Amy Suitter, Author at WilliamCharles

Winning the Best Talent: 7 Hiring Strategies for Mid-Sized Companies

September 19th, 2024 by Amy Suitter

By Bill Benson and Jeff McGraw

Large companies that have name recognition often start with an advantage when attracting talent. Candidates know who they are and they often have a reputation for offering good benefits and opportunities. If you are going to win the best talent you will need to take a strategic approach.

Whether hiring finance or engineering talent, or seeking a specialized skill set, you will often be competing with one of these “name brand” companies. Large companies indeed have larger budgets, talent acquisition teams and the best technology. Here are ways you can improve your win-rate when competing for top talent:

1. Promote the Opportunity to Make an Impact.

Employees feel particularly valued for their contributions when they have a noticeable impact on the company’s success. Create an environment where employees are allowed to take on broad responsibilities and projects that offer visibility within the company. Larger company roles tend to be narrower in focus and it is often harder to get noticed for promotion. Feature the ability to make an impact.

2. Focus on Career Development and Promotion Opportunities.

As part of the onboarding and integration process, implement professional development plan. Connect the incoming talent with a mentor and develop continuous learning opportunities through on the job training programs. Expose them to broader roles and duties to keep them growing and learning.

Provide clear and attainable career advancement opportunities. In small to mid-sized organizations, employees often have the chance to wear multiple hats and take on new challenges, accelerating their career growth compared to larger companies

3. Fine Tune and Promote your Company Culture

Small to mid-sized companies are often close-knit, empowered, collaborative and more personal than a large company culture. Clarify the differences offered by your company in a way to differentiate yourself from larger companies.

Work life balance is important to most employees. Develop comprehensive wellness programs and benefits that address physical, mental, and financial well-being. This can include gym memberships, mental health days, stress management workshops, and financial planning assistance. Offer family-friendly policies such as flexibility to attend a child soccer or football game, flexible working arrangements and work from home options.
Engagement with the community. Promote a purposeful culture by offering time off to volunteer in the community. Encourage community involvement which can lead to referrals.
Develop partnerships with local universities to tap into their talent pipelines. Offer internships, co-op programs, and collaborative research opportunities to attract emerging talent.

While large companies or “corporate” environments have their benefits, we find that more people enjoy working for small to mid-sized companies where they feel less like a number and have a closer connection to strategic decisions and top executives. Mid-sized companies are often less political, less bureaucratic and offer more direct opportunity and flexibility.

4. Offer Competitive and Flexible Compensation Plans.

While you may not match the salary of larger corporations, you can offer customized benefits such as work life balance, flexible work hours, remote work options, or extra vacation days. Consider offering unique perks like student loan assistance, wellness programs, or professional development stipends.

Provide opportunities for employees to have a financial stake in the company’s success through equity options or profit-sharing plans. This can be particularly attractive to candidates looking for long-term growth and investment in the company’s future.

5. Flexibility and Agility

Highlight the ability to work on cutting-edge projects or contribute to innovation in ways that may be less accessible in larger, more bureaucratic companies. Smaller teams can pivot more quickly and implement innovative ideas faster.

Emphasize the benefits of working in an environment where decisions are made quickly, and employees can see the immediate impact of their work.

6. Take a More Strategic Approach to Recruiting

Turn to third party recruiting firms to help target and recruit candidates who are not answering postings. This will give you an advantage over companies who are relying on large advertising budgets.

Offer employee referral programs and encourage your best employees to identify potential past colleagues or classmates. They are often the best advocates to promote the opportunity to like-minded potential employees.

7. Human Touch

Large companies utilize AI and automation to screen and communicate with potential applicants. Hone your communication to be more personal in style and tailored to the individual. Outreach should focus on valuable information to a candidate not what is important to the employer. In other words, the posting or outreach content should be focused on “attracting” rather than “screening”. Describe what you would like the person to accomplish, which is more appealing than a list of requirements.

Your initial live contact with the candidate should be warm and focused on understanding what is important to them. Large corporations may use automatic messages as a first contact. You can differentiate yourself from the start to build trust with the candidate.

Hopefully these tips will help you win the best talent!

Happy Hunting.

Hiring Right for Culture Fit

August 14th, 2024 by Amy Suitter

by Bill Benson and Jeff McGraw

If you are looking to hire individuals who will thrive in your organization, they need to have an environment that complements their style and approach to work. The gravity of culture fit becomes increasingly important when hiring leaders and is paramount if that leader is in an executive role.

Organizations will sometimes hire a new leader to adapt a culture. We often see this post-acquisition or during instances of ownership transitions. Organizations that need to change their culture due to market conditions or competitive pressure will need to consider several risk factors when approaching the change.

