Executive Newswire - Regional Newsletter for Middle East

JULY 2009
The Online
Executive News
for Corporate
Leaders
Regional Newsletter
for Middle East
2
Advisory Board
of Stanton Chase International
– Middle East
p4
Saudi Market: an HR point
of view
p5
Global economic index rises
for first time since 2007
p6
End of Global Recession
p7
Re-Creating your Organization
p8
This Is How We See It:
Freight Forwarding Talent,
A New Breed
p9
How Global is the Business
in Retail:
p10,11
Ask a Headhunter:
Can you afford a bad hire?
p12
Newswire
Executive
Editorial
The AESC 50th Contents
Anniversary
p1
Welcome to the second issue of our Middle East Newswire! This issue comes at the
verge of what seems to be a more optimistic era, as the markets react to the first positive
signs, resulting from an international effort to face the economic slowdown.
However, all the economies, including the ones in Middle East, still have to work hard
in order to face and resolve the deep structural problems that the crisis revealed. Lack of a long term
strategic focus as well as inefficient use of human capital seemed to be the main issues most companies
39th Stanton Chase
International Global
Partners meeting
p2
had to face – and are still facing.This was also confirmed during the 39th Stanton Chase International
Global Partners’ meeting, recently held in Dubai. Partners and senior consultants with specific industry
focus from all over the world shared their feedback and designed the strategic steps to be used by
Stanton Chase as an international consultancy firm dealing with human capital in order to meet in the
most efficient and effective way the changing needs of the market.Within this context, a new list of
Industrial Service Workshop services has been developed under the umbrella of the Executive Assessment Services. By assessing an
organization’s leadership talent, the client company is assisted in determining how its executives com-
Picking up the Pieces
p3
pare with the market’s available talent and measure internal capabilities and future potential. Through
this process, the company reinforces its position against the challenges of the global markets and bases
its future growth on its most important capital: the human talent.
Visit our site
www.stantonchase.com
So, although the current year was initially characterized as “the year of survival”, it
really needs to be re-defined as “the year of restructuring”. This will set the basis,
especially for the fast-growing emerging markets of the Middle East, that will secure
the sustainability of the current and future projects.
Panos Manolopoulos
Managing Partner, Stanton Chase Middle East
and Global Head for Consumer and Retail
The AESC Celebrates its50 Anniversary!
th
In 1959 when the AESC (originally "AERC" - Association of Executive Recruiting Consultants) was founded retained executive
search consulting was very different to what it is today. Firstly, this new profession was really only practiced in the United
States. Secondly, it consisted of a few small firms, mostly headed by principals who had left management consultancies such as
McKinsey and Booz Allen. And thirdly, it produced revenues that were only a tiny fraction of the $11 billion that we estimate
the worldwide revenues to be today. Much has changed since then, but much has also remained the same.
As always, the purpose of retained executive search has been to provide an exclusive and committed
service to the top management of organizations when recruiting executive talent. Confidentiality,
ethical and professional practices, and high level consulting and recruiting skills still typify the
seasoned executive search consultant.
Such attributes are rightly valued by clients. On March 5th, at the Metropolitan Club in New
York, we had occasion to celebrate the amazing growth of our profession and to honor some
of those who contributed to its development and to the growth of the AESC. An historical
overview of the development of executive search, an industry panel about the future
of the industry and a gala dinner were the highlights of our anniversary celebrations
capture on our website. In honor of our 50th Anniversary, the AESC has published a
history of retained executive search.
p1
“In the midst of a severe economic downturn it is difficult to be optimistic
about the future. However, I am firmly convinced that the demand for
executive talent will return and sooner than some think. The need
for talented leaders is greater at times like these than at any other.
The executive search profession will not only serve that need but continue
to prosper as it does so”, says Peter Felix, the President of AESC.

JULY 2009 T h e O n l i n e E x e c u t i v e N e w s f o r C o r p o r a t e L e a d e r s
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The meetings had an entirely business development focus, giving
special emphasis on each sector separately through innovative, oneday-long
workshops per Practice Group.
Throughout the meetings, it was highlighted once again that, based
on the global market’s reaction, good talent still doesn’t come cheap.
Companies perceive that finding top talent is harder today than it was
before. The reason is due to the economic crisis, there are greater demands
from boards of directors and CEOs to find talented people
with the unquestionable ethics, integrity, business judgment and the
ability to strategically grow a company the right way and in the right
manner. So, the economic downturn has put more complexity into
the leadership and management skills of major corporations.
Despite the significant drop in executive search business from the beginning
of 2009, there are positive signs coming from major markets
of the world. There are already recovery indications from some mar-
Executive
Newswire
39th Stanton Chase International Global Partners meeting:
Exploring the Trends of the Human Resources Market
On the 30th of April till the 2nd of May, Stanton Chase International held its 39th Global Partners’ meeting
in Dubai. Under the motto “A Symphony of Growth in C Major”, about 100 partners and senior consultants from
all over the world gathered in Jumeirah Beach Hotel in order to explore the paths for long-term growth.
