Jose Ruiz

Business trends and the current recession are forever changing the way corporations hire and retain talent.
By Jose Ruiz

Monterrey, Mexico (August 28, 2009).-  These are hard times for finding a new job or making a career transition. The state of the economy and uncertainty has forced many companies to downsize. Yes, downsize. Not rightsize. I don’t hear clients tell us they need to hire 100 people because they are rightsizing. Companies are downsizing and in many cases executing accross the board pay cuts. They have also been forced to rethink their strategic and business plans forcing changes in their talent needs. Requirements and career paths have been forever altered.

In the executive search business we are finding that it’s taking longer than usual for executives to transition and find a new job. It’s frustrating and difficult amid hard times and many executives end up questioning if they might be doing something wrong, if they did something wrong in the past or if they are making mistakes during their job search.  No two individuals are alike and while every case is different there is a broad trend on how corporations are hiring and retaining talent. Understanding those trends can help eliminate frustration.

Short term requirements, speed and reaction time dominate the business environment. Corporations need to plan for shorter horizons building organizations that can execute seamlessly and react quickly while guaranteeing profits and long term sustainability.

Time is money. The need for speed and lower costs has made learning curves unbearable in many business environments and it’s having a profound impact in how corporations hire. It’s not about quick learners. They want executives who have been there, done that and can have an immediate impact.. Executives with the right leadership qualities for the task at hand, industry knowledge, technical experience and proven business success in a similar environment.

Hire for attitude and build aptitude is now relegated to entry level employees. The trend for executives is now hire for attitude, assure aptitude and guarantee success.

Assuring aptitude and guaranteeing success requires a close match and fit at four different levels:

I. A broad cultural fit - Broad cultural fit includes the business and corporate cultures. The culture and business dynamics of a private family owned enterprise tends to be very different from a public global corporation. A broad cultural fit will help guarantee long term success.

II. The “Must Haves” – What we typically see in a job description: Qualifications, experience, knowledge, technical skills and functional competencies. These used to be very broad and have now become very discipline and industry specific. These are key elements to a quick learning curve, a fast start and short term success.

III. A “micro” cultural fit –  The broad cultural fit focuses on a global business and corporate cultural. A micro culture focuses on a regional or site level. At this level it is important to seek a fit in behaviors, leadership and management styles of the immediate team including subordinates.

IV. The task at hand - A position or discipline takes on a different meaning depending on the task at hand. The executive and leadership competencies required for turn-around, growth, a contraction or a stable environment can vary widely. A successful turn-around specialist is seldom the best choice for a stable environment.

A fit at all levels is not easy. Many elements that were once considered intangible are now part of a tangible evaluation process and from the stand point of an executive it’s not about right or wrong, good or bad, it’s simply about fit.

About Heidrick & Struggles International, Inc.
The world’s premier provider of senior-level executive search and leadership consulting services. The firm’s executive recruiters and leadership experts operate from principal business centers in North America, Latin America, Europe and Asia Pacific. In Mexico, Heidrick & Struggles operates offices in Mexico City and Monterrey. For more information about Heidrick & Struggles please visit www.heidrick.com

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Jobs: Lessons from the Great Recession (Business Week)

Those who still have jobs should get used to pay cuts, furloughs, and all-around uncertainty. Welcome to the age of the microentrepreneur

By Chris Farrell (Source: Businessweek.com)

Thanks to the Great Recession, another corporate taboo has been shattered: large-scale pay cuts. As a general practice, companies typically resist slashing worker pay during downturns, especially for their white-collar employees. The preferred response to falling profits has long been layoffs. The main reason both managers and workers prefer layoffs to pay cuts is that pink slips seem to concentrate the pain while pay cuts spread the distress.

“Employers are reluctant to cut the nominal rate of pay,” says Daniel J.B. Mitchell, professor emeritus at the UCLA Anderson School of Management and the School of Public Affairs. “It causes morale problems and antagonizes the workforce.”

| Read full story

About Heidrick & Struggles International, Inc.
The world’s premier provider of senior-level executive search and leadership consulting services. The firm’s executive recruiters and leadership experts operate from principal business centers in North America, Latin America, Europe and Asia Pacific. In Mexico, Heidrick & Struggles operates offices in Mexico City and Monterrey. For more information about Heidrick & Struggles please visit www.heidrick.com

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It’s not done yet.  But signs continue to indicate that we are heading in the right direction.
by Jose Ruiz

Monterrey, Mexico (August, 25, 2009).-There are internal economic elements in Mexico that can be considered serious weaknesses if the global recession continues over a long period of time. As we continue to monitor key economic data it continues to look like Mexico will dodge the bullet.

