By Keith D. Kulper
All Content © 2008 Kulper & Company, LLC Executive Search Firm.
All Rights Reserved
When I decided to write this book it came upon me like most revelations or epiphanies in life—“Hey, I have seen the light….it is time to share this with others to help them navigate through one key part of life’s many interesting mysteries.” That said; let me begin by quoting one of my favorite writers of all time, Voltaire, the 18th century enlightenment philosopher.
“Let us each boldly and honestly say: how little it is that I really know!”
Demystifying a topic as big and as important as the retained executive search field is truly an awesome task. In all humility it is the goal of this book to share useful information with you that is readily applicable and will help you to accomplish your strategic vision for your enterprise or organization, develop personal career momentum and operate a search firm that will deliver extraordinary results----hence the title Executive Search 1-2-3….
1 = Client;
2 = Candidate
3 = Search Firm
My idea is to help you---plain and simple—by providing you with useful information that will act like a light in the often scary darkness of trying to make your company or organization what it can be ---your career what you would like it to be and your professional services executive search what you have always wanted it to become.
If you are a potential client reading this book I hope you will want to work with us sometime soon---please call me directly at 973.285.3850; if you are a potential candidate for a KULPER & COMPANY search or other search, I hope that this book will make it easier for you to understand how executive search really works and can help you to advance your career; if you are a Search Firm principal or associate I hope that you will let me know your thoughts about anything I am writing in this book so I can continually improve this book.
Useful definitions---101 level information
Can’t live without them…..as my Dad, M. George Kulper would say, “nothing happens in business without a sale.” First,
we have to have an assignment!
What Clients need and want----opportunities to build a company and fulfill a strategic vision.. The Client “Partner”
vs. the “I’m the Boss” attitude----what creates success and leads to a trusted partnership.
There are many good people out there…..finding good candidates is never a problem---attracting and hiring the right candidate is the real challenge---and the “joy of search”….What does it take to be noticed/ found and then interviewed and hopefully “put in” by the search firm.
Why are we so mysterious, intriguing and generally the coolest people on the earth? What is the “Search Process” and why it must be carefully and caringly executed with a client-partner. What is the difference between Retained Search Firms and Contingent Recruiting Companies? Who do I think are “great” search firms and why---let’s call it “Keith’s List”
A brief discussion of GOOD to GREAT—findings and how they appear to relate to the Executive Search Firm /Client Relationship……
War stories that will make you laugh and cry.
Let’s start by offering something really useful….a few definitions widely accepted by experienced player-constituents in the field of retained executive search (Clients, Candidates and Executive Search Firms). I will be using these terms throughout the book so it would be good to get them in front of you right from the outset.
Retained executive search refers to a professional service that begins with the client hiring executive, or trustee/board member, signing off on a written contractual agreement to work exclusively with the search firm to identify, qualify and present qualified candidates who are eager to succeed in a specific job that the client has engaged the search firm to fill. Clearly, the operational and ethical guidelines of retained search, articulated and continually refined by a solid industry group like the Association of Executive Search Consultants are very helpful for clients, candidates and search firms seeking to achieve a deeper understanding of what is entailed in providing retained search service. So, when a client retains a search firm to direct and complete a search “project” or assignment the expectations of that agreement are detailed in the consulting agreement/contract. In retained search, one search firm is exclusively driving the project on behalf of the client until the project is judged completed—ie., a qualified candidate is hired, or the contract is terminated by either party in line with what is stated in the signed consulting agreement. During the course of the search assignment the client pays the search firm’s retainer invoices as the work is being done. This is not unlike any other client/service provider arrangement where payment is not strictly determined or contingent upon outcome. When a search project is being conducted by a retained search firm there are many mutual obligations that must be met by both the client and the search firm upon entering into the arrangement but, as a result, this approach has many –many benefits for all three constituencies.
The number one benefit to be derived from a retained search arrangement is that the client –the candidate and the search firm share a strong mutual interest in seeing that RIGHT CANDIDATE is hired and that the search project is completed in a timely, professional and mutually satisfactory manner.
