Throughout my time partnering SMEs, I frequently find our first meeting requires us to take a step back before diving into a briefing discussion.
The instinct is often to jump straight in with what’s required from this person, whether that’s a Finance Director to develop data capture and drive fiscal decisions, an Operations Director to drive productivity and operational efficiencies, or a Sales Director whose strengths sit within the desired market.
Before considering this, you’ll gain far more value if you’ve reflected on the following areas. Don’t and you could end up questioning why the Operations Director you secured 18 months ago hasn’t achieved the expected ROI:
Focus on your end goal, not the current pain
SMEs often hire reactively. They want someone who can stabilise the business or fix an immediate issue.
When hiring at senior level, you can afford to think longer term. Rather than fixing an issue, they will restructure the process, system or department. These changes compound over time, making lasting impact on bottom line, morale of the entire workforce and ensure the longer-term growth plan is possible.
At the very least, ask yourself what success looks like for this role after the initial 12-month period. This will sharpen your thinking and the brief set.
What’s already got you to this point
Essential within small to medium-sized firms is recognising the culture that’s been created, whether this be by chance or design.
Not only in relation to the type of character that would work well with their team and peers in the boardroom, but if you actually want to carry on down the same behavioural path.
Furthermore, you may well want the star Sales Director who has succeeded for a larger competitor, but what’s the capability of the other directors? Would this person quickly become unpopular, drive division, or leave others behind.
And the team they’ll lead. What’s their appetite and aptitude for change?
If you’ve inherited an established leadership team, or one that’s ‘found’ themselves in decision making positions through longevity, have you considered psychometric profiling the team? Understanding the boards strengths and weaknesses prior to drafting a board level recruit is invaluable. Not only to better understand what makes them tick and what would fit in, but to appreciate what behaviours and personality traits are missing.
Over the course of four years, I recruited an Operations Director and Sales Director for a growing manufacturer. Their aim was to grow from £18m to £30m. Due to retirement, the MD came to me with a Finance Director requirement. What had become apparent through this team settling in was the fact that they worked well together, but driving forward with actions was lacking. This, therefore, was central to my assessment for the FD role. Fast forward two years and she’s now become the righthand person to the MD, along with working with the group overseas.
Separate the nice to haves from the non-negotiables
When meeting stakeholders for the first time, this is probably the single most debated area.
Understandably, draft specifications quickly turn into shopping lists, rather than being coherent and prioritised briefs to work and assess against.
Many, let alone SME decision makers, become obsessed with the need for the incoming person to understand building products, their specific product, or market.
Unless you’re hiring a Technical, Sales or commercial MD, sector experience is rarely what separates a good director from a poor one. Change management, digital capability and the ability to lead people are. Insisting on building products experience shrinks your talent pool to a handful of people, most of whom are already inside your competitors.
Throughout the Case Studies on my website, one theme runs true: niche skillsets, product knowledge, and location constraints lead to shallow talent pools.
This is where an assessment scorecard works well, both when drafting your specification and interviewing the shortlist. Prioritising and weighting skills and experience accordingly will give you a much better grasp of how effective a candidate is likely to be.
Several years ago, I recruited a Sales Director for a technical building product manufacturer selling into utility infrastructure. They had not had one before. Listening to the owner, this person was to inherit several team members who were technically very strong. The nub of the requirement was for a person who could build a strategy for growth, lead change and drive accountability across the team. Five years on and not only had the manufacturer hit targets, but the owner was able to exit.
A well thought out plan to how you’re going to secure the best
Whether acquired or owner managed, in my experience, SMEs don’t give much thought to how they’re going to interview shortlists.
Interviews are very much two-way. And to secure the best possible person, you’ve got to be joined up in your approach.
Within an SME building product setting, I often witness ‘likeable’ stakeholders in a genial setting. This will only get you so far.
Ensuring you’re assessing the shortlist in a consistent, well thought out manner (I can help you with this) is key. What are the stages to your interviews? Who’s involved internally and why?
Over the course of 10 years, I’ve recruited all but one of a major doors and windows manufacturer’s board. Although I wouldn’t recommend this for every client, it’s worked effectively for this manufacturer. After a third interview with the overseas head office, the UK board take the preferred candidate out for an evening meal. One director acts as the bad cop to see how the candidate reacts (with a couple of drinks consumed to loosen their tongue). Perfect for finding out the true dynamics at play, prior to sending any offer letter through.
Conversely, any SME needs to put good thought to the message that is conveyed when approaching targeted candidates, together with how you sell the opportunity.
Where could this position lead to? How well thought out and realistic is your five-year ambition? Realistically, could there be share options and, if so, what triggers are there for this to become a reality? How will this be communicated in any contract? In other words, why should a star candidate join your organisation. This needs to be firmed up with your headhunting partner ahead of any approach. Inconsistency leads to nervousness and the loss of good candidates.
Proactively approaching the market rather than relying on adverts and databases
Yes, I’m a headhunter, so you’d expect me to say this!
In seriousness, though, if you’re considering going to market with a senior appointment, that’s designed to change the direction of a department or business, why would you leave securing the role to chance?
For an initial outlay, why wouldn’t you want to approach the passive market – those not on databases, nor actively looking at adverts?
What’s the upshot to your business achieving its ambition and monetary goals? The return on investing in a strong, retained headhunter isn’t in question when it comes to you gaining access to the best candidates, along with working with a recruiter who offers far more than just CVs.
Referring back to my case studies page, all of these candidates were proactively approached by me. None saw an advert. I’ve only had one candidate leave a role within six months of joining over the past 10 years. And, most importantly, the vast majority of these individuals have achieved what was set out from investing in the position.
How did this happen? Through exhaustive research and approach work into a given market. Through sharing intelligence with my clients, so that we make collective, informed decisions on shortlists and who to offer.
If you want guiding through the best approach to securing the optimum candidates in the market, together with help on how to develop your assessment of shortlists, drop me a message to arrange a call – mgoldsmith@mgheadhunting.co.uk
