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Vol. 17 Belgrade office www.stantonchase.com Special edition: EMEA Meeting 2017
Vol. 17
Belgrade office
www.stantonchase.com
Special edition: EMEA Meeting
2017
Dear Readers,
This September, Belgrade was the host ofthe Stanton Chase EMEA Meeting. Ittook place in Falkensteiner Hotel, onSeptember 14th and 15th, with over 70consultants (26 offices) from Europe,Middle East and Africa participating inactive discussions and tackling variousissues.
Given the importance of this regionalmeeting, the criticality of the EMEARegion to Stanton Chase and its globalclients and the superior businessperformance of the Belgrade office, weused this opportunity to pose a fewquestions about the global trends inExecutive Search and the position ofStanton Chase within the industry to afew prominent members of ourorganization.
Enjoy reading!
Your Stanton Chase Team
10Interview – Miloš Tucaković
Regional Practice Leader EMEA for
Consumer Products & Services / Managing
Partner, Stanton Chase Belgrade
13Interview – Franz Rois
Marketing Director, Stanton Chase
International
02Interview– Mickey Matthews
International Chairman / Managing
Director, Stanton Chase Baltimore
06Interview – Gert Herold
Regional Vice President EMEA / Managing
Partner, Stanton Chase Vienna
08Interview – Tamara Severi
Regional Practice Leader EMEA for Life
Sciences & Healthcare / Partner, Stanton
Chase Brussels
In this issue:
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Could you tell us something aboutglobal trends in business andspecifically executive search?
I am pleased to report very positively thatbusiness leaders are working against many ofthe geopolitical trends of protectionism, andas leaders of industry we are witnessing theopposite of this isolationism and instead aredropping borders economically, trendingtowards multiculturalism and, while it istaking a little more time to gain full traction,real progress towards diversity and inclusion.The global business community is, in fact,focusing on international mobility, crossborder collaborations and is inviting andrecognizing diversity as a businessimperative.
The successful companies we see today arethose that are innovative, agile and arecollaborative across the matrix of countries,divisions, and functions. The bestperforming companies tend to be globallystrategic but concurrently have excellence inlocal execution focused on client service todeliver what the market needs with precision.The trend in Executive Search is to recruitleaders that possess many of these attributeswith a track record of success accomplishingthese goals for their valued customers.
These global economic trends are cascadingsuccessfully down to the executive searchindustry where demand for top talents iselevating as optimism is pervasive. Supplydemand currently favors the candidate withspecifically Chief Information SecurityOfficers (CISOs) are the top function with themost growing demand, and from an industryperspective, Technology and Healthcare/LifeSciences represent the two sectorsexperiencing the most growth in 2017.
Another trend we are witnessing, given theincreased demand for top leadership talent,is that strong employer branding is becomingmore important for attracting high-levelexecutive talent. Executive candidates will bereluctant to join a company with an employerbrand that differs from their leadership style,but even more reluctant to join a companythat is a complete unknown. Givengenerational demographic changes ongoingwith Baby Boomers retiring and Millennialsmoving into more leadership roles, successfulcompanies must possess a purpose thatunites and excites as a rallying cry thatresonates for people and their employerbrand.
Mickey MatthewsInternational Chairman/Managing Partner
Stanton Chase Baltimore
We were several years ahead of this inlaunching our Diversity & Inclusion Practice,hiring Diverse Consultants and driving thisdiscussion before it was “in vogue”, to wherenow we see that it ranks among clients’ topbusiness concerns. Stanton Chase has beenand will always be committed to diversityand inclusion and the value that diverseleadership teams provide.
Our core business is Executive Search,how do you see related services weoffer – Board Assessment, ExecutiveAssessment, and Executive Coaching?
Indeed our core business is ExecutiveSearch, and unlike many of our competitorswho have multiple stakeholders, earningschallenges and The Street to keep happyleading to diversification of their serviceofferings (read: dilution leading also to poorservice quality), the feedback from clients inour Strategy Planning survey was to stick toour core.
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We are also witnessing a new trend in“boomerang” executives returning tocompanies where they previously wereemployed and departed. Some companiesprefer “the devil they know”, especially if thatindividual has a deep understanding of thecorporate culture, industry andorganizational hurdles.
How do you see Stanton Chase today?
Founded in 1990 on the principles ofFriendship + Trust = Business Development,we have grown from 4 offices in 3 countriesto 72 offices in 45 countries, while stayingtrue to our original values. Deeprelationships internally among ourConsultants and externally with selectedclients have stimulated our growth as a firmand as a family worldwide. We benchmarkagainst other top global consulting firms(McKinsey, BCG, Deloitte and others) as ourconsultative, listening, entrepreneurial andcontinuous improvement best practices stylewe find mirrors theirs most closely.
