IACPR Global Conference: Senior Executive Talent Strategies

Judy Boreham, Managing Director at Diversified Search, and Eileen Finn, Founder of Eileen Finn Associates, are Co-Vice Presidents of the IACPR’s Global Conference Planning Committee. Long-time members of the IACPR (each over ten years), they are in close touch with our membership – chief human resources officers, corporate talent acquisition executives and retained search partners – to understand the issues in acquiring, developing and retaining top leadership teams. Here they talk about how the IACPR delivers our content-rich conferences and the real value members receive. 

Eileen Finn:  I started attending the IACPR Global Conferences about 10 years ago, and still, each time, I come back with a deeper knowledge of building leadership teams. The Planning Committee spends many hours learning what the audience wants to discuss and who the best thought leaders are, so the conferences deliver major strategic thinking and practical execution tips.

 

Judy Boreham: This is a really unique organization. There is no other association where corporate decision makers and retained search heads share a common platform, in an environment of complete trust and sharing. With the strictest of non-solicitation policies that we enforce for all attendees and sponsors. 

In this market, C-level talent becomes exceptionally critical to help companies keep competitive and thrive. At the same time, executives are expecting more from employers – exacerbated by the generational shifts we are seeing throughout the corporate world.   

The IACPR Conferences are the best in their class. The people in the room are those who are making changes to the senior talent market – the people who are regularly quoted on cutting edge issues – and they have come together at the IACPR Conference to share their insights.  

This Conference is always at the top of the list; it  has the best content and the best attendees, and everybody gets so much out of it. 

Eileen Finn: One of the key areas we are focusing on is the frustration that many senior candidates feel throughout the recruitment process. There is too little feedback or communication between candidate and corporation – and in this environment, with talent shortages at the leadership levels at such a premium – companies can’t afford to alienate their sources of future leaders.  

Candidate dissatisfaction has a profound impact on an employer’s brand – and changes the perception of that company in the marketplace. Any company that doesn’t recognize that anything and everything is out there on the worldwide Web is fooling itself. 

Judy Boreham:  Both companies and candidates have become much more risk averse. For companies, this means they are looking for more consensus – and will invite a larger group of people to vet the candidates at the interview stage. This slows everything down. Then candidates are taking much longer to make critical career decisions.  All this adds to the tensions.

I have a client that knows there is an active blog out there about the company, and not a particularly favorable blog. They have responded proactively, using the information to make needed changes. But this has to happen quickly and honestly. The smart companies are addressing it head on. 

Eileen Finn: Diversity is an area in particular where “walking the talk” is critical. Candidates are looking for integrity and a sound history in diversity initiatives. It’s an area where too little too late is very hard to overcome – and without diversity at the executive level, a company can quickly become out of tune with what is really happening with its customer base. And then lose out to the competitor who has kept diversity initiatives at the fore front and ongoing as it builds its leadership team. 

Judy Boreham: These are just a few of the challenges that companies are struggling with today – and that the IACPR Spring Conference 2013 will be addressing. Believe me, the Conference never disappoints.  

Eileen Finn:  Not only do we have a content-rich agenda. but one of the major byproducts of getting all these outstanding senior people in the room is the collegiality and sharing among the attendees and the networking opportunities that occur. The friendships you forge here are for life – so many successful alliances have resulted from the IACPR. 

Find Out More at www.iacpr.org!

Preparing for the Boom, Adam Lloyd

IACPR Board member Adam Lloyd is Founder and President of Webber Kerr, a global retained executive search and leadership consulting firm headquartered in New York and Tampa. In a recent article for HRO Today (Vol. 11 No. 6 - July/August 2012), Preparing for the Boom, he focuses on how to proactively address the transition to the next generation of leaders as Baby Boomer executives retire from the workforce.

