Looking for Ms Right

Somewhere out there is the perfect executive. This person will fit like a glove into your culture, breathe new life into your sagging bottom line, inspire the foot soldiers to march to dizzy heights, run rings around your competitors and bring much-needed diversity to your executive profile.

The problem is she`s not looking for the job - nor any job, actually. Not only does she already have one, but she`s handsomely paid, is probably quite happy where she is (for the moment) and has all the share options and other golden chains that employers clip on when they find great talent.

Never mind all of these side issues. First, you`ve got to track down this person - the local equivalent of IBM`s Lew Gerstner, General Electric`s Jack Walsh or Wall Street`s perennial darling Warren Buffett.

You won`t find their CVs on a career Web site, nor sent in reply to ads in the Sunday papers, nor on the books of the average recruitment agency. As any executive searcher worth the retainer will tell you, SA`s top talent doesn`t wear its resume on its sleeve.

"Anyone who`s waiting for a job is not top of the pile," says Bryan Hattingh, CEO of executive search and coaching firm Cycan. "The majority of people out there on the market, particularly if they`re not working, are not in your first line of selection. Okay, I accept that there could be remarkable talent, but can you afford to take the risk? You`re not expecting them to learn to shave on your chin."

There are many misconceptions... One, that executive search is easy. Two, that anyone can do it. Three, that it`s expensive. Four, that it falls into the same campus as recruitment. Five, that it`s about picking up the phone. Six, that it`s quick...

Bryan Hattingh, CEO, Cycan

Lesley Mawhinney, head of the ICT Practice at Leaders Unlimited, is less blunt but her sentiments are similar. "Recruitment targets people who are looking for a job, meaning they`re available. Good people are not always looking for a job."

Well, then, that puts paid to your high hopes of finding the best financial director or account executive in SA.

Not necessarily. Possibly without even realising it, your prized prospective executive might be reaching a point of departure in their career - or running out of runway. If they only knew about your company and the magnificent match the two of you might make, they might consider making the move.

Easy does it, though. This type of person is easily scared off. One sure-fire way to frighten away top talent is to take the shotgun approach. By blasting away with all barrels, hiring every recruitment agency or executive search firm you can enlist, count on it that the person in your sights is going to run for cover.

"The shotgun approach is unprofessional," says Mawhinney. "Because the candidate is employed and successful, the approach has to be absolutely non-threatening."

In any event, she`ll walk away from an assignment where multiple search teams are involved. "The crux of executive search is that it`s very scientific, very controlled and very confidential. I`m approaching people confidentially, and if I don`t have control of the process I`m risking our good name. Candidates will only talk to us if they know they`ll get the utmost confidentiality."

That doesn`t mean search companies snare unwitting candidates flattered by the idea of being headhunted, no matter how softly-softly the approach. "I`m not going to move someone from a job where they`re doing well for the sake of a fee," says Mawhinney. "I have on many occasions said to a candidate, 'I don`t think this is right for you` because of culture or personality incompatibility."

Says Hattingh: "Many companies want the best person for the job, so they throw out a line, a spear gun, a harpoon, whatever, to woo the guys. And you might go for it, particularly if you`re caught unawares. Hey, it`s nice to get a call from someone who thinks you`re hot. So you take the bait and end up in a position that`s a fraction of the job you`ve been in. That`s bad for the company and the candidate. At best, you get coolness, calmness and reticence, which will have a negative impact on the company. What you want is people who inspire."

So beware, companies desperate for talent, of using what Hattingh calls "singles club" tactics. "If your motive is to impress, to get someone into bed versus having a relationship, you`ll do whatever you`ve got to do - the end justifies the means. You`ll both end up being sorry. We`re not going out and seducing the most talented and experienced people. They`ve got to love and be energised by what they do."

The notion that good people can be lured by making the offer as enticing as possible is a common misconception about executive search.

"There are many misconceptions; I`ve got a whole bunch," says Hattingh, counting them off on his fingers. "One, that executive search is easy. Two, that anyone can do it. Three, that it`s expensive. Four, that it falls into the same campus as recruitment. Five, that it`s about picking up the phone. Six, that it`s quick. And that`s just off the top of my head."

The shotgun approach is unprofessional. Because the candidate is employed and successful, the approach has to be absolutely non-threatening.

Lesley Mawhinney, head of the ICT Practice, Leaders Unlimited

That`s quite a list, so let`s deal with three myths that executive searchers say they bump up against the most: that executive search is easy, quick and costly.

Both Hattingh and Mawhinney say this is not something just anyone can do. Sadly, though, South Africans tend to blur the lines between recruitment and executive search. They`re not remotely similar.

"True executive search is actually a business consulting service, not a human resources service," says Hattingh. "Although search and recruitment operate in the same basic space, there`s a huge difference between them. It`s a bit like the medical profession, where you get physiotherapists, GPs and neurosurgeons. They`re all in the medical space but they don`t do the same thing. So it`s not that executive searchers are lofty beings or better than recruitment companies - we simply do a different job."

Where executive search is most valuable, he says, is in making strategic appointments, "whether that means a responsible executive position or finding scarce resources. For instance, if there are only five people in the country with the skills you`re targeting, how do you attract and retain them?"

Mawhinney, who is also concerned about confusion over the role of search versus recruitment, says she`s noted a new search trend among local companies seeking ICT skills, her specialist area.

"Generally, the ceiling for executive search is rising; companies across the economy are using search to look at chief executives, chief operating officers, boardroom-level people. In ICT, however, the ceiling is coming down to middle management and specialist skills."

