A vitally important task for a business leader is hiring the right team, but finding the best people is increasingly challenging.
I have just finished watching the wonderful TV series Ted Lasso. The premise is simple: an American Football coach from Kansas is hired to coach an English professional football team in London. Initially Ted’s coaching methods are met with scepticism and resistance until the team starts to win. We all instantly recognise him as a great leader - he lights up the space he occupies and isn’t selfish or egocentric – but over time his energy, purposefulness and generosity become contagious.
I can also see how the analogy of a sports team holds with what I do every day. As most successes for your company come from team effort, creating teams that have a harmonious mix of personalities is essential. The team may contain great players, but if they don’t get along, and don’t add up to a whole greater than the sum of its parts, they may never win a game.
Our clients often prioritise qualifications and experience and while specialisms are often necessary, non-conformity and versatility should not be underestimated. Broad-based background, transferable skills, a collective mindset, and having a personality that fits in can be the small differences that get big results. Even the most talented individuals will fail if they are not supported by, and supportive of, a team with a mix of personalities.
Subconscious bias is so common - and by that I mean defaulting to hiring people who are just like you. It is human nature that when you do find any common ground, you tend to exaggerate it, which means you could easily put the wrong people in critical positions. So, sometimes we encourage our clients to take a calculated risk and consider hiring the wildcard candidate - we all know that embracing change can lead to innovative solutions and better results; somebody very unlike the rest can introduce and inspire new and different ways of thinking to a group.
Steve Jobs once said, “It doesn’t make sense to hire smart people and tell them what to do; we hire smart people so they can tell us what to do.” Ted Lasso says more or less the same thing, “I know that I don’t have all the answers, but I got a room full of people who do.”
In a world increasingly obsessed with data analysis and AI the differences, and the competitive advantages, could well be found in the anomalous and unpredictable.
Several boards carry out an annual self-evaluation, or an online quantitative evaluation, every three years based on the need to express and show good and ethical board behaviour. However, this is not the way forward if you ask Richard Leblanc, researcher at York University in the journal "The Corporate Board". He expresses that these simplified methods give an imperfect picture of the Board's work and efforts. Just as no one wants to assess a company simply on the basis of their accounts, one should not assess a Board of Directors based only on a quantified and outdated approach. If this method continues, Board evaluation can end up being a ritual tribal dance that adds no particular value to the company.
Board evaluations must not function as a tick in the compliance form. When basing your evaluation data from members' individual and biased understanding of what good board work is, you are taking the easy way out. One can quickly fall into a trap where the results become bland and the subsequent dialogue ends in a round of self-praise and self-glorification.
At Friisberg & Partners International, we specialize in Board Assessments. We go in-depth with a mix of qualitative and quantitative methods in the form of both online surveys, physical interviews and assessments. The data is used to uncover elements such as the Board's experience, their ability to collaborate & challenge each other and the management, collective knowledge and their professional competences. Bases on this data, the company's activities and the associated risks are analyzed along with the Board's work.
As an extra element in creating a truthful and in-depth evaluation, Friisberg & Partners Denmark recommends that the Management assesses the Board in addition to the Board's own self-assessment. Based on the full evaluation and the subsequent reporting, the Board has the opportunity to uncover the potential to become a better strategic player that matches and supports the Executive Board.
Overall, it is absolutely central to the utilization of the potential in an evaluation that the focus is not only on documenting the results achieved, but is seen as a resource for developing the Board; both in relation to current changes or future routines, structural conditions & long term knowledge building.
At Friisberg & Partners International, there is broad agreement that there is a correlation between external Board assessments and improved management quality. Board evaluations contribute to identifying strengths and weaknesses in the Board's functioning, which makes it possible to improve decision-making processes and strategic management. Furthermore, the evaluations contribute to an objective assessment of the Board's composition, working methods and efficiency. It promotes open dialogue and reflection on the Board's performance, which contributes to higher professional accountability.
As an additions service offering, Friisberg & Partners includes a targeted development and action plan as a part of our final report. This can lead to higher levels of engagement and performance.
A year ago, Marvin Siebert, Partner and luxury goods expert, wrote about the trends and issues that will occupy the luxury industry in the coming years. Now he discusses what has happened since then.
