Month: September 2020

Long gone are the days when Directors of companies around the world simply had to comply with their local equivalent of the Corporations Act and any other specific legislation relevant to their particular industry, for example Income tax legislation, Trade Practices legislation, Stock Exchange listing rules, Foreign Corrupt Practices legislation and a plethora of banking and financial services regulation.

There is now an equally powerful unlegislated code that Directors must acknowledge, respect and respond to…community standards and expectations.

It is reasonable to argue that Directors and Executives should always operate in the best interests of not only their shareholders, but also within the broader interests of the community…unfortunately, that’s where theory and reality don’t always collide happily!

How many times have you heard a CEO or a CFO or a Chair say, ”but what we did was legal”…yes, but the question remains… was it right?

Over the past 10 years there has been a large number of cases where Directors have acted within the law and in the best interests of their shareholders, but acted well outside what is reasonable, in a dynamic and fast changing society. There is an argument that there is a desperate need to enshrine in the legislation and regulation within which Directors must operate, the changing and growing duties and responsibilities of company directors. Let us not forget, Corporations, and those who manage and direct them, play a vital role in the economic and social wellbeing of our society.

I suspect, not since the days of the 60’s and 70’s when society had a voice about the Vietnam War, the flower power revolution and birth control have we seen such agitation in society as today, around climate change and emissions control, financial services organisations acting responsibly and ethically, mining companies respecting the ‘traditional owners’ of the land upon which they mine, sexual harassment in the workplace, personal rights and freedoms.

Notable examples from around the world include major corporate collapses in the late 1990’s and 2000’s with Enron and Worldcom in the US, the banking and finance industry collapses in the USA and Europe in 2007/08 during the GFC and more recently in Australia with a Royal Commission into the Financial Services Industry in 2018/19. All these events have served to undermine public sentiment in ‘big business’ and the Directors governing those businesses. The issues are – corporate greed, profit over values and ethics, disregard for the interests of all stakeholders and a complete lack of respect for the general public’s expectations of big business. The groundswell has been building for a while.

Never has it been so simple for members of society to mobilise against corporations and their Directors through the all invasive and powerful social media channels, it’s almost instant and the impact can be dramatic.
Foremost in the minds of most Australians at the moment is the current situation with Rio Tinto, the world’s second largest mining company, which derives 90% of its global profits from the export of Iron Ore from the remote Pilbara region of Western Australia. The company recently approved, for mine expansion purposes, the detonation of the culturally significant (46,000 years old) Juukan Gorge caves in the Pilbara which housed on its walls irreplaceable early indigenous art and contained other significant artefacts. Bad move…the community and media reacted quickly and decisively as did several internationally based shareholders, forcing the hand of the Board to facilitate the ‘resignations’ of the CEO and 2 senior executives. Investors have now turned their attention to the Board where more heads may roll.

An outstanding example of where common sense and blind ambition collide badly.

In closing, let’s recap on the fundamental role and responsibilities of Directors:

1. Set the cultural tone for the organisation;
2. Set the governance framework and oversee its application;
3. Strategic direction and oversight;
4. Risk management oversight;
5. Determine and approve corporate policy;
6. Appointment (and termination) of the CEO;
7. Monitor CEO performance and provide counsel;
8. Operate ethically and in the best interests of all shareholders;
9. and now…recognise, respect and resolve to consider community standards and expectations in every decision made by the Board… forget this at your peril!

But there is hope… a conversation I had with a large company Chairman recently showed that at least his corporation was moving in the right direction. He said that just before every substantive decision or resolution of the Board is agreed, he asks the question of his fellow Directors, “what will ‘the person on the street’ think of this decision?”

Effectively asking if the Boards’ actions are in line with community standards and expectations. Hopefully this groundswell is also building!

By René Johnson – INAC Australia

Few situations in living memory mirror the kind of situation that everyone across the world is experiencing with the onset of the Covid-19 pandemic. It has been traumatic in varying degrees for those who have got impacted.
The first category are comprise those, who have got infected with infection, the most badly infected among them succumbing to the illness.

It has also been traumatic not physically but mentally for those businesses whose business operations have either come to a halt or brought down to a level where it has not been possible to sustain the business operations.

There is yet another category of people, who have either lost their jobs or for whom the writin on the wall is clear – it is just a matter of time before their services would be terminated. For us as Executive Search Consultants many of them would be people that we would know as candidates, with whom we have interacted in the past or in the present.

The situation created for this third category of people rendered jobless presents an opportunity for executive search firms to beyond their traditional role as advisors to corporations and to step up to the plate and extend a ray of hope and moral support to this third category of individuals to uplift their spirits and keep them motivated during a challenging period in their lives.