“Dubai is still probably the most
active employment market in the
region, even amid the current
economic downturn”, comments
Steve Watson, the International Chairman
of Stanton Chase International.
“By the last quarter of 2009,
we believe a talent shortage will
emerge and companies will be
aggressively hiring senior talent.
When the economy turns around,
we are going to have rapid business
activities”, he added.
From left to right: IvoHahn (Managing Partner, Greater China), Panos Manolopoulos (Managing Partner,
Middle East) and Steve Watson (International Chairman)
kets in the USA, Chile and Brazil in South America are also active, while
China is picking up and GCC region is re-balancing to the new growth
expectations and projections. Certain industries, like healthcare, retail,
FMCP, technology and the industrial sector see interesting growth in
the near future, especially in the emerging markets.
The Construction and the Finance sector will pick up at a slower pace,
although even there, there are hints of recovery. These observations
were also supported through the panel discussion organized during
the Global Partners’ meeting with senior executives representing key
industries in the region. Thus, Mahendra Patel (Group Managing Director
of Geap International), Kerry Anastassiadis, President of Aujan
and Werner Baumgartner (Managing Director, Swarovski Middle East)
joined the plenary session and exchanged information with the international
partners of Stanton Chase, verifying the remarks per sector already
outlined during the practice groups workshops.
Within this context, Stanton Chase International continues its growth
and expansion in additional key markets in the world. During this
Global Partners’ meeting, 4 new offices were affiliated in Sofia, Brussels,
Lagos and Toronto, while 3 more (in Moscow, Singapore and Boston)
are expected to be affiliated in the next meeting.
New offices: Stanton Chase Lagos, Stanton Chase Brussels, Stanton Chase
Toronto and Stanton Chase Sofia
From left to right:
Dr Tommy Weir, Managing
Director, EM Leadership Center
and Member of the Advisory
Board of SC -Middle East
Key note speaker in Opening
Cocktail Usman A. Ghani,
Chairman of AIMS and of
ConfluentC, Visiting Professor
of the University of Texas, Dallas,
Member of Advisory Board
of SC - Middle East,
Panel discusion with:
Steve Watson (International Chairman),
Kerry Anastassiadis (President of Aujan)
Mahendra Patel (Group Managing
Director of Geap International),
Werner Baumgartner (Managing Director,
Swarovski Middle East) and
Panos Manolopoulos
(Managing Director SCI Dubai),

By Wassin Karkabi
S T A N T O N C H A S E I N T E R N A T I O N A L
Stanton Chase’s largest practice group members conducted their annual
meeting as part of the Global Partners’ Meeting, in Dubai for the
first time ever. It was a special meeting as partners, consultants and researchers gathered
from Stanton Chase offices around the world, under the heavy fire of the global crisis and the
warm sun of Dubai, to discuss the changing trends in the executive search market, and in the industrial
practice, with a special emphasis on Key Account Management. The results were astounding
as veterans in the executive search industry put their minds together to think outside
of the box on how to best to tackle the challenges and the opportunities that are emerging for
the years to come. Over 25 executive search professionals left Dubai with a renewed sense of purpose and direction, after a full day session especially
focused on Key Account Management and specific discussions on driving a matrix type approach to the market which runs across two dimensional expertise
of functional and industrial subsector specialization, all enveloped in a cross border objective to develop global key accounts rather than focus
on local relationships. On the whole the Stanton Chase International Industrial practice treads surely on solid grounds with a clear way forward, and
with all offices registering continued growth in their own markets across the globe and more so in the EMEA region.
Wassim Karkabi is a Partner and Regional Practice Leader, Industrial Services sector
During the StantonChase International Partners
meeting held in Dubai at the end of
April, we had a unique opportunity to collect
over 25 consultants from around the world in
a day-long focus group, holding some in-depth
discussions regarding Consumer Goods and Services
in each region. This session allowed Stanton
Chase to take advantage of our Executive Search
breadth and depth in strategizing on how best to
assist our clients in identifying who and from
where are the key executives that can help them
survive this “new economic order”. One thing we
found from a retail standpoint was that the
Emerging Markets of the Middle East, India, and
China continue to provide areas ofgrowth.
In the Middle East, overall the spending on discretionary
luxury goods is expected to fall in 2009,
while non-discretionary spending, like food retail,
should remain relatively strong and forecasts suggests
the GCC retail market will still continue to
grow at a nominal 7 % during 2009-2011. However,
Middle East markets are a “mixed bag” reaction
in each country.
In Kuwait for example, the luxury car market has
not been affected, since their customers are
higher income locals, and retailers report continued
strong sales. The economy is not as dependent
on foreign workers driving the local consumer
economy.
Saudi Arabia, Qatar, and Abu Dhabi markets are
holding strong, as they continue to spend on infrastructure
projects financed by the last several
years of high oil prices. They are still employing
the management required to build, and thus
have not seen the mass exodus of expatriates observed
in the Dubai economic model. Oman reports
also being relatively unscathed, as they had
not gone as far out on a limb.
