The War for Talent: August 28TH, 2008 Ben Anderson Partner CTPartners Leading companies win by hiring, developing and keeping the best people.

Ben Anderson - Context Live in Menlo Park – Silicon Valley Left NZ for the UK – 1988 Robert Walters – IPO 1996 TAPS – sold to Step Stone President Intellimark - $250M Renoir Partners – CTPartners Silicon Valley Leadership recruitment & coaching Beachhead Advisory Board Member

Global Talent Market People

Today's Conversation Mindset – What do you want ? The Experience working with NZ What is Possible How - a discussion

The Right People in Right Roles Talent is a winning ingredient Hiring no different to making a capital investment You need to get people selection right High risk Tight talent market Tough and emotional Cultural - It’s different in different markets

Overseas

Stop. What Do You Want

What Can we Learn

International to USA

Messages & Learning's “Hire great people - “good enough” won’t cut it” “get involved with your hiring” “Great people are five times as valuable as good people - especially applies to engineers” “Its impossible to tell from a resume if someone is great” “Great people are worth it. “Markets are winner takes-all - increasingly true in a globalized world “you need the very best; “good enough” will no longer cut it when against intense competition” “Hire the best people they build great and lasting companies.” “Great people only want to work with other great people” “Great people need to feed off other great people”

Messages & Learning's Hire an advisor or board member first Move to the market – keeper of the culture Reference and more references Values and cultural fit important Network and build a culture of talent pipelining

Andy Grove “Critical to develop a top-notch executive team” “the output of an executive is the output of her organization. Therefore, the primary task of an executive is to maximize the output of her/his organization”

So Who is On Your Bus?

Company X- A Market Leader comes to US A Vicious Cycle Unwilling to rationalize the High salaries in US- hire less expensive Hire less expensive, often less skilled Team made up of “B” and “C” players Underperform compared To their “A” team competition Home country executives lose confidence Less resource provided The company underperforms CEO sucked In to try and fix- lack of local knowledge Clean sweep of US

New Zealand Experience Not always prepared or clear Remote leadership – Distributed organizations – US experienced at this Unknown in a “Brand Conscious” market place Location – Danger “Sticker shock” Cost of hiring and the Equity Blind Spot Follow through

It’s about Great Teams

Building the “A” Team in America – its Possible Aspiration and serious commitment – move there New Zealanders' are good – self belief You do not need star players in all positions Identify the critical roles Sales team that is competitive Connected rainmaker Give the authority Due Diligence is critical Local Board Develop your people

The Rules - Similar – But Different

So, What Can We Do to Hire the Right People? America no longer has a monopoly on IP Accept it will take longer than desired Spend time in market and deploy a process Pay for the best – Include ownership (real equity – Vest over time) A Players hire A players. B players hire C players Move a director/owner for a period of time Advisors and Board Members Pull the trigger

We Need a Process

A Process  Agree challenges facing the company (and executive) – What needs to get done  Be clear that there is need to hire executive for a function – don’t hire too early  What is the role  Acid Test = What behaviors and experience must be present to achieve number 1  Target people where they will have the experience and behavior  Interview and assess against the challenges facing the company and the Acid Test  Reference and reference some more  Make a hiring decision Hire the best person for the next twelve months, not the next three years

Candidate Value Proposition

Talent Pipeline

How to Build a Talent Pipeline Level dependent Online recruitment services Social Networks - LinkedIn Referrals – Kea – NZTE Beachhead Direct – You target and approach – Don’t underrate who you can get to Recruitment firms – Types – What to watch for

Firing - Coaching and Firing 6 week gut check (“Warren Hellman) Coaching – from the beginning Fire crisply Avoid long transition periods -- tempting, but counterproductive Make a clean break, put a new person in charge -- even if only on an acting basis -- and get moving Don’t feel guilty

Managing Your US Team Lead your executives vs. manage Give your executives the latitude to run their organizations Don't micromanage Hold accountable – metrics Be direct Communicate

Summary: Building the “A” Team in America Deepening globalization Borderless business environment You do not need star players in all positions Identify the critical roles Sales team that is competitive Connected rainmaker Give the authority Due Diligence is critical Local Board Develop your people

Discussion Q&A