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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 August/September 1998 Hello from summery Seattle (yes, the weather has finally turned). August doldrums have settled in and there is no sense of urgency to make decisions. Clients are on vacation, just back, or planning to leave shortly. It is inevitable that September will be a catch-up month. This newsletter is the third and final installment in the series about professionals in our field who have recently made life-changing career decisions and why. I will follow "Bill’s" story, which is very different from Susan’s or Annie Jo’s. Bill had a successful financial and investor relations career with one company for over 20+ years when on one momentous Saturday last January everything changed. Read what he chose to do and how it was a "win-win" situation. By the way, this entire newsletter is posted and formatted on our web site. The link now works (last month we ran into a glitch) so choose whether you’d like to read on or try the new (we hope) easier to read version. So far, we’ve had positive feedback from subscribers – both ways. Meanwhile, before I begin, here are a few notes. A salary survey has been posted and if you have a few moments, please reply. You’ll see it’s not the usual numeric approach. I’m hoping to develop a sense of how important compensation is to the job satisfaction and job hunting process. We’ll report results in the October newsletter. The Transition is Not Easy Even If Everything Goes Well Efforts to create a new division focusing on on-line positions in the communications field continue in the midst of growing our normal search business. We have secured a name: http://online.onlinerecruiting.com to imply that we are filling online jobs online (which is the business model for this undertaking). We are building a database of online professionals and welcome input/resumes, etc. As a proponent of open communication, you know that I firmly believe that anyone who wants to receive this newsletter should do so (and conversely, anyone that wants to be removed just needs to send an e-mail saying so). I respect an organization’s request to remove their employees from our list, but feel no hesitation in writing a personal note inviting an individual to provide a personal e-mail address for future contact. I asked my attorney to research the question of whether an employer may demand that I stop sending letters to staff (which happened, including a toothless threat to report me to my clients. By the way, writing to executives is a standard form of contact by recruiters across all industries.). Briefly, here are the questions raised and a summary of the answers. Issues Presented
Brief Answers
I first heard about Bill and his future at a NIRI (National Investor Relations Institute) Conference in early June in Palm Springs. His boss told me she had helped him in a search to find a new job. He had found the one he wanted and was in the final stages of negotiating an offer. Bill and I spent a few minutes talking about this unique moment in his life when everything was about to change -- with the blessing of his former employer. Bill was reaping the benefits of 24 years of loyal service and the logic was irrefutable. It was time to move on. He agreed to share his experiences for the benefit of the many professionals who must make similar life altering decisions. Bill is very different from the subjects of the other two essays -- both highly ambitious, focused women, the product of Silicon Valley opportunism. Bill is part of a shrinking minority of loyal corporate soldiers, who expect to make one or maybe two major moves over a 30 year career. This is certainly a model that rarely exists in the busy technology marketplaces of California, Washington, New England, and the New York metropolitan area. But there are employers like Bill’s who still think longer-term; the picture in their head is, "join us to make your future." That corporate attitude worked in his favor. Bill is candid, curious, confident and smart. I’ve met several people like him, often in top academic or creative environments. Their innate curiosity and apolitical nature allows them to focus their formidable intellect on the objective, not on themselves. There is an "ambling" quality to their work history, which is directed more by a desire for challenge than any particular path. In short, these very bright people make excellent individual contributors but rarely chose a career path where they manage large groups or lead organizations. In the right situation, their talents are extremely valuable. Bill was raised in the Southeast, in a major commercial center and went to a top school in his home state. His first degree was in Mathematics in the mid 1970’s which he said, "taught me everything, but prepared me for nothing." He did not have a burning desire to focus in a particular career direction. He would probably say he didn’t have one at the time. Instead, he wanted to hire on with a premier company, a leader in the telecommunications industry, and go from there. Almost immediately, he registered for a Master’s program, which he completed while working full time. He thought he would receive an MBA in management, but through a fluke, his first class was in finance. Bill said, "within 15 minutes I knew this is what I wanted to do." It took him three years to earn the degree. In the first nine years of his career while based in his hometown, he held two managerial positions in planning and engineering and network design. This early foundation in the basics of the business was invaluable later on in Investor Relations. An opportunity to relocate to corporate