stated: “I am delighted with this year’s positive feedback from those that attended. The conference proves its importance and vital role in providing search practitioners with forward thinking strategies and ideas to help them be successful in their respective markets.”

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Executive Search in CEE:

Establishing Local Presence

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he CEE (Central & Eastern Europe) region is best defined as the ex-communist countries. They share a common political and economic history, but in 1989 there were already significant differences among these countries. As of 2007, these differences have only grown larger and are more accentuated. For example: • Slovenia and Czech Republic now have GDP/capita above some Western EU countries, while Moldova has a GDP/capita of less than one tenth of Slovenia’s; • The North-South mentality difference is as large in CEE as in Western Europe; • Some countries are part of the EU and managers in these countries have EU passports, others will never have them; • In some countries Western multinationals have for decades trained managers, other countries are only now seeing the first multinationals opening subsidiaries; • In some countries the best native managers are still found abroad, while in others repatriation is history; • Manager’s income tax differs widely between countries, ranging from 10 to 50%. The impact these factors are having on executive search firms is simple. It is very

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By Poul Pedersen

difficult to cover the CEE candidate pool from a few regional hubs, particularly when CEE really is a combination of different national markets. The ability to speak local languages, read local newspapers and have access to local sources elevates the research and candidate assessment to a different level. The following is a real example of how I was very close to making a major mistake three months ago, despite the fact that I have personally interviewed and assessed thousands of candidates across CEE: In one of the smallest of the CEE countries, I interviewed a manager who is a Country Manager of a high-profile Western multinational. He is tall, 35 years old, well presented with a Western-type business style. In addition to his native language, he speaks fluent English and German. Professionally his skills are matching the position as well. He left his country seven years ago, went to Holland, completed a management education program and worked several years in Holland. He also worked in another Western country for a year for a multinational before repatriating to his home country to take up his current Country Manager position. I was ready to shortlist him, but asked Pedersen & Partners local researchers to check references. The result was

shocking. Seven years ago, shortly before emigration, the candidate was very directly involved in killing a businessman. He has never been sentenced. Although much has happened in the past seven years in this country, many people still remember and are astonished that a top Western firm has a Country Manager with such a questionable reputation. I am sure that such detailed information could not have been obtained by a foreign researcher calling from a foreign CEE hub. While being an exceptional example, the message is clear: search firms must understand, speak the same language and have the network of connections in the local market they work in. CONDUCTING BUSINESS IN CEE There are a huge amount of business opportunities for companies and entrepreneurs in CEE. Combine a clear strategy with a strong management team and CEE cannot avoid becoming a region of milk and honey. The growth in the region is one of the best in the world as customers still have many uncovered needs. In the Eastern part of the region there is an enormous amount of potential that requires development, especially as there is a great deal of natural resources.

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This series of online seminars gives the person responsible for executing each phase of the search the basic building blocks needed to insure a successful search outcome. They are aimed at the search practitioner, researcher or consultant, at a search firm or in-house search team, who is looking for a process oriented, disciplined approach to search. Betty Wong Tomita & Gai Galitzine have been executing searches in the Americas, Europe and Asia for more than 25 years. They have used their experience to develop full day workshops for beginning as well as experienced executive search consultants and support staff. This series of real-time online seminars is a unique opportunity for those people who are unable to attend the workshops to benefit from the techniques and approaches Betty and Gai have distilled from their broad knowledge of the industry. Each seminar provides an in-depth exploration of specific topics in the search process through interactive dialog and demonstrations based on extensive real life search experiences.

BUILDING SEARCH STRATEGY – How do I lay the groundwork for a successful search? Acquire the basic tool kit for getting a jump-start on every search. Discover how to get the information you need at the start of the search. Learn how to develop a disciplined search strategy and process. DATE AND TIME: February 13, 2008. New York 11am; Los Angeles 8am; London (UK) 4pm; Frankfurt (Germany) 5pm

NAME IDENTIFICATION – How can I find these people?

This seminar outlines different methods of getting names with a focus on the cold call into target organizations. Basic cold call telephone approaches with real life examples. How to prepare in order to get the most out of every call. DATE AND TIME: February 20, 2008. New York 11am; Los Angeles 8am; London (UK) 4pm; Frankfurt (Germany) 5pm

APPROACHING CANDIDATES – How do I get the most out of this conversation?