ISSUE 2
Industrial Service Workshop
Consumer and Retail Services Workshop
Jack Montgomery is Senior Consultant, Stanton Chase – Middle East
Picking up the Pieces
“This too shall pass”
King Solomon
By Jack Montgomery
Worldwide, we found a shift in the North American
consumer purchases from wants to need,
and from style to values, which left many retailers
flatfooted in response to the downturn. This resulted
in a slew of bankruptcies at the end of
2008 / first quarter 2009, which has now abated,
the dust is settling, and the rebuilding has begun,
creating new niche opportunities for experienced
or entrepreneurial minded managers.
From Latin America, our consultants have pointed
out that informal, smaller consumer channels
have shown resurgence in driving the national
economies. During the last 5 years, as the masses
moved up into the middle classes and higher,
they drove more modern retail trade and services,
thus supporting higher caliber executives to manage
more complex organizations. With the
downturn, more people are reverting to traditional
consumer trading, creating a whirlpool effect,
dragging larger businesses down and
reducing managerial opportunities.
The China market has seen many organizations
tighten considerably, as their consumers have
been thrown out of work, cascading down from
the lower demand of their goods exported to Europe
and the USA. Other Far East partners have
reported active searches for marketing, sales, and
country managers, in particular for luxury brands
seeking competence in retaining their high end
images while capturing sales.
All in all, well into the second quarter of 2009, we
are starting to see pockets of recovery for senior
management, and most markets are optimistic
for a upturn for the second half. Along with select
sectors such as food and non-discretionary consumer
products, other niche opportunities are appearing
in organizations seeking executives who
can salvage and rebuild.
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JULY 2009 T h e O n l i n e E x e c u t i v e N e w s f o r C o r p o r a t e L e a d e r s
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Advisory Board of Stanton Chase International – Middle East
Executive
Newswire
Within the context of the current challenges in a constantly changing and demanding business environment, Stanton Chase International
– Middle East proceeded in the development of an Advisory Board. Its members are prominent professionals, with academic
and professional background, coming from different geographical areas but, still, with experience in the GCC region and in HR and
human talent issues. Their role will be to assist Stanton Chase in facing more effectively and efficiently the needs of the companies, by bringing
together international know-how from industries not directly related to executive search and thus, add value to the services offered.
Mr. Usman A. Ghani
A Fortune-100 executive distinguished by his record of developing powerful board policies and business strategies for a variety
of industry leaders, including McKinsey & Company, Royal Dutch/Shell Group, Exxon Mobil Corporation, and Electronic
Data Systems, Usman has held leadership roles in strategic planning, marketing, operations, organization development, IT, and
executive education, as well as led cross-functional, multi-cultural core-business process teams.
Usman has repeatedly developed winning strategic agendas and been responsible for implementation of board-driven strategies
and structures. As a high-value consultant, he serves global leaders across six continents, acquiring a reputation for developing
high-performance strategy and building trust with senior executives and technology teams that consistently exceed
expectations. Usman holds three Masters Degrees from MIT: in Business Administration, Management of Technology, and Policy
Planning from the MIT/Harvard joint program. He is a Visiting Professor at The University of Texas at Dallas, a sponsor of the
Harvard Business School Club and an author of The Leader of the Future 2, a best-selling business book including his concept
of The Leader Integrator. He has authored “Dynamic Governance,” a business book and concept that takes a holistic approach
to providing deep insights into the dynamics and interface of corporate governance and strategy, and is now working on his
next book, “InteGreat.” A Benjamin Franklin Fellow in Paris, he is listed in Who’s Who Worldwide. Usman enjoys classical music
and studies Asian cultures with interest.
Dr Nick van der Walt has held leadership positions in international academia and industry. With a PhD in International
Strategic Management, his appointments have included roles as a non-executive director and chairman in the energy
and professional services sectors, a trustee of charitable trusts for the community.
Having held positions as a full professor and professorial fellow in the fields of international business and corporate governance,
Dr van der Walt’s work has included strategic consulting to the boards and senior management of a range of regional
and global companies as well as professional bodies. His globally published research has focused on strategy and risk management
associated with corporate governance. The strategic and administrative positions held by Dr van der Walt include those
of Chief Executive Officer, Dean of Faculty and membership of the senior leadership teams of global educational organizations.
In 1999, Dr van der Walt was appointed by President Nelson Mandela as the Honorary Consul for the Republic of South Africa
in New Zealand and was tasked with bilateral trade development as well as the support of citizens. Dr van der Walt’s interests
include squash and marine sports.
Dr Tommy Weir
Dr. Tommy specializes in strategic leadership development for fast-growth and emerging markets. He is a thought leader concerning
leadership and business, a gifted speaker, and author. Among his publications is the recently released “The CEO Shift”,
which explores the new global business environment that requires CEOs to shift their perspectives in order to survive in a
competitive, changing world. Dr. Tommy has a rich history of leadership development experience and has held top management
and teaching positions throughout his career. He has taught organizational leadership and management courses at the
graduate and university level, and consulted in leadership development for global organizations, including many Fortune 100
companies. Moreover he has a rather unique specialization “Arab Leadership Development”.
