Monday, June 8, 2009

Does size matter?

No, this is not a reference to the many augmentation products available and apparently exclusively marketed by spam emails.

I got a call from a friend a few weeks ago. He was calling to apologize for a search I did not even know existed. He went on to explain that his current organization, was looking to hire another Vice President in charge of nuts and bolts. He had lobbied on my behalf and suggested that the Board seriously consider using Hawes Partners. The Board felt the “bigger search firm would do a bigger job.” They chose to sole source to my former firm. It is a large firm with 14 partners and consultants working in various industry sectors.

I have conflicting thoughts regarding this. On one hand I understand the “no one ever got fired for hiring IBM” mentality. On the other hand, it is disappointing that we have not progressed past that way of thinking.

Having been inside the larger organization, I know better. The question is how do I articulate the benefits of a smaller organization without sounding overly critical of my former firm.

I will try to address some of the checkmarks larger firms use to differentiate themselves.

Is it …

Quality?

Few would argue that you get better quality customer service or results than Hawes Partners can provide. In a larger firm, the quality of your search depends on who you get within that firm. The experience can vary greatly. I know my former firm claims that four out of five clients rate them better than other firms they have used. I can only assume that Hawes Partners represents the one-in-five that was better than them.

Cost?

In fact Global firms have extensive overhead and marketing machines to feed. The Boutique firms traditionally are very competitively priced, and often less expensive.

Larger Networks?

Networking has developed significantly over the years. Everyone can claim massive networks. Having a database of 20 000 is not unique, what is unique is having the confidence and ability to speak credibly with target candidates. A personal approach is more effective.

Guarantees and Off-limits?

Closely aligned to quality, some would say a firm is only as good as their guarantee. I would argue that a firm is only as good as their willingness to honour their guarantee and the integrity they show in respecting their off-limits policy.

In larger firms with many offices, off-limits policies are consistently being broken for the sake of business development. A partner in Vancouver recruits a candidate the same firm placed only 2 years previous in Toronto. Or more likely, they recruit one of your key personnel away, and then they offer to conduct a search to replace that person. With so many partners and stakeholders, the integrity of the off-limits and other promises is often a casualty of the need to close a search and drive business.

Smaller boutique firms have a smaller client base and thus a smaller group who are off-limits. This allows a boutique firm to freely recruit the best candidates without compromising ethics.

So if it is not cost, quality, access to larger networks, nor a better guarantee or a preferable off-limits policy, it must be experience.

Unfortunately I must de-bunk that myth as well.

Experience?

Global firms list the experience they have in industry sectors, and yes by volume they have the number. However, those searches listed are more often than not conducted by individuals in other offices. Some, by individuals no longer with the firm. You must understand that these offices are actually competitive with one another and operate with independent P&L from one another. So the list of assignments in specific functional areas or industry sectors is often a façade of thinly strung together collective experience which collapses under scrutiny.


When I left to start Hawes Partners, the very first decision I made was not being a slave to massive overhead. Nor be motivated by conducting every search on the planet. I resolved to deliver high quality, personal service to those companies who valued the benefits of working with a firm focused on personal service rather than volume.

So far business has been very good, however it does sting when I learn that I have lost out on opportunities. Like the chef who cringes at the sight of the McDonald’s line-ups. I too lament some folks’ decisions. But the reality is that people continue to eat at McDonalds. They know it is unhealthy and will likely cause light gastro-intestinal discomfort, but it is the easy choice. After all, “You deserve a break today!”

Who uses a Headhunter?

WHO USES A HEADHUNTER?

I go through this thought process every once in a while… mostly when I am on a marketing initiative. I ask myself “Who uses a headhunter?” and more importantly “Why?” Finally, “Is there a way to categorize them?” I can’t say this assessment is perfect, but I think I have captured what I see as the three main categories of client. You can argue that there are subcategories of each and that there is some crossover, but for the sake of argument, here they are.

Be forewarned some may be shocked at my comments.

1. Cover Your Butt… It may sound judgmental, and have negative connotations, but I have never been one to mince words. These are clients who hire a third party to manage the process of hiring an individual and not because they cannot do it themselves. They certainly should and most often do have the expertise in-house to make competent hiring decisions, but they have a need for transparency in the hiring process. They are under the specter of public scrutiny. These searches occur mostly in municipal, provincial and federal government sectors at all levels. Candidates are usually plentiful and the search tends to become more of a selection process. The value a search firm brings in this area is in the completeness or rigor of the process, and they provide guidance to the organization in evaluating candidates.

