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Heidrick & Struggles's New Strategy

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Jim Gernetzke Apr 15, 2009 3:57 PM GMT Did you even do the research for this story? I find it interesting that according to http://www.boardrecruiting.com/index.cfm (not BoardRecruit.com)Heidrick wasn't driven to change because of boardrecruiting.com, they are PARTNERING in it. AND, according to the Board_Recruiting_Board_Agreement.pdf, they are not charging "$350 per candidate", they are charging a $25,000.00 CONTINGENCY fee!
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Greg Selker Mar 3, 2009 11:05 PM GMT Both Kevin Kelly and Gary Burnison (Korn Ferry's CEO) have recently admitted what has been blatantly visible for a long time, the executive search model is broken. However, neither individual or firm is addressing the real issue. When they talk about the model being broken, they mean their financial model. The truth is, the process model that delivers a 50/50 chance of hiring someone who is considered successful in your company is the culprit. And the solution that the two biggest search firms have is buying ancillary consulting services and upselling those alongside search. This may improve their partner's and shareholder's pockets, but it doesn't change the fact that they, and the rest of the executive search industry, have painted themselves in a corner with a dramatically reduced value proposition. I've been beating this drum for the past 7 years. It's about time the market is waking up. Check out The Model ??Has Been?? Broken at http://www.selkerlead.net/blog/ to read about search solutions that truly deliver value with a new model, not just makeshift solutions that sound good on an investor's call.
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Leon Benjamin Feb 26, 2009 12:16 AM GMT It's the network stupid! Like the DIY industry, the consequences and implications of the 'end user' being able to supply itself is far reaching.http://winningbysharing.typepad.com/oaxaca/2008/02/recruitment-20.html
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John G. Self Feb 25, 2009 2:11 PM GMT The executive search model is decidedly transactional, not transformational. We have been slow to move to next-level recruiting because we were making too much money conducting business as usual. While Heidrick will diversify, smaller boutique firms can move into the market white space and innovate -- improved screening processes, be willing to share risks with clients and accept more accountability for the outcome of their work. A bad hire can be devastating to a trusting client.
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CEO Interviews Feb 19, 2009 7:45 AM GMT Thanks Kelvin for the insights about the industry overview. The Re-structuring is the need of today,but i am also concerned about the changes in the market scenario which would affect the consultancy industry. As the speech on Obama mentions the focus on manufacturing jobs which would lead to Service jobs.
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Al Feb 4, 2009 7:04 PM GMT Mr. Kelly has nothing to tell Wall Street because the search market is weak right now. While assessment and succession planning are important, it will be a long time until they make up 50% of the revenue of the firm. What is broken in his model is that the firm choose to go public, along with Korn Ferry at the begining of the decade. They did this because they needed to pay out partners, not for the good of clients. Now H&S cannot undo this problem, so they need to make acquisitions and find products to satisfy the analysts. The cash position is also before bonues are paid out, I believe. A number of firms(Whitehead Mann in London comes to mind) tried this same strategy, when they were public on the FTSE. Now they have gone back private.
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Brian Sullivan Jan 29, 2009 5:51 PM GMT The assertion by Mr. Kelly that the executive search industry model hasn??t changed in 55 years and is ??broken??, is true ?? if you are in one of the firms that hasn??t changed. In 2006, CTPartners changed their model of search transparency and clients responded with a positive response. We are the first firm and only firm to manage itself based on criteria the client cares about ?? placement rate, days to placement and stick rate. These numbers are independently audited, released, and available to all. Our major competitors ignored it and called it meaningless.Mr. Kelly talks about technology as an enabler. Where has this firm been?? Technology has been around, in some form, as long as the industry. CTPartners uses a proprietary web based, password protected technology tool called ClientNet. It allows clients to see the status of their searches 24/7. No hiding behind the curtain. If I were a Partner in one of these firms, I wouldn??t appreciate the call to action to ??cross sell?? other services when there has been no investment to fix their broken, 50-year old search model. Their search model is broken? I wonder how their clients feel about that?
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Greg Ruf Jan 27, 2009 8:07 PM GMT Sounds like Kevin Kelly is making the right moves to position Heidrick as a leader in recruitiment in the 21st century. Takes a lot of guts to move boldy in uncertain times!Greg Ruf, CEO, MBA Focus
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Grace Jan 25, 2009 7:15 PM GMT I see nothing new in this article. Executive Recruiters are not going to change because the economic environment.DaCare Consulting
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Norrie Johnston Jan 17, 2009 2:50 PM GMT Headhunters begin to listen to their customers ?Web-enabled recruitment is not new. Customers want top quality, speed, exactly the right candidate, and reasonable fees. This is web-enabled recruitment. Norrie Johnston, Exec Chairman, ExecutivesOnline
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