Unlike the retail industry in general, luxury goods suppliers still have a reason to celebrate, as the global luxury market is growing. In 2022, sales reached €345 billion, an increase of 19% over the previous year. China remains the world’s largest luxury market. In 2022, it accounted for around 20% of global luxury goods sales (around €59 billion).1
In 2022, LVMH, Hermès, and Cartier parent Richemont, in particular, gained market share. They accounted for three quarters of additional sales. The reasons for their growth were: As owners of some of the world's best-known and most coveted luxury brands, they have strong brand positions and reach a large customer base in over 100 countries. They are innovative and invest in new products, technologies, and services to meet customer needs. It is likely that they will continue to strengthen their market position in the coming years.
With its direct impact on consumer purchasing power, inflation is the biggest challenge facing luxury goods companies. Experts expect it to remain high in the coming years, leading to a slowdown in growth.1, 4, 5 Historically, the luxury goods market has grown by an average of approximately 7% per year. Experts are currently forecasting a growth of 3.3% per year.5
The super-rich are less vulnerable to inflation than the general population. Analysts estimate that inflation will slow the growth of the global luxury goods market by 1% to 2% in 2023. Luxury brands for the upper middle class are expected to be hit harder (2% to 3%) than those for the super-rich (1% to 2%).3, 1 Therefore, the ability to pass on price increases remains a critical success factor.
Around 1.8 billion people worldwide belong to the upper middle class (approximately 25% of the world’s population). The number of super-rich people is about 65 million. In 2022, these two groups accounted for 35% of the global luxury market.1, 3
The upper middle class has considerable growth potential as it is larger than the super-rich group and will continue to grow significantly in the future, especially in emerging markets. They also tend to be younger and more dynamic than the super-rich, making them more likely to follow new trends and try new luxury brands. However, they are more vulnerable to inflation, so growth will largely depend on whether inflation continues to rise. In addition, competition in this market is likely to increase as more brands try to meet the needs of this large target group.
E-commerce is also playing an increasingly important role in the luxury market. The share of the online luxury market was 21% in 2022.1 Many luxury brands sold their products directly to customers through their own websites or apps. As a result, monobrand online stores, in particular, continued to gain share. However, luxury online retailers, such as Mytheresa and Farfetch, are finding it increasingly difficult to compete in the D2C sector. Despite a successful fiscal year in 2022, with revenue of around €690 million and EBITDA of around €66 million, Mytheresa had to significantly revise its 2023 forecast revenue (€755 million - €800 million) and EBITDA (€68 million - €76 million) in July (revenue: €750 million - €765 million, EBITDA: €34 million - €43 million). UK online retailer Farfetch also notably lowered its own forecast for 2023 after a disappointing Q2 in August.6 In addition to increasing competition in D2C, online platforms are also affected by inflation, geopolitical tensions, and supply chain disruptions.
Their go-to-market strategies, with a greater focus on online retailing and direct sales, are also changing the marketing of luxury brands. Personalization is becoming increasingly important to build customer loyalty. In addition, social media, influencer marketing, and digital advertising are key components of marketing strategies, especially when targeting Generation Z consumers. This includes, for example, the menswear show by Pharrell Williams and Louis Vuitton. This major event brought the luxury group an audience of billions (1.1 billion views).
As a result, the marketing budgets of the major players have changed significantly, both in terms of distribution and size. According to a study by the Boston Consulting Group, luxury brands’ marketing expenditures amounted to around $100 billion in 2022. Digital channels accounted for 40% of this.5, 1 Kering invested 77% of its marketing budget in online channels (€2.7 billion), while LVMH invested 70% (€6.7 billion). In addition, both increased their total marketing budgets significantly, with Kering increasing its budget by as much as 50% over the previous year. Hermès is an exception. The French family business has kept its marketing budget fairly stable in recent years. In 2022, it amounted to €1.6 billion, an increase of 5% over the previous year. Unlike the aforementioned competitors, Hermès spends the largest share (2022: €1.2 billion) on traditional channels such as print advertising and TV.
In addition to the shift to digital channels, major luxury brands’ marketing expenditure has also changed in terms of content. Luxury brands are increasingly focusing on content that revolves around their customers’ values and lifestyles. Another trend is increasing diversification. Luxury brands are offering new products, such as beauty and lifestyle products, in addition to their usual assortment (e.g., leather goods, jewelry, and fashion). This diversification helps them reach new target groups and accelerate market growth. They are also increasingly offering personalized products and services to their customers.
