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Judith Cushman & Associates Retained Executive Search in Communications Judy Cushman's Blog |
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The Cushman Report To subscribe to the email version of The Cushman Report, please send a note to info@jc-a.com with "subscribe" in the Subject line. Click here to view past editions. The Cushman Report Breaking News, Trends and Information about the Communications Marketplace October 2000
This is a newsletter that started out devoted to Chapter
Three of "The Story of June, The Story of an Offer" and it just grew and
grew. (If you missed Chapters One and Two, they are posted at
http://www.jc-a.com/CareerAdvice/CR_00_8.htm
and
We are preparing for Fall COMDEX. I’ve touched upon a topic that merits much more attention -- the changing role of Investor Relations and the impact of Dot Coms. Also, we have some news of our own. I am particularly interested in reactions to creating a section of our site devoted to tough family issues and the impact those have on career choices. And, of course, our job opportunities are attached. November’s issue will be devoted to COMDEX. Be sure to check our web site for the latest party information. It will be updated every day once we are within 2 weeks of the show. FYI, for a more in-depth list of our job opportunities, please visit http://www.jc-a.com/jobs/jobs.htm. Included in this e-mail newsletter is a brief version of that list. Judy THE GROWING IMPORTANCE OF IR AS A MANAGEMENT FUNCTION AT THE HIGHEST LEVELS OF AN ORGANIZATION THE STORY OF JUNE, THE STORY OF AN OFFER -- CHAPTER THREE OF THREE For thousands of us, it is time to plan for the migration to Las Vegas and COMDEX from Nov.12th - Nov. 17th. As many of you know, I put up a COMDEX web site: http://www.jc-a.com/comdex00/comdex.htm and update it annually. We have new information about sponsored parties, hotels, restaurants and shows (and links to where to get even more information.) Just a few days before I head out for the show (on Sunday) I print thousands of copies of the party list for distribution to the media and leave it in the press room(s). The list will also be posted in a printable format for downloading before you fly to Vegas. At this time, I am most interested in what is being planned for the PR and media community. What awards dinners are scheduled? Who is throwing the large parties? Are there any PR sponsored media events -- like Showstoppers -- where organizers are looking for more exhibitors? I would be happy to post that information with details about what the event is and where to look for more specifics. Are there any press events/ conferences that should be mentioned. (If there are any major announcements, it would be helpful to note that to avoid potential conflicts.) Who has helpful hints or survival tips that I can add? I’m updating a conference trip check-off list that is my bible for shows. It has a form with all the details you could possibly need to set up an appointment. It will be up Friday evening on the COMDEX web site. The latest trend -- we are evolving into a two cell phone crowd -- one for business calls, the second given out only to the most important contacts who must get through. That second number becomes the one to give out to the people you are meeting. Plans are for me to be at the Luxor from Sunday late morning through Midnight Tuesday. I will be available to set up brief appointments to stop by a booth or to connect at one of the many evening events taking place. Amy Groden, the new Director of Public Relations at Key3Media Events, Inc., producer of COMDEX, will have instructions about press facilities and hours for dropping off press kits, etc. We will post those as soon as she sends them. In the meantime, this is what she said, "There is a comprehensive online guide that will greatly help you in your PR planning for COMDEX/Fall. It's located at: http://www.zdevents.com/exhibitors/prguide/prodserv.htm." Rumor has it, attendance is up from last year’s rather low-key event (for COMDEX, that is). Looking at the seminars and pavilion set-ups this should be a content-loaded show. THE GROWING IMPORTANCE OF IR AS A MANAGEMENT FUNCTION AT THE HIGHEST LEVELS OF AN ORGANIZATION Due to COMDEX and the length of Part Three of the series, "The Story of June, the story of an Offer," there is not enough space to discuss, in detail, a wildly successful IPO (creating of a tracking stock) to illustrate the new, powerful and strategic role of Investor Relations. IR leadership was critical, strategic and assertive. There was never any doubt about the level of authority assumed by the head of IR in the process, and the need for all of the senior management team from the CEO to his direct reports and support personnel to follow the agreed upon plan. Traditionally IR has been a high-level staff function with a small team (if any) and outside consultants/vendors to accomplish objectives. It is only recently with the enormous up (and down) side potential of the market that the function is assuming broader responsibilities -- for those with the inclination and managerial talents to assume these new challenges. We’ll look at that in more depth once the COMDEX rush is over. Over the past three months, I have seen more and more dot com companies link the communications challenges and their IPO plans into one Corporate Communications/Investor Relations position. The companies are small enough and the needs broad enough to hire a strong mid-level professional