If you decide to recruit Board members on your own instead of turning to a professional executive firm, it will result in lost opportunities and lower turnover.
Furthermore, it is not enough simply to elect Board members and a Chair, based solely on their professional competences. It is often overlooked, but far more important, can be the personal competencies that the headhunter puts into sharp focus.
An analysis from the Centre for Corporate Governance at Copenhagen Business School indicates that companies can increase revenue by between 25-40% by having a diverse and professional Board. However, about half of the Boards in Denmark are occupied by family members - and that is an issue. The human nature of the owners is governed by the power of habit and the aspect that it is difficult to replace oneself or a family member. That is why we see Boards that are characterized by:
In recent years, we, Friisberg & Partners International Denmark, have experienced a greater interest from companies, who acknowledged that a professional Board can be a competent and strategic tool to increase the growth and development of a firm. The increased interest is supported, among others, by external advisors such as EY, who through their workshops and dialogues assure the owners about the advantages of having non-familial members on the Board.
When an owner has decided to strengthen the Board or when a current Board member quits, we are contacted to ensure the circle of potential candidates becomes wider and more diverse. The owner has often given some consideration to which professional competencies the company should have replaced in the Board of Directors. Typically, these competencies reflect the stand of the current situation of the company and partly the qualities and competencies the outgoing Board member possessed, and which are now to be replaced.
Having the Board’s professional competencies described is one of the prerequisites for any successful Board recruitment. The Board’s competence descriptions contribute positively to an overview of which competencies the Board possesses and which are desired in the future. However, this alone is not enough to achieve the successful recruitment of a new Chair or a new Board member. There are many different perceptions of what it takes for a Board to create value and therefore it is important to clarify what kind of value creation is needed – and in addition to this, to understand the human side of Board work.
We are of the opinion that effective Board work takes place in the interaction between different people. It is simply not just the interaction in the Boardroom that is significant. The dialogue with management, employees, local business partners, authorities, costumers, and suppliers etc. further contributes to the positive dialogue and the value creation. So, one is the professional skills such as financial literacy – another is the personal competencies which are most often overruled in the recruitment for a new Board member.
We work with six key competencies that the Board Chair or member must have to create value. Often, a Chair of the Board is elected from the existing Board, therefore the Chair's competencies are advantageous for all members of the Board.
The prerequisite for a good working relationship requires that one can speak the language and appreciate the concerns of management that every CEO faces. Moreover, having a sharp business judgement, deep understanding of the company’s strategy, how it operates and the human issues.
Many members are very adamant in their opinions, and it requires a special competence to be able to listen, understand and read between the lines when other members argue their positions. In addition, to be able to listen to, understand and support a CEO when the person expresses a reservation towards the Board’s decisions.
We have seen Boards where there are many strong personalities = alpha males/females (it can be both men and women), who are used to being top manager and thereby take their “director” behaviour into the boardroom. It inhibits the good, constructive, and idea-generating dialogue. Therefore, it is an important competence to hold back and to support that everyone around the table has their say.
It is incredibly important to have the ability to establish relationships and to be able to work with the DNA that the specific Board and management have. It should be easy and safe for the CEO to approach the Chair of the Board and have a confidential conversation.
The candidates of the Board of Directors must be in a place in life where they are in balance. That is where they have or have been successful in their careers and where they have no need to become No.1 or feel that they have yet to achieve a top position - that is, not dreaming of taking over the CEO’s office or longing for operational control. It is a high sense of self-worth, a “commitment” for the good of the company, without a trace of a personal agenda, which is something we especially ask about during the recruitment.
It is necessary to uncover how much time the Board member is ready to spend on Board work. It is far from certain that it is “merely” four meetings a year. There can easily be situations where the meeting frequency will be much greater, and you must be ready to spend the necessary time between meetings. Emergency situations can always arise where a Chair of the Board or the entire Board of Directors must step in at short notice. It can be crisis situations, and in such times, it is the personal perseverance and drive to overcome a crisis that is essential. All things considered, it is especially the ability to confront these stressful situations and to avoid the organization becoming paralyzed, if they occur, that is central.
Susanne Becker Mikkelsen,
Partner Denmark
The talent pool in some markets is highly competitive, with candidates receiving multiple offers simultaneously. This is, in part, related to the “Great Resignation”, where approximately 4 million Americans quit their jobs in July 2021 while there were still more than 10 million job openings.
A survey run from Linkedin in 2021 on more than 2,000 adults in the U.S. found that 47% said the coronavirus pandemic changed how they feel about their careers.
