Hiring a new executive is one of the few opportunities an organization has to improve its organizational performance AND culture – in one single action. Please allow me to highlight a recent example which dramatically contrasts the tangible difference between getting it right versus getting it wrong.
In the six months after Marissa Mayer was hired as Yahoo! CEO, market value increased $17 billion. Imagine making one decision that created $3.8 million dollars in market value an hour! At nearly the same time Yahoo! began its rapid ascent, Ron Johnson, the new JCPenney CEO, caused sales to decline $4.3 billion. A single decision of his brought losses of $500,000 dollars an hour!
The fresh thinking of a skilled leader can have a dramatic impact on an organization’s bottom line. Hire a “star” and you win because they will unleash innovation, empower employees, and generate wealth for the company.
Choosing poorly brings serious financial penalties. A bad hire may even mortally wound an organization because it affects all the stakeholders: shareholders lose money, employees lose jobs, partners and vendors lose business. None of this happens in a bubble. It ripples through the entire economy and influences everyone, even the consumers. No organization will survive for very long without good leadership.
Organizations today, live in a glass pressure-cooker with the heat turned up on high. An expanding global economy, coupled with shareholders who aggressively demand positive financial results at the speed of a Ferrari, has driven executive turnover to an all-time high. Not surprisingly, and in exponentially increasing numbers, companies are engaging outside assistance when actively recruiting senior executives. No one understands more about what it takes to attract key executives than those who make a living talking to them every day.
Executive recruiters or “head-hunters” spend all of their time working with and negotiating between client organizations and executives. Executive recruiters understand what it takes to secure the best and what it takes to keep them. Considering the results of Yahoo! and JCPenney, it is easy to understand why organizations are using executive search at an ever increasing rate!
Recently the global recruitment industry surpassed $590 billion in annual revenues, but that growth has come at the expense of quality and reliability. The industry has a spotty track record ‘delivering the goods’ as any Human Resources executive will tell you. In an industry that regards a 30% ‘stick rate’ as successful, there’s always been a real need to embrace alternative solutions which bring more certainty to a successful outcome – but the leadership starved global economy has put the industry under a microscope and deservedly so.
Hiring Greatness: How to Recruit Your Dream Team and Crush the Competition
Our new book will be on the shelves January 19th, 2016. “Hiring Greatness”, outlines a methodology and process which has proven to deliver success 99.97% of the time, over the last two and one half decades. The book’s audience is Level 5 Leaders and those in the organization who support them. “Hiring Greatness” will be followed by Executive Recruiting for Dummies in July 2016
Like a magician revealing the inside secrets to the public, “Hiring Greatness” invites the reader behind the scenes of one of the worlds’ most profitable and secretive industries to explain – in intimate detail – how any organization can learn to make the same types of hiring decisions that bought Yahoo! $3.8 million dollars of market value an hour! You can download the free overview.