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Judith Cushman & Associates Retained Executive Search in Communications
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Click here to view past editions. The Cushman Report Breaking News, Trends and Information about the Communications Marketplace for Senior Professionals Fall / Winter 2009
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View As we climb out of the recession and Corporate VP positions open up, the decision to leave a current job should carefully be evaluated. What are the chances for success in assuming a new role? Read about the “Dark side of Success” as I analyze why the risks are so high—from two perspectives: personal satisfaction and meeting corporate expectations. The recession has impacted how (formerly) successful senior PR professionals are evaluating their futures. Read how one executive is potentially at risk to drop her net worth to zero and how she needs to make difficult decisions to avoid that possibility—if she can. News about JC&A. The firm is going global and updates about job openings and developing opportunities are listed. NEWS ABOUT JC&A - THE FIRM IS GOING GLOBAL THE NEW ECONOMIC REALITY ABOUT CAREER DECISIONS NEWS ABOUT JC&A -- THE FIRM IS GOING GLOBAL JC&A is going global. I am happy to report that clients are focusing on the global nature of their business and seeking candidates from the US and abroad. I have an affiliate relationship with a niched search firm in London filling communications positions primarily in Technology and Health Care. We have been collaborating to fill tech jobs in London and I’m also aware of a tech position in Dubai at the VP level with a PR Agency. If you or your colleagues are open to relocating outside of the US, please let me know what your preferences are. I found my partner through research in major cities in Europe and Asia. I will be sharing that information about search firms offering specialized services to the communications community on my web site in the next few months. If you have any contacts or have worked with search firms outside the US in the small to medium range, please send me contact information. Thank you. Judy For Corporate Vice Presidents who are qualified for top positions at major corporations and “safely” employed, this is an excellent time to reflect on whether it makes sense to consider a move once the economy picks up. In my opinion is it a question of when—not if. Once hiring begins, we will be playing a complex game of musical chairs. My guess is that we probably are about 15-months away from a robust uptick in searches for top posts. Now is the time to decide what it would take to for you to leave your current position and why. Waiting until there is a friendly call from a search firm is too late. The financial realities and the risk of making a change should be clear before the question, “who would you recommend for this position?” scrolls across your screen. This is my take on the fundamental question of how to think about success and the reasons to consider or reject an offer. Moving for a leadership position in communications is about success. If you are doing well where you are, I expect you would only consider a move if you could be richer, happier and more successful meeting exciting new challenges elsewhere. Why is the risk so high? The truth about success and risk On the face of it—there may be several reasonable answers for why a company is looking outside for a new leader. However, there are others that raise more questions than they put to rest. The highest risk, in my opinion, is when an organization has a deep communications staff but no obvious successor (at the time the top job becomes vacant). When an organization wants a “fresh approach” to take the function to the “next level” that tells me this is a potential minefield. What do they mean? This sounds credible, “Our new leader should be broadly skilled, highly intelligent, a problem solver who can bring fresh thinking and vision to meet new, different and bigger challenges.” This does seem to imply creating new programs and new strategies for communications. I think not. It means they don’t know what they want. How many of you have read senior level job descriptions that give a clear outline of what management has established as the top 5 priorities—with everyone on the hiring team agreeing (when you ask)? I expect a small minority. Drill down past the overview and you have very little to go by. The hiring officer says, the new VP will “fill in the blanks”—which means they hope to select someone with sufficient experience and leadership savvy to figure out what they want and sell it to them. The new hire assumes the risk and hopes that they really meant what they said about giving him/her this great new challenge, that the picture they painted of the potential of the job is accurate, and that there is sufficient authority and support to have a better than 50/50 shot at success. Underlying the positives is a concern that if they really had understood the scope of the job, could an internal successor have been groomed? What led to the lack of talent in the pipeline? What didn’t they know? What does that say about the leadership team? How many job descriptions realistically describe the challenges of the job, e.g. “We have a divisional structure with highly independent business leaders and now we are consolidating and operating under one umbrella?” (Or, in my opinion, attempting to consolidate is more realistic.) Wouldn’t that be refreshing? Or, “This organization recently restructured and is seeking internal communications leadership at a strategic level to guide/consult with the management team about how to help employees understand, support and work productively.” That is the positive way to say we have a lot of unhappy people and we need to find a way to get us on the right path. Good news (and so rare these days) is the company that is doing very well and needing new leadership with the experience to take the organization from small to medium-sized (as in the life sciences when the organization goes from the research phase to the manufacturing product phase). Hedge the risk My point is that it is critical to “look under the tent” to understand what the hiring organization may not wish to publicly acknowledge are complex issues that they hope a new leader can address. Or, and this is frequently the case, they are unaware of how their own culture and current practices derail the goals they have set. They are presenting their story but lack the objectivity and knowledge to give you the full picture. It is only when you have made your own