headquarters in the greater New York/New Jersey metropolitan area in a financial manager’s role beckoned in the early 1980’s. This turn of events led to a series of three promotions within four years. The third was as a financial manager involving financial analyses and modeling. It was a post Bill held until 1992. By this time, he was married and his wife also had a successful long-term career with the same company. It was a comfortable situation that Bill saw no reason to change. He did not have a burning drive to become a Vice President or head of a function. He was respected, well paid and challenged. His reputation was well-deserved and he felt comfortable in expressing his interest in new challenges, if he felt the need. He looked forward to the security of retiring after 30 years with the company. Bill was a solid middle management team player. He was now four years into his current job and Bill decided he was ready for a change. "What would be a good thing to do?" he thought. He was numerically oriented and understood the company as well as the investment community. In this corporate culture, which respects an individual’s right to explore internal opportunities, Bill’s request to discuss a post in Investor Relations was greeted cordially. He grasped the importance of IR immediately. He said, "IR is like PR for Wall Street. Actually, it’s really marketing for Wall Street. IR does everything but take the orders. I market the "Product" for the Product Management team -- the Board and senior management. I give them ‘customer’ (analyst) feedback." Bill moved into IR and found the variety and depth of his early assignments made him a credible spokesperson to analysts. His mathematical and finance background (as well as his knowledge of company operations) enabled him to follow their models. In the years that followed, Bill was involved in one groundbreaking announcement after another as the company took major initiatives in an extraordinarily competitive marketplace. By now headhunters were calling but he felt no need to consider a move. The goal was still to retire from the company he joined right out of school. And, Investor Relations was fun! Unlike other corporations where IR was a one or two-person department, Bill was part of a mid-sized team under a series of top-flight managers. His was a challenging assignment -- he was in the forefront, handling analysts’ calls when major announcements were issued. He worked with the entire executive team. Of course, if something didn’t work -- e.g. a conference call that developed technical problems, his head was on the block, as well he knew. After more than five years in IR, Bill was beginning to think about pursuing new career directions with his company. Four occurred to him: Treasury, International Finance, Financial Planning, and Investment Management. He was now entrenched in the ranks of upper middle management in title and compensation, functioning primarily as an individual contributor. He was still thinking of himself as a "company" employee, not as a career focused IR pro. Then one Saturday in January 1998, a new CEO who had taken over the helm of the company decided it was time for radical action to create a leaner, more competitive corporation. He announced a massive program to encourage early retirements among middle managers by offering major buyouts. The numbers were so compelling that the employees who met the criteria (years of service and age adding up to 65) were hard pressed to find a reason NOT to accept the offer. For managers as young as their early forties with 20+ years of service, this was a chance for a new life, underwritten by the company. It offered a lump sum pension cash out, retiree benefits for life and finally, all existing options would continue to vest. For Bill and his wife, both of whom qualified for this program, it was a question of which one should take the package (it made sense for at least one of them, initially). Bill had the more marketable skills it seemed (given all the calls from headhunters) and so the family decided he would leave. While the numbers were clear and the intellectual decision-making was almost immediate, there was real regret at the thought of moving from the company where he has spent his entire working career. In retrospect, he realized that the company was poised to undergo a major cultural and repositioning effort. It had embarked on new high-risk ventures and would never be the same place that it was for him. As the settlement and retirement benefits were computed, it became clear that Bill could, with careful planning and by choosing a modest life style, actually stop working. It was an option he would not consider at this point in his life. In his mid forties Bill is simply too interested in new challenges. He is energized and has all the tools honed to succeed in his next job. Risk averse by nature, yet with the comfort of knowing he has a deep financial cushion, Bill widened his horizons. It was early in 1998 and Bill knew he needed to explore his worth on the open market. He was intrigued by analysts’ work and thought he might enjoy that track. He was quickly directed to the buy side by industry contacts but found it difficult to crack that elite group without previous sell-side experience. He then began rethink his goals and decided to build on his IR expertise. He contacted banking sell side analysts (among others), referrals from his supervisor, NIRI job leads and executive recruiters. He turned up more opportunities than he could explore. It was a wonderful discovery. For Bill and job seekers like him, this ability to explore the marketplace and truly listen to what is being said is absolutely critical. With so