| What Executives & Tom Cruise will have in common: an Agent.
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| By Angel Mehta, Managing Director, Sterling-Hoffman Management Consultants
In September 2002, an ex-Heidrick & Struggles Partner that INC Magazine once called 'The MatchMaker', launched Canal Street Talent. The firm was built on the concept that business executives would soon feel the need to retain 'Talent Agents' in the same way as entertainment stars and pro-athletes have done for years. Amazingly, while the post-bubble market has forced most search firms to either downsize or close shop entirely, Canal Street Talent has been quietly expanding - even earning a feature spot on CNBC earlier this month. Angel Mehta met with Canal Street's founder & CEO Jeff Hyman to find out more about why so many happily employed executives are signing on for his counsel. Where did the concept for Canal Street's business model come from? It just made sense. Top performing executives have a lot in common - just in terms of career needs -with athletes and entertainers…the very best people don't have the bandwidth to worry about their careers because they're busy making their companies successful. How is a Talent Agent' or a Talent Management firm' any different from a regular outplacement firm or a job-seeker's advisory service? For one thing, outplacement firms are typically retained by an employer to assist executives in transition…usually those being laid off. It's the same thing with job-seeker's advisory services…they're designed for the executive who is actively looking for a job…all they do is mass mail campaigns. Canal Street Talent is totally different…we're retained by executives that are currently working and highly-successful in their career, but don't want the headache of having to keep track of opportunities that might represent the next step up. Our clients know how important it is to be strategic about managing their careers, but they're too busy to do it well. Plus, confidentiality is a major concern. We help star players identify and build their personal brands, so this is truly about long-term career management. So do you have certain criteria that an executive needs to meet before your firm will accept them as a client? Definitely. Our clients are at the top of the game…we might agree to represent about 10% of the executives we speak with. Again, these are successful people who don't need help actually finding a job. But the reality is, they can't be as good at managing their own careers as we can - because that's what we focus on. Our clients are Directors, Vice Presidents, and C-Level types… the minimum compensation is $150K annually - below that, we won't even do a meeting. What do you promise to deliver in return? The specifics depend on objectives that we come up with together. Some of what we do is giving them the "tough love" that nobody else will. But the bottom line is, we'll make them drop-dead successful or drop dead trying. We'll book them into speaking engagements, identify new opportunities, position them with search firms and venture partners…a number of things that are absolutely necessary, but that the best executives have no time to do themselves. What role do you play in a world class executive's life that an executive search firm doesn't? Are you essentially competing with me?! Would I have to negotiate with you to close one of the executives you represent for my client? Executive search firms serve a valuable purpose…We think of them as allies, not competitors. Headhunters are retained by an employer to help fill a vacancy…We represent the talent that can fill that vacancy - so it's a totally different dynamic. Two real estate agents work together to consummate a transaction…it's the same thing here. We also invest time to package and position our client, benchmark their compensation, coach them…and scout out the next role. Search firms are only interested in an executive up until the point a client says 'NO' - after that, you fall off a search firm's radar. And yes, we absolutely get involved in negotiating compensation packages - but only to the extent our clients wants us to be. How do you handle scenarios where two of your clients are qualified for the same position that you happen to have the inside scoop on? The chances of Canal Street Talent representing two identical executives who have the same background and are interested in the same opportunity are pretty low. When it does happen, just as a Hollywood agent puts his most-appropriate client forward first, we do the same. Talent Management seems to make sense, but it seems like a brand new concept. Why is it still such a new thing? What are the drivers that you think are going to push it mainstream? The recruiting and executive career world have changed dramatically in the past five years. The average tenure with a company has decreased to the point where a senior executive will likely not be with his current employer two years from now. Plus, the typical MBA grad will work for something like 10 companies over a career…that never used to happen. Compensation structures have become increasingly complex and require an outside perspective. But overall, I think it's just that the concept of 'personal brand management' is becoming mandatory. How much does it cost the Executive to retain your services? Are they required to commit to you for a certain amount of time? Just as in professional sports and Hollywood, clients pay a percentage of their compensation, between 4 and 10 percent based upon what particular services they choose. There is no time commitment…if we don't deliver, the client is free to walk away. That's never happened, by the way. What advice would you have for enterprise software executives that are currently looking a new gig? Are there any common mistakes you see being made? The first thing to remember is that its twice as hard to find a new role if you're unemployed, so do everything possible to hang on to your current position even if its on a consulting basis. Companies always prefer those who are currently working….Perception is reality. It also gives you a lot more negotiating leverage. Other frequent mistakes…not having a crisp "elevator speech" …résumés that are more than two pages and violate the "six second skim" rule. A lot of execs will just send a resume cold without even engaging the hiring manager in a conversation…just basic mistakes like that - it's almost scary how these absolutely awesome business executives can make so many basic mistakes when it comes to their own careers. In short, an executive looking for something new needs to stop and think "How do I solve the problem and make life easier for the recruiter or hiring manager?" I get a lot of VP-level candidates that ask me why we won't consider them for CEO positions. The only good answer I have is that our clients want someone who's done it before. What advice would you have for VP's that are looking to earn their first CEO role? How do they do it? The sheer supply and demand right now means there are literally thousands of previous CEO's available for hire. This makes it very difficult for first-time CEO's to win the role. So, part of my answer is "patience…your time will come and you'll be called up to the majors" In the meantime…hone your skills, and build your Rolodex so that when the right CEO role becomes available, your name appears on the shortlist. For those that are impatient, your challenge is to convince the board of directors that your passion puts you above other seasoned candidates. Remember: Avis is second and tries harder. Also, you're less expensive than a seasoned CEO, and that's particularly important in early-stage companies. If all else fails, offer to serve for three months as Interim CEO until the right leader is identified, as long as the board agrees that you'll at least be considered. Then, knock the cover off the ball and show them you're a future Carly Fiorina, Scott Cook, or John Chambers. Prior to founding Canal Street Talent, Jeffrey Hyman was formerly Managing Partner with Heidrick & Struggles, one of the world's leading executive search firms. Previously, he was Co-Founder, President and Chief Executive Officer of Career Central (later named Cruel World, Inc.), an internet-based executive search firm that San Jose Mercury News ranked as the Bay Area's #5 fastest-growing company. He holds an MBA from The Kellogg School and a BS from The Wharton School. You can reach Jeff Hyman via email: jeff@canalstreettalent.com. Angel Mehta is a Managing Director with Sterling-Hoffman, a retained executive search firm focused on enterprise software. He can be reached via email: amehta@sterlinghoffman.net. |
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