Family Office Elite Spring_16

THE HEADHUNTERS
Proper executive placement
By Alan J Cutts,
Why you should use a specialist
executive search consultant to fill
those key roles?
Many years ago we were called in
to meet with a well-known, global,
investment house. The company had
been searching for a key investment
desk head for many months and had
retained an expensive and high
profile international recruitment
practice to find an appropriate
individual. They were now at their
wits’ end as the only candidates that
had been put forward on a shortlist
were people they knew already that
did not have any confidence in to
undertake such an important role.
The search company had produced
a mountain of research and had
taken nearly six months, effectively
to produce no real results.
When we walked into the meeting
we were confronted by the Head
of HR and the chief investment
officer. The Head of HR picked up a
beautifully bound report from the
incumbent executive search firm
and threw it on the desk in front of
us; she said, “we have paid £60,000
for this heap of rubbish (my word
not hers) and it is completely
worthless.” After we had examined
the research, we had to agree. It
was totally irrelevant and the vast
majority of its content was either
out of date or way off message. She
asked us if we felt that we could
pick the assignment up and turn it
into a silk purse. We picked up the
sow’s ear and ran with it! Suffice it
to say, it took five weeks to find four
potential candidates for the client,
each of whom could all tackle the job
in hand. This was choice enough to
reach a happy conclusion for them.
In addition, the client did not have to
pay another huge retainer up front,
just a small fee to cover the initial
research. The final fee was simply
based on the contract given to the
successful applicant, without extra
percentages for “entertainment,
messengers, contingencies and
estimated bonuses…” Also it is
important to note that there was no
fee due at a notional second stage;
we prefer to be paid on results.
On the other side of the coin we
have often been called in to meet
a client when their management
team has exhausted its collection of
“little black books” and Linked in/
outlook contacts.
To succeed as a specialist headhunter
a search consultant has
to be remarkably good at finding
appropriate candidates and filling
complex vacancies with unique
blends of skills. They should provide
clarity by acting as an objective
filter that functions on the facts, the
market’s opinions and on their own
informed understanding that has
been built on years of experience
in their market, supported by
the candidates’ responses to
a comprehensive array of key
questions that allow us them to
build reports that are an effective
way of comparing like with like. An
excellent consultant strives to move
from a “qualitative” opinion to a
more “quantitative” conclusion.
The simple fact is that no one can
compete with the combination
of experience and objective
knowledge about a specific industry
segment that a specialist, targeted
search consultant brings to the
table. Add to this the ability to think
out of the box and produce lateral
solutions for difficult assignments,
often where none appear to be
evident, and you will understand
why the specialist search consultant
can command both a reasonable
(hopefully not exorbitant) fee and,
more importantly, a great deal of
respect in the market from both
clients and candidates.
Serious search consultants generally
work on a mandated, retained,
basis because the initial retainer
engages both parties, committing
them to each other and building
a relationship and atmosphere
of mutual trust; the surrounding
contract defines the relationship
and etiquette going forwards. Also,
retained relationships protect the
client from the depredations of
a contingency only environment.
“Off limits” applies to retained
clients for an agreed time after
the latest retained placement is
effective – normally twelve months
or longer as agreed. Hopefully the
relationship between the search
consultant and client will develop
so that they need never think again
about time limits on off limits in any
case and the interests of client and
71
FAMILY OFFICE ELITE MAGAZINE