Category: News and Press Releases

How to competently strengthen the Board of Directors?

To be complete and to add value to the company, the Board of Directors must include several independent directors. Therefore, when we talk about search, we mean search from outside, and not within the organization. The more independent directors there are, the more benefits the Board brings to the business.

There’s a paradox: there are many candidates wishing to be elected to the Board of Directors, but when you start getting to know the candidates, only a few remain. This is partly due to high requirements. But it is much more important that only a few understand what kind of work it is and are ready to get involved in the process itself.

To begin with, let’s list the basic requirements for the Board composition.

Digital competencies. A modern Board of Directors must have a professional “skilled in IT and digital”.

Knowledge of the e-commerce market and marketplaces. Even companies that previously had a very indirect relationship to the consumer market are now looking for strategists who understand what e-commerce is.

Flexibility and speed. Making decisions in a situation of uncertainty and instability is the task of any leader on the Board.

Experience. As a rule, you need managers who run a business of the same or larger size. Another fundamental point is the experience of each director in different industries and different companies.

Basic competencies of a manager. Of course, the key competencies are strategic thinking, understanding long-term consequences, stress resistance. A candidate for the Board of Directors is required to have a balance: on the one hand, the ability to make other people hear you; on the other, listen to others and be able to negotiate. And of course, the talent to motivate.

How to find such people and make the right choice?

 

Monitor successful cases, select according to the task facing the business, do not be afraid to change people on the Board more often. If a company undertakes an IPO, the Board definitely needs a CFO who has recently led such a process. Is the key goal of the company digital transformation? List companies of comparable size that have implemented a digitalization project, review their Boards of Directors. If there is no BoD, look at the CEO, Strategy Director, or business owner.

Look in other industries. If a Russian company is faced with the task of creating a new marketing strategy and strengthening the Board with a Head of Strategic Product Promotion, then the best candidates are from international FMCG corporations or Russian tech giants. But back to the first point: look at the companies that have done similar projects, and at the specific people who have implemented this and who have proven experience and practice.

The diversity principle works great for the Board of Directors: the more people with different views on the problem and different experiences there are on the Board, the more effective the body is. The Boards don’t need like-minded people who agree with each other.

Estimate the real-time the candidate is willing to spend on you. The main stereotype that we face is: “You get a lot of money, you spend several hours a year at meetings, you don’t really need to do anything.” In fact, every Board meeting requires hours of preparation, metrics analysis, digging in numbers, and some serious diving.

 

Ask the candidate the right questions right away:

1. “Why do you want to serve on the Board?”
Correct answer: “I am interested to participate in the strategy to move the company forward and apply my knowledge”.
2. “How much time are you willing to spend?”
If a person says that 4 meetings a year are 10 hours of his/her time, then this is not your person.

Be sure to evaluate. Flexibility, strategic thinking, stress resistance, leadership are excellently assessed by professional methods, primarily the Hogan and Talent Q questionnaires. The assessment and recommendations of other colleagues in the market should be a mandatory stage of selection to the Boards, which are still formed on the basis of acquaintance and friendship.

Look for the successful and wealthy. As practice shows, people who have already achieved financial well-being and have proven everything to themselves are ready for real outputs. They have a completely different motivation: they go to the Board not for the sake of money, but in order to apply their accumulated experience and knowledge and expand their horizons.

By Marina Tarnopolskaya, Managing Partner at Kontakt InterSearch Russia

 

Directors, Executive Search, InterSearch, InterSearch Worldwide, russia

Matching top FP&A talent with organizational needs

One senior leader at a global private equity firm once admitted to us that the financial planning and analysis (FP&A) in its portfolio companies was a disaster. He went on to explain that he and his firm-level colleagues were frequently swooping in to patch things up before eventually seeing the same problems crop up a month later.

 Who can blame him? Finding the right talent is incredibly challenging, given the fast-paced marketplace and often-inadequate systems which do not fully enable the necessary extraction of information for FP&A professionals to properly perform the functions of their roles.