There are many key clauses in a retained search contract, but as is true in all business contracts, the idea is to make it clear what services are being provided in exchange for payment of the fee. The most important one for clients, is that a reasonable number of well qualified/ closely matched candidates will indeed be presented as quickly as possible so that an offer can be made and the right person hired; that is the essential service at the end of the day. Typically a retained search firm is paid a fee equivalent to one third of the expected total first year cash compensation (base and bonus) by the client; the candidate never pays a fee to a retained search firm. Included in the client fee arrangement are re-imbursement provisions for “out of pocket” search expenses such as web or print based advertising and interviewing expenses such as travel, meals, telephone, email and the like.
I have only attempted to provide a “101 level” definition of Retained Search, thus far ---what about all the many other permutations of the employment services business such as Contingency Search, Employment Agencies, Specialized Websites and the like? I do not intend to cover other forms of employment services in much depth in this book, but I will make references to them since they each play a very valuable role in helping companies and organizations attract the right people when the parameters of their services are fully understood and professionally delivered. Contingency Search refers to firms that are paid their fee by a client only when the hired candidate is supplied by the contingency firm. Employment Agencies most often operate in the same manner but may also charge the candidate a fee for registering with the agency and being placed in their data base. Specialized websites can be set up to work in the same way as employment agencies.
Suffice it to say, in retained search, the firm is always working exclusively for the client to help get a great candidate hired to fill a critically important role in the enterprise.
The retained search firm’s compensation is paid as the service is being delivered in line with contractual arrangements not necessarily driven by the outcome of having a hired candidate. What if a candidate is not hired –does the client get a refund? No. Does the search firm, client or qualified candidate want this outcome? No. Is it fair then for the search firm to be paid? Yes, provided the work done was in line with contractual arrangements. The key idea of retained search is that two out of the three key constituents has “skin in the game” in terms of money being paid for the service; the client and the search firm. The candidate never pays a fee to the search firm or anyone else in a retained search arrangement; however, the candidate truly has the most skin in the game in that he or she wants to be happy in the new job long enough for him or her to be judged a “success” by the client.
The client is always the person or organization who signs the consulting agreement / contract to retain the search firm. The client pays the retained search firm to identify, qualify and assist in the hiring of a motivated and enthusiastic candidate to do a specific senior level –strategically important job. The client pays the search fee which is typically 1/3 of the first year total cash compensation base and expected bonus of the hired candidate as detailed in the written job offer letter. The client pays the fee –gladly, because like with any valuable professional service, a retained search firm is getting a critically important job done. The retained search listens to what the client says about the kind of objectives he or she wants accomplished by the hired candidate and then “gives it back” to the client in the form of a well written job specification. The job specification or position description is used by the search firm to attract a “slate” of qualified candidates who match with what the client thinks the candidate must accomplish –by when--in order to be judged a “success” in the job.
A candidate is the person who has been identified and qualified by the retained search firm and then formally presented /introduced to the client by the search consultant as a “good fit” for the position. Can anyone be a qualified candidate? Sure…..just so long as the candidate’s qualifications, style and degree of enthusiasm about the opportunity fit with what is articulated in the Position Specification. “Square pegs in round holes” are to be avoided…always. That is why a well written and presented job specification is so critically important to the success of the project. When a search firm announces a search through a broadcast networking effort, or calls a candidate directly, the first thing the candidate needs to see is a written job specification or description so that he or she can decide whether or not the opportunity is interesting enough to pursue. Can you imagine trying to hit a target if you are not aiming at it? Well, that is just why a well wrought job specification is so important. The Position Specification needs to be compelling and highly attractive to “A level” candidates who might not even be looking to make a change ---it needs to provide specifics about client company or organization, where it is located, its principal products or services, its financial performance, in short--its “story”—or value proposition in the market place. The Position Specification must also contain such key information as job title, reporting structure, career development/enrichment aspects of the job for the candidate, and, of course, job responsibilities, accomplishment expectations “by when” along with the degree of experience and relevant attributes of the candidate. What else?
Generally, speaking compensation is not included in the Position Specification because we don’t want to get locked into a specific salary range or bonus arrangement that could come back to haunt us later. That said, we always speak with our candidates about compensation during the early part of the qualification process because we want to be sure that we are in the right ballpark, so that, together, we can go forward knowing that compensation is not going to be a “non-starter” later in the process.
