search-consult issue 1

The International Magazine for Search Professionals

search-consult

Chairman of Heidrick & Struggles Executive SearchExclusive Interview with Dr. Jürgen Mülder

Launching the Executive Search International Debates 2001

Management Appraisal and Executive Search

www.search-consult.com

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S E A R C H - E D I T O R

3March 2001 search-consult

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Front Cover: Dr. Jürgen Mülder, Chairman,

Heidrick & Struggles Executive Search

Photograph by Andreas Klein

Andreas Klein Photography +49 179 500 93 67

© Copyright 2001 Dillistone Systems Ltd

On Friday, January 12, 2001, shares in Korn/Ferry International fell in valueby 21% and Heidrick and Struggles shares lost around 9%. However, anysighs of relative relief from the latter firm may not be heard until April,

when the lock up on the vast majority of the stock held by its employees expires(some 54%). The impact of the freedom to trade on share price and indeed, partnerretention remains to be seen.

Of course, partner retention is a key issue. When a private firm invites publicinvestment, its partners are effectively giving away a proportion of future earnings;where a private firm distributes profits amongst its partners, a public firm isexpected to pay a dividend. Merrill Lynch have calculated that a partner at a publicsearch firm is likely to receive around (US)$200 thousand less in cash compensa-tion than they would in a private business. Obviously, there will be positiveoutcomes if stock performs well and partners hold onto their equity but this is notalways guaranteed.

The 'public/private' debate is just one of a number of topics we will cover overthe coming months. We will compare the ways in which international searchservices are provided; is an integrated business model better than a networkmodel? We will also discuss the pros and cons of outsourcing the research process;examine the demand for search in different markets and the impact of the venturecapitalists on search and more.

The next two issues will carry exclusive interviews with Steve Potter, CEO, TMPWorldwide Executive Search; Jeff Christian, Chairman & CEO, Christian andTimbers; Gerard Clery-Melin, CEO, Whitehead Mann Group; Dr. Gernot Muller,Managing Partner, Ray & Berndtson, Germany and Chris Clarke, President, BoydenInternational. We hope to bring you analysis and international coverage of thesearch industry at a depth you will not find elsewhere.

The magazine works in harmony with our www.search-consult.com website. Itis just one of a number of new products designed to promote and serve the world-wide retained search community.

The website is designed to act as an industry portal where search professionalscan find anything from books to new career opportunities. It also aims to providea comprehensive worldwide listing of search firms for use by corporate and profes-sional recruiters. If your firm is not listed or any of the details incorrect, please letus know and we will update them straightaway.

Hopefully, you will be able to attend one of the 'search 2001' debates we arehosting in major cities around the world. Attendance is free so come along, say'hello' and listen to the views and opinions of your peers. You will find detailsinside the magazine. We look forward to meeting you.

Our editorial team will be delighted to hear feedback on the magazine itself orany of the issues covered. Please tell us your news and opinions or simply let usknow what subjects you would like to address in future issues.

NewBeginningsWelcome to the first issue of search-consult

COMING UP IN THE NEXT ISSUE:

Exclusive Interview with Steve Potter,CEO, TMP Worldwide Executive Search

The Pros and Cons of OutsourcingResearch

USA Executive Search Conference Review

S E A R C H - I N S I D E C O V E R

2 search-consult March 2001

Executive SearchWhere will the Future Take Us?You will have an opinion, so why not come along and share it with your peers at one ofthe FREE TO ATTEND debates addressing the future of the Search industry. Led bysenior members of the profession in New York, London, Frankfurt, Paris, Amsterdamand Brussels, the debates will be lively, proactive and informative.

Speaking in New York on February 28th

(WEBCAST available from March 5th on www.search-consult.com)● Peter Felix - The Association of Executive Search Consultants● Chris Clarke - Boyden Inc.● Brad Dewey - Christian & Timbers● William Guy - Cornerstone International Group● Brian Sullivan - Heidrick & Struggles

Speaking in London on March 29th

● Ken Brotherston - Futurestep● Andrew Garner - Garner International● Guy Beresford - The Miles Partnership● Richard Boggis-Rolfe - Odgers Ray & Berndtson● Michael Byrne - The Rose Partnership

Speaking in Frankfurt on April 5th

● Peter Nowack - Boyden International● Reinhold Thiele - Heidrick & Struggles● Werner Schwab - Ray & Berndtson ● Dr. Christoph Rummel - TMP Baumgartner● Heinz Bischof - TRANSEARCH

Debates sponsored by:

To attend please register at www.search-consult.com or send an e-mail to [email protected] more information about the debates, please visit the website.

search-consult.com

ACCORDING TO THIRDquarter (Q3) 2000 statis-tics on searchesreported by memberfirms of the Associationof Executive SearchConsultants (AESC), totalfigures for executivesearch worldwide has

increased overall, withtotal reported searchesup 41.5% since Q3 1999.

In the US, the numberof searches to fill CEOand President-levelpositions has risen93.3% and searches forCOOs and EVPs rose to

95.7% over the samequarter. The AESC alsoreports that the rise inthe number of high-level executive searchesin the US correspondswith an increase in theaggregate number ofsearches reported for

positions with a salaryover $1 million. Million-dollar appointmentswere up 78.1% over Q31999, and rose 21.3%from Q2 to Q3 2000. Thetotal number of reportedsearches in the US was

up 21.6% in Q3 2000from Q1 2000.

In Europe as a whole, retained executivesearches are up 52.4% over the past fourquarters, and 7.7% fromCONTINUED>

S E A R C H - N E W S




SPENCER STUART,executive search firm,has launched SpencerStuart Talent Network(SSTN), which istargeted at mid-and-senior-level executives.SSTN expands SpencerStuart's career manage-ment and recruitmentefforts into the $100,00to $250,000 annualsalary range.

In addition to recruit-ment services, the newwholly owned businesshas an Internet compo-nent to attract emerging

executive talent andprovides a number ofcareer building andleadership developmentresources. Based on aprofile developed duringan eight-minute regis-tration process,individual members seeinformation and oppor-tunities that are relevantto them. SSTN's jobopportunities spanindustries and profes-sions such as finance,general management,life sciences, sales &marketing and

technology. LikeSpencer Stuart, SSTNwill provide clients withfull service searches,from developing jobdescriptions to candi-date assessment, toensure that companiesinterview only the bestcandidates.

Steve Zales, Presidentand CEO of SSTNcomments: "SpencerStuart Talent Networkrepresents the latestevolution of therecruiting industry. Ourcombination of a rich

online environment,sophisticated databasemarketing techniquesand personal assess-ment and accountmanagement practicescreate a new breed ofhuman capital solutionfor companies, andpersonalized careermanagement servicesfor emerging executivetalent. Since SpencerStuart is the sole ownerof SSTN, clients andcandidates benefit fromthe close relationshipwith the world's premier

executive search firm."Spencer Stuart is the

first major executiverecruitment firm tolaunch an onlinebusiness carrying itsown brand name, butthe new product entersa market alreadycovered by Korn/Ferrythrough FutureStep andHeidrick and Strugglesvia LeadersOnline.

HEIDRICK & Struggles International,Inc. has acquiredAMROP Finland, one ofthe largest executivesearch firms in Finlandwith headquarters inHelsinki. The financialdetails of the deal haveremained undisclosed.

Piers Marmion, ChiefOperating Officer andPresident of theInternational segment ofHeidrick & StrugglesExecutive Searchcommented: "The acqui-sition of AMROP Finland

is a good move for usboth in terms ofbusiness developmentand cultural fit and weare pleased to welcomethem to the Heidrick &Struggles family. Unitingour organizations clearlyestablishes ourselves asthe number one searchfirm in Finland andstrengthens our opera-tions in some importantemerging markets."

Juha-Pekka Ahtikari,from AMROP Finlandwho will be the OfficeManaging Partner of the

Helsinki office said, "Formore than a decade, wehave had tremendousrespect for Heidrick &Struggles as acompetitor. It is clearthat we share a commit-ment to high qualityexecutive search workfor our clients. This is agood match that willstrengthen both organi-zations."

VOTED TOPheadhunter of the 20thCentury, Gerry Roche,Chairman of Heidricks &Struggles Internationalhas yet to slowdown aswe enter the 'real newmillennium.' When JackWelch, Chairman ofGeneral Electricannounced that hissuccessor would beJeffrey Immelt, USsearch firms were eagerto take on the losingcandidates, JamesMcNearney and RobertNardelli for their clients.

However, Mr. Rochecame out on top, placingMr. McNearney atMinnesota Mining &Manufacturing (3M) andMr. Nardelli at HomeDepot, within a week ofthe GE successionannouncement.

Spencer Stuart Launches Mid-Level Executive Recruiting andCareer Management Business

Heidrick & Struggles InternationalAcquires AMROP Finland

Strategic Placementsfor Gerry Roche

KORN/ FERRYInternational has formeda search committee tobegin successionplanning for a new CEOto succeed Windle B.Priem, Korn/Ferry'scurrent President andCEO since December1998. The committeewill include RichardFerry, Chairman, and all

six of the board's outsidedirectors. After Mr.Priem's successor isnamed, he will serve asChairman for a year toprovide guidance andsupport to his replace-ment.

Korn/Ferry InternationalAppoints Committee toFind CEO Successor

Whitehead Mann Group to raise £4 million for Expansion

Record Turnover Reportedfor Top Executive Positionsin US and Europe

ODGERS RAY &Berndtson haveconfirmed that they arein talks to purchase theBerwick Group, aspecialist London-cityboutique made up of 15consultants. Talks arelikely to be completed inFebruary. The combined

teams of over 25consultants will bebased in a new Londonoffice. This new teamrepresents a majorrecruitment force and isintended both tocomplement the signifi-cant Ray & BerndtsonFinancial Services

network in Germanyand the USA and isintended to raise theprofile and impact ofOdgers Ray & Berndtsonin global financialmarkets.

WHITEHEAD MANNGroup is raising £4million in proposedplans to expand thebusiness internationally.The expansion willfocus on developing agreater presence in theUS and the firm is alsorumored to be in discus-sions regarding a smallacquisition in the UK.

It is raising the funds

through a placing of990,000 new ordinaryshares, priced at 401p(the placing) each.Dealings commenced inJanuary 2001.

The new shares beingissued representapproximately 4.6 percent of WhiteheadMann's current issuedshare capital. Theplacing represents the

first occasion on whichthe company has raisedcash by the issue of newequity capital. Thegroup purchased GKR,and Pendleton James in2000.

Odgers Ray & Berndtson in Talksto Purchase the Berwick Group

Investor AB StartsNew ConsultingCompany

INVESTOR AB, BASEDin Stockholm, has estab-lished a new whollyowned subsidiary calledNovare Human CapitalAB that will focus onproviding professionalservices and counselingin the human resourcesarea.

