Presentation on theme: "Prepared by: Tim Henn, Atlanta May 17, 2013"— Presentation transcript:
1 Prepared by: Tim Henn, Atlanta May 17, 2013 Georgia State University and Spencer Stuart: Sales Executive RoundTable MeetingPrepared by: Tim Henn, AtlantaMay 17, 20131
2 Table of Contents Introduction Overview of Spencer Stuart InternationalWhy is Spencer Stuart Any Different than Other Global Competitors?Sales Officer PracticeWhat’s Hot? - Key Trends and Skills Set Needs in Sales LeadershipCompensation Observation and TrendsTips on Executive Recruiting22
3 Timothy J. Henn Atlanta office Tim Henn is a member of Spencer Stuart’s Technology, Communications & Media Practice and leads the firm’s sales officer business in North America. He also is a member of the Private Equity and Information Officer practices, and a core contributor to the firm’s Cloud Computing initiatives. Bringing more than a decade of executive search experience to his work, Tim conducts assignments for clients across North America, Europe and Asia. He concentrates on chief executive officer, general manager and other senior-level positions for technology and communications clients. Tim’s technology clients include communications service providers, wireless and wireline networking equipment and software companies, mobile device makers, and providers of cloud computing services, datacenter services, and optical systems and components — from early-stage venture-funded startups to the largest multinational corporations.In-depth technology expertiseBefore joining Spencer Stuart, Tim was with a global retained executive search firm for more than seven years as a senior member of its technology practice.He also has 14 years of technology industry experience in strategy development, product line marketing and sales. Tim worked for Motorola for six years, where he led strategy efforts for the company’s communications equipment businesses. In addition, Tim contributed to Motorola’s most significant acquisition, General Instrument, and to the strategic assessment of Motorola’s broadband wireline, wireless and satellite investments.Tim spent seven years in Silicon Valley working in senior marketing and product management roles for early-stage companies in data networking, communications software and semiconductors.Tim is a graduate of Cornell University with a degree in electrical engineering and also holds an M.B.A. from Harvard Business School.Contact InformationAtlanta officedd3
5 Our Firm Who we are Where we are What we do Founded in 1956 and still privately held, Spencer Stuart helped establish the senior-level executive recruiting industryMore than 300 consultants with a unique blend of professional search experience and specialized industry and functional expertiseExperienced and highly knowledgeable associates, researchers and executive assistants round out client service teams and contribute to our knowledge of relevant candidate poolsWhere we areIn 54 offices in 29 countries around the worldWith select clients, from major multinationals to emerging companies and nonprofit organizations, helping to address their senior executive leadership requirementsIn the boardrooms of companies around the world, from the largest multinationals to private equity-backed businessesWhat we doPartner with companies to find CEOs, presidents/COOs and their senior management teams, conducting more than 4,000 assignments each yearIn addition to executive search, we:Recruit exceptional directors and provide counsel on governance issuesAssist boards in CEO succession planningConduct management assessments of senior executives5
6 Our ServicesWe provide an integrated suite of leadership services, including:Executive Search:Executive recruitment focused on CEOs, COOs and other top-level functional leadersBoard Services:Boardroom recruitment and governance counselCEO Succession Services:Consultative services for boards’ CEO succession planning needsExecutive Assessment Services:A proven, proprietary approach to helping clients more accurately evaluate the strengths of their senior leadership teams66
7 Our Practices Functional Practices Industry Practices Through our practices, we offer a deep understanding of the challenges our clients face in each industry and sector we serve, and of the competencies required for success in a variety of functional roles. Industry and functional specialists work in partnership and across borders to provide clients with the most comprehensive access to candidate pools.Industry PracticesClean TechnologyConsumer Goods & ServicesEducation, Nonprofit & Public PolicyFinancial ServicesIndustrialLife SciencesPrivate EquityProfessional ServicesTechnology, Communications & MediaFunctional PracticesBoard ServicesChief Executive OfficerDiversityFinancial OfficerHuman ResourcesInformation OfficerLegal SearchMarketing OfficerSales OfficerSupply Chain7