My father just turned 65 this April, has worked for one of the world’s largest aerospace and defense companies for the last 30 years, and refers to himself as “one of the last dinosaurs” left in his group. He joins 78 million baby boomers (born 1946–1964) who are currently reaching retirement age at the rate of 10,000 per day, which will continue over the next 19 years. This generation has had a tremendous impact on the current workforce and there is a need to squeeze every ounce of knowledge and experience from the soon-to-be retirees. With the figurative and literal clock ticking, there is an opportunity to develop younger and newer generations to have a similar effect. So who better to ask about this movement than a baby boomer?
Dad, why do you think you have been retained as long as you have?
That’s a great question (laughs). In an environment that defines success by profitability and works from contract to contract, it takes specialization and processes that have been put to test. My background is somewhat specialized. I guess I have been part of creating what works and what does not, 30 years of trial and error. Work ethic has always been instilled in me.
How are you working with younger generations in your organization today?
I am fortunate to be in an environment that hires students who have been at the top of their class and exceptional external employees. Because we are not overly supervised, it’s common to see very bright new hires get lost in meetings, not connect culturally, and make unsuccessful attempts to reinvent the wheel. I try to mentor and improve efficiency with younger generations. I can save them time by teaching process we’ve created over the years, help them make personal transitions into our culture, and serve as a safety net to rely on for questions and advice. Believe me, I gain a lot too—they teach me about new technology, tools, and communication.

What value do you think you are adding to the younger generations?
Our diversity, ethics, and mentorship committees could probably answer that better. I would like to think aside from the technical and process teachings, I am making their new career life an easier and more comfortable adjustment as they are to my exit. I believe I am a quick go-to, supplementing the more formal training and orientation sessions. They are more confident in meetings by relating to the culture, saving some time in project delivery, and hopefully will be better prepared as future leaders.
Hearing this directly from a baby boomer reiterates the point that organizations taking a proactive approach to planning for this generation’s retirement have a lot to gain. Well-planned knowledge transfer to new, external hires through mentoring and assimilation programs is proven effective. So now the key question is: How do you achieve success here? What’s the recipe? Having worked with public and private companies from start-ups to Fortune 100’s, I realized it’s no surprise that organizations operate uniquely.
However, there are fundamental principles to create a foundation for backfilling the positions of the transitioning baby boomers while leveraging their years of expertise. The most successful organizations accomplishing these initiatives have been proactive in their strategies, seamless in the execution of experience transfer and transition, and have earned internal buy-in through education. Companies that do it right have a sense of self and apply thoughtful consideration to the size and scope of their business and cultural needs. Once you understand your own corporate make-up and human capital objectives, a set of key steps can be applied to harness the generation shift with ease.
Getting Started
The first step in the formation of a transition or assimilation program for external talent succession planning is to determine if you have the internal infrastructure to execute the program. Is bringing in an external firm to guide and advise your teams necessary? An in-house team will know the organization and culture, understand the talent that currently exists, which areas of the organization are at risk to retire, and the current tactics to bring in outside talent. An outside firm offers an objective assessment of your organization and the best practices of previously leading similar initiatives.
Whether managing internally or via a third party, organizations must strategically develop a leadership bench through early preparation for knowledge transfer. More time equates to a smoother transition—especially for specialized roles—and results in greater success adapting new employees to a corporate culture that emphasizes mentorship.
Developing the next generation of your organization requires sourcing for talent, an acquisition plan, and a transition program. The talent may exist internally or may stem from recent graduates, competitors, or target companies. The hiring phase—whether done internally or through external sources—will require the incentive to attract talent into a mentorship program. The career value of exposure to various functional areas through business rotational programs is a unique opportunity for new hires to expand skill sets while gaining baby boomer perspective from multiple divisions. Upward mobility, whether on the front end or back end, may lead to a faster track to leadership or increased responsibility.
With incentives in place for building future talent, what’s the motivator for exiting baby boomers? I think back to the conversation with my dad. The value is seeing work done efficiently, the moral accomplishment of helping new hires, and continuing their dedication to a company they have been loyal to. Some companies even offer monetary incentives to stay on for a duration of time—basically a contract to mentor—to help develop an incoming class of new hires, to guide a project, or to formally join internal committees.
A strategic assimilation and training program must be developed and tailored to your company’s needs. If a rotational program is selected, it’s a matter of identifying the businesses and functions to deploy it. If direct mentorship is chosen, understanding where the most capable leaders in your organization sit is critical. Any approach starts with gaining buy-in and commitment throughout multiple tiers of the organization.
Getting Buy-in
Investment from the baby boomers to actively participate and train the next generation is a necessity to success. Some individuals will embrace the mentorship opportunity as a meaningful responsibility, while others—as they are nearing the end of their careers—may not be as fully committed. Incentive—whether its recognition or monetary—can be a differentiator. Internal education of a streamlined program will get everyone on the same page and increase the likelihood of both buy-in and successful participation.

