Growing a family business from the outside

The tiptoeing phase is over, and the time to start building is now. An avalanche of stimuli is about to be triggered in the global markets, and this is also becoming apparent in businesses’ expectations of strong growth.

How did we get here?

When COVID-19 struck, development, consulting and purchased services were minimised and cash resources were secured. Now businesses once again have more leeway to implement their strategic plans. Success however may require new competences and new profiles – the CEO or the members of the management team may even need to be changed.

A new CEO from outside the family business?

Many external candidates have reservations about joining family businesses because every family business has its own unique cultural heritage - and this is often not openly discussed. The way the family make decisions, discuss matters, approach things and perhaps even how they operate outside formal structures - as well as all the unspoken values and powerful characters operating from within the family.

Recruiting a good CEO from outside requires the family to be transparent and clear about their organisation’s culture.

What do external candidates look for?

Someone joining a family business needs to be genuinely interested in its story. In addition to the business operations, there may also be something attractive about the family business’ values or ways of working. Some are looking for a lifestyle change and perhaps a company that commits to a long-term vision in their business operations instead of quarterly optimisation.

Family businesses must give external executives room to work and breathe.

How do we ensure compatibility with the family?

Objective methodology is vital.

Competency profiling and cultural profiling with candidates is at the heart of the process. It’s extremely important that the outsider is compatible with the culture of the family business.

The biggest risk is taken if an executive is recruited on the basis of a recommendation by an acquaintance or family member. A “good person”, as recommended by an acquaintance, may not necessarily work as the impetus for change - plus familial relationships can easily be ruined.

A successful management team

The COVID-19 era may also bring about a need to update the management team. Listed below are four typical situations where it’s a good idea to determine whether there is a need to make changes to the existing management team:

• There is a change to the strategy defined by the owners.
• The business has been managed by the same management team for more than five years. The owners want to test whether the management team is still able to actively reform itself.
• There is an acquisition. The investor or another owner assesses whether the management team of the acquired business is compatible with the strategy.
• A new business unit is established.

Mika Rossi, Partner
Finland

The phrase “Turnover Tsunami” is becoming slightly overused, but it is accurate - and there is no doubt it is happening.

I was speaking with a CEO yesterday about why he is experiencing such high staff turnover rates, even at senior level– and by that I mean voluntary departures and resignations.

But why?

• Economic uncertainty: there was reticence about changing jobs during a shut-down.
• Disengagement: Many believe that they’ve lost an entire year’s worth of progress in their careers.
• Burnout: Most people worked longer hours and have a degree of pandemic burnout.
• Disconnect: For some, working from home left people feeling undervalued and adrift from company culture and values.
• Work / Life balance: opportunities to work remotely and even relocate to a more desirable place to live.

Turnover is costly

Recruiting, hiring, and training is expensive -  not to mention the time spent behind each phase of onboarding. More than that though, companies are potentially losing a valuable resource - someone with years of institutional knowledge.

What can you do?

Embrace the idea that business strategy and workforce planning will look different post-pandemic and to get started on identifying the talent, skills and roles that will be necessary to prosper once the health crisis passes.

• Actively listen: to stem a turnover tsunami find out what your people need - and, depending on the size of your organization, coaching and consulting firms can provide the expertise necessary to retain your staff.
• Upskill: We see too many clients defaulting to recruiting exactly the same skill sets that were previously successful in that role. We encourage our clients to identify and cultivate new skills because people should feel excited to stay within a company and see growth.
• Retain top performers: focus on their career growth and be more transparent about career progression.
• Create a culture of recognition: this is proven to be effective in decreasing turnover, as well as boosting productivity and engagement.
• Remuneration: Sit down with your team and re-evaluate whether your benefits packages are equitable, competitive, and honest. Identify the shortcomings and come up with actionable steps to remain the most attractive option.
• Get honest feedback: You may want to think about the power dynamics at play during these exit interviews and internal surveys. How comfortable do employees feel sharing their true disappointments and frustrations with you? Interviews and conversations conducted by third parties can provide your workers with a safe space in which to share serious underlying issues within the team and give you valuable feedback.