Failing to Consider Culture in Hiring Has Consequences

Owners, boards and top executives often favor attributes that lean toward their aspirations or a desired future rather than understanding who will successfully lead the current organization. Companies can be enamored by a person’s credentials or specific industry experience rather than a more holistic understanding of the candidate. These risk factors include the following areas:

Underestimating the Resistance to Change: Not fully understanding how current values, leadership styles and practices will react to a new approach. This can impact the effectiveness and performance of the new executive.

Misalignment of Expectations: Ownership and the new executive have conflict because they are not aligned fully on pace, methods and outcomes of changing culture. This falls into the category of “be careful what you asked for.”

Neglecting Employee Input and Ignoring Existing Strengths: This will lead to trust and morale issues which may result in losing your best employees. Listening and building upon strengths in addition to addressing needed areas of change will be more effective.

Lack of Communication: Failing to communicate the reasons for change and the role everyone will play in the change process, including the new executive, can be a critical failure point. Over-communicating needs to be the practice.

Lack of Support: Let’s assume you fully understand the factors involved in hiring your change agent. Failing to give the new executive the backing, support and time needed will hinder their ability to be successful. (See: Misalignment of Expectations.)

Understand Your Current Culture

The following diagram offered up by Harvard Business Review, and Spencer Stuart, offers 8 different organization cultures.

Lee Hecht Harrison does an excellent job giving examples and describing how these eight culture factors impact leadership activities in this article.

Hiring Right for Culture Fit: A Good Recipe to Follow

Vision and Values: Alignment in this area will ensure decisions and strategies that reflect the company’s core principles and lead to a more cohesive direction.

Leadership Style and Influence: A leadership style that aligns with the culture will resonate with and more effectively influence, motivate and retain employees.

Change Management: An executive aligned with the culture will be better equipped to lead seamless change.

Decision-Making: Culture fit influences decision making processes. The right fit will lead to someone making decisions that fit the values and be more sustainable in the long run.

Collaboration and Team Dynamics: Aligned leaders will create more harmony and an environment that is more innovative and efficient.

Brand and Reputation: Misalignment often leads to turnover and can additionally impact customer and investor satisfaction.

Long-Term Success: The right culture fit will ensure long-term success through continuity and consistent leadership.

Incorporating the right hiring specification which includes intangible “fit factors” along with effective behavioral and conversational interviews, assessments and references, are critical in identifying and selecting the candidate who will be most successful.

Check out another blog article we have on culture fit here.

Can we help you find a candidate that’s a good culture fit? Contact us.

8 Reasons For Outsourcing Your Executive Search

July 18th, 2024 by Amy Suitter

by Bill Benson and Jeff McGraw

Where do you start when you need to conduct a search for an executive level position? Do you have the internal resources to handle a project of this scope and evaluate candidates at this level? Do you need the search to be confidential?

Many companies hesitate about the cost of a fee associated with using a recruiting firm. While conducting the search on your own may save the expense of the fee, you also increase the likelihood of not finding and hiring the best candidate, which could cost you more in the long run. Networking or posting the position will lead you to some candidates and a few might even fit the role, but a thorough process led by a professional will help ensure you are achieving the best result.

Hiring the absolute best candidate should be the goal. It is about finding a transformative leader who can drive growth, innovation, and sustained success within the framework of your culture. Outsourcing your executive search with a professional search firm offers distinct advantages.

Here are eight reasons to outsource your search when the need arises:

Professionally Organize the Search: A consulting search professional will help you build the right specification, search strategy and internal hiring process. In addition, the search professional will help navigate involvement of stakeholders, internal candidates and constituent communication.
Better Candidate Pool: Executive search firms have extensive networks, research capabilities and the knowledge to access the entire talent pool rather than the 10-15% who might be actively networking and answering postings. Top talent will need to be recruited and won’t be answering postings. A better and deeper pool of candidates will always generate a better outcome. Additionally, you may want to increase the diversity of the candidate pool which can be done in a targeted way via a search firm. Recruiters may also be able to target companies that you are uncomfortable doing based on some type of relationship you have in the market.
Vetting and Discerning: Professional search firms have proven skills and methods to evaluate and assess candidates, not just for skills, but also for cultural fit, leadership potential, and alignment with your organization’s strategic goals. This added layer of discernment will lead to a better outcome and significantly decrease the risk of making an expensive hiring mistake. An executive hiring mistake is often 5 times the salary of the executive. The right fit from both a skills and intangible perspective will return the investment many times over.
Assistance with Every Step: You may not have the resources available to put the time into conducting a thorough search. The search professional will help you develop an interview guide, provide access to personality and psychological assessments, conduct references, background checks and bring other methods and tools to help you make the best decision possible. Having an experienced search professional walk through each step of the process with you is an invaluable resource.
Confidentiality and Discretion: Maintaining confidentiality during sensitive executive searches is crucial. Executive search firms provide a discreet process that protects your company’s reputation and minimizes internal and external disruption. You may have a need to conduct a quiet search while an incumbent is still in the role and the right consultant has extensive experience with this type of project.
Time and Resource Efficiency: Outsourcing your executive search saves valuable time and drag on internal executive resources that could be spent on other key initiatives. This also helps ensure you keep the project on track.
Negotiation and Offer Management: Experienced search consultants facilitate negotiations and manage offer details to ensure a smooth transition and acceptance of the position by the chosen candidate.
Long-Term Value: Hiring the right executive can have a profound impact on your organization’s trajectory. Working with a consultant that spends the majority of their time viewing and vetting top talent gives you a strategic advantage. Executive search firms help you make strategic hires that are game changers and contribute to the long-term growth and stability of your company.