 Meeting your team’s FP&A needs is one of the most difficult yet important responsibilities in every organization. Even more challenging? There is no template on how exactly to address those needs. Variables include the size of the business; where the business exists in its life cycle; the types of products produced and / or services offered (B2B vs. B2C); and the general needs of the organization.

Understandably, those general needs have evolved over the years as companies sometimes struggle to keep up. To help, we have identified three types of FP&A pros:

Traditional

This is how FP&A has always been considered, but don’t mistake “traditional” for outdated. Many companies still need a CPA who comes from the Big Four Public Accounting Firms (Deloitte, Ernst & Young, KPMG and PwC) and has a structured accounting background. This professional is needed to create spreadsheets and run macros to produce trend analysis, variance analysis and price-volume mix analysis. They essentially plan, monitor and report on revenue and expenses.

None of this seems cutting edge, but adequately satisfying those needs will result in meeting FP&A requirements in many companies. Businesses which are more mature and don’t have that “hockey-stick growth” don’t need a complex FP&A skill set, so a more traditional solution may be the most appropriate.

Modern

This is where most Charles Aris clients are today. Modern FP&A leaders not only have an accounting background (CPA) but a well-rounded business view (MBA) as well. They leverage more analytics and business intelligence technologies to provide quantitative / analytical support to decision-making. The modern approach takes the collective view of what needs to be done from a planning and analysis standpoint at the corporate level and incorporates each of the different business units.

Cutting edge

This individual has all the skill sets mentioned above and then some. In addition to being a CPA and MBA, the ideal professional is a computer and data scientist who leverages technology to create real-time analytics and dashboards and provides integrated and collaborative planning that spans the entire organization.

Conclusion

Finding the perfect FP&A candidate differs depending on the needs of each client organization. As the aforementioned private equity executive shared with us, matching the proper pool of talent with the right organization is a difficult task, but it can be done with expertise and experience behind the wheel.

 

by Ryan Morgan and David Portney

Charles Aris Inc.

 

charles aris, Executive Search, InterSearch, Top Talent

Released: The Four Corners Group 2021 Consumer Products Talent Report

Examining the impact of the Coronavirus pandemic on Canadian food, health and consumer goods companies and their employees.

In 2020, food, health and consumer goods companies were at the centre of a very real and terrifying crisis that hit our country (and the rest of the world) without warning.  Multiple compounding factors put our entire food and health supply network, our country, and its people at risk.  We wanted to know, how did this impact the businesses, the people behind the scenes, and what are leaders focussed on in 2021 and beyond?

Consumer Goods, Executive Search, Four Corners Group, InterSearch, report

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Executive recruiters’ favorite books and podcasts for 2021

It’s a new year, so you likely sat down before the end of 2020 to create a list of goals to accomplish in 2021. If reading more or finding a new podcast is on that list, we have a collection of great suggestions directly from some of our firm’s recruiting experts:

 

Chad Oakley, Chief Executive Officer
“The Hard Thing About Hard Things” by Ben Horowitz

Greg Harper, Senior Vice President
“The 7 Habits of Highly Effective People” by Stephen Covey

Caroline Wilson, Vice President
“How I Built This” by Guy Raz (podcast)

Steven Stewart, Vice President
“Revisionist History” by Malcolm Gladwell (podcast)

Jill Jitima, Vice President
“Crucial Conversations” by Kerry Patterson

Sarah Becker, Vice President
“The Other 90%: How to Unlock your Vast Untapped Potential for Leadership and Life” by Robert K. Cooper

Ashlee Wagner, Vice President
“Untamed” by Glennon Doyle

Jody Karavanic, Vice President
“Where the Crawdads Sing” by Delia Owens

TJ Deal, Practice Leader
“The Last Palace: Europe’s Turbulent Century in Five Lives and one Legendary House” by Norman Eisen

Ryan Morgan, Associate Practice Leader
“Bad Blood: Secrets and Lies in a Silicon Valley Startup” by John Carreyrou

 

by Josh Kotelnicki
Associate Practice Leader at Charles Aris Inc.