Novare is initiallyoffering its services toportfolio companieswithin Investor GrowthCapital and b-businesspartners. The company's

staff possesses bothgeneral and specialistcompetence, allowingNovare to provideconsulting servicescovering the entirespectrum of humanresources services.Executive search andrecruitment will be apriority area.

SHARES OFKorn/Ferry Internationalsank 21% on FridayJanuary 21, 2001 afterUBS Warburg analystKelly Flynn revealed heropinion that previousearnings estimates forKorn/Ferry were "tooaggressive" and failed toreflect the economicslowdown. The analystnow predicts thatKorn/Ferry will earn 15cents a share onrevenue of$166.9million, downfrom her previous 27cents estimate on $175.1

million. On the sameday, Heidrick andStruggles Internationalfell 9% after Flynndowngraded stock from"Strong Buy" to "Buy."

Korn/Ferry declined tocomment on thedowngrade, but someanalysts felt that thestock plunge had goneto far - Korn/Ferry workat a senior level and assuch tend to be lesseffected by anyeconomic slowdown.

Four analystssurveyed by FirstC a l l / T h o m p s o n

Financial expectKorn/Ferry to earn 26cents a share in thethird quarter. AK o r n / F e r r yspokesperson says thecompany expects torelease fiscal third-quarter earnings beforeMarch 15, 2001. See theleader column forfurther comment.

Korn/Ferry SharesDowngraded by UBSWarburg Analyst





Record TurnoverReported for TopExecutive Positions in US and Europe

search-consult.com andDillistone Systems SponsorExecutive Search Events

FROM PAGE 5>Q2 to Q3 2000. Thenumber of searches tofill President and COO-level positions in Europehas risen 144.4% in Q32000 from Q3 1999.Searches for CIOs hadthe sharpest rise of260% at the end of2000.

Firms operating in theUK reported a 65.3%and 7.8% rise (year-to-year, and quarter-toquarter, respectively)opposed to Germany's38.8% and 10.3% andFrances's steady growthrates of 7.2% and 8.3%.

Meanwhile, the UKRecruitment ConfidenceIndex (from the DailyTelegraph, CranfieldSchool of Managementand TMP Worldwide)also gave bullish results;50% of respondentsexpected to see anincrease in new jobswhilst, 81% of respon-dents admitted that

recruiting at manage-ment / professional levelwas particularly diffi-cult.

Stuart Blake, Head ofUK Search and Selectionat TMP Worldwide, says:"Companies are stillconcerned by skillshortages and the latestfindings show that thisis now becoming a realissue for manufacturing.We are finding thatorganizations areexpressing concernsabout their inability torecruit the right peopleat the right timeespecially at executivelevel. Recruitment diffi-culties include seniorlevel appointmentswhere we've seen confi-dence increase with thenumber of opportunitiesin management risesignificantly."

SEARCH-CONSULT.COMand parent companyDillistone Systems Ltd.are official sponsors of theAssociation of ExecutiveSearch ConsultantsConferences taking place

in Florida and Amsterdamand will also besponsoring the GermanBDU conference in Bonn.If you are attending anyof these events, pleasevisit us at our stand.

THE ECONOMY MAYbe slowing down butHeidrick & StrugglesInternational Inc. seesan increase in demandfor its services ascompanies set out toreplace its executivesand board membersunder the strain of aweakening economy.The company revealedto Wall Street analyststhat it was comfortablewith fourth-quarterearnings estimates of 37cents a share. For the

third quarter endedSeptember 30, 2000,Heidrick & Strugglesbeat analysts' expecta-tions by 2 cents withearnings per share of 51cents, excluding items.The firm also revealedthat it expects 2001earnings of at least $2 ashare. It had sales of$435.8 million in 1999and is on track to bringin more than $580million in 2000.

In an interview withDow Jones Newswires,

Heidrick & StrugglesChief Executive, PatrickPittard said the keyfactor for the company'ssuccess is the scarcity oftop-level executives andthat this shortagecreates "great futures"especially for industriesor organizations "thatcontrol the scarcity."

Heidrick & Struggles ExpectProfits in Economic Slowdown

I NTE RVE NT ION I STinvestors behind the UKActive fund, JulianTreger and BrianMyerson, are to becomejoint non-executivechairmen at BNBResources. The appoint-ment of the duo formspart of a boardroomshake-up that will alsosee Tory MP JohnRedwood become a

non-executive director.Rory MacLeod, a formerdirector and shareholderof Select Appointments,a large recruitmentagency, will become anon-executive director,while the four currentn o n - e x e c u t i v e s ,including JohnHeywood, will standdown. Alan Schofield,finance director, will

step down and bereplaced by Paul Turner,currently in a similarpost at Betterware.

BNB revealed lastyear that it was unlikelyto achieve profit targetsdue to tough conditionsin the technology sector,and it is understood thatthe restructuring is adirect result of this.Profit before the costs

incurred in developingMyOyster, its internet-based business, were£1.9m. The UK ActiveValue funds advised byMr. Treger and Mr.Myerson hold a 28.25per cent stake in BNB,which owns the NormanBroadbent executiverecruitment firm. Mr.Treger and Mr. Myersonplan to conduct a full

strategic review. Mr.Tedger said that hethought BNB was a veryundervalued businessand was not performingto expectations. Headded that the newboard members wouldmake it work harder.

BNB Resources Shake Up

CHRISTIAN & Timbers based inCleveland, Ohio, hasreported averagerevenue growth of 42percent for each of thepast three years. In itscalendar year 2000, thefirm has had a 55percent increase inrevenues, which were£60.7 million. This hasbeen attributed to a 38percent increase insearch assignments,which rose 63 percentand 46 percent, respec-tively. In the US, the firmhas expanded intoSouthern California tobetter service venture-backed, early-stagetechnology companies.In the Silicon Valleyregion, search activityincreased 70 percent,while searches in the

financial sector of NewYork and Silicon Alleygrew by 49 percent. Tomanage this growth,Christian & Timbersexpanded its infrastruc-ture in 2000 and totalstaff numbers grew by49 percent with anaddition of 92 newemployees. The firmalso expanded itsservices abroad,opening new offices inLondon and Geneva,under the managementof Brad Dewey.

search-consult willcarry an exclusive inter-view with Jeff Christian,CEO, Christian andTimbers in issue three.

Christian & TimbersReports 55 PercentUS Revenue Gain

TMP Worldwide ExecutiveResourcing Acquires ADEPT Inc.

Hogarth Davies Lloyd To Open Office in Tokyo

TMP WORLDWIDEInc. has acquired ADEPTInc., a recognizedinnovator of humancapital management inthe Northeast region ofthe US, specializing ininformation technology,e-business andengineering disciplines.

"Our acquisition ofADEPT adds to ourforces one of the largestand well-known ITstaffing firms in theNortheast corridormarket," said AndrewBanks, Global CEO of

TMP e-Resourcing."ADEPT is popularamong the decision-makers in the banking,investment, insurance,telecommunications andpharmaceuticals indus-tries as a reliableprovider of talent tosupport their globaloperations and criticalprojects. With theirclient base…andInternet based model,we can further enhanceour temporarycontracting servicecapabilities in informa-

tion technology,telecommunications andnetwork engineering."

Tomasz Schellenberg,CEO and President ofADEPT Inc., added,"ADEPT is prepared toimmediately integrateour systems, servicesand methodologies withTMP, to deliver the mostcomprehensive e-resourcing servicesavailable."

HOGARTH DAVIESLloyd Executive Search,headquartered inLondon, is opening itsfirst overseas office inTokyo in April 2001.Former senior invest-ment banker, MasaakiFujimoto, will head the

new office and by theend of the first quarterstaff numbers areexpected to be aroundsix including consult-ants, researchers andsupport staff. The Tokyooffice will offer a fullrecruitment service

across the entire finan-cial services spectrumalong with accountingand law.

S E A R C H - P E O P L E


Making the ConnectionMaking the Connectionw w w . h e y w o o d a s s o c i a t e s . c o m

If you have a successful track record in ExecutiveSearch and are ready to move on to your next challenge, you need the right support to help you identify opportunities that will not only make the best use of your talents, but willbring you the rewards you deserve.

At Heywood Associates, we have unrivalled experience in providing Executive Search toExecutive Search services to help fill the most influential positions in some of the best andhighly-rated consultancies in the world. Through a combination of professionalism, contactsand bespoke service, Heywood Associates will help you to find and secure the post that willenable you to achieve your full potential.

Our approach has won us some of the most important executive assignments in the industry,as the following selection of our current opportunities illustrates:

Principals - Technology, E & Media - London, Paris & Vienna - Salary £300,000 + bonus - OTE£1,100,000 stg. or local currency equivalentGreat principals, currently engaged in the leadership and direction of successful businessgroups in Technology, E &Media disciplines, are sought by a unique and exceptional firmat the very top of its profession. Will be working solely on FTSE 100 board-related work.

Leader - TMT (Technology, Media, Telecoms) - Paris - Salary 3,000,000 FF - OTE Strictly uponapplicationA firm with an exceptional reputation seeks an individual with the ability to lead its TMTbusiness within this key European market. A proven leader with a tactical, logical and strategicview and good linguistic abilities, is the key to success here.

Principal - Debt Capital Markets - London - Salary £250,000 + bonus - OTE £1,500,000This quality-driven institution that combines the gentility of traditional Executive Searchwith twenty-first century ethos, seeks to capitalise on its recent high profile and fiscallysuccessful engagements within the Financial Services arena.

Consultants - Debt Equity, Capital Markets & FTSE 250 Board - Tokyo - Salary £180,000 - £300,000+ bonus - OTE £800,000 - £3,500,000 paid in Yen - Schedule D from LondonDue to the increasing demand for and the popularity of Western head-hunters in Japan,one of Asia's finest Executive Search organisations is actively seeking three experienced,quality-driven consultants.

If you believe that any of the above positions would be right for you or if you would simply like to have a confidential discussion about career options, please call: MatthewSt. John Richardson on: 0207 404 4884 or email: [email protected]

Heywood Associates Limited 22 Theobalds Road, London WC1X 8PFTel: 020 7404 4884 Fax: 020 7404 4885 Email: [email protected]

Pammy Brooks Joins Ray & Berndtson asPartner in New YorkPammy Brooks has joined Ray & Berndtson as a Partnerin the firm's business and professional services practice.She will be based in New York and will concentrate ongrowing the firm's publishing/ new media practice whilecontinuing to focus on the e-business sector.Prior to joining Ray & Berndtson, Ms. Brooks as withNordeman & Grimm, a New York retained search firm whereshe specialized in both traditional and new media entities.There she was actively involved with management levelsearches with major publishing companies and Internetstart-ups.