There are a few issues related to “Cover Your Butt” clients. First, these clients often lack the willingness to make a meaningful decision for fear of internal political liability. Related but an additional issue none-the-less, these assignments tend to drag on beyond normal search assignments both because of the above as well as client commitment to hiring is secondary or perhaps even a much lower priority in their day-to-day work-life. Organizations who fall into this category tend to have sophisticated bureaucracy. This complicates the hiring process even after a final decision has been made. Theses delay can sometimes leave a candidate disillusioned and frustrated with the process. This poses a risk of candidate apathy and eventual disinterest.

To date, for the above reasons, I have tried to avoid these types of searches like the plague. Despite the lucrative market opportunity, and potential for repeat business, breaking into this market is very difficult. The same reasoning for using a third party firm, often leads these clients to choose the sanitized, cookie cutter solution model. The most sanitary proposal wins. The “hospital food” of the search business.

Our firm has recently begun work with a number of organizations related to government. Avoiding it earlier was an error on my part. It is a steep learning curve for us. However, we have found that once people discover the “flavour” we offer, they repeatedly return for more, and the satisfaction levels both personal and client are very high.

I will speak to developments in this area in the future, as we attempt to add spice to this market.


2. The Last Resort … These are clients who initially spend thousands of dollars on advertising in newspapers, on-line and waste countless hours sifting through unqualified resumes. They may have enlisted the help of contingency firms who have slung loads of low-hanging fruit at them. Feeling overwhelmed and having exhausted all avenues without finding the right person. Reluctantly they enlist the services of a Retained Search Professional firm to complete the assignment. The value of the headhunter in this situation is that often we are able to help the client understand their OWN needs better. Working with them, we can help to define the characteristics of the candidate beyond just a narrow job description, and there IS so much more to specifying the ideal exec than a mere job spec. We identify targets, research and proactively headhunt the best possible candidates using a professional and proven approach. We then screen and evaluate those candidates so that the client only meets the best of the best, leaving the client to spend their time on their core business.


3. The Valued Partnership … Often, this client begins life in one of the previous two categories. In this situation, the client recognizes that their time is valuable and they need to concentrate on doing what they do best. They understand the opportunity cost of conducting a search on their own is often greater than the fees associated with hiring a professional firm. These people are experienced and understand the process of a search. They articulate their organization’s needs very clearly, have realistic and mature expectations, and meet their obligations within the process. This latter client is our ultimate goal. Developing an ongoing relationship with people and organizations is the core of a sustainable business.

While all categories of clients have their specific challenges, I must say, my competitive personality gains a significant amount of satisfaction from helping a company find the “needle in the haystack” and succeeding where others have tried and failed. “The Last Resort” client usually becomes a trusting and trusted partner based on our success.

As I mentioned previously, these are broad categories and your circumstances may comprise more than one of these categories. As an example; you may have a need for transparency, quality candidates are not plentiful and you truly value the service and results professional headhunting brings to your project.

Whatever your circumstances, if you understand which category you fall into and what your motivation to use an executive search firm is, this will help you better articulate your needs to your new partner and lead to that great relationship where both are valued contributors.

Thursday, December 13, 2007

What do you do? I am what I am.

The first question most individuals ask after meeting or being introduced to someone is “What do you do?” The hope is that it will be something of interest and a conversation can develop from there. Occasionally you meet those who are not employed, or under-employed, they will always say, “I work for company x… but I am a engineer, lawyer, radiologist, Walnut cracker…”

Funny, but we equate what we do with who we are? This is not a new revelation and frankly many family names are derived from the professions of our ancestors. Take the Smiths, Coopers and the Butchers. I am not sure what the Arsenault family did... however you get the point.

People still have a great many preconceived notions about professions and make judgments based on those. This may explain why we spend and inordinate amount of time developing Job Titles and VP monikers.

In my business, it seems mt colleagues are always searching for a new way to look more sophisticated. Executive Search Consultant was a good moniker, the latest is accurate ... and I love this one... "Talent Acquisition Specialist". Let's call a spade a spade. We are Headhunters.

