Archives for October 2020

ATLANTA, Ga. October 26, 2020  — A resurgent pandemic is placing massive stress on leaders around the world, according to an international panel of experts.  With the majority of an organization’s workforce working outside the office, managers face new priorities ensuring the welfare of their human capital.

Such were the findings of a recent global webinar on the Future of Talent co-sponsored by the P&G Alumni Network and Cornerstone International Group, an executive search and leadership consultancy.

Current data indicates over 42% of the U.S. workforce is now working from home, a stupendous shift in work and human relationships in less than eight months. No burden appears heavier than that borne by the direct lines of hands-on managers

“We are placing a tremendous amount of responsibility on our lower management, the individuals who are interfacing with our scattered working populations,“ says Laurie O’Donnell, Cornerstone’s head of coaching who manages over 100+ certified coaches worldwide.

They are struggling to cope with their own lives but they must also address the social needs of their people. How are they doing? What do they need for working at home? It’s a demand of empathy and understanding and they are ill-prepared for it.”

Historically better prepared, the CEO is also in unfamiliar surroundings. Facing a premium on trust, it is the CEO who steps into a frontline position once the prerogative of HR.

”Trust has become extremely important in the last eight months and the CEO has to take over,” says Cornerstone Chairman Simon Wan. “Culture and humanity is set at the top and these days, the CEO has to be more visible and show his or her humanity. Almost overnight, empathy has become a key attribute.”

Also participating in the discussion were three senior members of the P&G Alumni:  Ranu Gupta, Graciela Ivonne Monteagudo, and Robert Duque. The webinar was attended by over 900 viewers around the world and a recording can be viewed at https://www.cornerstone-group.com/2020-webinar-future-of-talent/

Cornerstone International Group has been a leading executive search and leadership development organization for over 30 years. It has 60 offices in 40 countries. More information is available at www.cornerstone-group.com

Information

Diego Cubas
Global Marketing Chair
Cornerstone International Group
diego-cubas@cornerstone-group.com

Third in a series by Steve Manning – Head of Financial Services / PE and Family Office Search Practice – Asia, Cornerstone Singapore

The bar is set high. Dynamics at Private Equity firms is fast, aggressive, all conquering, and as the investor leader you’re thrust into that all too familiar position of tackling senior leadership management issues at a newly acquired portfolio firm.

Part One and Two of this series looked at the essential and unique constituents of an ideal leadership candidate’s profile both in terms of hard and soft credentials.

Now we look at the challenge of finding a ‘pink giraffe’ to lead your portfolio invested company, why this is a difficult search, and surface compromise as an essential dynamic. The ideal of openness will be explored, and justification for a rationale of compromise; and how these impact the successful conclusion of senior executive hiring.

In Part Four we will later explore a balance between needs and compromises, and float tangential opportunity to expand horizons. We will also extricate ourselves from the myopia that accompanies the search for that elusive ‘pink giraffe’ management candidate.

1. Then There is the Challenge – Take a Look Into the Fight Ring.

At the start of this series, we examined the necessary hard and soft credentials and particularly unique requirements demanded from a portfolio company executive. There are two big fences to jump in order to secure that ‘pink giraffe”:  the pure credentials fit and the interest and motivation of a candidate to join your portfolio company.

Depth of talent in a newly acquired portfolio company often tends to be far from what was promised during deal negotiations. Key functional areas might have no leader, resources are limited, and perhaps there are too many non-performers who had ridden on the previous owner’s shirt tails.

CEOs have to quickly plug gaps, and deal with the impact of change. But who has had this change experience – other than a CEO with portfolio company experience?

CxO candidates might possess extensive credentials managing a multibillion dollar division, but when faced with a few hundred million dollar firm they may not fare well when required to ‘hands on’ manage most aspects of the business.

A large MNC divisional CxO could well have been surfing long term curves, and delivered only small incremental change — part of a bigger universe of decision making. Private equity, on the other hand, requires that they make decisions that will truly have a material impact on their business.

Coincidentally, these are good reasons why candidates might turn down what they’d see as a risky step in the first place. At the other end of the scale, a small enterprise leader’s depth of experience, even a tech founder, likely won’t measure up to the expectations of a private equity company with big growth designs.

Also, does the old asset-strip style and reputation still permeate people’s thinking of private equity? It’s uncertain, but without doubt the reputation of the industry still points towards a higher risk environment.

It is desirable to get these subjects out on the table from the onset. The right candidate will be interested in taking on a challenge and rewards through different motivators, and should not be fazed by such uncertainties.