David H. Charlson Appointed Senior ManagingDirector of Cornerstone International GroupCornerstone International Group, the human capitalconsortium, have appointed David H. Charlson as SeniorManaging Director of Executive Search who will be basedat their world headquarters in Los Angeles. Mr. Charlsonmost recently served as Managing Director for FosterPartners, an alliance firm of the 'Big 5' CPA and consultingorganization, KPMG-Peat Marwick Mitchell. He is also thefounder of Chestnut Hill International and a former ManagingDirector of Korn/Ferry International. Before foundingChestnut Hill, he was one of the founding partners ofRichard's Consultants, the first US executive search firm to beacquired by a publicly traded UK conglomerate.

TMP Worldwide Appoints Two Senior LegalRecruiters as PartnersTMP Worldwide Inc. has appointed Kristin Herbert andLatham Williams as Partners in the Executive SearchDivision. Ms. Herbert joins as a member of the Legal Searchand Professional Services Practice Groups and will be basedin San Francisco. She will focus on the recruitment of seniorlevel attorneys and executives for client throughoutCalifornia and the West Coast and will represent largenational law firms, prominent small firms and traditional andemerging companies in fulfilling their legal and executiverecruitment needs. Mr. Williams, based in the Chicago office,joins as a member of the Legal Search Practice Group, GlobalHealth Care Sector and the Global Insurance Practice Group.He will focus on recruiting senior executives for corporationsand law firms.Previously, Ms. Herbert owned Kristin Herbert Associates, aSan Francisco-based legal search-consulting firm, which shefounded in 1993. Before establishing her own firm, Ms.Herbert was associated with Los Angeles-based legalrecruiting firm for four years as a search consultant in bothits San Francisco and Los Angeles offices.Prior to joining TMP Worldwide, Mr. Williams was an equitypartner for seven years with the international law firmSidley & Austin specializing in health care mergers andacquisitions and managed care and other arrangements.Before joining Sidley, he was an associate, and later, equitypartner in Chicago-based law firm of Gardner, Carton &Douglas.

TMP Worldwide Appoints Two Senior LegalRecruiters as PartnersTMP Worldwide Inc. has appointed Kristin Herbert andLatham Williams as Partners in the Executive SearchDivision. Ms. Herbert joins as a member of the Legal Searchand Professional Services Practice Groups and will be basedin San Francisco. She will focus on the recruitment of seniorlevel attorneys and executives for client throughoutCalifornia and the West Coast and will represent largenational law firms, prominent small firms and traditional andemerging companies in fulfilling their legal and executiverecruitment needs. Mr. Williams, based in the Chicago office,joins as a member of the Legal Search Practice Group, GlobalHealth Care Sector and the Global Insurance Practice Group.He will focus on recruiting senior executives for corporationsand law firms.Previously, Ms. Herbert owned Kristin Herbert Associates, aSan Francisco-based legal search-consulting firm, which shefounded in 1993. Before establishing her own firm, Ms.Herbert was associated with Los Angeles-based legalrecruiting firm for four years as a search consultant in bothits San Francisco and Los Angeles offices.Prior to joining TMP Worldwide, Mr. Williams was an equitypartner for seven years with the international law firmSidley & Austin specializing in health care mergers andacquisitions and managed care and other arrangements.Before joining Sidley, he was an associate, and later, equitypartner in Chicago-based law firm of Gardner, Carton &Douglas.

Timothy R. Wujcik Joins Ray & Berndtson asPartner in ChicagoTimothy R. Wujcik has joined Ray & Berndtson, Inc., theinternational executive search and management-consulting firm as a Partner in the firm's business &professional services practice. He is also leading the firm'se-Business team. He is based in Chicago.Prior to joining Ray & Berndtson, Mr. Wujcik was senior vicepresident of divine interVentures, Inc., an Internet operatingcompany actively engaged in B-to-B commerce through anetwork of partner companies. Prior to his tenure with divineinterVentures, Inc., he was vice president and managingdirector of professional services for A.T. Kearney in Chicago.Mr. Wujcik began his career as a management consultantwith William M. Mercer.

New Head of Structured Finance and AssetSecuritization Practice at OPSISOPSIS Executive Search, a London-based investmentbanking search firm has named Mike Thomas as head ofits structured finance and asset securitization practice.Mr. Thomas was a former Hong Kong origination chief atNomura International PLC.

Icon Appoints David Simpson to Manage NewExecutive Search & Selection BusinessIcon, an international IT careers and contacts companybased in Victoria, Australia, have appointed DavidSimpson as a Manager for their new Icon ExecutiveSearch & Selection business. Mr. Simpson will be respon-sible for the development and growth of Icon Executivefollowed by a national expansion program. Currently basedin Melbourne, Mr. Simpson's career spans seven years withDrake International and more recently at Hallis.

Russell Reynolds Associates' Strategic Hires inDallasSteve Watson and Mike McCurdy, formerly Senior Partnerand Partner, respectively, of Heidrick & Struggles havejoined the Dallas office of Russell Reynolds Associates.Mr. Watson joins the firm as Managing Director and Mr.McCurdy as an Executive Director.Mr. Watson entered the executive recruiting business in 1995with Ray & Berndtson as a member of their TechnologyPractice, and was later named to its Board of Directors. Twoyears ago, Mr. Watson moved to Heidrick & Struggles wherehe has specialized in serving technology clients with aconcentration in telecommunications.Previously, Mr. McCurdy spent a year with Heidrick &Struggles. Before beginning his search career, he was theChief Operating Officer of Routech Inc., a developer of designsoftware for printed circuit boards and integrated circuits. Hehas also served as President and Chief Operating Officer ofCompuroute Inc. and General Manager of North Texas CircuitBoard Company.

Bennett Associates Hire Simon Chiu from TaoConsultantsBennett Associates, the largest independent search firmin Hong Kong, have recruited Simon Chiu from TaoConsultants. Mr. Chiu has been in the executive searchbusiness since 1995, when he was the Managing Director ofthe Hong Kong office of T.A.O. International. His searchexperience covers a diverse range of industries such asFMCG; Information Technology; Power & Energy;Petrochemicals; Pharmaceuticals and Financial Services.Previously, Mr. Chiu worked with Asian Business Groupssuch as Essar, C.P. Pokphand and Inchcape Pacific. He hasexperience in joint venture negotiations, industrial mergersand acquisitions as well as manufacturing managementexperience in China.Bennett Associates has also recruited Evelyn Foo as anAssociate. Evelyn joins the firm from Korn/FerryInternational.

Directorship Search Group announces appoint-mentsDirectorship Search Group, the firm created by themerger of Russell S. Reynolds JR Directorship Inc. andMichael Kelly Associates in March 1999 has promotedRichard D. Savior to Managing Director.Mr. Savior conducts searches for CEOs, CIOs/CTOs and e-business executives for clients ranging from global compa-nies to venture-backed start-ups. He will continue to headthe firm's Global Technology Practice out of its New York City

office."Rick Savior has made a tremendous contribution to ourfirm," said Mr. Reynolds, Directorship Search GroupChairman. "We congratulate Rick on his new appointment.His outstanding work is critical to the continuing rapidgrowth of Directorship."The firm has also announced that Bruno H. de Cintre is anew VP in the Paris office. Mr. de Cintre joins the firm fromhis role of Director, Corporate Communications and PublicAffairs for Bombardier Transportation. Meanwhile, J. MichaelCook, retired Chairman and CEO of Deloitte & Touche LLP hasaccepted an invitation to join the Advisory Board of the firm."Mike Cook brings extraordinary credentials to our AdvisoryBoard which helps guide the development of our firm andlends expertise to its work in executive search and corporategovernance," said Mr. Reynolds. The Directorship AdvisoryBoard includes directors and current and former CEOs andCOOs of Estée Lauder Companies, Ford, IBM, NorthwesternSteel & Wire, Texaco, Universal Health Services and TheWashington Post Company.

Odgers Ray & Berndtson Announce New HiresOdgers Ray & Berndtson has hired a number of newconsultants in order to maintain growth in key sectorteams. Joining the Financial Services Practice are DavidBarone, formerly of Marshall Warburton, specializing inEquities and Debt Markets, Jonathan Astbury from AstburyMarsden (where he was a founder member) specialising inAsset Management and mid-to-back office, and IngridGottschalk from Boyden specialising in investment bankingwith an emphasis on the Swiss and German markets.Also joining Odgers & Berndtson in the Technology Team areJustin Gilbert from PSD and Nicola Whiteman, formerly ofRobert Walters. Sue Shipley has joined the Consumer RetailIndustries' Team (CRI) from commerce, having workedlatterly with e-business start-ups and blue chip Plc's such asBoots and Kingfisher.

Rohde & Partner Name two New RecruitsRohde and Partner, the group with offices in Germany,France and Luxemburg has recruited two new partners.Werner Lexa joins the Munich team while Dr Wolfgang Gohlwill be based in Bad Homburg, on the outskirts of Frankfurt.The firm now boasts around 20 staff and completes around150 search and selection assignments per annum.

Sirca Executive Search Appoints Two NewPartnersSirca Executive Search, the French member of the IMDnetwork, has announced two new partners: Pascal Bohuand Philippe Duveau. Mr. Bohu has been in Search for 10years and also has experience in management assessmentand building executive teams for IT start-ups. Mr. Duveau hasexperience in the consumer, services and communicationsectors and works particularly within the Sales andMarketing Function. Sirca now have seven partners and 25members of staff.

Dr. Anthony Pfannkuche joins TMP fromSpencer StuartDr. Anthony Pfannkuche has joined TMP as a partner inits Los Angeles office. Mr. Pfannkuche joins TMP fromSpencer Stuart where he was a senior director.

TMP Recruit Chase as Paris PrincipleTMP Worldwide have appointed Jennifer Chase asPrincipal of the Paris office. Ms. Chase joins the firm fromKorn/Ferry in New York.

Three New Consultants at Tokyo ExecutiveSearchTokyo Executive Search Co, the Japanese member firm ofthe ITP network, has named three new consultants whohave joined the firm: Tetsuya Oiwa, Taro Hori and MotokoKawakami. They bring the number of consultants at the firmto nine.


Notify us of any new members to your

organization e-mail:

E-mail : [email protected]

S E A R C H - P R O F I L E


Dr. Jürgen Mülder, Chairman ofHeidrick & Struggles ExecutiveSearch has had a 33-year career

in executive search. He gained promi-nence as the head of Germany's mostsuccessful executive search firm whichlater became Heidrick & Struggles Mülder& Partner. He is part of Heidrick &Struggle's "four-man band," whichincludes John Thompson, John Viney andGerry Roche, concentrating on President,CEO, COO and Board of Directors' assign-ments for the firm worldwide.