Covers key telephone techniques including how to engage the other person and how to pitch your search. Learn how to listen and build a relationship on the phone. Demonstration of the art of soft sell and sourcing. DATE AND TIME: February 27, 2008. New York 11am; Los Angeles 8am; London (UK) 4pm; Frankfurt (Germany) 5pm

PRE-SCREENING CANDIDATES – Is this person a candidate?

How to put together a checklist. Learn how to hear what they are really telling you and how to hear what they are not telling you. Find out how to evaluate what you have heard. DATE AND TIME: March 5, 2008. New York 11am; Los Angeles 8am; London (UK) 4pm; Frankfurt (Germany) 5pm

GETTING THE COMPLETE PICTURE – How do I check references?

Develop a referencing strategy. Find out how to question effectively and how to listen to the answers. Learn how to assess the responses. DATE AND TIME: March 19, 2008. New York 11am; Los Angeles 8am; London (UK) 4pm; Frankfurt (Germany) 5pm For more information and to book please visit www.search-consult.com/webinars Each session costs USD150 / GBP80 / EURO100 Group discounts available! Please call us on +1 (201) 653-0013 or +44 (0)20 7749 6102, or send an email to events@search-consult.com. Online payment facility as well as downloadable booking form available at www.search-consult.com/webinars

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The opportunities are so vast that as long as you are well organised and driven, you can take almost any product or service and roll it out step-by-step across CEE. For over a decade now, many companies have moved their production from the West to Eastern Europe. This trend is continuing, as many more companies are entering the region. Others are expanding their presence and looking to open offices in various cities and countries within CEE. For the last 5 years shared services centres have entered the region at full speed, and it will continue to increase in the years to come. For example, today it is normal that the order processing in Sweden is executed from Prague, or that Paris accounting is done in Krakow. The last step required is to move a company’s European Headquarters and top management to CEE. Thus far, European top managers have, in practice, a larger say on this issue than their shareholders. As a result, this is still not occurring. Nevertheless, some US, Japanese and Chinese based multinationals have placed European HQ’s in CEE, as this trend appears to be on the increase. THE EXECUTIVE SEARCH INDUSTRY IN CEE Traditionally executive search firms have worked for multinationals rather than local firms, but the local segment is growing rapidly during the last five years as local firms have started to understand the value added of executive search. Large local firms in large markets, like Russia, are already experienced users of executive search. The multinationals still make up the bulk of the executive search revenue. They mainly use executive search services to expand sales organisations across the region. The multinationals also operate plants or shared services facilities with large headcounts, but only a few of these headcounts are executive level positions. The history of the executive search industry in CEE mirrors that of its clients. In the early 1990’s a few Western European executive search firms acted as pioneers,

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spotting the opportunities in CEE. By the mid 1990’s, these firms had obtained market dominance. From the mid to the end of the 1990’s, global executive search firms expanded into CEE by recruiting top consultants away from the pioneer search firms, taking market share and opening offices in some of the most important countries like Poland, Czech Republic and Hungary. During the same period, local firms emerged, and developed the required professionalism needed to compete with local and global search firms. Some managed this independently, but many became members of international networks. During 2000 to 2002, the industry experienced a shake up. Some of the pioneers faced serious financial problems, or split into sub firms. The global firms stopped their expansion plans in CEE. In fact, two of them even closed down some of their offices in the CEE region. Since 2002, the pioneers and global firms have focused on rebuilding their businesses in existing offices, but have not expanded geographically. They have rebuilt their businesses successfully, and are now ready to move forward. During the past 12 months several of the global firms started expanding again through office openings and acquisitions. In addition, since 2002 local firms have gained

