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!”
Monday, June 8, 2009
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.
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.
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