Moving The Agenda Forward

By Peter Felix, President, Association of Executive Search Consultants

The recent spate of conferences on executive search organized by the trade publishers who follow our profession has left me with a number of impressions:

- In the minds of many search practitioners, especially AESC members, retained search is alive and well ñ just more difficult.

- Some clients view it as a key professional service to be embraced.

- Some clients view it as a necessary evil.

- Some view it as a commodity to be dealt with on a purely transactional basis.

All these conclusions give me great cause for optimism since only one of these needs serious work: number 4.

At the one end of the spectrum is the client who embraces our service, works with the search consultant as a partner and seeks optimization of the process to the advantage of all concerned ñ client, candidate and search firm. Honeywellís senior recruiting process described at a recent conference highlighted their highly professional and successful approach to using retained executive search on a global basis. The issue of contingent payments was put into perspective when the Head of Recruitment indicated that, in a trusted relationship, it becomes irrelevant.

Many professional services are viewed as a necessary evil ñ the law, medicine, psychiatry, investment banking to name but a few. But they are there when needed and, depending upon the severity of the need, the client recognizes the importance of a quality service and the requirement to pay for it.

Retained executive search should not mind being regarded in this light - none of us advocate wholesale use of our services. They should be used for strategic or critical needs and part of the price reflects the readiness and availability of our service when it is needed.

The word consultant is there for a reason ñ recruiting senior level executives requires a range of consulting advice and the client often makes use of the accumulated experience of the search consultant without fully recognizing it or specifically paying for it.

It seems that in this era of ìcommoditizationî the search profession may need to emphasize its consulting proposition so that it is front and centre in the mind of the client when engaging a retained search firm and it is even described and spelled out in the contract.

Many of our member firms highlight the on-going value of the consulting relationship and some even describe the component parts of that relationship. When spelled out the experienced search consultant is ready and qualified to consult on any or all of the following:

- Demand and supply situation for top level executives in a specific industry sector/function

- Comparative analysis of the changing nature of senior roles e.g. the role of the CFO post Sarbanes Oxley, the Chairman/ CEO, the function of the outside or non-executive Director

- Compensation trends
- Succession planning
- Management appraisal

Evaluation of the organizationsí recruitment proposition
Etc. etc

Such services are part of the distinct added value of working with a senior, experienced search consultant and part of the service that consultants like to provide because it enhances and broadens their relationship with the client and thus the satisfaction that they obtain from their work.

The best search work is performed in the context of a much longer term relationship with the client that requires time and investment on both sides and which is fuelled by specific assignments. Some firms have negotiated on-going monthly or annual retainers with their clients to reflect and underpin this. Others have made it clear that part of the retainer fee includes some advice and guidance on issues such as those described above. They have found that it has transformed their dealings with the client, moving it from the transactional to the relationship and enhancing the experience for both sides.

From my discussions with search firms and clients around the world it is clear that the move to commoditization does not sit well with either side of the equation. But ìclientsî of the search firm i.e. the line and often HR managers need help in defending search relationships from the inevitable transactional analysis that is increasingly being imposed by purchasing departments.

The retained search firm can either say no to being treated as a discounted commodity or it can work to rebuild the relationship so that it achieves its long stated objective and role as a critical arm of management consulting.