80% of Mexico’s exports go to the United States.  The economy in Mexico will begin to pick-up steam when the U.S. consumer starts spending again.

This week U.S. consumer confidence proved that the sleeping giant might be waking up. The index climbed more than forecast at the same time that national home prices increased for the first time in three years.

The increase beyond forecast may be a surprise but the correlation should not be. Most of the net worth of the average American lies in two pots: The equity of their homes and their retirement savings. Both of which had been badly battered in the last couple of years leaving the average consumer feeling unprotected wondering what they would get by with  if they became part of the unemployment statistics.

While the official unemployment numbers are still of concern reports say the proportion of people who said jobs are hard to get decreased to 45.1 percent from 48.5 percent.

The positive environment in the U.S. is already having an effect in Mexico. The peso’s strength is at levels many thought we were never going to see again. It strengthened 0.1 percent to 12.8152 per U.S. dollar today.  At some point in trading it hit 12.7674, a number not seen since November 11 of last year.

The signs are encouraging and it appears we are on the path to recovery. There are internal concerns, but there is reason to continue to be optimistic as long as the U.S. economy continues to show signs of strength.

About Heidrick & Struggles International, Inc.
The world’s premier provider of senior-level executive search and leadership consulting services. The firm’s executive recruiters and leadership experts operate from principal business centers in North America, Latin America, Europe and Asia Pacific. In Mexico, Heidrick & Struggles operates offices in Mexico City and Monterrey. For more information about Heidrick & Struggles please visit www.heidrick.com

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By Jose Ruiz
Consumer Markets

Monterrey, Nuevo Leon (August 21, 2009).- A few days back I read an article about how Starbucks’ baristas were complaining about the new ‘lean’ initiative that was turning them into robots. The baristas – from Italian etymology referring to a person working behind the bar, in this case an espresso bar – were talking about the efforts to eliminate unnecessary movements and steps to improve efficiencies. Methods long used in manufacturing lines…and fast food restaurants.

A grinder next to an espresso machine

The article called it the McDonalization of Starbucks. McDonalization? I have to say I’m not sure what the baristas were complaining about. Starbucks has been in the fast food business for a long time. It’s been years since I’ve seen a stand alone espresso grinder or a tamper in a Starbucks coffee house.

When you walk into a neighborhood coffee house the smell is different. You can spot at least two stand alone grinders that are hand calibrated to get the perfect grain size of different types of espresso beans. The barista grinds the beans, places the grind in a porta-filter and compacts the grind with a tamper and then places the porta-filter in the machine to obtain a shot of espresso. The grinder settings, the hand pressure used to compact the grind into the porta-filter, the time used to extract the shot are all variables the barista controls. It’s an art. To prepare espresso drinks, such as the now famous, caramel machiatto or a cinnamon latte, the espresso shot is added to vapor heated milk. Achieving the right temperature and speed in heating the milk to release sweetness is an art itself. Syrups are then used to add more sweetness and flavors. It has been a very long time since Starbucks baristas have controlled those variables.

Coffee Syrups

Starbucks has long used super automatic espresso machines. At the push of a button, an internal grinder, grinds the right amount of espresso and automatically does everything else for an espresso shot to come out of its spout. There are no syrup racks at Starbucks, only pre-prepared concentrate mixes for their drinks. Don’t get me wrong. It’s not a bad thing. It guarantees me that a teenager who just got started will prepare my short latte the same way a seasoned barista can in the same store. It’s a good thing for consistency. But it’s no longer an art at Starbucks. Baristas can complain about the McDonalization of Starbucks but they really have not been true baristas in a long time.

A Tamper

But here is the irony. This morning I walked into a coffee shop. The smell was there. Two grinders stood tall on the bar along side a syrup rack. A tamper and a used grind box was there sitting next to a three group espresso machine. I asked the barista if he could do something special for me…and he did! I took my drink and sat on a real leather sofa to read the newspaper. I wanted to take out my laptop to write this but it just did not feel right.  Ahh, a real coffee shop: A McCafe. Yes, you read right: A McCafe sitting next to a McDonald’s sharing a terrace. McCafe’s are incorporating traditional coffee house techniques and training real baristas.  

Maybe those baristas complaining about the McDonalization of Starbucks should go work for a McCafe.

…Oh, and the price of my short latte was about 20% less compared to Starbucks.  

A McCafe: Notice the grinder on the bar and the real cups sitting on top of the espresso machine. It's a coffee house! They're getting it right.

