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How to Partner with an Executive Search Firm

December 18th, 2008

From: www.Heidrick.com | Heidrick & Struggles | Building high-performance boards

The best search firms offer related services such as professional development and executive assessment to support a new executive’s integration into a client’s organization

The best executive search firms do not treat engagements as stand-alone assignments to be dispatched hastily. Each search should enhance client leadership and build on prior additions, creating over time a continually strong leadership team that helps our clients not only to compete in today’s marketplace, but also to win.

The pace of change in business has accelerated dramatically over the past decade, and promises to continue on its present course. During this time we all have become familiar with the speed at which a company’s well-being and leadership needs can chang as new competitors arise, customer preferences shift, and alternativetechnologies emerge.

The search for an executive can either intensify the potentially destabilizing effects of today’s business climate or provide the opportunity to turn them around for competitive advantage. The difference depends upon the ability to accurately assess the current leadership gap and to fill this gap within the context of longer-term organizational needs, structure and culture. This skill is powerful when it emanates from a long-term partnership between executive search firm and client. It is, in fact, the chief reason for their alliance.

Building Leadership Teams

The best executive search firms do not treat engagements as stand-alone assignments to be dispatched hastily; nor should a client organization consider the search firm an entity hired only to perform a single task and make its exit. Throughout our history, Heidrick & Struggles has practiced a consultative approach to executive search. Both parties are best served by fostering a long-term relationship with the mutual goals of securing the best candidate for the current opportunity and of building strong leadership teams over time – teams from which competitive advantages can emerge.

To accomplish these immediate and longer-term goals, every executive search demands satisfaction of unique requirements and points of emphasis. Still, most searches progress through five general phases. Each phase presents an opportunity for client and search firm to share and integrate their own perspectives and best practices into the process.

Organizational review

The initial consultative phase is arguably the most important in executive search engagements. A thorough due diligence and needs assessment on the client organization is vital to achieving a positive and successful search outcome. During this phase, the search team meets with search committee members, select board directors, senior management, departmental directors, and/or other relevant stakeholders to gather information on the company’s goals, strategies and culture. The search consultant and client then partner to create specifications for the desired position. A good search firm leverages its experience with previous engagements to assist the client in assessing the demands, qualifications and expectations of the position in light of marketplace realities.

Further, expectations regarding the candidates’ backgrounds, abilities and competencies,potential compensation arrangements and related information are discussed in depth. Finally,industry segments likely to yield appropriate candidates are identified and reviewed. At this time, viable internal candidates may be identified and included in the evaluation phase.

Candidate identification and review

Based on the position specifications and the client’s stated criteria and preferences, the search firm then identifies an initial slate of qualified candidates from among its network of executives. It may also survey its own global consultancy for input on appropriate and potentially interested candidates,or candidates who are content in their current situation but who might be willing to consider another opportunity. Each candidate is considered for pertinent experience, skills and cultural fit. Suitable candidates are approached by the search firm, directly and confidentially, to gauge interest and career goals. A high level of familiarity and access to the market’s most talented and experienced individuals provide a clear advantage here, for a candidate’s response to a recruiter’s call and receptiveness to an opportunity are key. Many search firms claim this level of access and influence; only a few can actually deliver.

During this time – and throughout the engagement – the client should contact the search firm if additional or different information concerning the position emerges. The most capable search firms can adjust their approach accordingly with impressive alacrity. Upon conclusion of this phase, the search firm typically delivers a full status report to the client.

Candidate interview and presentation

This phase of an executive search is where a search firm and its consultants add the most value. Gleaning the knowledge about the client company, and drawing from years of experience in assessing executives’ credentials, their ability to transfer skills, and their capacity to positively impact a business, the search’s lead consultant now embarks upon a series of extensive interviews with internal and external candidates, assessing in detail the skills, interest level and cultural fit of each. Only the most qualified candidates may be presented to the client, or the client may choose to review all assessments. In either case, a select group of candidates is invited to meet with the client.

Top-tier search firms facilitate interview scheduling and handle logistics such as travel arrangements. It is during this phase when the time frame of a search is most affected since interviews are subject to client and candidate availability.

Candidate selection and presentation of offer

Client participation is always important. But at this stage, client input and decisions are paramount. The search consultant helps the client work through the decision-making process, but the final decision ultimately rests with the client. The client shares with the consultant all interview feedback, which the consultant augments with an analysis of each candidate’s strengths and ability to meet the company’s current and future needs. If additional candidates are desired, the search firm identifies and presents them on an accelerated schedule. Educational credentials are verified before candidates are presented; as soon as a clear choice emerges, formal reference checks are performed and reported by the search firm. Top-notch search firms also provide input on a candidate’s desired compensation, and assist the client in formulating an offer, presenting it to the candidate, and negotiating its acceptance.

Should extensive, complex negotiations be required, the client and search firm may choose to tap an external compensation consultant until an agreement is reached.

