Learning Together

Over the past 25 years,  David Magy – Principal at Abeln, Magy & Underberg and a member of the IACPR’s  Small Search Firm Planning Committee - has  earned the reputation as “expert” in the field of retained search, corporate recruitment and workforce consulting. His firm is recognized as a respected partner in recruiting key talent within a large array of businesses. Here he talks about his experience at the IACPR Small Search Forum and Leadership Strategies Summit held this past October. 

This past week, I had the opportunity to attend two one-day conferences – the International Association for Corporate and Professional Recruitment  (IACPR) Small Search Firm Forum as well as this same association’s annual conference , with the theme of BuildingEffective Leadership Teams.

I came back with pages of notes – many things learned as well as more ideas and concepts to talk about with my work colleagues and clients. Before I get to some of the takeaways, I must say that it was incredibly energizing to be part of the Small Search Firm Forum – to sit in a room with 25 small search firm owners and learn together.  This was not about competing (yet one of my best competitors from this market was sitting right next to me); it was about all of us learning together – and being better for our clients and candidates.  The other people in the room were from across the country and globe.

 

Some key learnings:

If you want to know what your clients want, ask them. We conducted a survey of corporate clients and asked what they valued from their retained search partner. Their list was important to hear.  Some of the items they highly value are:

• Sourcing skills to identify passive candidates
• Industry knowledge (or the ability to understand/tap into it)
• Understanding of culture fit

We have written about organizations that exist where you can arrange for someone to give you a fake reference OR verify a degree if you do not have one. We learned about sources for more deception. Just google Fake Your Resume – quite concerning.

Recruiting different generations – one size does not fit all! We as firms need to better understand corporate culture and norms of behavior. Equally important. we need to discuss these generational-specific issues with our clients – and then with our candidates.

We discussed relocation trends. Home buying is coming back! Midsize companies are increasing their relocation budgets as the war for talent heats up.  

Offer letters (and contracts, if used) need to state the principal office location. With more and more people commuting long distances to work or assuming more work-from-home time than the employer is planning, location expectations need to be better defined – to assure there is a mutual understanding of location/presence intent.

My favorite quote (from the main conference):

John Gerzema, one of the authors of the book The AthenaDoctrine: How Woman (And The Men Who Think Like Them) Will Rule The Future, spoke to  us about the study he (and others) conducted on the leadership attributes that are guiding companies to prosperity. He quoted many of the people he met with around the globe. One quote that was extremely powerful, for business and politics, was from Shimon Peres, President of Israel.

“We are in a new world with many old minds.”

 For more of David Magy’s blogs, go to the Abeln, Magy & Underberg site.

 

The Athena Doctrine

This Q&A with John Gerzema and Michael D'Antonio, co-authors of The Athena Doctrine: How Women (and the Men who Think Like Them) Will Rule the Future appeared originally on the Amazon Website. John Gerzema will be joining us as a key speaker at the IACPR Leadership Strategies Summit 2013, October 29 in NYC. Here the authors talk about “feminine values” and how they apply to your leadership team.  

What are "feminine values" and why do you see them on the rise today?

We asked 64,000 women and men in 13 countries to classify 125 human traits--half of the sample by gender and the other half by which are most important to leadership, success, morality, and happiness today. They consistently picked what they considered "feminine traits" or values--such as selflessness, empathy, collaboration, flexibility, and patience--as the most important.

The majority also rejected masculine notions of control, aggression, and black-and-white thinking that underlie many of our business, political, and social structures. And two-thirds thought the world would be a better place if men thought more like women.

What's driving this shift, and why is it important that we learn about it now?

Technology, the financial crisis and globalization mean we live in a world that's increasingly social, interdependent, and transparent. Also, young people around the world don't see differences older generations do--we found that Millennials of both genders have a much stronger appreciation of femininity and the role of women in their society.

We want to make clear that we're not saying women are "born this way" or that they are "naturally" more empathetic or open. Rather, these are skills that have been traditionally segregated or labeled as part of women's domain, and often are undervalued, when in truth, being "feminine" actually make all people more human, and helps them become the best version of themselves. These skills will help people match the needs of the future economy. In a collaborative world where value creation is increasingly based on services, economic growth and standard of living are enhanced by including feminine values. In our surveys, 81% of people said that man or woman, you need both masculine and feminine traits to thrive in today's world. It's a big, global value shift, and it's gaining momentum.

What should businesses and government leaders learn and apply from this book?

"The Athena Doctrine" is our name for an emerging form of leadership that is ideally suited to a rapidly changing world. We've had people tell us that this is a great book for women, but it's equally, if not more importantly, for men. Business and politics are built on aggression, control, conflict and command. These models are losing currency fast. Shimon Peres put it this way to us: "We are in a new season with many old minds, and the task is to adapt yourself. The modern leader is here to serve."

