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Jim Lyons Joins ITBPartners

ITB Partners is pleased to announce that Jim Lyons has joined our team.  Jim has had over 30 years of leadership experience with major restaurant and franchise brands. Jim’s expertise in the area of franchising, restaurant operations leadership, real estate and development has helped franchisers, franchisees and restaurant operators meet their operational, development and financial goals.  Read more…

ITB Partners is a diverse team of experienced leaders, project managers, and discipline experts with an established history of accomplishment, business relationships and networks. We have direct experience successfully working with public companies, Private Equity Groups, start-ups,  acquisitions and turnarounds across a number of industries – specifically restaurant, hospitality, services and retail segments.  

For more information contact Jim Weber at:  Jim.Weber@ITBPartners.com or by telephone at:  770-354-2817

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Ace Your Next Interview



Over the past few weeks I had had some interesting conversations with employers who told me of poor experiences with Executive Recruiters.  One situation was with a current client and the other a long-time friend and networking contact who I have not worked for.  In the former case the hiring manager (no longer with the client) hired a candidate who did not rise to my “top three.”  He lasted less than a year and I replaced him pursuant to my agreement.  In fact, the replacement candidate was among the first group of candidates I presented and an all around more suitable hire.  The original hiring manager was not a part of the decision process for the replacement and this candidate is working out just fine.
In the second conversation I was able to ask my friend a few questions about the company’s selection process.  They have no Human Resources Department so the traditional HR functions are spread between the other Department Heads, if at all.   They do not have job descriptions so it was not clear as to how the hiring managers made their selections.  No one has had any formal interviewing skills training.  They do meet as a group to de-brief and arrive at a consensus for each hire.  This is a major positive which can serve as a base to build a better selection process if they chose to do so.  

Most managers I have talked with over the years have not had any formal training in recruiting and selection.  While working for one of my Fortune 500 employers prior to entering the Executive Search field I did receive formal training which I have found to be invaluable.  The biggest problem with the untrained interviewer is that they talk too much.  If the ideal interview is 20% interviewer talking and 80% interviewee talking, they operate in reverse.   Then at the end of the interview they will say that they did not learn anything about the candidate.  Not surprising if they are doing most of the talking.    So, the question is; how do you ace an interview with an untrained interviewer?   The answer, of course, is to help him interview you.  
Fundamentally, the candidate must gain some control over the interview to ensure a favorable result.  To help accomplish this I recommend that my candidates prepare a one page, key accomplishments hand-out which they can present to the interviewer at the beginning of the discussion.  This is a bullet point list of up to ten prioritized accomplishments, in big bold type, that best demonstrates your ability to perform the job in question.  Of course the interviewer has your resume, but this hand-out can become the agenda for the discussion, guiding his questions.   Trust me, they will appreciate the additional information and will be impressed by your preparation for the interview.
In subsequent interviews I have found that a hand-out which summarizes your understanding of the employer’s need is very useful to close the deal.   Personally, I find the following format to be very powerful:
1.     Yesterday:
·        
2.     Today:
·        
3.     Tomorrow:
·        
This is a great way to demonstrate that you understand where the company has been; where they are today; and where they want to go.   If you are a little off base the interviewer will point that out and give you something more to talk about.   If you are right on target, which you should be if you have been listening and doing your homework, you will totally impress the interviewer with you grasp of their needs.  The assumption will be that if you understand their situation, you will be effective in the job.  
So, if you want to do well with trained or untrained interviewers, help them interview you by the use of visual aids to focus the conversation.

Thank you for visiting my blog.
Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so please leave a comment.

Jim Weber, President
New Century Dynamics Executive Search
www.newcenturydynamics.com
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Conclusion: Pre-Planning Alignment; The Right Way to Start a New Job


Day two of our consulting project began with a check-in regarding the prior-day’s activities.  The consensus from the floor was that the process held great value for John’s team and they were grateful to have the opportunity to share their thoughts in a non-threatening environment.   Also included were introductions of new participants representing HR, Operations, MarCom, Public Relations, and Financial Planning and Analysis.  Since John’s team could not operate in a vacuum, these relationships are key to the success of the team.  They were included to ensure that they understood the Department’s objectives, the needs to execute those objectives, and generally, to make them a part of the team.  Additionally, their feedback and suggestions during the process proved to be valuable.
After the check-in, Stan provided the set-up to finalizing the team identity.  Stan introduced the concept of building a numeric value for the objective into their Logo and tagline.  Our experience has been that doing so would help keep their focus on the primary objective.  Then the small groups went back to work.  