little experience in job-hunting, an easy mistake is not adjusting quickly to feedback from colleagues and potential hiring organizations. To his credit, Bill shifted his strategy and focused on his marketability. While in his company, as a "known commodity" he could explore new directions and not be locked into one path. Now, he realized he needed to become career focused and select one direction, which quite naturally was IR. (Bill made the paradigm shift so easily to being career-minded, he didn’t realize how difficult that can be.) I asked for his evaluation of search firms, which he said were from New York, DC, Los Angeles, Florida and Chicago. Bill commented they were, as a group, very professional, very serious and did all the legwork to present good candidates to clients. He felt he was a "filler" candidate in certain searches. Personal recommendations proved the most fruitful of all his sources. By the first of March, Bill said he began to get serious. He was delighted at the number of IR telecom searches and could narrow his requirements to small company/start-ups in that niche. He whittled the serious contenders down to four after a series of personal interviews in April. Two of the four were on the same time track and moving toward offers quickly. The progress of the other two slowed. Bill dropped them out of contention. By the beginning of May, Bill was negotiating two offers. For searches of this level and difficulty, the speed was impressive. (Notice Bill is in the driver’s seat. It is not the potential employer who calls the shots.) In thinking about Bill’s talents and his keen analytical ability, a small start-up is an excellent career option. Unencumbered by managerial responsibilities, Bill is at his best providing cogent counsel and positioning the company to the high risk, analyst community. These are the skills most in demand as a company goes through an IPO or is newly public. It is also a high risk, high reward environment, which is just what that retirement package allows him to try. It is now about mid May and there are two excellent offers for Bill to consider -- one back in his hometown and the other in another desirable community. The hometown location coupled with the global nature of the assignment and the opportunity to tackle new challenges tilted Bill in that direction. He said the other post was very comfortable and he could have "slid" right into it. He chose the more challenging opportunity. There were other reasons for this choice. He talked to sell side analysts about the outlook for the company. The answers were reassuring. He was interested in a "robust" offer, an equity position that included, in addition to salary, shares of stock and options. All that was part of the package along with professional relocation assistance. Bill accepted the offer in the beginning of June and has been on the job about eight weeks. He’s already spent three of those in Europe. The relocation has meant his family is still at home. They are still deciding when to move since he has school-age children. His home has already been sold. He has received some help from relocation experts. The family is still working out logistics. Even though this is a relatively smooth relocation, there are many issues to be resolved. Bill advises any new hire to request the services of a relocation firm as part of the offer package. It has been a little over two months since Bill rushed out of corporate headquarters to jump onto a moving train -- with no break in-between. The company was two weeks away from an IPO and there was no time to waste. He says join a start-up the earlier the better. The Transition is Not Easy Even If Everything Goes Well "For me," he says, "it’s like getting on an airplane as it taxis down a runway, you feel that you are never going to catch up." He adds, "the plane needs to take off. Worry about essentials. You learn to keep going. "Before, in my previous job, I knew more or as much as anyone (about the company). Now, I’m learning the company while getting processes in order. I’m introducing myself to new analysts while meeting the senior management team both here and in Europe. It’s a different culture from my former company and I need to be aware of the differences -- even in the use of English. The management team is committed to an active and open IR program and that is why they need me. I’m comfortable now with my new role even though I wondered at the outset if it would work. "Here we are not just implementing a program with tried and true procedures; we are defining roles and figuring out the basics as we go. Simple things take too much time. I worry about getting it all done. I was in London, which sounded like a fun trip at first, then I couldn’t get access to e-mail or web-based services, and a 10 minute task took an hour. I’m feeling better about the pain than I did three weeks ago…" As Bill reflects on this move, I asked him about where he will be at 50. If all goes well, this position will ensure a comfortable income that coupled with his other assets, will make work seem an unnecessary diversion. He will have been through a demanding start-up; will he want to assume the next level of responsibility, which involves running a department with a team of IR specialists? Will he write a book? Teach? Consult part-time? These are all possible directions for a new breed of middle-aged retirees. Instead of resting, it will be time for a new balance. The paths are under construction. He is among the lucky group to choose which road he will take. |
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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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