Using the right executive search firm will provide a strategic advantage that goes beyond simply filling a position. WilliamCharles has deep and broad experience working across a number of different industries and sectors. We take pride in having close-up knowledge of the talent within our local markets around Grand Rapids, Michigan and Pittsburgh, Pennsylvania. We also offer capability across the Midwest and globally through an established network of partner search and recruiting firms. Partner with WilliamCharles today and let us help you find the exceptional talent that will drive your business forward.

Evolution of the CFO in Middle-Market Enterprises

May 30th, 2024 by Amy Suitter

by Bill Benson and Jeff McGraw

We have experienced a clear shift in the role of CFOs with our family owned and middle market clients. The CFO has always played a key role as a member of the executive leadership team and as a financial business partner. Risk management, cost containment, internal controls and increasing the value of the organization are typical areas of focus.

The CFO role has often been involved in strategic decisions but more as a catalyst rather than an alter ego. Today, CFOs find themselves involved in leading change, innovation, and business development decisions. One factor driving this change is the need for data and dashboards across the organization. In addition, the CFO is often at the helm solving problems and leading change, which also requires the right data to navigate successfully. This expanded role often requires transparency, more communication and emotional intelligence – (not always qualities associated with a finance leader.)

Many small to medium-sized companies have been operating fine with a controller who is more of a traditional accountant and less business focused. However, not every accounting leader is able to adapt and transition to a more conceptual and strategic role. This gap between the traditional controller and strategic finance leader becomes obvious and apparent when an organization faces a downturn, a growth spurt, or another type of change.

Here is a deeper look at what has changed in the CFO role.

Broader Responsibility Domain: While financial oversight remains a cornerstone, they now serve as key contributors to strategic planning, actively identifying growth avenues, and leveraging data for strategic insights as well as risk assessment.

Shifting Business Landscape: Middle-market companies face a host of financial and strategic challenges influenced by rapid digitalization, global economic shifts, and changing customer behaviors. CFOs must adapt to these evolving demands, displaying not only financial acumen but also an ability to pivot and drive innovation.

CFOs as Growth Catalysts: Today’s CFOs bring more than “check and balance” – they are growth catalysts. They play a vital role in shaping and executing the company’s growth strategy, proactively seeking expansion opportunities, forging strategic alliances, and overseeing financial aspects of mergers, acquisitions, and investments.

Tech-Driven Finance and Data Insights: The intersection of technology and finance is reshaping how CFOs operate. They harness advanced data analytics, AI, and automation to gain data-driven insights into the business. This empowers them to make informed decisions, optimize costs and foster a culture of innovation. Tech proficiency is now a fundamental skill for finance leaders.

Striking the Balance Between Finance and Strategy: Balancing financial stewardship with strategic leadership is an art. CFOs must maintain fiscal discipline while actively contributing to the organization’s strategic goals. This involves seamlessly transitioning between intricate financial analysis and high-level strategic thinking.

Fostering Collaborative Relationships: Effective CFOs understand the importance of nurturing collaborative relationships across the organization. They work closely with sales, marketing, and operations, to align financial strategies with broader business objectives. This collaboration fosters a culture of unity and shared goals. Finance has become every department leader’s “wingman” or more aptly put…wing person.

What Intangibles Are Critical? If you are a CFO and looking to build the right kind of capabilities…here are a few areas to focus your growth:

Business Savvy – Able to translate functional finance, HR & IT concepts to actions that support reaching business goals.
Critical Thinking – Utilize critical thinking skills, breaking down problems into components and using data driven action plans to positively impact the business.
Change Management – Bring emotional intelligence into play to advocate for change in a way that is digestible with minimal disruption. Successful CFOs are no longer command and control oriented. They need to be part of casting the vision and leading through influence.
Agile – Able to navigate constant change to develop both short term and long-term solutions. Work in gray areas and adapt plans along the way.
Team Builder – Able to build strong teams and get them focused on the right things that will drive results. Exert influence sometimes without direct authority.