assessment of the risk and challenges that you can determine if you should consider an offer and proceed as a finalist in the search. What is your definition of personal success? Let’s start with your understanding of success. I would suggest it means being empowered to take on a leadership role to affect strategy, solve problems and elevate the function beyond tactical improvements—and, of course, achieve those goals. For example, if you were asked to manage media relations more proactively or organize a global network to more effectively launch products, would you find that compelling enough to leave a current position? I would guess not—even if the compensation were attractive. If the job description talked about taking on broad challenges and creating new solutions that could change communications practices throughout the organization, would you have the patience to tackle that assignment over several years? What if you became convinced that these goals were only partially attainable? Would you consider yourself a success in that culture if your employer were happy but you were limited by structural or political realities? Would your sense of what the potential is for elevating communications practices and your inability to accomplish them fully (with all the resources available to you) drive you to find another home? What does “success” look like to the hiring team? If you read many job descriptions, the overarching statement about the primary goal is to achieve “taking the organization’s strategic vision and creating communications programs around that vision.” That does sound appealing. However, the reality is, success can mean achieving so much less to the leadership team (that the job is a disappointment). The real issue can be fixing a problem the CEO wants solved or simply improving operations (better execution of the same plan). Another issue is self-awareness, or the lack of it. If the hiring team does not know how hard it is, given the culture, to win consensus on broad communications issues, it can be that they are expecting the impossible. Ask the interviewing team what needs to be done. How different or consistent are the answers? How impressed are you with the sophistication of the responses? How open are they to use the interviewing process to begin a dialog—and listen to your ideas? What do the words mean? What are the challenges? The words in the job description are lofty, all about strategy, challenge, team building, and leadership. These are exciting statements, but what clues does that give about culture, pacing, process and consensus building? (This can be code for how slowly decisions are made.) Reporting lines in a description appear straightforward. That can be the “official” story, but in reality, for example, there can be deep differences of opinion between the Chief Marketing Officer, the Chief Administrative officer and the President (and leadership at the business unit level, as well). If that is the case, how do you avoid becoming so embroiled in politics that your priorities are lost in the shuffle? Or, the organization may have developed a culture where independent business units operate with little or no cooperation at the corporate or institutional level. The communications leader may find s/he lacks authority to implement company-wide initiatives. How can you know what the hiring team doesn’t know? The ultimate conundrum is when an organization has no one on board to lead the search with “hands on” knowledge of communications. Hiring is the responsibility of a leadership team that most likely has no in-depth understanding of the job they are hiring for. The job they wish to fill may have evolved from what it once was. (How do you define future challenges and hire for them?) Or, if the incumbent did not meet expectations, the job description may overemphasize the importance of some aspects because they were done so poorly before. Also, by the time the market picks up, social media programs will most likely be incorporated into job descriptions. How will the hiring team determine if the finalist has the appropriate qualifications as the nature of corporate communications shifts to include messaging via these direct channels? For these reasons, the hiring process can be a case of the blind leading the blind. The hiring group may know only at an imprecise level that they need a “fresh approach” and cannot spell out the scope of the job or the specific duties. Job descriptions for leadership positions are generally so vague that it is impossible to tell if the lack of clarity is the description or the job itself. It is a given that in any case, the finalist selected must feel comfortable with and win the confidence of the leadership team. The interviewing process should accomplish that. The real detective work should begin once you appear to “fit” with the team. Too many times, if the “chemistry is right” and candidate has a resume that says s/he is fully qualified, the search moves to an offer stage. This is when the process should pause. The real work for a candidate starts here before agreeing to become a finalist. Assessing your chances for success on your terms If you are seriously considering joining the organization, understanding the financials, talking to outside consulting firms with clients in the industry (as well as those working for the hiring organization) and reading about the leadership team and their styles are givens. With social networks today, it is no problem to dig much deeper. Find several people who have left the company and ask about the culture and details about the organization. How did the work get done? How open was the leadership team to new programs, etc? Was it a decentralized or a top down culture (or any variation)? What level of work did the communications team produce? What is the longevity of people in the top job (and his/her direct reports)? Be systematic and consistent in asking the same questions of several people. Truth is many faceted and there can be legitimate and differing opinions about the organization. The mystery is, how do you know what really needs to be done? And, as a top notch professional is it your job to figure out what they say needs to be done and do it or is it convincing them that they need to be more open to looking at the problem/solution in a new way? (It is more likely a mix of both.) Initially, are you willing to accomplish several key “to dos” the leadership team identified to win their trust? But long term, should you be negotiating for the authority to set priorities? At the point when you are considering an offer, do you think it is appropriate to ask for that authority? Or, having