When the time was up, each team leader presented their work.  The results were impressive.  Their thoughts were much more focused and relevant.  It was evident that there was a lot of talent and creativity in the room.   By the end of the presentations it was clear that they were close to a consensus.  It was time to turn their work over to the professionals and to move on to the next phase of the program, developing the plan.
Stan’s setup up for the Department’s final assignment included six buckets for consideration:  Staffing/Resources; Leadership and Strategy; Culture; Tools and Processes; Opportunities; and Results.  Each group was responsible for brainstorming each of those buckets, listing each idea on a single 3” by 5” Post-it ™ note.  When the allotted time had expired, group leaders placed their ideas in the corresponding buckets, (flip charts placed around the room).  Stan spoke to each bucket list, putting emphasis on the number of common thoughts in each category.  The results were striking.    It was revealing to note the high volume of thoughts around Staffing/Resources, Leadership & Strategy, and Culture, all three categories being closely related.  Tools & Processes, Opportunities, and Results had less than half the volume of Post-it ™ notes.  My takeaway was that the group was sending a clear message that John’s leadership was vital.  They seemed to believe that the Department’s objectives were realistic and attainable so long as they had a Champion leading the way.  I am certain that John viewed this as very favorable.
To wrap up the meeting, Stan recapped the process and talked about next steps.  John summarized his take-away to ensure that the Department knew that he “got it.”  He made a commitment to immediately address some of the more pressing issues and to factor remaining issues into the plan.  As a side note, the next week John gave Stan additional work that included facilitating the Quarterly follow-up meetings, and a few coaching assignments.  
The result of this assignment was a win-win-win.  For a new Executive it is wise to bring in an objective third-party to facilitate team alignment as we come without biases that could taint the results.  Additionally, it is more realistic for the Department personnel to speak freely in front of outsiders who are not in a position to influence their careers.  If you are looking to develop alignment and buy-in, a non-threatening environment is a good place to start.

Thank you for visiting my blog.
Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so please leave a comment.

Jim Weber, President
New Century Dynamics Executive Search
www.newcenturydynamics.com
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Pre-Planning Alignment: The Right Way to Start a New Job


Last month John called on our group to help him kick off the annual department planning and budgeting process.  John is an Executive well-known to me and my colleagues.  I placed him in a C-level position about 10 years ago, and my colleagues have worked with him since.   He recently landed an important job with a well-established brand, which represents an excellent career opportunity.  Achieving success will be a difficult slough, however.  The Brand has suffered from a succession of owners, leaders, and strategies.   Now under new direction, John and his team are responsible for critical strategies to rebuild the brand.  My colleague Stan got the lead on the project with me in support. 
John envisioned a full department off-site meeting, so Stan built the appropriate agenda.   Stan’s goal was to help John build alignment and ownership around the department’s four key objectives.  The agenda included a heavy dose of fun to encourage participation and creativity by the attendees.  By the end of the off-site John wanted to ensure that there was enthusiasm for the plan; that the team took ownership; and that the stage was set for an effective change-management effort.
The first exercise Stan facilitated, after the appropriate set-up, was what he calls “deep dive introductions”.  It was an ice-breaker, ‘getting to know you’ exercise.  Everyone had the opportunity to introduce themselves, speak to their job function, indicate their expectations from the meeting, and to tell something personal the group may not have known.   This included John, Stan, and me.  They also provided their tenure with the company and within the industry segment.  The whole point of the exercise was to begin building trust in a non-threatening environment.  John and Stan distributed prizes for the best idea, the most interesting disclosure, and the lamest personal disclosure.  This was a great way to begin the meeting.
It was interesting to learn that the average tenure with the company was 6.5 years, with 15 years in the segment.  15 people had less than one year tenure with the company.  On balance, the average team member had not seen a stable, consistent direction from this employer.  Clearly, the culture had been battered.
The next exercise was a mini-assimilation.  Whereas the first exercise as entirely personal, this was a group exercise.  Each group was defined by table, six team members per table.  The exercise included some administrative functions like appointing a scribe and a spokesman.  Their  task was to determine 1) what they wanted to know about John, and 2) what they wanted John to know about their team.  After that task, John told his team what he thought they should know about him.  It was another good exchange that reinforced the team’s desire for leadership and direction.  They told John that they were ready and eager to execute but craved a champion to lead them.  
After lunch, the final exercise of the day, another small group task, was to begin the process of establishing an identity for the Department.  The goal was to establish a name, a tag-line, and a logo for John’s team.  The small groups put a lot of energy into this activity, developing some very creative ideas.  It was a good start, but more work was required.  The evening was a planned event for the team which Stan and I respectfully declined to attend.
The first day was a big success.  The Department took a measure of John’s commitment to them and their needs.  John began to identify his leaders and problem children.  Stan and I found some points where John needed some coaching.  We were very optimistic about the prospects for the next day.   To be continued…

