For the past 18 years, I have been utilizing a powerful tool that I look at as my Virtual Board of Directors. I formalized this process into a semi-organized form of keeping in touch with people whose perspectives I respect. In some ways, this is my rendition of Networking 2.0. (Before you read on, I recommend you first read my thoughts about best practices for Networking.)

So, how does this virtual board of advisors work? To start, we have never had a board meeting, never met in person, and none of the members even know they are part of this esteemed group, yet all have played incredibly important roles in the development of my life and career.

Wait, what?

I know, this sounds like the visions of a lunatic, but bear with me.

I have a group eight trusted advisors with whom I communicate individually three or four times per year. This team has a singular, shared objective to be a critical source of information and feedback. I turn to them to act as a sounding board, to provide creative input, to offer common sense, and even to play around with crazy ideas.

To be sure, this is not a hodge-podge assemblage of people. The group is diverse by design and includes men and women of all ages, geographical locations and professions. The youngest is 28 years old; the oldest is 81 years old. Members represent global perspectives from Canada, the United States, Germany and the UK. Professional backgrounds are just as diverse with a human resources professional, a country singer, a senior level recruiter, a chief executive officer, and an entrepreneur. A couple of the members are retired, several work on their own, and others work for companies. This mix helps with the quality and breadth of counsel I receive.

Several key principles make it work:

It must be a two-way relationship. I make sure that each meeting or call fulfills a need for the other person too. That could be as simple as buying lunch, listening, or coaching. I call quarterly even if there is no clear need or objective on my part. It is good to just catch up regularly.

Imagine the individuals as a team around a table. Even though this never happens, I prepare as if it will. What is the objective of the next round of calls and meetings? What do I want to accomplish? I prepare as if I am going to a board meeting. I enter quarterly call reminders on my calendar and spend a few hours preparing for the first call since inevitably, that discussion leads to topics that I may carry into the follow-on meeting with other board members.

Eight is enough. I believe too many advisors can be a problem to manage, just like any board. That said, I also feel fewer than five may reduce the diversity and richness of the input. In reality, I probably catch six of the eight in my quarterly meetings.

Keep track and take notes. I admit it. I started out as an engineer and I like building spreadsheets and tables. I keep a matrix that tracks contact information, last call, input from each member and some personal information. The latter gets the conversation going on the next call. I also color-code the input. Crazy ideas (orange) have led to some of the most valuable paths I have pursued.

You are the membership committee. I carefully considered who I wanted on my board. Diversity was important to me for a number of reasons. I also thought carefully about each relationship. I suppose the board could flex depending on the need or issue, but I have chosen to stay with the same eight people for several years. Importantly, I would like to have someone in their twenties and over the 18 years, that person has changed several times. I believe if you tailor the team to the task, you miss out on a unique viewpoint from someone who may not be knowledgeable about the specific issue – but may have related experience that informs your thinking. I also value people who are “fun’ to talk to – who are interested and interesting.

There is no need to let each person know you see them as part of a team. I suppose this article lets “the cat out of the bag” for my advisors who read this article, but, I don’t think they need to know the structure since it may lead to assumptions about the issue or the team that might be distracting and irrelevant. The bottom line is that I enjoy keeping up with this group of interesting people and I want to make sure our conversations are as genuine as possible.

I would love to learn more about how you network and use feedback from your trusted advisors. Please drop me a line in the comment section. Let’s get our own discussion started.

Link(s) to Article:

https://www.linkedin.com/pulse/my-virtual-board-advisors-bob-ryan/

Those of you who follow this site know that I am a passionate believer in lifelong learning. One way that we promote that philosophy is in weekly “Think Tank” meetings with clients. At Shields Meneley Partners, we engage transition clients in discussions that take them well beyond their existing knowledge base to consider trends in other industries and parts of the world that could ultimately impact their own.

This week we were pleased to have Stephanie Kushner, CEO of Broadwind Energy, as our speaker. Broadwind manufactures, installs and maintains components for energy and infrastructure-related industries with a focus on wind energy — wind tower manufacturing, heavy steel manufacturing, service, construction, and precision gears as some of the areas of the business.

The discussion was wide ranging supported by energy use metrics in the US and around the globe in all areas of production and use — solar, wind, hydro, nuclear, coal and oil.

