In a highly competitive, complex, global economy the quality of an organization’s senior

executive team is critical. It is the key factor that will determine an organization’s success

or failure.

Why is it then that some organizations still use short cuts, gut feel, the old boy network

or, worse still, family connections, when recruiting senior executives? A more reasoned

approach is to employ specialized professionals who will help the organization identify

the best executives in the market for a particular appointment and then effectively recruit

them. Since many organizations employ outside advisers and professionals for key legal,

financial and other needs it makes sense to do the same with a critical task such as senior

management recruitment.

But how should such professionals be employed? What qualities should they offer and

under what terms should they be engaged?

The answer lies in retained executive search consulting, a specialized branch of

management consulting, that is specifically designed to assist clients with the critical and

challenging task of bringing top executives into an organization.

Developed in the United States after the Second World War, today retained executive

search is employed by thousands of organizations around the world in a wide range of

industries and for many different functions. It is not by chance that the profession has

grown to almost $10 billion in worldwide revenues. It is a reflection of the increasingly

important role that it plays in free enterprise economies and societies where merit and

ability are the key criteria for success.

What differentiates retained executive search consulting from other forms of recruiting?

The retainer agreement is the key. It is signed in recognition of the consultant’s

reputation and skill in the market and commits the consultant to their best efforts to

complete the recruitment assignment as effectively and as quickly as possible. The

consultant will be fully committed to success not only because retainer fees are normally

paid in installments – a dissatisfied client is unlikely to pay promptly - but because they

know that they have an exclusive mandate from the client and their reputation with that

client will depend upon successful completion of the assignment.

The client thus buys full commitment, focus and resources and can expect regular

feedback and consultation throughout the search. The commitment to a mutual goal and

to full collaboration between the consultant and the client as expressed in the retainer

agreement is critical to success. Without it the highly complex and sensitive task of

recruiting a senior executive into the organization can easily go awry.

The process of retained executive search is essentially straightforward but it is the skill,

judgment and experience of the consultants and their research teams that qualifies

executive search consulting as a profession in its own right. Separating the exceptional

from the average performer and assessing them against the needs of the position and the

potential of the client organization requires more than just pedestrian skills. It needs the

focus of senior professionals who can relate to client management and the executive

community as their equals and who can bring to their work comparative judgment and the

experience of meeting and assessing thousands of executives.

Today executive search consultants have backgrounds as diverse as the industries that

they serve. But the best have often left successful careers in management consulting or

industry because of the satisfaction of helping clients to solve problems with the elusive

solution of ‘the right person’. McKinsey & Co has examined the impact of high

performing individuals on organizations in their War for Talent study. In their judgment,

the difference between an A and B performer is so quantifiable that it makes great sense

to invest considerable time and effort in engaging and exploiting the potential of scarce A

players.

When it comes to the recruitment and development of executive talent the rewards of

“getting it right” and the penalties for “getting it wrong” are so great that many successful

Chief Executives consider getting people into the right positions to be their most

important task. Seeking the help of professionals outside the organization gives the CEO

a competitive advantage that may be one of the most important in his or her arsenal of

management tools.

The confidentiality and targeted nature of retained executive search also helps to minimize

the danger of information leaks during the recruitment process that might endanger the

client’s strategic plans or indicate management instability. Worries and speculation on the

part of employees, shareholders, and suppliers can also be avoided. Search consultants are

highly sensitive to these issues - the retainer agreement reinforces the obligation on both the

client and the search consultant to ensure that the highly sensitive search process will be

carefully and professionally handled.

Top candidates may not indicate interest in a position except through a retained

search consultant who will act as a professional and discreet intermediary. Their own

reputations are at stake and they will only venture into discussions knowing that the

client has made a professional commitment to handling the process correctly.

The retained executive search consultant will also provide feedback to management on

the market perception of their organization, on compensation levels, and other issues that

can affect their ability to recruit the best. Advising clients on realistic expectations, job

descriptions, job titles and reporting relationships can be crucial to a successful search

assignment.

The costs of retaining an executive search firm should be weighed against the potential

costs of a hiring mistake. For a small or large organization a bad appointment to a key

position can have consequences that can take much time and expenditure to recover from.

Supporting the profession of retained executive search consultants is a code of ethics and

professional practice established by their worldwide professional association. As the

global representative for retained executive search consulting firms The Association of

Executive Search Consultants has established clear-cut guidelines of how to practice this

specialized branch of management consultancy. It only permits the highest quality firms

into its membership and acts as a guardian of best practice to the benefit of clients and the

profession itself.

Senior management recruitment is too important to be left to chance. By retaining an

executive search consulting firm leaders of organizations can satisfy themselves and their

stakeholders that they are making a prudent investment in getting the process right.

                                                                  SOURCE:     AESC