Articles From Thacher Executive Search

Characteristics of Successful
Executive Search Projects:
From Search Firm Selection to Project Execution

1. Search firm selection. Hire a firm that has expertise in your industry, and if possible a principal that has some operating experience. In the last couple of years, the firm you select should have done at least 2-3 searches in your field, although it is important not to define it too narrowly. In addition, although it is not always possible, our point of view is that it is quite helpful if at least one member of the search team has been in the industry. Insights from their client-side operating and hiring experience can have a very positive impact on a project.
   
   
2. Identify 'hands off' accounts up front. Every search firm has other clients, which are known as hands off accounts. The firm will not be able to recruit candidates from these companies, and if they have too many clients in your particular industry, they may not be able to develop as deep a candidate pool for you. As it pertains to your particular project, make sure you know what companies the search firm cannot recruit from up front.
   
   
3. Low leverage business model. Hire a firm in which the principal, not the associates, do most of the work. Many of the larger, international search firms employ principals that work on 14-16 searches at a time. Out of necessity, junior personnel do most of the work. You will never receive the attention you deserve unless principals work directly on your projects.
   
   
4. Reasonable project load. Hire a firm in which the principals are working on no more than 3-5 projects apiece at any one time. For the retained search industry, this is a standard for principals who work on searches directly. Working with a principal who listens well, is very involved in your search, and is responsive to your needs, is more important than working with a "big name" firm. Your search consultant's capacity to spend quality time on your assignment is just as important as whether you are impressed with their firm's track record, and with that individual's understanding of your requirements.
   
   
5. Project initiation and search firm client interview. Require the search firm to interview all key decision makers in the hiring process prior to creating their position description document. Before the firm begins recruiting, have a dialogue with them to make sure they understand your company well enough to do a thorough selling job for you. This includes understanding not only your business, but also your culture and the personalities of the management team.
   
   
6. Sign off on the position description, selection criteria, and target search environment. Be certain the position description sells your company and this opportunity. It should not be simply a recitation of facts about your business. A good case must be made as to why your company and this opportunity are truly compelling. All key participants in the interviewing process must agree to the key selection criteria for the candidate. If this is done well, it will save you time in the hiring process. Finally, make sure you have seen and agreed to the list of companies that will serve as the target search environment (companies that candidates will be recruited from).
   
   
7. Calibrate candidates early on in the process. Insist that your search partner comes up with benchmark candidates within the first month of the project. Spend time looking at a range of sum's/biographies of executives with relevant backgrounds for the position you need to fill. This session is a great way to make sure they understand the brief, and any biases you hold (but may not have articulated). Hopefully, one or two potential candidates will be good matches, and then it's a matter of creating a research strategy to originate more matches.
   
   
8. Require regular progress updates (at least every ten days). Find out who they have been calling, what sort of reactions they have been getting from candidates, etc. If they are not finding the types of candidates you want, you may need to make a course correction before you go too far down the road. For instance, if you are looking for an A+ candidate that you believe should take your job at a total compensation package of $150,000, but everyone you are interested in is at $250,000, you must make a course correction early in the search.
   
   
9. Ask your search firm to amaze you and to exceed your expectations. Tell them that if they do, you will not only hire them for future engagements, but you will call three of their business acquaintances and tell them what a great job they did. A successful search business is totally built on referral. Throw down the challenge and let them know your interests are aligned with theirs.
   
   
10. Participate in reference checking. Make at least 1-2 reference calls yourself. You need to feel comfortable that the right hire is being made, and not depend completely on the search firm. Always do background and criminal checks.
    
    
11. Treat your search firm as a true business partner in a time-sensitive, transaction oriented business.
• Return their calls promptly.
• Make yourself readily available for interviews, even if you have to rearrange your calendar.
• Follow up with feedback after candidate interviews within 12-24 hours.
• Share any breaking news about your industry or company as soon as it happens, especially if it will change the specification and direction of the search.
• Pay their fees and any expenses on time. Late paying clients get less attention.
  
12. Fees and other costs. A typical retained executive search costs one-third of the total compensation for the placed executive's first year. As a consumer of an executive search, you should expect the price to be similar among the different search firms. In our experience, price is hardly ever a key selection criterion in choosing which firm's services you want to use. However, you can save on expenses. Some search firms charge a fixed percentage of the fee to cover additional costs. These indirect expenses are separate from the direct expense of running the search (such as flying candidates to interviews and putting them up in hotels if necessary), and they could cost you tens of thousands of dollars in some cases. Our recommendation is that you discuss these expenses up front with the search firm and agree on what you will pay for.