Transcript Document

An Overview of Executive Pipelining
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What is executive pipelining?
Executive Pipelining is a process by which experienced executive recruiting
professionals identify, assess and introduce market talent in support of a client’s needs.
• At the direction of the client, the team builds
a pool of market talent based on select
criteria.
• Individuals are assessed and qualified based
on experience and multi-point referencing
from peers, ex-coworkers and top senior
level recruiting partners. (Spacebar to advance)
These “stars” are introduced to clients to
address current and future needs, including
• Succession Planning (Long-term Needs)
• Unplanned Vacancy (Immediate Needs)
• Relationship Development (Deals, Partnerships)
• Market Intelligence (competitor, M&A, Due Diligence)
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Pipelining vs. Executive Search
Comment
Pipelining
Executive Search
• Retainer based on
Time/Resources
Hire’s compensation
• Active projects per fee
Up to three
One
• Success fee upon hire
$7,500
True-up (compensation)
• Peripheral intelligence projects
Included
N/A
• Who owns the data accumulated
Client
Search firm
• Delivery Vehicle
Dedicated database Email
• Addresses immediate vacancy
Yes
Yes
• Addresses long-term succession planning
Yes
No
• Introduces peripheral talent & networking
opportunities
Yes
No
• Tracks longer-term potential talent
Yes
No
• More hires = lower cost-per-hire
Yes
No
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Historical Facts
• Since we began offering pipelining services in 2006 Prospect City has never failed a client. All
remain active today, and in some cases we have become the sole resource for senior talent.
• Our long-term client partnerships create a better understanding of cultural issues and relevant
market issues, resulting in progressively faster completions and a higher-quality deliverable.
• Because we charge for time and not candidate compensation, more frequent hiring results in a
substantially lower cost-per-hire.
• Traditional search firms successfully complete less than 70% of projects. While one in three
projects fails, most executive search firms collect all of their fees within the first three months. All
of the risk is carried by the client.
• Average completion time for traditional executive search firms is 124 days. While we strive to
beat it, we guarantee that our close partnership results in a growing momentum that shortens the
time-to-complete significantly. In fact, one client hired 22 senior executives in a 30 month
timeframe due to the momentum gained through our the execution.
• Clearly, transactional executive search has a place. Since the 1950’s executive search business
models remain unchanged as does the fee structure. Some hiring executives prefer a short,
expensive transaction and want recruiters to go away until the next need arises. Others see
pipelining as an opportunity to invest in an talent-building source for their evolving business.
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How Do We Do It For Less?
We Were There
• Executive recruiters rely heavily on internal associates and research experts to generate candidates
for them. We have those individuals here too. In fact, all of our team members have over 15 years of
experience at prominent senior executive search firms.
We Hook the Fish - Clients Reel Them In
• We provide about 90% of what recruiters provide. We do not travel to meet and perform inperson interviews with prospective candidates. Instead we perform extensive telephone
interviews with prospective candidates, sources and references. We require our clients to get
more involved in the latter stages of the process, including in-person interviews where
appropriate, late-stage draw, and negotiating the final terms.
High Profit vs. Stability
• Frankly, executive search is a highly profitable business, with most recruiters profiting over 60%
on each search project. We exchange higher profits for a longer-term relationship with success
for our teams and for our clients. Clients get an extension of their HR strategy focused solely on the
talent market for succession planning, recruitment, intelligence, and talent tracking purposes.
Few Off-limits Issues
• With longer-term relationships we can keep our client portfolio small, avoiding the off-limits issues
that large search firms face. Transactional search results in a large client base, each of which is
off-limits to the recruiters. How can they deliver the very best talent in such a restricted talent
market?
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Delivery Vehicle:
A secure, proprietary database is included, and is accessible from any location
using a web browser.
Customizable to match
your needs, including succession
ABC Company
Clients own all data
Stores and retrieves
documents
Incumbent
ABC Company
Internal Successors
External Introduced
Links to valuable web
resources
External Candidates
Accessible via the web
Solid, stable and very
secure
External Prospects
External Sources
Embedded email system
for auto notification and
delivery
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Sophisticated reports
Profiles & Reports:
Users can download profiles and reports directly
from the database.