His latest position was as the head of learning and development at Nakheel where he was named the Middle East’s HR Professional
of the Year for his market-leading work. While there, Dr. Tommy drove the creation of an innovative learning architecture
and leader development program that were as unique as the company’s explosive growth. With a deep understanding of
Arab leadership development, he established the best-in-class UAE National Development program. Additionally, he played
an instrumental role in the diverse multicultural environment (with over 80 nationalities working together in one location).
He holds a Doctorate degree in strategic leadership and is a noted communicator. His writings on leadership in the fastgrowth
and emerging markets have been featured in many publications.

By Nicolas Dietz
Saudi Arabia, the apparent sleeping
giant, is awake and moving
forward in many ways not always
noticed by the HR industry outside
the Kingdom.
For example, more women are graduating with college degrees
than men. Some economists consider women as the
largest un-capped wealth of the nation and not just for
their money sleeping in banks, waiting to be invested in
promising enterprises, but for the value of women in a
knowledge economy.
This is a work force waiting to be unleashed with a very
strong desire to be more financially independent and add
to a society in their own way. The rapidly growing size of
Saudi families and more dispersed inheritance are also forcing
the next generation to seek for more consistent revenue
streams. And not only as a result of having children at
a young age. Beyond the telling statistics of survival there is
a clear will, a desire to ‘get busy’, away from watching TV
for hours on end. Maybe the negative impact of too much
TV may actually have a positive side. It could have helped
to prime society into the realities of the working industrial
world. Only the grandparents that did not grow up with
the oil wealth knew too well that life is actually tough and
reward does not come without demanding work. The average
and affluent Saudis alike are, more than ever, seeking
for a job title.
Now, in the Kingdom of the 21st century when HR, executive
search or training is mentioned I am easily handed a
CV and discussion revolves around technical skill and experience
and how they view their career ladder. A far cry from
the claims they would always have a job waiting for them if
they needed, so often expounded over a decade back. In
the past one had to employ a minimum number of Saudis
to comply with the ‘Saudization’ programs and they
showed up late for work, or never.
S T A N T O N C H A S E I N T E R N A T I O N A L
ISSUE 2
SAUDI MARKET
anHRpointofview
Today there is a large group of Saudis that are retiring after
30+ year careers in the same field! The Aramco’s and
Sabic’s are not the only ones as second and third generation
career employees. There is a new sense of pride,
added to the tribal or family pride, which is more personal.
And with this there is a clear list in the mind of young
Saudis as to who is an employer of choice – offering the
best training and career plans, like Banque Al Fransi to
name one of many. Large corporations have developed a
majority Saudi employee base, are efficiently managed and
operating a scorecard approach, as do competitive companies
in western economies.
The most competitive and successful companies have a
maturing HR strategy. And their HR departments are
closely linked to the executive board – companies can no
longer afford to train up and away their brightest and most
productive. They have to implement more than the yearly
bonus schemes. Beyond the budgets spent on training and
dust collected on training manuals, they actually have to
manage the entire array of HR tools, they have to deliver a
culture of responsibility and not just at the corporate level,
at individual level too.
The corporate ‘game’ no longer strives mainly in the boardroom,
because employees have found a new passion – HR
departments. Because HR are not just timekeepers, they
are asked for more, they are employee-keepers. The employees
that latch on adorn their walls with certificates of
course completion and not surprisingly those are the ones
that rise and shine. And more importantly, the ones that
stay on.
p5

JULY 2009 T h e O n l i n e E x e c u t i v e N e w s f o r C o r p o r a t e L e a d e r s
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Global economic index rises for first time since 2007
By International Chamber of Commerce (ICC)
> The world economic climate index rose in
the second quarter of the year for the first
time since 2007 as a result of more
favourable expectations for the coming six
months, but the assessment of the current
economic situation worsened yet again,
falling to a new record low, ICC and the Ifo
Institute for Economic Research said in
their latest survey.
> The rise in favourable expectations put the
climate indicator at 64.4 points compared
with 50.1 points in January. Nevertheless
the indicator remains well below its long
term average of 96.4 points between 1991
and 2008.
> “The improvement of the climate indicator
is exclusively the result of more favourable
ecoAnomic expectations for the coming six
months,” the report said. “The assessments
of the current economic situation, in
contrast, have worsened further.”
> The report, based on a survey of 1,040
economic experts in 90 countries, sought
to dampen optimism that the current
global recession was nearing an end by
emphasizing that “the difficulty of fore-
casting the future scenario of the world
economy is unprecedented as the financial
sector is still fragile.”
> But it said that the current pattern signals
the slump may bottom out in the second
half of the year. “However, the economic
recovery is likely to only gradually gain
momentum in 2009,” the report cautioned.
> ICC Secretary General Guy Sebban said
the report gave him reason for cautious
optimism. “After months of very depressing
news we are finally seeing
some signs of hope,” he said. “The outlook
for the next six months is positive
for most areas of the world, including
the United States and Europe.”
> Economic expectations for the next six
months improved in all major regions, especially
in North America and Asia. At the
same time, the worst appraisals regarding
the current situation came from North
America and Western Europe.