8 Sample of Spencer Stuart CEO Searches Spencer Stuart conducts more than 300 CEO Search and Succession assignments annually and has the leading market share among S&P 500 companies.Succession/Search with Internal CandidatesSherilyn McCoy, CEO2012Hubert Joly, CEO2012Jose Almeida, CEO2011Brian Kelley, CEO2012Bill Brown, CEO2011Brian Krzanich, CEO2013Ray Lane, Chairman, 2010Leo Apotheker, CEO, 2010Meg Whitman, CEO, 2011*Chip Bergh, CEO2011Bryan Stockton, CEO2012Mike Polk, CEO2011Mark Thompson, CEO2012Dave Calhoun, CEO2006Marc Lautenbach, CEO2012Frits Van Paasschen, CEO2007John Lederer, CEO2010Marissa Mayer, CEO2012
9 Why is Spencer Stuart Any Different than Other Global Competitors? Focus at the Top of the House: Leading Board of Directors practice and CEO Succession Practice. CXO and VP level work in the U.S. with flexibility to do director-level work outside the U.S.Speed: Spencer Stuart understands the urgency of recruiting new executives quickly. Our process is geared toward both speed and quality. Heavy company investment in knowledge managers, proactive ID, local and central research, etc.Senior Recruiters Lead the Effort from Start to Finish: Spencer Stuart recruiters have, on average, 10+ years of corporate experience and 10+ years of executive search experience. Our team remains engaged throughout the search to lead the effort.Focus on Culture Fit: Given our extensive knowledge of the candidate pool, our energies will be focuses not only on identification of an experienced executive but also on the “culture” and “business” fit of an executive who will excel in the client setting:Highest integrity with reputation for excellent quality workFocused on accountability and business results and accustomed to aggressive growth goalsA collaborator who can play well in the “sandbox” with the existing senior teamHigh Accountability on Recruiting Consultant: Client surveys at end of engagement are tied to bonus payments and are circulated to board members and senior management. This motivates us to meet and exceed your needs.
10 Potential Timeline for Completion Key MilestonesEnvironmental Interviews with senior management StartFinalize the position specification hoursConfirm target list of companies hoursMeeting to review long list of candidate profiles – 3 weeksIntroduction of first 2-3 qualified candidates weeksFirst slate of candidate interviews weeksTiming for key milestones is subject to travel schedule and availability of client team members and candidates.
12 Chief Sales Officer Practice at Spencer Stuart With specialized sector and functional expertise, consultants in Spencer Stuart’s Sales Practice bring to each search an in-depth understanding of talent needs and marketplace realities.Business & Professional ServicesTechnology, Communications, MediaConsumer Goods & ServicesFinancial ServicesLife SciencesIndustrialSALES FUNCTIONSWe are a global, dedicated team of 25 consultants, many with a sales background.We have conducted more than 1,000 sales searches over the past three years for clients that range from large multinational companies to private equity firms and their portfolio companies to emerging companies and nonprofit organizations.For each assignment, we assemble a “best team” combining industry knowledge with functional and geographic expertise. We also conduct ongoing calls to review market intelligence and candidate pool development.Vice President SalesMajor Account SalesChannel ManagementSales OperationsLicensing SalesChief Revenue OfficerVice President Sales & MarketingBusiness DevelopmentGovernment SalesCANDIDATE POOL EXPERTISE
13 Spencer Stuart Representative Sales Searches ConsumerFinancial ServicesIndustrialLife SciencesPrivate EquityTCM
14 Defining the Sales Officer Role The sales officer function demands a combination of experiences and competencies that vary by organizationSample ExperiencesSample CompetenciesRevenue GrowthMajor Account ManagementExecution for ResultsSolutions OrientationSales Processes and ToolsBusiness Services ExpertiseClientVP Global SalesCross-Functional CollaborationStrategic Sales SkillsRecruitment and DevelopmentNational Account ManagementCommunication, Influence & Impact at CFO levelBuilding TeamsUltimately, needed experiences and competencies will be determined by requirements of the specific situation.
