Archives for March 2019

Ed: In recent blogs we have examined what differentiates retained executive search.  Recently, Pharma Boardroom magazine published an article by our Practice Group experts Eric Bouteiller and Simon Wan on what would be involved in looking for the best pharma executives for a country manager in China.

To be country manager, it is vital that candidates are the best pharma executives — sharp professionals and masters of commercial excellence, as competition has intensified in recent years. It is about leading the design and implementation of effective strategy in all distribution channels throughout the country’s various regions and provinces. China affiliates are often very large organizations with a headcount of several thousand and recognized leadership by the team is of utmost importance to generating value to patients and shareholders.

 

Political Savvy

All of the major global pharma companies are now well-established in China and some local companies are developing very quickly. At the same time, growth is slowing and building market share has become more complex and difficult. Political savviness relates to the ability to interact with Chinese authorities and build good relationships. The best pharma executives will also have the ability to leverage headquarters’ resources, explain the reasons for ambiguity, and emphasise the need for agility as China attempts to define its new rules of the game.

 

A Hands-On and A Strategic Mindset

Often, we look for candidates that are either strategic or hands-on. In China, we need candidates that are both! We need people that are able to interact with everybody in the organization, from top to bottom. Chinese affiliates get the most visitors of any global affiliate; from top management but also from a company’s investors. At the same time, country managers need to be able to connect with their frontline sales team.

 

Resilience and Good Communication

What matters in China is success over time. The traditional three-year country manager tenure is not long enough to really have an impact on the organization and the market. It is relatively easy to get short-term results by playing with stock, but long-term results are the only KPI that matters. The best pharma executives are top achievers who tend to be excellent communicators within the affiliate, with peers and authorities and especially with headquarters.

 

What are the Challenges They Will Need to Address?

 

Building a Talent Pool and Pipeline

In 2018 many Big Pharma companies were caught by surprise with the departure of key talents to local firms. There is therefore a clear need to mentor leaders and potential successors in-house. This is something that is feasible for large international companies; it is a matter of anticipation and professional support.

 

Learning the New Rules of the Game

Frontline teams are facing changes at all levels, both internally in terms of raised expectations and matrix working and externally with pilot schemes, new paradigms and often contradictory rules. Organizations in China need real leaders who have the capacity to envision what is coming and communicate well and learn from their teams. Motivating in a period of volatility, uncertainty, complexity, and ambiguity is key.

 

Shaping Policies

A good China country manager needs to join industry bodies in order to try to shape policies. Many companies see industry bodies and communication with authorities as a one-way channel. They miss the point. China is inventing a new system, the market needs country managers that are ready to commit. A good country manager needs to go beyond day-to-day business and embrace the full picture, which includes contributing to the wider environment.

 

Communicating Well with Headquarters

Many affiliates can manage challenges on the ground, but HQ does not always support this because they just do not understand what is happening in China. There is a strong trend towards the localization of country managers, which is positive as they are able to manage business better.

However, at the same time, teams often complain that HQ does not provide enough support and that “everything is slow” in a multinational company. This is a direct consequence of leadership often being perceived as “too local” and not always being trusted by HQ. From HQ’s perspective this is understandable as China is now a significant contributor to global results and one of the only growing markets worldwide.

For information on pharma resources in China, contact Eric Bouteiller at eric-bouteiller@cornerstone-group.com or Simon Wan at simon-wan@cornerstone-group.com . Simon and Eric are Practice Group leaders of our Life Sciences & Health specialization.

 

 

 

 

Much is done today to reduce the risk latent in the hiring of a top-quality senior executive.

And there is risk.  After 18 months you could find that the superstar you were thrilled to engage has leadership characteristics that are not fitting comfortably with the rest of your C -team.  Correcting that can lead to costs running into hundreds of thousands of dollars – and more.

(See also Getting it Right the First Time)

So much of the executive recruiting process revolves around the hiring company resolving whether the candidate can continue to meet expectations in the long term.

What about the reverse?

A top talent is equally concerned about making the right move. The wrong decision can be ruinous to a career and as damaging to the talent as to the organization.  An incoming leader will need to be satisfied not only that the existing opportunity is a fit, but that the organization is one that can continue to keep him challenged – and rewarded – going forward.

Not everyone gets that. One person who does is a long-time client of mine who recently, while discussing an executive search project, asked me: “This is a new position and we are going to hire the individual that best fits.  Will she be challenged moving forward once the role has been established?”

How much responsibility does the organization have?

Recruiting someone involves convincing them the role you have is better for their career than the one they are currently in, or one they are considering.  Like you, they are making a decision that has a long-term impact.  What happens after the initial success?  That is where the organization steps up and defines itself.