2 years ago, we completed an 18 monthglobal strategic planning exercise led by anoutside consultant that included over 40 ofour Consultants in addition to surveyingclients and candidates. Feedbacks from thishave informed our corporate businessstrategy going forward on every level withclients responding that the most importantmetrics they are interested in aresophisticated and results-oriented, forexample(1) business performance of thesuccessful candidate over time, and (2)tenure of the successful candidate.
A significant competitive advantage forStanton Chase is that in the last five yearsdiversity and inclusion has become a muchmore prominent business issue for ourclients.
EMEA meeting 2017 – Belgrade Lucie Kafková, Prague and Gerhard Swierzy, Frankfurt
Several trends exist around technology,adoption and also many insights. Our clientsare focusing heavily on using big data andanalytics to create more in depth talent-metrics for potential candidates. Big data,though, has the risk of being too big, or toofragmented. To help simplify and make themost out of data, today many clients aremoving to one integrated platform for all oftheir HR needs. Operational metrics such astime-to-hire, cost-per-hire and source-of-hire remain relevant but more intelligentmeans of measuring ROI will beimplemented by companies.
In conjunction with these trends towardtechnology enabling analytics, big data,metrics and common platforms, manyorganizations are shifting their talentacquisition strategies to become morealigned with globalization as well as widerbusiness strategies. Technologies willbecome more sophisticated as the businessworld shrinks and greater accessibility tointernational candidates becomescommonplace. At Stanton Chase, we aredeploying those tools and ahead of thesetrends as we look to blend these into themore traditional methods of connection andcommunication and maintain thepersonalized, confidential approach toexecutive recruitment that is the cornerstoneof our firm and industry.
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We have subtlely deepened our offeringsrather than broadened as Assessment hasalways been part of the search process andthus we have trained, certified andprofessionalized our people and process toelevate the quality of our evaluation offering.
With our clients recognizing top talent as adifferentiator Assessment as a Service ismore vital and being able to deeply andcorrectly evaluate game changing executiveswho will master the fluidity of business, thedynamism of the markets, the values, beliefsand demands of the new generations and therapidly changing and more localizedcustomer requirements will determine ourclient’s success. Transformation will be thenorm instead of status quo thereby requiringleaders at every level of the organization, andnot just the C Suite, to be entrepreneurial,flexible, decisive and inclusive, and beingable to not just identify and motivate toptalents, but for us to precisely and accuratelyassess executives towards these attributes isvital in our scope of services and clientpartnering.
How do you see the future of ExecutiveSearch business with regard to newtechnologies and digitalization?
Technology is disrupting businesses in everysector, in every geography, and this issomething executive search firms both forthemselves and for their clients need to be“in front of”. At Stanton Chase, we deployeda global team, championed by myself, giventhe importance we see of this digitalizationdisruption several years ago and we havetransformed our tools, processes andcommunications internally and externally toenhance responsive and provide excellencein client service.
Everyone has a case study, but as an exampleof where our business is heading into thefuture, just this past week at Stanton Chasewe closed a search for a US HeadquarteredFortune 50 company, seeking an executivefor a significant JV in Japan based in Tokyoand we found the executive in Switzerlandwho is a UK citizen. This will happen moreand more and companies and leaders mustbe multi-culturally sensitive and recognizethat as Friedman said “The World is Flat” atleast economically.
Technology is rapidly transforming businessto accelerate these trends making scalabilityeasier. Whether it is in 3D or advancedmanufacturing, in Artificial Intelligence orAugmented Reality the rapid automationand digital integration of technologies willonly continue to escalate and savvycompanies and leaders will invite this ratherthan let it disrupt them. And that bestdepicts how we at Stanton Chase are “ridingthis wave” of digitalization utilizing ourcollaborative, connected and customercentric entrepreneurial model for the benefitof and to bring value to our key clients.
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You have been in Executive Search formore than 20 years, looking back inthe past, how do you expect ourbusiness will develop in the future?
I am excited about the future of our industryand the prospects for Stanton Chase. At thesame time, the technology disruption iscreating new ecosystems across sectors andborders where competitors can be anyone oranywhere with markets being redefined atgreater speed. Workforce values are changingwith the influx of Millennials and as theymove into leadership roles which isaccelerating with the aging demographics ofthe workforce lead by many Baby Boomersretiring, while at the same time, technologyis redefining processes in every businessglobally, whether large or small and whetherin manufacturing or services. These twoforces will have a significant impacteverywhere around the world while borderswill continue to drop economically again incontrast to many of the geopolitical trends.