Born in 1937 in Celle, NorthernGermany, Dr. Mülder workedas a miner prior to andduring his studies at theUniversity of Clausthal inNorthern Germany. Oncompletion of his Masters inMining Engineering, he opted to emigrateto the United States. "I started out inMinneapolis as a research assistant iniron ore processing, then moved toBerkley, California to work on projects forthe civil application of the nuclear bomb,"he says.

He later acquired a PhD in ComparitiveLaw and joined Euratom, the EuropeanAtomic Energy Commission based inBrussels. After some time at theCommission, he then went on to receivean MBA from Insead at Fontainebleau.

"After Insead, I had the intention ofpursuing a career in the atomic energyindustry. But then I met the people from

Spencer Stuart," he recalls. It was at thistime that Dr. Mülder found his calling inthe field of executive search and he joinedSpencer Stuart's Zurich office onSeptember 1, 1968 and subsequentlybecame its Managing Director.

"My professional life has been centeredaround executive search…I became andstill am an entrepreneur in the field," hesays candidly. However, in 1970, Dr.Mülder experienced a minor setback:"One of our competitors somehowmanaged to have my work permit takenaway from me," he recounts.

He was then transferred to Brussels tolaunch Spencer Stuart's Benelux opera-tions. Afterwards he was sent to rescuethe firm's Frankfurt office where he alsoserved as Managing Director and in turnoversaw the operations in other German-speaking countries ironically includingSwitzerland. Dr. Mülder summarizes hiscareer at the firm: "In the ten years that Ispent at Spencer Stuart, I became aPrincipal, then Partner and part of theteam who purchased shares from SpencerStuart himself."

At the end of 1977, he decided to breakaway. Together with four of hiscolleagues, he founded Mülder & Partner,

and launched the business on January 1,1978, eventually setting up six officesacross Germany. The firm rapidly becamethe number one executive search firm inGermany. Mülder & Partner joined theAmrop network in 1978 and was "instru-mental in developing it into becomingnumber five worldwide." Dr. Mülder washimself Chairman of Amrop on twooccasions "spearheading its globaliza-tion."

By 1996, Dr. Mülder was convinced thatAmrop needed to be integrated moreclosely to remain competitive. However,

senior colleagues in the Groupwere averse to these changes,as Amrop had originally plannedto merge with Heidrick &Struggles. "We had very privatediscussions with them back in

1996. The idea was to form a holdingcompany with Heidrick & Struggles andAmrop, then list on the stock exchange.Thereafter the holding company wouldpurchase each individual Amrop office."

"Unfortunately some Amrop colleaguesdid not want to follow this entrepre-neurial and strategic design. We werehoping to discuss alternatives and alsohad conversations with Spencer Stuartand Korn / Ferry," he adds.

However, persuading a large number ofindependent firms to merge with a majorcompetitor was not easy: "It was alreadyvery difficult to reach a consensusamongst 13 equal partners in Germany.

Chairman of

ExecutiveSearch

Heidrick & Struggles

Dr. Jürgen Mülder Profiled By Barbara Kwateng and Jan Iverson-Pearson, search-consult

“My professional life has been centeredaround executive search…I becameand still am an entrepreneur in the field”

S E A R C H - P R O F I L E


We even lost one partner along the way.Since then, however, some former Amroppartner firms have joined us, for example,our former colleagues JohannRedelinghuys & Partners in South Africa.We also have letters of intent from our ex-Finnish and Turkish colleagues," says Dr.Mülder.

In 1997, Mülder & Partner merged withHeidrick & Struggles, and Jürgen Mülder

became President of Heidrick & StrugglesInternational. When Heidrick & StrugglesInternational, Europe experiencedproblems with its American counterpart inthe mid-1980's, the solution was to dividethem into two business units with the USowning a third of the European opera-tions. On the departure of Gerard Clery-Melin, the two units were merged againand the firm was taken to the stockexchange. Dr. Mülder was made Presidentof EMEA region, a role he filled untilAugust 2000, succeeded by PiersMarmion.

As Chairman of Heidrick & StrugglesExecutive Search, Dr. Mülder takes on analmost non-executive role and handlesthe most senior searches. In relation tosearch assignments, he comments: "Herelies a slight divergence between us inEurope and our colleagues in the US. Wedon't talk about our searches. We feel thatour clients and candidates deserve fullprivacy despite the fact that an assign-

ment is finished". However, he does admitto placing a Frenchman at the helm ofGerman tobacco giant Reemtsma. Hecontinues: "The search methodologyhowever is almost identical [whencomparing US and European Heidrick &Struggles assignments]. We serve more orless the same clients on a global basis. Ifyou want to do this effectively, you haveto be sure that you're offering the samequality of service worldwide."

From his experience, it is much easier torecruit talent from overseas, for example,bringing back German nationals from theUS and Eastern Asia: "Fifty percent of allsearches involve looking for Germanspeakers overseas; the benefits of anintegrated firm speak for themselves. Welook throughout Europe for candidates foralmost any senior position in Germany. Inexceptional cases we search for candi-dates in Hong Kong, Tokyo or New York.Fifteen to twenty percent of our place-ments will result in someone coming fromoutside of Germany."

Throughout his career in executivesearch, he notes that one of the prevalentchanges has been the development ofpractices, moving away from the 'oldgeneralist approach'. The fee structurehas also transformed, "wetake one third of the initialannual salary as well as athird of the stock whichthe new CEO, for example,receives. We havesuccessfully built upequity and hold over 800warrants."

Today, Dr. Mülderbelieves the 'war fortalent' has attributed to a change instandards. Heidrick & Struggles engage in'parallel processing': "Today's talentdecides where it wants to go. A searchfirm would be foolish not to use parallelprocessing. If you play it very openly, itcan be very healthy, speeding up thesearch which is ultimately in the client'sinterests," he says. "Over the next five toten years, things are going to get evenwilder."

In addition to their executive search

practice, Dr. Mülder reveals that Heidrick& Struggles "will become Human CapitalConsultants helping to refine retentionstrategies for CEOs, providing advice andperforming recruitment projects." Headds, "We currently do ad hoc compensa-tion reviews, benchmarking studies andmanagement audits. Approximately fivepercent of our total business is non-search related. This will increase to, say,20 to 30 percent over the next few years."He also relays that "we are currentlylooking at acquisitions of non-traditionalsearch companies, for example, consul-tancies. This is in order to add value toour current executive search business."

Outside of work, Dr. Mülder is involvedin a number of humanitarian projects. Hefinances a school comprising of 200pupils in Northern Thailand on theBurmese border and is also involved in anAIDS center for young people there. He isalso a board member of a business initia-tive to help the starving in Africa and Asia(Stiftung Wirtschaft hilft Hungernden), hefounded the Board of Directors for theyoung German Philharmonic Orchestra(Junge Deutsche Philharmonie) and is aBoard Member of the Council of ChristianEntrepreneurs (Wirtschaftsrat der C.D.U.).

He served as Chairman of VDESB(Association of German Executive SearchConsultants) until 1997. Since 1998, hehas been the Chairman of the EuropeanAdvisors to the AESC. "I feel it's apersonal obligation. I believe that if you'relucky enough to get to this position in life,you should give something back to thecommunity.”

“Dr. Mülder reveals that Heidrick &Struggles “will become HumanCapital Consultants helping torefine retention strategies for CEOs,providing advice and performingrecruitment projects.””

Dr. Jürgen Mülder

S E A R C H - H E A D I N G


What a great year for executivesearch! Probably one of themost buoyant periods for our

business has occurred at a time whenmany were predicting the demise of this"old fashioned" service at the hands ofthe Internet.

Like all predictions, this one was madewithout the benefit of foresight andprobably without a careful analysis of theforces at work in the world economy.Apart from the trite and obvious forcessuch as globalization, increased competi-tiveness and the generic 'War for Talent,'other, less obvious, factors are having aprofound effect on executive mobility andthe criteria for the selection of talent.

We all recognize that old corporateloyalty traditions are a thing of the pastand that many executives can expect tomake multiple changes throughout theircareers. Add to the boiling pot: diversityissues, women in the workforce, thedesire for entrepreneurial opportunity,the breakdown of barriers betweenindustries and even professions; and forsome professionals, the disenchantmentof 'corporate life' and early retirement;and you create a number of catalysts.These drivers increase mobility, allowgreater integration of potentiallycompeting cultures and more choiceamong employees and employers,

S E A R C H - C O M M E N T


Riding the WaveBy Peter Felix, President, AESC

resulting in great social and economicchange.

However, these changes are advanta-geous for the executive search business.As more choices are available to theexecutive search market as a whole,consulting services will become moreimperative. Comparative experience fromconsultants whose strengths are inanalysis and synthesis is invaluable andmakes high-quality executive search oneof the most powerful consulting toolsavailable to modern management.

We are now in 'a knowledge society'.'Brainpower' is the key resource for mostbusinesses. The corporate winners willbe those who select the best 'brainpower'and apply that talent in the most creativeways. How to recruit and select suchtalent are crucial strategic issues and arebecoming the primary objectives of CEOs.

Retained executive search is not the onlyway to recruit, but at senior levels itmakes sense to give this intricate, criticalprocess your 'best shot'. Any method thatwill increase the corporation's odds ofmaking the right decision for crucialappointments has to be in everyone'sinterest - the consequences are just toogreat.

Nevertheless, executive search is notan exact science and regrettably, manyexecutive search consultants are lessthan professional in their approach to thisstressful but impactful business. It is tooeasy to cut corners. It is too easy to dismissresponsibility and to abdicate ownershipof the recruiting process to the client.

This is why the Association ofExecutive Search Consultants (AESC) isadamant in its mission to help set

standards for retained executive searchand to train and develop professionals inthe business. The AESC has served theretained executive search profession formore than 40 years. We are now rapidlyexpanding our services worldwide.Currently, our professional developmentprograms operate in both the UnitedStates and Europe.

We provide regular forums for searchprofessionals to meet and learn about thedevelopment of the profession fromclients, industry observers and from eachother. Our professional journal, ExecutiveTalent, provides in-depth coverage ofleading issues in senior human capitalmanagement. Our latest internet-basedservice, BlueSteps, is a free research toolwhich offers clients an opportunity toidentify quality search firms while ourcandidate profile bank provides seniorexecutives access to each other and ourmember firms.

The AESC's membership criteria arestringent and these are rigorouslyapplied. We believe it will not be longbefore clients, as they begin to under-stand our criteria for admission, willthemselves demand that executive searchfirms with whom they deal with shouldbelong to the AESC.