Interest and motivation can be tested early in the search phase and agendas matched. The hiring team has to square with a candidate on what its expectations are, but a search firm can go deeper and evaluate responses to various scenario plays. Consultants can test a candidate’s response to how the role may play out, the personalities of the hirer, and how green the grass really is.

Challenges are clearly in abundance.

2. Making Concessions Without Compromise

When searching for your portfolio company executive, start with a true assessment of the challenge ahead. Make an honest evaluation of search parameters that will be out of bounds, and those that can be adjusted or compromised. This is not simply about eliminating the ‘like to have’ or ‘preferred’, it’s about how to open the search field, and compensate with other talent credentials to guarantee a timely, successful search and on-boarding.

• First, Agree Where to Compromise

Sticking obstinately to a wants list with your search partner often wastes time and effort. An overly assertive hiring manager lays down the profile, culture and must-haves; a job description is shared and honed; and the search firm charges ahead having carefully understood all the written and spoken nuances for the role.

The search consultant may realise there will be a challenge, but regardless heads into the process without disclosing real concerns, or red flags from the onset.  There is sometimes a fear that by exhibiting anything less than effusive agreement they may lose the search mandate.

After two or three months have dragged by, the pink giraffe has not been found. There’s then typically a discussion about compromises such as  ‘does the  candidate have to come from this type of competitor’, or ‘do they have to have this level of seniority’.

This usually ends with ‘well, let’s open up the field to…’  And now your search consultant will have to revisit the potential list, or start again with a few new, or previously eliminated, parameters.

You want to short-circuit this painful scenario, and have a frank discussion at kick-off as to what might be viewed as overly inflated credentials or elements that were cut and pasted in without thought.

It is a known fact that searching for the portfolio company head is difficult.  It is not like the process required for regular hiring.  In the world of the private equity company, making concessions might require setting aside certain egos and bravado, but it is important to filter the wish list and give reality plenty of air.

• Portfolio Company Experience

The quintessential first question on compromise will be this: whether or not to insist on past private equity portfolio company experience. Is it essential, or what compensating factors might there be? After you have looked at some core tenants for the role, certainly there is going to be a candidate demonstrating a huge capacity for building, transformation, adaptability, communication and resilience.

Facing a long and difficult search to find also specific, unique experience, square away with your search partner on the need for past portfolio experience from the outset. Avoid being obstinate just to trawl vainly for the elusive catch.

If a candidate doesn’t have a past portfolio company feather in his or her cap, look for personality attributes that indicate they will learn fast, and absorb this whole new world of Private Equity owned business.

You might also consider whether portfolio company experience in whatever position might not be a panacea in your own company. A unique type of business, for instance, may prioritise specific product/service knowledge over a portfolio company background – think tech firms playing a new game.

With or without portfolio company experience, a candidate must demonstrate clear cognisance of private equity company investment and divestment decision making; the dynamics of turning a strategy into practice; and how to interface between employees, private equity company management, and boards. They must understand how this clock ticks, and how a private equity company looks at business in its entirety.

In a high stakes, high expectations, fast moving portfolio company environments, is it realistic to settle for a humble consensus leader whose character likely doesn’t match your stereotype?

As with any tangential candidate your assessment must place all traits on the scales. The final decision will be heavily influenced by personality compatibility with you and your private equity company management team.

Part Four will identify means to extricate from a fixed mind-set, to think tangentially, and bring a search to a successful conclusion.

SHANGHAI, CN October 19, 2020 – Cornerstone International Group, a global talent management firm, has introduced a new executive search and leader advisory team in the Middle East.

Managing Partner and founder of Cornerstone Dubai is Stelios Pigadiotis, an experienced professional in enabling leaders and organizations to grow and reach their true potential.

He has more than 25 years of expertise in Executive Search, Executive Assessment, Leadership Advisory, HR Consulting, Executive Coaching and Leadership & Development.

“We are delighted to welcome Stelios to Cornerstone International Group,” says Chairman Simon Wan. “Stelios is widely known and respected in the Middle East and has a comprehensive background of experience also in North America, Europe, and Asia.”:

“He is a great addition to the team.”

From a base in United Arab Emirates, Cornerstone Dubai will serve clients in Saudi Arabia, Oman, Bahrain, Kuwait and Qatar.

Dubai is the capital city of the Emirate of Dubai and a busy regional business hub residing in the intersection between Middle East, Africa and Asia.  It has been a centre for regional and international trade since the early 20th century.

Cornerstone International Group is a leader in executive search and leadership development services in 37 countries.  It has head offices in Shanghai and in the United States in Atlanta, Georgia.