EMEA meeting 2017 – Belgrade Stanton Chase EMEA team
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Could you tell us something aboutglobal trends in business andspecifically executive search?
Over the last decades Executive Search hasbeen established as a professional and valuedservice for both companies (i.e. employers)and candidates for managerial positions.Whilst there were a lot of miracles aroundthe business in the early days, it has becomean integral part of economic life. Individualshave become less sensitive over the years andwhile it was extremely difficult to receive aCV 30 years ago, nowadays this is everydaylife. Managers are interested in building longterm relations with their trusted ExecutiveSearch company whilst in the early dayssuspiciousness was the rule.
At the same time service has become muchmore professional and transparent, clientsknow what they are paying for and have clearexpectations.
The most dramatic changes happened overthe last decade when social networks becamepopular and platforms like LinkedIn simulatethe perfect labor market for managerialpositions.
Whilst in the past identification of candidateswas the core part of our services, this hasshifted to access to and evaluation ofcandidates.
Well positioned Executive Search companiesoffer access to the decision makers in themarket and are trained in state of the artevaluation tools. This gives clients theconfidence to chose the right candidates fortheir important positions.
What do you think will be the impactof GDPR on our business?
The GDPR will be a very important tool toprotect sensitive information and thus thepersonal integrity of individuals. Nowadayssome recruiting firms don’t takeconfidentiality or the maintenance ofpersonal rights too seriously. This will beterminated by the GDPR. At the same timecompanies will have to rethink their policieswith regards to diversity in order to comply.We see this in a very positive way.
Gert HeroldRegional VP EMEA/Managing Partner
Stanton Chase Vienna
You have been in Executive Search formore than 20 years, looking back inthe past, how do you expect ourbusiness will develop in the future?
The trend goes from identification toevaluation of candidates. The big challengefor recruitment companies will be in thesegment of specialists and lower to midmanagement, due to the availability ofcandidate information in social networks.Within this segment evaluation is lessimportant. We foresee a shift to in-houserecruiters who will replace external agenciesmainly focusing on this segment. The classicExecutive Search, focusing on higher to topmanagement is less under threat as usuallycandidates for these positions are notaccessible through social media and secondlythe evaluation of candidates is much morerelevant and important for a successfulplacement. This is where Stanton Chase isinvesting and focusing on.
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EMEA is a big region and there aredifferences between its sub-regions,how do you see them?
The beauty of EMEA is its manifold diversity.As a matter of fact this means that power ofeconomies and ways to do business differ,the same applies for languages and cultures.The challenges for companies and candidatesas well as for Executive Search companies isand will be much more in the future, toaccept the challenge and utilize this immensediversity for the benefit of the economicgrowth in the regions. A huge pool of diversetalent is available, at the same time thepopulation pyramid in Europe is opposite toME and Africa. Companies will have toaccept this challenge and act accordingly.
There are also discrepancies in feesfor same/similar positions withinEMEA. Why do you think companiesare willing to pay much higher fees insome markets?
The fees of Executive Search are traditionallylinked to the level of salary. Over the yearsthis has proven to be a valid indicator toreflect the cost of our services. This in otherwords means that in general the fees arehigher where salaries are higher. Anotherindicator is the availability or scarcity ofspecific talent. The more difficult it is to findand motivate appropriate candidates, themore expensive our services become.
EMEA meeting 2017 – Belgrade Gert Herold, Vienna
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Could you tell us something about thetrends in Life Sciences & Healthcaresector in EMEA?
What we see in general is that more andmore biotech companies are rising and thatthey need a more consultative approach atthe start than directly a need for search. It isimportant to be involved as from thebeginning of the value chain to understandthe content of the business, the philosophy orDNA it is creating and advising them on howto move from a pure start-up towards thenext phase in evolution or growth.
Of course we cannot neglect our purepharmaceutical dinosaurs trying still andeven harder than before to diversifythemselves from the generic attack, out ofpatents and the upcoming nice biotechplayers. In these companies, when it comesto recruitment, we feel that the decisionpower has been pulled away (more andmore) from the local affiliates towards theheadquarters, so it is key to be present thereand have an impact and understanding of thebusiness, the culture and the economicsurrounding.
Stanton Chase has and will always strive forbecoming a trustworthy partner and that isas well the setting our managers are lookingfor, they want to rely on our services, on ourknowledge, our quality.