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Back in 1997 FastCompany published this must read article by Tom Peters in its 10th issue. The article takes on a new meaning in today’s web 2.0 environment. Sites like Facebook, Twitter and the blogsphere are a few of the tools that we currently have to brand ourselves and like Tom puts it: be the CEO of Me Inc.

- Jose

The Brand Called You
by Tom Peters | Fast Company, Issue 10, 1997

Big companies understand the importance of brands. Today, in the Age of the Individual, you have to be your own brand. Here’s what it takes to be the CEO of Me Inc.

It’s a new brand world.

That cross-trainer you’re wearing — one look at the distinctive swoosh on the side tells everyone who’s got you branded. That coffee travel mug you’re carrying — ah, you’re a Starbucks woman! Your T-shirt with the distinctive Champion “C” on the sleeve, the blue jeans with the prominent Levi’s rivets, the watch with the hey-this-certifies-I-made-it icon on the face, your fountain pen with the maker’s symbol crafted into the end …

You’re branded, branded, branded, branded.

It’s time for me — and you — to take a lesson from the big brands, a lesson that’s true for anyone who’s interested in what it takes to stand out and prosper in the new world of work…

| Read Tom’s article here

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By Jordan Golson (GigaOm/Businessweek.com)

As social networking sites explode in popularity, they have become the prime avenue for many job hunters

The Internet has changed a lot of things over the past decade or two—including how we search for jobs. Sure, the basics are the same: Find an opening and apply for it. But the Web has permanently altered the employment process. And with more than 1.2 million info tech jobs lost this year, according to the U.S. Bureau of Labor Statistics, a lot of people are going to be using every tool they can get to find their next job.

While networking is (and has traditionally been) the best way to find a new job, the second-most effective tool is another type of networking: sites like LinkedIn, Facebook, and Twitter, according to a poll released Aug. 17 by placement firm Challenger, Gray & Christmas. Old-school employment search tricks like attending job fairs and reading newspaper classifieds got the lowest ratings. Here’s how the Web is changing how we look for jobs.

| Read full article

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By Jose J. Ruiz – Heidrick & Struggles

Monterrey, Mexico (August 18, 2009).- Positive signs continue to bring hope that an economic recovery, though a slow and long one, has arrived. There is an emphasis on slow and long.

The peso dropped against the dollar by 1.3 percent on Monday, the single biggest drop since May 11, before climbing back and positioning itself slightly below 13 pesos per dollar around noon today.

Concerns were awaken a few days back as Finance Secretary Agustin Carstens said Mexico faces the worst “fiscal shock” in 30 years because of declining oil production. This means there will be little money left to stimulate the economy. However, the biggest factor in Mexico’s economic recovery will continue to be consumer demand in the United States simply because Mexico sends more than 80% of its exports to the U.S.

“The United States was not only at the origin of the crisis, it is central to any world recovery,” said Olivier Blanchard, the chief economist of the International Monetary Fund.

At least for now, the positive signs in the U.S. continue.

Automotive Industry
GM has called back over 1300 union workers as the company prepares to boost production during the second half of the year. In Mexico, GM recently inaugurated a transmission plant in San Luis Potosi. This is a great sign for Mexico considering 21% of exports come from the automotive industry.

Blanchard believes the recovery has started but has cautioned it can’t be sustained by government programs such “Cash for Clunkers”. The private sector needs to be the engine of economic activity.

Demand still needs to recover and it will take years for it to reach pre-recession levels but having inventories drop enough to kick-start plants that had be shut down is a great step forward.

Housing and Construction in the United States
There are still many negative sides to the housing equation in the United States. Foreclosures will continue to be fed by many variable-rate loans that will reset between now and 2012 putting downward pressure on pricing but for the first time in many years renting is now more expensive than buying for those with a good credit rating and cash in the bank.

The amount of deals in the market has stopped the price slide in places like San Diego where the medium price of a home in July stood at $320,000, up from $316,250 in June but still below July 2008′s $364,000. Some builders like KB home expect to show year-over-year increases in sales for the current quarter.

U.S. housing starts declined by 1 per cent in July, ending a two-month winning streak but despite missing expectations, watchers viewed the housing data as a largely positive development. The drop can be attributed to apartments since construction of single-family homes rose by 1 per cent to the highest level since October 2008, for the fifth straight monthly increase.

It’s too early to pop the Champaign bottle but it appears that activity in both the construction and automotive industries may have stabilized to a degree.

