building capability 2012 - exec search techniques & methodology

Executive Search Techniques and Methodology

The FIRM ConferenceSeptember 2012

Presented by:Carol O’Driscoll, Director, Archer Search

Caroline Grayson, Head of External Talent Sourcing, The Coca-Cola Company

Classified - Internal use

• When to use executive search - how it differs from other recruitment strategies and the benefits

• Overview of the search process - search methodology - case study

• Q&A session

2

Overview of Session


When to use executive search

3Classified - Internal use

The Market Today

Source: Building Talent Pipelines, Recruiting Roundtable

• Challenging economic times; negative economic news around globe.• Reduced talent demand globally causes increase in talent supply.• Current realities cause individuals to believe talent is easier to find and attract.

If focus remains only on active job seekers, we miss half the market

for talent


The best talent is often the hardest to find & attract

Prospect Types Difficulty Value Recruiting Tactics

(1) Active - Unemployed and actively seeking a position

Easy 4Riskiest to hire, may have left previous role truly on own accord or may be a potential performance issue.

4Internet postings

4Networking and referrals

(2) Passive - Employed but open to a position

Moderate 4Prospect willing to explore other opportunities

4Prospect may be disenchanted with current employer

4Internet postings

4Networking and referrals

4Contingent and Retained Search Firms

(3) Relationship Focused- Employed, happy, & not seeking external opportunities

Difficult 4Any company’s most prized employees and typically the high potentials

4 Contingent & Retained Search Firms

4 Networking and referrals

4 Internal Executive Search

5Classified - Internal use


The Value of Internal Search

Consultant managing multiple clients Dedicated internal expert

Limited/Narrow exposure to Coca-Cola Understanding of the Coca-Cola system and culture

Restricted by off-limits policies Unrestricted access to worldwide talent pool

Market intelligence reused for other clients External market intelligence ‘owned’ by Coca-Cola

Short term motivation Long term motivation

Build own firm reputation Build Coca-Cola employer brand

Motivated to fill immediate hiring needs Pipeline building ahead of Open Requisitions

External Search Firms Direct Sourcing Modelvs.

6

Classified - Internal use 7

Overview of the search process

THE SEARCH PROCESS

Client BriefingSpec

DefinitionEstablish

timelines and deliverables

Target ListIdentification

Sourcing Approaching

Long ListCallibration with ClientThird party references

Short ListInterviewing

Due Diligence

Client Interviews

Formal Referencing

Hire


WHY A SMART SEARCH STRATEGY?

Archer Search Limited Classified - Internal use

Leads to the best candidates – not just good candidates

Enables a focussed fast start – likely to produce a strong short list- less likely to lead to second and third slate of candidates

Better use of time – be most productive

Reassures the client that you have a plan that matches their strategy

9

THINK OF THE FINAL OUTCOME-THINK ROAD MAP AND FINAL DESTINATION

Archer Search Limited Classified - Internal use 10

SEARCH STRATEGY – AIMING FOR CENTRE TARGET


• Structured and prioritized list of target organizations • Prioritized roles within the target companies• Focus on Organisational structures• Client agreement and buy in from the outset

11

IMPACT OF A GOOD SEARCH STRATEGY

Clear focus on targets

Transparency of market coverage

Client reassurance

Clear Road map if the search hits

problems

Helps build network for

future


CRITERIA FOR TARGET ORGANISATIONS

Size and Complexity

Industry Sector

Geographic Scope

Products

Off Limits

Culture

Ownership



COMMON PITFALLS TO AVOID

Search firm does not meet clientDoes not have chance to:• get feel for client need/culture•Chance to ask research related questions•Describe client effectively on calls

Can lead to unclear briefing at search firm•Not enough time•Consultant thinks telepathically•Does not know all the answers – but won’t reveal this!

•Team lacks calibration points to ensure on spec candidates

Pressure for fast start•starts work without clear brief•Lack of focussed target list•Too many calls•Good but not the best candidates•Search takes too long•Restart needed

15


AND HOW TO RESOLVE THEM

Search firm takes Initiative•Does background research on client•Identifies market trends/issues•Identifies “concept candidates” – to

calibrate with client•Suggests and agrees timeline with

Client

Agree Target List with Client•Agree on “concept candidates”•Identify relevant sources and prospects

quickly•Make targeted calls•Report feedback to Consultant quickly•Flag any potential issues/challenges

16


KEY POINTS TO COVER WITH THE CLIENT

Reason for the role?

• New role• Internal

restructuring?• Replacement –

if so why?

Key responsibilities

for the role• P&L• Management

remit• Reporting

Structure • Functional

remit? – marketing/sales

• Business Development?

• Years of experience needed

• Progression Opportunities

Key Challenges of the role

• Turnaround?• Growth

Agenda?

18

KEY POINTS TO COVER WITH THE CLIENT

Geographic Responsibilities• Area covered• Amount of travel required• Relocation?

Concept Candidate• Does the client have an ideal

profile in mind?• Personality fit with the Client-

what personality would fit best with the team?

• Which companies does the client admire – or not?

Specific Competencies• Leadership• Strategy• Cultural Awareness• Executing for Results • Driving change • Functional Knowledge

Education/Professional Qualifications?• MBA• Cert Eng• FCA • Languages?


