A great search starts with a complete business diagnosis by Littman

Steven Littman, Rhodes Associates

Great search does not start with a hunt for talent, but instead with a comprehensive business diagnosis.

Executive search is often viewed as a very sophisticated “recruiting” process of identifying, evaluating, assessing, and selecting candidates in order to hire a professional with the perceived qualifications that were identified at the inception of the assignment. But that is absolutely placing the cart before the horse. 

At Rhodes Associates, we believe that an in-depth diagnosis of our clients’ organizational structure, business plan/strategy, challenges and the marketplace must precede any attempt to determine what an optimal human capital solution might be. This is why the initial stage of our search process begins with an evaluation of the organizational issues we believe are critical in setting our search strategy.

Rhodes’ diagnostic process considers all relevant organizational issues, including the evaluation of a company’s success and growth capabilities. There is always an opportunity to grow the profitability of a business by raising the bar on performance. The question is where a company is falling short and why, and how it can further leverage its success.

One key issue to be explored includes how the functions of an organization are structured and how they collaborate with one another. All too often with our clients, we see that the different functions of a business are viewed as silos within an enterprise. Over the years, these silos may develop into islands whereby people working within the same organization fail to truly collaborate, causing dysfunctionality. This dysfunctionality can lead to a lack of productivity, inefficiencies and even conflicts that can sap a company of its full potential. In this instance, Rhodes’ diagnostic process explores these issues and looks for ways to correct them.

It reveals where and why the silos have morphed into islands; and it addresses the personal and professional skill sets the business leaders need to create bridges to their peers as opposed to protecting their island. 

Once we identify the organizational, operational, and strategic issues impacting the business, Rhodes’ search process focuses on creating an organizational solution, based on this diagnostic assessment.

To give a different and specific example of our diagnostic process, Rhodes recently managed two assignments to recruit a president for separate, $1 billion+ privately owned real estate operating companies. The two assignments were similar in that both firms had a chairman/principal owner in each company who the president would report to. In addition, each firm invests in existing commercial properties, as well as ground-up development on a national level. As similar as these firms are in structure and strategy, Rhodes’ diagnostic assessment produced two very different, but critically important analyses of key issues.

In one business, the chairman was very involved in investment strategy and financial structure but less involved in the day-to-day operations.

In the other business, the chairman was more strategic and only peripherally involved in the overall operations, investment and financial structure. Their involvement was more broadly strategic and focused on key operating and investment decisions with significant capital impact.

While the assignments in both instances were to identify and hire a president, the nature of the two positions varied substantively based on the personality, experience and involvement of each chairman. The key to success was recognizing the differences in each chairman’s role and adjusting the position specifications to identify the most accretive organizational solutions. As identified by our diagnostic process, both assignments were completed successfully with candidates who possessed very different personal and professional skills.

One candidate’s primary background was in management and operations with a subordinate skill in finance and investments.

The second successful candidate’s experience was more of a balance between deep experience in the general management of a real estate operating company as well as driving investment strategy and financial structure.

At Rhodes, we are committed to the belief that an extremely sophisticated and knowledge-based business diagnosis must precede the actual process of identifying, assessing and hiring a successful candidate. Only then can we ensure that we are defining the organizational solution which will create the highest level of success for our client.

Steven Littman is the president and managing partner at Rhodes Associates, New York, N.Y.