Here are a few facts to throw out in your next conversation to make yourself look even smarter than you are…

• There are 56,000 wind turbines operating across the U.S.
• A single turbine can power up to 900 homes
• Turbines are only producing electricity 40% of the time — the remainder being resets, technology adjustments and quiet contemplation (OK, I made that last one up.)
• A farmer can earn up to $7,000/acre leasing land for a wind turbine
• The greatest consumer of energy is corporations
• Wind and solar make strong economic sense and can be successful without government subsidies
• The largest remaining challenge — and greatest economic opportunity — is the creation of “batteries” that solve the problems of the intermittent nature of energy delivery and energy storage

#energy #management #shieldsmeneley #economicgrowth #windturbines

As boards compete to recruit highly sought-after diverse directors with a particular set of skills – such as technology and cyber-security expertise, for example – consultants are prompting boards to revisit some aspects of their compensation plans and to consider educational opportunities that could help their boards stand out to desirable candidates.

Generally, board compensation and attendance at global conferences aren’t the primary drivers that compel executives with data analytics or cyber-security experience to join boards, consultants say. However, on the margins, boards can optimize their recruiting efforts by making sure comp plans take into account the interests of younger, active executives and that onboarding and educational opportunities allow curious and intelligent but less seasoned board members to get a feel for an entirely different business or industry than the one they’re in.

“There is an element of board shopping that goes on,” says Hugh Shields, an executive coach who also works with board members at consulting firm Shields Meneley Partners.

Active executives, particularly those whose skill sets are highly coveted by boards, know they have “one shot” at an outside board seat, Shields says, so they try to find the best position they can. Executives will announce to colleagues and advisors that they’re interested in joining boards, visit the board practices divisions of search firms to get to know recruiters, and conduct their own networking to let board members know they’re looking for a seat, he says.

“There’s much more competition,” says Shields.

And while many aspiring directors are working hard to make themselves known to boards, it appears that many companies are creating similar wish lists for new board members, putting a premium on certain skill sets.

Among the 462 new directors who joined Fortune 500 boards in the past year, 55% were active executives and 42% had digital and social media or cyber-security expertise, according to a Heidrick & Struggles report.

A survey of 113 nominating and governance committee members conducted by Spencer Stuart found that the most high-priority recruiting profiles currently include women board candidates with technology experience. In three years, the profiles will also include minority candidates with digital and social media expertise, the survey found. Those skills will surpass financial and operational expertise, according to the results.

Therefore, many boards may be attempting to lure a lot of the same executives in the coming years, and the quest for board talent will grow increasingly heated. For some boards that have had recruiting challenges, directors may want to consider modifying their approaches.

Don Delves, managing director in executive compensation and practice leader for North America at Willis Towers Watson, points out that he sees a generational shift taking place as boards are recruiting more diverse directors. New board members, whom he calls “the human capital generation,” are more interested in workforces and question how people are valued by companies and the way organizations create shareholder and societal value. They also want to clearly understand what might be fascinating about a company and could interest them, he adds.

“They don’t hesitate to ask about the whole employee population and the whole pipeline of people moving through the company,” says Delves. Directors are asking, “Do you have the right people in the right places doing the right job?” he says. “That’s clearly a change that’s happening.”

Another Look at Equity

Directors aren’t primarily motivated by their compensation, and boards would be ill-advised to recruit a new member who was interested in a board seat simply for the money, says Dan Laddin, a founding partner at Compensation Advisory Partners (CAP). Most new directors are motivated to join a board if they believe they have the ability to contribute to the company they would be overseeing, and whether the work would be interesting to them.

Beyond those two screens, however, potential director candidates do want to understand how they will be compensated for their time, Laddin says. He notes that some of the active executives will be at different life stages than more traditional board members, with younger family situations, mortgages, school loans or children in college. Given that boards are attracting directors from a much broader pool of talent these days, board compensation becomes more meaningful than if the board were recruiting a former CEO, says Laddin. As boards diversify, they’re looking for a diversity of backgrounds in terms of career, which might also mean differences in wealth.

“The market for talent is highly competitive and companies can choose to compete or fall behind,” says Matt Vnuk, a principal at CAP. “One way to effectively compete for talent is through differentiation in compensation.”