While the Great Resignation was mostly driven by mid-career employees, Executives have also been seeking new opportunities at faster than usual rates.
Europe appears to be experiencing a different type of crunch, driven by long-term demographic trends. Each year, the number of executives in the Baby Boomer generation are retiring at greater rates, while the next generation is considerably smaller. In fact, the pandemic has likely sped up this trend, with many Baby Boomers either being forced out of the workforce or leaving voluntarily in order to maximize their quality of life.
There is a shift in generations in the labour force, including the leadership roles.
Voluntary resignation trend in Italy 2017-2021 (Labour Statistics Office)
With new challenges and rapidly changing market conditions, organizations need to redefine leadership roles in their organization. That can range from areas of responsibilities and structure, but it is as much about the soft skills a leader brings to the table as it is about their industry knowledge and expertise.
Former Best Buy CEO, Hubert Joly , interviewed by an MIT Research in January 2021, observes, “All of us have to rewire ourselves for a new way of leading. What’s the purpose of work? I’ve been CEO for 15 years, and the initial part of my time as CEO was much easier because it was purely about the business. But now it’s broader”
The same research reports that the 72% of respondents of more than 4,000 managers and executives interviewed , strongly agreed that it is very important to them to work for an organization with a purpose they believe in, but only 49% strongly agreed that they believed in their organization’s purpose.
They require a new executive’s mind set and leadership style:
| Profit | Purpose & Values |
| Hierarchical Pyramids | Network of Teams |
| Business knowledge | Digital & Business Disruption |
| Directive Leadership | Supportive Leadership |
| Rules & Control | Trust and Self Control |
| Business Hours at office | No boundaries home/work |
Donatella Paschina
Associate Partner, Milan
Once upon a time there was great pride in telling the truth, but a reality of our current political climate is the prevalence of lies and misleading statements from some of our world leaders. We have descended in many of our communications to a level where the truth might, or might not, be included in what is being said about any given topic.
When Sun Tzu wrote The Art of War two thousand years ago, he was overtly opposed to telling the truth. He basically said telling the truth was a bad and dangerous thing to do relative to your enemies. He advocated deceit and skilful deception, and his strategies very intentionally used multiple layers of misinformation with the goal of defeating the enemy.
Creating a culture of deception can be extremely dangerous. I guess some leaders might think that they have the right (even a duty?) to distort the truth if it benefits the organisation because experience teaches us that the truth brings risks, but leaders who habitually lie run the risk of normalizing that behaviour and creating a toxic culture. Credibility is all and lying destroys a team’s trust for their leader - people simply don’t like being lied to.
Lies can be innocuous or they can be critically important. It can be difficult to get a straight answer to the most basic questions - for example, ‘How are you?’ Virtually no one expects to hear anything but, ‘Fine, thanks. And you?’ Withholding information has become normal. As children we are told many tales about the merits of telling the truth, but science says we learn to deceive as toddlers. Adages such as ‘Honesty is the best policy’ continue to influence our adult lives, but we often tell little white lies to make others feel better.
If you lie about the small things, people distrust you with the big things. Even worse, if you lie consistently, people may begin to instinctively distrust everything you say, just as the boy who cried wolf.
Communication, and with it the threads that connect us to each other, simply breaks down.
I maintain that truth is the most powerful trait shared by great leaders.
A leader’s words carry great power. Words can determine whether a business thrives or fails. Truthful words, a close grasp on reality and the willingness to follow through on actions are necessary tools for running and leading a business. All leaders should work towards developing a culture that supports truth-telling.
Great leaders build strong relationships founded on honesty, which in turn builds inspiring organisations.
We may never be perfect, but some of us can be a lot better than we are now.
In times of change much is on the shoulders of leaders. They have to decide with speed and accuracy, adapt boldly, deliver reliably and commit to impact while retaining their energy and health.
Rapid external change should be followed by wise and rapid changes inside the corporation.
Leaders are usually fast in processing available information, determining what is necessary and making decisions thereafter. It is easier if 3-5 priorities are defined which become the basis for decisions, be they financial liquidity, customer care, or keeping all engineers on payroll. Smart compromises are also easier to make if priorities are set.
Sometimes it is smart to ask for expertise and seek new inputs. It is also good to decide what not to do and share it with team. New rules of the game should include new modes of action as the old ways sometimes halt progress. Times of big change usually mean stopping and overlooking the big financially bonding plans.
Leaders also tend to keep an eye on all the important functions that may change in quickly- supply chain, transportation and others that may need backup in the near future.
Effective leaders are acutely aware of their team's distractions and their collective and individual frames of mind so they seek ways of engaging and motivating them when communicating new information and goals.