For further information on the AESC

and its services contact Peter Felix,

President AESC:

E-mail : [email protected] : www.aesc.org

Leading the market in the quest for senior executives for

Search firms across the globe

www.jcr.co.uk

Crosthwaite & Lilley Ð part of the JCR Group

Peter Felix

S E A R C H - F E A T U R E




A re you familiar with the terms,'MAV', 'e-maHc', 'ICCJ'? Theseacronyms and initialisms are

becoming part of the universal languagein the world of executive search. Searchfirms are evolving into what some aredescribing as 'human capitalconsultancies.' As the 'war for talent'rages on, companies are starting to lookinwards and are seeking independent,professional, accredited tools to accesstheir organization's assets: financial,tangible and now, human. In a fickleclimate of economic fluctuation andcompetitive innovation, the mostimportant asset to differentiate acompany from the rest, is its leadershipcapital and understanding how thatleadership capital is linked to thestrategic objectives of the company.Organizations are increasingly turning toexecutive search firms to achieve this.

Yet, consulting or 'managementassessment' is not a new concept amongsearch firms. Last year Korn/FerryInternational expanded its "ManagementAssessment" service, available in Europefor almost a decade, to North and SouthAmerica, and to the Asia / Pacific region.Whitehead Mann Pendleton James nowoffers a "Management Asset Valuation"

service in the US; its parent firm,Whitehead Mann GKR, has long providedthe service in Europe. Egon ZehnderInternational has a "ManagementAppraisal Group" and claims to havepioneered the service while RussellReynolds is a newcomer to the foray,having launched its "ManagementAssessment Practice" in October 2000. Inthe same month, Heidrick & Strugglesexpanded its "Management AppraisalService" globally, also known as"Heidrick & Struggles StrategicLeadership Review".

In general terms, managementassessment enables senior corporateleadership to evaluate the individual andcollective performances of theirmanagement teams, particularly, in timesof transition, such as:

■ Change in company strategy■ Merger or acquisition■ Privatization■ Changes in subsidiary and

headquarter relationships■ Internal restructuring■ Succession planning■ Establishing a new subsidiary or

business unit■ Starting a new venture going public

we can build on that trust by providingguidance in the evaluation of thepotential of their management teams."Gerard Clery-Melin, Chief ExecutiveOfficer at Whitehead Mann GKR,comments, "What it really means isserving clients at the highest level…wedon't believe that recruiting is the onlysolution they should have."

Windle B. Priem, Korn/Ferry's Presidentand Chief Executive Officer, explains,"This service is in direct response to ourclients, who are asking us to help themfulfil their human capital needs at alllevels within the organization." PeterDrucker of Krakower Group Inc., amanagement consultancy and executiveresource firm based in California put itsimply, "There can be no communicationif it is conceived as going from the 'I' tothe 'thou'. Communication works onlyfrom one member of us to another."

Another advantage of offeringmanagement-evaluation services is that,sold at senior levels, it can be a valuablemarketing tool. David Kidd, GlobalPractice Head of ManagementAssessment at Egon Zehnder, explains, "Ithas become a major part of what we doworldwide. Basically, we started it andpioneered it. We had to undertake a hugetransformation, a massive marketing andPR effort. We talked to many people,some embarked, some didn't…and now itis recognised as a viable business. Withinthe last four years, we have conductedmore than 300 projects and appraisedmore than 10,000 people - there aren'tmany others who could say that."

The management assessment processis in constant development, havingbegun its journey over a decade ago.Managers are assessed under a numberof criteria, including their fit with the firmand how they compare with what isavailable in the marketplace. Data ismeasured in various ways with somesearch firms adopting a 'threedimensional' perspective. This involvesdata being measured against outsidelicensed databases and other frameworkssuch as psychometric testing and on-sitepsychologists.

executive is under a great deal ofpressure to perform in the first few weeksof tenure."

"We can help the client companyassess the effectiveness of its team inimplementing strategic objectives or theteam's ability to perform in a changingenvironment. We can design the programfor the organization's unique goals,values and strategic objectives. We caneven explore the potential of a 'virtual'team encompassing executives indifferent locations and divisions. Ourclient can, therefore, not only assess thecurrent leadership capital, but can alsoexplore the impact and dynamics ofdifferent teams that have not yet workedtogether."

Founded in 1998, Virtual CEO Inc., inSan Juan Capistrano, California, hastaken this concept one step further. Theprivately held company provides web-based performance managementsoftware. Stephen McDaniel, VirtualCEO's Executive Vice President, explainsthe process, "Management and /oremployees at a company, using a CD-Rom or by logging onto our website ,engage in an interactive exercise withthe Virtual CEO application. The data isthen aggregated and detailed graphicaland statistical reports on the company'sperformance are produced."

The program enables performance tobe measured over 189 best practice datapoints tied to 41 key business disciplines.Mr. McDaniel adds, "It’s truly anassessment using reliable, statistical andanalytical models." Virtual CEO claims thesystem dramatically reduces the time toidentify needs, develop solutions andcreate and implement action plans:"Executives can assess the performanceof their entire organization in just a fewhours." With action planning sessionsreduced "to as little as one day."

Mr. McDaniel was quick to point outthat, "Virtual CEO can work in anycompany within any industry and doesn'tnecessarily have to be linked withstrategic planning. The key component isthat any number of people can

"This service is in directresponse to our clients,who are asking us to helpthem fulfil their humancapital needs at all levels within the organization."

heavenA marriage made in

Search & Management Appraisal

Marc Swaels

Stephen McDaniel

Korn/Ferry has long offered an 'ICCJGlobal Profile,' which refers to keycompetencies in research. According toMarc Swaels, Managing Vice Presidentand Head of Korn/Ferry's ManagementAssessment Practice in Europe, "Theseare applicable across different culturesworldwide…it is registered and patentedand is supported by a complete IT systemwhich is internet activated." The 'I' standsfor all competencies that are related toinitiative and drive. The first letter 'C'represents organisational competenciesand the latter signifies compatibility,referring to emotional intelligence with 'J'for judgement, assessing businessunderstanding and common sense.

However, this is only one piece of thepie. He continues, "With our managementassessment offering, the chief executiveof a newly structured organization canassess the strengths of the globalleadership team in a matter of days. Thedemand for rapid transformation,competitive advantage and short-termshareholder value means that a chief

continued>

But why are companies turning tosearch firms to provide this service?Trevor Foster Black, a Partner at TMPWorldwide's London office, onceexplained that: "Consultancy's popularityis due to clients’ awareness that searchconsultants have valuable insights. Wecan provide a clear view of thecompetitive landscape." Thomas J. Friel,President of Heidrick & StrugglesVentures, says, "These executives trustour counsel on their career decisions and

By Jan Iverson-Pearson, search-consult



participate," as the service is accessible24 hours a day and from any locationproviding there is a computer withInternet access.

"One of our largest client's majorendeavour is in search and they use theprogram in the consultancy aspect oftheir business. Virtual CEO is already inuse in Sweden, France and Canada andwe also have a client in the UK."

Ron Malone, a Consultant at Primaxx, aconsulting firm based in Texas, commentson the concept behind Virtual CEO,"….with respect to Top Tier and the BigFive firms, clients are growing tired of theendless assessments on a journey tonowhere. When you think that a nichepractice can now bring the same qualitydiagnostic to a client over the course of acouple of weeks with just twohours of the executive's time -that's powerful."

At TMP Worldwide, Mr.Black, helped devise, 'e-maHc': European mappingand acquisition of HumanCapital. He says, "No one elseis doing this at the moment," and detailsof the scheme remain confidential. AtCifuentes & Partners, a member of theAccord Group, based in Madrid andBarcelona, they have designed twomethodologies to coincide with itsmanagement assessments.

Fernando Chávarri, a Partner based inthe Madrid office and a Professor at thePolytechnical University of Madrid,explains: "Our management assessmentis different as it is based on our ownmodel and our own factors and processesthat we have developed; the model is asynthesis of many models that we'veconstructed ourselves. The process ismore comprehensive and complete. It'snot just interviews and questionnaires.We look at the results of case studies anduse formal presentations and groupdynamics. We also have two differentmodels: one is used to evaluate thedirective capacities of senior teams…andthe other is used for assessing thepotential of junior executives for futureleadership."

The global launch of Heidrick &Struggles Strategic Leadership Reviewfollows the success of the business inEurope, where a Heidrick & Strugglesteam developed and refined themethodology and the process ofmanagement appraisal. A hallmark of theservice is "the structured interview"which is conducted by a Heidrick &Struggles management appraisalspecialist working in tandem with asearch consultant who has directexperience with the client's industry andgeographic region.

"The interview is part of one process.In the teams, search consultants haveexpertise in the functions involved withinindustry on a senior level. It's basically abenchmark approach; a lot of data is

created and is compared against themarketplace and the experience of theconsultants, linked to a competencymodel," says Dr. Thomas Kell, Head ofManagement Assessment in Europe atHeidrick & Struggles based in Munich.

He continues: "A lot of research andstatistics are behind the competencymodel and with each project you'realways adding new data. But findings arenot only about people. It's also aboutgeneral impressions, structure of specificteams…and other areas that are ofinterest to the CEO."

Dr. Kell also explained that themanagement appraisal specialists aresearch consultants who have had "on thejob" training as well as further in-housetraining and specialise in interviewingtechniques. They are certified by Heidrick& Struggles once their training issuccessfully completed. "Executive searchconsultants are unique as they can offertheir in-depth knowledge of the wholespectrum of a marketplace. Thespecialists are analytical in their mindsets

compared to trained psychologists whomay not have the opportunity to create abenchmark view."

Commenting on the global launch ofthe service, Dr. Kell added, "Many of thedatabases you can buy are focused onregional data and are cultural specific.Our strength is that we are integratingthe cultures in a global way. If it's a globalproject, for example, we bring in a teamof partners from the States and Europeand other regions, so it's 'inter-cultural' inthe view of the observers, so thisapproach is very valuable in thatrespect."

The assessment is presented in anumber of different report styles. Hestressed that this is done "very quickly"once the information has been analysed.

In reference to applyingassessments on-line, hebelieved that it's "not reallyabout the Internet, it's aboutreporting and explaining thefindings." This takes place as aresult of a series of meetings.Other aspects of the

Management Appraisal service arecoaching and career advice.

It appears that managementassessment is growing in importance. Inthe opinion of some search firms,globalisation, privatisation and talentscarcity seem to be the reasons for thelatest 'boom' in the rise and expansion ofmanagement assessment services. Asconsultancies grow and becomeincreasingly independent, search firmsmay ultimately become what Mr. Clery-Melin describes as "a human capitalconsultancy where search is only acomponent." Only time will tell.

