Your Search Firm: Valued Partner or Just Another Vendor?

The nature of your relationship with the search team has a significant impact on achieving success in challenging senior level recruiting projects.

In the highly competitive biopharmaceutical sector, where the “War for Talent” rages more intensely than ever, new clients often tell us that their old executive search “vendor” failed to achieve the results they expected. Although many factors can derail a particular search, in our experience the nature of the search firm-client relationship can largely determine success in senior level recruiting.  To make sure that you establish the right kind of relationship, there are several critical attributes to assess when selecting a search firm to lead a senior level assignment as well as key success factors for the search process itself.  Adhering to these guidelines promotes true partnership with your search firm and increases the likelihood of a smooth process and, ultimately, a successful placement.

First, senior level executive search is a complex and intensive activity requiring substantial time and collaboration. The perception that the search process is simple is inaccurate, and when the client, candidate, or search firm thinks otherwise, it threatens the success of the project.

As the company representative in the market, the search partner should have the intellect, communication skills, reach, and credibility to be a compelling agent for the hiring organization”.

Second, senior level executive search requires an in-depth knowledge of the industry and talent within the sector, as well as deep knowledge of the company, scope and expectations for the role, and the senior team and the culture in which a candidate is expected to perform. Gaining this knowledge and using it effectively to identify, assess, and advance qualified candidates is a critical component of the process. Thus a search partnership requires investing the time to get to know and understand the company as well as the executive profile. As the company representative in the market, the search partner should have the intellect, communication skills, reach, and credibility to be a compelling agent for the hiring organization. The team must also have good chemistry and establish mutual respect with the hiring line manager, the senior human resources executive, and often the Chief Executive and the Board of Directors. The communication must be frequent, absolutely candid, and transparent – attributes which characterize company-building relationships our industry has with the most progressive clients.

Selecting a search firm and search team
Figure 1 lists relevant factors to consider when selecting a search firm and search team. Clients must understand that the most important element of the selection process is selecting the best team of consultants to execute the assignment – from a top-tier firm with an impeccable reputation, access to talent, and the global reach to conduct complex assignments. However, firms do not solve searches; teams of search consultants do. Therefore, the strongest predictor of success in a search is the commitment of that top-tier firm to field the right team.

Figure 1: Factors to consider in selecting a search firm/search team

• A reputable firm with global reach, access to talent, and resources
• Recent, relevant experience with the same or similar roles
• Limited off-limits with key target companies
• A very strong consulting team to execute the search
• A consulting team with adequate capacity to properly execute the search
• In-depth knowledge of the job function
• Knowledge of and access to the best talent in the target market
• A commitment to conduct “fresh” research for every search
• The credibility and ability to represent the mandate in the market
• Willingness to invest time in learning about the company and culture
• A search team willing and able to offer advice during the process
• A proven candidate assessment methodology
• An intense focus on communication; frequent scheduled updates
• A strong commitment to quality and speed
• A best practice search process
• The personal intensity and work ethic to complete the assignment
• A strong commitment to the success of the search
• Professional polish; strategic capabilities; ethical and trustworthy
• Ability to provide references from clients who engaged the team for similar work
• Partners who have prior experience working together as a team

Some clients have long-established relationships with search firms and use them for the majority of their work because they understand the culture and have brought excellent talent to the organization. However, for assignments in which the preferred firm has limited experience, or to keep the preferred provider on their toes, several search firms may be invited to compete for the business. These gatherings, known as “shoot-outs,” provide the comparative perspective necessary for a good selection.

Some search firms have senior partners “sell” (compete for) search assignments, but have teams of more junior consultants actually execute the search process. When selecting a search team don’t let the search firm pull this kind of “bait and switch.” Make sure that the partners who won your business are the team you will work with day-to-day.

Make sure also that the team of partners and their support resources – associate consultants, research associates, and administrative staff – aren’t overloaded with other work. A team that is spread too thin often gets off to a slow start, can’t manage candidate flow quickly, often has trouble communicating frequently enough, and focuses on building “a panel of candidates” but not necessarily the best panel of candidates.

Finally, when selecting a search team, check references. You wouldn’t think of hiring an executive without such a check. Why take such a risk with a search team? Conduct due diligence on their process management, communication, insights into candidates, speed, advice, and commitment to success.

Managing the search process
Once you have selected the best team of consultants and agreed on terms and conditions, you must ensure that the process is well managed.  However, understanding the factors that lead to an excellent outcome and making them work are two very different things. The way you work with the search team to execute the assignment largely determines the ultimate outcome. Companies that expend the extra effort necessary to form a true partnership with their search team have measurably better outcomes than those that do not. This is particularly true when targeting a talent market that is exceptionally tight – for example, superlative clinical development professionals with a deep expertise in oncology; or highly talented marketers who possess creativity, classical marketing discipline, and a strong record of launching successful products.

