The recent liberalisation of the economy and the removal of many trade barriers has attracted considerable new investment and allowed a hitherto slumbering economic giant to throw off its rusting shackles of state control. The prospects for this economic renaissance are both exciting and challenging as India is now expected to become the sixth largest economy in the world in the next ten years. With a growing number of multinationals expanding into this market and the development of many indigenous companies, the growth of a relatively new industry — executive search — signifies a certain economic maturity.

With India’s burgeoning role in international business, the free and effective movement of management skills is vital to allow companies to take full advantage of a pool of well-educated technical and professional managers. Recognising the increasing need for management expertise and vision, several executive search firms have opened offices in India.

But what is executive search, how does it work and what contribution can it make to develop local and international business in India? Although well established in the West, it is still a relatively new concept in India, where management recruitment has traditionally been through personal contacts or advertising. The value of search is that the consultant can provide a client with exceptional knowledge of the managerial market within the industry, as well as a sophisticated network of relevant industry contacts to identify suitable candidates for each assignment. Search involves working with clients in long-term partnerships to understand not only their business and organisation but their inner culture and thinking as well. This means that a top search consultant can advise on strategic hiring of chief executives as well as the implementation of major expansion programmes.

In an environment dominated by recruitment agencies and advertised job positions, executive search is shrouded in mystique largely because of its strong confidential element, and also because it is a new resource in India. For companies looking for senior managers in an increasingly tight executive market, executive search may be the only way to secure the right mix of skills, experience and compatibility. As companies expand into new markets and globalisation becomes the key strategic focus, the need to identify executives with international experience and the ability to build market share in emerging economies is even more pressing.

Executive search is based on one main premise which differentiates it from regular recruitment agencies. The search firm acts for the client who is seeking the right senior manager for a specific role, or, for example, a team of managers to setup a cross- border product function. The cultural dynamics are critical and are often the key differentiator in whether or not a candidate will be successful in a new role.

Simply put, executive search is a means of finding the highest calibre managers in the market. Confidentiality is paramount. It is simply not possible or appropriate for companies always to advertise, use word of mouth or go to a recruitment agency whose objectives are to secure job positions for the candidates on their books. Executive search is oriented towards the client’s needs and then finding the candidates best suited to those requirements.

There is a particular process involved in ‘retained search’ which has been created to protect the interests of the client. Retained search is the use of a consultant to find and secure the best candidate for one or more positions, with a fee structure that reflects the relationship between the client and the search firm. Using a high-quality executive search firm ensures that the client will benefit from confidentiality, a commitment to finding the right manager whatever the challenges, specialist knowledge of the industry and how to secure the best players in a timescale tailored to the client’s objectives. The search firm first agrees the details of the position and the kind of candidates the organisation needs in terms of skills, experience, personal qualities and corporate culture. The brief is refined and submitted to the client for approval.

The search process begins with research across different industries and markets using an in-house data base, market information, internal brainstorming and the search firm’s own network of offices. The firm then interviews the candidates on its ‘longlist’, evaluates them and puts forward a shortlist to the client with evaluation notes and recommendations. Once the client has selected its choice of candidate, the search firm will run extensive reference and qualification checks, seek to secure the candidate and advise in the negotiation process. The search firm carries out a follow-up service to ensure the success of the candidate and satisfaction of the client.

The growth of executive search in emerging markets reflects the growing maturity of these economies and the need for senior level expertise. This need will increase dramatically in India in the next few years as Indian companies experience further indigenous and international growth. Family-run companies are beginning to look outside for management talent in their plans for succession and boards of directors will also need to look for advice from a pool of non-executive directors with international experience.

Nripjit Singh (Noni) Chawla

This article originally appeared in Business India - 10 March 1997