> The report said that while the recession
in the United States appears to be bot-
toming out and could start a recovery in
the second half of the year, high unemployment
and large public deficits will
most likely remain an urgent problem
throughout 2009.
> The report added that the global recession
has hit the euro area harder than the
United States because most countries that
use the European currency are more dependent
on exports for growth than is the
United States.
> The report, issued quarterly, said the
credit crunch and economic slowdown in
Western Europe have strongly hit Central
and Eastern Europe, bringing Hungary
and Latvia to the brink of bankruptcy.
> It said economic expectations had been
upgraded for all Asian countries except Indonesia
and Bangladesh. In Latin America
economic expectations were upgraded for
all countries except Trinidad and Tobago,
Uruguay, Bolivia, Costa Rica, Ecuador and
El Salvador.
> Economic expectations for Russia were
upgraded significantly since the January
Executive
Newswire
report. But the economic climate deteriorated
further in Australia and New
Zealand. The climate indicator remained
negative for South Africa, the continent’s
largest economy.
> The economic experts surveyed said they
expected a global inflation rate of 2.7% in
2009 compared with 5.4% last year. Inflation
is expected to drop further during the
next six months.
> “However, despite the clear disinflation
trend which is prevailing in the majority of
countries worldwide, there are hardly any
signs for a deflationary danger, possibly
with the exception of Japan, where a decline
of consumer price inflation of almost
half a percentage point is expected on average
of 2009,” the report said.
> Despite the slowdown in inflation, the
economic experts surveyed said they expected
a further decline in short-term interest
rates, but forecast the decline of
long-term interest rates to end later this
year, as has been the case with improved
economic expectations in the past.

S T A N T O N C H A S E I N T E R N A T I O N A L
End of Global Recession
ISSUE 2
Economists say the US economy will be growing again by next year and lead the way to global
recovery. The end of the recession is in sight, and will be led by the recovery in the US and
China, followed by Europe, leading economists forecast during the World Retail Congress.
> Speaking at this Congress, Mirae Asset chief
global and Asia strategist Ajay Kapur forecast
that the recession would end in the US in the
next “few months”, followed by China.
> Deloitte director of global research
Dr Ira Kalish said that recovery is “all about
the US and China”, which have shared a “symbiotic
relationship” over the past decade. “By
the end of the year or early next year, we will
see the US economy growing again”, said
Kalish. He added that as a result of the downturn
the US will shift from consumer spending
to exports, investments and government
spending, whereas Asia will shift away from
exports towards consumer spending. Kalish
praised countries that had taken strong policy
measures including quantitative easing to
boost confidence, and criticized Europe’s “insufficient”
policy response to the crisis and
lack of strong fiscal stimulus.
comment by
Dr Ira Kalish,
director of consumer business,
Deloitte Research
Retail Week, Issue 2, World Retail
Congress, May 2009
> Meanwhile, Li & Fung managing director
Dr William Fung warned against repeating
history and creating trade barriers – a method
employed in the depression of the late 1920s.
He said: “The only silver lining I see is we are
now operating on unprecedented lower levels
of inventory and trading will be sharper. What
my customers are telling me is keep inventories
low, let’s chase business and have a quick
response.” He said that a consensus was forming,
given the resultant imbalance of power in
favour of buyer over seller, that the idea of payment
within 30 days on open account is “very
prevalent”. However, “once you go past 60
days you are giving the retailer working capital
to finance the product” leading to a lack of
credit in the supply chain, he added. Fung also
said he expected prices to decrease by between
5 and 10 per cent as commodity prices
continue to fall.
Light at the end of the tunnel
In the first few months of 2009, the financial
crisis that began with
the collapse of the US housing
market has deepened
and become a truly global
recession.Economic activity
in the US, Europe and
Japan has declined at an
alarming rate. Emerging
countries have experienced
sharp drops in
economic activity. Even the BRIC
economies, which at one time seemed
relatively immune to the global financial
situation, have experienced serious problems. Global
trade has plummeted, causing concern that the increasingly
global nature of the economy leads to
more rapid transmission of trouble than in the past.
And yet, there are indications of light at the end of the
tunnel. Global shipping rates have stabilized, risk
spreads are far below their level of a few months ago,
and governments have been pumping money into
the system at an unprecedented rate. In the US, housing
turnover and refinancing are accelerating, setting
the stage for a rebound in consumer spending. In
China, a massive fiscal stimulus is fuelling an investment
boom while consumer spending remains surprisingly
strong.
What, then, can be reasonably expected in
the next year and beyond?
(from the Retail Week, Issue 2, of the World Retail Congress, May 2009)
p7
>Toys R Us chairman and chief executive
Jerry Storch said that the “essential” rule by
which retailer should trade through the downturn
was “know thyself”. “We don’t know how
long the recession will last,” he said. “We need
to get back to the basics and get back to common
sense.” He added that he had seen a
“change to cheap” at the expense of quality
and warned against short-termist responses.
>Etam chief executive Richard Simonin said
that the beginning of the end of the “average
customer” had begun before the global
downturn but that recessionary factors had
sped up the evolution. He said that it was essential
for retails to know their customer and
be honest with their teams.
