Executive search projects must stand up to regular business metrics like Return On Investment (ROI).

Those of us who are involved daily in the management of a business know that every investment must be measured by the returns it produces for all the stakeholders in a business – this includes every executive search project . Too often managers view the acquisition of staff as a simple process of expansion.

In fact, the acquisition of key players through an executive search is an investment like any other which must have a demonstrative Return On Investment which clearly justifies the effort and costs involved.

Executive Search

We encourage clients to measure ROI for all of our executive search projects, because it’s the simplest way for them to justify their investment in us.  Interestingly, we have shown incredible returns when together we work in tandem with our clients to characterize, identify, and focus on hiring the correct individual.

A very clear example of this is a client that tripled its market valuation in 14 months once the appropriate leadership team was in place. Before adding these new players, there was a strong management team that simply did not have ALL the skills and experience required to successfully achieve an exist through acquisition.  Perry-Martel recruited the missing talent the business needed to grow partnerships, launch new products, and reposition the company.  The HR Director at the firm was critical to the project’s success because she understood the ‘skills gaps’ of the personalities involved and how to best approach the change required with each of them to accommodate the new hires.

The results were outstanding.

For talent acquisition costs of less than $250,000 – for multip0le hires – the investors saw a return of over $45 million in divestiture proceeds. That’s a 180:1 ratio of return to investment made on the executive search projects.

With our help other businesses across North America have increased annual sales by factors of anywhere between 3oo% – 500%  following an executive search for key personnel.   The resulting profit increases were even larger on a percentage basis and in several examples, swung dramatically from loss to respectable profit. The key was the addition of vital sales talent and leadership through the effective utilization of executive search best practices .

To achieve these kind of results you need to work with an executive search firm who understand that your organizational structure creates your business opportunities and will work with you until you are successful.  Executive search projects are rarely filled correctly within 30 days – the ROI doesn’t come form the compressed time-frame of the search but rather, the outcomes affected by the key executive hired.

Your executive search firm should aim to do more than fill in a box on your organization chart — they should create ‘value chains’ between you and your senior staff which will positively impact both your top line growth and bottom line profit.  That’s how you produce real ROI every time.