Executive Search#: Growing, declining or staying the same?

What does a industry do when it doesn't know the answer to its own questions? It puts out reports like the ones that surfaced earlier this week from HSZ Media http://www.hszmedia.com/dailynews/recruiting/story.asp?param=5E5A58565A, and related report from the Association of Executive Search Consultants (AESC.) According to HSZ run by Christopher Hunt and Scott Scanlon, executive search is growing in North America but declining globally. The AESC report says declines in North America aren't as great. Confusing to say the least and indicative of continuing flux.

Neither HSZ nor AESC enjoys a lot of trust and confidence both for different reasons not worth unpacking right now. Top recruiters -- not to be confused with those professionally managing large firms -- don't put a lot of stock in these sources. As recently as last year, long-time AESC head Peter Felix was predicting an upturn in search once the economy settled down, which may prove to be true in the next millennium despite evidence that large companies have moved a lot of the traditional function in-house. Here's a previous take on that issue: http://povblogger.blogspot.com/2013/02/executive-search-disrupted-vs-disrupters.html

Image courtesy of freedigitalphotos.net

Back to the "six inches in front of your nose" to borrow a line from Al Pacino in "Any Given Sunday." Look for more disruption in the short run. Independent firms are enjoying niche life while the top of the house at the large firms are largely hitting their numbers. The only exception where it doesn't add up seems to be Heidrick & Struggles, which hasn't seen any significant top-line performance since the days leading up to the Great Recession. Nearly every other major firm, excluding Russell Reynolds, which re-defines outlier, has solidified their position in the marketplace.

Perhaps most importantly, large companies are starting to accept the slow dial back to talent as hiring improves. Granted it's happening at a snail's pace. Many are still holding on, fighting the pendulum tooth and nail mainly by not paying more for lateral hires. The smart ones are getting ahead of this trend and will ultimately dictate where the current headwinds ultimately turn. Or at least that's what the theory of client-driven business holds. Changing cycles usually portend changes in management. Then again, based on stagnant executive turnover numbers over the past few years, even that normal search truth has failed to hold up. Could the next stretch re-establish that age old theory?

# # #

#Final Four/Pitino: "Life is cyclical"

It's hard not to pay attention when Rick "Fellowship of the Miserable" Pitino speaks up on national TV. Here's a guy who has had it all and also has had it all come crushing down. Pitino is not a statesman on par with say Coach K at Duke or the late John Wooden at UCLA, and he doesn't have as many victories with a single school as Syracuse's Jim Boeheim who tried out as a junior and never left the program. Pitino's brash edge, however, can always captivate an audience and did so Saturday night after his current squad, the Louisville Cardinals beat Wichita State to advance to tonight's final here in Atlanta.

CBS announcer Jim Nantz introduced Pitino by listing several recent accolades, including coming in as the tournament favorite and #1 seed, anticipated induction into the Hall of Fame and last Saturday's win at a qualifying race for the Kentucky Derby by Goldencents, a horse that Pitino co-owns. When asked if he thought he was living right, Pitino smiled and said, "Well, life is cyclical." He then went on to talk about his team and anticipating playing for a second national championship as a head coach. If Pitino and Louisville are victorious tonight, it will mark the first time a major college coach has won titles with different programs.

For those without background on Pitino, he won his first championship while at the University of Kentucky and then left to coach the Boston Celtics in the NBA where he preceded to fail if you can call it that in context. Pitino is definitely in the "show me" category and pursues his craft with passion, flamboyance and brashness that have at times made him a target. One of Pitino's coaching progenies, Billy Donovan who played for Pitino at Providence College, went on to lead the University of Florida to two national titles. Other than Coach K at Duke, who trained under Bobby Knight, no other mentor/mentee relationship can claim similar success.

All the previously mentioned have great edge, which for you Welchian leadership students, will be recalled as a key CEO leadership quality back in the late 90s, early 2000s. Most of the great coaches tend to have edge, or that ability to rally the troops or go for the jugular when the situation warrants. Only time will tell if that quality remains a business leadership quintessential.

Life, business and everything in between are indeed cyclical. Leaders take responsibility; losers make excuses. It takes a redemptive man to speak truth on national TV -- or so it would appear.

 

# # #