Jose Ruiz is a Principal in Heidrick & Struggles’ Monterrey office. As an executive recruiter he has worked on executive search projects for multinational clients in industrial sectors and consumer markets. He can be reached at +52 (818) 8625-6521 or jruiz@heidrick.com

About Heidrick & Struggles International, Inc.
The world’s premier provider of senior-level executive search and leadership consulting services. The firm’s executive recruiters and leadership experts operate from principal business centers in North America, Latin America, Europe and Asia Pacific. In Mexico, Heidrick & Struggles operates offices in Mexico City and Monterrey. For more information about Heidrick & Struggles please visit www.heidrick.com

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America Economia (Agosto 2009)

Por Arly Faundes

Cuando todo parece estar en contra, un buen jefe se vuelve fundamental para las organizaciones. Por ello, las crisis son escenarios privilegiados para descubrir al líder que llevamos dentro.

No es fácil estar en medio de una tormenta y decidir hacia dónde remar. Alguien tiene que guiar al resto para que todos vayan hacia el mismo lado y no termine por hundirse el bote. Ésa es la labor del líder: conseguir que su equipo lo siga y obtener buenos resultados. No sólo porque los demás sean sus subordinados, sino porque realmente confían en él, en su actuar y en que está tomando las decisiones correctas. “Son aquellas personas que tienen credibilidad por lo que hacen”, dice Fernando D’Alezzio, director de Centro de Negocios Pontificia Universidad Católica del Perú (Centrum).

Esto se vuelve aún más fundamental cuando la tormenta es una crisis económica mundial que azota a gran parte de las industrias, el consumo, el empleo. A todo y a todos. “Una característica de un buen líder es adaptarse a la situación en particular que se está viviendo”, afirma José Ruiz, director general de Heidrick & Struggles en Monterrey, empresa de reclutamiento y consultoría en liderazgo.

Según Ruiz, en momentos de crisis, una persona pasa por tres cuestionamientos. Cuando comienza la urgencia, se pregunta: “¿qué está pasando?”. Después de identificar la situación, evalúa: “¿cómo me está afectando, estoy en riesgo?” Y el tercer paso es asimilar la situación y ver qué sigue y qué se debe hacer. Las respuestas a estas interrogantes son las que un buen líder responde tanto para él como para informarlas a todo su equipo.

Por esto la comunicación y la transparencia son clave. Lo importante, dicen los expertos, es disminuir la incertidumbre. “En tiempos de crisis económica son momentos en que los liderazgos se consolidan y duran por mucho tiempo”, agrega Ricardo Aparicio, académico de Ipade, en Ciudad de México.

¿Y cómo han reaccionado los líderes en América Latina? “Hay que aprender mucho de esta lección”, dice D’Alezzio. “Tenemos buenos gerentes, pero no buenos líderes”. Según el académico, falta una visión hacia el bien común. Una visión de largo plazo y que se trabaje más allá de los beneficios para los dueños de la empresa, sino para la sociedad. “El liderazgo no permea toda la organización”, agrega Roberto Cabrera, especialista de la consultora KPMG. “Se toman las decisiones de manera adecuada, pero no se crea una visión ni se comunica”.

| Leer articulo completo en AmericaEconomia.com

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You Corp.
Succeed by applying to your personal life and career the same principals that propel leading corporations.

by Jose Ruiz

The exact definition of business is a matter of debate.  But without getting into much detail or controversy a business is a legally recognized organization designed to provide goods and/or services to consumers.  Formed to earn profit that will increase the wealth of its stake holders and grow the business itself.
 
If you are reading this there is a high probability that you work, you are either an employee or an entrepreneur.  It really does not matter.  In the end, you do something (your product) and someone pays for it.  People who surround you or depend on you such as your wife, kids, parents are affected by how you do it and what you get. They, along with you, are stake holders. I’m pretty sure that you and your stake holders have felt the need to increase your wealth. You are a business.
 
Working in executive search I speak to many managers and directors from Fortune 500 organizations. They are masters of business strategy and execution yet, most of the time, I get a strange look if not a blank stare when I ask how they have applied those concepts to their person and how they have used those concepts to get to where they are. I truly can’t say they got there by chance. But I’m also not sure it was always something that was planned and mapped out. There are moments in time which change the course of events, alter the paths of your career and change your professional life. Some are positive and some are negative and for most of us the majority of these events are unexpected.
 