A new director compensation report from CAP suggests that boards may want to revisit provisions allowing for initial equity awards to new directors. Initial equity awards have trended downward in recent years, but they could appeal to directors who are considering multiple invitations to join boards.

Among the 100 largest companies, 13 currently provide initial equity awards with a median value of $175,000, according to data from CAP. Vesting varies by company, CAP finds, with immediate or one-year vesting the most common schedule. An equity award upon election or appointment to the board can differentiate a director pay program in a way that ramps up new directors’ alignment with shareholders, Vnuk says.

“An initial award can make a lot of sense in attracting a candidate to your company versus another company,” Laddin says.

In addition, stock ownership guidelines, which have tended to grow more stringent as boards have adopted hold-until-retirement or hold-until-after-retirement requirements, could also be revisited, CAP suggests in its report. Directors could be required to hold stock until their holdings are equivalent to a five-times multiple of the annual cash retainer, for instance, rather than holding stock until they leave the board.

If a director joins a board and is paid half in cash and half in equity and is required to hold the equity until they leave the board, that means they’re only earning roughly 25% of their total compensation because they’ll be required to pay taxes on the cash compensation, points out Laddin. Having access to the other portion of their board compensation could be valuable to an actively employed board member who is at an earlier stage of their life and career, he says.

“If you can use compensation in a way to differentiate yourself in the recruiting process in away that remains very responsible, that’s certainly a plus,” says Vnuk.

Director Education

In addition, other issues to consider include onboarding and director education opportunities, says Delves. Once pay is competitive, it may not make a difference to some executives, he notes.

However, if a board can emphasize the importance of the job and provide opportunities to take in-depth corporate governance courses at top universities, a membership with the National Association of Corporate Directors or a subscription to board-director-focused publications, for example, an active executive could be interested in the opportunity to dive headfirst into learning about corporate governance.

In addition, Delves says that director orientation programs should be organized to allow executives the chance to visit company headquarters and offsite plants and locations and talk with executives and learn everything they can to immerse themselves in the company they’ll be overseeing.

In addition, boards benefit when directors bring broader perspectives into the boardroom, he says. Attending conferences or traveling to the Aspen Institute or the World Economic Forum in Davos, Switzerland, helps board members stay on the cutting edge while also bringing ideas back to the boardroom. Depending on the amount of time a director has and the board budget for education, one conference or event per new director could provide an interesting education component to board membership.

“Some of them are already making a lot of money,” says Delves. “What can you do to make it interesting and a whole fascinating adventure for them to take on that’s different from their daily lives?”

Originally Posted: https://www.agendaweek.com/c/2535213/302043/comp_conferences_help_board_recruiting?referrer_module=issueHeadline

I recently had the pleasure of writing an article about how the intricacies of ordering wine at a business dinner offer the wonderful leadership opportunity for anyone bold enough to take that initiative. After 15,000 views, thousands of likes, forwards, and comments, I thought now would be an opportune time to serve up a second round of advice.

Before I jump into this article, I wanted to express my sincere appreciation for all of the reader comments from my first piece that reminded us alcohol and business do not usually mix. To be sure, careers (and lives) have been ruined by alcoholic overindulgence. I am simply stating that, in moderation and in the context that I laid out earlier and in my last piece, there are unexpected, and real, leadership opportunities that when executed properly, should not be missed.

Based on reader response and my own experiences, especially as an executive coach and transition expert, I came up with a handful of additional tidbits that will help you showcase your leadership when it comes to taking command of one of the most stressful parts of a business dinner.

Corked

Sometimes it can be difficult to tell when a bottle of wine has already been opened, left to the elements for too long, recorked, and served to your table. You want to make a good impression and know what you are dealing with immediately after your tasting. Unsure of how to tell? I recommend running this simple experiment at home: during an evening when you are staying in, open a bottle of wine, share it with someone special, and leave a little bit at the bottom of the bottle uncorked overnight. Taste the remainder the next evening and now you know what to look out for.

Reliable

You have agreed to be the leader and to select the wine(s) for everyone at the table, but you are unsure of what type to order. Although I will not recommend specific brands, generally speaking, chiantis, especially when at an Italian food restaurant, are dependable. So is a Malbec. These are typically middle-of-the-road in terms of style, taste, and cost. If you are looking to make the safe bet, you should consider both of these types of wine.