While many factors may not be under their control, they seek to align the team's objectives, develop new performance monitoring indicators and create a culture of accountability.
During a crisis, people will be be overloaded with emotions, and incomplete information will distract resulting in paralysis. It might be good to focus on a few things that matter most and make an scalable framework for quick decision-making.
It is necessary for an effective leader to keep themselves fit both physically and emotionally. Establishing a healthy routine such as mindfulness exercises, short gym sessions, plenty of time outdoors and time with family in the evening are all essential.
Pille Päss
Partner, Estonia
Business organizations are now coming to terms on how the COVID-19 pandemic has become the greatest catalyst of workplace transformations of our lifetime.
In retrospect, what many business organizations did not envision was the extent to which employees would be working remotely from homes, and scrambling across back-to-back virtual meetings, while juggling the competing demands of home schooling. This evolution of work-life and the workforce has consequently impacted how HR professionals manage recruitment and talent acquisition. One of the more pronounced effects has been the increasing reliance on digital recruitment/search platforms (such as LinkedIn, JazzHR, Workable, Zoho Recruit, etc.) to source for viable candidates as fear of physical interactions through face-to face engagement peaks.
Is this true or just a perceived mental model in the post-COVID world? To answer this question, one needs to start with the endgame in mind. It is undeniable that the advent of technology will transform the way recruiters conduct searches on the way forward.
Artificial intelligence has been proven to be a capability multiplier in many aspects of work transformation. As a case in point, technology has made job search a little easier to publish and search for employee resumes, facilitating virtual interviews online, breaking down geographical separation, and allowing HR professionals to cast their net wider. However, before one is led to believe that technology can replace the “man-in-the-loop” in talent acquisition, it is important to appreciate the limits of the current state of technology and the nuances of executive retained search.
The search for C-suite level and senior executives is fundamentally a people-centric process; something that search platforms alone cannot adequately fill. Correct job fit is not based merely on CVs and past work experience alone. There are tacit work characteristics such as personality match, cultural fit, team dynamics and personal aspiration alignment. To find that best candidate, current technology (even with AI and data science) cannot adequately address those information gaps.
In essence, retained Executive Search services involve a meticulous process of human interaction that taps on the deep expertise of professional interviewers, whose skills and “gut-feel” have been honed over the years.
Securing candidates for top or strategic management roles (CEO, CFO, COO, CMO, GM, board member, etc.) requires the “feel” for the candidate in that specific organization, industry, and market. It is very different from conventional recruitment and requires a human mind that appreciates beyond titles and responsibilities – someone who knows the market and the context in which the respective candidates worked, who can read between the lines, who understands the challenges, opportunities, and trends in the industry.
We pride ourselves in being a market leader in the above methodology of retained search for the following reasons:
We are one of the leading global consulting practices specializing in financial services and digital-age technological hires with 30+ years of experience in solutions for Fortune 500 companies worldwide aimed at retaining, developing, and advancing next generation technological breakthroughs.
We have an impeccable and consistent track record of delivering top talents that have been a perfect fit for advanced technology firms, global IT companies and start-ups. This is possible because of our proven methodology of precise job profiling and multi-level deep investigative search.
We have breadth and depth. We have a team of experts and global networks with extensive market domain knowledge to help our clients secure top revenue generators, product developers, market leaders and investors; talents that are key to securing your next cycle of growth. With experts in every area of people and organizational development worldwide, we can help you envision, design, and build a truly inclusive organization.
Janet Tweed and Richard Khee Loon Foo
The energy transition was born in Germany in the 1980s and is now well known with the word “Energiewende”.
It has now become a global megatrend with the growing necessity to transform energy generation and reduce carbon emissions. In 2015, France implemented the "Energy Transition Law" aimed at developing a new energy model, "Green Growth", and so contributing more effectively to the fight against climate change.
The targets appear clear accelerated by the current situation in Ukraine: Reduce fossil fuels and transform the entire energy systems to a carbon neutral generation with renewable energies and hydrogen.
To achieve the European Climate Deal targets by 2050, France's objectives are to increase the use of renewable energies from 12% to 32% of final consumption, to reduce final energy consumption by 50% and to diversify electricity production, in particular by reducing the share of nuclear power (40% to date). The main efforts will have to focus on housing and transport, which together consume 80% of national energy.
As this example from France shows, this global and progressive transformation will of course affect us all, including with the emergence and development of new professions. Generally speaking, for the past 10 years, global renewable energy employment has been booming:
In the solar sector, employment in France will rise from 18.000 in 2020 to 25.000 in 2028. One reason companies are recruiting so much is because they have to cope with the exponential growth in demand for equipment.