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Pricing:
Prices are based on time and size of team and no long-term contracts are
required. Clients can expand, reduce or suspend activity at any time with no
penalties.
Service Retainer
Our base retainer structure requires a $15,000/mo. fee for the first two months, after which the monthly retainer is reduced to
$10,000/mo. At this rate, clients have a three-member team managing up to three active projects at any given time. The team can
be redirected at the client’s discretion.
Success Fee
In the event an individual presented by Prospect City is hired or contracted by your company, we require a $7,500 success fee due
upon acceptance.
Technology
Base technology is included at no additional charge. In the event the client suspends all of the Prospect City activity, the client may
opt to lease the database (unlimited users) for a one-time license fee and monthly subscription fee. Any additional database
customization requested by the client will be performed at a rate of $150/hr. (most customization is free)
Reimbursable Expenses
No reimbursable expenses will be incurred without permission from the client in advance.
Suspension/Cancellation
In the event of complete suspension billing will cease immediately. Any outstanding invoices are expected to be paid. In addition,
any active candidates are subject to a success fee for a period of 180 days. Active candidates are defined as those individuals
assessed and delivered by Prospect City for the purpose of hiring. Any re-activation will NOT require any surcharges for the startup
period or technology.
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Relevant Projects
$15B Manufacturer
Duration: 12 months
Project: President
Results: President
Leading Private Equity Firm
Duration: 24 months
Project: Portfolio Succession
Results: CEO, COO, CFO
+ Young, industry-leading six sigma expert hired to
build formal function
+ Top HC CFOs in medical device mfg. led to
acquisition and ongoing competitive advantage.
+ Formal cross-company partnership (JV) to develop
best-practices in chemical mfg. across both Cos.
+ Managing Director for European Office.
Cost: $153,000 (total savings over
traditional recruitment=$180,000
$70M Global Professional Services Firm
Duration: 30 months
Project: Consultants
Results: 22 Hires
+ Due Diligence for CEO, $19B Co.
Cost: $285,000 (total savings over
transactional recruiter=$330,000
$900M Technology Company
Duration: 18 months
Project: Talent Upgrade
Results: 6 Hires
+ Competitive intelligence
+ New role created for industry star
+ Significant improvement in hiring process
+ Successor to CIO
+ Adjusted compensation structure
+ Technology company acquisition
Cost: $400,000 (total savings over
traditional recruitment=$1,150,000
Cost: $230,000 (total savings over
traditional recruitment=$370,000
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Team
Robert Stein has over 27 years in senior level executive search. His employment experience
includes Russell Reynolds Associates, Korn Ferry International and Crist Partners. Since he
founded Prospect City in 2000, Bob has consulted for senior executive search firms, including
Spencer Stuart, Heidrick & Struggles, DHR, Stanton Chase, Signium International and
numerous boutiques on issues of process re-engineering, search execution, turnarounds,
technology and operations. Bob has managed senior level executive search projects for numerous companies,
including Arrow Electronics, Wachovia, BofA, Joy Global, Kraft, Gillette, Sun, Brickman, Blackstone and more.
Nancy Brereton has over twenty years
of experience managing human
resources and executive search. Prior
to joining Prospect City in 2006, Nancy
spent 8 years with a top global
executive search firm, leading senior
level executive searches in industrial
manufacturing, consumer products and
not-for-profit organizations. Prior to
executive search, Nancy served in
leadership
development
for
Manufacturers Hanover Corporation
and later in talent management with
GTE.
Donna Skunda has more than thirty
years of experience in senior level
executive search, serving with a
leading global firm, Boyden, beginning
in 1981. She brings unique functional
expertise in CFO, GM, CEO and CIO
across all industries.
Prior to her executive search career,
Donna was a teacher.
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In addition to the selected team
members listed here, our firm has more
internal resources and close, trusted
relationships with numerous senior
level executive recruiters, management
consultants and a global network of
over 1,000 recruiting researchers
covering every industry, function and
geographic region. These resources
allow us to be flexible and responsive
to our clients needs, regardless of
complexity and scale.
For more information
call us at
847.487.4256
or email us at
[email protected]
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