Luxury brands are increasingly using AI technologies to improve efficiency, enhance the customer experience, and develop new products and services. The applications go far beyond chatbots, personalized recommendations, and offers. Customers can now experience new worlds (e.g., Metaverse), VR factory tours (e.g., Luis Vuitton), styling apps (e.g., Hermès), and personal stylist robots (e.g., Gucci).
Luxury brands are facing increasing challenges. The market is changing, consumer habits are changing, and competition is increasing. It is essential to find new ways of maintaining customer loyalty in order to succeed. Two key words are particularly important: experience and hospitality. Luxury brands need to offer their customers a unique and memorable experience. This can be achieved through a combination of craftsmanship, world-class customer service, and a memorable engaging environment.
The most critical success factor for luxury brands is attracting and retaining talent. Only those who develop the right recruitment strategies and focus on employee retention will be able to successfully manage the transformation process. Despite the challenges, the growth prospects for the global luxury market are positive. we look forward to helping you find and select the right leaders.
1 Bain & Company-Altagamma „Luxury Goods Worldwide Market Study 2022” (June 2023)
2 McKinsey & Company Global Institute (2022)
3 McKinsey & Company „The Future of Luxury: 2025 and Beyond“ (May 2023)
4 McKinsey & Company „Luxury Goods in the Age of Inflation” (July 2023)
5 Boston Consulting Group „The State of the Global Luxury Market 2023” (July 2023)
6 Press Releases of Mytheresa Group and Farfetch Limited (2023)
In the world of business, where connections shape results and success is crucial, authenticity is a cornerstone trait. It’s a key to building meaningful relationships, establishing trust, and developing as a leader. For executives, authenticity is essential in every interaction, and of course a powerful and genuine speaking voice is a key element to this. We often forget to develop this skill, but it makes a difference to every interaction, whether it’s a phone call, a chat, or a presentation. But how can you put genuine emotions, purpose, and sincerity into your voice?
In the realm of effective business communication, a commanding speaking voice is more than just the manipulation of tone and volume; there is an array of essential factors that contribute to a successful speech, regardless of whether a microphone is in use.
Spontaneity injects vitality into your speech. Embracing your genuine self and speaking confidently from that foundation fosters authenticity, engaging your audience and forging more profound connections.
The skill of modulating tones introduces layers of emotional depth and sophistication to your messaging. These nuanced variations reflect the intricate nature of your thoughts and emotions, enhancing your narrative’s impact when combined with authenticity.
Employing well-calibrated pacing and strategically timed pauses establishes a rhythmic pattern that demands attention. This rhythm captures your audience’s focus and lends gravitas to your message. The integration of genuine emotions and authenticity ensures this rhythm resonates effectively.
Controlled breathing is a testament to vocal mastery. An authentic voice, shaped by the cadence of your natural breath, conveys your intentions precisely, weaving a seamless connection between your thoughts and spoken expression.
For an executive, speaking needs to transcend the monologue. Authenticity is not just about sharing your thoughts but also about listening to and understanding your audience, even as they are silent. Intuitively reacting to their responses guides your communication, allowing for change, emphasis, or further exploration. True authenticity strikes a balance between speaking and listening, making your voice a soundboard for understanding.
In the pursuit of impactful business communication, it’s essential to recognise that the microphone is merely a tool – the true resonance resides within the fundamental quality of your voice. By blending spontaneity, nuanced tones, strategic pacing, and controlled breathing, you create a powerful communication that transcends the need for a microphone. This approach empowers you to forge meaningful connections and make a lasting impression in various business settings, transforming routine speaking moments into remarkable opportunities.
Having an authentic speaking voice isn’t just something you’re born with; it’s a skill you develop through practice and guidance. Just like leadership skills, the art of sincere communication develops over time.
Practising in different situations, refining your tone, and embracing vulnerability are important for authenticity. Having a coach’s guidance can be invaluable. A skilled coach can notice the subtleties of what to improve, give objective feedback, and assist you in bringing your authentic self into your speaking style.
In a world full of digital connections, business jargon, and information overload, authenticity is a rare and prized quality. If you can find a way of making your words and your delivery reflect your true self, then your meaning will resonate. Embrace your voice, nurture it, and let it shape your journey as a genuine and forward-thinking leader.
