(Paper given by Andrew Horsley at "Doing Business Research" seminar, Australian Graduate School of Management 19 May 1998)
Introduction
This paper explores the function of research in an executive search consultancy. It examines the critical issues affecting research and the central importance it has to the consultant's role.
The Australian Concise Oxford Dictionary defines "Research" as:
la. The systematic investigation into and study of materials, sources etc in order to establish facts and reach new conclusions. lb. An endeavour to discover new or collate old facts etc by the scientific study of a subject or by a course of critical investigation.
The words in that definition which mean most to me as an executive search consultant are:
systematic and critical investigation. In an executive search consultancy research does not exist in a vacuum. Research forms the foundation of executive search and is fundamental to the role of the consultant so that the twin ideas of research and consultant are inextricably linked. The better the consultant the better they are able to use research effectively. Research is a technique when soundly developed and practised leads to enhanced performance.
An analogy is that Pablo Picasso could not paint the paintings he did if he did not have sound technical drawing and drafting skills, Reinhold Messner could not have climbed the high peaks of the world without superior mountain climbing techniques and skills and the Oarsome Foursome would never have won their Olympic Gold medals without excellent rowing technique. Like so many disciplines, activities or fields of endeavour, without an adequate foundation of technique, skill and discipline, performance will be compromised. Good technique encourages and promotes better performance.
Therefore, without fundamental skills in research a consultant compromises the search effort.
Every phase of the search process involves research, whether it is researching the client organisation, researching the market or industry in which the client operates, researching competitive conditions and circumstances, research of targets and sources in an industry or research of the database. Even reference taking is a form of research.
Research and the Consultant's Role
Research assists the search consultant in the evaluation of an executive's career and the way in which the client's management needs will be addressed.
A very pertinent observation must be made: Comprehensive research does not lead to perfect knowledge. By that I mean even if your knowledge is encyclopaedic about an industry or a sector it does not necessarily mean that you will be able to identify the best candidate for a role which will match precisely your client's need. This is because of the earlier observation that research does not exist in a vacuum and that thorough search requires good consulting skills. Quality consulting requires the harnessing of the research effort.
Everyone has a view on what makes a good consultant but the inescapable fundamentals are:
understanding the client's requirements; being able to work effectively in the market and using those personal skills and qualities which reflect quality, timeliness and achieving the best result possible.
Research is best done by the consultant engaged on the assignment rather than through the usurpation of the true consulting role by researchers and associates. Researchers and associates may have a role but the best research is done by what is in the consultant's head.
Another observation that must be made is that research when done well and on the basis of accurate, up to date knowledge will always give you a faster result. Obtaining direct access to the information that you want when you need it during a fast moving search is essential. This is a function of well-maintained databases, access to competitive intelligence and being in touch with the market.
Research and the Evaluation of the Executive's Career
Research in an executive search consultancy is not merely knowing "who's who". Research is a central component of a consultant's skill assisting with the evaluation of an executive's career. All search consultancies will have their individualistic approaches as to what they look for in an executive's career however it will largely focus on "track record"; how have they performed; what is the fit in terms of technical ability and culture and how well might the executive perform in the future. Every aspect of this will be touched by research.
The consultant is in the front line weighing up and evaluating information. Research must be at the fingertips of the consultant and when research finds itself in the far reaches of the backroom then the reference to the "black hole" of research is justified. There is a time when research stops and consulting begins!
Transparency in an Executive's Career
The foundation stone of executive search is that the search consultant will seek to find the best attractable candidate for the client. This does not mean that an excellent candidate will always be attracted by the client. There is a compulsion for the search consultant to seek out the apparent, the visible and transparent and not the concealed, suspect or dubious. If you are looking for someone who is outstanding and who has standing in the market that is most frequently revealed by the systematic enquiry, investigatory and forensic process of executive search. Once the best candidates are identified there follows another important phase in the search process. It is the client who makes the hiring decision from the available candidates and the consultant should not assume the role of "kingmaker".
Research and the Client
I often use the coach/athlete analogy in explaining the relationship of consultant and client. Just as the informed and perceptive coach learns an enormous amount from the athlete so too a perceptive consultant will learn a vast amount from the client. Research can help inform the buyer decision making process by promoting within the client the visceral feeling of wanting to work with the particular search consultant.
