Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Monday 17 July 2017

Value Added Services


Mitchelle ,

Following appeared in today’s Times

When we get ready with our “ Corporate Culture Matrix “ ( to be filled in by our clients ) – and thereafter , show them ( graphically ) , the MATCH PROFILE between our recommended candidates and their Corporate Culture , that will become our VALUE ADDED service

In fact , once this is incorporated in PREDICTOR tool under development , the same can be granted “ Remote Access “ to our Clients , who can then , upload resumes of their EXISTING SENIOR EXECUTIVES and check out , to what extent these existing executives imbibe their own Culture !

Hcp

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Mumbai: For decades, India's executive search firms have built their businesses purely on commissions earned on placements, largely driven by market intelligence. Today, with external disruptions like social networking sites and a complex hiring environment, business models of executive search firms are undergoing a change to extend beyond pure search. Value-added services such as coachingleadership developmenttalent managementconsulting and advisory now form major thrust areas for these closely held firms, in addition to senior-level placements.

Leading executive search firm 
Egon Zehnder (EZ) is often asked by its clients to create more holistic solutions to complex problems. Companies are increasingly seeing interconnections between different aspects of talent management. For EZ, in addition to senior-level searches, the broader landscape of leadership and talent development also encompasses longer-term succession planning. Pallavi Kathuria, managing partner, Egon Zehnder India, told TOI, "Disruption and change is the reality of the world we live in. The scope of our client service has broadened from identifying to developing and retaining exceptional leaders... In India, we see a gradual but sure shift from pure executive search to these leadership solutions."

Although high-quality leadership talent is always going to be in short supply and so executive search will continue to be the cornerstone of EZ's business, Kathuria said, "In response to our clients' evolving talent management needs, we are increasingly doing work in areas spanning senior-leadership life cycle such as assessment, development, coaching and our tailor-made CEO onboarding programme — executive breakthrough and accelerated integration."

For Executive Access, which has been into senior-level searches for two decades, value-added services is a natural and logical progression. Ronesh Puri, managing director, 
Executive Access India, said, "Like all other businesses, the search market is also at risk of disruption. When we entered this business, there was no data available and you had to build your own database and market intelligence. Today, digital has ensured there is democratisation of data. All search firms would be at a higher risk if they do not branch out into value-added services."

Social networking sites are posing a challenge to search firms and some progressive companies — especially established multinationals — are adopting mature HR practices of creating succession pipelines at every level and following the principle of 'grow from within'. For Puri, the proposition now is not just about getting the best people on board, but to develop them, motivate them and chalk out their career paths as well. He said all these aspects have become far more important today for a company than it was three-five years ago.

Companies too are comfortable dealing with one entity that will provide a 360-degree on all aspects of HR than pure search. As a result, revenue contribution from value-added services is expected to go up for search firms. "At present, value-added services form 10-12% of our business. Going forward, we expect one-third of our revenues to come from this service and the balance from the core business of executive search. So we are making the requisite course corrections for ourselves," said Puri.


Sonal Agrawal, managing partner, 
Accord Group India, said the firm already provides holistic advice to CEOs and boards on C-suite hiring issues, which could be classified as value-added services. In addition, Accord provides certain allied services as on a stand-alone basis. "We are now exploring the most effective way of institutionalising this basket of value-added services. The idea is to further develop some of the current offerings, so that more of our existing consultants and some specialised consultants are able to offer them more effectively," she said.


Agrawal, however, said executive search will continue to be the largest part of Accord's portfolio in the foreseeable future. "There is still strong demand for high-end, personalised CXO-level executive search consulting for leadership hiring, where the consultant's knowledge and assessment skills are key. There is disruption at the levels below that from internal talent acquisition teams and from the use of technology-based research and assessment tools," she said.


Executive search firms usually charge a 10-30% commission per senior-level placement. If a crucial post goes vacant, it takes six-eight months for a replacement. That can pose a huge risk to the entire business. An industry expert, who did not wish to be quoted, said value-added services are growing at a rapid pace while, on the other hand, pure search growth for some has been muted.



With Regards,

hemen  parekh 
( M ) +91 - 98,67,55,08,08


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