Share the Glory

Drinking a red wine and a white wine at dinner could present a complication when it comes to tasting for the table. That is because, in my opinion as a level one sommelier, a person’s palate will not be at its best when tasting one type after the other type. This is a great opportunity to show off your delegation and team-building skills by handing off one of the tastings to someone else at the table. Empowering a colleague will go far in building the relationship with that individual as well as show everyone else how leaders comfortably share responsibility and gain trust.

On Top of It

If you are sitting at the table and the server brings a bottle of wine with a screw top, do not worry because that is no longer a bad thing. Really. There are some very good wines today that utilize this kind of closure and as the person in charge of making the determination on the wine, you should not feel embarrassed if a screw top shows up. If you have done your research and you know it is a good wine, you should have confidence in the bottle. Just wait until your colleagues taste it and realize they can trust you because you were right – another leadership success for you.

On the House

Here is an extra piece of advice about alcohol and business dinners in general that I have found to be very useful in my career. If you are like me, you usually show up to events early and that means you wait for your colleagues to arrive while standing at the bar. Since you are early, you will have time on your hands and that one drink can easily lead to one-drink-too-many. Next thing you know, you have had two servings before you even begin to drink wine.

Personally, that is way too much alcohol to consume for me to be comfortable in a professional setting. That is why I recommend either nursing one drink at the bar and bringing it with you to the dinner table when your fellow guests arrive or simply order a softer beverage, such as soda, juice, or water. Remember, you want to be relaxed, confident, and at your best, which includes being sober.

We are in the midst of one of the strongest economic expansions in history. So, why are we all so anxious? Perhaps, as my friend, Brian Hickey of Morgan Stanley cautions, “I’m always looking for the single snowflake that could cause the avalanche.”

The “noise” comes from all parts of the world – ideological battles between the president and congress, military confrontations, economic upheavals, and failures of social safety nets are 24/7 emotional and intellectual drains. As a business leader, it makes it difficult, if not impossible, to have confidence in short- or long-term strategies.

At times like this, the healthiest approach is to focus on things we can control. 

It is important to think about employment trends and employee attitudes. Having observed various economic cycles during the last 20 years, most of us are now experiencing the first “full employment economy.” Senior executives are developing an understanding of how organizations of the future will succeed.

When talent is scarce, the development of human capital is a strategic imperative. Your company faces significant risks if you aren’t factoring in the following implications:

•  Employees who are not even looking for a new job are being plucked out of organizations by search firms and competitors
• Targets are typically your top performers at senior leadership levels who influence short- and long-term business results
• Company loyalty is rare among Millennials and GenX’rs unless you give them a reason to fully engage in your company’s mission and purpose 
• Your most important role is to engage, retain and develop your people

How to Lead in a Full Economy

CEO’s are responsible not only for attracting top talent, but also in finding ways to retain them. This is no longer the job of HR leaders. The entire senior management team should be measured — and held accountable for — building an organization and a culture that makes people want to be part of it.     

Increasing employee engagement and loyalty isn’t easy. Today’s workforce is seeking more flexibility and independence. They want a sense of purpose and meaning. They want to be recognized. They want to make an impact. Taking a fresh look at policies can go a long way. Job-hopping and high turnover are typical hallmarks of leaders who are unwilling or unable to accommodate this new breed of worker.

How to Work in a Full Employment Economy

When I coach clients, they often ask questions about how best to navigate this environment. It can be tricky. Although they are perfectly happy where they are, I caution them to continue to build their networks and return calls to executive recruiters. You are in a position of strength when you have a job, but times and circumstances will change. Everyone will face a career transition sometime in the future, and these relationships will be invaluable. And that is when you should call us to be your transition partner.

Return that call from the recruiter, learn more about what he or she is looking for and consider taking the interview. Even if the role isn’t right for you, be a source and recommend someone else in your network. This simple, courteous, and thoughtful response will serve you well when you most need it. Having these important relationships in place will give you a huge leg up on competition when everyone else is scrambling to stand out with search firms when the economy turns downward.