A likely scenario is that the US will experience a revival
of growth by the end of this year. China, which will
not experience a recession but merely a slowdown,
will rebound by late 2009. These two countries can
then lead the world out of recession. Europe and
Japan will rely on renewed US and Chinese demand
for their own recoveries. As the global economy recovers,
oil and other commodity prices will rise,
thereby allowing commodity dependent countries
such as Russia to recover as well.This is merely a likely
scenario, not a firm forecast on which to bet the farm.
Still, the business cycle has not been repealed and recovery
at some point in time is a near certainty.
Moreover, although this is the deepest global downturn
since the Great Depression of the 1930s, policymakers
are reacting far differently than their
predecessors of 80 years ago. Policy-makers in the US,
UK and China have been aggressive in boosting demand.
Thus, there is some cause for optimism. When
the global economy recovers, retailers will face a new
world. The US will no longer be the engine of global
consumer spending growth. Americans will save
more and borrow less. Their spending will be constrained
by their incomes – a novel concept of late.
Instead, US growth will come disproportionately from
exports, investment and government. Meanwhile,
Asian growth will shift away from export dependence
toward growth based on domestic demand.
For the world’s leading retails and their suppliers, a
disproportionate share of future growth will come
from the East. For retails in the US, UK, Sanin and
other countries recovering from housing bubbles,
growth will come from gaining market share rather
than riding a consumer spending boom.

JULY 2009 T h e O n l i n e E x e c u t i v e N e w s f o r C o r p o r a t e L e a d e r s
p8
Re-Creating your
Organization
Upgrade your Talent Pool
While reducing staff and consolidating
responsibilities is already a
widespread practice, companies
should make sure to address the
implications this has on the employer
brand, it’s internal culture
and external reputation in front of
the larger community.
Still, a crisis can offer a tremendous opportunity and – sadly so – an
excuse for companies to reduce the levels of redundancies or
rather duplications that were the initial result of over-hiring that
took place across the GCC in anticipation of market demand, opportunities,
expected growth and upcoming projects. This will
allow companies to rethink their organizational structures and their
effectiveness, and rebuild a tougher, more robust organization that
is capable of surviving and even triumphing during this tough
economy as well as having a springboard and model for a more
balanced growth once the economy begins its turnaround.
Re-Create your Talent Skill Set
Here is the key to the puzzle. In a
downturn and a crisis economy, a
new or different set of skills are required
in talent to drive continued
growth. The skill-sets that got you
here are not the same skill-sets
that will get you there – there
being through the maze of this
crisis. A new set of balanced hard
and soft skills are required and
that needs to be examined by each company based on its new objectives,
goals and strategies. The skills that you need to swim one
thousand meters or even rescue a swimmer in a swimming pool
are totally different than the skills required to swim to and rescue a
distressed near drowning person in a storm out in the ocean fighting
against 20 foot waves and heavy rain and winds.
Rethink your Learning
& Development Approach
Learning and Development is always
one of the first budgets to
be affected by such downturns.
Yet it seems that these situations
may be the best opportunity to
upgrade your already existing talent
pool by continuing to invest
in training solutions. This is a
dilemma that has a solution.
Companies cutting jobs should carefully maintain and rigorously
Executive
Newswire
How to Triumph through the Crisis of Middle East during Global Downturn
Wassim Karkabi is a Partner and Regional Practice Leader, Industrial Services sector
By Wassim Karkabi
protect training and development programs, as they are necessary
to provide your talent pool with the skills needed to perform redesigned
jobs that have bigger responsibilities and a greater span
of authority and control. One solution is to replace external trainers
with internal ones by offering the opportunity for internal specialists
and the company’s senior leaders to participate in your learning
programs and enhance their facilitating and coaching skills. This approach
can both reduce your cost of training and development
tremendously while at the same time redirecting the content of
leadership programs by tying it to decisions and skills affecting the
company’s current performance issues.
Leadership
A new set of competencies are required
by leaders in this turbulent
time. The key set of skills that the existing
CEO’s possess to drive through
this storm are not the same at all as
the ones they have been using so far
in what was the booming economy.
Unfortunately, some of those CEO’s
don’t even possess the skills, hard or
soft, for this adventure sport. According to Lowell Bryan and Diana
Farrell in their article on “Leading through uncertainty”, executives
need greater flexibility to create strategic and tactical options they
can use offensively and defensively as market conditions change;
they need a sharper awareness of their own and their competitor’s
positions; and they need to make their organizations more resilient.
Stanton Chase International is conducting a survey across the
GCC Region, engaging with Leaders and HR Heads in a variety of
industries to consolidate their thoughts on the key competencies
that their senior and executive talent pool will need to have to
drive or support the continued growth of organizations during
this crisis. Until the results are out, suffice it to say, there is definitely
a different set of skills, and without those skills, some companies
may not survive.
Here is the upside
The companies that manage to make
it through, will emerge triumphant as
others who don’t will fall. This is a
classic case of “survival of the fittest”.
Suddenly, companies that will
emerge will find themselves in a
more robust market with less competition,
more demand to meet their
supply, and in a stronger ship manned by a tough crew and lead by
a clear minded strategist at the helm, with a strong vision for
growth in the years to come.