Lorri Lowe, Partner
UK

Over the last two years, the Covid crisis has elicited stark changes within multiple business areas and Executive Search is no exception.

In my opinion, there have been two noticeable structural changes to our industry:

• The massive increase in the use of video conferencing imposed by the lockdowns and health restrictions.
• The soaring of WFH as well as an increased flexibility regarding whether or not executives will remain purely home-based.

The wider use of video conferencing allows us now to significantly reduce the lead time to a first interview between a consultant and a candidate, or a client and a candidate. Arranging in person meetings, with all the diary negotiations that necessitated, was always problematic and in many ways life seems to have become more fluid. However, this ease of business is not all positive.

I have observed an increasing volatility of candidates within selection processes. Indeed the 'plug and play' aspect of video conferencing appears to result in many candidates committing to the process much less than in a face-to-face as the former requires a far lighter logistical input than the latter.

Some candidates engage in a recruitment process without any sincere motivation for making a professional change. And even if motivated, some candidates also would consider video interviewing a lesser process, versus face-to-face, and so sometimes do not give it the necessary preparation, time or attention. Some may even unconsciously believe they will be given a later opportunity to have a 'proper interview' but actually they adversely impact their chances to even qualify for the next step.

Video interviews can limit our capacity of thoroughly assess an individual as traditional paralinguistic nuances are distorted such as waving, opting for a blurred or fake backgrounds, poor connectivity etc.

There is no doubt that the rise of remote working has shaken up organisations by giving a reduced focus on where people decide to live relative to the the location of the company. This recent change elicits a larger pools of relevant candidates and consequentially a higher quality shortlist. This new WFH culture needs to be supported and lived by our clients - either through their own culture and conviction, or by mere pragmatism in reaction to what is a hugely competitive Talent market.

In spite of all the recent changes imposed upon our ways of working, effective Executive Search remains strongly based on the basics -  simply finding the very best leaders or problem solvers for the benefit of our clients.

Julien Wilhelm, Partner
France

How important are sponsors in the careers of women?

And are female managers committed supporters of women?

In my conversations with female managers, I like to ask the women whether they have actually received support over the course of their careers. Many confirm this by saying that it couldn't be any other way: you need a manager who recognises your potential and pushes you forward, or delegates new tasks and ultimately promotes. And in every new team and / or department it is important to make contacts again and ideally find sponsors. In the best case, it is possible to establish a good relationship with board members and managing directors, who are also successfully following their path and promoting and developing potential. Leadership programs for young talents also help to gain visibility, but such programs are not available everywhere.

Very few women say they made it without a sponsor. They also recognise that further development, with support, would have meant fewer detours and would have been faster. In most cases the sponsors are male. This may be due to the fact that there are fewer women than men in management.

But the question also arises, to what extent do women actually support other women?

In the interviews I have experienced two “extremes”:

On the one hand, there are women for whom, the quota is (unfortunately) a necessary intervention by the legislature in order to correct past mistakes. It is very important to them to support other talented women and to be available to them as mentors - even keeping lists of potential female executives to promote.

Then there are women who do not even want to be associated with the “gender issue”. They neither want to be a quota woman, nor do they want to attract attention through the special promotion of female executives. They are of the opinion that only experience and knowledge should be deciding factors regarding promotion.

Does that coincide with your observations?

How do “quota women” feel in companies? Do we see legislative intervention as an opportunity for all women to bring change in the male-dominated boardrooms?

Meltem Ay, Principal
Frankfurt

Jeff Bezos’ 2 pizza rule is a useful guideline for deciding how many attendees should be invited to a meeting.

In theory, meetings should be small enough so attendees could be fed with two large pizzas to discourage Groupthink and HiPPO, ('Highest Paid Person's Opinion').

Virtual meetings have necessitated (mostly) a reduced number of attendees: “I’m sorry, you go…”/ “No sorry, I was just saying..”/ “What were you saying?”/ “Sorry, we missed that” / “Did you say something?”. Six people suddenly speak at once. Silence. Repeat.

Now that many of us are starting to return to the office, increasingly in-person meetings are going to become part of our daily lives once again. And I am looking forward to it. We are hardwired to pick up on the subtle conversational nuances of hand gestures, facial expressions, posture and even physical touch like a handshake. Body language is an indispensable part of communication.