In which sector within your industry isthe biggest lack of talent? Whichpositions are most challenging to fillwithin your industry on EMEA leveland why?
Well it all depends on the type of business.Positions like Medical Access are always ahurdle as the economy and the governmentalreimbursement setting is very specific. Wefeel there is a need for people with a goodunderstanding of market access yet notneglecting the Health Economical aspect ofit.
Tamara SeveriRegional Practice Leader Life Sciences &
Healthcare/PartnerStanton Chase Brussels
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We see that profiles in governmental affairsare changing as well more towards acombination positon of pure technical knowhow of the pharmaceutical field yet with avery strong political network or knowhow. Compliance may not be forgotten,compliance is more than legal it is nowadaysa combination in between legal andregulatory knowledge.
Pure sales profiles are disappearing as well,commercial people need to have a betteranalytical know-how as hospitals are moreand more into tender business and groupingactivities.
Digital profiles will be rising as well, asmobile health is sneaking in.
Why is the industrial specializationimportant and what advantages does itbring?
• You can really become a trustworthy andlong-term partner;
• You know and understand the market;• You can bring knowledge to the table and
advise your customer;• You can show expertise – (certainly needed
when talking to HQs).
EMEA meeting 2017 – Belgrade Şükran Tümay, London/Istanbul and
Tamara Severi, Brussels
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Could you tell us something aboutglobal trends in business andspecifically executive search?
Digitalisation. Consumers enjoy 21st centurybenefits and use non-traditional paymentmethods with increasing frequency,primarily contactless cards, smartphones andonline shopping. For instance, 30% of thepopulation in Great Britain finds theabolishment of money as a means ofpayment acceptable, while 29% say thatpayment with smartphones is far moreconvenient than other payment methods.
Renown brands use platforms such asSnapchat, WhatsApp and FacebookMessenger to monitor the needs of theirclients continually and subsequently offerthem an entirely different level of servicesfrom the one we are accustomed to.Personalised. Of course, technology enablesbrands to help consumers decide what tobuy, see or eat, operating on a real-timeresponse basis, i.e. triggering action within30 minutes to 48 hours.
Speaking of trends in EMEA, I mustemphasize the fact that significantimprovements are quite evident in Africa,where the GDP is on the rise and theinfrastructure is being enhanced, which has aconsiderable impact on trade developmentand on the establishment of bettercooperation, particularly with Europeancompanies.
Products and ingredients originating fromAfrica are being used with increasingfrequency there, and the trend of utilizinglocal ingredients also renders great potentialfor exports to Europe, particularly when itcomes to gluten-free products.
Great Britain will be introducing a so calledsugar tax next April. This applies to allsugar-containing products. Largecompanies, particularly soft drinkmanufacturers, are already searching forappropriate alternatives. A comprehensivecampaign on the detrimental effects ofexcessive sugar intake is in full swingthroughout Europe, while research showsthat the percentage of those abandoningproducts that are harmful to the human bodyruns high in a number of countries (63% inPoland and Spain, 60% in Italy, 55% inFrance and 54% in Germany).
On the other hand, there is much talk aboutair pollution, prompting consumers inEurope to focus more on productsmanufactured by factories committed toatmosphere protection. Brands strive to bepart of the solution, not the problem. At theParis Summit, there was talk that statesneeded to demonstrate progress in this fieldover the course of 2018.
Miloš TucakovićRegional Practice Leader Consumer
Products & Services/Managing PartnerStanton Chase Belgrade
Unfettered access to the internet has meantthat people have any number of review sitesat their fingertips, but this can be crippling.In order to free people up, we will seewebsites introduce more time-focusedframeworks or offers that can reduce theamount of research that can be done before adecision needs to be made.
In which sector within your industry isthe biggest lack of talent? Whichpositions are most challenging to fillwithin your industry on EMEA leveland why?
Lack of people dealing with digital strategy,digital communication and e-commerce isfelt in all sectors. In saying this, I meanpositions demanding highest levels ofexpertise in areas ranging from IT totraditional customer relations. Then there isa lack of good brand and marketingmanagers from mid to higher levelmanagement, executive positions inproduction and innovation, where Iprimarily mean executives responsible forthe development of new business models.
