Top Banner
Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?
31

Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

Dec 23, 2015

Download

Documents

Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

Peter RuggManaging PartnerTatum Partners

February 26, 2004

Trends in Executive Employment

Could You Be A Successful Interim Executive?

Page 2: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

Small vs Entrepreneurial Growth CompaniesA Key Distinction

Who’s Creating Jobs - CogneticsGazelles accounted for more than 90% of the growth in

US job growth although they represent only about 4% of firms’ population.

Gazelle Size Manufacturing Companies grew 6 times as fast as large Manufacturing Companies.

Companies that began growth spurts with 100 or more employees ( only 2.7% of Gazelles) created well over half of the entire job growth indicated above.

Page 3: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

Tatum Partners’ Survey Participation DemographicsFebruary 1, 2004

In the past thirty daysIn the past thirty days business conditions –-

Improved for 42% of our respondents, Got worse for 11%, Stayed about the same for 47%.

Page 4: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

Tatum Partner’s Survey of Business Conditions

Trends

In the next sixty daysIn the next sixty days, business conditions are expected --

• To improve for 65%; • To remain about the same for 29%;

• To get worse for 6%.

Page 5: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

Executive Employment Update – National

• No downturn for CEO/CFO/COO replacement positions

• Always great jobs for great people

• Not seeing growth jobs in mature companies

• 2003 was improved year for national search firms

• 2003 especially second half strong for Tatum Partners

• Tatum CFO leads/inquiries up sharply in last 60 days

Page 6: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

Executive Employment Update - Local

• Philadelphia lags national trends• More opportunities in Mid Market - $10m-60m• VC/PEG funding activity improving• Early stage and technology improving• Executive recruiting in these segments improving• Weak management teams• CEO/COO picking up• CIO still slow• CFO good in smaller companies and early stage

Page 7: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

Recruiting Tips

• Network, Network, Network• Must meet all the job requirements or have a nice day!• Be brutally honest in self assessment and match to position

requirements• Integrity is always in vogue• Preparation for interviews• The art of conversation vs email• In transition vs employed being recruited – go extra mile• If you won’t relocate, be prepared for sacrifices• Chronological vs functional resume/customized approach• Hardest thing you will ever do is get this job!• Contact frequency for networking

Page 8: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

Dual Oscillating Career(s) – The Future of Careers

• Career management today is a dual trajectory• Employment assignments• Project assignments• Opportunities in one leads to the other

• The death of career management - singular• You take care of your company and it takes care of you• Free agency• In sports free agency works for the elite players• In business it is largely the same. For truly great people it still

works – not for all.

• The Tribeless Warrior – www.Wareham.org

Page 9: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

Dual Oscillating Career(s)

• Most C levels today still desire to slide from last employment situation to next of same or greater opportunity

• For many this is not real• Next opportunity via project assignments as interim

exec’s or consultants• Move from career management to career(s)

management• Project work and employment is the framework

Page 10: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

Dual Oscillating Career(s)

• Fundamental question – career(s) management• Career management – do I want to work for a company or be a

consultant• Career(s) management – will I make enough money in project

work

• Consultants paid more than permanent employees• Bureau of Labor Statistics data indicates fastest growing

area of interim work is managerial/executive• 98-2001 executive temporary positions grew 227%• Tatum’s business model is thriving

• Adecco survey suggests 72% of people in temporary assignments find next full time jobs at same company

Page 11: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

Dual Oscillating Career(s)

• Mastering the skills necessary for dual oscillation• Affiliation needs

• Employment – team loyalty, valued member of winning team• Project – affiliation is counterproductive.

• Independence/objectivity• Know when you are done• Talk about separating – gets you invited back!

• Mastery of content• Employment – move from doing work to managing others

• Leaving behind technical mastery• Project assignments may require technical skills• Advice – stay sharp technically

Page 12: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

Dual Oscillating Career(s)

• Relationship Management• Employment – screened limited outside contact• Project – Outside contact is life blood• Successful dual oscillation requires lots of outside contact and

networking• First day on new employment assignment – have a outside

lunch!• Become a driven networker• Keep the network warm

Page 13: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

Dual Oscillating Career(s)

• Mastery of dual oscillating careers is the closest thing to job security most execs will know in the 21st Century

• From work by Laurence J. Stybel & Maryanne Peabody

Page 14: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

Success in Dual Oscillation

• Understand affiliation needs differences – employment vs. project

• Keep both leadership/managerial and technical skills sharp

• Develop and maintain outside relationships – be a dedicated networker

• Build your network year after year, keep it warm

Page 15: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

New Assignments – Creating Impact and Fit

• First impressions are everything• The honeymoon is over and never was• Do your homework

• The industry• Goals of company and senior management• Organizational norms, culture, history• Get a mandate – What is the homerun they are hoping you will

hit.