If you are contacted by a retained search firm, or respond to a posting initiated by the firm–and after an initial discussion or email exchange with the search consultant or his/er assistants making the initial contact it becomes apparent that there could be a match---then the candidate needs to receive and carefully read the job specification. Remember, the search consultant wants to qualify, not reject, candidates, but if the candidate is judged not be a fit with the job spec, then the search and the candidate need to move on; putting “square pegs in round holes” is a waste of everyone’s time. That said, I would add that there is a phenomena commonly known as an “out of the box” candidate----but let me boldly and honestly say---there is no such thing---since the candidate either fits the job and works out, or he or she doesn’t. There are many ways to make a match---but one of the safest—tried and true---is when the candidate has the experience that matches with the Position Specification ---and is highly enthusiastic about the new opportunity. Enthusiasm is the intangible that drives the hired candidate to work long hours, travel and persist in the many tasks at hand; a motivated hired candidate is always the key to success. In the banking business my former associates liked to say: “character, provides the cash flow to repay loans”. In the search business if a candidate has a track record that reflects drive, persistence, determination and success it is highly likely that he or she will succeed in the new job. This applies to hired candidates at virtually any level.
A retained search consultant is a professional who delivers search consulting services in line with what is stated in the consulting agreement. The fact that the client is retaining the search consultant to work on the search assignment –exclusively—is an important distinction. The search consultant’s job is to help the client hire a qualified person for –most often—a senior level position that significantly enhances the ability to execute the strategic vision of the company or institution. The strategic vision of the company or institution is most often articulated by the CEO or President who serves at the pleasure of the Board of Directors or Trustees of the organization. Most often, retained search firms conduct search assignments—led by a search consultant---for positions such as President, CEO, Chief Financial Officer, Chief Marketing Officer ( “C” level positions) and people who report to these leaders.
The search assignment itself is similar to any project being undertaken on a contractual basis---there is a beginning and a “hoped for” anticipated end. The search consultant has to be able to do a great job understanding the hiring need of the client and then to capture it as succinctly and compellingly in the written Position Specification or it will be likely that the project may not get completed in as satisfactory a manner as hoped for by both the search consultant (who wants to create loyal clientele) and the client who wants the RIGHT Person to be hired. As such, the search consultant ( in our view) has to be willing to take plenty of time understanding the client’s need before he or she can go into the marketplace to begin qualifying candidates. The practical and sophisticated client understands how vital this key step is but, it is incumbent on the search professional to make sure that this happens and not allow him or herself to be rushed into candidate identification or qualification until the Position Specification is done to everyone’s satisfaction who will be involved with the hiring decision. The best analogy I can draw here is to a golf shot off the tee. If the ball is struck squarely and well it will travel straight down the fairway; if it is not, it could end up hooking or slicing making the key approach shot to the green an unnecessary challenge. Golf is hard enough---so a good tee shot is essential----think of that idea when you consider the importance of an excellent Position Specification. If the Position Specification is right then the chance of the assignment turning out successfully is greatly enhanced. Therefore, the search consultant should be a good listener—writer and be able to succinctly articulate the benefits of the job opportunity to an interested candidate.
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Chapter 2
FOR Clients
The client is always
“right”. The client is the “boss”. The client is “king/queen”.
Yes
….of course. Clearly, though, the smart
client views his or her position with humility as well since it is necessary to
listen to the guide or he/she jeopardizes the outcome of the search assignment. Pretty straight-forward stuff—right? But life has a way of complicating even the
most simple things! Fear, ego, need to
control, over work, political pressures, unethical behavior disguised as
something else and unwillingness to trust the search consultant’s assessment of
the candidate, can all spell disaster for the search assignment even when the
very best—most experienced, persistent, and enthusiastic search consultant is
directing the engagement. Conversely,
and happily this is most often the case, the client is reasonable, ethical, wants
to trust the search process, learn and listen as well as provide valuable input
and guidance/feedback throughout the process to help assure a quick, effective
and long-lasting outcome. When this
happens the outcome can be and is most often outstanding.
In
this chapter we will explore the view of the client from the service provider’s
side of the desk and then flip it around and speak to the view of the search
professional from the client’s perspective based upon both positive and
constructive feedback given to us here at KULPER & COMPANY.