We traveled the world to find examples of how leaders in every kind of organization are already applying the tenets of the Athena Doctrine. Inspiring, innovative models are everywhere, and we found some of the best.

Are these tenets just for leaders, or can ordinary people apply them in their own lives and work?

The tenets-based on the traits that we found were most highly correlated with success, morality, and happiness-are widely applicable to daily life. We had this amazing experience traveling around the world to find stories of people leading and solving problems in business, politics, and every realm of life. We met a doctor from Pakistan whose vulnerability disarmed (and charmed) his colleagues in the ego-driven world of medical research. We visited a city farm in east London where underprivileged kids taught investment bankers about beekeeping and the lessons of responsible risk-taking. We met ordinary citizens in Japan who rose to their highest levels of humanity to help others after the tragic earthquake and tsunami.

These values are broadly applicable to anyone in everyday life. We found that people who are thinking in a more feminine way are twice as optimistic about their future. If we can all tap into our feminine side, we'll be better, happier, and stronger-both individually and collectively.

What do you hope to achieve with this book?

We're both dads in all female households with three beautiful daughters between us. We are excited about what we found because feminine values are really a form of innovation and competitive advantage for today's world. The proceeds of our book benefit the United Nations Campaign's Girl Up program and we aim to include men and boys in this very important discussion.

Meeting New Expectations in a Pressured Marketplace

Adam Lloyd is an IACPR Board member and President of retained search and leadership consulting firm Webber Kerr Associates, with offices in Tampa and New York. Here he talks about how the down economy has created, out of necessity, alternative models for acquiring senior executive talent. The blog is excerpted from a recent HRO Today article.  

From Wall Street to Main Street, the United States economy to the global economy, almost all organizations were forced to react quickly and scale their businesses. Spending habits changed, waste was cut, and people and organizations alike did without.
Being in executive search, there was a major concern about the need and the budget for our services in this new set of business initiatives. The business model had to change, and become more of a partnership between search firm and client.
So in addition to the vetted talent required for the search, we began providing market intelligence reports from the data collected during the process. These reports, which are custom and owned by the client, include: 

• Prospective talent pipelines. These compiled lists of potential candidates in the designated market include information on the individuals, such as contact information, title/company, career progression, interest and motivators for pursuing or not pursuing new opportunities, salary range, relocation/commute/travel flexibility, perception of client, etc.
• Regional data. This includes motivators and cultural drivers of the talent pool (work-life balance, financial reward, commute distance), local competitors and sources of talent. This type of information has been used by clients to make decisions on selecting new office locations, making acquisitions, etc.
• Industry trends and competitive intelligence. This information is gathered as it relates to trends within the client’s industry, including new product launch, lay-offs/downsizing/salary reductions, and new advancement opportunities for employees within competitors. It helps clients stay competitive to attract talent in the market. 

Because the clients own this information, they have the ability to access it any time and use it to make new hires and other critical decisions long after our search has ended. This is where the long-term value lies.
History has proven to be cyclical. Economic conditions will continue to rebound. Search firms will continue to innovate. But have operating and spending behaviors been affected for the long term? Time will tell. 

 

The C-Suite Perspective: A Conversation with Leadership Consultant Thomas Casey

Kathy Freeman Godfrey of Kathy Freeman Company is a member of the IACPR’s  prestigious Small Search Firm Planning Committee. Recently she sat down with  Tom Casey, Managing Principal at Discussion Partner Collaborative LLC, to discuss issues confronting C-suite executives. Tom Casey will be a key presenter at our IACPR Fall Leadership Strategies Summit 2013, speaking to how to rank your leadership team, and what to do when they fall short.

Tom, you work with senior leadership both at the C-suite and a layer or two below at the Fortune 1000 companies, boutique firms, and with start-ups. You also gather data that illuminates visible and not-so-visible issues. Can you talk about how your research provides a unique advantage when consulting to CEOs?

When consulting with the C-suite, executives want their journey of learning to be based on fact and judgment instead of a consultant’s intuition. Our work is predicated on specific data that is collected across numerous sources, surveys, and studies. This diligence produces real insights resulting in timely, relevant talking points with our clients.

Can you give us an example of some data you’ve leveraged and what you did as a result?

One that immediately comes to mind is a recent Pulse Survey. The study found that 70% of 2000 executives indicated that beyond financial considerations they had no concrete post-employment plans.

The second was a Harvard Business Review (HBR) study of Fortune 500 Directors where over 50% stated they were unhappy with their company’s succession plans.

We combined these two elements into a “continuity value chain” evolving from succession planning and inclusive of phase-down and post-employment transition coaching. These subjects are hugely important at the C level and how they are addressed is equally important to their company’s ongoing viability.