Staffing and recruiting teams are the first impression external candidates will have so be sure they are knowledgeable, soft in approach, and committed to selling the program. HR teams need to educate recruiters on the assimilation and training program. Results-driven activity and seamless onboarding for new hires is key.
The hiring managers’ dedication to future leadership will result in the knowledge transfer from baby boomers to future generations while injecting diversity into the organization with a fresh wave of external experiences from new hires. There is still time to leverage all that the soon-to-be retirees have to offer. Although my father is a self-proclaimed “dinosaur,“ I feel he believes he has many contributions left. I imagine there are others—take advantage of it.

 

Executive Recruiting: "Best Possible" and "Whether or Not," Caroline McClure

Long-time IACPR member Caroline McClure, founder and Principal of ScoutRock, provides consulting and networking services to corporate executive recruiting and executive-talent management leaders. She also helps human resources professionals better understand and leverage the executive recruiting profession. Prior to founding ScoutRock, she was the Director, Executive Recruiting at Lockheed Martin. Here she defines what sets  executive recruiting apart.

The differences between executive and other types of recruiting include not only level, but the scope of the sourcing pool, the sourcing strategy, the client and candidate management, the visibility, and therefore, the risk. The objective of executive search is to partner with hiring executives to fill senior positions with the best possible talent whether or not that talent is seeking new opportunities.

Three aspects of this definition begin to differentiate executive recruiting from all other. The first is the exclusive focus on a narrow level of positions-- senior-level (I would argue that is within three steps of the organization’s head), and the second and third are the objectives of obtaining the best possible talent whether or not those individuals are currently seeking new opportunities. They are small phrases, but “best possible” and “whether or not,” change the game and differentiate executive recruiting from all other.

“Best possible” and” whether or not” suggest that the sourcing and vetting processes are both extensive and exhaustive. They change candidate sourcing from applying database search strings to talent prospecting through targeted-company and targeted-individual research strategies. They mean the recruiter doesn’t stop identifying and recruiting new prospects even though several qualified have been identified. “Whether or not” and “best possible” requires the recruiter to convince prospects to endure a thorough vetting process, to entertain risk, a new opportunity, a new company, new customers, and often a relocation even though they have no reason or initial desire to do so. Together, “best possible” and “whether or not” change the candidate relationship from an exchange to a courtship. These phrases change the employment conversation from a job opportunity to career development, the assessment from an interview to a dialog, and the client and candidate interaction from a transaction to a consulting engagement.

Executive differs from other types of recruiting, not only in level, but also in the approach to the search from a sourcing perspective as well as from a client and candidate management strategy.

Are Leaders Smarter Than Dogs?: Executive Suite Succession Planning, Tom Casey

Tom Casey, Managing Principal of Discussion Partner Collaborative, spoke last year at the IACPR Global Conference 2011 on talent readiness – and the top ten human capital challenges of the new decade. He is an expert on the development of organizational transformation strategies for rapidly growing multinational or transitioning organizations, consulting in over 20 countries and virtually every economic sector. He focuses on working with companies to conceptualize and execute enterprise strategy, organization design, change management and innovative human capital initiatives; on creating strategically aligned leadership development initiatives; and on developing human capital initiatives around workforce planning, employee engagement, sourcing, globalization, mergers and acquisitions.