15 Spencer Stuart Sales Officer Practice - Candidate Qualification Diagnostic Multilayer Assessment of Potential Sales Prospects in Conjunction with Candidate SpecificationPerformance DataRevenue QuotaRevenue GrowthRevenue by regionRevenue by product lineMargin growthCustomer segmentsChannel mixHardware, software, services revenue split.etc.EnvironmentStrategic ImpactReasons for revenue growth related toNew ProductsNew regional marketsCompetitive dislocationMaturity level of products and marketsDegree of maturity of operational processesGrowth in revenue compared to market share growthTurnaround? High growth? Mature with slow growth?Big company with matrix management, small company PE funded, etc.Sales DNA & Culture FitDevelopment of new sales strategy to match new/existing corporate strategyWhat decisions were made to impact sales effectiveness related to:Customer segmentationAccount coverageProcesses and metricsChannel model dynamicsIncentive compensation changesPerformance management to raise individual and team effectivenessAbility to balance sales growth and profit maximizationTalent management skills to attract and retain top talentLine experience and operating orientationEvaluation of key behavioral leadership competencies which map to:Best in class sales leader DNASpecific client competenciesLeadership reputation internally and cross-functionallyAbility to create a winning culturePhilosophy on utilization of A, B and C talent across the organization1515
17 The Science of Sales Has Become More Sophisticated Recruitment & DevelopmentSales Strategy & OrganizationRotation & Succession PlanningPerformance Management & Compensation PlansSales Process & MethodologySales OperationsAccount ManagementRewards & CelebrationTechnology (CRM, Pricing, Quoting)
18 Sales Operations & Technologies LEADERSHIP IMPLICATIONS Emerging Sales Officer Trends… and their leadership implicationsFour Channel ModelSales Operations & TechnologiesField SalesIndirect SalesAccountabilityConsistencyTRENDSGlobal MethodologyInside SaleseCommerceMaximize Selling TimeLEADERSHIP IMPLICATIONSLack of effective customer segmentation and mapping of sales channelLack of effective collaboration to drive activity to the right internal organizationInvest in world class sales operations not sales supportAdoption non-negotiable at all levelsConsistent cadence to increase chance of success
19 T R E N D S LEADERSHIP IMPLICATIONS Emerging Sales Officer Trends… and their leadership implicationsDated Go-To-Market StructuresLocalization of Global MarketsShorter Product Profit CycleVicious Price CompetitionExploding Emerging MarketsRegional CustomizationTRENDSLocal Channel PreferencesValue Chain De-layeringSolutions Selling RequirementsExpat ExpirationsLEADERSHIP IMPLICATIONSCost to serve specific customer segments way too expensiveOutdated structure provides for coverage modelLack of clarity around selling skills to serve each customer segment3 region structures no longer adequateLocal language leadership requiredCultural complexity with one region (i.e. Asia Pac)
20 Scarcity of Strategic Skill Sets LEADERSHIP IMPLICATIONS Emerging Sales Officer Trends… and their leadership implicationsScarcity of Strategic Skill SetsFewer Sales AcademiesShort term pressures on CEOTRENDSChurn of top sales leadersCrushing 30/60/90 pipeline requirementsLEADERSHIP IMPLICATIONSDevelop skill sets in-house or recruit externallyCEO’s and Vice Presidents of Sales need to agree on time required to develop sales strategyRecruit rigorously to find scarce skills.
21 Compensation Observations My data is a colored by B2B TCM, Industrial, Business Services:$100Mn revenue- $200K-$225K base, 50% bonus plus equity – North America$100Mn revenue - $300-$350K base, 50% bonus plus equity – Global$500Mn revenue $300K-$350K base and $50% bonus plus equity - Global$6Bn revenue - $450K base, 100% bonus, $400-$1M per year in annual equitySign-on bonuses much less frequent since You must be leaving unvested equity on the table.Shift from options to RSUs and PSUs has been dramaticOverachieve plans on annual bonus are negotiable. Be prepared to discussInitial equity grants most common. Clients encouraged to be generous to attract best talent. Candidates need to be around in 3-4 years to collect!Keep the recruiter in the middle on negotiations – ability to speak openly, get a reality check, and to enlist the recruiter to negotiate on your behalf without burning bridges.
22 Tips on working with Executive Recruiters Develop one or two key contacts per firm in your industry vertical (i.e. consumer, industrial, technology) or function (i.e. sales officer practice at SSI). No need to meet every partner at the firm – we all talk and share candidate ideas.We are retained by clients to pursue candidates that meet our mutually-defined specifications. We cannot conduct a search on your behalf, but can be helpful in recommending you to our colleagues around the world. Please let us know your willingness to move to Asia or Europe.Develop your career as a “pure play” stock – excellence in a given function or industry segment is always well rewarded.Add data to the resume (dates, revenue before and after, team size, graduation dates).Be a good source and help with suggestions for others; this is much appreciated and expands your mindshare across the firm. We will not reveal your name as the source if requested.SSI conducts high level and high impact searches for small, medium and large companies but quantity per consultant per year is If you do not hear from us, it does not mean we do not think you are terrific. Each search is a very unique combination of required skills, experiences, channels to market, products, etc.During interviews, there are only two real ways to crash and burn – huge ego and providing long-winded answers to short, concise questions.Self-awareness and self-assessment are extraordinarily well received and put you in another league of executive talent. Expertise, candor and humility are a great combination.“Check-ins” every 4-6 months are fine. Any more than that may produce a negative impact.