2021, books and podcasts, charles aris, Executive Search, InterSearch

Construction World (Byggvärlden) interviews Talentia – InterSearch Sweden CEO, Klas Karlsson

The biggest concern is that companies do not dare to hire juniors and that we get a “lost generation” and a skills gap in the industry like the one after the real estate crisis of the 1990s.

This is what Klas Karlsson, founder and CEO of the recruitment company Talentia, says, who has noticed changing recruitment patterns during the corona pandemic.

The corona crisis has changed the labour market in several ways. Many employees have been either laid off on a short-term basis or made redundant. According to Arbetsförmedlingen (Swedish Public Employment service) statistics, a total of 97,923 persons have been notified of termination during the period 1 March-6 September 2020. Of these, 4,872 work in construction.

Many companies are waiting to recruit new employees during the crisis.

What worries me is that companies don’t bring in so many beginners, while the most inexperienced, with the shortest employment, who is made redundant first. There is a risk that we will have a skills gap similar to after the property crisis in the 1990s” says Klas Karlsson, CEO and founder of Talentia, which works with executive search in the civil engineering industry.

The crisis has hit the civil engineering industry differently. New construction of housing has had a tougher time than the construction side, which has barely noticed the crisis and with the Swedish Transport Administration as a strong client.

The crisis has also affected the workers’ side. Many employees choose to sit still in the boat when the labour market is uncertain.

Especially on the specialist side, you don’t want to step out in a worse order position. On the managerial side, recruitments are still being made. It’s a slightly lower activity, but managers are still open to listening to the right offers” says Klas Karlsson.

During a crisis period, many companies shy away from letting in rookies.

Many companies would rather spend six months looking for an experienced person than teaching someone less experienced.”

According to Klas Karlsson, the civil engineering industry must dare to become less dependent on the super-professionals.

We need to protect a continuous influx of younger and recent graduates so as not to lose skills to other industries. Another consequence of the situation in the labour market is that when the less experienced employees at a workplace are laid off, the more experienced staff are also allowed to do tasks that require less experience. A political reconnaissance is that the layoff support is wrong. Companies do not have a shortage of jobs – but a lack of paying customers. The support is good in the short term, but in the long term companies are losing development.”

Klas Karlsson also notes that the manager has missed out on an effective tool when the staff is laid off. The overtime tool disappears when the staff have worked their hours according to the layoffs.

This is striking in deadline-driven work. For many smaller companies, it will be a moment 22 when time is needed to win business and push revenues back up and running in order for the layoffs to be released. Instead, that time is spent renovating at home with almost full pay or playing golf.

The corona pandemic has naturally changed the managerial role. The companies have had to spend a lot of time on corona strategies. The managers who have been good at pushing through these strategies remain.

Leadership is incredibly important, and those who show decisiveness are not getting rid of it. A manager who has now acted safely and stably can go from “hanging loose” to getting a second chance.”

A new challenge for many Construction managers during the pandemic has been to lead remotely.

Delivery is easier than business development remotely. When it comes to driving sales and finding new projects, it can be more difficult to be creative remotely and the need to meet becomes greater” says Klas Karlsson.

The crisis has also acted as a catalyst. Corona has made things happen, things that were already underway, such as pushing through changes or laying off staff.

The manager has been able to hide behind the corona, and is not considered as harsh when the decisions are the result of the crisis. Perhaps you take the opportunity to get rid of skills that do not have the future ahead of you.

Klas Karlsson’s advice to companies in times of crisis is to dare to invest in recruitment and training so that you stand strong when it turns around.

During the pandemic, a service and renovation debt has been built up, which means that there will be a lot of pressure on, for example, the installation side.”

https://www.byggvarlden.se/risker-nar-foretagen-ratar-rookies-178363/nyhet.html

https://www.talentia.se/blogg/byggv%C3%A4rlden-intervjuar-v%C3%A5r-vd-klas-karlsson

Executive Search, InterSearch, InterSearch Sweden, InterSearch Worldwide, Talentia AB

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