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An Overview of Executive Pipelining Spacebar to advance.

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1 An Overview of Executive Pipelining Spacebar to advance

2 What is executive pipelining? Executive Pipelining is a process by which experienced executive recruiting professionals identify, assess and introduce market talent in support of a clients needs. At the direction of the client, the team builds a pool of market talent based on select criteria. At the direction of the client, the team builds a pool of market talent based on select criteria. Individuals are assessed and qualified based on experience and multi-point referencing from peers, ex-coworkers and top senior level recruiting partners. Individuals are assessed and qualified based on experience and multi-point referencing from peers, ex-coworkers and top senior level recruiting partners. (Spacebar to advance) These stars are introduced to clients to address current and future needs, including These stars are introduced to clients to address current and future needs, including Succession Planning (Long-term Needs) Succession Planning (Long-term Needs) Unplanned Vacancy (Immediate Needs) Unplanned Vacancy (Immediate Needs) Relationship Development (Deals, Partnerships) Relationship Development (Deals, Partnerships) Market Intelligence (competitor, M&A, Due Diligence) Market Intelligence (competitor, M&A, Due Diligence) Spacebar to advance

3 Pipelining vs. Executive Search Comment Retainer based on Retainer based on Active projects per fee Active projects per fee Success fee upon hire Success fee upon hire Peripheral intelligence projects Peripheral intelligence projects Who owns the data accumulated Who owns the data accumulated Delivery Vehicle Delivery Vehicle Addresses immediate vacancy Addresses immediate vacancy Addresses long-term succession planning Addresses long-term succession planning Introduces peripheral talent & networking opportunities Introduces peripheral talent & networking opportunities Tracks longer-term potential talent Tracks longer-term potential talent More hires lowers cost-per-hire More hires lowers cost-per-hire Pipelining Executive Search Time/Resources Hires compensation Up to three One $7,500 True-up (compensation) Included N/A Client Search firm Dedicated database Mail or Yes Yes Yes No Spacebar to advance

4 Historical Facts Since we began offering pipelining services in 2006 Prospect City has never lost a client. All remain active today. In instances where we were matched against search firms weve always won. (As a result some clients have eliminated search firm use entirely) Since we began offering pipelining services in 2006 Prospect City has never lost a client. All remain active today. In instances where we were matched against search firms weve always won. (As a result some clients have eliminated search firm use entirely) Our long-term client partnerships create in a better understanding of cultural issues and relevant market issues, resulting in progressively faster completions and a higher-quality deliverable. Our long-term client partnerships create in a better understanding of cultural issues and relevant market issues, resulting in progressively faster completions and a higher-quality deliverable. Because we charge for time and not candidate compensation, more frequent hiring results in a substantially lower cost-per-hire. Because we charge for time and not candidate compensation, more frequent hiring results in a substantially lower cost-per-hire. Traditional search firms successfully complete less than 70% of projects. While one in three projects fails, most executive search firms collect all of their fees within the first three months. All of the risk is carried by the client. Traditional search firms successfully complete less than 70% of projects. While one in three projects fails, most executive search firms collect all of their fees within the first three months. All of the risk is carried by the client. Average completion time for traditional executive search firms is 124 days. While we strive to beat it, we guarantee that our close partnership results in a growing momentum that shortens the time-to-complete significantly. In fact, one client hired 22 senior executives in a 30 month timeframe due to the momentum gained through our the partnership. Average completion time for traditional executive search firms is 124 days. While we strive to beat it, we guarantee that our close partnership results in a growing momentum that shortens the time-to-complete significantly. In fact, one client hired 22 senior executives in a 30 month timeframe due to the momentum gained through our the partnership. Clearly, transactional executive search has a place. Since the 1950s executive search business models remain unchanged as does the fee structure. Some hiring executives prefer a short, expensive transaction and want recruiters to go away until the next need arises. Others see pipelining as an opportunity to invest in an talent-building source for their evolving business. Clearly, transactional executive search has a place. Since the 1950s executive search business models remain unchanged as does the fee structure. Some hiring executives prefer a short, expensive transaction and want recruiters to go away until the next need arises. Others see pipelining as an opportunity to invest in an talent-building source for their evolving business. Spacebar to advance

5 How Do We Do It For Less? We Were There Executive recruiters rely heavily on internal researchers and associates to generate candidates for them. We were those individuals. In fact, all of our team members have over ten years of experience at prominent senior executive search firms. Executive recruiters rely heavily on internal researchers and associates to generate candidates for them. We were those individuals. In fact, all of our team members have over ten years of experience at prominent senior executive search firms. We Hook the Fish - Clients Reel Them In We provide about 90% of what recruiters provide. We do not travel to meet and perform in- person interviews with prospective candidates. Instead we perform extensive telephone interviews with prospective candidates, sources and references. We require our clients to get more involved in the latter stages of the process, including in-person interviews where appropriate, selling the opportunity, and negotiating the final terms. We provide about 90% of what recruiters provide. We do not travel to meet and perform in- person interviews with prospective candidates. Instead we perform extensive telephone interviews with prospective candidates, sources and references. We require our clients to get more involved in the latter stages of the process, including in-person interviews where appropriate, selling the opportunity, and negotiating the final terms. High Profit vs. Stability Frankly, executive search is a highly profitable business, with most recruiters profiting over 60% on each search project. We exchange higher profits for a longer-term relationship with success for our teams and for our clients. Frankly, executive search is a highly profitable business, with most recruiters profiting over 60% on each search project. We exchange higher profits for a longer-term relationship with success for our teams and for our clients. Few Off-limits Issues With longer-term relationships we can keep our client portfolio small, avoiding the off-limits issues that large search firms face. Transactional search results in a large client base, each of which is off-limits to the recruiters. How can they deliver the very best talent in such a restricted talent market? With longer-term relationships we can keep our client portfolio small, avoiding the off-limits issues that large search firms face. Transactional search results in a large client base, each of which is off-limits to the recruiters. How can they deliver the very best talent in such a restricted talent market? Spacebar to advance

