egon zehnder international: implementing practice groups

Komal Aslam

Egon Zehnder International: Implementing Practice Groups

-What is Egon Zehnder International?

-Who formed it?

The Executive Search IndustryTop Six Executive search firms in 1996

1. Korn/Ferry International2. Heidrick & Struggles3. Spencer Stuart4. Egon Zehnder International5. Lamalie Amrop International6. Russell Reynolds Associates

Minimal StructureThree decision making bodies in EZI

o 1. Executive Committee (made operating decisions)o 2. Partners (approve overall strategy, profit

distributions, elections and opening of new offices)o 3. EZI’s Four member board (set strategic initiatives and

decided consultants’ base compensation)

Practice groups

What is Egon Zehnder International’s niche?

What is a Niche?

A niche market is the subset of the market on which a specific product is focusing.

Concentrating all marketing efforts on a small but specific and well defined segment of the population.

EZI Niche

To serve very senior levels of management.In 1980, they tried to bring diversification.In 1998, their niche was divided into three areas:

Executive SearchCorporate GovernanceManagement Appraisals

What makes its culture special?

EZI’s Culture

Unique Culture

Single Profit Center

Compensation and Fee structure

Tough Recruitment Procedures

Lean Management

Structure

No Star concept

If you were Meiland, what wouldyou be most concerned about?

Meiland’s concerns Whether the management is given enough attention with

respect to growth?Whether the measurement system is still that effective?

What were industry specific practice groups introduced?

Introduction of Practice GroupsFirm became globalized, and moved from generalists to

specific practice group.Less Geographical confinement, more industry focusClient DemandMulti-office, Global AssignmentsCompetition

What tensions did they create within the firm?

TensionRevenue and cost allocation.Maximizing revenues- deviation from single profit center.Need for Profit and Loss statements.Cost Accounting.