In today's fast-paced and competitive world, the significance of mental health in the workplace cannot be overstated. We all know that the well-being of employees not only affects their individual lives but also has a profound impact on organizational success. Addressing mental health concerns within the workplace is not just a moral imperative but also a strategic necessity. Based on my talks with various firms, let me explore the challenges associated with mental health in the workplace and discuss effective strategies for promoting a mentally healthy work environment.
As I see, one of the major challenges concerning mental health in the workplace is the stigma that still surrounds mental health issues. This stigma often prevents individuals from seeking help, as they fear negative repercussions on their careers or reputations. Consequently, mental health problems might go unnoticed and untreated, leading to more severe issues down the line.
Moreover, the nature of modern work, characterized by high demands, tight deadlines, home office environment and long working hours, can contribute to stress and burnout. These conditions, if left unaddressed, can lead to decreased job satisfaction, increased absenteeism, and reduced overall productivity. Additionally, the blurring of boundaries between work and personal life due to technological advancements can make it challenging for employees to disconnect, exacerbating stress levels.
Managing and improving mental health in the workplace requires a comprehensive and honest approach that involves both employers and employees. Obviously there are many effective strategies to consider, including:
Employers can take the lead in creating a culture of open conversation around mental health. This involves destigmatizing mental health issues by providing information, resources, and training to employees and managers. Encouraging honest discussions about mental health can help create an atmosphere where seeking help is seen as a sign of strength rather than weakness.
Employers should strive to design jobs that consider the mental well-being of employees. This includes manageable workloads, reasonable deadlines, control of work and the autonomy to make decisions. Furthermore, offering flexible work arrangements, such as remote work or flexible hours, can help employees manage their work-life balance more effectively.
Many organisations established already Employee Assistance Programs (EAPs) or provided access to mental health professionals can offer employees a confidential outlet for discussing their concerns and receiving guidance. These programs can play a crucial role in early intervention and prevention.
We must encourage employees to take breaks, use vacation time, and disconnect from work outside of working hours to help prevent burnout. This can be reinforced through company policies that prioritize employee well-being.
Providing training to managers and employees on recognizing the signs of mental health issues and how to provide appropriate support can contribute to a more compassionate and understanding work environment.
Managers can conduct regular one-on-one check-ins with their team members to discuss their workload, challenges, and well-being. This not only helps address potential issues but also shows that the organization values its employees' mental health.
If you are not confident dealing with this topic as a business leader, CXO or a senior HR person, you may ask for help or advise from a professional. The gains are incredible. This can make your company a healthier, happier, and more productive firm.
The full-scale war in Ukraine became a real test of viability not only for all of us, but also for the Executive Search market.
The war meant that many companies significantly reduced hiring volumes in Ukraine, or closed, or left the Ukrainian market; most had to stop, postpone or curtail non-critical projects.
However, Ukrainian business is finding strength for recovery and a steady movement forward - business is gradually adapting. Many organizations have become more mobile or even global overnight because the war forced them to either transfer production to the western regions of Ukraine, or to enter new markets outside the state, and in a very short time.
Even in the most difficult conditions, Ukrainians continue to look ahead with optimism and are already planning the future for economic development.
It is admirable that, despite the war and all the challenges associated with it, organizations are rebuilding production facilities and opening vacancies for talented specialists, and every week the number of offers on job portals is increasing.
The war is a huge shock for any country, but despite everything, people in Ukraine continue to go to work, look for work, and reorganize their businesses.
Ukrainians are proving that optimism is a truly invaluable phenomenon.
We all crave good experiences.
We all hate bad experiences.
This increasing trend towards experience is so strong that in 2023 we are seeing Chief Experience Officers (CXO) being appointed to ensure that it is made a foundational element of business strategy.
A recent PwC report noted that it is what every company strives for. Yet so many fall short of expectations – perfectly reasonable expectations.
“Call it an experience disconnect: companies tout the latest technology or snappy design, but haven’t focused on, or invested in, the most meaningful aspects of customer experience”.
Communication. Consistency. Convenience. Speed. Friendliness - and of course the human touch.
As well as Customer Experience, businesses increasingly need to think about Employee Experience as competition for the most talented and skilled workers grows more intense.