Here is what we as Search Consultants can do:

1. Do not let the candidates blame themselves for the loss of the job – let them appreciate that it is no one’s fault. Organization need to ensure that they stay financially viable. They would need to reduce costs, especially in situations where revenues have been dropping. One of the easiest ways to reduce costs is to let go of people.
2. Let them appreciate, that when one door closes another door opens. They may be stuck in a job that they do not enjoy but feel compelled to stay in it. Here is their opportunity to find an opportunity that interests them. Some of the most compelling executive success stories have been the result of the individual losing his job in one organization and leading the individual to take on another role, in which he/she enjoys far greater success.
3. Let the candidates take this opportunity to assess their own capabilities and strengths. Most individuals are not aware of their true capabilities and strengths. This is the time to make that self-appraisal. There are a number of psychometric assessment tools available. You could guide them on the most suitable instruments. They could also ascertain their true strengths in discussions with colleagues, relatives and well-wishers.
4. The fourth step would be for them to scope the opportunities in the marketplace in the current situation. Encourage them to do the research and discuss their findings with you.
5. Armed with a knowledge of their capabilities and strengths and a knowledge of opportunities in the marketplace, they may realize that that there is a skill gap, which requires to be bridged.
6. Encourage them to hone the skills required by researching and registering for these courses. With better preparation on their part, it is only a question of time before they are able to find suitable opportunities.

By Clarence Lobo – INAC UAE

The higher the level candidates have reached, the more difficult it is to change jobs and to find something locally appealing as the Slovak market lacks headquarter level jobs.With the COVID-19 pandemic, uncertainty is the only firm point in the market. Despite that, try to imagine a “business as usual” market situation.

The Slovak economy and labour market are dominated by the automotive sector. The automotive sector in its wider definition is therefore still the most sensible choice for executives with a relevant background. Slovakia is proud to be the biggest car producer per capita worldwide, but this also means the country is heavily dependent on the automotive sector.

Luckily the central European automotive cluster has grown and become complex, and thus strong enough to balance any potential market drop. An executive role in the automotive sector thus still seems to be a good choice, at least for the next few years.

Another promising sector is the mechanical engineering sector, especially in companies that have their own local R&D activities and are, ideally, part of some corporation.

These companies may not be as visible as those from the automotive sector but nevertheless are much more promising and “job safer”.

Shared service centres still booming
The shared service industry and technology sectors are growing. Shared services usually hire only managers with some previous SSC experience and the right cultural fit.

Any executive who has worked in a global organisation, for example in some regional role, may fit well as they are used to working with reporting-driven virtual teams in a fast-paced environment, more or less constructively deciding on a matrix organisation with advanced digitalisation.

There are several success stories among local technology houses, many not visible to the Slovak market as they exclusively sell globally. Luckily, they hire locally and that creates a greater chance for having a global career inside a company where the strategic decisions are made locally and swiftly, and can be influenced.

Try a local company – why not?
Very often a top executive with a successful career in a global corporation strives to find a proper job on the small Slovak job market, but is unsuccessful working for local companies. The main reasons are a lack of predictable behaviour by a locally owned organisation, a lack of processes that are usual in international corporations, lower pay and something that can be called a “culture clash”.

Still, medium-sized locally owned companies, usually export-oriented, create the best opportunity for any senior executive on the Slovak market. There are several reasons for this, among which is the strong interest of local owners (sometimes real, sometimes just proclaimed) to implement processes used in global corporations, the opportunity to influence a company’s strategy and, instead of being just a small wheel in a global corporation’s gearwheels, the possibility to be the game-changer, to really lead and navigate a company.

In some cases, local owners look not only for managers with the above-mentioned skills but also business partners who may eventually become shareholders.

Naturally, this scenario is only possible for managers who are ready to get operative and don’t expect an ensemble of assistants and processes around them. These managers are ready to roll up their sleeves. Furthermore, they understand that a local company doesn’t pay a global corporation remuneration even though the job is perhaps even more demanding.

“Ownership”, a hands-on approach, flexibility and humility are key to success. Too large an ego of some senior executives stands in the way of making the above-mentioned career step possible and successful, despite all the technical or business knowledge they possess.

Money is (not) everything
The higher the level candidates have reached, the more difficult it is to change jobs and to find something locally appealing as our market lacks headquarter level jobs. Seniority level and package expectations could prohibit a company from approaching a high senior professional. The candidate’s unrealistic package expectations could be considered in many cases the top show stopper.

One top recruiter described how executives usually say during an interview “I am flexible, money is not everything”, but then when recruiters insist and drill deeper it turns out the flexibility means maximum 10 percent package decrease.