Conclusion: The role of the CFO in middle-market enterprises is undergoing a remarkable evolution. No longer confined to managing finance departments, CFOs are strategic leaders driving growth, innovation, and success. By embracing change, cultivating collaborative relationships, and staying abreast of industry trends, today’s CFOs are well-equipped to steer their organizations into an exciting and dynamic future.

Hiring for Culture Fit in 2023

March 21st, 2023 by Amy Suitter

Hiring for Culture Fit in 2023 by Bill Benson

Are you struggling to find people who will stay with you long term? Do you have an intentional process to evaluate fit? We still see companies screening and measuring candidates against largely tangible requirements. Most companies see the importance of culture fit, but it hasn’t translated to the interview process. A best practice would be to evaluate both tangible and intangible qualities. If someone fails or leaves after a short time it is often related to how they fit within the company or some other intangible factor. Hiring an employee that fits well with the team and has a baseline of experience to build from is often a better hire than someone who has all the experience but doesn’t fit the company well.

It is easy to attach confidence to a candidate with parallel experience or be infatuated with a specific aspect like a skill set or competitor experience. Many of the factors we see as important are often skills that can be learned. Personality, drive, character, willingness to change, interest in learning and many other factors are inherent and won’t change.

The most discussed aspect of fit is “culture fit.” Culture fit refers to the compatibility of an individual with a company’s values, beliefs, and working style. The idea behind hiring for culture fit is that employees who share the company’s culture are more likely to be happy, productive, and stay with the company longer.

Consider employees within your company who are succeeding. What are the qualities they possess that make them successful? They have a good understanding of what it takes to be successful in your organization. It’s important to take a good look at the factors pivotal to the success of your top employees. This gives you insight on qualities to seek with your new hires.

When considering culture fit in the hiring process employers typically assess an applicant’s values, communication style, work ethic, and personality. This can be done through various methods such as:

Interviews: The interviewer can ask open-ended questions such as, “describe a culture that is a good fit for you?” “What elements or characteristics are you seeking in your next work environment?” “If you could wave a magic wand – what would you change in your current environment?” Here are some additional questions to consider.

References: Speaking to the candidate’s past colleagues or managers can provide insights into their work ethic and how they fit into a team.

Behavioral and situational interview questions: These types of questions can provide insight into how the candidate might handle different scenarios in the workplace.

Work samples and tests: Review a candidate’s previous work or give them a test or project that can give a clearer idea of their skills and abilities, as well as their approach to problem-solving.

Company events and activities: Inviting candidates to company events or activities can give them a sense of the company culture and help determine if they would be a good fit. Having the potential candidate spend some time in your environment will also give you a feel for how they fit.

Dinner or lunch: Having a candidate out with a small group in an informal setting like dinner or lunch will give you insight into their social skills.

Family-owned businesses have unique challenges and opportunities when it comes to hiring and building a successful workforce. Typically, these companies have strong cultures that value people, customers, relationships and teamwork. In the post covid environment, many of these family business values resonate with employees looking for stability in a caring environment. It is critical for these culture rich environments to take extra time to evaluate alignment. Here are a couple of tips for family businesses leaders:

Designate a key family member who has strong alignment and passion for the culture of the organization and involve them in the interview process.
Have a clear understanding of the elements that make up your culture and use those to help promote your brand. Elements like a focus on safety or employee development are examples that reinforce an environment that is meeting the needs of its employees.
Trusting relationships are developed when the employee believes the employer is focused on collective interests rather than profit. Make sure interviews are a two-way street where you ask questions about what is important to the candidate and what is important to you.
Develop purposeful opportunities for employees to volunteer and get involved with a community or not-for-profit organization. These activities will reinforce your culture of caring.

Here are some areas of “fit” to check that can contribute to an employee’s success:

1. Readiness to adapt and change
2. Self-Directed
3. Motivation and Drive
4. Values Alignment
5. Interest in Learning – Creative, Inquisitive
6. Capability to Work Collaboratively
7. Emotional Intelligence
8. Pro-Active – Able to “see the work” as well as execute.
9. Leadership Style
10. Character and Integrity

The cost of a hiring mistake can be 3-5 times the amount of the employee’s annual salary. A good interview, reference and assessment process will help you find a great fit for your organization.

Happy Employee Hunting!

10 Strategic Growth Questions for Family Businesses

August 31st, 2021 by Amy Suitter

10 Strategic Growth Questions for Family Business

By Jim Fox

Our guest column this month is written by Jim Fox. I’m excited to share insight Jim has learned throughout his successful career in growing businesses. He is now delivering that same insight to small and medium-sized companies needing his leadership and mentoring capability on a part-time, fractional cost basis. A great solution for companies who could use his extensive tool box!

