Fulcrum Methodology

This page outlines the methodology we use when we conduct executive search projects.  This methodology evolved as we learned to best support private companies and family businesses.  As you will see, this is a careful step by step process that gives an owner without great experience in recruiting the support to successfully navigate each step of the process and greatly increase the chance that the person hired will have the right skills and will fit within the culture of the company.  The reader familiar with the services typically provided by a search firm will note the greater support in defining the job and during the first year the person is employeed to ensure success.  Also of note is the 100% success guarantee.   This overview has the following sections.

  1. Establish hiring criteria and create selection committee
  2. Find Candidates
  3. Selection
  4. Negotiation
  5. Follow Up
  6. Fees

Establish hiring criteria and create selection committee

The owners will usually want to hire an established person with industry leading skills and reputation.  That person should be willing to follow the lead and align with the owners but also want to make a mark on the organization.  The skills and fit need to be just right for this to work.

To initiate the process, I recommend the establishment of a small selection committee that includes advisors and key employees.  The role of this group is to provide input to hiring criteria and to the selection process.  This helps the owners ensure that all nuances of the project are considered and creates buy-in that supports both the process and the success of the newcomer.  The ultimate decision remains, of course, with the owners.

The move the process along, I interview members of the selection committee as part of putting together a well thought out hiring specification.  By doing this, I gain valuable insight on current strengths of the organization, new skills needed, and other desirable competencies that would serve to strengthen the organization when the right person is hired.  I also obtain insight regarding the culture of the company and the characteristics the right person would need in order to fit in and be successful.  Generally, some issues about the owner’s management style are uncovered, so I am in a position to provide feedback to the owners about concerns and steps they might take to support the success of the new hire.

All of this data will be discussed with the owners and will form the basis for selection

Find Candidates

This step is a multi-pronged process that includes identifying and calling luminaries, leaders in the field and target companies for referrals and using the internet for research and posting.   Naturally, this is the most time consuming step in the process but it is done thoroughly and with the upmost professionalism.

I then personally interview applicants (first on the phone, then in person) and from this, develop a short list of candidates who I believe fit the specification.  At this juncture, I also perform preliminary reference checks and have test profiles available as part of the management presentation package.

From this point forward, I engage in frequent dialogue with the client/committee before the finalists are presented so I am confident the candidates are on target.  However, I remain open to the possibility that the hiring specification needs to be rethought or that somehow the candidates don’t quite measure up.  Sometimes, after the management group has had some time to more deeply focus on the position, they come to somewhat different conclusions – which then have to be taken into account in the overall process.

My overall philosophy is one of caution.  I would rather pass if there are doubts on a candidate.  The mistake of hiring the wrong person is always worse than that of passing on someone who should be hired.    Every step in these projects is a learning experience.

Selection

In the selection phase of the process, I generally proceed as follows:

  1. First candidate meetings with the owners to determine if they want to eliminate some of the candidates. In this step, the objective is to wind up with two or three candidates for the selection committee.  I like to attend or facilitate these first meetings so I get a first hand view of the chemistry as well as an understanding of how the owner’s see the strengths and weaknesses or the candidates along with the issues they identify.
  2. The selection committee is then prepared for interviews:  they receive resumes, references, test results and my observations/comments.  I prepare them to probe general qualifications, specific issues of concern and to present the company and the opportunity professionally to the candidates.
  3. After interviews are completed, the selection committee gives feedback to the owners in a review meeting.
  4. The owner’s decide next steps, including whether to hire, which candidate, and general terms of the hire.
  5. Lastly, the details of the offer are determined.  This will include role and responsibilities, title, base compensation, incentives, starting timeframe, and goals/objective for the first year.  This is an important step because it outlines expectations.

Negotiation

This is a tricky part of the process because at this stage both parties want to close the deal.  However, it is essential that expectations about the role of the person and compensation for performance are aligned to launch a successful relationship.  These issues are discussed throughout the selection process but take on a new reality when the parties must sign a document of agreement.

After the creation of the employment offer, typically I will extend the offer on behalf of the client to ensure that all issues are explored openly.  This also allow me to be the “foil” for the company should the initial discussions take a negative turn (i.e., I can be the “scapegoat” if that is warranted, rather than having the Company look bad in the eyes of the candidate.)

If red flags are raised in negotiations, I surface and explore them rather than try to bury them to make a deal.   Generally any issues are resolved and expectations are aligned.  If they can’t be, it is best for both parties to move on.  If all goes well, the candidate signed the acceptance letter and I report back to the Company that they have a new employee, etc.

Follow Up

Some friction is inevitable as the relationship develops and the parties learn to work together.

Generally the causes of such friction include:

  1. Concerns felt by legacy staff (and sometimes shared with the owners) as existing staff forges a relationship with a new executive (who might view them differently than the owners), and
  2. The new executive wanting to make changes that make the owners or current employees uncomfortable.

In order to facilitate the transition, I often sponsor and conduct quarterly (or more often if necessary) “how goes it” meetings where these issues are discussed.  These meetings include the owner and the new executive and can include any of the owner’s important advisors who might help give perspective about relevant issues.

To prepare for the meetings, I interview/update one on one, summarize findings, set the agenda, and then facilitate.

Fees

I give a 100% success guarantee during the critical first year of employment.  I believe this guarantee is one a responsible recruiter should make as it shows my commitment to successful outcomes.

The fee amount depends upon the level of the position and the difficulty in filling it.   However, the structure of the fees reflects the commitment I make to clients.  My compensation at the point of hire totals 60% of the cost of the project.  The balance is paid over the first year as the relationship develops.

If for any reason the person leaves or is let go, I replace without addition fee, and use the learning’s developed during the process to enhance success in the next round.