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 Human capital, more specifically leadership capital, is arguably the most critical ingredient in achieving a sustainable competitive advantage for corporations in today's environment.
Over the past 25 years, as a Partner with Spencer Stuart and Heidrick & Struggles, I have been fortunate to participate in the dramatic growth of the executive search industry. As our profession matured and service offerings moved beyond traditional executive search to include management assessment and related consulting, my personal responsibilities also increased to include P&L accountability for Heidrick & Struggles' global executive search business. As President and COO, I addressed many of the same critical human capital issues faced by our clients and gained a better appreciation for the challenges associated with building the "best team" in the industry. As a board member before and after Heidrick & Struggles' successful public offering, I became immersed in all the issues now challenging public boards in this post Sarbanes-Oxley era.
In today's environment, it is no longer "business as usual" for highly successful companies. The sweeping changes in corporate governance have shown to be long overdue. CEOs and their management teams have weathered difficult economic storms in recent years and now must examine every aspect of corporate strategy to ensure that growth and prosperity can be sustained.
Successful companies are moving away from a transactional approach to human resources management and toward a more strategic leadership capital model in which the senior leadership team works closely with the CEO to align the company's people strategies with its business strategy. Ultimately, competitive advantage boils down to the ability of an organization to attract, retain and develop world class talent. Some of the most important decisions CEOs make today are around people issues. Great companies always start with "who" and not "what." I am reminded that Jack Welch once described General Electric as a "people factory."
In addition to creating leadership development programs that include coaching, mentoring and rigorous performance feedback for high potential managers, successful companies are also using strategic talent sourcing from outside the company by partnering with executive search firms to fill key positions. These companies are continuously looking to attract the "best and brightest" as a key element of an on-going process, not simply an occasional event. This approach raises the bar for talent internally as well. To have a comprehensive "top down" focus on leadership capital development often requires a cultural shift within the management ranks and continuous measurement and follow-up.
At Anderson Partners, we are well prepared to partner with our clients in this strategic effort. Uncompromising commitment to our clients' success is our underlying philosophy of service. Our ability to provide the value-added services which support the leadership capital development strategies of our clients is the hallmark of our firm.
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