Some advisors (bankers, accountants, lawyers, consultants, executive recruiters, insurance brokers, EOS implementers, etc.) of family-owned businesses, build advisory relationships beyond their standard services to better ensure their clients’ succeed decade after decade. This can be quite beneficial to family business owners when they are challenged with one or more of the following issues:

Market share is shrinking due to competitive changes
Sales are decreasing due to an industry disruption affecting customers’ buying habits
The owner is considering selling the business and the valuation is lower than expectations
The owner is transitioning the business to the next generation and is risk averse
The business cannot afford to invest in growth initiatives due to suppressed profits
The owner lacks time and/or desire to focus beyond the day-to-day operation

The following are 10 questions which family-owned business advisors can ask their clients to think about the big picture to generate more profitable growth and improve the probability of sustaining the business for generations to come.

What do you ultimately want to get out of your family business?

Understand the unconstrained desires of your family-business owner clients. Probe for clarity on what is most important, both economically and non-economically. Although there are nuisances to family-owned businesses, they should be run like any other business, which is to maximize realized shareholder value. This provides the foundation to support the owner’s goal relative to their family, employees or community. Family business and individual goals should be addressed carefully to keep harmony within the ownership group.

How confident are you that you are on a trajectory to getting everything you want out of your business?

The business owner may be on the trajectory, but more likely there are gaps or risks of gaps. Probe to understand what those gaps are. Regardless of whether the family-business owner wants to thrive or just survive, growth is needed to stay healthy. After all, costs rise, business markets change, and customer demand combined with competitive pressures evolve, often at an increased pace. Also, as a family grows, there are more family members to support.

Businesses that do not grow ultimately go out of business. Businesses that generate good cash flows, despite a stagnant business model, may not make it to the next generation or yield the desired price if sold.

A business mantra to grow forces a business to develop new products and services and deliver a solid value proposition to customers to be competitive. A growth mantra enables an upward performance trajectory which generates the financial resources to reward ownership, employees, and community. Growth needs to be healthy, resulting in incremental profits. After all, growth for the sake of growth is the ideology of the cancer cell.

What are your growth plans for the business? How were these plans developed?

Determine how much growth is sought and gain an understanding of the plans to achieve this growth. Understand past plans and growth achievement to inform the confidence level of executing growth plans. Probe how the growth will be achieved through a mix of organic growth in current markets, expansion into new markets, development of new products, M&A, etc. Regarding plan development, ask if these plans were developed in isolation, through brainstorming sessions and/or through using data analytical tools. Was there input from an advisory board? Brainstorming continues to be a best practice to unlock the creative power of a group which outperforms what can be achieved by any individual working alone. A newer technique to identify less obvious investable growth opportunities is to complement brainstorming with data analytics tools. This approach uses algorithms to find patterns amongst hundreds ofunstructured data sources to identify clusters and specific growth opportunities to expand organically or through acquisition.

Engaging an outside facilitator for strategic and business plan development can often improve the results of this planning process. The facilitator can help ensure that the approach used to determine the appropriate business strategies is fact-based and opinions of all team members are respected.

What are the biggest growth roadblocks your business faces?

Discuss the biggest threats to achieving the business goals, both external and internal. These may be legacy issues or unfavorable external trends which, if the business does not adapt, will present ongoing and increased headwinds. Note, competition should not be at the center of their strategy. Focus on external factors, especially accelerating trends, and look for opportunities to reshape industry structure to be better positioned with both customers and non-customers in the future.

How are your customers changing and what might they want in the future?

Examine market dynamics and how your client’s customer base is evolving to inform how this will impact their strategy. Improve the probability of investment success by gaining fact-based market insights versus decisions substantially based on opinions and gut. Extend thinking beyond current customers and brainstorm possibilities to reach beyond current demand. Providing your client with information such as market research builds your credibility. Share your synthesized point of view about what your client should consider to achieve their business objectives.

What could disrupt your organization’s growth?

Examine potential disruptions to the business, whether it is losing market share, increased regulatory requirements, or the effect of potentially industry game-changing technology. These are the sudden shifts that could have profound impact akin to what businesses experienced with the COVID-19 pandemic. How can the business be best positioned to align with favorable trends and mitigate the risk of unfavorable ones? Is there an opportunity to initiate industry disruptions to your client’s advantage? For example, how can a lower cost position and differentiation be achieved at the same time?

What should your business do more of to fuel growth?

Understand the commercial strengths of the business at this time. What are the foundational elements that should be bolstered or minimally maintained? To what extent can relationships and assets be leveraged to grow? Are there synergies with other businesses owned, privileged relationships with customers or industry specific talent, or competitive advantage from distinctive capabilities, assets or processes?

How can products and services be improved from the current offering?

Explore how your client can improve the products or services they bring to the market. What are the opportunities to penetrate further with existing customers in existing markets? What are the product or service opportunities to enable this? What are the logical market adjacencies to current markets and opportunities to win with existing products? Which new products or services grow the bundle sold to existing customers or win more customers in existing and/or new organization where they are part of a “greater good.” Community volunteering or other employee enrichment programs will provide another reason for people to stay.

