TRADEOFFS IN CANDIDATE SELECTION

(Exhibit 1)

SUCCESSION

Promotion from Inside

RECRUITMENT

Attraction from Outside
PROCESS

Candidate

Identification

 Usually simple. Choice obvious. Process could be too narrow or myopic for desired results. Not difficult to assemble and compare data using modern research techniques. Decisions on screening may be complex.

Assessment

 Based on analysis of well-known style and accomplishment. Can usually be done with confidence and relative ease. On the basis of review of compiled data, interviewing, and background inquires. Can be difficult and time consuming.

Attraction

 Usually presents no problem because it involves a simple promotion with possible relocation. Constitutes the most delicate and demanding task in a creative selection effort.

Integration

 Adjustment of new manager to cultural context is nearly automatic, but adaptation to responsibilities at a higher level can be a problem. May be difficult to assimilate the new manager into the culture. Performance level should present a lesser problem if the recruitment stressed, is needed for relevant experience.
TRADEOFFS

Promotion from Within

Attraction from Outside

Risks

 Tend to be greater, but will be spread over future years. Tend to be more visible and concentrated in the first year or two.

Organizational

Impact

 Frequently, there is lower potential for creative innovation, new vigor. Possible discontinuity. Generally higher organizational anxiety. Possible turbulent transition.

Advantages

 Stability; relatively smooth transition. Opportunity for healthy change in both form and substance.

TYPES OF SEARCH ASSIGNMENTS

1. Growth Creates New Position
  • First time situation typically for an emerging/successful organization.
  • Hiring manager frequently emotionally invovled; relinquish direct experience responsiblity and team members.
  • Consensus of management usually dictated in selection.
  • Sensitive to both cultural and experience requirements.
2. Reorganization Creates New Position
  • Division of responsibility is involved with accountabilities and decision making process of incumbent affected.
  • Change in span of control is desired to deal with gowth/downsizing problems (too rapid or too slow).
3. Change Agent
  • Calls for "take-charge" person with bias for action; requires a subtle balance between experience and personality.
  • Initiated by management decision that calls for profound change that cannot come from within.
  • Motivation may include: unsatisfactory profits and/or growth, new strategy or organization tune-up.
4. Replacement of incumbent
  • Must sort out true causes of failure and identify future sucess factors.
  • Typically highly sensitive and confidential.
  • Specification frequently has idealistic orientation.
5. Affirmative Action
  • Typically a delicate situation requiring confidentiality and discretion
6. Maintain Status Quo
  • Find a replacement "clone" to continue managing with same style; requires matching of candidate personality trait to predecessor.
7. Technology Transfer
  • "Piracy" search that seeks a culturally compatible candidate with imbedded technical, industry or strategic knowledge.
  • Often involves product or organizational refurbishment of R&D or Marketing.
8. Organization Credibility
  • Motivation is to strengthen and "dress-up" management team.
  • Candidate must work effectively with existing management yet subtly contribute to dramatic change and have proper pedigree.
9. Chief Executive of Existing Organization
  • Search for leader to either maintain status quo or be a change agent.
  • Involvement of predecessor is very useful to successful transfer of leadership.
  • Publicly held vs. privately owned companies have very different consideration.
10. Entrepreneurial New Opportunity (CEO or Officer)
  • Perceived by most candidates as high risk, combining broad opportunity and fuzzy focus with limited real control, therefore chemistry is crucial.

BYRON LEONARD INTERNATIONAL, INC.
Telephone: (805)373-7500 or Fax: (805)373-5531
99 Long Court Suite 201 - Thousand Oaks, CA 91360