capable of taking over both functions. This is the first time that a specific career track is emerging for those flexible, specially trained communications professionals who have sufficient technical grounding to act as company spokespersons to the analyst community as well as the media. We are just into the first generation of this hybrid who can only "fit" a small but growing number of successful companies in high tech corridors. The incumbents are in great demand because so few are available and the talent required to succeed is hard to find. The profile is high tech corporate experience, some agency background generally a total of 10-years or less, aggressive personal style, career focused and a risk taker. This is not a job for a seasoned executive who has successfully managed large teams and substantial resources. THE STORY OF JUNE, THE STORY OF AN OFFER -- CHAPTER THREE OF THREE The Beginning -- A Recap Our client is at the offer stage. It has taken six months to reach this point, which was the fastest possible timeframe the CEO could accommodate. There is only one candidate that has reached this stage. If the offer is turned down, we will begin a new search that will take another six months. Negotiations are very delicate. The initial offer is not lucrative enough, in the candidate’s opinion. The finalist, however, does want the job. Where will we end up? She had 12 years experience, not the 15 Her career included strong agency and some corporate experience. She had been a Director of Corporate Communications and Investor Relations for a high tech company for slightly more than a year in the late 90’s (much less than expected) Her career had started to "take off" in the mid-nineties when she was named VP at an excellent high-tech boutique agency. Her market expertise was directly applicable to the needs of the company When I "found" her, she headed up a group of 20 professionals representing nine clients and had been identified as a "key employee." References I spoke to, commented glowingly of her intelligence, professionalism, loyalty (to employees) and sense of humor. She was not actively looking or considering other offers (a rarity). Timing was not an issue. June’s feeling about the culture she preferred, and her seniority, precluded her from a director-level spot at a pre-IPO. (She was over-qualified and too senior.) June echoed the words of the CEO about corporate values in our interview. I was encouraged, but recognized it would take a thorough examination of the company and the management team to convince her -- that the organization "walked the talk." There is so much skepticism/hype in this job market that the only way a knowledgeable candidate will be convinced an opportunity is genuine is by exploring and judging it for herself. This opportunity represented an excellent next move for her -- and quite a coup. She would be in a highly visible, challenging role that required strategic leadership. Assuming she succeeded, it would position her as one of the top professionals in the area. Potentially, she could be considered for the most significant corporate communications posts before she reached 40. June clearly understood the importance of the position for her career. Hopefully she would be flexible and focus on the long-term value of the move and not simply the short-term financial gain of the initial offer. What is the role of a recruiter under these circumstances? The first rule is to respect the candidate and provide carefully considered, honest advice. If the recruiter is overbearing and does not allow the candidate to express concerns and raise questions, the recruiter will loose the trust of the finalist. Loosing trust is a cardinal violation of the relationship between the candidate and the recruiter. If that should happen, the recruiter’s role is diminished to taking orders and not adding value to the process. By the same token, that rule holds true between the recruiter and the client company -- the need for respect and honesty are non-negotiables. In this situation, the finalist was not eager to share her thoughts or issues with me. I sensed that because she was so bright, that she had learned to think independently and to trust her own instincts. She did not wish me to provide what I perceived as added value as a counselor or sounding board. It was clear that if I attempted to offer that guidance, she would consider that intrusive and push back. My role became one of relaying important information to June and adding whatever perspective I could on the situation. I also insisted that she provide preliminary information about her compensation history so that we could address her needs. She was extremely busy and each step in the process required careful scheduling. In my opinion, her time constraints put her at risk of missing important interviews. She chose to schedule one meeting, for example, immediately after arriving back from a cross-country flight. As we approached the offer stage, she and I took time to evaluate the figures and discuss her complex compensation package. I was then in a position to discuss those numbers with the client on her behalf, adding my perspective on the market. But in this search, my role with her was more informational than strategic. Our finalist met the CEO and e-mailed me that she was excited and wanted the job. The CEO was very positive (there were a few concerns), but said it was important that her direct reports meet the finalist before an offer was extended. If the team had reservations, no offer