significant strength. In almost any CEE country look at the top 3 executive search players, and there will be at least one locally owned company. Like in Western markets there are as many strategies as there are executive search firms. Some have, like Pedersen & Partners, decided to work with executive search and one brand only. Others operate other brands or business lines such as management assessment, coaching selection, training etc. The demand for all these other services is also increasing, so partners have the problem of deciding which of several good business lines to focus on. Within the executive search business, a few firms have decided to dedicate themselves to specific industries, but it’s the exception rather than the rule. Most countries in CEE are too small to justify industry specialisation on a country level. All the executive search firms in CEE are doing very well right now. Their clients are also doing well in the CEE region. The market continues to develop and the future for executive search, and its respective clients, looks extremely bright. Poul Pedersen is the founder and Managing Partner of Pedersen & Partners. Mr. Pedersen is one of the most experienced executive search consultants in the CEE region. He has conducted executive search assignments in the region since 1995. Previously Mr. Pedersen was a Managing Director for a manufacturing company in the Czech Republic owned by the A. P. Moller Group. Prior to that, he worked for eight years with KPMG in Copenhagen and Brussels. Poul Pedersen holds an MBA from IMD in Lausanne, a Masters Degree from the Copenhagen School of Economics and is also a Chartered Accountant. In addition to his native Danish, Mr. Pedersen speaks fluent English and German. Pedersen & Partners is a leading executive search firm in CEE. Without comparison, it is the largest firm when it comes to geographical coverage of the region. The firm is fully and exclusively dedicated to executive search. It is not a member of any international network, but seeks to build search referral relationships with firms outside CEE. Pedersen & Partners operates 29 wholly owned offices, across 28 countries. It has offices in large CEE countries, but also cover smaller ones, where no other international executive search firms are present. Today Pedersen & Partners has offices in Almaty, Athens, Baku, Belgrade, Bratislava, Bucharest, Budapest, Chisinau, Istanbul, Kiev, Ljubljana, Minsk, Moscow, Nicosia, Prague, Riga, Sarajevo, Skopje, Sofia, St. Petersburg, Tallinn, Tbilisi, Tel-Aviv, Tirana, Toronto, Vienna, Vilnius, Warsaw and Zagreb.

www.search-consult.com For more information visit: Web: www.pedersenandpartners.com

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On-Boarding:

an Old Practice

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hen most hiring managers are asked how much it costs to lose a high-performer from their company, most counter the question with a blank stare. This is telling considering the cost to replace an employee is estimated at two times their annual salary. Recently, Booz Allen Hamilton released a study that tracked CEO departure over a period of six years. The study revealed that voluntary CEO turnover had increased to 59 percent, and performance-related turnover increased to 318 percent. The firm followed data from 2,500 large publicly traded companies and determined that 357 CEOs had left office in 2006, a number that had increased annually with each subsequent year. As the level of dissatisfaction with CEO performance continues to increase, the trend toward CEO departure shows that more often than not companies are concentrating on grooming in-house leaders and are turning away from outsider and interim CEOs. The issue of employee retention and performance is a pernicious one with most companies, so human resources professionals have been challenged with finding a solution to a problem that

by Mary Kier is influenced by a series of recognizable factors. However, one of the key issues that got lost in the equation was how well leaders were being trained. After all, if leadership isn’t being trained properly, what can be expected from the staff? Employees are no longer becoming “lifers” when they accept a position with a company. On average, employees stay with an employer for no longer than two to five years. In fact, human resources experts have determined that most new employees will leave in the first six months to a year of being employed, and so companies are doing everything they can to put an end to early departure from a new employee. ON-BOARDING IS NOT ORIENTATION Industries that are falling short of retaining good employees are starting to pay close attention to the quality of their on-boarding program. On-boarding is designed to increase the productivity of a new employee in less time, in order to prevent an employee from leaving a company prematurely. The difference between on-boarding and traditional orientation is that onboarding has a set of metrics that serve to achieve a result. These metrics determine the quality of the on-boarding

program, and are consistently scrutinized and modified to reach an intricate set of goals. The outcome is an understanding that employees are only as good as the specialization of their training. During my twenty year career in executive search, I have seen recruitment outcomes go awry based on the absence of an adequate on-boarding program. To me, it is a matter of good business sense considering the time and cost it takes to recruit a senior level executive, as well as the cost of various incentive packages that many receive when they are hired. All of which would be lost if the new employee decides to leave. On-boarding is a key preventative measure in retaining quality performers, and significantly influences first impressions. Companies that value on-boarding programs are proving that employees who come into an organization ‘embraced’ in a professional way are more likely to be successful. A new leader deserves to be given as much information as possible about the company, its people and its culture. They can then decide on critical action plans with a deeper level of understanding. Armed with this information, they will have more confidence to provide direction and to show results. ISSUE 32 2008 search-consult

