Presentation on theme: "Executive Search and Career Management Wharton School Executive MBA Presentation February, 2014 Jeff Constable Spencer Stuart Managing Partner, Philadelphia."— Presentation transcript:
Executive Search and Career Management Wharton School Executive MBA Presentation February, 2014 Jeff Constable Spencer Stuart Managing Partner, Philadelphia Office CFO/Private Equity Practices
Corporate Service Provider Sector Service RequiredExample Firms Accounting/auditKPMG, PWC LegalDavis Polk, Sullivan & Cromwell BankingWells Fargo, Citigroup Capital markets/advisoryGoldman Sachs Private equityBlackstone, KKR Venture capitalSequoia, Kleiner Perkins Strategy consultingMcKinsey, Bain Operational/IT consultingAccenture Real estateCBRE, Staubach Outplacement servicesRight Management, DBM Talent/leadershipSpencer Stuart
Why Companies Use Search Firms Traditional Reasons >Broader, but targeted candidate pool. >Need to actively recruit/pull someone out of a position at another company versus gather resumes from a posting. >Recruiting function outsourcing/cycle time improvement. >Objectivity around decision-making (i.e., “fairness opinion”). >Gain outside perspective on the company; access to market intelligence. Emerging Reasons >Advice and counsel around leadership decisions >Succession advice >Third party assessment of internal and external executives
“Bulge Bracket” Search Firms Spencer Stuart Korn/Ferry International (NYSE: KFY) Heidrick & Struggles (Nasdaq: HSII) Russell Reynolds Egon Zehnder International (CT Partners)
Types of Search Firms Retained Search Firms >Work on behalf of the client company. >More common for senior management and executive positions. >Fee not based on outcome. Contingency Search Firms >Company or candidate can be the client. >More heavily used at middle management and lower levels. >Fee is success-based.
Major Activities & Key Deliverables >Meet to determine skills, knowledge and abilities required of the position. >Analyze challenges unique to organization >Prepare customized position and candidate specification. >Determine the client priorities that will shape the search process. >Examine organizations that are relevant to the needs of the position. >Develop long list of organizations to serve as likely sources. >Present long list of candidates. >Frequent updates on progress. >Speak to third- party sources to identify and qualify candidate prospects. >Present short list of candidates. >Conduct competency- based interviews against ideal experiences. >Conduct preliminary reference checks. >Based on in- depth written analysis and appraisal against the specification, present most qualified candidates. >Further validate candidates against extensive third- party sources. >Assist in negotiations. >Accepted job offer. >Regularly communicate with client and placement during transition. >Conduct third-party client satisfaction survey to improve customer service and refine approach. Retained Search Process Assess needs and develop tailored search blueprint Identify target companies and potential candidates Attract and evaluate prospects Present candidates in client interviews Complete the search and post- search follow-up
Boutique Search Firms >Flexibility of fee structure (contingency, retainer, “container”). >Low barriers to entry in search sector, so numerous boutiques in existence with more being formed every day. >Expertise is specific function, industry or geography. >Often have deep relationships with a few client companies. >Functional or industry specialists not necessarily geographically located near clients. >Search process is often candidate-centric, and business is often won by opportunistically introducing good candidates.
Tips for Approaching Search Firms (20% of time) >Know your “sweet spot,” have a good story and be transparent. >Focus on recruiters whose sweet spots (by industry, function and/or geography) align with yours. >Do not expect the What Color Is My Parachute? conversation. >Email is a good tool for introduction/first contact. >Be a good source when recruiters call. >Accept “courtesy interviews” as they present themselves. >Gain introductions from mentors/former bosses.
Tips for Networking (80% of time) >Make it a habit and do it in ways that are a good fit to your personality and schedule. >Know yourself and your priorities and be honest about them (especially to yourself). >When an opportunity feels perfect, pursue it and do not make title or compensation the central issue. >Behave like a sales person in terms of managing the activity of a pipeline, dealing with rejection, negotiating “win-win” scenarios. >Gain introductions from those you know and trust.
Tips for Building Relationships (100% of time) >You are interviewing more often than you think you are, and first impressions really do matter. >Be interested, transparent and honest. >Favor tailored over mass communications. >Remember that life is long. >Always think, “What’s in it for them?” >Update those who have helped you on where you land, and be willing to return a favor.
Knowing Your Priorities Have an understanding at all times (since it will change) of how the following factors (plus or minus some that matter most to you) rank in descending order of priority to you: >Location >“Right” type of people/culture >Product, service or cause of the company/organization >Level within the hierarchy >“Fit” with long term plans/goals
Jeff Constable is a member of the Financial Officer, Private Equity and Financial Services practices. He assists clients primarily in their search for chief financial officers and other senior financial and corporate development talent. Jeff has led client engagements for a diverse array of companies across a number of industries throughout the United States as well as the United Kingdom. A consultant with Spencer Stuart since 2003, he also leads the firm’s Philadelphia office. Extensive financial expertise >Jeff has deep experience in the areas of insurance, consumer financial services, banking, for-profit education, industrial and business-to- business services. He is also active in the broader management of some of the firm’s key private equity relationships, the reach of which often extend beyond core executive search services. >Before entering the world of executive search in 2001, Jeff worked at Corporate Executive Board, where he was instrumental in the formation and early growth of the CFO and corporate strategy practices. >Previously, Jeff was a banker with NationsBank (now Bank of America) and an award-winning high school mathematics teacher at The Haverford School. A native of the Philadelphia region, Jeff is the vice chair of the board of the Bryn Mawr Rehab Hospital Foundation and a past board member of the Economy League of Greater Philadelphia. Jeff holds a degree in mathematics from Duke University and an M.B.A. with distinction from the University of Michigan. email@example.com | dd +1 215.814.1629 firstname.lastname@example.org
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