MANAGE THE CLIENT EXPECTATIONS


DEFINE THE SPECIFICATION



FOCUSING THE TARGETS

Centre target direct competitors

Companies who interface with the client

Lateral sources of candidates

22


POPULATING THE TARGET LIST

Allianz BootsGlaxo SmithKlineCoca ColaDiageoHeinz

UnileverProcter & GambleColgate PalmoliveReckitt BenckiserGillette

TescoAppleGoogle VisaIkea

23


Geographic ScopeOf company

Of roleGeographic Breakdown

Where are key challenges?

ScaleFinancials

People Profitability

Size of divisionSize of parent company

OwnershipPublicly QuotedPrivate EquityFamily owned

What would be best fit?

Culture Hierarchy v Matrix

Academy CompaniesConsensus building?

Which does the client admire?



SectorMarket Leader

Competitor Companies

-Competition clauses?

Lateral thoughts

ProductsCore products

Related ProductsBrand Profile

International brands

Off LimitsTo client

To Search Firm


KEEP FOCUSSED ON THE SEARCH



NEXT STEPS

Complete identification within target companiesVia ID/desk

research and sourcing

Targeted sourcing to

establish most relevant

prospects

Agree target prospects with

Consultants and who calls

who

Make approach calls

27

REMEMBER- A GOOD SEARCH STRATEGY IS LIKE A JIGSAW

Ensure you connect all the piecesUse teamwork to make it happen!


WHY A SEARCH STRATEGY REVISITED

Always use a well defined search

strategy

Use the search strategy criteria and

framework

Develop a list of target segments and

organizations

Ensure search strategy is agreed by consultant and

client

Define prioritized target roles within

target organizations

When search goes astray, revisit the search strategy


REMINDER- YOUR BRIEFING CHECKLIST FOR AN EFFECTIVE SEARCH STRATEGY

Responsibilities•Total revenues/budget•Reporting lines (solid and dotted line)•Total number of people reporting to

him/her•Geographic Scope•Key challenges

Attraction•Compensation (base, bonus, equity,

pension)•Career progression•Title•Location•Broadening skillset/experience

Reason for the role•Reason for vacancy•Confidentiality•Impact of company strategy –M&A?•Internal candidates


INFORMATION NEEDED ON THE CLIENT

BusinessHistory

FinancialsSubsidiariesPlace in the marketKey competitorsStrategyOwnership

OrganizationOrganizational StructureDirect ReportsManagement teamCultureDiversity policyProducts/Brands

Other IssuesOff limits to client and Search FirmCurrent Company Strategy/News Future plans


HOW TO FIND TARGET COMPANIES – EXAMPLE RESEARCH TOOLS


http://www.lexisnexis.co.uk/

HOW TO FIND TARGET COMPANIES – EXAMPLE RESEARCH TOOLS - FREE


ADDITIONAL SOURCES OF TARGET COMPANIES

ConferencesSpeakersCompaniesSponsors

Professional OrganisationsMember

companies e.g. “50 Golden Brands” Marketing Society

Committee Members

Award WinnersMarket Themes

and IssuesArcher Search Limited Classified - Internal use

Professional organisations can be a quickSource of relevant sources and prospects

34

FINDING YOUR TARGET LIST- TECHNIQUES

Know your market Brainstorm Peer Listing from resources e.g. OneSource,

Dow Jones Companies and Executives Competitor Intelligence Reports

Market Research Analyst Reports

Newspaper Stories quoting market leaders e.g. Guardian Media reports

Lateral Thinking Similar or related markets which could produce

“left field “ prospects



POTENTIAL PITFALLS

Think about the sources of information What are the sources of the information

Are they credible?Can they be verified Is there a political/hidden twist?

Document potential challenging issues for due diligence to follow up

Archer Search Limited 3636


Overview of the search process – Coca-Cola Case Study

38

Research to determine search strategy and target list ….both Coca-Cola and Pepsi-Cola saw currentvalue sales decline in non-cola carbonates and other product areas due to strong price competition from economy brands and private label products”

Leading domestic players such as Maspex also began to invest more in new product development and marketing towards the end of the review period.

Euromonitor. Soft Drink Market Poland


In-house advantage! Access to industry

reports

39

Marketing Activation Director Poland

Draft Target Company List

The search strategy covers 2 main areas:

Leading multinational fmcg companies with significant operations in Poland.

Leading domestic players in Poland. In these companies I will target executives who also have experience in navigating a complex international organisation.

In addition, I will search for Polish expats who are open to relocate back to their home country.

FMCG Multinationals

Domestic players

Carlsberg Colgate Palmolive Danone (Zywiec Zdroj) Kraft (+ Wedel) L’Oreal Mars Nestle Pepsico Philip Morris Procter & Gamble Reckitt Benckiser Unilever

FPH Marwit Herbapol Hoop Maspex Naleczow Zdroj


40

Identify sources and prospects

In-house advantage! Source our own

employees

When calling sources try have some names to

prompt them.

Notes on size /scale market

positioning etc



How to find sources & prospects

Speaker lists from conferences

Press releases

42

Present shortlist and observations



Questions?

building capability 2012 - exec search techniques & methodology

Business

search firmsfocused

internal use source

internal use2

executive search techniques

candidates questions

best talent

client formal

talent supply