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By Juan D. Morales
The logistics & transportation industry has seen
substantial growth, and has been forced to
evolve in the process. Customers, manufacturers,
and government organizations have all demanded
changes to the industry. These demands
have increased as the end-users themselves try to
become leaner and more competitive.
Manufacturers and retailers are relying on freight forwarders to
be the managers of their intercontinental supply chains. Governments
are more concerned about safety than ever before
and are thus demanding more transparency of information
from forwarders.
The apparent beneficiaries of these demands are the freight
forwarders, who have enjoyed rapid growth and generated returns
on capital far exceeding those of the asset-based carriers.
The challenge has been their ‘inbred’ selection of executives.
Now the freight forwarders are moving quickly to attract relevant
talent from other industries. What are they looking for?
Freight forwarding has become more complex and success
requires a caliber of executive who is in short supply.
Some key points to consider when recruiting this talent:
SLIM MARGINS
Returns on capital notwithstanding, the margins are low. Look
for talent that has been successful in other highly competitive
industries with similarly slim margins.
S T A N T O N C H A S E I N T E R N A T I O N A L
COMPLEXITY
Executives in the sector must understand complex financial
systems. Freight forwarders must be able to control different
modes of transportation and different carriers.
CUSTOMER INTERACTION
Freight forwarders often control the relationship with the end
customer as asset-operating air and ocean carriers increasingly
rely on the wholesaling capacity of forwarders instead of their
own direct marketing. Who has shown talent in interacting
with the customer and increasing customer satisfaction?
SOPHISTICATION
Freight forwarders need to manage the sale and deliverance
of a complex service that includes more than just the movement
of goods, but also emphasizes technology, reporting,
systems integration, compliance, risk management, and often
global coordination.
TECHNOLOGY
Freight forwarders must be familiar with technology that captures
rich transaction data and allows them to manage critical
information. Look for talent with backgrounds in similar industries,
such as banking, credit card, or utility companies.
With the rising emphasis on complex logistic services, the best
freight forwarders have attracted talented individuals with
fresh perspectives and varied backgrounds, many from outside
sectors. Expect this recruiting trend to continue. Their next
challenge will be retaining these cross-industry experts.
THIS IS HOW WE SEE IT.
ISSUE 2
This Is How We See It:
Freight Forwarding Talent, A New Breed
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JULY 2009 T h e O n l i n e E x e c u t i v e N e w s f o r C o r p o r a t e L e a d e r s
p10
Executive
Newswire
C B R E C B R i c h a r d E l l i s , G l o b a l R e s e a r c h & C o n s u l t i n g 2 0 0 9 E d i t i o n , E x e c u t i v e S u m m a r y
How Global is the Business in Retail:
CB Richard Ellis’s survey of 280 retailers across 67 countries examines the footprint of these
retailers at national and city levels, highlighting differences between sectors and regions
and identifying trends in global retail expansion.
Which country
attracts the most
international
retailers?
Key findings:
Almost half of all retailers in the survey
(46%) had some presence in each of
the three main global regions. However,
the globalization of retail is still at
a relatively early stage.
The United Kingdom remains the country
which attracts the most international
retails, with 58% of non-UK
retailers in the survey present in the
country. In general, Europe is the most
international retail market. All five of
the largest European economies are
ranked within the top eight international
retailer destinations.
Luxury retailers and those from the
clothing/footwear sectors are significantly
more international than retailers
from other sectors. Luxury retailers are
typically present in over 27 countries,
compared with an average of just over
14 countries for the other retailers in
the sample.
Which emerging
markets are
the new retail hot
spots?
The emerging markets have been a
major focus of new retail activity, the
rankings of the most “international” retail
markets have changed from last
year, with a number of markets making
significant moves up the global hierarchy:
notable amongst these were Saudi
Arabia (from 31st to 15th), Kuwait (from
30th to 19th), Canada (from 18th to
13th) and China (from 10th to 6th).
The pattern of new openings is due to a
combination of factors which have attracted
retailers to the emerging markets.
A common strategic driver has
been increasing consumer affluence
(linked to rising commodity prices
and/or inward investment). Finding
Which dominant
city attracts 60% of
all international
retailers?
Will global expansion
remain a key
strategic aim for
retailers?
London is the dominant retail city, attracting
almost 60% of all retailers in
the survey. Paris and New York rank
second and third respectively, with
Dubai in forth place. This is largely due
to their attractiveness to the luxury and
clothing/footwear sectors.
Retailers from all sectors continued to
expand their global footprint during
2008 despite a rapid weakening in business
sentiment and increased risk aversion
in response to the global
economic downturn. Retailers in the
survey were on average present in 16.5
international countries at the end of
2008 compared to 14.7 countries in late
2007 – an average increase of 1.8 countries
per retailer, or 12%.
Retailers have continued not just to internationalize,
but to globalize. Over
40% of all new openings during 2008
were outside the home region of the
retailer concerned.
suitable real estate is also a common
barrier to entry. The opening of a major
new shopping center is therefore often
the trigger for international retailers to
open their first store in the country.