How to Find Work in a Full Economy

Executives in the midst of a career transition actually benefit from a full employment economy but only if they are visible, engaged, informed, and relevant. Explore civic and other volunteer leadership roles. Attend workshops and seminars. Get in leadership shape. Write a LinkedIn blog to position yourself as a thought leader. We have learned that people on the sidelines have extraordinary insight into what is really happening in an industry because they are out of the day-to-day fray and can be more objective. When traditional candidates are difficult to find, companies are much more open to hiring mature, experienced executives who know what they are doing.

As an executive coach and expert in executive career transition, staying sharp and maintaining one’s edge is more than an occasional effort; it must be a disciplined lifestyle.

Today’s hiring landscape is a tough one. The 2008 recession eliminated half of the publicly-traded companies, and the frothy private equity market means that the PE partners are constantly seeking executives to run their portfolio companies. This demand has made negotiations much more fluid for executives and they hold a stronger hand than they have held in the last decade.

Many benefits typically included in executive compensation packages were eliminated during that time, but today’s war for talent has put many of them back on the table. Executives who seek CEO roles in PE are primarily attracted by having an equity stake that could result in a big pay day, but greater cash compensation certainly sweetens the deal.

Candidates for these roles now need a new set of negotiating skills. That is why we built a customized team of exceptional people to support and guide clients so they can negotiate the best possible compensation packages. The team typically includes an Advisor who has helped negotiate hundreds of contracts for our clients as well as an employment lawyer who knows the legal ins and outs. But that’s not all. We also have a senior research analyst who conducts a compensation study to compare a dozen peer companies and roles to ensure that our client’s offer it at or above market value.

We find that business leaders known for hard-nosed negotiations when it comes to their companies often find it challenging to negotiate their own employment terms. More often than not, they don’t realize that they are leaving money and benefits on the table. We know the points of leverage in an offer that make the difference in a below average or a generous compensation package. And these negotiations are handled in a way that protects the relationship going forward.

Believe it or not, companies want senior executives to push back because it demonstrates that you will also negotiate aggressively on behalf of the company. These back-and-forth discussions become part of the interview process and instill confidence about the new leader before you even walk in the door.

Not to state the obvious, but although markets are strong today there will be a tipping point. There are things you can control, but every executive and company is buffeted by outside forces. Negotiate aggressively while the good times last.

Anyone in job search mode needs to plant a lot of seeds.

When it comes to a person’s job search, networking is more about farming than it is about hunting. That’s because networking typically results in the person planting the seed for building a relationship that will lead to a recommendation, which will eventually lead to that next job possibly directly, but most likely indirectly.

The farming metaphor works because anyone in job search mode will need to plant a lot of seeds, or make those initial connections, which will need to be nurtured through time as part of the networking strategy. The idea is that all of the seeds will germinate and spread their roots into a vast network. The key to this strategy is that during the various networking meetings or calls it is advice that candidates are asking for; not a job. All it takes is one of those many root systems you have planted to land that job

Consider the following scenario: Widget Co. publishes a job description and its human resources director receives hundreds of resumes and applications. The benefit of having a strong network means you could very well have a connection who has a direct line of communication with the HR director or other “inside” executives and hands him or her your resume. Suddenly, your candidacy has been prescreened and you are now one of 15 rather than one of 150. None of this would have happened if you had not networked and made the effort to get to know that connection in the first place.

“In order to network, you just need someone – anyone – in the company to pass on your resume to HR or the hiring manager…it doesn’t need to be an employee in the same department you want to work in, and it doesn’t need to be a senior executive,” writes AdAge. “Be flexible on time, go to their office or volunteer to chat over the phone if that works better for them…the key is to just make the connection.”

Continuing along the farming metaphor, when you plant those crops, they are done so in a methodical, organized and purposeful line where one seed leads to the next seed. The same for networking. While you certainly want to leave yourself open to expanding your network, you should do so strategically. Although networking may start with just about anyone, eventually the idea is to target your industry and then figure out who you may already know in that vertical or at least who you may know who can pass you along to someone else. Think about the five-to-eight people you should meet because they are well connected. Also consider other groups of people in your network who you can inform through a short email with a personal update and mentioning you are in a search campaign.

“The craft of building a network of clients and colleagues isn’t about casting a wide net,” writes former private investigator Hal Humphreys. “It is about seeding real relationships [and] it requires time and calculation.”