Here he addresses the dysfunctional approach so many companies take to succession planning and leadership development. 

Anyone who is from the US has heard the adage “the dog is barking up the wrong tree”?

The luckless dog is presuming that there is a cat in the tree, deserving of their attention.  Yet we humans in our infinite wisdom realize the cat is either long gone, or is quite happy mocking the dog from a different tree?

We could take the view that the dog is stupid, yet as it relates to Succession Planning are we leaders not representative of this hapless dog?

If we look at the numbers from various sources it is not a leap of logic to believe so:

·        35% of companies have a Succession Plan with “integrity”(SHRM)

·        78% of companies have some form of Succession Planning “strategy”(Corporate Leadership Council)

·        50%+ of the Fortune 500 Board Directors for the Fortune 500 are “unhappy” with their companies Succession Plan(HBR November2011)

·        Average tenure of a Fortune 500 CEO is approximately 3.5 years(HBR November 2011)

·        Age 65 is usual and customary age for “executive retirement” directly contradicted by DPC research that indicates the age is more likely to be 62 “after a phase down period”(December 2012 Study The Art of Executive Boomer Management)

At a recent Discussion Partner’s strategy session like the dog who wanders away from the tree feeling embarrassment, we felt that we as consultants  needed to acknowledge “Succession Planning is a dysfunctional process the outcome of which is to provide little to no value to the enterprise.”

Yet metaphorically the cat was not imaginary and enterprises do need a replenishment process to promote sustainability.

Discussion Partners conducted an internal audit of our client experience on Leadership Succession since the firm was founded in 2007.

Our overarching conclusion was the fatal flaw is Succession Plans are too internally focused by limiting the question to “who do we have and when will they be ready”?

DPC suggests a modification of a Null Hypothesis (the process for challenging assumptions/strongly held beliefs by attempting to disprove) is more appropriate.

For example in the movie Moneyball the focus on On- Base Percentage vs. Individual Statistics was the null hypothesis theme expanding the analysis of proficiency beyond batting average.

This approach led the Boston Red Sox to 2 World Series Championships in the past decade after approximately 90 years of frustration (yes a number of DPC Principals live in Greater Boston).

DPC has begun promoting a new approach, Continuity Planning loosely defined as promoting enterprise growth through ongoing replenishment for critical roles accessing both internal and external labor market candidates. 

The key words in the above  are on-going, internal, external and critical!

Essentially our modality has the following steps:

1.      Identification of Mission Essential roles beyond those traditionally embodied in a Succession plan(for example Actuaries in and Insurance Company, Internal Controls in a Finance function)

2.      Identification of no more than 4 Critical Success factors for the aggressive development of high potential managers

3.      On-going “rack and stack” of managers for role suitability or ascension….focused initially on the question “are they the best the internal and external marketplace has to offer”

4.      Identification of external applicant sources inclusive of gathering competitive intelligence identifying suitable external candidates to “raid” if needed

5.      Creation of a Dashboard for quarterly updating regarding role identification, internal candidate status, and external labor market opportunities.

Discussion Partners perceives the benefits of this approach as having the following key elements:

1.      Broadening the discussion about internal readiness to encompass a broader dialogue on internal/external marketplace availability

2.      Ongoing vs. episodic review of leadership alignment with a broader number of roles essential to the enterprise

3.      Increasing the ability of the organization to be innovative in terms of role architecture, organization design, phase down of executives, through a broader definition of work to be accomplished and resources to accomplish same.

Our client experience to date using this new approach has been encouraging.  There is a possible added benefit according to one of my colleagues, “reduction of eye strain  reading  Succession Plans with the foreknowledge they are likely more fiction than fact.”

Framing Corporate Social Responsibility Through Product Philanthropy – How IACPR Member Firms Can Give Back, Carly Fiorina

Over the past three decades, Good360 has distributed more than $7 billion worth of product to nearly 30,000 nonprofits in its global network. Donated goods - clothing, housing supplies, building supplies, toys, books, computers and more - make it possible for organizations to focus on their core mission. Monetary donations to Good360 help defray the costs of the logistics of getting donated goods to their new home, and, on average, every dollar donated can help deliver up to $70 in goods.