I am amused to watch the expressions of individuals whom I meet for the first time when I tell them what I do. When asked, I describe myself as a Headhunter. Some folks nod politely, and head for the crab and almond dip with a sudden hunger. Others seize the moment, and as if I were a skin doctor offering to survey the boil on their backside, ask if I can help them get a better job … right away. Most people fall somewhere in the uncomfortable “ Oh” category. Like the psychiatrist who people fear is always analyzing them, the headhunter is thought to be always on the prowl, cordial and engaging in a social setting until he pounces on some unsuspecting executive at the shrimp tree or salsa bowl. Once he has identified his prey, the headhunter lures the innocent away and eventually tears him or her from their current role, and into a new one. This is simply not true, we rarely eat shrimp.

I am proud of the title HEADHUNTER. It very accurately describes what I do best, which is to actively track and recruit the best talent for my clients. Original research, networks and a strong work ethic are my tools. My success in recruiting talent translates directly into better performance and success for my client's company.

You may not think of headhunting as an honorable profession. It is. We provide opportunity for career advancement to individuals. We are salespeople of our client’s corporate culture, we articulate their value proposition with enthusiasm and ensure the right fit for both candidate and client.

Certainly there are many negative impressions people have about Headhunters. Most are created by agencies that sometimes identify themselves using sophisticated names. These organizations inundate companies with resumes of the mediocre and the job seeking low-hanging fruit. Do not be fooled. These are not headhunters, they are not even farmers, they are at best a clearinghouse for factory-seconds and cheap imitations. Don’t get me wrong, they serve a very valuable role in filling positions with bodies, but if you want the genuine article … hire the genuine article.

Monday, November 12, 2007

Recruiting Executive Talent to Ottawa... or Anywhere for that Matter

Ottawa is a city that is struggling with its own success in the technology sector. It is without question, a city blessed with some of the most brilliant minds in research and development. Ottawa is stimulating, satisfying and a remarkable place to live and work. Any resident can, and most likely will, tell you that.

Over the past few years, much has been said about what Ottawa lacks… other than a Stanley Cup. Topping that list is an assessment that within the technology sector, Ottawa lacks depth in certain key senior management positions. The reasons for this are varied. They include the region’s strong history and culture as an R&D center, the lack of direct access to both consumer and capital markets and an absence of Corporate Head Offices and the resulting resident mentors required to develop talent.

Whatever the reasons, there are solutions. Shifting the culture, further developing entrepreneurs and fostering growth through industry organizations and resident companies are long-term strategies that will serve us well in the future. However, if you don’t have 5-10 years to wait, the most direct solution is to import the executive talent.

Few would argue that the key to a successful company is its people and particularly leaders. An adage that comes to mind is: “The speed of the leader sets the pace for the pack”. So, if you do not have the executive expertise in-house or in your city, you must import; your business success depends on it.

Unfortunately, Ottawa is not always considered a prime destination for relocation. Perceptions about the climate, culture, language barriers and a separation from the “key decision makers” add to this barrier. Clients often ask me how I will attract senior executive talent, particularly from the US, to a “B-list” location like Ottawa. The answer, and the most important point I would like to make, is that there are no B-list locations; every place is an A-list location to someone. That is not to say that there aren’t significant challenges involved in relocating candidates from, as an example, the Valley…Silicon Valley that is…to any city in Canada. There are. However, these challenges are not insurmountable. Let’s discuss the nature of some of these obstacles, and some ways we can overcome them.

What Makes People Relocate

Recruiting senior talent has always had its challenges. In today’s economy, the complexity and maturity of executive talent has created an environment where it is no longer just about career development and dollars. You must convince a seasoned executive to leave not only his or her current employer, but to leave the security of their home and support network to uproot, and begin a new life in your city. Society’s affluence has reduced our willingness to seek opportunity.

In case after case; executives will tell you that their reason for accepting a new position was not solely driven by monetary compensation or the opportunity to step up in their career. Certainly a number of VP’s and C-level executives have been wooed by the promise of a “buy a private island” exit opportunity, but most cite other factors. The message here is that when senior executives change positions and or cities, more often than not it is a quality of life move.