As a final point, there is one more key understanding about networking for anyone looking for a new job. This is a long-term endeavor; not a quick-fix to your next gig. Be sure to keep fertile all of those seeds you took care to plant because you may need them again, or they may need you, and rather than starting the process all over again, you can hit the ground running with your network already in place.

As any farmer will tell you, growing crops requires strategy, execution and most importantly, patience. You probably met the person who will lead you to the right opportunity months ago when you were planting those early seeds.

Robert J. (Bob) Ryan is Partner, Executive Coach and Advisor at Shields Meneley Partners.

Originally Posted: https://www.financialexecutives.org/FEI-Daily/September-2019/Networking-Is-All-About-Farming;-Not-Hunting.aspx

The social contract between employer and employee that was in place for generations has pretty much fallen by the wayside. In the past, people worked in one company for a lifetime believing that the company would “take care of them”. Today’s C-Suite needs to be prepared for a bumpy exit no matter how unlikely he or she may think it is.

Don’t believe me? Here are just a few stories of some of our clients:

A CEO of a $400M healthcare company was fired without warning. The news was leaked to the press before he could reach his family. A local television reporter called his home, his 16-year-old daughter answered, and the reporter asked, “How do you feel about your father being fired?”

If that doesn’t make your stomach turn just a bit, how about this one:

The chief operating officer of a private company had been promised that he would succeed the chief executive officer when the time came for a leadership transition. The founders called him into a previously unscheduled meeting, fired him on the spot without cause and then dared him to do something about it, saying: “We are not going to honor anything in your contract. If you don’t like it, sue us.”

These are just two of the many stories we have heard from our clients and each one makes us angry because it is avoidable.

No matter how poorly a termination is handled you must keep your cool. Take it in, control your emotions, let the person know that you need time to process what you have been told, and terminate the meeting as soon as you can. It is important to remember that every action you take while in, and after that meeting, may well determine everything that happens later.

Most of the clients who come to us are at the top of the leadership ladder – a Board Member, a CEO, a direct report to the CEO, or a Division Officer – but no matter who they are, they need a solid reference from the organization they are leaving. It is important to maintain a professional business demeanor because that is the final and lasting image that people will have of you. No one wants to help an executive who “kicks the furniture” on the way out the door.

Listen. I get it. We are all human and we’ve had situations where we let our emotions get the best of us. But don’t let this situation be one of those situations. How?

Breathe. Reach out to us. Using our confidential process, we can debrief you and help you understand what happened and examine appropriate next steps. We will ask a lot of important questions.  How was the situation presented? Who was in the room? How did they present it? What did you hear? How did you react to it? If we sense that our client took the low road, we offer solid counsel on how to regroup. Most senior executives are smart enough not to do anything rash or make idle threats, but they are justifiably upset – particularly if they didn’t see the termination coming.   But, our client has to go back to his or her former boss, apologize for the emotional response, and ask for their help to make the dissolution of the partnership as fair and equitable as possible to both sides.

Our clients have small but highly influential inner circles. When they later run into friends and colleagues, they are often asked, “What really happened?” It is our role to make sure that our clients have that answer ready to go – a truthful, carefully constructed, positive (or at least neutral) story that provides an opportunity to say good things about both the company and herself or himself.

After all, job loss is viewed as one of the top three most stressful situations in a person’s life – preceded only by the emotional disruption of a death and or divorce. That is why if you can’t rush through or repress the healing process that is required. Our team of coaches, advisers and executives have significant P&L expertise and understand the unique needs of the C-Suite. Armed with that knowledge and understanding, we help clients neutralize the emotion that can be so close to the surface when someone asks why he or she left. Once we have achieved that, clients will be ready to re-enter the marketplace with confidence.

Once that emotion is resolved, these very smart, talented and successful people begin to regain their perspective about who they are and what they have accomplished during the careers. As the process moves forward they will say, “Good grief. I’m not so bad, am I?” Or “Wow! I’ve really got a lot done, haven’t I?” They also recognize that they are in good company, because transitions are part of the risk/reward equation that is part of any top job.

Then it’s time to prepare for interviewing by developing compelling stories about the challenges they faced during different parts of their career, what actions they took to resolve them, and the results of their actions. This puts the “fire back in the belly” and they are ready to engage in finding the next opportunity.

