6 taboos in EXECUTIVE SEARCH
Recently, my colleague and I had an interesting conversation with the CEO of a multinational technology company. He was a worldly, seasoned manager with many years of experience, and he knew how to ask probing questions. I can't help but share a few thoughts that are often unspoken when working with key executives.
1) Hidden Mission
Sometimes we encounter a client who needs to make significant changes within their company. Talking about expansion is easy—how much, where, in which countries... it's all beautifully laid out. But what if the company has issues with its corporate culture that not only smell bad but are literally rotting? Or what if you need to close two out of five plants and move production to cheaper locations? A new manager must know how to handle this, but it’s hard to paint that picture in the first meeting.
In all such cases, we advise our clients to be brutally open... Do you have problems? Are tough times ahead? Let’s work together to find and select candidates who will see this as a challenge, an experience, and won't be intimidated by it.
2) Conflicts of Interest
This is truly a slippery slope. Our candidates are usually from the competitor's business, with their own connections, experiences, and insider information. They are all professionals, so they try to maintain proper conduct towards both sides, regardless of formal non-compete clauses. But in reality, we are again navigating a gray area. A specific part of the negotiation occurs when the candidate owns managerial options or actual shares in the company they are leaving.
Here, too, we try to help both sides lay their cards on the table and moderate discussions about risks and potential solutions. But this requires real diplomatic talent.
3) Extraordinary Rewards and Bonuses
When a client needs a key manager, they often don’t hesitate to offer unusual rewards or bonuses. A decent car, a company apartment—these are givens in this world. We’re talking, for example, about astronomical bonuses or golden parachutes in companies undergoing restructuring and fighting for every penny. Such matters are not discussed openly within the company, and their disclosure could be problematic. On the other hand, here too, two equal partners are negotiating, and their final agreement reflects the candidate’s value and the company’s needs. Hard work deserves good compensation.
But don’t worry, on such projects, our fee is usually fixed—we don't get a cent from these bonuses. :-)
4) References
The relevance of references has been questionable in my view for a long time. A departing employee has made both good and bad decisions and has pleased and angered many. When verifying references, they are often distorted, either by an effort to avoid "accidentally harming" the candidate or, conversely, by a personal desire to "sabotage" them.
In these cases, we usually recommend looking for relevant measurable factors related to the new task. Want to expand? Whether the candidate succeeded can be seen from public financial statements. Struggling with turnover? Again, it’s easy to supplement market data from the candidate's previous roles. And so on.
5) Diversity in a Hundred Ways
I haven't met anyone who openly says they want a white, heterosexual man in his forties in management. However, preferences usually emerge during conversations... somewhere, they hint that a European wouldn’t fit for expansion into Asian markets, elsewhere they mention they have a "youthful" company culture, or they lament the predominance of purple people with stars on their foreheads in the top leadership and express a desire for a blue-green striped candidate with dots.
Our role is not to judge who fits or doesn’t fit within the company, but we often ground these expectations by stating that if we find 3-4 suitable finalists, both we and the client will be happy. Unfortunately, we don’t have a 3D printer for ideal candidates in our basement.
6) Burnout and Long-Term Stress Consequences
This is a topic that has long been unaddressed in top management. It usually depends on the individual how they maintain work-life balance, a clear head, and a healthy body. Sometimes companies offer coaches, physiotherapists, or other health support, but in the end, the manager is still alone. I meet many people who, at first glance, radiate energy and could move mountains, but eventually admit that they might appreciate a role where they could take a breather. But do you want such a person in your expanding company?
Again and again, I advise both sides to be honest and open even on these issues. Without that, it won’t work.
These are a few of the taboos in the world of executive search. If you have others in mind, feel free to share them, either publicly in the comments or discreetly in messages or emails. I'd be happy to add more over time.
Pavel
P.S. I don’t want to jinx it, but we really take sensitive issues seriously on both sides and encourage openness. I hope that thanks to this, we haven't had any premature departures among the top managers we've placed over the last five years.
P.P.S. If anyone is interested, our guarantee for such candidates is usually 12 months, and we’re not afraid to extend it. We consider a premature departure to be a top manager exiting before two years. After that, it’s usually beyond our ability to influence the internal developments of both sides.
Pavel Plachý is the founder of Flow-r Executive Search. He began his career in business intelligence, working for both Czech and multinational companies in the Czech Republic, Slovakia, and the United Kingdom. He has also held international top management roles, leading teams in three countries with a total of more than 700 employees.
In 2008, he founded his own company focused on finding strategic candidates and, since then, he and his colleagues have been dedicated to executive search. He finds top managers and strategic experts for his clients.