The executive search consultant is not merely a provider of bodies or someone to fill a hole in an organisation. Executive search is business at its most human. Search is where the client trusts implicitly the search consultant with the 'corporate crown jewels' in being able to assist management in identifying and bringing on board the talent which will enhance the next phase of the business. Good research is founded on critical evaluation and rigorous analysis. It may also be seen as a form of risk management insofar as through the search process risk is minimised by appointing the candidate with the optimum chance of success.
Research as Marketing
Research can be seen in a marketing context not only in helping to gain a better understanding of the client and win the assignment but by informing and strengthening the client/consultant relationship during the course of the engagement.
Executive search is a two way process. During the course of a search assignment the feedback derived from the marketplace will help refine, calibrate and, if necessary, redefine a specification. Indeed, many times I have seen that as a result of market feedback the assignment specification needs to be reappraised. This has assisted the client immensely and the client typically welcomes honest and direct feedback. This extends to the perception of their own standing in the marketplace, what candidates may have to say about them in aggregated form as well as the types of candidates who may or may not exist in the marketplace in comparison with their original expectations.
Executive search is about managing client expectations and dealing with the realities prevailing in the marketplace. Research as marketing helps you tailor an individualistic approach to suit your client, however, a line has to be drawn between original research concerning the market versus the over eager or over enthusiastic search consultant overstating their case and exaggerating their performance capability as to their capacity to undertake the assignment. In the end, if performance doesn't measure up, the resulting unfulfilled expectations lead to client dissatisfaction and disappointment
The Lifespan of Research
Databases date at a rapid and inexorable rate. At least 25% of a database changes annually, therefore over a four-year period there has been a total change in the database reflecting an executive's movement within an industry, change in functions and change in level of responsibilities or change in location. Therefore research means non-stop continual activity in the life of an executive search consultancy and again, unless a consultant is always endeavouring to keep a database and information up to date and relevant the quality of the consulting advice will be diminished. Remember, the larger the database and the greater the number of categories in it, the more difficult and time consuming it is to manage.
Aristotle, the Internet and Occam's Razor
Aristotle in the fourth century BC set out systematic categories of the natural order. He was the first to develop a taxonomy of the animal kingdom. Almost two and a half millennia later we have the Internet with its plethora of data and information. Could it be that the Internet will eventually deliver a taxonomy of all the executives available in the world? While the Internet does have advantages it only reveals what people want to reveal of themselves. It may serve as a veil or mask as to the true characteristics and qualities of an executive. With the plethora of databases existing, discernment and objectivity become difficult. It was the late 13~ and early 14th century philosopher William of Occam who stated the principle that entities are not to be multiplied beyond necessity which became known as Occam's Razor. The consultant would be well advised to rely on judicious and critical consulting skills applying Occam's Razor so that things are not made more complicated than they need to be. It is hard to beat the proprietary knowledge developed personally by the consultant.
The Ethics of Research
The executive search consultant is the recipient of much information revealed from clients and candidates which is both personally and commercially highly sensitive. The ethical executive search consultant must have sufficiently well founded qualities of perception, judgement and discretion to know what is private, confidential and privileged and must never trade on this information so that people or organisations are compromised. A search consultant may be possessed of corporate and personal secrets and that is the way they must stay.
Future of research
The perfect database will not of itself solve the client's problem. The unique interpersonal skills and qualities which the well trained professional consultant can bring to the assignment support the premium which will enable an executive search consultant to maintain an edge in business.
Research will only ever be a tool, an adjunct or component in the consulting engagement. As good as research may be it will never lead to omniscience. While research is important it always will be the highly personal and interpersonal qualities and skills of the executive search consultant which will be the differentiating factor. The techniques and technology of research should not be confused with the insights and judgement of consulting.
Conclusion
Research does not exist in a vacuum.
Every phase of the executive search involves research.
The better the consultant the better they are able to research.
Comprehensive research does not lead to perfect knowledge, consulting skills must always be
uppermost.
There is a time when research stops and consulting begins.
The consultant should not assume the role of "kingmaker".
Search is business at its most human.
Search is a two way process.
The larger the database the more difficult it is to manage.
Apply Occam's Razor to the Internet.
Ethics are paramount in research.
The perfect database will not solve the client's problem - true consulting skills are required.
Techniques and technology should not be confused with insights and judgement.
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Horsley & Company is a high-level executive search consultancy. In addition to executive search the consultancy undertakes board appointments; remuneration advice; acquisition, divestment and merger search; management evaluation.
Horsley & Company, Level 8, 139 Macquarie Street, Sydney NSW 2000, Australia Phone (02 9251 6620) Fax (02 9241 5818) email:andrew@horsley.com.au web: www.horsley.com.au
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