would be made. This took several weeks, during which time, all other potential candidates were put on "hold." If she did not receive and accept the offer, we would be six months into this effort and need to restart the entire process. The good news was the story about the company and its positioning strategy was being well received. As we reached the offer stage, the company itself was looking more attractive. By this time, a new Human Resources VP was in place and she was taking an active role in bringing this search to a successful conclusion. The CEO’s team felt our finalist would fit well with the group and add value to the communications process. There was also a sense this position would stretch her -- that she was not yet an accomplished corporate "player. Maturity was an issue. However, these concerns were not "deal breakers." That was not the candidate’s sense of herself. She thought she was more accomplished -- and did not see that maturity and deeper experience were issues. That is not unusual for a fast track, high achiever. As she negotiated for a bigger package, which could require a higher title, she did not see any reason why she should not be a "Senior Vice President." Our client would only consider her for a "VP" post. As we reached the offer stage, the new Vice President of Human Resources was somewhat concerned about her "style" since she was coming from a consultative "selling" environment into a relationship-oriented culture. We reviewed the issue in depth and resolved it to the company’s satisfaction. There was a moment of hesitation, which took two conversations to work through. We were now ready to move ahead -- which brings us to the negotiation. I relayed earning figures to the client. Unlike several years ago, these numbers have become quite complicated and may include layered bonuses with delayed payments, pay-outs for new business, potential stock options, annual merit awards and retirement programs. June’s additional compensation was well over 40% of base salary. Initially the offer of 15% over base and options was well received. As she reflected further on total compensation comparisons, she realized the offer was very close to a lateral move and said she had concerns about the offer. (It would have been more desirable if the candidate had had a clearer sense of her requirements from the beginning of the negotiations.) Despite my explanations (to the client), their initial feeling was that the financial offer was a good one and the opportunity itself was unique. I said, "It is appropriate for an organization to feel theirs is an exceptional situation -- but the area abounds in exceptional opportunities. Certainly this is a wonderful post, but it is not unique." I suggested the gap -- if it could be closed by an adjustment in the 35-60K range -- would bring the offer in line with the market and candidate expectations. (A goal of the HR VP was to put together a package that would make the candidate happy.) We were now, hopefully, almost "there" in adjusting the offer with the help of the VP of Human Resources. The salary remained the same, however, the sign-on bonus jumped to 20+% of base and the number of options were increased by 60% with a four year vesting program. This was now a competitive offer and the candidate was pleased. With the negotiations completed, the CEO extended the revised offer and within days the deal was done. After six-months of intense work, the results were precisely what the CEO wanted. She hired a talented, high potential, smart professional with the energy and vision to make a difference. We exchanged kudos all around. No search is perfect. Looking back I saw ways we could have improved the process. Here is what we could have done better to reduce the risk and drama. At two key moments in this effort, the internal HR team could have conducted brief reviews with the CEO. The first would have been to evaluate the candidate pool. HR could have said, "Here is the group we have identified. We are pursuing a strategy of considering local candidates due to time constraints. There is no way to screen candidates around the country and meet the date on your calendar to present finalists." At that point the CEO might have said that the candidates look promising and she was satisfied or she might have redirected the search. The second review could have happened when the decision was made to move forward with the one finalist and not spend time screening back-up candidates. At this point the CEO could have been part of the decision-making that said the risk was worth taking, rather than have her question that strategy after the fact -- if the search were to restart. She would have agreed beforehand that the possible outcome would be to delay the hiring decision by six months. Learning from the search firm -- rarely will the hiring organization regard the search firm as a partner in the process. Yet, considering how swiftly the market is changing and how difficult it is to "win", the firm can be extremely valuable. The search executive is qualified to counsel the organization about what constitutes a competitive offer and how to structure it into the most appealing package. I added my viewpoint in the early stages, but it wasn’t until the candidate raised objections that the company was receptive to adjusting the figures. Despite the shift in the market from an employer-centric to an employee-centric model, clients (and particularly the more senior decision-makers) have rarely modified their behavior or attitude to