Organizations which are not concerned about the individual’s career are perceiving the new hire more as a consultant.  These organizations are focused on getting the job done right, but not much beyond. Organizations with “heart” (and enlightened leadership) want what is best for the individual as well as for the organization.  Outstanding leaders will understand the individual’s career vision and consider the employee for meaningful future opportunities within the organization.

The challenge is today’s flatter organizations 

Good leaders do not assume that everyone should continue his or her career in their current functional area. As one told me, “you end up with a very talented specialist who is only prepared to contribute in a narrow manner.”

Diversity in experience provides professional growth.   An individual moving into another functional area brings a new perspective—a different way of looking at things.   He or she will challenge what has been accepted.  Since future growth is based upon asking new questions, not simply improving one process, the organization will change for the better.

Which brings us back to Day One.   Organizations with a commitment to their people, a long term view of their path to success and a genuine pursuit of greatness, do not hire top talent for today.  They are looking far, far down the road.

 

A couple of posts back under the title “Get it Right the First time”, we looked at the advantages offered by a Retained Executive Search firm versus a Contingent Search firm in hiring senior executives.  (You can revisit that post here and/or download our E-Book “Retained or Contingency.”)

That discussion came down heavily in favor of “retained,” but left you at the starting post. Great, you’ve got the right horse for the track but you are a long way from home.  There is more, much more, to be learned before you can feel comfortable that what you are doing will get you where you want to be.

Here are three basic understandings that govern the success of any retained executive hiring initiative.

1.  Understand the game

The selection of retained search as your model gets you off to a good start, but there is a lot to learn.  You are likely acting on a referral but if not, there is an initial selection or short-list to make.

There are thousands of executive search firms and the best in the world are members of the Association of Executive Search and Leadership Consultants (as are we). So, start here.  The AESC logo is a respected and reliable indication that you are choosing to do business with an expert and trustworthy organization.

Your due diligence process should cover major issues.  Does your talent pool need to be global? Does the firm have a track record in your business?  Is this a domestic hire or cross-border? If the latter, who is managing it?  What is the average time to engagement? What is the stick rate at 24 months?

Then there is the part of the iceberg under the surface.  Do these people really understand your business?  Do they understand you? Are they people you are willing to spend time with?  Do you admire or at least respect the way they run their own business?

2.  Understand the partnership

This is not just another client-customer contract.  To achieve the best result, you must become partners with your retained executive search firm.

Recognize that in addition to far-ranging access to top talent, the recruiting team is bringing to the table specialist skills, knowledge and intuition that you don’t have.

They look at things differently.  Don’t get hung up on your description of who you want. The search pros are more interested in hearing what it is you need to accomplish.

The best recruiters think like engineers.  They look at the desired end-state and then look at how they can get you there.

That includes looking way down the road.  We can quickly become attracted to great talent with the subject matter expertise and resume that fits perfectly.  After reviewing a dynamite resume, a successful phone screen and a great in-person interview, your reaction is “wow, this lady is off the chart.”

Your partners will help you see 18 months down the line.  Studies point to a breakdown in the culture fit as one of the five main reasons for 40% of executives failing inside the first 18 months.

To minimize this risk, successful executive search firms spend a lot of time assessing the fit.  They get to know the candidates and they need to get to know you.    It’s important that you contribute “environmental information” that will help your partner to understand where you are coming from, your priorities.

And walk the talk. There’s no point in claiming to be a nimble, fast-moving organization if you take two weeks to respond to your emails.

 

3.  Understand your candidate

Finally, you have to understand what is motivating the candidate.  Once you have arrived at a provisional choice, you need to know why she or he would choose you.

The more senior the position, the more personal the selection exercise becomes. The person you engage will be your peer, will have to fit in with the leadership team. He or she must be someone able to understand and share sometimes intimate aspects of management and leadership.

Which brings us to trust. Today, trust at work is fundamental to a company’s corporate strategy because the employer-employee relationship is one of the most tangible trust-points in our lives.

To take the culture fit issue one step further, you and your colleagues must be satisfied that this is someone you can work with, someone you feel you can trust.

Your candidate is no less concerned.  He or she is about to make a major commitment, and a huge life choice comes with risk.  A wrong placement can have devastating effects on the reputation and career of the person being hired.  Professionals with an otherwise illustrious career have suffered major setbacks as a result of having been hired into a leadership positions for which they were not prepared.

 

Next Steps

Finding or replacing a talented leader has probably never been easy.  Today, technology, innovation, globalization and heightened life awareness make it more complicated every day.

Building a top-notch leadership team is rated by many organizational gurus as the most important task of a business enterprise.  A fundamental element is anticipation.

So, before the need arises, research the optimum path to attracting and securing the best talent in the world.  A good starting point, IMHO, is our website at www.cornerstone-group.com, where you will find good information, links to learn more, and access to people worth listening to..

Enjoy!