Market Update: The impact of a down market on executive placements.

Jessica Carter — Wed, 13 Sep 2023 14:33:52 +0000

by Jackson Ross, Partner

Frequently, I am asked how a down market impacts a search firm’s client engagement and the executive-level talent in the market for their next role. The answer is not what most expect, and in many cases, serves as motivation for business leaders. For clarity’s sake, it should be noted that we operate in a pure healthcare environment and work almost exclusively within the investor-backed landscape.

When the tide is out, markets are soft, slow, and scared.

Make no mistake, the tide is out, and just like a beach vacation, things are not as much fun during a low tide. Intertwined economic and geopolitical crises, not to mention stifled debt markets, clearly have a portion of investment capital sitting on the sidelines in wait-and-see mode. But while the net new investment capital is patiently waiting for a turn, the existing assets are looking inward and making strategic moves and investments to prepare for a tide that seems poised to shift in 2024.

Housekeeping

In the world of executive search, this equates to an influx of finance, human resources, and technology engagements. Housekeeping, in a sense. What leadership roles need to be sourced or improved upon so that the business is prepared and ready? How can these down-market moves better equip a CEO to see over the top of the business and not only prepare for a rising tide but also line-of-sight to the barriers that could impact scale?

This work, while rewarding, requires a higher level of client due diligence and an intimate understanding of their current landscape and vision/needs for the future. Inward health checks are never a negative, and in this case, help define the success of the search. We help many clients do just that in a down market.

Preparing for Better Days

Conversely, a soft market creates challenges for high-end operating executives looking for their next challenge. With cash kept close to the vest and human capital being inward-focused, there is a limited market opportunity for CEO, COO, or CRO positions. The individuals who are in the market for these positions must remain patient and focused on businesses that fit their previous experiences and preferred segments. The good news is the volume of opportunity that is ready to execute a search but waiting for the rising tide to kick off. For businesses needing to recruit leaders in the future, the talent pool will be deep with high-end executive operators.

Growing Talent on the Sidelines

In the past two weeks alone, we have observed multiple businesses that cannot afford to wait any longer and are moving forward with CEO and COO roles. This level of activity, coupled with a deep talent pool, will most certainly create healthy client-candidate alignment, and possibly help be a catalyst to a rising tide.

Take the Step

Buffkin / Baker is a partner-led team of executive search professionals who deliver outstanding outcomes by recruiting today’s top talent who will impact your organization. With a process based on deep sector expertise, we have the industry knowledge and understanding needed to provide our clients with qualified leaders.

At Buffkin / Baker, we view our clients as an investment and customize a plan to fit the unique circumstances of private equity firms. Our process is proven and successful in finding the right talent and it is optimized to eliminate the human capital concerns of private equity firms.

The post Market Update: The impact of a down market on executive placements. appeared first on Buffkin Baker Website.

Finding a Signal, In a World Full of Noise

Jessica Carter — Thu, 03 Mar 2022 19:18:57 +0000

Innovation at the Intersection of People and Purpose

by Jackson Ross, Associate Partner

I have spent the last 20 years give or take, in healthcare-related roles. More specifically, healthcare capital in the medical device arena for large international corporations, but some entrepreneurial and startup as well. Bear with me…

Regardless of employer or industry, I have always been perplexed by the consistent churn of executive and leadership turnover. All too often, we celebrate leadership, who invest tremendous time and capital in developing a new vision or go-to-market, scripting the next chapter, only to see them leave the role much too early for the script to unfold. Promoted, terminated, poached, acquired, shareholder unrest, it doesn’t matter, and the list is long.

Bottom line, the frequency of executive churn, creates unrest with teams, customers, and investors and has created a marketplace that forces us to de-value relationships with the very people and partners that support company growth and goal attainment. Not to mention the stress human capital teams are under to retain and replace talent.

The events of the past year have afforded us time to reflect on professional purpose, and what would a re-calibration of purpose look like? For me, this question resulted in a transformational exit from healthcare and alignment with Buffkin / Baker, a retained executive search firm that incorporates the people, process, and history to directly impact the very issues that I address here. The very issues that the Buffkin / Baker team has a passion to solve for.

As artificial intelligence, software applications, and supply chain processes continue to reduce the frequency and importance of person-to-person interaction, I see a desperate need for companies to align with their executive leadership, on a deeper and more strategic level. And therein, lies my purpose. Deeper client / candidate conversation and transparency will yield better employer / employee alignment and relationships, across the board.

Recruiter, search, contingent, retained, talent, human capital are all terms used to describe an industry that we all are familiar with and have had experience with, often bad experiences. The reality, most models within the search industry do not promote relationship building and implicit trust. Most are forced to operate at high volume to generate the results needed to drive revenue targets and customer intimacy falls victim.

With so many high-powered executives making the same decision I did, to re-calibrate purpose, retaining a trusted and experienced search partner on the front end, will ultimately deliver an executive leader that is aligned with your people, business, and culture, not just the job requirements or the pay scale. Extensive due diligence and relational transparency are the very foundation that enables Buffkin / Baker to deliver world-class results and build upon our firm’s reputation.

I have spent most of my professional career positioning life-saving innovations that detect disease earlier and faster and truly prolong human life. My move to Buffkin / Baker and the search industry has uncovered a similar and surprising need for innovation. And while this innovation will not save or prolong life, it will save customer relationships and help our clients hit their financial targets. Today’s executive search clients need a partner that can innovate within and throughout the search process. A true and authentic understanding of client needs, culture, and growth. Professional communication and transparency with candidates, timely feedback, response, and end-to-end accountability. The innovation needed by this industry is basic and simple… professionalism and courtesy from all angles.

A longtime colleague and mentor, recently shared that most professionals struggle to answer the one question that has the potential to rocket ship their careers.

The question, what problem are you solving?

The team at Buffkin / Baker and our ability to effectively answer this very question build lasting relationships, implicit trust and generates rocket ship results for our clients… And perhaps most importantly, helps to eliminate the executive churn.

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