• Learn your predecessors strategies and priorities• What was working, what wasn’t

Page 16: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

New Assignments – Con’t

• Develop good working relationships• Failed new execs almost always have poor working relationships• Usually poor relationships drive fatal poor performance not the

reverse

• Effective relationships• Begin with listening• Reduce fear• Build trust• Meet with key stakeholders

Page 17: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

New Assignments – Con’t

• Each subordinate one on one• Learn what they think is expected• Get feel for their skills, desires, and fears• What will make us more successful• Take notes – act interested

• In meetings• Ask more that tell• Share your background and goals• Soft pedal your views – too early to be specific• Know all are hungry to know where we are headed• Being too closed mouthed fosters distrust

Page 18: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

What is Tatum CFO/CIO?

• Tatum is the largest professional services firm in the US of Financial and Technology leadership executives in the US.

• We work through two separate firms, Tatum CFO Partners, LLP and Tatum CIO Partners, LLP

Page 19: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

The Tatum Partnerships

• Largest national professional CFO and CIO firms• 400+ highly experienced CFOs and CIOs• All service providers are limited partners • Typical partner profile: 25+ years of experience• Practices in 30 U.S. cities• Limited brick and mortar• Growing rapidly... by 2004:

-- Practices in 35 U.S. cities

-- 400+ CFO partners

-- 70+ CIO partners

Page 20: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

Tatum CFO & CIO GrowthTatum CFO & CIO Growth= Tatum CFO= Tatum CFO

= Tatum CIO= Tatum CIO

4/01 4 34

DateDate OfficesOffices PartnersPartners

DateDate Offices PartnersOffices Partners

CFOCFO

CIOCIO

1/04 30 340

1/96 1 10

1/04 8 64

Page 21: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

Business Model Drivers

• CFO Tenure is shortening• The average CFO Tenure is now 28

Months• CEO’s view their “job” as a project,

average tenure is 24 months• CIO Tenure is 22 months• Dual Oscillating Career(s)

Page 22: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

Three Service Models

• ‘Permanent’ Finance or Technology Executive – W-2• Interim or Part Time CFO or CIO – W-2 or 1099 • Provide executive leadership to specific financial and /

or technology management projects or service as a director.

Page 23: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

The Tatum Value Proposition

• Proven expertise is available immediately.

• The risks -- and fixed costs -- normally associated with the traditional hiring model are virtually eliminated.

• Contractual arrangements are highly flexible (interim or open-ended; full or part time, employed or contracted; etc.) and are typically cancelable with 30-days notice.

• Partner compensation can reflect unique circumstances.

• The full Intellectual Capital of the firm is available to any client.

Page 24: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

Marketing / Sales Channels

• Over 80% of new business is from referrals• Major referral sources:

• Accounting Firms• Law Firms• Private Equity Firms• VC Firms• Banks and other Lenders• Investment Bankers• Insurance brokers• IT Vendors• Other Trusted Advisors & Service Providers to CEO’s

Page 25: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

Private Equity Firms – Demanding Buyers

• Over 150 recently completed or current private equity portfolio company assignments• Koch Ventures• Texas Pacific• GE Capital• Weiss, Peck and Greer• Heritage Capital• TriVest Capital• Chase Capital• Westar Capital

Page 26: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

Retained Executive Search – Traditional Channel

• 15 Partners presented by Retained Executive Search firms to their clients in a recent month

• Phoenix Partner placed by search firm as a Tatum Partner and Regional CFO of a $2.3 Billion revenue region in a $20 Billion public company – relocating to Dallas

• Retained Executive Search is becoming an important channel for Tatum Partners

Page 27: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

About Our Clients

• Over 100 industries are represented.• The size of business ranges from start-ups to major multi-

national corporations.• The major concentration of activity is in emerging growth and

middle market sectors with recent success in Billion+$ companies.

• 20% of clients are venture capital funded• 10% of clients are public companies.• 60% of clients employ the partner permanently as CFO/CIO;

40% engage the partner on a project-specific basis.

Page 28: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

Our Competition

• The traditional hire• CEO’s misunderstanding that we cost

more

• Not a competitor: Retained Executive Search• Tatum Partners are now presented as

permanent employment candidates by large national Retained Search Firms

Page 29: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

Accumulate and Transfer Knowledge

• Intellectual Capital Organization (CFO/CIO Brain Trust)• Knowledge• Experience• Contacts• Leveraged with technology (PartnerLink - Virtual Private

Network)• Current Trends

Page 30: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

Recent Examples of Intellectual Capital Exchange

• Biotech Venture Capital Sources• Bridge Financing – Fast• Minimizing costs in M&A transactions • Due Diligence on VCs-terms• Managing Options within the Capital Structure• Accounting Software Selection• Sales Tax in E-Commerce

Page 31: Peter Rugg Managing Partner Tatum Partners February 26, 2004 Trends in Executive Employment Could You Be A Successful Interim Executive?

Summary

• Executive employment outlook is improving• The positive change may not be visible in Philadelphia• Look at your prospects for long term average

compensation associated with career management vs career(s) management – Dual Oscillating Careers

• Follow recruiting tips• Work very hard on your campaign in transition and keep

your network warm when you are employed or doing project work