The 250 main players have hiring plans for 2022 and this seems to be only the starting point. That is 40 to 100 jobs to be created per company. In demand are engineers, financial engineers, project managers, IT experts with relevant skills and executives, who are able to lead an energy transition on a large scale.
In France, ENEDIS, the EDF subsidiary, is seeking to recruit 2,000 people, has set up recruitment hubs in many French cities in order to attract talent directly on the ground. But also the large Oil companies such as BP, Shell, Exxon and Total, and in Germany RWE and E.ON are desperately seeking a talented executive workforce to orchestrate this energy transition.
From the point of view of the economy this is critical as there is clearly competition for the best talents and companies tend to search for employees with a ready to start skillset. As a consequence companies are trying to hunt for talent from their competitors. An increase of salary level is to be expected as companies tend to pay retention bonuses to avoid “bloodletting” of their competencies. Experience from our own international executive research shows that currently the willingness to change jobs has focused on expert levels but also executive levels have significantly decreased.
Not only from the perspective of the EU economy, but it makes sense elsewhere to attract excellent talent from other industries which are also in transformation but with less future certainty, such as automotive industry.
Bearing this in mind it makes sense for the energy, engineering and manufacturing sectors to put effort into reducing their carbon footprint and to elicit support from a trusted international Executive Search partner - one who has an in depth knowledge of the market and relevant industry networks.
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The Metaverse is a virtual world, one to which we will connect using a range of devices to make us think that we are really inside it - interacting with all its elements. It will be like actually teleporting to a whole new world through virtual reality glasses and other accessories.
We have experienced them for decades in the videogames' industry, where by creating a character you can live adventures through your computer. However, the metaverse is not looking to be just a fantasy world, but perhaps now a kind of an alternative reality in which we can do the same things we do everyday, but without leaving our room.
Facebook and other companies are betting on the creation of a parallel, but completely virtual, universe, accessed via virtual and augmented reality devices, so we can interact with each other 'realistically'.
The key to this metaverse is that we can be fully immersive in it - or at least much more than the current and rather basic virtual reality that exists today. We might initially need to use glasses similar to those currently available, but additionally we will use sensors to capture our physical movements enabling our 'avatar' to have a fully immersive experience.
Devices to enable interpretation of facial expressions will mean that our avatar in the metaverse can recreate us, and other people with whom we are interacting can understand how we feel. Body language will be imperative for these virtual interactions to feel 'real'.
We will continue to analyse how can we can utilise new technologies in our everyday professional lives - might we soon be able to evaluate candidate competencies through their behaviour in the metaverse?
Javier Uruburu
Partner, Spain
It represents a practical assignment where differences in experience and personality emerge clearly. The case also provides an objectivised basis for comparing and ranking candidate presentations.
We see, even with experienced executives, that proposed solutions vary sharply in terms of the ability to shed light on the specific case, to prioritise core issues, and to apply their own experience and expertise.
In their initial meeting with the client, the candidates learn about the business, its strategies and the people involved.
The client learns about each candidate’s experience, motivation and ambitions. In this round, three-four candidates normally stand out with a relevant background, good motivation for changing jobs, personal ambitions and potential cultural fit.
In the next round, we want to develop the dialogue further. We will become better informed about how candidates approach relevant company issues. Together with the client, we therefore develop a case which gives all the candidates the same starting point for the next meeting.
The case will reflect commercial issues at the client and is formulated in a sufficiently open way that the candidates can be invited to make their own assumptions, delineate and prioritise
Candidates receive the case two days before the meeting in order to see how they apply their knowledge and experience rather than how much time they are able to devote to preparations
Candidates are free to choose the form of their presentation
The candidate will use 20 minutes to present their solution, followed by 40 minutes of questions, elaboration and discussion.
Benedikte Stiff / Hild Kinder
Partners Oslo
In nearly every conversation we’ve had recently with executives across industries, we keep hearing that great people are harder to find and it’s increasingly difficult to convince them to make a move.
Many companies realise they would benefit from the knowhow, experience and connections of an Executive Search firm, but often have misconceptions about the way we work.
When talking with a prospective client, we are often asked whether we would consider a contingency search model without exclusivity. Sometimes it is because a client has not experienced retained search before and on the surface the main difference appears to be simply an issue of how the fee is paid.
But that difference drives a completely different approach to assignments and it often necessitates an explanation.
While we believe there are merits of both, a clear understanding of the differences is critical to making the right decision for a specific search.