Thank you for visiting my blog.
Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so please leave a comment.

Jim Weber, President
New Century Dynamics Executive Search
www.newcenturydynamics.com
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LEADING YOUR NONPROFIT – almost – LIKE A BUSINESS:



 By David Shavzin

Bringing in some of these “business” concepts and experiences, married to a mission, can be extremely powerful. When I discuss working on growth with a nonprofit organization, I inevitably get a response something like this: “It sounds good but that only works in a business. “We are a charity/agency/government department/professional association and we are not like a business.” ReadMore…

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WORKING FOR PRIVATE EQUITY GROUPS: WHAT YOU SHOULD KNOW


As I have written so much about my work with Private Equity Groups (PEGs) and their portfolio companies it makes sense to explain what they do and how they operate.  PEGs are reshaping American Industry across all segments.  They are significant to the job market.   It is important to understand how they manage their selection process and what they look for in new hires.  If you are not currently working in a PEG Portfolio Company, you likely will before your career comes to a close.
So, what is a Private Equity Group?  A PEG secures its funding from high net-worth Individuals to make investments in undervalued small to mid-cap companies.  They will generally take a controlling position in the target company up to 100% ownership.  Their goal is to improve results in a three to five year period allowing them to sell at double their investment, more or less.   They may also invest in companies with significant growth potential but having difficulty raising capital.   PEGs have been known to invest in companies whose owner wants to cash out, or to buy out other investors.   Their fundamental investment goal is to find companies that can benefit from their expertise and generate a significant capital gain after a defined holding period.   They are looking to grow revenues, improve productivity (read systems and processes) and to eliminate waste.
Types of PEG Transactions
·        Turnarounds
·        Public to Private
·        Divestitures (Carve-Outs)
·        Family Business Exit Strategy
·        Funding emerging brands needing capital
If the target company wasn’t a fast-paced, high-energy environment prior to the PEG involvement, it most certainly will be after.  This is true especially early on as the two groups learn to work together.   The level of communication and thirst for data by the PEG is intense.   Redundant, unnecessary, or functions better handled by a third party are eliminated resulting in a more stream-lined organization.  The remaining team members are expected to pick up the slack.   Accountability is expected.  If the CEO cannot meet his objectives he will be replaced.  So, when looking for people to hire a premium is placed on people who are self-sufficient, self-reliant, and can tolerate the stress of a high-intensity organization.   Is this really that much different from most major brands?
The PEGs I have worked with are directly involved in hiring the CEO as one would expect, as well as the CFO.  Depending on the nature of the transaction, the CEO may or may not stay on after the investment however, the CFO is usually replaced.   This is not uncommon for most acquisitions as the new owner wants “their people” in key positions.   The first task for the new CFO is usually to get control of cash flow and to install a KPI Dashboard.  Other hires are the responsibility of the Executive Team with the customary curtesy interviews by the PEG Executive responsible for oversight of the company. 
Considering the selection process for PEG Portfolio Company job openings, experience is the key.  They do not have time or interest in on-the-job –training.  They are looking for people who have solid educational credentials, whose careers have been launched working for established and respected brands.  Industry segment experience is the base-line.   If the job is in a small to mid-cap brand then experience in a small to mid-cap company is required.   There is a preference for people whose career is still ascending.  Sure, there may be a preference for someone who is on the younger side and still hungry, however, experience and success trumps age.   A number of short tenured situations are a big red flag.  As with any hiring authority there may be certain quirks to their ideal selection process.  One client I worked with disqualified people who had stepped out of the corporate world to try their hand in an entrepreneurial venture,   whereas other clients valued that kind of experience.   So, in most ways, a PEG’s selection process is not very different from any other well-managed company, except for the specific experience they may require.