The reason for the falling ceiling, she says, is the changing ICT skills profile. "Companies are looking for a new calibre of person: someone who knows about widgets but can also explain what the widgets will do for the customer`s business. There`s been a swing away from the product-driven approach to business-driven solutions, so IT companies want people with business literacy as well as the technological knowledge.

"Plus, there`s the empowerment angle. This skills profile is hard to find and competition for it is going to accelerate when the ICT empowerment charter is finalised."

Which brings us to the ease-difficulty factor of executive search. While high-level skills are scarce, they can be found if you look in the right places, for the right qualities, for the right reasons.

"Often, companies base their decision on the hard skills and a hard track record," says Hattingh. "It`s the soft skills, the stuff that conjures up the image of motherhood and apple pie, that you need to look at. If you truly believe that people are the differentiator, then you have to look at as many of the facets of the person as possible."

That means penetrating the surface for the qualities that he says make executives and companies fly: passion, purpose and commitment. "Along with culture fit, a sense of excitement is the most important reason for hiring anybody and, more than anything else, that`s what I look for."

So the search is thorough, spreading wide and going deep. Typically, executive searchers start by hunting through their own, jealously guarded databases. Cycan`s database, containing the details of more than 14 000 executives, has been built up over 12 years. Leaders Unlimited`s is an "intelligence-based" database that Mawhinney says is "our own; nobody else has access to it".

Having taken a scientific snapshot of the market, typically the next step is to get a closer view. "Our researchers, all of them graduates, go into the market and network," says Mawhinney. "They identify the key players with the skills sets and make the first point of contact in a non-threatening way."

After that, candidates meet Mawhinney for an interactive session, during which she and the candidate decide together whether or not to pursue the opportunity further. If the decision is yes, she hands over a shortlist to the client.

It`s only at this point, when a candidate is selected, that market referencing is done. "It can`t be done until both sides are committed. Remember, the candidate is employed and successful and you can`t risk their reputation. We also do a full credit and criminal record check."

If all goes well, the candidate receives an offer - but the search firm`s task is far from over. "There might be a counter-offer to deal with, or a restraint on trade agreement," says Mawhinney. "They might also have to be compensated if they hold share options that they stand to lose, or bought out if they owe their employer money. For instance, a candidate may have done an MBA through the company and find themselves having to pay back R100 000 if they leave."

All these reasons explain why executive searchers say their task is not nearly as simple as some might think. It also explains the perception that the service is expensive.

We are often approached when companies are at the end of their tether, when they`ve tried all other channels and have failed. They`ve spent money, they`re frustrated and it`s urgent.

Lesley Mawhinney, head of the ICT Practice, Leaders Unlimited

Mawhinney is matter-of-fact about the costs linked to executive search. "We get retained on a consultancy basis, the reason being that the bulk of the work is done upfront and resources are put in right at the beginning. The retainer system also shows commitment on both sides. And the service also carries a guarantee, which attests to its success. We guarantee all placements for a year, which means that, should they leave because of non-performance, we will replace them. I`ve never had to do that."

Cycan also provides performance guarantees. "We have a risk-sharing model, covering over-performance as well as under-performance," says Hattingh. "I cannot think of a single instance when a person didn`t deliver what the customer had hoped and expected."

Tackling the perceived cost of executive search, he says: "If I get it right, if the person meets and exceeds your expectations, what`s it worth to you? Would you pay R1 million for someone who adds R5 million to your business in the first year? Well, I`m not going to charge you R1 million, probably R300 000.

"But look at the cost of hiring the wrong person," he says, citing the R140 million price tag that SAA paid to persuade former CEO Coleman Andrews to leave.

"I haven`t even started talking about the opportunity cost of hiring the wrong person, where the competition is all over you like a rash. On the other hand, look at the value of hiring the right person, someone who could turn a loss into a profit and give you sustainability. How do you put a value on a magnificent fit?"

The reality is that many South African companies have a "jaundiced" approach to the costs and rewards of executive search, he says. "Sometimes, you tell them the fee structure and the guys have an apoplexy because they`re looking at costs and not the value. In certain cases, there`s even a debate about who is going to charge you the least!"

When that happens, and specifically when a client shows early on that cost is the main criterion, "we get up and walk out", says Hattingh. "The client doesn`t understand the value proposition and they don`t truly understand the value of people. Cheap is expensive. Cheap doesn`t work, it doesn`t last. If you go for recognised brands, most times you get quality."

Executive search firms also say many companies are in a hurry by the time they take the search route.

"It is often rushed," says Mawhinney. "We are often approached when companies are at the end of their tether, when they`ve tried all other channels and have failed. They`ve spent money, they`re frustrated and it`s urgent. We would like four to six weeks, but we`re often pushed to deliver in two to three weeks. It can be done if you use experts and, of course, you want to do your best for the clients."

Hattingh is less sympathetic. "Few companies have a 5-, 10- or 15-year plan. Mostly, they operate reactively. Joe Bloggs resigned, died or was poached, and they`re on a mission to fill the post now. They ask 'How long is this going to take? Two, three, four or five months? We`ve got to have them tomorrow.` Rush, rush, rush," says Hattingh. "I`m not saying this is always the case, but there is an appropriately high level of it."

However, he does offer a way out for hard-pressed companies in a flap for a successor. "Why not hire an interim executive? There are lots of top, top interim executives you can engage for six months, giving you the space to go about the process correctly."