“A lot of research and statistics arebehind the competency model and witheach project, you're always adding newdata.”


E-mail your comments to:

Email: [email protected]@search-consult.com



Churchill Management Centre, The Guildhall, Lichfield Road, Sutton Coldfield, West Midlands, B74 2NJ.

Tel:0121 321 1001. Fax:0121 321 2271. Email:[email protected]

CHURCHILLSearch & Selection

SEARCH MANAGER - £High BasicDirector Designate, Equity Options

100% Bonus + Car + Private Medical + Gym/Leisure/Golf Membership/Premier Box at Aston Villa

You will be responsible for working as either a Senior Consultant or Manager now looking to make the next step in yourcareer. As a Manager you will be totally responsible for building and directing a team of Consultants. You will have an excel-

lent track record of achievement within recruitment consultancy, ideally from one of the above markets. You will possessexcellent sales, negotiation skills and also be a strong team player.

If you are an experienced Recruitment Consultant and would like to take the next step up, we will train you in all aspects ofSearch & Selection /Headhunting Techniques and Man-Management.

Experienced Managers/Consultants only may telephone on either 01562 752828, 01543 450752 or 0121 352 1347 weekdays between 7.00 pm – 9.30 pm. Weekends – anytime before 7.00 pm. Ref: SM/D

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Churchill Search & Selection is a young and fiercely competitive recruitment company, underpinned with integrity andconfidence. We know that to demand the best of the best, we must offer people two crucial attractions. 1. The ability to make a huge, direct impact on the business from day one. 2. The rewards they deserve.

As an established Executive Search Consultancy with an unprecedented demand for our services, our client base includesFMCG companies such as Kelloggs, McVities, Bass PLC, Nestle, KPMG and leading edge IT Companies such as Cap

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Wedemandthe best from the best

S E A R C H - S T R A T E G Y


Behind theThe Story

MergerThe Amrop Hever Group

Profile

Ant

hony

Sax

ton

Anthony Saxton began his career in marketing, working in the

toiletries and consumer durables industries. He then moved into

advertising and was involved in the turn-around of three agencies.

He was responsible for the London office of John Stork and

Partners and helped build up the business to become the fourth

largest search firm in the UK.

He founded Saxton Bampfylde

in 1986 with Stephen

Bampfylde. His clients include

Kingfisher, Guinness, Asda and

PepsiCo and placements

include Marjorie Scardino at

Pearson PLC. Mr. Saxton is

Co-Chairman of The Hever

Amrop Group, and European

Chair of the Association of

Executive Search Consultants.

He plans to retire in the

summer.

T he year 2000 will be rememberedfor the number of acquisitions within the executive search

industry. TMP, Heidrick and Struggles andKorn/Ferry International, all made signif-icant purchases which made the frontpages of the financial and business press.While the media was caught up inmerger-mayhem, a number of changeswere taking place within the searchnetworks.

International search is made up of boththe integrated firm and the 'networks';independent firms which operate under asingle banner with greater or lesserdegrees of integration. Perhaps the mostsignificant change within the searchnetworks was the alliance betweenAmrop International and the HeverGroup. Anthony Saxton, Co-Chair of TheAmrop Hever Group talks about thecircumstances behind the merger and theoutlook for the newly enlarged group.

The merger of the two groups tookplace over a period of six months, fromFebruary to June 2000. To understand theunderlying reasons behind the alliance, it

By Jason Starr and Jan Iverson-Pearson, search-consult



continued>

is essential to take a brief look at thehistory of the two networks.

In 1987, Saxton Bampfylde a UK-basedsearch firm and Delta ManagementConsultants, a consultancy in Germany,founded the Hever Group. The introduc-tion of the two companies came aboutthrough extraordinary circumstance. Inan interview with an English candidate,a consultant from Delta mentioned thatthey were seeking a partner-company inthe UK. In the weekprior, the candidatehad been inter-viewed by what wasthen a still embryonicSaxton Bampfyldeand on hearing thisnews, he recom-mended that the twofirms get together.

The partnershipbecame a networkand continued togrow. It was alwayson the lookout forfirms with similarvalues, so much sothat, by the time ofthe merger, the HeverGroup boastedtwelve member firmsp r e d o m i n a t e l ylocated in the moredeveloped searchcountries.

At this stage, Amrop made its firstapproach to Hever. However, this wasrebutted due to blocking issues in anumber of countries where the two firmswere competitive: Delta and Mülder inGermany, Saxton Bampfylde andWhitehead Mann in the UK and so on.Nevertheless, the integrated firms beganto embark on IPOs and these blockssuddenly began to disappear. AmropAustralia joined Korn/Ferry; TMC Amrop inMilan and Lamalie in the US were takenover by TMP; Mülder in Germany wereconsumed by Heidrick & Struggles andWhitehead Mann also went the IPO route.

There was a sound logic behind themerger. Whilst the majority of Hever's

main offices were located in major searchcities, Amrop had extra offices in morediverse parts of the world. In the wake ofthe IPOs, countries left without Amroprepresentation were primarily in areaswhere Hever already had a strongpresence. It was against this backdropthat the Hever Group, having rejectedearlier advances, decided to begin talks.

Anthony Saxton explains: "There werethree reasons why we were attracted.

Firstly, shared values; shared valuesabout ethics, shared values about theclient coming first, crucially, sharedvalues about the importance of goodresearch and above all, the belief thathaving a group of independent yet inter-dependent entrepreneurial firms, in ourview, gives the client a better deal."

"Secondly, our members in industrialcountries such as Germany and the U.S.A.were increasingly being asked to help inthe so-called 'developing' countries. For

example, our German member, Delta, ishuge in automotives, so is CompassGroup, our members in Detroit; both thesefirms’ clients wanted help in, forinstance, Brazil, Thailand and South Korea.If you are client driven, you have torespond to that."

"The third reason is that the world ischanging very fast and the wholeconcept of developed and undevelopedeconomies is disappearing. Who would

have thought that Indiawould be so successful? Itis becoming a worldheadquarters for softwaredevelopment. Technology,hygiene and air-condi-tioning are making theworld much more of alevel playing field and Ithink it is very unwise forany professional servicesfirm to limit itself to justthe so-called 'developed'countries."

As negotiationsbetween Hever andAmrop continued throughthe spring, Mr. Saxtonpersonally visited 20different countries overthe course of four months.He recounts the mood atthat time: "We discoveredthat we had a lot in

common…we shared an awful lot offundamental values..." This was particu-larly true in the case of Seeliger y Conde,the biggest search firm in Spain. BothAnthony Saxton and Stephen Bampfyldehave strong religious beliefs and foundthat Louis Conde, who is now Co-Chair ofthe combined business, was an equallycommitted Christian.

Whilst the IPO rage removed a numberof blockage issues, there were stillconflicts of interest in some countries.Spain, for instance had Seeliger y Condeunder the Amrop team on the one handand Referral Partners, long standingmembers of Hever, on the other.Fortunately, in this case, the two firms

"We discovered that we had a lot in common…we shared an awful lot of

fundamental values…"





were happy to work alongside eachother. "The two firms are friends; matesand they are happy to live in happysymbiosis," declares Mr. Saxton.

Sadly, in other areas, it was felt thatthis would not be possible. Hevermembers were lost in both theNetherlands and Hong Kong, although agood relationship still exists. "They areboth smashing firms," says Mr. Saxton.

"Everywhere else, people have beenable to work something out. When youthink we are talking of 50-odd countries,it’s quite remarkable," he adds.

As spring drew to a close, five repre-sentatives were nominated from eachgroup to attend meetings in Barcelonaand Petersham. Tremendous progresswas made and an accord was reached. InJune, a UK meeting representing allmembers of both parties effectivelyratified the union unanimously.

Today, the integration of the twobusinesses continues. A new, integratedwebsite is being developed under thedirection of Sam Wan in Amrop's HongKong office and the new group logo isbeing finalized by a design team inDenmark. In November 2000, a manage-ment meeting in Berlin saw a number oftentative agreements reached on succes-sion, in light of Mr. Saxton's plannedretirement in the summer.

With the integration now complete,how would the new group operate? Mr.Saxton reveals some of their workingpractices.

A claim often made by integrated firmsis that it is impossible for 'looselynetworked groups' to offer the same levelof service as a 'wholly owned firm' onany international assignments. Mr.Saxton disputes this forcefully. He sharesa complaint made by a client, who, afterusing the services of a high-profile globalsearch firm, reports: "Typically, 70percent of the candidates are from the

same country as the consultant runningthe assignment". He compares this with arecent assignment at Saxton Bampfyldefor a major investment bank where,working in conjunction with overseaspartners, the shortlist of candidatesincluded nationals from Germany,Australia, China, UK, USA, Ireland and Japan.

He believes that the independencewithin Amrop Hever on internationalsearches offers a flexibility that the'wholly owned' firms cannot match.There are no fixed rules for 'fee-splits'between offices and it is not uncommonfor research to be done by one office foranother for no fee at all. Mr. Saxton alsoclaims that integrated firms, often withprofit centers and quarterly earningstargets, cannot offer these types of 'favors'.

"Every international assignment is ahandcrafted piece of work and theemphasis on global searches vary and thecountries covered vary in their complexityand importance and cost. Very often, wewill split the work between the compa-nies involved or just do favors … it's verydifficult to do that if you have to accountevery penny to a New York headquar-

ters," explains Mr. Saxton.Mr. Saxton speaks passionately about

how employees, consultants andresearchers in his firm and The AmropHever Group are rewarded for quality ofperformance rather than selling. "It isvery easy to sell an executive searchservice. It is far harder to do the work.Therefore, we think it is silly to rewardpeople more for the easiest part of

what we do."To emphasize this point further, he

quotes the Chairman of Goldman Sachs;"Long-term greed!" His interpretation:helping a partner today may cost today,but will reap dividends in the long term."Altruism pays like nothing else I know!"Mr. Saxton exclaims.

The rewards, he adds, have not allbeen financial. "One of the things thathas been rewarding for us is that wehave a whole series of new mates! Iknow that's not the purpose but while weare doing so much cross-border businesswith each other, we are also getting verywell rewarded in what the Americans call'psychic wages'!"

Today, The Hever Amrop Group is trulyinternational with a strong position innumerous markets. Within a space of sixmonths, two separate groups ofindependent businesses have beensuccessfully merged into one brand.Whilst the finer details of the move arestill being determined, the benefits arealready apparent. On the day of thisinterview, Saxton had just received thego-ahead for an international generalmanagement Asia-Pacific assignmentwhich would require the local knowledgeand help of his new Thai partner inBangkok - a bona fide example of inter-national executive search.