Figure 2 identifies a number of search process best practices, many of which require substantial investment of time by the search team and client team. Making the necessary investment greatly enhances the chances of success when undertaking challenging searches. You are investing time and money in the use of a professional organization to assist you with a critical recruitment – why wouldn’t you want to maximize that investment and take full advantage of the skills and capabilities of the search team and the resources of the search firm?

Figure 2: Executive search process management best practices

Preparation

• Interview with the hiring manager, peer group, and other decision makers
• Align on the role (scope, responsibilities, performance expectations)
• Obtain an organization chart showing the role and all reporting relationships
• Achieve a good understanding of company culture
• Develop a candidate profile (experience, competencies, credentials)
• Create a well-written position specification; factual and a good “selling” document
• Agree on target compensation parameters
• Develop a clearly defined research and sourcing strategy
• Identify potential obstacles; develop strategy to overcome negatives
• Select the interview team for each round of interviews
• Develop expected timeline for each phase
• Discuss expectations for communication
• Ensure that overall expectations are realistic and well understood

Sourcing and assessing candidates

• Detailed recommendations/preliminary references from sources
• Detailed profiles of prospects reviewed with client prior to search firm interviews
• Candidates interviewed utilizing competency-based assessment methods
• Detailed and balanced candidate reports (strengths and weaknesses)
• Assess “knockouts” early (compensation, relocation, excessive unvested value, etc.)
• Written update reports prior to update calls/meetings with clients
• Small client teams for initial rounds of interviews
• Client emphasizes importance of search to support/scheduling staff; a clear priority
• Candidates well prepared for meetings (company info, biographies, etc.)
• Client prepares interview team for interviews (focus areas; competencies, etc.)
• Robust client feedback on each candidate to allow search team to hone profile
• Address candidate questions during subsequent interviews
• Continue reference process on two to three front-runners
• Manage the close from the beginning (relocation, spousal employment, etc.)
• After initial phase, assess progress, reassess approach, identify potential compromises

Closing

• Client and search team collaborate on final candidate selection
• Strive to have a “back-up” candidate nearly as qualified as finalist
• Verify finalist’s compensation and equity; understand finalist’s expectations
• Complete references and psychometric testing (if used) on finalist
• Develop offer terms and negotiation strategy with client
• Manage the offer negotiation process with client; avoid negative encounters
• Encourage continued contact between hiring manager and candidate through the close
• Assist with managing candidate advisors (attorneys, compensation consultants)
• Assist finalist with exit from prior company; overcome a counter-offer
• Assist the candidate with integration into the company
• Frequently follow-up with the placed candidate (at least quarterly); provide feedback to client
• Provide other value-added advice and content (compensation, organization structure, etc.)

As already noted, the up-front investment on the part of the search team and the client is critical.  The team must understand the culture of the company, how the senior management team communicates, plans, makes decisions, and resolves conflict. The level of understanding necessary to describe the culture to prospective candidates can only come through direct interaction with the management team.  It also enables the team to describe in detail to prospective candidates the background, role, and contribution to the organization of each member of the management team.

Equally important, in the initial management team interview process ensure that the team is strongly aligned on the scope of the role, reporting relationships, key responsibilities, important measures of success, and the ideal background for the candidate. Any significant misalignment at this juncture should be noted and addressed with the hiring manager and the human resources manager to ensure that the mandate for the search is clear. Achieving alignment also enables the team to communicate consistently in their interviews with candidates.

In the search preparation phase, the search team should also set appropriate expectations with the client. Potentially negative aspects of the role or the company and the impact these may have on the ability to attract the most talented candidates must be carefully assessed, and appropriate messages to address the negatives must be developed. The client must also be realistic. For example, if the client describes the qualifications and expectations for a senior vice president, but the mandate, compensation, and scope are appropriate for a vice president, the client is likely to be unimpressed with the ultimate candidate pool.

Developing a position specification that accurately reflects the role’s scope and responsibilities, as well as the ideal candidate profile and target competencies, serves many useful purposes. Validation of the content of this document creates the platform for alignment. Seeking feedback from the senior team on the specification creates buy-in to the project and allows differences of opinion to be shared and resolved. It also establishes a clear targeting and sourcing strategy, which is essential for success. Finally, the document should be written to be both factual and to serve as an effective “selling” document. Often, this document is the first exposure potential candidates have to a company, so it should make a compelling case for the role in order to generate real interest from qualified candidates.