“On the other side we have seen some really flexible senior candidates, even jobless and aged 55+, who were ready to change for 50 percent less than their last salary. They were competitive again and they were hired. In a new job, they can rise within one to two years again to the level of 80 percent of their previous salary, but they have to prove themselves,” he said.

In conclusion, stay open to opportunities, build and cultivate your own professional network and maintain professional relationships (not only when intending to make a change). A career should be driven by a purpose, and market opportunities explored according to career strategy. In small markets like Slovakia, a career is also a matter of reputation, so building a positive personal brand plays an important role.

By Mariana Turanová – INAC Slovakia

In our first ever “episode” we go to our INAC US member firm and interview Debra Young, Sheer Velocity’s Managing Partner and Co-Founder. Before co-founding Sheer Velocity, Debra was an Executive Vice President of a top five executive search firm working in Denver, Colorado. Debra has more than 17 years of experience in Executive Search.

Why Executive Search and If you did not end up in Executive Search, what would you ended up choosing instead?

I fell into the recruitment business while working in human resources for a Fortune 500 company. Four years later I was recruited by a former CEO who was looking to start a boutique executive search firm. I was his first hire and that was 17 years ago and have been in the executive search business ever since. It is rewarding to be entrepreneurial where you are in charge of your own business and future. I still really enjoy the challenge that executive search brings every day but most importantly, I love being able to meet very smart people.
If I did not end up in Executive Search, I would have ended up following my passion for music playing in symphony orchestras. I have a bachelor’s degree and master’s degree in music performance. I started playing piano at the age of 4 and the flute at the age of 8. Most people never found me without my flute. I just loved performing and it was something that I excelled at. I feel the performance experience has helped me in the search business when doing business development as I can talk to just about anyone without fearing the conversation. Or, that just means I am an extrovert!

With such a long, intense, and fulfilling career what have you learned about the human being?

I have learned that most people want to do what is right which is so encouraging. Also, never judge a book by its cover. People are far more complex than I ever had imagined which has been confirmed to me time and time again by the work that I do with Personality Assessments. I really enjoy hearing candidate’s stories and understanding that everyone’s path in life is based on the decisions they make which makes every individual so unique. There is a lot of great talent out there that should be rising to the top. I believe it is our job as executive recruiters to help bring those great opportunities to them so that it will ultimately become a part of their continued path in life and their story.

During your career you were able to meet thousands of executives. In your opinion, is there a common trait for being successful? And if so, what is it?

Yes, I believe the common trait for being successful for executives is transparency and leading with courage. Transparent leadership is the key to fostering a culture of trust between leaders and their employees. Employees who are kept in the loop and understand their role in the overarching purpose and goals of the company are, understandably, more likely to put their trust in their employer. Courage is the quality that distinguishes great leaders from excellent managers. The defining characteristic of the best leaders is to have courage to make bold moves that transform their businesses. Courageous leaders lead with principles — their True North — that guide them when pressure mounts. They do not shirk bold actions because they fear failure. Courageous leaders take risks that go against the grain of their organizations. They make decisions with the potential for revolutionary change in their markets. Their boldness inspires their teams, energizes customers, and positions their companies as leaders in societal change. Leaders who lead in this way will soon be recognized and people will want to come work for their company. That is true leadership!

You have helped so many finding their dream job, do you feel that they have helped you find something in life as well?

I learned that there are many great people in the world. Hearing people’s stories has always been of interest to me. Everyone has a path that they choose to take. Parts are challenging as well as exciting and rewarding. Hearing those stories has allowed me to reflect on my own life story with a greater appreciation for the accomplishments that I have achieved and understand how unique I am. Additionally, understanding that these challenging times require grit and being able to come out on the other side in a positive way is what is most rewarding.

INAC has been part of your life for so many years now. How has this “relationship” shaped your professional and personal path/growth?

INAC has been a great organization to be a part of for the past 7 years. Being the US partner for INAC has allowed Sheer Velocity the opportunity to do international work which is exciting. The platform has also given us global breadth that we can talk about in business development meetings which has been a huge selling point for prospects and current clients. The platform has helped us grow from being a very small boutique to having a large global reach. INAC has significantly helped shape our brand, particularly in the US. I like being able to say that our search firm is the US partner for a top 40 global executive search firm. Personally, it has been so wonderful to connect with others around the globe who are in the executive search business that I would never have had the opportunity to get to know.

What has been, so far, the biggest life lesson you received?

So far, the biggest life lesson I have received is to not be afraid to take chances. I see that in my candidates who are willing to take on new roles in new cities with new companies. You do not grow unless you take those chances. Whether you succeed or fail does not matter, you will always learn something about yourself through the experience.