Smaller meetings can generate a feeling of intimacy which often leads to bolder and franker discussions. Fewer participants also mean more time to listen to and consider another perspective. In turn, the group members feel heard and respected, making them more productive.

So, when you are invited to that in-person meeting, (apart from eating the pizza), what can you do to make an impact?

• Be prepared – don’t be tempted to wing it. You can’t pretend your signal dropped while you root around in your files for the statistics you need.
• Make sure you are on time. You can’t blame internet connectivity problems if you are in the room. You might think being late makes you look like you’re super busy, but it just looks like you can’t manage your time - or worse, that this meeting isn’t that important to you - or even worse, that you like to go on power trips by making people wait for your grand entrance (I hate that).
• Pay attention –and not just the bits in which you are interested. You can no longer turn off your camera to do something else. Don’t come across as selfish, disinterested or arrogant and remember to leave your mobile somewhere else (no one is that important).

But, with all the excitement of actually being with real people once again, don’t hog the floor. Be a thought-leader - articulate your expertise and express your point of view, but don’t try to be the smartest person in the room -  you don’t want arrogance to be your most memorable trait.

Lorri Lowe
Partner, London

Friisberg will drive your diversity agenda.

Before writing this article, I had one of those “Blah” days when I felt low and could not put my finger on why. For those who do not know what this is, there is another word for it - languishing. Languishing is a sense of stagnation and emptiness, and if you would like to learn more, I can highly recommend you read Adam Gratton’s article, as posted in the New York Times.

My “Blah” day however, was  lifted by a quote that I found by Sonya Renee Taylor:

"We will not go back to normal. Normal never was. Our pre-corona existence was not normal other than we normalized greed inequity, exhaustion, depletion, extraction, disconnection, confusion, rage, hoarding hate and lack. We should not long to return, my friend. We are being given the opportunity to stitch a new garment. One that fits all humanity and nature "

I am far from an expert in diversity, equality, and inclusion. Still, I have researched the topic during my years working within the talent and leadership profession. As a result, I am passionate about how we harness differences in our workplaces and create a fair playing field for everyone.

I live in Sweden, ranked 1st in the EU on the Gender Equality Index, yet we are still lagging in gender balance regarding our leadership positions. Research from SCB (2020) shows that 41% of Sweden’s total leaders’ population are women and 59% are men -  however, only 17% of Sweden’s CEOs are women.

A recent Di Digital survey reveals the investment distribution to privately-owned technology companies in Sweden. 1% of investments was granted to companies founded by women in 2020. In addition, the share of investment value given to mixed founding teams increased to 11%.

The relationship between diversity and business performance persists and continues to grow, so progress is being made.

Fredrik Hånell, an entrepreneur and investor who currently works as a “business creation director” at EIT Urban Mobility, stated in the Di article, “If entrepreneurs cannot build a gender-equal team, they lack one the most important components for building a successful company. Soon I hope that all start-ups we work with have a female co-founder.”

Gender is only one aspect of equality. As Pride month has come to its end, I reflected on how we, as executive talent consultants and business advisors, can actively support our clients with their diversity, equality, and inclusion agendas.

As a business, you must have an inclusive culture. Research shows that diversity is not just a metric for which to to strive, it is an integral part of a successful revenue-generating business. This does not mean simply having colourful posters throughout your offices stating your values, instead, it is a business strategy and mindset, a commitment and responsibility of all leaders and embraced across the whole organization.

At Friisberg, we:

• Take the time to understand your business, culture, and DEI agenda.
• Discuss any unrealistic expectations.
• Provide an outside-in perspective of the talent market, both from a local and a global perspective.
• Advise on the hiring process to ensure it is fair, inclusive, and free of any biases.
• Conduct a selection process based on facts and candidates' skills, competences, experiences, and abilities.
• Address and consult on compensation and address any pay disparities.
• Support the candidates onboarding process by providing coaching & mentoring.

DE&I matters, and we bring the thought of diversity into our board services assignment or when conducting management audits.