Clients
are the drivers of all search assignments. A call comes into our firm from either an existing client or a
prospective client and we get excited listening to what our next assignment
might be all about. The client is happy
because we might be the firm who will address his or her hiring need and help make
the hoped for outcome a reality. This
is all good stuff. We start thinking
…OK, not only, will we do this search but we will work hard to create a trust
based relationship that will lead us to repeat assignments for this
client. Of course, we hope the client is
thinking the same thing! It is great when a solution provider can become a
member of the outside team supporting the growth and long term success of the
enterprise and ultimately ascend to the vaunted position of “trusted
advisor”—as my good friend, Zung Nguyen of JP Morgan Chase’s Private Banking
Group, would say.
“The
Call” from or to the Client
There
are so many potential points in the conversation when the discussion can really
take wing…..My favorites are when the client talks about how the hired
candidate will help drive the strategic objectives of the enterprise and make a
real difference in longer term performance. Here is what normally gets covered:
1) The client presents a clear overview of the hiring
need and is open, direct and forthcoming about what the company is really
trying to accomplish with the hire. This
is just as true for a mid level assignment as it is for a senior level
search. A search firm is not an
employment agency ---we are a strategic partner helping to advance the
strategic imperatives of the enterprise or organization. A client who simply wants the search firm to
fill an open position is barking up the wrong tree. We listen for the client to explain to us how
the hired candidate will help make the goals of the strategic plan a
reality. Typically, this is why search
firms are engaged to handle the most sensitive and strategically important
hiring needs.
2) During the Position Specification Development phase of
the search process, the client and his or her team are willing to take the time
it takes to make sure the Spec is an accurate representation of job
Responsibilities and Deliverables “by when”, as well the company “story”,
culture, organizational structure, relevant products/services and the
like. The key is to make the Position
Specification a marketing document that will attract the “right” prospective
candidates.
“Right Candidates”
are professionals who are excited about the opportunity for the right reasons. Right Candidates have the experience, capacity, attitude and desire to
do the job described in the SPEC.
So, “The
SPEC has to right –or the candidates will be wrong”. Wrap your mind
around that simple notion and you will have unlocked the secret of what propels
the search toward an optimal outcome. There
are no shortcuts to writing a good spec---a spec that becomes a “Marketing
Document”—for your company. Try to think
about it that way; a good marketing
document attracts the right customers---not just any customer. A well written spec will attract top flight
potential candidates who will be right for the position because it meets their
criteria for career advancement, job enrichment, work-life balance,
compensation and of course, job location and company culture.
Often,
we have to wrestle the client to the
ground—(as my old friend Joe Beebe, a partner with Keefe Bruyette, likes to
say)---and even run the risk of testing his or her patience, to make sure the
SPEC is right because we will not start sourcing candidates until the Spec is
done. An experienced search consultant
knows what I am talking about---as does an experienced client. But people are busy and anxious to meet
qualified candidates and in their haste—they risk big-time waste. Clearly, though, in order to target the right
candidates the SPEC has to be aimed very precisely…..it’s a big competitive
world out there and no one wants to lose even a minute of their time. So, if you want to be a great client you will
work hard with the search consultant to GET the SPEC RIGHT…..before anything
else happens. If the search firm is
worth its salt they will keep you on the right path throughout the search
process just as a good fishing guide would do when taking out a fishing party
for trout or stripers; no one is really happy until great fish are caught, but
it is all in the preparation and knowing how to fish!
Clients who understand this are much
quicker to make a great offer to the “right candidate” because there is so much
clarity around what constitutes a “great candidate”. In the quality world of 6 Sigma or ISO this is
consistent with the notion of reducing errors and waste that come from “non
conformities”. Understanding and then continually improving the process that
produces desired outcomes makes the outcome much more predictable and
ultimately lowers cost—improves performance and helps assure long term
success. It all fits together for the
hiring manager and hiring team once the first round of candidates are presented
because instead of feeling as though the candidates “could be better”—there is
a feeling that ---“hey, these are good people----we like them! We could hire one of these guys!” Isn’t that what the game is all about?
As you
look at the SEARCH Process it is easy to see that the steps are laid out in a
clear and concise manner. My message to
our clients is: “follow the search process---trust it and stick with it---and
you will get the outcome you are seeking in a cost effective and timely
manner”…It works.
MORE to Come…..
Keith D Kulper
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