Visit the subscribers area on the search-consult.com website for further information on The HeverAmrop Group.

“Very often, we will splitthe work between the companies involved orjust do favors … it's verydifficult to do that if youhave to account everypenny to a New York headquarters...”


Visit the subscribers area on the

search-consult.com website for further

information on The Hever Amrop Group.

Email: [email protected]@search-consult.com

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S E A R C H - F I N A N C E


S E A R C H - D I A R Y


November 2000Stockholm, Sweden

HEADLIGHT INTERNATIONAL launches inStockholm. Founded by Peter Gullström,Managing Partner, Headlight International isa generalist retained executive searchboutique and will focus on assignmentswithin the Scandinavian region. In thisedition he reveals his reasons for starting thebusiness and the objectives of the company.Throughout the year we will bring youperiodic reports on how the company isprogressing.

I decided to launch my own executivesearch business for several reasons. As aconsultant, although you are working for alarge firm, clients associate you, theindividual, with an assignment and oftentimes a long-lasting relationship develops.Consultants invest in their 'own' name; buildup a reputable portfolio of assignments. Thisis why I feel that you will always have anoption to start your own business. Of course,when you step away from these large firms,you need to know that there is a marketthere for you.

I surveyed other search consultants,candidates and past clients to discover whatthey expected from each relationship andtheir views on current working practices.Taking on board my own personal experi-ences from my ten years in executive searchand through my investigations, I found thatthere was a strong market for anotherexecutive search boutique in Scandinavia,but one that would 'go against the grain.

The Company PhilosophyMy ambition is to establish a firm that

delivers the same kind of service as the'established players,’ but in doing so, I willtry to avoid the 'internal frustration' that is socommon among search staff. I stronglybelieve that 'harmony' within the workplacewill quickly translate into better quality of

A Year in the Life of Headlight International

An Executive Search 'Start-Up'

work and higher profitability in the long run.Executive search firms, no matter how

successful they are in managementconsulting, are often less successful in imple-menting these principles into their ownworking environments causing disharmony'amongst the ranks'. There is a dividebetween search consultants andresearchers, with the researcher turnoverrate over the last decade at an all time high.Historically, few firms have dealt with this'brain-drain' effectively. The current industrytrend however, where large search firms arecontinuously expanding 'vertically' and intonew fields, has created an opportunity tocreate a better career path for theirresearchers and junior consultants.

I feel that the attraction to the professionis diminishing as search consultants areunder constant pressure to increase 'billing'and that the role itself is being undermined.As a consultant within the search process,you can no longer afford to spend a greatdeal of time on 'quality control' and need todelegate your tasks in order to get a balancein your workload. If reaching a financialtarget is your primary focus, corners maystart to be cut. This practice may suit manyconsultants, but there are others like myself,who have other priorities. I consider thisway of working almost 'self-destructive' with"the sense of craftsmanship slowly disap-pearing."

In view of these current market conditions,I have adopted a working ethos that I feelwill reap high returns, not just financially butalso in terms of employee job satisfactionand developing a solid reputationthroughout the search world. I will employ asmall team and will continue to keepemployee levels low.

The consultants will handle all candidatecalls, taking control over the projects fromthe start in a similar vein to the way inwhich Russell Reynolds Associates and EgonZehnder International operate. To ensure afast, efficient high-quality service, consult-ants will work with only two 'parallel-active'assignments at any one time. This mayallow them to be more focused, performbetter and have a balanced working life.The researchers will only work with "desk"research. They will be mature professionalsin contrast to 'career-driven' graduates thatleave too soon.

My objective is not to 'roll out' an interna-tional organization within twelve months,but to develop an informal 'network' withother search consultants to whom we canrefer our clients. They can be independentor with established local or internationalfirms, in various countries, as long as theyshare the same values and have establisheda reputable name for themselves withintheir industry of expertise. I will discuss thisfurther in 'Part Two.'

Year 2001• Will we manage to hire the best search

consultants?• Will the clients receive this venture or will

"big still be beautiful?"• Will we share the same basic problems of

other executive search 'start-ups'?• Will candidates and clients really see a

difference?• Will we have as much fun as we hope to

have?• Will we be able to take out a salary?

In 1971, H. Neumann International laidits foundations in Vienna, Austria, andnow covers the globe through its

strategic alliances of 80 offices throughoutWestern, Central and Eastern Europe, LatinAmerica and Asia Far East. The firm isdescribed as a 'hybrid organization.' All of itsContinental European offices are H.Neumann International owned subsidiaries.Its network encompasses 460 professionalsthat include 270 executive search consult-ants. Once listed on the Vienna StockExchange, the firm is now a privatecompany with the majority of the firmowned by the company's partners. Based inParis, Daniel Grenon, President of theNeumann Group, talks about the firm's plansto enter the UK search market and to expandtheir ventures in the US, as well as hisoutlook on their current European opera-tions.

"Today, we are the last independent,large executive search firm left in Europe.At the moment our main Europeanemphasis is on Western Europe: Austria,Benelux, Germany, Italy, Spain,Switzerland and France and our intentionis to also be present in the UK," says Mr.Grenon. The expansion into the UK is ahigh priority for the firm, and according toprofessional statistics, the UK has thelargest share of the Western Europeanmarket, with a 24 percent market share.

He adds: "The UK and Germany are thetwo main markets in Europe. Germany isnow in close competition with the UK,with a 23 percent market share, Francefollows with 17 percent, Spain has eightpercent and Italy seven percent."

"Over the years we have had variouspartners in the UK and now we want ourown firm. We have two choices: eitherwe start a business 'from scratch' or we

go through a merger/ acquisition process.As there are still a good number ofindependent private executive searchfirms in the UK, I think the latter isprobably what will happen. We arecurrently in active talks with a UK consul-tancy, details of which are confidential atthis time but we hope a new venture willmaterialize in the near future."

H. Neumann International began itsmove into the US in 1999, when it took

on DHR as its partner, an executivesearch firm based in Chicago. Hedescribes their relationship: "DHR areranked sixth in the US search market andare a very strong partner for us withinthat market. In the future, we look to havea shared name but for the time being, wehave common clients and 'cross-partici-pation' within each of our practices." TheUS links to the UK, particularly in "thefinancial services sector," are also a keyfactor to Neumann's interest for growth inthese countries.

Part of the firm's prime objective in itsgrowth strategy is to recruit localnationals. "If you are not in the country,you don't know what's happening," saysMr. Grenon. "In some countries, at acertain level, everybody knows every-body and if you're not a part of thatcommunity, you will lose out. This inter-cultural understanding is vital - it wouldbe too expensive otherwise. Of course,there will always be some exceptions."

H. Neumann International was oncelinked with GKR, now Whitehead MannGKR, but relations were "terminated" fouryears ago: "We had a good partnershipbut at the time of the split we werefollowing different strategies and wereno longer compatible. We still think theyare a fantastic firm. The profession is likea village and we still communicate witheach other."

Mr. Grenon stressed that the company'saim was "not to be the biggest" but toascertain a "highly quality, reputable,stable organization." "People stay in theNeumann organization a long time," hesays and is quick to point out that this isa true reflection on the firm's commitmentto quality. The company reports that as awhole they have more than 3,300assignments annually worldwide withthree quarters of its executive searchesbeing repeat business. He reports: "Wehave a worldwide revenue of (US)$140million," and "the potential for growth isstill huge."

By Peter Gullström, Founder & Managing Partner, Headlight International

Peter Gullström

Daniel Grenon

H.NeumannInternational


S E A R C H - B U S I N E S S


S E A R C H - B U S I N E S S


match the position to be filled.4. The data controller is required to

implement appropriate technical andorganizational measures to protectpersonal data against accidental destruc-tion, or alteration, and all forms ofunlawful processing including unautho-rised disclosure or access, especiallywhere the data processing involves thetransmission of data via a network.

Applied to the executive searchindustry, there is a requirement to takemeasures to secure the storage of datausing passwords, for instance.

4.Directive 95/46 states that personaldata should be kept in a form whichpermits identification of individuals for nolonger than necessary in view of thepurposes of the processing.

It is common for executives to bepresented to different clients over aperiod of time before being successful.This naturally implies that executivesearch businesses update their databaseon a regular basis and that they deletedata which is no longer accurate.

The EU Directive also grants a range ofrights to data subjects [executives]:

1. Personal data can, in principle, onlybe processed if the executive has givenunambiguous consent for his/her data tobe processed specifically for recruitmentpurposes, implying that data may betransferred to other offices within theexecutive search firm. This also meansthat personal data will only be disclosedto clients with the executive's priorconsent.

2.Executive search firms must grant tothe executive a right of access to his/herpersonal data file as well as a right toamend his/her data if incomplete oroutdated.

3.Executive search firms must respectthe executive's wish to no longer becontacted if he/she requires it.

4.The Directive foresees that sensitivedata, related to ethnic origin, politicalbeliefs, health or sexual life, can inprinciple only be processed with theexplicit consent of the data subject.

The EU Directive on data protectionalso encourages trade associations to

draft and submit their European industryCodes of Conduct to the relevant EUauthority for approval. This is to ensurethat they conform to EU standards.

In the executive search industry, theAESC Europe, the European branch of theworldwide Association of ExecutiveSearch Consultants, has been very activeover the last two years in developing aself-regulating 'Draft Code of Conduct' toallow its European members to complywith the EU Directive on a consistentbasis throughout the EU, while takinginto account the specifics of the executivesearch profession. The AESC Europe'Draft Code of Conduct' was formallysubmitted to the EU Commission in early2000 and is currently under review by

the EU.The Directive's provisions on personal

data flow to non-EU countries also affectthe executive search profession.Executives are increasingly moving fromone continent to another, as most execu-tive search firms operate internationallywith offices in different parts of theworld.

According to EU legislation, personaldata should only be transferred to non-EU countries which ensure an adequatelevel of protection. However, there willalways be exceptions. For instance, datacan be transferred to a third-party, which

may be a country where there are nosatisfactory guarantees on data protec-tion, if the data subject [the executive]has given consent for his personal data tobe "exported" outside the EU to thatspecific country.

In the summer of 1999, the EU and theUS reached an agreement; the 'SafeHarbour Privacy Agreement.' Prior to theagreement, there was a 'grey' area wherethe EU were unsure whether the US metthe European protection safeguards. The'Safe Harbour Privacy Agreement' wasdesigned to ensure adequate protectionof personal data transferred from the EUto the US in order to comply with therequirements of the European Directive. Itprovides for a 'Safe Harbour' whereby USusers of European data agree on a volun-tary basis to register with the USDepartment of Commerce that they willadhere to the European legislation ondata protection. In other words, UScompanies importing EU data agree toapply the following principles: notice,choice, security, data integrity, access torecords and enforcement guarantees.