Transition, closure and follow-up

This final phase includes assistance from the search firm in transition planning and executive integration, if needed. Most search firms also conduct a closing review to gauge the client’s perceptions and level of satisfaction. As part of a consultative approach to executive placement, follow-up can continue through whatever time frame is mutually acceptable. The best search firms also offer related services such as professional development and executive assessment to support the new executive’s integration into the client’s organization. Professional coaching – or “on-boarding” – during the executive’s first 100 days, for example,increasingly is chosen by companies as a way to protect their investment in the new executive.

Heidrick & Struggles: the value we provide
We are rigorous throughout the search process to ensure that we maintain high standards of excellence. An emphasis on quality is at the forefront of every search we conduct.

Our reputation as the world’s premier resource for executive search and leadership consulting services is based on the value we provide to clients through a consultative and professional approach. Access and knowledge A global network of consultants possessing geographic, functional and industry expertise. Skill A demonstrated ability to assess and recruit executives across all industries. Resources: comprehensive analysis An objective analysis of the required skills and competencies for a given position using state-of-the-art assessment tools, proven interview techniques, appropriate sourcing and professional referencing.

Solutions: insight and judgment
An intrinsic understanding of the values and critical success factors required to successfully complete each assignment as well as to build upon for a long-term, mutually beneficial partnership.

Mexico Executive Search , ,

Yahoo has hired Heidrick & Struggles to To find the right replacement for Jerry Yang

November 19th, 2008

From Fortune.com [Full Story Here]

SAN FRANCISCO (Fortune) — Tech industry watchers are already speculating on replacements for Jerry Yang, but a new chief executive for Yahoo won’t likely be named until well into the new year.

Yang announced Monday that he will step down as CEO when the board names a replacement. But finding the right leader with the right skills to turn around Yahoo (YHOO, Fortune 500) won’t be easy. Executive recruiters say it takes roughly four-to-six months to name a CEO if the board acts quickly. And a new executive typically gives at least a month notice before leaving his or her old employer. Yahoo has hired Heidrick & Struggles to find candidates.

Recruiters say that Yahoo’s board must first decide the company’s strategy is before it goes looking for a new leader. Yang stumbled in articulating that vision after taking over for Terry Semel, who molded Yahoo into a media company. Yang has described Yahoo as a “starting point” for users, a “must-buy” for advertisers, and an “open platform” for developers. Most recently, he described Yahoo as a “consumer brand.”

A new CEO will need to have a clear direction of where Yahoo is headed in order to effectively turn around the company. “You can’t fit the problem to the leader. That’s like the tail wagging a dog,” said Bob Concannon, lead tech recruiter for Boyden, which has placed executives for IBM (IBM, Fortune 500), Apple (AAPL, Fortune 500), and Palm. “You need to figure out where you want to go to find the leader to address that. At this level, a CEO is either going to really help the company or further bury it. Yahoo needs to do something because every month it gets less relevant.”

The process for vetting a new executive for Yahoo is made more complicated by the makeup of the 11-member board. Shareholder activist Carl Icahn won three spots on the Yahoo board in exchange for dropping a proxy fight last summer. Icahn has actively campaigned to sell Yahoo to Microsoft (MSFT, Fortune 500), but beyond that he has remained mum on how he plans to drive long-term shareholder value for the struggling Internet company.

Said Concannon, “Candidates have to meet with all board members to get approval. I imagine Icahn will have a big voice in this process.”

If Yahoo’s game plan is to groom itself for a sale, the company won’t have to look very far. Yahoo president Sue Decker is an obvious internal candidate to replace Yang. Headhunters say there’s no need to hire an outsider if the goal is simply to divest Yahoo’s assets. Said Charley Geoly, a tech recruiter with Russell Reynolds, “I would think Sue Decker is imminently qualified to execute a transaction.”

Speculation about possible CEO candidates has centered around Decker, former AOL chief executive Jonathan Miller, former Yahoo chief operating officer Dan Rosensweig and News Corp. (NWS, Fortune 500) president Peter Chernin.

Analysts say that no matter who takes over for Yang, Yahoo can’t rely on an outright sale to Microsoft as its exit strategy. Despite its struggles to compete with Google (GOOG, Fortune 500) in search advertising, Yahoo remains the search king’s nearest competitor. Yahoo also still has $3.2 billion in cash and returns a profit margin of 13%.

“A new CEO would still have a number of moves to improve shareholder value,” said Jefferies analyst Youssef Squali. Among its options are offering a major stock buyback, partnering with Time Warner’s (TWX, Fortune 500) AOL to form the dominant display ad business, and selling its Asian assets. “As a board, the last thing you want to do is bring in a new CEO banking on Microsoft coming back.”

Mexico Executive Search , ,

Jose J. Ruiz | Executive Recruiter
Heidrick & Struggles | Executive Search in Mexico