This is a very useful piece of information. In addition to the challenge, selling a new location as an excellent place to live can convince some individuals to relocate, even if the new opportunity offers a comparable (or occasionally even lower) salary than their current role. What’s more, improving someone’s quality of life is different for everyone. The secret is properly matching the right people to the right place.

Three Fundamental Truths:
Before I continue, I must acknowledge three very important points. First, some people will not relocate regardless of the how much money or how good an opportunity you throw at them. I will illustrate with a somewhat extreme example, however I think it drives the point home. I have a friend who took a role in another city several years ago. Tragically, during his time there, his 5 year-old-daughter passed away and is buried nearby. While he feels his career has progressed as far as it can in his current location, he has no interest in leaving his daughter’s resting place behind. More common is the divorced parent who is unwilling to move any distance away from his or her children, or one’s need to look after aging parents. Whatever the reason, we must accept that there are some folks who will not leave where they are.

Second, rational thought dictates that the fundamental reason for a person to accept a new position is the belief that this move will improve the person’s life in some way. The logical extension of this is that moving someone to a location that does not improve his or her quality of life is irrational. So rather than hoodwinking candidates into relocating to places they don’t want to, educate them and their families on the benefits of that location, find out what matters to them and connect the dots.

Finally, it cannot be stated strongly enough that you need to sell your company’s value-proposition. Just as you need to articulate your business plan, product strategy and vision to potential investors, you must do the same for potential employees. Far too many companies are not prepared to answer tough questions from prospective candidates. Remember you are asking this person to invest their time and energy; not to mention their family’s time and energy into your company. Put yourself in the prospective candidate’s shoes. Give them the assurances that you would demand. This is page one, Sales 101. Remarkably many companies fail miserably at doing this. Admittedly, it is a very difficult task. Most of us tend to wear blinders complimented by rose-tinted glasses when looking at our own companies or ourselves. Take an honest objective view of your opportunity.

Working from this basis, we can now approach our recruiting assignment with an honest and respectful approach.

Nothing to Fear

Many companies begin their search with a view that there is not a local candidate with the strength or depth to take the company to the next level. Often they are correct in their assumption, but at times, a search of the local market turns up a worthwhile candidate or two. If the local individual is overall the best candidate, then both you as a CEO or search committee and I as your headhunter have succeeded. Sadly more times then I’d like to admit, after bringing a slate of world-class candidates from outside the city to the table, companies ‘settle’ for a lesser local candidate. The decision to settle is made because of fear. Fear that the company will face the challenges of having to overcome the relocation issues, the least of which are immigration and cost of relocation. Ask yourself at the outset, do you want the best hire or the easiest? I will assume you want the best hire possible, but be honest. Securing the best candidate for your company is always a factor of your company’s compensation structure, value proposition, and financial health and your willingness to embrace these realities. Don’t be afraid to look in the mirror before you go out.

To be truly effective when recruiting someone to a new location, I believe you need to have a deep knowledge of and affinity for the location to which you are recruiting. Many companies make the mistake of hiring a firm based in the US or a brand-name firm located elsewhere to recruit to Ottawa, believing that these firms will have a better network than an Ottawa-based firm. Some may also suffer from the age-old “they’re local so they can’t be that good” philosophy. It may make sense if the position is to be based in a US city, however this wisdom is somewhat flawed in that a US firm generally knows very little about Ottawa, nor cares about the community in which the prospective candidate and his or her family will live. The information they provide is often second hand and skewed. If a candidate decides to accept a position based on misinformation, incomplete information or without a true appreciation of the cultural differences between Canadian and American management style, they or their family have a high probability of being unhappy in the new location. As a number of high profile “flameouts” will attest to, this translates directly into performance issues, and the candidate eventually quits or fails in their new job as a result.

Turning Drawbacks into Advantages:
Most “obstacles” in recruiting can be just as easily selling points for the right individual; every location is an ideal place to live and work for somebody. The idea is to match the right person to the right location.

The secret to making that match is knowledge!

• Know the location
• Know the candidate, their hobbies, dreams and goals
• Know about the candidate’s spouse, children, and friends

Working Spouses:
“Will there be work for my husband/wife” is one of the most frequently asked questions when I discuss relocating with candidates, and for good reason. Families may have financial commitments or goals that demand two incomes, or a spouse who has a genuine passion for his or her work and may be unwilling to let go of it easily. Not every location will offer an opportunity for both partners, especially if each works in a different industry. A spouse with a background in the financial sector, for example, may have trouble finding meaningful employment at the executive level in Ottawa.