The development of the AESC EuropeCode of Conduct was in line with the EU/US 'Safe Harbour' meetings. Provided it isaccepted by the EU, the AESC EuropeCode of Conduct should remove allambiguity from any issues surroundingthe 'Safe Harbour Agreement' and providemore stability for the executive searchprofession since it allows data to betransferred outside the EU with thecandidate's consent and ensuresadequate protection of the handling ofpersonal data.

For more information, visit the EU Formore information visit the websitehttp://www.Europe.eu.int/comm./internal_market/media/dataprot or contact Mrs.Brigitte Briche at the AESC Europe:[email protected]

long-term relationships with execu-tives for recruitment purposes and it isgeneral practice that an executive'sidentity and personal data will only becommunicated to a client with his/herconsent.

2.The personal data collected andstored should be adequate, relevantand not excessive in relation to thepurposes for which it is collected.

In other words, only informationuseful to executive search activitiesshould be kept in records. For instance,it may not be necessary to gatherdetailed information on a 50-year-oldexecutive's first job.

3.The data controller [executivesearch firm] must ensure that thepersonal data gathered is accurate andupdated where necessary.

Respecting this obligation mayprevent executive search consultantsfrom approaching executives whosequalifications and experience do not

inEuropeBy Brigitte Briche, AESC

andData Protection

personal information including the collec-tion, storage and disclosure of data. Thefact that most executive search firms keeppersonal records in their databases, suchas marital status, educational information,work experience, skills, remunerationand previous contact's information, issufficient for the executive searchindustry to fall into the scope of thislegislation.

However, reputable executive searchfirms already operate under strict rules ofconfidentiality and rely on ethical codesand strict professional practices.Nevertheless, the Directive places obliga-tions on every EU based executive searchbusiness when processing personal data.These are as follows:

1. The data should be processed fairlyand lawfully and it should be collectedand processed for specified, explicit andlegitimate purposes determined at thetime of collection.

Search consultants develop trustful

The security issues surrounding thetransfer of electronic data betweencountries has always been a major

concern amongst executive search firms,particularly electronic data transmittedbetween the US and Europe. Five yearsago, the European Union (EU) issuedDirective 95/46 for the protection ofindividuals with regard to the processingof personal data and on the freemovement of such data. This EU legisla-tion establishes a regulatory frameworkto ensure a European wide high level ofprotection for the individuals in all EUMember States. It also sets rules to ensurethat personal data is only transferred tocountries outside the EU which ensure anadequate level of data protection.

Although Directive 95/46 may not havebeen adopted specifically for the execu-tive search industry, it is neverthelessapplicable to this profession as it appliesto any operation which is performed byautomated means or otherwise upon

ExecutiveSearchExecutive

SearchBy Brigitte Briche, AESC

Brigitte Briche

Further Information

For more information, visit:

http://www.Europe.eu.int/comm./internal

_market/media/dataprot, or contact Mrs.

Brigitte Briche at the AESC Europe:

E-mail: [email protected]

S E A R C H - M A R K E T


S E A R C H - M A R K E T


rate boards realize that it is through theapplication of a systematic and focusedapproach to the recruitment process, aservice which executive search firmsprovide, that their companies can haveaccess to the high quality managementwhich is so urgently needed.

Executive search however, is not atotally new concept in India. It was firstintroduced around 21 years ago. During astint in the US in 1976, GulabMirchandani, who ran a small lightengineering company in India at thetime, studied the workings of a leadingretained executive search firm in Bostonand thought that retained executivesearch would one day become avaluable service industry for India. In1979, his vision became reality and helaunched Tristar Consultants, a retainedexecutive search firm which had humblebeginnings with its first office based ina bedroom in Mumbai. TristarConsultants later became the Indianoffice of Boyden International, whereGulab Mirchandani is now Chairmanand is considered by many to be thepioneer of retained executive search inIndia. Dinesh Mirchandi, President ofBoyden-India recounts the early yearswhen executive search was first intro-duced and reflects on the state ofexecutive search industry in India today.

"In 1979, Tristar Consultants was theonly retained executive search firm inIndia," says Mr. Mirchandani. "It wasn'tuntil two decades later that otherexecutive search firms entered themarket. During the early 80's theIndian government forbade foreigncompanies from entering the country.This was partly because foreigncompanies would be bringing moneyinto the economy yet their financial

Boyden-IndiaIndia's Pioneers in Retained Executive Search


returns would be taken out and thegovernment did not like this."

Although there were no other competi-tors during this time, Tristar Consultantsstill faced tribulations: "The biggestchallenge was 'concept selling' to IndianCEOs; convincing them that the approachwas value-added and in particular,convincing them to part with a retainer.The market could only sustain fees of oneto two months' compensation."

In 1986, Boyden Internationalapproached Tristar Consultants and foundan excellent match: an Indian entrepre-neur, who shared the same values. Alicensing agreement was signed inFebruary 1987, and over a period of twoyears, Tristar Consultants becameBoyden-India. Mr. Mirchandani explainsthe reasons for the union, "By joiningBoyden, it gave our firm access to a globalnetwork. It also provided a good flow of'referral' business from other Boydenoffices wishing to serve the critical needsof their global clients in India. Theexposure to Boyden's practices andprocesses also helped Tristar raise theirprofile significantly in the Indian market."

However, as the arrangement was apurely licensing one, requiring no equityparticipation by Boyden, no governmentapprovals were required, which was a"big deal in those pre-liberalizationdays", and Boyden became the firstretained global search firm to enter India.Boyden now had a distinct advantage inthe Indian executive search market asTristar Consultants had built a brandequity that was nearly a decade old andhad become a well-known reputablesearch firm. He relays the atmosphere atthe time, "Business was ripe becausepeople who had visited the firm as TristarConsultants, 20 years prior, who were

just starting in their careers, were now atsenior levels in organizations and werere-visiting the 'new' firm as clients."

In 1991, political crisis in India forcedthe government to 'open' the economy torelieve the burden of four decades of the"oppressively socialist License Raj"."Once these gateways were openedforeign companies such as Coca-Cola started to re-enter the market along withservice providers and the economystarted to grow. In the early 90's, otherexecutive search firms like Egon Zehnderand Korn/ Ferry started to enter the maket."

For Boyden-India, this move by thegovernment was very positive. Mr.Mirchandani reports that the firm'sbillings doubled "year on year". Hebelieves this was due to the enhancedcollective "market development efforts" ofall the search firms and the growingeconomy as a result of governmentreforms. He also feels that the increasednumbers of players in the market raisedthe credibility of executive search as awhole and companies were less resistantto paying high retainer fees.

"From being number one in a group ofone, we became number three to four ina group of many. These developmentsonly helped us positively," he says.

He adds: "One of the problems thatthese executive search firms would havefaced at the time was establishingthemselves, actually convincing localIndian corporations to trust firms withstrange, outlandish names like EgonZehnder and Korn / Ferry. In actual fact,many of them used Boyden as a referenceto explain their business proposition toprospective clients. All of these firmshave established themselves very well atthis point."

In the last six or seven years, thenumber of executive search firms havedoubled in India. "There are now anumber of both retained and contingencyfirms and I believe they are here to stay,"says Mr. Mirchandani. "The market ishighly fragmented but it is the same inother countries too. Retained executivesearch is fairly well established now inIndia. A growing number of firms are

more comfortable now with payingretainers as they recognize that there is a'war for talent' in which they have nochoice but to participate. This was helpedin part by economic growth arising as aresult of greater Foreign DirectInvestment which happened due to liber-alization."

Today, Boyden has four offices in Indialocated in Mumbai, Pune, and Bangalorewith ten to twelve consultants andresearchers. "Most of our assignments arebased in India but from time to time, they

can be for placements anywhere in theworld," he says. "About three years ago, Idid an assignment where a professionalmoved from Mumbai to Buenos Aires.There was also another professional whowe identified in Johannesburg whomoved to Atlanta. We don't restrictourselves geographically and our searcheffort encompasses a region from theMiddle East to Singapore; where most ofthe regional Indian diaspora resides."

On average, 100 to 120 retainedassignments are handled overall in a yearand around a quarter of these arecompleted by the Mumbai office repre-senting two-thirds by value. All assign-ments undertaken are at senior levels.

Most executive search firms in Indiatend to be based in Mumbai and NewDelhi. Mumbai is the commercial center ofIndia and New Delhi is the politicalcapital. About 30 to 40 percent of India'sgross domestic product is generated inMumbai and these two cities alone cover60 percent of the executive searchmarket in India.

The 'new' economy has broughtdramatic change: "This year, our businesshas made a discernible shift to theInternet, Communications andEntertainment sector, and I don't meanInternet 'dot-coms' alone but media,telecom, Internet Enabled Services areas.There are a lot of good, young companiesin India now. There has also been a shiftin compensation. Executives are beingwell paid because these types of skillsare rare; the salary levels are verysubstantial. Stock options plans are alsogaining widespread acceptance with thenew economy companies."

Mr. Mirchandani also touches on thecurrent problems facing India today. Oneof the key issues is that the market needsfurther development. "There are toomany 'fly-by-nighters' that give thisprofession a bad name. They are simplynot qualified or competent enough tocharge a retainer. People think all firmsare 'placement shops' due to the lack ofunderstanding of the business. Indialacks the legal framework to recover feesefficiently from clients that do not honora contract."

He deems that specialty practices willbe the future of executive search in Indiain the long term. "There are boutiqueswhose main focus is the financialindustry and, say, media. But there reallyisn't any one firm at the moment that youwould go to because they only conductsearches in banking, for example. Ofcourse, this does not imply that consult-ants are not highly experienced andexperts in certain fields - it’s just that thismarket, in particular, is still to be furtherdeveloped in the Indian executive searchmarket."

Boyden Global Executive Search is nowa US$65 million business and isdescribed as a 'progressive businessmodel of entrepreneurs.' The Indian officehas proved to be a success story: "Wehave been with Boyden for 13 years now.I was recently elected to Boyden's GlobalBoard of Directors, representing the Asia-Pacific region and that's quite an honorfor India."

T oday, India is transitioning from atraditional economy, where capitaland labor are the two critical

factors for success, to a more sophisti-cated market economy characterized byconstant change, innovation, highmanpower costs, necessitating costreduction programs and restructuring.Companies are realizing that the quality ofits management will determine itscompetitive edge. This quality cannot beachieved by relying merely on personalknowledge of the Board of Directors of acorporation. Neither can it be met bymanagement succession by familymembers. Executive search is becomingincreasingly important in India as corpo-

Dinesh Mirchandi



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