done your homework, are you eager to join, and take the gamble that you will be successful over time? These are only decisions that you can make. Success and how you are evaluated in the job How much is a job about ideas and vision and how much is it about winning hearts and minds by executing impressive projects? If you are hired, who will be evaluating your work and what are the criteria you will be measured by? This can the most basic way to tell what “success” looks like to the organization—if they like specifics and have thought the process through. Do not assume the criteria are clearly defined; in some companies the performance review is a complex team effort. If that is the case, this is a major “clue” that success will be a relative and negotiated concept. Are you OK with operating in such a “gray space?” How tactical are the near and medium term goals? Is it important to you that you develop and implement strategic programs? If that is the case, how can that be accomplished for the long term? Or will you always be asked to do major projects, perhaps on a global scale, that will determine how successful you are by corporate standards? Is that OK? I think successful Communications VPs are respected for what they do—not their strategic plans. When all is said and done, from a corporate perspective, winning the trust of the leadership team and doing what are perceived as “major wins” are what matter. (Those wins however could be the result of a strategy the VP has developed, but no one remembers the strategy—just the wins.) I think the same could be said for other major corporate functions. To Summarize 1. How do you define personal success? 2. How closely does that align with the organization’s goals as defined in the job description? 3. Does what the company says in writing “hold up” under scrutiny. Does it “feel” right to you? 4. What are the odds for success, based on your personal assessment? 5. How much risk are you willing to take? Good luck. THE NEW ECONOMIC REALITY ABOUT CAREER DECISIONS Finances first, career opportunity second This current recession is and will have severe financial impact on senior level communications practitioners that will change the way they make career decisions. The most seriously affected are agency VPs at the upper mid-levels whose jobs have been eliminated. Here is the story of one Senior Vice President who has been caught in this economic storm. With just under 20 years of experience, “Mary” (not her real name, of course) had built an impressive career track. Raised in the NE, she was surrounded by a vibrant communications community. Her career reflected consistent increases in responsibility and success on the corporate side. Without planning to become so inched her early career moves took her from the media industry into technology, where she stayed. Through colleagues and very little effort, she found jobs in her niche once she took her first industry sales job. There was no need to diversify across industries and she rose to a VP level responsible for Communications and Investor Relations in an increasingly competitive and volatile segment. Her expectations were that she would continue to prosper financially since her knowledge and skills were in demand. That was her experience and there was no need to question her assumptions about the underlying economic dynamics of her world. But she was about to start down a long slide that could put everything she had built at risk—as each job decision she made took her further away from having an outstanding career track. Her corporate career peaked about 5-years ago, when, due to an acquisition, her company closed and she began a formal job search. With her many contacts, she decided to consult while looking for a new challenge. The free-lance work was lucrative, but not as “rich” as the package she had earned on the corporate side, which included stock, bonus, and cash incentives. By this time she was married with children and the bread winner in the family. The day to day cash flow was more than sufficient to maintain the family lifestyle. The work was interesting and a change of pace. This was a good interim move. Her next career choice was critical—if she found another corporate job, then the short free-lance stint would be just a small diversion. If she chose to leave the corporate world behind, then this would be time to do it and signal potential employers that this was a critical change in direction. I do not believe she thought of her next move in that strategic context and was concentrating on the content of the work—rather than her long-term future. Having invested almost 20 years getting to know the players in an industry, all sorts of options “came up” for her as she tapped her network and told them she was job hunting. If you need work, a ringing phone or active on-line (social media) network is reassuring. It also tends to blur focus and lead to opportunistic moves. This is the challenge (too many options, no clear decision-making process) of being an “insider.” Mary could have avoided that pitfall by carefully considering longer term goals. Pausing to establish a framework for decision-making is rarely done (and I doubt she was the exception). In hindsight it is not difficult to see when a career takes an unintended turn—and that is what happened here. Mary was recommended through friends for a PR agency project. It was an assignment where she would be part of a special task force to win a major technology account. Before she knew it, she was “hooked” on landing the work and being part of the team to deliver on the program. When a full time job offer was made to lead the team, she decided to take it and relocate to be relatively close to the new client. (Whether she realized it or not, it was a choice that would make it much harder to compete for a major corporate post, if she decided she wanted one.) She was not driven by financial considerations when she accepted and this new job represented a significant drop in total compensation compared to her corporate post. Even at VP levels, agencies can offer far less in the way of benefits (e.g. stock, bonuses in the 20-30% range, generous relocations programs) than corporations. What they can offer are lucrative salaries. In many cases, agencies offer richer starting salaries than companies. Whether Mary stopped to consider the serious financial implications of the move compared to the excitement of a new job in a new location, I seriously doubt. I wonder if any rigorous thought was given to “what if this doesn’t work out in the long term.” By any standards, Mary and her family were living an upper middle-class life. They