At first consideration, the non-exclusive contingency model may seem better for the client - there is no perceived risk because there is no upfront payment and engaging more firms casts a wider net to elicit faster and better results? This thinking, while common, actually works against the clients’ interests, it will seldom ensure access to the best talent and can create damage in many ways.
It is important to realise that the contingency model makes the provider to work with a large number of positions at the same time and to focus on the roles that are most likely to be filled quickly. Though high speed can be a good thing, quality and service will be compromised and the client will get CVs of the most easy to reach candidates who are currently available, yet not always the best for the role. A contingent search means that when the recruiters get bored, frustrated or tired, they can quit, there is no commitment from any side.
While contingency firms would ideally like to create a positive candidate experience, the focus will be on the transaction - just getting a number of suitable resumes in the door first. But because the best candidates are generally passive, busy, usually just casually looking at online opportunities (if at all), they will seldom respond and apply, except those actively searching for a job and that is only about 5% of all potentials.
To get the attention of passive candidates, a search requires careful engagement strategies and personalised presentation of the company and opportunity, therefore many great candidates will be missed because the contingency search is under pressure to present candidates quickly. These are the experiences that often give the recruitment professionals a poor reputation and the unfortunate negative perception among candidates.
One big recruitment myth is that recruiters will work harder when they have to compete with other search firms. That never guarantees success, it actually creates chaos in communication among all parties, high activity at the beginning of the assignment and a rush to make a referral before anyone else.
There is lack of research, assessment, commitment and guarantees from the non-exclusive contingent search.
If exclusivity for one firm is not agreed, candidates will be approached by several recruiters for the same position. This may completely put off many passive candidates because it is perceived negatively, it diminishes the importance of the position and candidates may be concerned about confidentiality.
What works best for attracting the senior candidates is a committed partnership where there is an accountability to find the right fit – something that definitely benefits the client.
In today’s candidate-driven market, it is extremely important to tune into what candidates are looking for in their next roles. Lockdowns gave people time to reflect, they look for purpose, work-life balance and are extremely careful about confidentiality.
The candidate experience should be a priority for a retained firm.
The assurance of importance, exclusivity and confidentiality will elevate the client brand and can persuade candidates to open up and consider opportunities at times they would not be actively looking. Most experienced leaders recognise that executive search professionals can be very valuable advisors and are honest and open with them in ways they can not be directly with an employer. This is also helpful in managing future career expectations, negotiating salary and contract terms.
If you want to ensure you get the very best talent, and not just an immediately available hire for the key positions, exclusive retained search is the best choice.
Retained search is better for everyone involved: the client, the candidate, as well as the search firm.
Andrea Chládková
Partner, Prague
In the US, retailers will reap $20 billion in sales by the time the holiday is over and in the UK £1.37 billion.
Valentines Day however dates back to the Roman pagan festival of Lupercalia when people would honour the gods of agriculture and fertility. During Lupercalia women were whipped and animals were sacrificed - thankfully the event has evolved somewhat!
We spoke with our Friisberg people around the world and it seems they all have their own traditions to celebrate love.
The Feast of San Dionisio is celebrated on 9th October in Valencia. Much like Valentine’s Day (which is also celebrated in Spain as El día de San Valentín), the Feast of San Dionisio is a celebration of love and romance in the name of the patron saint of lovers and has been observed since around the 18th century. Gifting scarves full of marzipan is a sweet custom (Mocaorà) Women who receive this gift should keep all of their scarves to show how long the couple has been together.
The tradition of Gaekkebrev - the sending of a humorous love poem - is still very much alive in Denmark and Norway. They are written on hand-decorated cards or letters that resemble paper snowflakes and are sent anonymously. If the recipient of the poem can guess who sent it, then the sender must buy them with a chocolate egg for Easter. If, however, the sender remains undiscovered, then the recipient must buy a gift for them when their identity is revealed!
In Norway, rather than roses, friends and sweethearts exchange pressed white flowers - Snowdrops.
It's been said that the first Valentine's Day card originated in France when Charles, Duke of Orleans, sent love letters to his wife while imprisoned in the Tower of London in 1415.
Today, Italians celebrate Valentine's Day with gifts and romantic dinners. One of the most popular Valentine's Day gifts in Italy is Baci Perugina, which are small, chocolate-covered hazelnuts wrapped with a romantic quote printed in four languages.
Finland and Estonia opt for a friendlier celebration called Ystävän Päivä in Finnish and Sõbrapäev in Estonian instead. Here, February 14 is all about celebrating friendship, and people exchange presents and cards with the greeting ‘Happy Friends Day’.
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