Did things get a little tight for you as well?
Is it official? Is the “Great Recession” over? Should we be launching new executive leadership hiring initiatives now? Are we sure? When will we be sure?
No, I don’t know either. But at some point this year, or early next, the answer will be a resounding “yes.” And a good many industrial sectors in North America will start innovating, investing, growing and profiting again. But only if they have the right executive leaders aboard, doing the right things, in the right places, at the right time. And there’s the potential problem. The recession of 2008/2009 changed expectations, motivations and loyalties for many of your existing executives, and those you’ll want to recruit in the future. The “old normal” is no more and it’s been replaced by a “new normal” – the new realities of executive life – which will demand that you revisit how your recruit, reward and retain your senior and mid-level executive teams.
What’s Changed During the Last Two Years?
For better or worse, a large number of recession-weary corporations simply failed to express their love and appreciation to the leaders who were quite literally saving their hides during the downturn. These formerly-loyal executives will be among the first to head for the exits. They’ll be looking for a new place to call home, a company which can demonstrate to them that it will do what’s necessary to develop, engage and retain - and yes, pay – them. According to one recent national survey, as many as 30% of executives currently employed are actively looking for positions outside their organizations right now. And almost half are at least thinking about leaving their present jobs. This shock will be sudden, unanticipated (well, except for the fact that I told you here) and coming to your organization soon.
A great number of “Baby Boomers” delayed their retirement, or deferred changing to a more leisurely lifestyle of fewer work hours and more free time, because of major savings and investment losses they incurred during the last two years. As I write this the Dow Index has broken through the 11,000 mark, and investment experts are predicting sustained investment gains for at least the duration of 2010. These Boomer executives will breathe a sigh of relief, exercise their stock options and say adios sooner than you probably suspected. Sunny days ahead for them, but maybe not so great for you.
Many of the “in transition” executives whose resumes will continue to fill your Outlook™ inbox, like Manna falling from heaven, are already well past their expiration date. This scarcity among plenty scenario exists because the companies which previously employed these executives did not invest in training and developing them, or encouraging them to build career skills with which they could continue to create corporate value. Or maybe, they weren’t making the grade to begin with, and it took a recession for their employers to finally do something about it. Translation: either way, most of these folks don’t have the requisite skill set and talent to build sustainable value for you either.
What Now, Then?
Let’s focus on recruiting. If your “Plan A” for 2010 and beyond is to move ahead doing the things you had always been doing to recruit top-flight executive talent, I suggest you consider a back-up game plan. Let’s call it “Plan B.”
First, smile, and consider that your competitor may have screwed up even worse than you did. OK, maybe you didn’t screw up all that much. But I can’t tell you how many times during the last 18 months I’ve heard stories of a senior executive rallying her troops with the highly motivational and inspiring battle cry “Just be glad you’re one of the few we decided to keep on the payroll around this place.” So at least keep that mindset clearly in front of you as you examine some ideas for creating a “Plan B.”
“Plan B” Ideas
- Turn your competitors’ mistakes to your advantage. There indeed are exceptions to every rule and there’s always an exception for why someone might be an executive “in transition” (see above). Voluntary departures, particularly from your competitor companies, may have the potential to become attractive executive hires for you. Put together an intelligence network and do some sleuthing. Figure out why they left, turn it around, and make it a selling point when you go after these individuals. A common concern I’m hearing is that many companies simply did not communicate effectively about belt-tightening measures. This had the effect of blindsiding mid-level leaders to the point where they unintentionally misinformed and misled their rank-and-file, and lost “face” and trust with these team members. Demonstrate how this will never happen as long as you’re in charge and you’ll win their commitment.
- Do even more to become the employment brand of choice. Start thinking about your prospective executive candidates as you would of potential customers for your products and services. Customers have unique feelings and attitudes about what they buy from whom. Chances are very strong you spend tremendous marketing resources figuring this out. Do the same kind of analysis for the executives you want to hire. Explore why they choose to work where they currently do. Assess and define what they would find in your organization that would make you a potentially attractive company to work for – for them. Translate this information into a message that is in turn appealing and unique to each individual you want to recruit (no batch mass-marketing here; this is tailored one-piece, just-in-time communication flow). Hint: strong leadership is something which most executives and line workers absolutely crave. Find a way to communicate that this is part of the foundation which underlies your corporate culture. You’ll attract the world-class winners you seek.
- Plan for the Expected. Visualize for the Unanticipated. It’s hard to maneuver a decelerating aircraft carrier even if you prepare to dock well in advance. But just think how incredibly demanding it must be to turn one around on a dime. Similarly, preparing an executive recruiting and succession plan is difficult enough in a stable and orderly business environment. Now imagine reacting to an out-of-the blue marketing threat from a major competitor, or responding to a newly discovered technological innovation, or perhaps a particularly attractive acquisition opportunity. It’s only with deeply concentrated forethought and almost prescient insight that any organization could possibly hope to be thoroughly prepared for such scenarios on a moment’s notice. And there are very few SWOT oracles around anymore these days.
But visualizing such unanticipated events, and building “executive talent supply chains” or pipelines around them, is a strategic investment which makes a lot of sense for the market leaders of tomorrow. Become just such a strategic talent thinker. Create virtual “Dream Teams” for existing and anticipated leadership roles within all of today’s major revenue-generating business units, as well as those with the potential to eventually supersede them. Fill the pipeline with names and dossiers of “A-players” who will be eager to take your phone call on the day your CEO comes to you and says: “I want you to ramp up a critical recruiting effort for this deeply hush-hush business venture I’ve been covertly negotiating for months. Let’s get started now!”
And you’ll be ready…
That’s the way I see it. Adam Zak