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ADVANTAGES OF ON-BOARDING “Advantages for companies include the fact that the cost of an insurance program in the form of an on-boarding is far less than the cost of placing the talent,” said Barbara Bridendolph, CEO and President of Crenshaw Associates, a New York-based career advisory firm for senior level executives that offers their clients a “first 100 days” customized onboarding program. The program was one of the first in the nation designed to meet a company’s growing demands for a value-added on-boarding. “Companies always want to minimize the amount of corporate upheaval in terms of reorganization,” said Bridendolph. “The time executives have to ramp up and start showing results is continually pressed by the board and executive management. A high quality on-boarding program can only help in the assimilation of new employees and get them up to speed in a faster and more efficient manner, saving the company millions of dollars in recruitment costs.” On-boarding goes beyond simply filling out paperwork and waiting for someone to assign a new employee a desk and computer. The idea of employee autonomy is fading, and now companies are assigning an “onboarding mentor” to a new employee when they first start the job. The mentor’s primary function is to provide personalized assistance in getting the new employee up to speed by helping them to transition with the culture, the people they will be working with, and the day to day of the job. Another measure that has been taken to increase new employee retention, as well as keeping production at an optimum level, is a new incentive program that holds a manager responsible for staff performance. The incentive comes in the form of bonuses that are no longer determined by the outcome of the budget. Managers are now at risk of losing personal bonuses if their team is not trained properly.

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Companies that are practicing this new bonus accountability system have found that taking a hard line with management over how well a new employee is trained is essential to the overall success of the on-boarding program.

Mary Kier

New executive leaders need to be able to meet their challenges without land mines or other traps. They need to be able to manage themselves as they are managing others, and in order to create momentum they have to have help behind the scenes from their peers. Statistics demonstrate that 40 percent of executives who fail will do so within 18 months on the job. It is clear that professional on-boarding, designed well and structured correctly, will help senior executives get up to speed in their new jobs quickly, both professionally and personally. HOW EXECUTIVE SEARCH FITS IN At its core, the executive search service is designed to place the ideal candidate in a position best suited for them at a client company. For those of us dedicated to providing a quality service, we are interested in the longterm success of our placed candidate, and their ability to become an integral

member of the client organization and begin taking roles of increasing responsibility. Many times we view our own credibility as being tied to the candidate’s performance. It is no wonder that many search professionals view on-boarding as a fundamental exercise when integrating a new employee into the company. Our clients can be coached into onboarding discussions by simply asking, “How do you assimilate a new employee into your organization?” If they do not employ an on-boarding program, I have found that this question will start them thinking about the missing elements that need to be incorporated into the hiring process. If they have the resources to build a complete, official program, many clients can be referred to specialized on-boarding firms for consultation. To effectively serve as an advisor and trusted partner to our clients, search professionals must be experts on every angle of the employee experience from on-boarding to coaching and mentoring. Not only does it uplift the quality of our service, but it will facilitate a positive and longer-lasting career experience for our placed candidates.

Mary Kier is the Vice Chairman of Cook Associates, Inc. She has over 20 years of experience delivering exceptional search services in consumer-related markets. Her executive search career began in 1984 and today she leads the firm’s Consumer & Retail and Diversity practice areas. She is also the Americas representative for InterSearch, one of the top ten worldwide executive search consortiums, serving as a speaker at annual global summits and managing relationships with search partners in 45 countries. Cook Associates, Inc. is a retained executive search and M&A advisory services firm. Our core business is creating value at the intersection where talent and opportunity connect, and we are uniquely positioned to help our clients capitalize on the brightest talent and best performing companies in the marketplace. Our client base ranges from multinational corporations to early stage entrepreneurial companies, private equity and venture capital firms.

www.search-consult.com For more information visit: Web: www.cookassociates.com

search-consult ISSUE 32 2008

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Talent Acquisition and Development Worldwide

www.aims-international.net

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Identify the right talent

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Motivate and develop talent

Copyright Š AIMS International 2007, all rights reserved.

ith a global organization of over 80 offices focused on Search and Selection, we are able to target and approach the most appropriate talent.

ur 350+ consultants provide the most appropriate HR solutions to meet your company’s business objectives; these include Assessment, Career Transition, Change Management, Climate Surveys, Coaching, Compensation & Benefits Surveys, Development Centres, HR Audit, Interim Management, Leadership Development, Performance Management, Remuneration Consulting, Succession Planning and Training.

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Build strong relationships

e build strategic partnerships with our clients by delivering the best solution in a timely and responsive manner.

For further information, please contact AIMS Marketing and Sales at ms@aims-international.net

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search-consult Issue 32  

The International Executive Search Magazine

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