"Why is the Search to find the President of our Company Taking so Long?" - 01/22/20 Edition
Stephen Says Column
Dear Stephen:
I'm on the board of a publicly traded company that manufactures interior furnishings products. Without getting into too much detail I have a question, you of all people should have an answer for. Our company has retained a search practice similar to yours. It’s a big, global organization and a very expensive search (we decided not to use your company, sorry.) The search has been going on for almost a year. Here’s the problem we are having and why I am writing to ask you for your advice:
Our board wants a candidate who is familiar with the interior products industry and our customers. That could mean furniture, floor covering, lighting, ceiling tiles or building products. Any related product will do. The headhunter has been introducing us to executives with strong sales backgrounds and most with P&L responsibility. They are definitely in the right industry but they are lacking true manufacturing experience. Our company after all, is a manufacturer, and we are looking for someone who can spearhead this responsibility along with sales. Is that too much to ask? We have a great CEO, with a vision but he needs someone who really has the proven skill set to get things done, not the overvalued sales executives masquerading as presidents that we keep interviewing. What can we do about this? Is this a real problem? Or do we just have the wrong search firm?
Signed,
High and Dry with No Candidates
Dear High and Dry:
I am sure you have the right search firm, the problem may be the way that you have de- scribed to them what exactly you are looking for. The time frame sounds about right — this problem is not unique. Many presidents of large companies, in any industry, can be glorified sales execu- tives. However, if you're a true manufacturer of an interior furnishings or architectural product (and not just doing light assembly) the president should understand manufactur- ing. This means they need to understand the equipment used, how it works, the cost of goods, additional knowledge such as quality control and often even experience in labor and union negotiations.
For many years, presidents of companies in the interior products industry were ba- sically overrated sales ex- ecutives or even the owners themselves bearing the title of president, all with the singular focus of generating revenue. While it is often true furni- ture manufacturers will want revenue-generating execu- tives, it is still not uncommon
for companies that do only light assembly or manufacture overseas to hire executives that understand sales and distribution but have no true manufacturing experience. This isn't an issue that can be attributed to the headhunter or anybody really, it is just a fact of our industry. It is very possible the people you are in- terviewing aren't underquali- fied, but rather only qualified to lead in a very specific subset of manufacturers.
A search at this level in today's economy with low-unem- ployment, combined with the issues I just laid out, can easily take a year or so. The problem is the board of directors, (or, owner, if privately owned) needs to clearly define to the recruiter they are specifi- cally looking for someone who understands hands-on manu- facturing of whatever it is you make. That could mean carpet- ing, wall coverings, furniture, lighting, walls, etc. It's not the fault of the candidate if they've been given the title president yet their major responsibility is in generating revenue. One's title certainly does not always equate to true experience or
responsibility in any industry. But this is more common than not in the interior products industry.
If the recruiter is not famil- iar with the industry you're recruiting in, they may be executing a Linkedln search by only using the title as op- posed to understanding what the core responsibilities of the position may be. This is why you need to make sure they have a good understanding of what it is you manufacture; let the recruiter see your factory and what you need the presi- dent to do. Be patient with the search process and if neces- sary, go back to the recruiter to re-explain the qualifications you require. There is no reason your recruiter should be send- ing you candidates who lack the key experience you need.
I hope this helps answer your question. Jobs with the title president may entail different experiences for different com- panies. Title alone does not necessarily live up to what we might imagine. Always have one eye trained beyond the Linkedln or the business card.
Stephen
You can send your workplace questions to Stephen at: StephenSays@bellow.press
Questions selected to be answered, will appear in this column. Please use the Subject: Stephen Says for all emails. Stephen Viscusi is a bestselling author, television personality, and CEO of The Viscusi Group, global executive recruiters located in New York. Follow Stephen on Twitter @stephenviscusi, Like Stephen on Facebook, and follow him on LinkedIn.
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