How is your community?

One of the reasons people stay in their jobs is due to relationships they have with co-workers and their boss. This has become more difficult through a movement to “remote” and “hybrid” work. Managers will need to find new and creative ways for their teams to build those relationships with each other or they will lose this “stickiness”.

Managers who are spending their time and energy on upward “impression management” or who lack a strong connection with their direct reports, will lose their top performers. A thoughtful and planned approach to management is critical for every leader. Everyone should assume that their best talent is being recruited every day. The truth is the bar has never been higher for leaders in today’s environment.

Sources:

6 Steps to Building an Onboarding Plan

February 23rd, 2021 by Amy Suitter

6 Steps to Build an Onboarding Plan

It is natural after completing an exhaustive executive search to feel as though you have reached the finish line. Studies show the real work begins when the new executive begins employment. The first three to six months will have a major impact on the long-term trajectory of a new executive. 50% of executives fail or leave the organization within their first 18 months. This Harvard Review article also points out the actual cost of these hiring mistakes can easily be ten times the annual salary. (It is also well documented that these failures are rooted in mistakes and missteps during the first 3 – 6 months.)

The best approach is to have an onboarding or “integration” plan crafted in advance for the new executive beginning employment. The right time to build this plan is during the executive search if not before. Here are six steps for building that plan.

Build a list of goals and actions for the first 3, 6 and 12 months. This is a good companion to the job description. This list of goals, actions and desired achievements is often the best tool to use in vetting potential candidates. This will serve as the center piece of the onboarding plan. This also allows an opportunity to level set expectations across constituencies.
Facilitate key meetings and introductions. Of course, you will have an itinerary for the new executive that includes meetings with the key stakeholders surrounding the person’s role. Just as important is identifying other key influencers and individuals that may be “derailers” or “challenging personalities”. Having a good understanding of the political landscape will be important to this new person as they navigate this new environment.
Defining the Culture and evaluating candidates for culture fit is critical. Even if you feel you have hired a good fit for your culture, a new person will not inherently understand the norms, behaviors and idiosyncrasies that exist in an organization. Giving a new executive insight and guidance with these factors will provide them with a much less bumpy path.
Establish the right pace of change. We can all agree that turning the furniture over on the first day is a bad course of action. Organizations differ dramatically on the expected behavior and approach during the first 90 days of employment. In many cases the company is asking for this time to be focused on gaining understanding and building relationships. In other organizations the new person is expected to hit the ground running and evaluated on early wins. It is easy to envision an executive reaching for that “early win” only to find out it was a misstep. You want to hire people who will get things done, but ensure you are setting the person up to move at the proper pace.
Communication and feedback along with way is critical. Plan feedback events at three, six and twelve months. Create open lines of communication with check-ins daily when moments require it. Unanticipated questions will no doubt arise during those first days of employment. Your style might not be “directive”, but every new hire needs direction at the start. Everyone brings their own set of behaviors from their past work environments and cultures that will raise questions.
Understanding team dynamics is critical for a new executive. How to effectively work across an organization and how to build teamwork within the culture will be critical knowledge. What worked best in a previous culture may not be the best approach in a new environment. In some environments clear direction is critical and in other environments a more empowered group will be demotivated by a directive leadership approach. On the other hand, if a group is used to being “directed” …they may not adapt easily to an empowering approach.

It is always helpful to have outside coaching and advising firms assisting with onboarding and development of team members. Two such firms include:

Pondera Advisors – Leader and Team Development/Integration and pre-employment assessment & more. https://ponderaadvisors.com/

Avenue Consulting – Onboarding and Executive Coaching & more. www.avenueleadership.com

Sources and good reads:

https://hbr.org/2017/05/the-biggest-mistakes-new-executives-make

https://www.mckinsey.com/business-functions/organization/our-insights/the-organization-blog/it-really-isnt-about-100-days#

https://hbr.org/2009/03/why-the-first-100-days-matters

Hiring for Private Equity

January 21st, 2021 by Amy Suitter

Hiring for Private Equity

9 critical factors for CEOs or CFOs

By Bill Benson

The difference between winning and losing often comes down to having the right players on the team. Private equity firms have significant skin in the game and are acutely aware of the need to hire the right executives for their portfolio companies. PEG firms will typically prefer a candidate who has been part of a private equity grow and sell transaction. Candidates who have this experience are increasingly hard to find. It will likely be necessary to consider candidates who have relatable experience and the right intangibles. Here are 9 essential candidate qualities to consider when vetting your C-level executive for private equity.