moved, sold their home and bought a new one when the housing market was still rising. They paid a competitive (somewhat inflated) figure for the home. For the next several years, she continued to build a successful relationship with the client as well as with other in-house accounts in her niche. And then the recession hit. Mary saw major accounts either cut back or cancel programs and finally several clients left. There was no way to justify keeping her, particularly at her now Sr. VP level salary. That is when we connected. She was still operating under a paradigm that put work first. The goal, she said, was to find an interesting and challenging position. We discussed the agency salary she had been earning and what her financial needs were. This was not top of mind nor was it very clear what her true financial situation was. This is where I realized she was operating under assumptions that have changed. For most of us, our personal wealth is tied up in our home, our savings and retirement plans. Mary, by having chosen a job that offered her a good “living wage” and very little in the way of longer term incentives, had very few assets other than her home. I asked what had happened to its value and was told it had dropped below what she had invested in it. In short, she would lose the equity and would have no money for a down payment to buy a home in another market. Think about how shocking this is and how this situation can apply to any, even very, successful middle class executive. She will potentially find herself where she was financially 15-years ago if she puts her house on the market in order to sell it quickly, while housing prices remain depressed. Her situation is far from unique. Given cash-flow constraints of agencies, they are in no position to buy a home or offer special financing, should they wish to relocate a new hire. For their employees, the path toward building wealth is through personal savings withdrawn from annual wages (cut back on life style now to secure your future). Corporations with deeper pockets are in a far better position in these times, to find solutions (e.g. special bridge loans, mortgage assumptions, etc.) to overcome real estate issues if they determine that filling a position with a “key” hire is a “must.” What are Mary’s options? What should her strategy be? The most important “shift” is to put financial considerations ahead of career decisions. Be absolutely clear about the costs of taking a new job. In her case, would selling her home lead to a net worth of virtually zero? If the home was valued at $750,000 (when purchased) and now is assessed at $600,000 with a mortgage of $575,000, then the answer is yes. The net loss could be over $150,000. It becomes clear that selling a home now would be a very risky decision. If a position became available in another city at a comparable salary (to the prior position) at a PR firm, I would say she couldn’t consider the offer. The only way that would make sense is if she rented her current home (to cover mortgage costs) and leased one (most likely a modest house) where she was relocating. That is a very undesirable scenario and could put the original home at risk for damage and depreciation. It could be so costly to maintain both homes that daily living would be impacted. She has never had to ask her family to sacrifice their living standard for her work. Would she consider doing that? If a major corporation were interested in hiring Mary, having been out of the corporate world for several years, I would guess they would be offering her a lesser job than the one she held 5-years ago. Her career track no longer looks as attractive as it did when she held a Corporate VP title. She might have to step down one level since the competition is fierce and she would need to prove herself again. The expectation is that the company would have funds and a relocation policy that would allow her to preserve her investment in her current house. This is an offer she should seriously consider. Her “fallback” position is to look locally and consider a job that she is overqualified to take—with the idea she will either move up to a more responsible role or she can sit “tight”. She can wait until there is sufficient economic recovery and then look for a challenging corporate job nationally. In any case, she can expect that it will take time (months) before any of these options surface and are sufficiently attractive to accept (if an offer is extended). In the meantime, she is looking for local freelance work and consulting projects that she can handle remotely offered to her from colleagues throughout the US and from former clients that are delighted to retain her for work at lower hourly rates (now that she is not at the national PR firm). While she is preserving her “nest egg,” there is no escaping the fact that her career path is moving in the wrong direction. The career issues were brought on by the economic recession, but her decisions about joining an agency and taking a significant cut in total compensation, without reducing overhead, left her vulnerable to being impacted by economic conditions. From a successful, prosperous, senior level professional, she could find herself with a net worth of virtually zero if she does not make tough and painful decisions. Her career track will show several years where she has not progressed and I would guess that her earnings level will drop then recover, perhaps after 2-years, to approximately where she was in her last full time job. This is a bitter pill to swallow, but it is better to know what to expect than to be constantly disappointed by inflated expectations. She will need family support to deal with the stress of attempting to provide financial security for her family with no guarantees she can maintain their current lifestyle. This turn of events was totally unanticipated. As she considers new opportunities, I advised her to be candid during the preliminary stages of the process, particularly if relocation is involved. The harsh reality of her financial situation leaves no room to negotiate for a few thousand dollars to “sweeten” a deal. She knows what her bottom line is and she needs to withdraw from consideration if the compensation is below her minimum. As she comes to grips with her new (and lower) living standard, I hope she and her family can focus on what really matters. |
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Judith Cushman & Associates 15600 NE 8th St., Suite B1, PMB 178, Bellevue, WA 98008 s (425) 392-8660 Fax (425) 644-9043 jcushman@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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