STRATEGIC MANAGEMENT - II

EGON ZEHNDER

PGP I TERM III

19th February 2018
WHAT Are THe key reAsons for eZI’s success

as an international executive search firm?

 eZI’s key success fAcTors Clients come first,
Firm comes second,
Professionals come third
Client First
Highest Ethical Standards Philosophy Fixed Fee

Lifelong Career Candidates off-limits

for further search
Reputation
Highest Recruitment Standards
for Quality
(cognitive abilities, relationships,
self-starter, personal fit) Organic Growth

Single Profit Centre Firm Owned Wholly and

One Firm Equally by the Partners

Lockstep Compensation Partnership

Belief in Collective Impact
WHY CONSIDER A STRATEGIC REVIEW?
 NEED FOR A STRATEGIC REVIEW
Internal
Competition from Differences on
U.S. based Search Strategic Direction
Firms

Need for a
Strategic Review Zehnder’s
Retirement
I.P.O’s by
Competitors

Internet
Competition
STRATEGY IS NOT RELEVANT TO A PROFESSIONAL SERVICES FIRM

- DAN MEILAND

DO YOU AGREE?
 STRATEGY AND POSITIONING IN A PROFESSIONAL SERVICES FIRM

The Strategy of a PSF can be conceived of at two levels:

• Corporate Strategy – overall strategy of the firm

• Practice Strategy – strategy followed by individual practices within the firm

PSF’s strategy must have resonance for all three constituencies – clients, owners,
and professionals.

The PSF’s overarching strategy must be consistent with its positioning in the various
service markets.

Corporate Strategy determines how the practices interact with each other.
 WHY STRATEGY IS DIFFERENT IN A PROFESSIONAL SERVICES FIRM
Sources of Competitive Advantage are different for PSFs

Abstract Knowledge is a strategic asset

Scale economies rarely exist (but sometimes they do – ex: Big Four audit firms)

PSFs rarely require a large infusion of capital

Switching costs are rarely associated with physical investment, but can be high in
Psychological terms

Market share does not automatically translate into recognition as a premier service provider

PSFs rarely benefit from first mover advantage

Performance Metrics are not observable

A Top Down Strategy is difficult to implement

 ImplemenTIng sTrATegy In psf’s
Strategy in a PSF is the realized consequence of the professionals’ efforts.

Strategy should be articulated as simply as possible.

Strategy should be consistent, across boundaries and over time.

For strategy to be effective, the professionals must buy into it.

PSFs often do not often differentiate themselves on the basis of strategy, but on the
quality of execution.

A PSF must have clear and consistent answers to the following four questions:
Target Clients: Who to serve?
Service Delivery Proposition: What to offer?
Service Delivery Process: How to serve?
Service Professionals: Who should serve?
 VALUE CHAIN FOR TALENT ACQUISITION

Candidate Response Screening / Hiring / Tracking &

Need Definition
Generation Management Selection Onboarding Reporting
 Metrics and
 Executive  Requisition  Skills testing
 Job boards dashboards
search mgt.  Cultural
 Permanent  Personality awareness
 Recruitment  Recruitment
hire  Interview testing  Industry
advertising productivity
 Temporary / scheduling knowledge
mgt.
Contract  Reference  HR policies
 Job fairs
 Outplacement  Resume services / procedures
 Quality-of-
 Relocation processing  Benefit
 College hire mgt.
 Interim mgt.  Interview profiling
recruiting
 Vertical  Applicant services  Performance
 Performance
expertise tracking expectation
 Candidate mgt.
 Geographic  Background setting
sourcing Legal and
variations  Document mgt. screening
compliance