This phase includes developing relationships by reaching out to those they know and meet, expanding their scope of influence, and interviewing for roles that are interesting and challenging. When negotiating for that that new role we are behind the scenes conducting compensation studies, recommending employment lawyers to review contracts (with appropriate severance provisions) , and developing a detailed On-Boarding Plan to ensure early success.

Signing on the bottom line to accept that new role is a moment we all relish and celebrate together. These men and women have learned from what came before, increased their self-knowledge, and developed fresh insight into what the market needs. They also know they can handle any unexpected change to their employment status with confidence.

We often meet senior executives who assume they will be showered with attention by recruiters when they enter a career transition. After 40 years of executive coaching, training, and corporate management, we know better.

Executives from larger companies who have reached the C-Suite have interacted with a number of search firms – either as potential candidates or as customers that retain search firms for an outside search. That’s a start, but the reality is that unless you’ve kept in regular touch with the recruiter – and frankly, how many do? – you will never be top of mind. Our clients are skeptical when we warn them about this lack of interest, but they soon learn this hard lesson.

It is Just Business

Executives often confuse a business relationship with a headhunter as friendship. It isn’t. As hard as that is to accept, it isn’t personal. They are in business to put the right person in a role, collect the fee, and move on to the next assignment. That is how they are compensated. Search executives who are willing to take time to talk with you when you are in transition are rare. (They are the good guys.) But, if they did that for everyone, they wouldn’t have time to do their job.

Although search is one channel, we advise our clients to network aggressively on their own. To read an excellent piece about the value of networking, I encourage you to check out this article written by our client, Jeff Patuto, whose story was published by the highly respected CFO magazine.

You Must Do the Work

Engagement with search firms requires significantly more work than most of our clients realize. “I talked to a headhunter a few weeks after I got out and so I’m good there. Their firm knows me and I’m in their database. The ball is now in their court and they will be approaching me with offers.”

It doesn’t work that way. You have to stay in touch with recruiters on a regular basis – we recommend every six to eight weeks – so that you are top-of-mind. Here is a template that should be customized when touching base with a recruiter:

“Dear (search executive)

I hope that things are going well for you and that you are taking some time to enjoy these welcome summer days.

I wanted to update you on my search. As you may remember, my CFO background includes Fortune 50 corporations, mid-cap private companies, and entrepreneurial ventures. I have been involved in corporate strategy, risk management, treasury, and M&A in manufacturing, business services, technology, chemicals, electronics and consumer products. I have been an advisor and Board member in public-private partnerships, PE portfolio companies, high-tech firms, professional associations and NFP.

I’m targeting a CFO role in a $500M to $3B public or private company in manufacturing or business services. I anticipate a $275K base salary with market-competitive bonus and equity or long-term incentives.

For your convenience, my resume can be downloaded using either of the following links:

I appreciate your help and look forward to hearing from you when you are engaged in relevant searches.

Sincerely,

_______”

Avoid This Fatal Mistake

It is crucial that you reach out to the right recruiters. We’ve seen candidates punished by search firms when they have made numerous inappropriate queries.  Recruiters consider these communications to be a waste of their time.

We once had a CFO who wanted to send his resume to a search firm that specialized in human resources because he “knew someone”. He would have looked like a novice. That is why we leverage our very precise (and expensive) databases to match our clients with the right recruiters and the right firms so they appear both informed and knowledgeable.

Don’t Get Blocked

When a recruiter contacts one of our highly attractive clients and ultimately puts him/her in front of a potential employer, the recruiter has an ethical obligation to “block” the candidate from further introductions. No search executive wants to present a single candidate to multiple companies at the same time.

If an executive and a hiring company don’t come to terms, the recruiter is supposed to “unblock” the executive in the database so he/she is free for future interviews. So many executives just assume this happens automatically, but recruiters are human and sometimes forget to unblock the candidate. This happens more often than anyone would like. That is why we coach clients to follow up with the search person at the conclusion of the process.  This allows the client to ask for feedback and then at the end of that conversation, to confirm he/he has been cleared of any blocks.

These are just a few tips for C-Suite executives on how to work most effectively with search firms. There are many others. Working closely with a transition advisor who knows the ropes can make all the difference in terms of how long it takes to find the next role and the compensation package you negotiate.