1. Motivation – You need a driven candidate with a large motor to tackle the challenge and lead organization to a finish line. Money can and should be a huge motivating factor. The person who has been through repetitive sales exits may not be as motivated as someone looking for their first big win. This is not a fit for someone seeking work life balance as a priority.

2. Team Leadership – This is not an individual sport. It is critical for a team to work together to accomplish the mountain of work associated with building a platform or growth company. The right candidate will be confident without being arrogant. They will listen, ask questions and be genuine during the interview.

3. Transparent – The CEO and CFO are critical links in a flow of information. Withholding information or hiding problems will undermine confidence with sponsors and investors within the PE environment.

4. Smart – Intelligence on its own is not a guarantee of success. You will however need someone who can verbally and mentally hang with whip smart investors and equity partners. The person will need to have critical thinking capability. IQ needs to be combined with common sense and EQ. Sorry if screening by intelligence offends the egalitarians out there. PE is not an “everyone gets a ribbon” environment.

5. Temperance and resilience – It takes a level of patience, self-confidence, and open-mindedness to be highly functioning within this dynamic, team-oriented environment. Making sound decisions quickly and under pressure requires the person who can stay present during chaos. The right candidate cannot be thin skinned, easily agitated or intellectually rigid. Having failed or experienced significant challenges should not be considered a sign of weakness. Things will never go exactly as planned so you want someone who has experienced adversity. It is key to understand how they reacted to challenges they have faced.

6. Systems and Data Thinker – In a growth company environment, the leader needs to envision the company in the next state and put the building blocks in place to get there quickly. This person is often replacing an entrepreneur who did not have this capability. Having a combination of experience in larger environments as well as growth companies, is a good under pinning. More important is a person’s ability to lead by more than the strength of their personality. The right candidate will use data to make decisions, create repeatable processes and integrate with the right systems to support both the short- and long-term goals.

7. Shirtsleeve – Senior leaders in middle market PE growth companies will spend a percent of their time being “hands-on”. This is a key consideration if you are considering a corporate executive for a PE leadership role. This person will need to be ready to “zoom in” and “zoom out” to gain that hands-on understanding of progress to goal across the organization. Being able to both execute and create strategy is not part of every leader’s DNA. Many prefer to sit at a more strategic level. It is critical for someone moving from corporate to private equity to be prepared for a less cushy and resource laden environment. Being prepared to regularly communicate a “hands-on”, detailed understanding of the organization to investors will be required.

8. Bias for Action – Choose urgency over process or empathy. The clock is often ticking toward a time frame to sell. This creates a heightened expectation around the speed of growth or cost cutting. This person will need to be collaborative and be transparent with decisions. They will need to listen and show concern for employees but also make decisions quickly and backed with data not feelings. Some highly empathetic leaders who might thrive in some environments, may not be able to make decisions as urgently as the PE owned business requires.

9. Decision Maker – We have discussed that PE firms value urgency and data. It is also important that the leader can make decisions without all the information and under challenging circumstances. Often these decisions are shrouded with urgency, ambiguity, complexity and/or volatility. This requires using a combination of intuition and facts along with a mind that is open and agile. A good rule of thumb is articulated by the US Marine Corps which they call the ‘‘The 70% Solution’. This is used for warfare and combat situations, but it also applies to business.

How to Hire Better Talent

November 23rd, 2020 by Amy Suitter

How To Hire Better Talent

Selecting the Right Candidate

Successfully finding and hiring the best people is largely based on selecting the right candidate during a hiring process. We often see postings with a laundry list of requirements relating to very specific experiences, industries or even technical requirements such as software skills. These items are typically taken right off the job description. This leads to the assumption that someone who checks all the boxes or has performed a similar role will be the best person to hire. Why is this likely the wrong approach? Let’s consider these six options.

1. What are the odds that the perfect “experience” candidate is also the best potential performer? Even if the candidate that checks all the boxes is out there, it would be like arranging the moon and the stars for that person to also be the best performer or talent available. It is very often not the case.

2. Often the job description does not address what you are looking for the person to accomplish. Make a list of desired outcomes for the prospective hire. This provides a better screening guideline.

3. What factors do you consider when you promote someone from within? Do you look at years of experience and check lists of requirements or do you consider their performance? Why not look at the same factors for external candidates?

4. You want to expand the field of candidates, not limit it. The best candidates typically evolve out of a larger pool, rather than a limited one. Despite the pandemic, we are still in a talent short market, and painting yourself into a corner with a long list of requirements will not help you hire the best person.

5. Don’t “fall in love” with a particular attribute or experience. E.g. Worked for a specific competitor or company, degree from a certain school, or other singular “WOW” factor. These biases or perceptions often have little to do with actual performance.

6. Finally, don’t disqualify a great candidate because of a particular factor. Just because you had a bad experience hiring someone from a certain company or with a certain background, it doesn’t mean that it applies to all candidates with that attribute. We all have a tendency to project our past issues forward, but it is important to stay objective and be open-minded, so we aren’t screening out someone that may be a great fit.