IACPR Board Member Ellie Hollander is Chief Strategy Officer for Good360, which just received the Committee Encouraging CorporatePhilanthropy Directors’ Award with The Home Depot, recognizing an exemplary partnership between a corporation and a nonprofit.

Just this past April, Carly Fiorina, former Chairman and Chief Executive Officer of HP, became Chairman of the Board for Good 360. Here she shares her views on how a corporate/non-profit partnership can make a difference.

Corporate. Social. Responsibility. Three commonly used words that when standing alone don't have much impact, but when woven together, have the ability to sustain, influence and engage. Good360, the nonprofit I recently joined as board chair, has been making corporate social responsibility (CSR) both accessible and advantageous through product donation since 1983. As a former CEO of a Fortune 20 company, I know that CSR isn't just a trending catchphrase. Good360's philanthropy model can improve your bottom line, build employee engagement and improve sales as a socially responsible company all by donating merchandise you might otherwise be paying to store, destroy, or liquidate for pennies on the dollar.

On June 5th, the Committee Encouraging Corporate Philanthropy (CECP) announced Good360 as the recipient of its Directors' Award -part of the 2012 Excellence Awards in Corporate Philanthropy. Since 2003, CECP's Board of Directors has presented the award and corresponding grant to a nonprofit demonstrating an exemplary partnership with a corporation. We received this high honor due to our work with The Home Depot and the innovative program we created together - Framing Hope.

The Framing Hope Product Donation Program was born out of the desire of The Home Depot's (THD) associates to donate products - set to be returned to a distribution center or thrown in a landfill - to help the communities where they work and live. Executives at The Home Depot recognized the importance of responding to the grassroots plea of their employees to give back. They saw the benefits of donating over liquidating or destroying, and invested time and money to effectively engage employees in stores across the country to partner with local nonprofits.

More than 1,000 Home Depot locations across the country currently participate in Framing Hope and distribute product donations locally, allowing recipient nonprofits of all shapes and sizes to stretch their budgets further and enhance mission-focused programs. Good360 ensures marked-down inventory, buy-backs, returned merchandise and end-of-season items are placed with qualified organizations that are working to make their communities better.

Looking to analyze the true impact of this program, in 2010 Good360 and The Home Depot Foundation worked with Indiana University to measure the program's environmental and community impact. The research concluded that almost 500,000 low-income families were reached within one year of the program and within its first two years, Framing Hope diverted 2,500 garbage trucks of compressed waste from landfill. In addition, the energy-efficient usage of products from Framing Hope products saved enough electricity to power 294 homes annually and the energy already saved is equivalent to the carbon sequestered by 90,138 tree seedlings grown for 10 years.

The Framing Hope program is a terrific example of how two organizations can collaborate to positively impact the triple bottom line - people, planet, profit - and deliver measurable results to communities in need. Thanks to the partnership with Good360, The Home Depot was able to achieve their strategic goals to meet zero waste initiatives, cut costs and drive supply chain efficiencies, engage employees and give back to the community. Good360 was able to continue supporting nonprofits serving communities, small and large, that make up the nation's safety-net programs. We envision a world where like recycling, product donation becomes a habit and we are thankful for responsible companies like The Home Depot who have already adopted our win-win philosophy.

If you would like to learn more about what you, as an IACPR member and supporter, can do to partner with Good360, please contact Ellie Hollander directly at ellie@good360.org.

Driving Business Value Through Innovation in the IT Executive Suite, Judy Homer

Long-time member Judy Homer is the President of JB Homer Associates, a retained executive search firm with the global experience, reach and assessment skills needed to source technology and operations executive talent in a global market. The firm’s searches cross all industries and all borders, with a completion rate within clients' desired time frames that exceeds 90% of search assignments. Here, she discusses how companies are creating innovation through information technology. 