reflect the change. As a result, they experience painful "surprises" when what, in their opinion, is a good offer is turned down. Unfortunately, it takes several rejections to impress these executives. In this situation, the HR Vice President and the CEO were flexible and did adjust the figures. However, the numbers initially were too low and the company was not disposed to accept what was recommended as a competitive offer -- at first. If time were a factor, this delay could have cost them the candidate. In a few rare instances I can remember that an organization apologized for making a mistake, or saying our advice was correct but the company chose to go in another direction. If an organization does not have the capacity to admit an error, it is very difficult to "fix" a problem. If a search is difficult or time-consuming, the client frequently looks for a cause. The problem is the market or the search process, virtually never the hiring organization. About the candidate -- like so many of the high-achievers in this market, there is no time -- no time to slow down, no time to reflect and no time to leave margins. In my opinion, she took too little time to do sufficient reflection, preparation and scheduling. She was lucky she was able to keep one appointment after a grueling cross-country trip. On another occasion, she lost a record of a meeting (software failure) and missed an interview. If she had made duplicate records or downloaded critical information, she would have had a backup -- but that all takes time. When we were at the offer stage, it took days for her to gain a true understanding of the offer compared to her current compensation and to realize the numbers were too low. She could have done the analysis sooner if she had given the issue more in-depth attention earlier on in the process. For a job of this significance, June was rather casual about providing materials -- she prepared an outline of her work experience. I kept an old resume on file, which I provided to the client, since what she offered was quite sketchy. Obtaining current compensation figures also required several follow-ups. In this marketplace where candidates can treat opportunities casually, this behavior will not have an impact on the search outcome. However, where a job is highly desirable and there are several top-notch finalists, these patterns will negatively impact the ranking of the candidate. Also, June was in immediate contact with me when she needed information or feedback about the process. Otherwise, she was difficult to reach and slow to return calls. Again, in this market environment, these behaviors are overlooked, but an opportunity was missed to develop rapport and a relationship that could prove valuable over the years. In my latest conversation with June, I’m happy to report she is moving ahead and presenting a proposal to link the communications and IR functions with the marketing strategy. She will, hopefully, win management approval for her ideas, which is just what we anticipated would happen. I continue to wish her and the company success. 24/7 Update/Subscriber Phone Line We’re making it easier to contact us. We’ve added a phone line dedicated to taking messages that update your record or add/ change your e-mail newsletter/subscriber information: it is (425) 427-0201. We are adding a page to our web site explaining what information we’d like to have and also mentioning the phone line if you prefer to call in at your convenience, rather than send an e-mail to info@jc-a.com. Creating a Family Issues Section As you know from reading these newsletters, we are a values-focused firm. Yes, of course, we work hard and earn a profit, but my team and I (many of you know my long-time colleague and associate, Ms. Marty Wright) fundamentally believe that career decisions are made in the context of and with respect for family and personal issues. We have experienced our own personal family crises and know how important it is to have support and information when they strike (as they inevitably do). Marty’s family recently suffered through the death of a father, due to cancer, with many difficult issues surrounding his decline. I am loosing my mother to Alzheimer’s, and watching painfully as she reaches the final stages of the disease, which was first diagnosed nine years ago. We think we could open a new section of the web site sharing information, experiences and resources surrounding a variety of these life and ultimately career issues. I’ve discussed this idea informally and received very positive responses. This would be a project to tackle after COMDEX beginning in late November. Please let me know if you would find this helpful. Would you prefer that we cover specific topics? Web Site Update The Web site is still looking the same. We designed a cleaner more organized (easy to navigate) version and then decided it just looked dull. So, we are going back to the drawing board and investigating doing a major overhaul. We don’t have a timeline for completion -- yet. If anyone has favorite sites or suggestions for improvements, we’d love to have them. |
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Judith Cushman & Associates 15600 NE 8th St., Suite B1, PMB 178, Bellevue, WA 98008 s (425) 392-8660 Fax (425) 746-8629jcushman@jc-a.com s www.jc-a.com The Judith Cushman & Associates web team would appreciate feedback concerning this site. Please e-mail your comments, questions and suggestions to heathers@jc-a.com. |
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