Over the past year, we have seen huge movements of talented people, referred to as the Great Resignation and Quiet Quitting, as workers reassessed the impact of work and what they want to get out of their lives.
We often see companies try to retain their key employees by offering financial incentives. However, in our experience, many of those employees would have stayed put anyway and others have concerns that money alone can’t address.
Praise from leadership, frequent promotion, the flexibility of hybrid work, a positive company culture and opportunities to lead projects are often more effective in terms of retention than simply cash. Effective leadership-development programs designed to retain key employees identified as being at risk of departure are also hugely effective.
Customer and Employee experience is a critical component of loyalty and, as a result, revenue.
The Top HR Business Executives in Hungary magazine is a special annual publication of the Budapest Business Journal. It focuses on outstanding achievements and how the Hungarian HR market is developing. It looks at leading HR organizations, the challenges of a tight labour market and the trends shaping the market in Hungary today. The selection is unashamedly subjective, having been made by the editorial team of the Book of Lists and the BBJ, and draws on a 30-year-history of providing unparalleled business news and analysis. The readership of Top HR Business Executives mirrors much of that of the BBJ, including many of the country’s leading business executives, diplomats, and decision-makers.
In the Executive Search industry, it is important to have a delicate balance between supporting and challenging one's clients.
As an Executive Search company, you are tasked with finding the best possible candidates for a given position and presenting them to the client. But how do you find the right balance between meeting the client's requirements and challenging their view of what the ideal candidate is?
One of the factors that often plays an important role is industry experience. Clients often have a strong opinion about the profile they are looking for and may be inclined to look for candidates with direct experience in their industry. As Executive Search consultants, it is our job to understand our clients' needs while broadening their horizons and introducing them to potential candidates who may not have direct industry experience.
While industry experience can be an advantage, it is important to have a broader approach to the recruitment process. By only looking for candidates with direct industry experience, you risk overlooking candidates who have transferable skills and competencies from other industries that can be transferred and benefit the client. It is our job to understand what skills and attributes are critical to the position and find candidates who match those requirements, regardless of whether they have direct industry experience or not.
It is also important to remember that industry experience does not necessarily guarantee success. Candidates with lots of industry experience may still have weaknesses and limitations, and it's important to find the best candidate for the job, regardless of their previous experience. As Executive Search consultants, it is our job to evaluate the candidates on a wide range of factors, including their skills, personality and potential, to find the best match for the client.
In the end, it's about having the right balance between supporting and challenging the client. As Executive Search consultants, it is our responsibility to understand our clients' needs and present them with candidates who can meet those needs. But we also have an obligation to challenge their views and expand their horizons so they can find the best possible candidate for their organization, whether they have direct industry experience or not.
Peter Krogsgaard, SVP Commercial at Copenhagen Airport, has the following considerations, "I myself have made several industry changes from Retail, to Telecom, over the IT industry to my position today, as responsible for the commercial part of running Copenhagen Airport. I have focused on hiring talented managers, regardless of whether the management experience is from the same industry or a different industry. I have focused on two overall competencies: The intellectual capacity – the ability to understand the value creation and the ecosystem in a new industry, as well as the candidate's personality, drive, motivation, etc. Together, it often quickly provides direction, structure and momentum.”
We have outlined the most important properties in the 4 points below. Some of the most common transferable skills and competencies that can be transferred from one industry to another include:
Have you tried a change of industry or have you yourself hired someone who had no industry experience? And what is your experience with this?
Like everyone else, as candidates we experienced the post-interview limbo - waiting for the outcome that might, or might not, change our future.
Today, in our role as intermediaries, we find ourselves in the position of having to accommodate the (often excessively long) timelines of the client selection process, while being all too conscious of our candidates' state of limbo.
It is an uncomfortable position.
Both client and candidate should, and must, be looked after.
In our opinion, the only solution is to agree a roadmap of the entire selection process, which must be respected by the entities involved.
We understand that communication with our client is vital and when a remit changes we know an agile approach is imperative to ensure the process does not stall.
At the same time, we make sure that our candidates never feel isolated. We guide them through every step of the selection process, offering answers and suggestions, preparing them for interviews and establishing long term relationships.
Perhaps a week may be too short a time to give answers and manage what is certainly a complex process, but we think that within two months may be the right time to 'close the circle' and go from presenting candidates to hiring the best one.
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