Given the rapidly expanding and competitive global marketplace, and with fewer opportunities for growth, the demand for the innovation of unique products and services and expeditiously bringing them to market are dramatically on the rise. To successfully drive business value through innovation, information technology is evolving from being an order taker to becoming the central nervous system and a key strategic partner with the business.

We have seen our clients drive innovation through the establishment of business partnerships between information technology and the C-suite of executives, with business information officers imbedded in the business, and through sharing strategic plans with external vendors. By leveraging these relationships, senior technology leaders are establishing strategies for innovation in order to facilitate a competitive edge economically to their organizations. Strategies for driving innovation through information technology vary, but the common denominator is being able to provide new products and services to the marketplace ahead of the competition.

We have seen our clients establish research and innovation labs as a vehicle for both individuals inside and outside of information technology to create ideas for next generation products, and for the development of a process to get these ideas into production. It is important to develop a culture to allow people to go down the path of innovation and enable experimentation without them being criticized for ideas that do not come to fruition, as has been historically evident. Companies are immersing their information technology people in the business and having them interact directly with the marketing professionals and other key business leaders to create a “virtual water cooler” to foster innovative ideas.

It is important for technology leadership to have close interaction with their customers, both internal and external.

These partnerships can be maximized by assessing their needs and translating them to drive profound business value by leveraging emerging information technology trends. Creating dashboards to measure success is crucial as well, given the criticality of rapidly delivering new products and services to market. It is also important to constantly be on the forefront of technology as products can become obsolete. The convergence of the cloud, social networking and mobile computing is being closely looked at as leading edge technologies to help drive innovation.

Being able to get buy in from the board and senior management is vital for the successful creation and delivery of innovative products and services. A compelling business case and strategic rationale needs to be crafted in order to demonstrate the benefits of generating new ideas and aligning them with the business strategy. Acquiring the necessary funding and appropriating a portion of the information technology budget to innovation is imperative to effectively drive business value and therefore give your company a competitive advantage.

Stay or Go:Senior Executives Speak Out, Kathy Freeman

Kathy Freeman of The Kathy Freeman Company is a long-time IACPR member and very involved in the planning for both the IACPR Global Conference and our series of Forums for boutique retained search firms. The Kathy Freeman Company, which focuses exclusively on assignments within the investment industry, has concluded its latest proprietary research designed to identify current trends among senior sales and marketing executives. The trends identified in the paper can be leveraged by CEOs, their human resources partners or line executives to design a more effective and relevant approach to retaining or attracting this critical subset of talent.

• What key motivators, inherent to this group, are getting overlooked by financial services firms?
• Has the financial market's uncertainty and the industry's "crisis events" taken a toll on this high performing talent pool?
• Is the financial services industry at risk of losing key talent?
• What actions can firms take to minimize their risk of attrition?

For example, the survey reveals that 56% of respondents are considering a change in their employers going into 2012. However, it is the underlying gap between those who want to make a change and those who have actually executed on that desire over the past several years that indicates a trend towards pent- up demand, or a high volatility index, for these industry leaders.

In this year's study, there are indications of not only career fatigue from this highly optimistic talent pool, but the data collected also suggests a risk of flight from the financial services industry altogether.
At The Kathy Freeman Company, this research supports the daily conversations we have with senior leadership across the country. Namely, that this high-performing talent pool needs a forum from which to make a difference.
If you are a firm within the investment industry, either managing money or providing services to the investment industry, you will need to demonstrate forward-thinking momentum in your organization.

Otherwise, it will be difficult to attract or retain the top performers in your sales and marketing ranks. The risk of inaction for these firms is significant. If senior executives are not careful, when the competition crafts their growth initiative and reaches out to the best and brightest in the financial services community, their ability to make that “Should I Stay or Should I Go Now?” decision won't be at all difficult to do.

To access the 2012 research paper, “Should I Stay or Should I Go Now?”, visit The Kathy Freeman Company or call 800 883 3232.