Yet another example of data collected is that we ask our CEOs to assess the question, “Am I the right person for this CEO role?” Surprisingly, over 60% say “no.”  This finding supports a recent HBR article pointing out that the average tenure of a CEO in the Fortune 500 world is 3.5 years.

The assessment we do is based on emerging strategy, enterprise positioning, and incumbent capabilities. We find that there are numerous reasons why the non-alignment rate is so high between companies and candidates. They include the fact that the capabilities needed are incongruent based upon hiring error, a lack of external and intellectual curiosity leading to rigidity, and/or the changing business environment. For example, the recession required a turnaround skill while the recovery demanded a growth strategy.

What is the biggest challenge confronting CEOs trying to drive success in today’s environment? 

In our research, we annually survey 150 global CEOs and the concerns they have encompass several common themes:

• The enterprise’s ability to be a player in the global markets
• The effectiveness and efficiency of enterprise core processes
• The strategic use of social media—an area in which they feel very inadequate given their average demographic
• The talent readiness of their leadership bench and capabilities of those in the most critical roles
• Their personal abilities in the context of the changing economy and marketplace opportunities.  For example a “turnaround” CEO usually does not have the same set of skills as a “growth” oriented CEO

In recent months, more firms seem to be giving non–CEOs the opportunity to elevate their careers into the C-suite. What advice would you give to someone new to the CEO position about becoming the best leader they can be for their firm?

The three principles we advocate for a new C-suite executive are:

• Watch, listen, and learn
• Embed into your domain and/or style what works based upon observation while acknowledging then mitigating counter-productive behaviors or ideas
• Impress by performance vs. personality

What are the top two characteristics that personify successful leaders?

• A bias for educated and thoughtful action
• Reputation as a developer of your team

Contact Kathy Freeman or Tom Casey for more information.

Retained v. Contingency: When & Why?

Over the past 25 years,  David Magy – Principal at Abeln, Magy & Underberg and a member of the IACPR’s  Small Search Firm Planning Committee - has s earned the reputation as “expert” in the field of retained search, corporate recruitment and workforce consulting. His firm is recognized as a respected partner in recruiting key talent within a large array of businesses. Here he  looks at retained vs. contingency from the client viewpoint.  

A few times in the last three weeks, I have been asked by HR professionals and business people to explain the difference between Retained and Contingent search.   

It’s a common question – and one that deserves some attention

A retained recruiter does not have the same financial interest in a placement as does a contingent recruiter.  The best fit for the client and candidate is the goal.  Closing the deal, while important and the clear final objective, is not the focus of each and every action. 

A few clear differences – Retained Search Services

Retained search is always an exclusive arrangement.  As a result, search firms work on very few searches at any one time, assuring substantial effort is given to the search.

Intensive, focused research of related industries, organizations and individuals is undertaken for each search.

All candidates are thoroughly interviewed to the specific position competencies.

Educational credentials are verified and references are contacted.  (We have had three candidates ‘fail’ their education verification in the past few weeks.  While no longer as surprising as it once was, this reminds us of the importance in taking this step.)

Retained search, by its very nature means that the search process continues until a successful placement is achieved. 

This is not a ‘good vs. bad’ comparison

Retained and Contingent search business models are very different.  Contingent firms have to work in a different manner and must deal with a much higher volume in order to survive. This means that there is less time for original research for each opening and clients will received more resumes with less specific candidate information.

Retained search is structured to provide more of a consulting relationship with both the client (organization) and candidate.  As a consultant, there is an orientation toward partnering throughout the search.  

Keep asking us to articulate the difference

Retained search is often more of a mystery than it should be.  Candidates assume we are the ‘old’ employment agency of the past.  Clients are in some cases unsure of the differences in the models – and which model would best fit their situation-specific need. Keep asking – we enjoy the dialogue!

For more, go to www.abelnmagy.com

Equity & Growth Opportunities Best Way to Lure Executives

Kathy Freeman, founder of The Kathy Freeman Company is a long-time IACPR member, involved in many key prokects for the organization. Her firm, which focuses exclusively on assignments for the investment industry, has concluded its latest proprietary research designed to identify current trends among senior sales and marketing executives.
The trends identified in the paper can be leveraged by CEOs, their human resources partners or line executives to design a more effective and relevant approach to retaining or attracting this critical subset of talent.  

Reversal in Job Satisfaction Demands More Aggressive Hiring Strategy to Attract Top Executive Talent

Top executives in investment management and wealth management are more satisfied than they have been since the beginning of the financial crisis. In just four years, senior sales and marketing executives have gone from being mostly dissatisfied to being mostly satisfied with their current position. To attract talent, firms will need to offer equity more frequently and act more decisively than they have in the recent past when a compelling candidate has been identified. To retain talent, firms will need to link compensation more closely to performance and create opportunities.