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European governments will startimplementing some of the agreed plans, suchas the “urban greenery” plantationprogramme, bans on old cars, incitement ofe-car purchasing and driving, and the use ofconstruction materials that prevent air andenvironmental pollution due to their specificcharacteristics. Global brands of luxury bodycare products have been dealing with theseissues for quite some time now, so that anexpansion of campaigns on the harmfulnessof pollution and its negative effects on bodyand hair may well be expected. Actually,such campaigns are already in progress,while ongoing research sheds light on thecurrent level of awareness. In France, 41% ofthe consumers are aware of the harmfuleffects of pollution on the body. Eat yourselfclean trends are currently popular in foodand beverage consumption, as brandsposition themselves on the market with theirsuper foods, promoting healthy, immunity-boosting diets.
In retail, discounting has become soubiquitous and constant through ‘brandmatch’ initiatives that it has lost all meaning.But there is an opportunity to inject someurgency and some playfulness intopromotional activity beyond diarised BlackFriday or Amazon Prime campaigns.Retailers can introduce ‘happy hours’ andcountdown discounts in response toeverything from the weather to political orcultural events to engage consumers throughsome unscheduled serendipity. This has thepotential to appeal to the 27% of UKconsumers, 21% of Spanish, 20% ofItalian,13% German and 12% of Frenchconsumers who have bought luxury brandeditems in the past 18 months and would beinterested in smartphone marketing relevantto them and their location at the time. Andthis isn’t limited to the physical world.
When this is coupled with specialisation forspecific segments, in this case consumergoods or specialisation for certain positions,you have the opportunity to be the rightcollocutor for your clients. You are fully ableto understand the clients’ needs on the oneside, and be a credible advisor on the other,someone whose opinions and suggestionshave substance and who provides addedvalue to the services they render.
Apart from specialisation in specificindustries, we at Stanton Chase also abreakdown into sub-sectors and consultantsheading expert teams in these fields. Hence,we have specialist consultants for luxuryproducts, travel and the hotel business,consumer goods stores and distribution,consumer goods production, and advertisingand media. When I say team of experts, I amnot talking solely about a team of peopleengaged in consultancy services, but ratherabout their prior experience which is highlyrespectable and stems from the economicsector and large international companieswhere they have occupied the highestmanagerial positions.
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The situation is more or less the same on theglobal level as well. Research we haveconducted on the global level this year alsoindicated this. It primarily pointed topositions in sales and marketing, generalmanagers, directors of research anddevelopment and executive positions inhuman resources.
The great attention devoted to diversityshould also be pointed out. For instance,47% of the marketing director positions arecurrently occupied by women, which hasnever been the case in the past. Only theissue of unequal pay still remains, as womenearn 17% less than their male colleagues inthe same positions.
Why is the industrial specializationimportant and what advantages does itbring?
The answer somehow comes naturally,because that is exactly what distinguishesExecutive Search companies. Consultantscome to clients with their expertise andknowledge of the market.
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How do you see the position of StantonChase marketing-wise and comparedto global trends of marketing inExecutive Search?
Today, marketing in the professional servicessector is completely different than what itwas only 5 years ago. Our clients andpotential clients use totally different channelsto get informed and educated themselves.They are much more selective regardingwhich information they consume and whothey trust. In today’s overflow of informationthrough the Internet, it is vital to create astrong, long-lasting relationship with ourclients.
Stanton Chase is fully embracing these newtrends and is at the forefront of modernmarketing activities in the professionalservices industry. As a trusted advisor tomany of the largest companies in eachmarket, we are working with the latesttechniques like ABM (Account BasedMarketing), content marketing andgamification.
What do you think about the use ofdigital media for marketing purposesin Executive Search business?
Digital media has become our main channelof communication with our potential clients.Digital media is the most convenient andfastest way for executives to get news andinformation vital for their business andpersonal career. Stanton Chase has extensivepresence on the Internet with a top-notchwebsite, and we share our updates throughLinkedIn, Twitter and Facebook on an hourlybasis.
Please name some of the mostsuccessful Stanton Chase marketingactivities within EMEA region offices.
Personal, live, face-to-face interaction is stillvery important in our marketing mix. One ofour most successful actions is the TalentManagement Award, handed out by StantonChase Belgrade on a yearly basis, recognizingmajor achievements in talent development.Our office in Prague holds very popularBusiness Breakfasts on a regular basis, withtop executives as guest speakers from allindustries. And each year for Christmas ourHelsinki office meets with various CEOs,handing out a business book as present andsharing ideas and trends.
Franz RoisMarketing Director
Stanton Chase International
Your Leadership Partner
www.stantonchase.com
Stanton Chase International, Belgrade officeBlvd. Oslobodjenja 75, 11000 Belgrade, Serbia
Phone: +381 11 3973 [email protected]