"We are committed to serving our clients by finding diverse leaders and providing an unbiased thought process throughout our consulting process. We have improved our knowledge, by running  internal programs such as Reverse Mentoring and Unconscious Bias training."  Michael Rooslien, Partner, Sweden.

Social and technological changes will continue to transform the landscape in every industry.

Organizations who don’t embrace DE&I will potentially risk earning potentials and falling behind their competitors.

I believe, the companies who create a workplace for everyone will cultivate tremendous value from their people’s differences and thrive.

 Yvonne Erlandsson
Snr Talent Consultant, Sweden

Friisberg & Partners are delighted to announce their inclusion in the UK Department for International Trade Investment Support Directory.

The UK government recently updated the UK Department for International Trade Support Directory.

Friisberg has been recognised as a company that has the skills and experience to help overseas businesses establish themselves, or expand, in the UK.

At a time of both political and economic uncertainty, companies need trusted, professional advice on how to promote and grow their businesses. We already work with investors across the globe and the DIT has now made it even easier  to access our multi-sector expertise.

We are delighted to have been included and recognised as a specialist Management Consultancy firm for FDI. This demonstrates that Friisberg enjoys a reputation as a game changing and an authoritative firm providing leadership and recruitment advice to UK and international companies, ranging from start-ups to global corporates.

• We have over 25 years' experience and skills in helping overseas businesses set up, or expand, in the UK.
• Through our international offices, we get accurate market insights on the UK's neighbouring countries, helping you make an informed business case for expansion.
• Our extensive network spans industry leaders, chambers of commerce and centres of R&D excellence.
• We offer reliable industry insights, helping you make even better decisions.
• We offer bespoke research on specific UK industries.

We always work closely with our clients, offering bespoke recruitment strategies, training insights and estimated salary projections that could be essential to the success of your business.

A resignation is a strategic career move, so do it right!

Sooner or later most of us face a resignation.

Resigning is never easy, especially when you’ve worked at a company and become a part of a team, but I always recommend that you leave your employer on a positive note. If you have given your best to the job, you will be missed, especially by those most inconvenienced by your leaving.

Go straight to your boss. Your immediate supervisor should be the first person you tell about your decision to leave the company.

Give the news in person. Tell your boss that you have accepted a new position and let them know your effective last day at work.

Try to give as much notice as possible

Put your resignation in a hard copy letter that includes your last day and any transitional agreement. Keep a copy.

You also need to be prepared to leave right away- some companies require it, so if you have any personal information on your work devices, be sure to clear it off before you give notice.

Resist accepting a counteroffer. The factors that caused you to seek an opportunity outside your current employer are likely to remain in force. Aside from that, your current employer will probably lose trust in your loyalty.

Always leave on a high note. You never have a second chance to make a last impression.

Karen DelPrete
Partner, New York

Meet our next global Chair, Zoltan Petho

Every four years, our senior partners elect one of their peers to serve as our global Chair. The role plays an important part in shaping the strategic direction of Friisberg & Partners International. Zoltan Petho has been elected as our next Chair from July 1 2021. He will follow in some impressive footsteps since our 1977 foundation. In his previous role as Friisberg’s Chief International Business Development and Quality Officer he has worked closely with colleagues in all of our 40+ offices around the world, focusing on expanding our capabilities while ensuring we continued to answer our clients’ most urgent needs amid times of rapid upheaval.

People describe you as outgoing, proactive, and a genuine people-person. Is that how you would describe yourself?

Well, I think it is better that I leave it for others to describe me as they see me! One of our biggest assets is most definitely our people and I like communicating with people. It is essential that our ideas and strategy are not just words, but brought to life and evidential in our daily work. Here I feel my personality means I make sure things happen.

You’re about to step into a hugely demanding role. What three things are you looking forward to the most?

There is no doubt that expectations are high following our former Chair, Peter Strandberg who led our firm for 8 years. The support I have received from Partners has been outstanding and the opportunity to help direct Friisberg’s future, energizes me very much.