“I am delighted to be joining Cornerstone,” says Stelios. “I have spent many years in the industry and admire the way they conduct business and add value to their clients. I am looking forward to working with my new colleagues from around the world and joining the Cornerstone family.”

Cornerstone last year marked its 30th anniversary. To learn more, visit the global website at www.cornerstone-group.com

For Information
Stelios Pigadiotis
Managing Partner
Cornerstone Dubai
Middle East Region
Tel: +971 50 9722717 | +971 4 553 4742
Email: stelios-pigadiotis@cornerstone-group.com

The T-word is everywhere. Talent Acquisition, Talent Management, Future of Talent,  Talent Strategy.  Are we just trying to put a classier label on the old HR?

Not at all.  Talent Management (to pick one) is everywhere because it is destined to be possibly the most comprehensive reset of the modern business organization.

For at least two decades we have been saying that people are a firm’s greatest asset. But the “and so what” has been hard to answer. How do you “manage” such a dynamic asset in ways to improve the overall performance?

Leaps in technology have revolutionized, sales, marketing, supply chain and logistics. But how do you measure and assess the contribution of an asset made up of hundreds or thousands of volatile, individual units?

Let’s go back to the beginning. A job  came open. HR made a requisition. The recruiters (in or out) found the candidate, the machine was made whole again and God was in his heaven.

Recruiting is still a big part of Talent Management, but with a big difference.  Recruiting no longer stops at replicating the functions of the old job as the search criteria. TM now sits at the top table. It works with the organization’s leadership to understand the corporate strategy, identify the human capital needed to deliver it, acquire that capital, train, develop and monitor it.

So far, that is on a selective basis and tied primarily to recruiting.  But with amazingly sophisticated advances in technology, especially AI, would not a logical goal be the analysis and fine-tuning of every job in the organization relative to its contribution to the corporate strategy?

(Don’t miss a Cornerstone webinar next Monday, Oct 20th, when global leaders discuss The Future of Talent)

The field of operation is no longer one position, it is all positions and their cumulative efficiency.  The review period is no longer 90 days, it is ongoing. The success metric is no longer individual performance, it is the bottom line.

Getting here was no surprise. The talent pool continues to become much more competitive and individual capability much more varied and sophisticated.  The Conference Board, which surveys CEOs annually, reports their number one concern in 2020 is not being able to assemble the right talent needed to execute on their vision.

It is a shared nightmare in part because delivering the vision today is a lot more complicated. More moving parts. In  2016, only 57% of HROs aimed to make a measurable impact on business performance. Today, that’s 83%.

That requires understanding of the human capital contribution to a very granular level, the systems to measure it, the understanding of why and the the knowledge of how to improve on it.

Articles on TA in North America often offer the comparison with NFL football. You need the wise coach who sees the big picture, defensive and offensive units and special teams for those niche challenges.

There’s a certain logic there. But there is also a caution flag. Notwithstanding the new complexity of obtaining and maximizing that ‘greatest asset’, human capital, you don’t want to overthink this.

Talent management comes down to building and retaining a workforce of great employees to achieve organizational goals.

That hasn’t changed.  It’s just got harder – a lot harder – to do.

The rapid development of the healthcare industry in China has accelerated efforts to communicate between the various factions within the sector.  An example earlier this year was a customized training program undertaken by Cornerstone in Taiwan.

The client was a large pharma company and the task was to enable scientific exchange between company personnel and the medical / scientific community.

“The client needed to conduct effective customer engagement” explains Frances Lee, Director at Cornerstone Taipei.  “They wanted to be able to address important medical and scientific issues leading to improve patient outcomes.”

Participants were senior members from three departments of the pharmaceutical company:

1. The Medical Team
2. The Clinical Operations Team
3. The Regulatory Affairs Team

The classroom training was held face-to-face earlier this year, just before the onset of Covid-19.

Post-event interviews with the participants identified five key learnings from the training.

1. Participants learned how to gain customer insight through asking insightful questions with probing skills.
2. They understood how to do pre-visit planning and prepare for a successful visit.
3. They learned to engage in professional relationship building and networking.
4. They became able to handle complex issues through problem solving and building mutual trust.
5. They became at ease creating two-way conversations and uncovering pain points.

“The client was very satisfied with the customized approach of the training and the outcome,” says Lee.  “A second training session was planned for July but was tentatively deferred to Q4 this year because of the pandemic.”

 

Each participant gave concentrated attention to the speaker’s topic. From the post-training evaluation, client had a high degree of satisfaction. Participants gained a lot through role play during this workshop.