Conversely, a centre could offer a major employment opportunity for a spouse. In Ottawa, a bilingual spouse or one with public policy or academic training may welcome a chance to move to the nation’s capital. The same could be said of an environmental engineer moving to Sudbury, a biotechnologist moving to Kingston, or a marine-biologist moving to Halifax. Having a good understanding of the industries and employment opportunities your center has to offer, other than the position you are recruiting for, is a decided advantage when trying to recruit to that location.

Children:
Similar to concerns regarding working spouses, some parents may be concerned their children will react badly to a move. Gone are the days when families blindly follow. Things like specialized school programs, sports, coaches, arts and other activities are now serious concerns for many families. A candidate with children heavily involved in one or more of these programs may be loath to leave it behind. However, finding equivalent programs in the new location can ease many of these concerns. Or, some candidates may be sold on a new location because of these opportunities.

Geography and Weather:
Geography, in the broader sense of the word, can pose a problem for some candidates considering relocation. One of the more clichéd complaints about moving to a new city is the weather: Vancouver is too rainy, Ottawa is too cold, Atlanta too humid, Phoenix too dry. A general like or dislike for a certain kind of weather can be a deterrent. Recruiting to Ottawa in January has its own set of challenges. Beyond weather, other geographic factors come into play. A candidate may be an avid skier, sailor or fisherman, making cities with access to mountains, ocean or rivers etc. more appealing. Geography can be a draw, even to Ottawa in January. A reasonably sized city of approximately 1 million, Ottawa does not share the level of air pollution found in many other cities. A candidate could also be delighted by the access to sailing, kayaking, hiking, skiing, farms and nature near Ottawa. How a culture embraces the elements and their environment can be very invigorating to a new resident. As well, daily commute times to and from work, may be significantly reduced when locating to a city like Ottawa, leaving more time for family.

Facilities and Amenities:
Another common concern is that a new city won’t have the theatres, stadiums, hospitals or schools that are found in a candidate’s current home. Most times this concern is unwarranted, but for others it can be valid. A candidate may have a child with long-term health issues and need to be close to specialists or a major hospital. There will be times when this obstacle is insurmountable. If special medical or other essential facilities just don’t exist in a new location, it may be in a candidate’s best interests to stay where they are.

On the other hand, sometimes a smaller centre offers more amenities than a candidate might expect. Make sure you tell your candidate everything your city has to offer, and you might surprise them with how much happens in your “quiet” city.

Business Environment and Social Culture:
The culture of an area can also attract or deter candidates. As mentioned in the introduction, Ottawa, is a superb high tech town with an entrepreneurial streak and a conservative public image. Whether or not an individual will match a city’s business environment, stage of development and general outlook on life is an important consideration.
Being aware of subcultures and ‘communities within communities’ in your location will be helpful. Knowing that Ottawa has a (small l) liberal underground, a British style Gentleman’s Club, a Little Italy, Chinatown and a Lebanese community is helpful when trying to ease a candidate’s fears that they or their families will not have a peer group in their new city.
After Sales Service
So you have convinced your candidate that their life will be better for taking on the role for which you have been recruiting. They have hitched-up and the wagon train is headed North. From a recruiting standpoint, you are satisfied, but your job is not done. Long-term success requires follow up to ensure your new hire and their family are adapting well to their new environment. This takes a commitment to engage in dialogue beyond the professional and a strategy to be inclusive and supportive of your employees’ families. This will help make your new hire successful in their role, and ultimately help your company to be successful on the world stage.

The technology sector in Ottawa has had a tremendously proud history of skilled entrepreneurs and we can look forward to continued successes. Our city’s ability to build and grow is directly related to our ability to develop, nurture and recruit executive talent. The magic formula for recruiting that talent is matching the right candidate; the right location; the right company; the right position all at the right time. The only way to do that is to properly understand the centre you are recruiting to and develop a genuine understanding and interest in your candidates. This knowledge will go a long way towards a successful recruiting assignment.

Chris Hawes