Important Notice: 

I just landed a Search Contract to find a Sr. Director IT for a restaurant company based in the Ohio Valley Region. The position reports to the CFO with base salary to $160K. If you know anyone who might be interested in this opportunity, please send them my way.   JimWeber@NewCenturyDynamics.com
Thank you for visiting my blog.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so please leave a comment.

Jim Weber, President
New Century Dynamics Executive Search
www.newcenturydynamics.com
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Beg For Customer Complaints

– Grow Your Business – Maximize Value for Exit Planning

by David Shavzin

It’s More Than a Three-Question Survey!

• You want to grow your business!
• You want your business to run more efficiently!
• You want new customers!
• You want to keep all of your current customers!

What if there was one way to do all four things?

You spend so much time looking for new customers – advertising, marketing, selling, networking… But what about a focus on keeping your current customers? Are you too focused on new customers walking in the front door, while current customers are walking out the back door?   Read more…

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“Time is short! Find me a Specialist!”


“Time is short!  Find me a Specialist!”  Those may not be the exact words, but that is most definitely the message.   My clients have specific needs that must be addressed and do not have time for a generalist to learn how to attack the problem.  They want people who have been there and done it.  Most of my clients are small to mid-cap companies. Many are owned by Private Equity Groups, (PEGs).  The rest are a mix of privately held emerging brands and more established niche players.  Virtually all are working to make their brand relevant in a very dynamic and challenging business environment.  Time is of the essence, so their planning horizon is short.   Certainly, shorter than for larger, Fortune 500-class companies. 
Most recently, my clients have been facing the following situations:
  • Change of ownership
  • PEG buy/sell transaction
  • Pre-IPO
  • Public to Private
  • Chapter 11
  • Debt Covenant Issues
  • Turnarounds
  • Start-up
  • Joint Ventures
  • Installation of Management Accountability Systems
  • New CEO
  • Major Systems Upgrades
Other searches have required experience in franchising, consumer packaged goods, and experience in family-owned businesses.  Industry-specific experience is almost always required.  I have even had searches requiring the candidate to move to remote, less than desirable locations.  This parallels the demand for our consulting practice, but not as much.
Most people know that tenures have decreased significantly.  Three to five years in position is not uncommon for C-level executives.  Three years or less is common for other senior-level executives. Much of this is related to heightened levels of accountability due to intense competition.  This level of senior-level turnover can affect the entire management team.  Some of it, of course, is due to a change of ownership which often means a new management team, or changes for key executives.   As the planning horizon shortens, the enterprise focus is on the most best ways to enhance competitiveness.   Companies in the small to mid-cap sector need people who can make an immediate impact.  Generalists requiring a learning curve are eschewed over candidates with more specialized skills and experience.  It has become an ad-hoc world.
The good news is that most of you have lived through the situations listed earlier.  You have been through the break-up of Conglomerates.  You have seen global competitiveness affect your employers.  You have seen employee-led Leveraged Buy-outs.  Without a doubt, you have seen the productivity benefits of technology.   These global changes have resulted in right-sizing; down-sizing; re-engineering; and outsourcing.   You have likely seen several ownership changes, IPO’s, and the public to private transactions, and probably have experience with PEGs.  By now, you have a wealth of experience and skills for specific situations.  Face it, with reference to Peter Drucker, we have been living in turbulent times.
The objective is re-branding oneself as a specialist, but not necessarily one specialty.   If you look back on your career you will find common themes.  You will notice that you have thrived in situations which have been identified in this post.  Those situations can become the themes for your positioning as a Specialist.   The good news is that word-processing programs allow you to have multiple resumes which you can tailor to a given specialty.  It doesn’t mean that you are fabricating a career history.   It means that each version of your resume puts more emphasis on the specialty (read skill-set) you wish to promote. 
Time is short for small to mid-cap employers, especially for PEG Portfolio companies.  They need specialists to help resolve immediate issues.  Become the Specialist they seek for success in your job search or in your freelance career.!
Thank you for visiting my blog.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so please leave a comment.
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MAKE YOURSELF IRRELEVANT – MAXIMIZE VALUE FOR EXIT David Shavzin; Shavzin Associates & ITB Partners