6 Delivery Vehicle: A secure, proprietary database is included, and is accessible from any location using a web browser. Incumbent Internal Successors External Introduced External Candidates External Prospects External Sources ABC Company Customizable to match your needs, including succession Clients own all data Stores and retrieves documents Links to valuable web resources Accessible via the web Solid, stable and very secure Embedded system for auto notification and delivery Sophisticated reports SAMPLE Spacebar to advance

7 Profiles & Reports: Users can download profiles and reports directly from the database. SAMPLE Spacebar to advance

8 Service Retainer Our base retainer structure requires a $15,000/mo. fee for the first two months, after which the monthly retainer is reduced to $10,000/mo. At this rate, clients have a three-member team managing up to three active projects at any given time. The team can be redirected at the clients discretion. Success Fee In the event an individual presented by Prospect City is hired or contracted by your company, we require a $7,500 success fee due upon acceptance. Technology Base technology is included at no additional charge. In the event the client suspends all of the Prospect City activity, the client may continue to lease the database for a fee of $1,250/mo. (unlimited users). Any additional database customization requested by the client will be performed at a rate of $150/hr. (most customization is free) Reimbursable Expenses No reimburseable expenses will be incurred without permission from the client in advance. Suspension/Cancellation In the event of complete suspension billing will cease immediately. Any outstanding invoices are expected to be paid. In addition, any active candidates are subject to a success fee for a period of 180 days. Active candidates are defined as those individuals assessed and delivered by Prospect City for the purpose of hiring. Any re-activation will NOT require any surcharges for the startup period or technology. Pricing: Prices are based on time and size of team and no long-term contracts are required. Clients can expand, reduce or suspend activity at any time with no penalties. Spacebar to advance

9 Relevant Projects $8B Manufacturer Duration: 12 months Project: President Results: President + Young, industry-leading six sigma expert hired to build formal function + Formal cross-company partnership (JV) to develop best-practices in chemical mfg. across both Cos. Cost: $153,000 (total savings over traditional recruitment=$180,000 Leading Private Equity Firm Duration: 24 months Project: Portfolio Succession Results: CEO, COO, CFO + Top HC CFOs in medical device mfg. led to acquisition and ongoing competitive advantage. + Managing Director for European Office. + Due Diligence for CEO, $19B Co. Cost: $285,000 (total savings over transactional recruiter=$330,000 $30M Global Professional Services Firm Duration: 30 months Project: Consultants Results: 22 Hires + Competitive intelligence + Significant improvement in hiring process + Adjusted compensation structure Cost: $400,000 (total savings over traditional recruitment=$1,150,000 $500M Technology Company Duration: 18 months Project: Talent Upgrade Results: 6 Hires + New role created for industry star + Successor to CIO + Technology company acquisition Cost: $230,000 (total savings over traditional recruitment=$370,000 Spacebar to advance

10 Team Robert Stein has over 27 years in senior level executive search. His employment experience includes Russell Reynolds Associates, Korn Ferry International and Crist Partners. Since he founded Prospect City in 2000, Bob has consulted for senior executive search firms, including Spencer Stuart, Heidrick & Struggles, DHR, Stanton Chase, Signium International and numerous boutiques on issues of process re-engineering, search execution, turnarounds, technology and operations. Bob has managed senior level executive search projects for numerous companies, including Wachovia, BofA, Zebra, Joy Global, Kraft, Gillette, Sun, and more. Nancy Brereton has over twenty years of experience managing human resources and executive search. Prior to joining Prospect City in 2006, Nancy spent 8 years with a top global executive search firm, leading senior level executive searches in industrial manufacturing, consumer products and not-for-profit organizations. Prior to executive search, Nancy served in leadership development for Manufacturers Hanover Corporation and later in talent management with GTE. Donna Skunda has more than ten years of experience in senior level executive search, serving with another leading global firm. She brings unique functional expertise in CFO, GM, CEO and CIO across all industries. Prior to her executive search career, Donna spent 10 years leading recruitment and staffing with a global manufacturer. In addition to the selected team members listed here, our firm has more internal resources and close, trusted relationships with numerous senior level executive recruiters, management consultants and a global network of over 1,000 recruiting researchers covering every industry, function and geographic region. These resources allow us to be flexible and responsive to our clients needs, regardless of complexity and scale. Spacebar to advance

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