• Together with the Executive Committee, my first priority is to formalise our 4 year strategy, ‘Friisberg 2025’. We must continue to innovate because change is constant, we must develop our skillsets, service offerings and focus on continued growth.
• Our cross border cooperation is already superb, but I would like to boost  our international sales activity.
• In normal times all the Partners meet twice a year for a Friisberg Conference. We are all looking forward to having a great and memorable Partners’ Meeting in Milan, October 2021.

You have mentioned that you are supported by an elected board of directors, known as the Executive, consisting of four senior partners. How do you feel you will work together to set the strategic direction and policies of the firm?

Yes, it is great to have the support of our senior Partners in the Executive Committee. I have known them for a long a time and have worked with them quite often over a number of years. I really count on them for their input, and their opinions – and more importantly I really enjoy working with them. It is worth noting that the elected Board are all women and we pride ourselves on our gender parity throughout Friisberg.

Diversity within Friisberg is part of our daily life. More than 50% of our Partners are women and in the Executive Committee I am the only male. So, when we talk about diversity with our Clients, it is something we can show we understand. Diversity is always a top propriety for our clients - especially in those countries, Germany or in Scandinavia, where there is legislation in place to ensure Boards must operate in terms of diversity.

How do you think our profession needs to evolve?

Well, although we have found ourselves in a challenging situation during the pandemic. I am proud that four of our offices have experienced significant growth during 2020. This highlights the strength of our Partners and how we support our clients, not only as a search firm, but as trusted advisors.

I am very positive about our future as we are an agile firm and are able to adapt to a changing environment and new requirements from our Clients. This approach enables us to quickly implement new technologies, to achieve success in newly born sectors (greenergy, e-mobility, etc) and on the other side also support our traditional family-owned businesses.

What do you enjoy doing outside of work?

Being a Partner and Chair of Friisberg requires lots of energy, enthusiasm and passion as well as my times. I try to spend as much time as possible with my family, I like gardening, sport and I am also an enthusiastic Formula 1 fan.

Interview with Cristina Mancas, VP HR SEE at Schneider Electric

Schneider Electric is leading the Digital Transformation of Energy Management and Automation in Homes, Buildings, Data Centres, Infrastructure, and Industries. With global presence in over 100 countries, Schneider is the undisputable leader in Power Management – Medium Voltage, Low Voltage and Secure Power, and in Automation Systems.

How did you adapt to Covid pandemic and what challenges did you face during this year?

A year ago, when the pandemic started, we were lucky that we needed only one meeting to decide that we would work from home.  However, over the past 12 months, we faced challenges we never thought we would. By far the strangest feeling for an HR professional is being away from colleagues at work, but since we all agreed that the work from home solution was the best, we all started to get used to seeing each other via our online meeting platforms.

The toughest challenges we have had to face so far are probably recruiting and onboarding due to the limitations we now have in demonstrating the Schneider Electric Romania organizational culture to the new recruits. We have a vibrant organization of dedicated professionals, and meeting with them and understanding the feeling of camaraderie we all share is especially important for any new employee. Of course we tried to replicate most of that online and we made sure new employees have access to as many relevant colleagues as possible.

We are now allowing some of the people to return to the office under strict conditions, and we can see they missed each other. On a positive note, online communication has been more intense than ever. Many managers now have a chance to reach out to their entire teams even more frequently than in the past. It is easy to set up a quick online meeting, involving many employees - and this is much easier than in real life! So managers have taken the opportunity to talk to their people directly about how the pandemic has affected both their professional and private life.

What are the projects you implemented during this time?

Schneider launched a big global project last year in April, 'Open Talent Market'. There were many discussions at HR level at the time about whether we should launch it, being in the middle of a pandemic and worrying people would not have time necessary to dedicate to this type of program. However, there were many employees who said they wanted to join the platform as soon as it was launched.

Open Talent Market is a platform that allows all employees to enter and connect with mentors from across the Schneider world, if they want to develop their skills. They can connect or apply to local or global projects, but also apply for full-time roles. At South East Europe level, the area for which I am responsible, Romania is leading with an adoption of 78% in less than a year, according to last reports.

'Career Week' is another project that was recently  launched in June. In this learning week we offered content, both locally and globally, on five main directions: technical career, functional career, cross-country career, a career that involves interaction with clients and a career in