You want to exit at some point, you want to maximize what you get for your business. Exit planning or succession planning, you need to focus on it! A buyer is looking for something as close to a cash machine as possible. And, one that does not depend on keeping you around…more – read the full article

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THE PANEL DISCUSSION


Two weeks ago I was a panelist for a CFO Roundtable luncheon meeting.  Our topic was the general employment situation for CFOs.  I have been a member of this group for a number of years, so I was well acquainted with my host and most of the guests.    This was the first time I had met the two other panelists.  One has been in business for 28 years focused mostly on recruiting for plant-level jobs.  The other is a Partner and Founding Member of a firm focused on academic, not for profit, and some Fortune 500 searches.   It was interesting to have their perspectives and for the most part we were pretty well aligned in our experience.  There were some obvious differences, however, which made for a more interesting discussion. 
The members of this CFO Roundtable Group are primarily employed by small to mid-cap concerns representing most industry segments.  Their employers are PEG portfolio companies, emerging privately financed companies, and some family-owned businesses.  There was no representation from a major public company, educational, or not for profit.  One of the attendees is a recent placement and current client.  Even though the focus of this Panel Discussion was on CFOs, it became evident that the issues for this group are relevant to all senior level executives.
The moderator kept the discussion focused and moving so as to accomplish as much as possible during the lunch hour.  The broad topics were related to the ideal CFO candidate background; employer preferences to hire employed candidates vs. unemployed candidates; age discrimination; cultural fit; current CFO tenure; and the use of LinkedIn during job search.  Undeniably, these areas are of great interest to CFOs currently in job search and for the rest who know they could be in the market at any time.  It is interesting to know that all of these issues are closely interrelated.  A bullet point recap of those topics and findings follows:

  •       A traditional background with experience in Big 4 Public Accounting is still preferred.

  •        Preferred hire is currently employed, ceterus peribus.

  •        LinkedIn is an important tool which may be growing in popularity with major Executive Search Firms.

  •        Tenures are shorter.  The new normal is three to five years.

  •        Cultural fit is very important to both the client and the candidate.

  •        Age is an issue but not in every case

During the Q&A there was a lot of discussion around corporate cultures.   The issue was related to how the recruiter could be helpful in presenting the client culture, and how a candidate could go about learning more about their culture.  The time spent on this topic is understandable as the members of the audience have enough experience to know that ensuring a good cultural fit at the beginning of employment is vital to minimizing the risk of a short tenure situation.   Additionally, many have recent experience in difficult situations which they don’t want to repeat.  We all agreed that helping the candidate, and ourselves, better understand the client’s culture is necessary for all parties concerned.  It is not such an easy task, however, as so many companies are in a state of flux.
My take-away from the meeting, and the theme for my responses is that the recruiting criteria for CFOs in the small to mid-cap segment are highly dependent on the company’s situation.  Employers are looking for specialists to help them with immediate priorities.  When those priorities are met, or at a liquidity event, new priorities are established which may render the CFO expendable.  One would need to build a matrix to catalogue the various attributes required of candidates for each particular situation.  I will explore these issues in greater depth in the coming weeks.
To summarize, employers in the small to mid-cap segment are looking for CFOs to help them with immediate issues.  They are looking for candidates with a traditional accounting track and prefer to hire someone who is currently employed.  This is a preference, not a hard and fast rule.  Tenures are shorter as the need for the particular talent is more specific and because a change of ownership will force the need for a change.   Cultural fit is very important, but age is not as important if the candidate meets the hiring profile.   The point for CFOs and all other C-level Executives is to identify ways that they can position themselves as a specialist.

Thank you for visiting my blog.
Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so please leave a comment.

Jim Weber, President
New Century Dynamics Executive Search
www.newcenturydynamics.com