How to Hire Better Talent

Selecting a Search Firm

September 9th, 2020 by Amy Suitter

Selecting a Search Firm

by Bill Benson

There are many good reasons for companies to use an executive search firm. Two of these reasons include gaining access to a larger pool of potential candidates and adding a layer of candidate evaluation and screening. This extra layer will provide objectivity to help mitigate the costly risk of a hiring mistake. The right search professional will help you navigate the process to a successful outcome. When it comes to finding an executive, one size does not fit all. Your most important decision about the search will involve selecting the right partner to help lead you to the right candidate. Whether you are leading a Search Committee hiring a CEO or you’re seeking a top executive or a key specialized technical resource…. choosing the right search firm partner will likely determine your success. .

This article will explore 6 factors to help you make the right decision.

1.Capability to Build a Complete Candidate Pool

The key to a successful search is building a high-quality and deep talent pool. This is accomplished by recruiting candidates who are not actively looking. Active or networking candidates are just the “tip of the iceberg”. You may get lucky and find a great person through an ad or posting, but it is hard to measure a candidate without strong comparisons. Make sure your search firm partner is primarily a search/recruiting firm. Understand how they are accessing the entire pool of candidates (iceberg). Many consulting firms and human resource organizations include executive search as a service offering. These firms are typically posting the position along with some networking. You want to make sure the prospective search firm is focused on researching and outreach as a key part of the process.

2. Where Should the Firm be Located?

I think we have all heard the quote “A profit is not without honor, except in his own land”. Don’t assume the right search solution is a large “national” firm and located in a big city. It is a misconception that a national search cannot be conducted from Grand Rapids, Michigan, Des Moines, Iowa, or any other location. A firm located nearby will be more effective in selling the local “place to live and work” to an unfamiliar out of town candidate.You will have less cost and flight risk with candidates who do not have to relocate. Every search starts concentrically with the local market or region, so leaping to a large city out of your area may not be in your best interest. The firm located near you is also more likely to care about building a long-term relationship due to having shared interests and contacts. Clearly if you are seeking a “C level” executive for a large company, someone who specializes in these positions may be located in a larger city or work for that “name brand” search firm. When selecting a firm specialized in a vertical space like Fashion, CPG or Pharma, that firm might be located where the industry is concentrated. Sometimes the best resource for a specific niche may be located in a completely different location.

3. Evaluate the “Person” Not Just the Firm

You might believe that hiring that “name brand” search firm will assure a successful outcome. It is more likely the person conducting the search will determine the success of the search. Top consultants at these larger firms are working on high profile positions. If you are looking for the CFO of General Motors, you want someone networked at that level. If you are a mid-sized company looking for an executive, then you often get a more experienced search professional when you work with a boutique, mid-sized firm. Ask questions to understand who will be conducting the search, vetting the candidates, and consulting on the assignment. A trusting relationship with the professional conducting the search is important. You also need a search professional who understands and can assess work style and culture fit. Often, an executive is derailed due to “fit” rather than technical capability. The right consulting resource will also help you navigate the onboarding/integration of the candidate as well.

4. Demonstrated and Repetitive Success

When selecting a search firm, you want a firm that can demonstrate that they have successfully completed similar searches. Everyone believes their business and industry is unique, but you do not need a clockmaker to find a COO of a clock manufacturing company. You need a clockmaker to make a clock and an executive search professional with repetitive success filling leadership positions with companies of similar size. The firm should have success within the function (finance, operations, sales) and/or the industry or related industries. The other two factors are the location and level of the position. If your position is a “C level” position in a Fortune 500 company then you want a firm that has worked on similar positions. If you are a mid-sized family-owned business, then experience with these organizations is important.

5. Gauge the Motivation & Commitment Level

Not every firm or individual will approach your assignment with the same level of commitment. Make sure the firm/search consultant is fully invested in finding the candidate who will deliver the best results. Do you have mutual interests or connections with the firm? How important is your business to this firm? You want to feel as though the search professional has a shared responsibility for the successful outcome beyond collecting a fee. Do you feel as though your relationship is important to them? Do they offer a guarantee that backs up their commitment?

6. Costs, Capacity and Other Factors to Consider

While you want to understand the total costs associated with selecting a firm you do not want to use price as a primary reason to exclude or select a firm. The value associated with hiring the right candidate should far exceed any price difference. You want to understand the search professional’s capacity to perform the search. If you’re selecting a firm due to their specialization within an industry, make sure the search professional is not hamstrung from contacting candidates who might be working for “clients” within that industry space. Ask whether specific companies are “off limits” because they are clients. This will give you a good start to determine the right search firm partner for your critical hiring need.Selecting an Executive Search Firm