 

for executives to develop new ideas, products and solutions. Contrary to what some believe, it is not a buyer’s market for talent. Executives will only move if they perceive the firm as a partner in their long-term future.

Post-Crisis, The Sentiment Changes Dramatically

What a difference just a few years can make.

 

In 2009, our research indicated that almost three-quarters of the senior executives working in the investment management and wealth management business were dissatisfied with their job and were looking for a new opportunity.

Four years later, there’s been a complete reversal. Today, more than 60% of the executives polled in our Fourth Annual Executive Survey are satisfied with their current position and aren’t looking for a new one. In fact, less than one half of the respondents in our 2012 survey were inclined to look for another job—the lowest percentage since we began our research.

 

Another surprising finding from the 2012 survey: Equity ownership is more important than ever. Executives say they are willing to stay put or even defer compensation if it means an opportunity to share in the upside of the firm’s success through equity. 

To learn more about the findings from the Fourth Annual Kathy Freeman Co Survey,  visit www.kathyfreemanco.com or call 800 883 3232.

Creating Successful Leadership Assignments in Asia

Michael Bekins, Founder and Managing Partner, CapitaPartners,  is a global thought-leader on leadership and human capital consulting. He advises clients on the pressing leadership and talent issues facing organizations in fast-evolving Asia. His passion, and the focus of the past ten years, is to understand what it takes to thrive as a leader amidst vast cross-cultural challenges, change, growth and volatility. He does this by applying more than 20 years of experience living and working in Tokyo, Hong Kong, Singapore, Malaysia, India and Australia as a partner with a top-tier global consulting firm. He has a further 10 years experience living in the US and UK.

Bart, a regional expatriate head of Asia for a fast-growing, mid-sized consumer technology company based in the US, spent two years trying to recruit a Country Manager for their largest business in Asia. This executive, young and high-potential, churned through more than twenty candidates over this two-year period, never quite satisfied enough to make an appointment. Meanwhile, Bart, always moving from sales pitch to sales pitch, drove the business in Asia until, after two years, he got the promotion he wanted back home and his assignment in Asia came to an end. He eventually left the company after a frustrating repatriation and called me with a request to assist him in his job search. “I love Asia,” he said. “I grew the business in Asia 30 percent during my two years.” I then asked him how the business is doing now. “Not good,” he said. ”After I left, the business fell apart. Weak leadership. They don’t have the talent” I wasn’t sure if he was bragging about his successes before the company’s fall, or admitting to a cardinal sin for a multinational expatriate leader in Asia: failure to build talent.

Could this peripatetic executive have achieved more by helping others be successful? Would this business be stronger today if Bart had built a stronger platform of high-potential local leaders? Bart, like many ‘heroic’ expatriate executives in bustling Asia, ended his career with this multinational with nothing to show for it. With his repatriation back to the US, the business was no better off, an also-ran in a sea of local competitors (like Alibaba).

All expats are tempted to demonstrate value immediately, to be the hero they were hired to be. Yet many expats conclude their assignments having erected castles in the sand. It doesn’t take long for waves of change to wash their achievements away, even as they get promoted for their great work.

So what’s the job of the regional multinational leader in Asia? Effective leaders define their value by setting the agenda, creating the space for others to be successful, building for tomorrow. They find ways to tap into the entrepreneurial value system in China described by Jack Ma. For some this may mean spending more time coaching talent, gaining alignment on a bigger vision, building infrastructure, or unlocking the potential of teams. Or defining a more liberating culture and creating opportunity for locals to create new ideas, business models, products or customers. Or making that long-awaited appointment in North Asia,even if not perfect. Great talent doesn’t need more heroic bosses. They need space to grow.

Tomorrow’s regional head of Asia is today’s unpolished gem. The message to Bart: take a risk on talent, give space. Talent is everything. By the time my 30 year-old associate becomes a gray-haired partner like me, two-thirds of the world’s middle class will be buying through Alibaba or through giant malls in the suburbs of Asia. Our businesses in Asia will have grown five to ten times in scale. For most companies, China will be a larger domestic market than the US. On a typical Friday afternoon, more of your suppliers, customers, outsourcers, and consultants will be connecting through Chengdu on their flights home than through Chicago, with fewer delays.

What does this mean for multinationals doing business in Asia? The Chinese consumer doesn’t know or care where your board members meet or on what stock exchange your shares trade. They want products on the shelves to meet their needs at the right price points. Jack Ma’s principles apply: Focus on the customer. Be entrepreneurial. Treat your employees well. Exploit local opportunities. Multinationals need to build talent on an unprecedented scale from the inside out. For you heads of Asia: what’s your legacy?

Visit Mike Bekins’ Executive Pipeline Blog  To Learn More.