When I ask people who have had successful careers what the secret is, the most common response is “hard work and perseverance”. Check! You won’t be successful without them. But I also know many people who have worked hard, been relentless and have fallen short of their goals. There are no guarantees that you will be successful and achieve all of your goals, but I bet you can increase your chances by applying the same business concepts great corporations use. You might already work for one and apply them everyday, you just might not be applying them to yourself.
 
Identify and understand your stakeholders
People who surround you or depend on you such as your wife, kids, parents are affected by how you do it and what you get. What are their needs today and what will they be tomorrow? Your needs and those of your other stakeholders should be your big objective.
 
Know, understand and develop your product/service 
Know what makes you valuable and think about how your current job or activities will affect that value. In the end, your employer is your client. How many potential clients do you have? Be strategic. Everything you do should be part of the creation of a unique and valuable position. A good strategy may require you to make trade-offs – Your resources are limited. Choosing what not to do is just as important as choosing what to do.
 
Create and propel your personal brand
Yes, you are a brand. Distinguish yourself and make sure you never forget that perceptions matter. People remember you and what you are by what you do and what you reflect. Work on a positive brand.
 
Apply The Hedgehog Concept (Simplicity within the Three Circles)
Good-to-Great companies do what they can do best (as opposed to what they want to do best), what they are deeply passionate about, and they focus on what drives their economic engine.
 
Be effective: Plan and execute seamlessly
Know where you want to go, plan how you are going to get there and when. Be visionary. Spot trends but stay focused and constantly reassess everything.
 
Focus, document and measure relentlessly
Use a central score board and share it with your stakeholders. Goals slip when progress is not being measured…and measured against time. Set milestones at frequent intervals. When gaps occur, question what went wrong and apply corrective actions.
 
Be ruthless with resources and stay financially flexible
We live in a world of cycles. Recessions and economic crisis will happen and most likely a few times in our lifetime. Be prepared, don’t lose focus and be sustainable. Plan long term.
 
Don’t B.S. yourself
B.S. your clients or your stakeholders and it will have an impact on your personal brand. B.S. yourself and you will be on a direct path to failure. Believe your own B.S. and you are done.

Jose Ruizis a Principal in Heidrick & Struggles’ Monterrey office. As an executive recruiter he has worked on executive search projects for multinational clients in industrial sectors and consumer markets. He can be reached at +52 (818) 8625-6521 or jruiz@heidrick.com

About Heidrick & Struggles International, Inc.
The world’s premier provider of senior-level executive search and leadership consulting services. The firm’s executive recruiters and leadership experts operate from principal business centers in North America, Latin America, Europe and Asia Pacific. In Mexico, Heidrick & Struggles operates offices in Mexico City and Monterrey. For more information about Heidrick & Struggles please visit www.heidrick.com

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By Jose Ruiz

Monterrey,  Mexico (August 5, 2009).- I’ve said it more than a few times: A full manufacturing recovery in Mexico will be slow and very dependant on the automobile industry which makes up 20 percent of Mexico’s industrial production and it looks like we are headed in the right direction.

Factory orders in the US rose in June for the fourth time in five months, an unexpected gain and the latest sign that the ailing manufacturing sector is recovering

Cash-for-clunkers, the program in the US that gives up to $4,500 in rebates for trading in old gasoline chugging cars for newer fuel-efficient vehicles has injected new life into the automotive industry. Almost 250,000 consumers have taken advantage of the program.  This is not even close to a permanent solution, but it is certainly a life line for the automotive industry when it needs it the most. Dealerships had huge inventories going into the second half of the year when 2010 models start arriving. The program coupled with the automakers’ production cuts has slimed down inventories.

Dealers in the US have reported very slim inventories of the Jeep Patriot, Ford Focus, Fusion and Honda Civic. Some GM dealers are even reporting spot shortages of full size pick-ups.

This may not fix the overall demand issue but it has at least cleaned out the excess inventory of smaller models and given manufacturers a clean slate to plan production according to demand.

All of this is good news for Mexico’s automotive industry manufacturing facilities that supply parts and assemble small and compact vehicles.

Jose Ruiz is a Principal in Heidrick & Struggles’ Monterrey office. As an executive recruiter he has worked on executive search projects for multinational clients in industrial sectors and consumer markets. He can be reached at +52 (818) 8625-6521 or jruiz@heidrick.com

About Heidrick & Struggles International, Inc.
The world’s premier provider of senior-level executive search and leadership consulting services. The firm’s executive recruiters and leadership experts operate from principal business centers in North America, Latin America, Europe and Asia Pacific. In Mexico, Heidrick & Struggles operates offices in Mexico City and Monterrey. For more information about Heidrick & Struggles please visit www.heidrick.com

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