In thinking about likely future globalization
of retail activity, it is crucial to distinguish
between short-term cyclical
patterns and longer-term strategic
trends. The strategic imperative to expand
their international footprint and
develop their brand at regional and
global levels will remain a key theme for
many retailers.
For some retailers, the current environment
may offer unprecedented opportunities
to seize market share, through
There were some variations between
different types of retailers domiciled in
different parts of the world. Growth was
primarily driven by luxury and clothing/footwear
retailers from Europe
(mainly, Italy, France, UK and Spain)
and, to a lesser extent, the US. On average,
luxury retailers opened in 3.4 new
countries in 2008, whilst clothing/
footwear retailers entered 1.9 new
markets.
Geographically, the primary beneficiaries
of this global expansion process
were the emerging markets, with Middle
Eastern, Asian and Easter European
countries dominating the list of new
openings. The presence of significant
franchising opportunities, particularly in
Asia and the Middle East, has helped
some retailers establish a presence in
these markets at a reduced cost, and
with lower risk than would have been
possible by establishing a directly managed
outlet.
organic growth or acquisition of weaker
competitors. Well capitalize private retailers
may have greater short-term flexibility
n their activities than their
publicly listed counterparts who face
greater scrutiny of their actions.
Tactically, retail expansion needs to be
viewed in the context of a very difficult
trading environment. Many retailers are
likely to delay their international expansion
plans, at least temporarily, until the
economic and financial outlook is less
uncertain
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Top20
S T A N T O N C H A S E I N T E R N A T I O N A L
Top 20 Most International Retail Cities
Rank City % of International Retailers Present
1 London 60%
2 Paris 50%
3 New York 47%
4 Dubai 46%
5 Madrid 44%
6 Moscow 42%
7 Berlin 40%
8 Munich 40%
9 Barcelona 39%
10 Tokyo 39%
11 Singapore 38%
12 Hamburg 38%
13 Hong Kong 38%
14 Milan 38%
15 Beijing 36%
16 Istanbul 36%
17 Manchester 36%
18 Vienna 36%
19 Rome 36%
20 Chicago 35%
Top 20 Most International Retail Countries
Rank Country % of International Retailers Present Rank 2007
2008 2009
1 United Kingdom 58% 55% 1
2 Spain 48% 47% 2
3 France 46% 43% 4
4 U.A.E. 45% 39% 6
5 Germany 45% 44% 3
6 China 42% 37% 10
7 Russia 41% 38% 9
8 Italy 41% 40% 5
9 Switzerland 40% 38% 8
10 United States 39% 39% 7
11 Belgium 38% 34% 12
12 Austria 38% 36% 11
13 Canada 37% 31% 18
14 Japan 37% 33% 13
15 Saudi Arabia 37% 24% 31
16 Singapore 36% 33% 14
17 Turkey 36% 30% 23
18 Hong Kong 34% 31% 19
19 Kuwait 34% 25% 30
20 Ireland 34% 31% 20
20 Poland 34% 32% 16
20 Portugal 34% 31% 20
Dubai Updates
Facts & figures
(Q1 -2009)
ISSUE 2
p11
Banking
*positive results –ONLY ↓4% profits &
↑2% assets
*ENBD ↑5% profits
↓ interest rates (EIBOR)
Dubai International
Airport
*traffic passengers ↑2% (April ↑6.5%)
*expected growth for 2009 is 10%
Tourism (source: DTCM)
*↑5% in hotel guests
*occupancy 73% vs. 86%
*Capacity ↑17% hotel rooms & ↑30%
apartments
*UK tourists 195k from 210k ↓7%
Electricity & Water
*Demand: Elec↑13% -water ↑7%
Population for 2009 (Source: MOE)
*UAE ↑6% -5.1m
*Dubai ↑8% -1.7m
Education(source: KHDA)
*registered students 46k vs 45k
(Indian schools in Dubai↑2%)
Dubai is the top FDI destination
city in the world by FT report
Real estate & Construction
sectors - concerns

JULY 2009 T h e O n l i n e E x e c u t i v e N e w s f o r C o r p o r a t e L e a d e r s
p12
Ask a headhunter:
By John McCool
Sharing experience, news, ideas
and other interesting facts from end to end.
Newswire
Executive
Can you afford a bad hire?
Connection established!
80%
20%
Indirect costs include:
Disruption of unit performance and customer relations
Loss of unit and leadership productivity
Potential opportunity cost
Dismissing and replacing lieutenants recruited for
departed executive
Burning of organizational goodwill, plus reduced morale
and retention
The Online Executive News
for Corporate Leaders
Write your contact details, send your email
to k.sakellariou@stantonchase.com
and you will receive our special executive newsreport
Regional Newsletter
for Middle East
Typical organizational perception of actual costs
of a bad executive hire
Direct costs
equal to 2-3 times executive’s annual salary
Indirect costs
equal to 8-12 times executive’s annual salary
Executive
Newswire
Direct costs include:
Executive’s initial recruitment and total compensation
Executive’s extraction from the organization
Executive’s replacement
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