SPECIAL REPORT
'Greatest economic challenge'
Obama sets sights on economy - vows to confront global financial crisis
NEW YORK (CNNMoney.com) -- President-elect Barack Obama said Friday that the United States is "facing the greatest economic challenge of our lifetime."
The economy ranked as the top concern among voters. The issue...Jobs.
Layoffs and hiring freezes announced by Companies in the broader economy can ripple throughout the Staffing Industry by causing management to cut back on their costs by "making do" with less staff, and this can make it harder for these companies to maintain market share, fueling the ongoing decline in revenues and profits.
Given the weak labor market, only the most skilled, talented and motivated employees will uncover and leverage opportunities to contribute. The economy may be weak, but it is not without prospects.
Staffing Industry employers might be well served by taking a hard look at the capabilities of their employees and how they are deployed. To preserve a place in the market and prosper for longer term benefit, only the best and brightest should be "on the team," so to speak, in revenue generating assignments.
Tolerating mediocrity is risky. Finding talent is difficult with the unemployment rate increasing. As the numbers of candidates on the market increases it becomes increasingly difficult to “separate the wheat from the chaff” and choose the people that are of high quality from a group of mixed quality.
Does it make sense then to continue to employ the services of a search firm to find talent for your organization? Consider that a professional executive search firm is in constant contact with candidates. This “constant contact” is with “passive” candidates who, when facing economic instability, are more likely to entertain a new opportunity if presented by a known, trusted advisor.
The bottom line, great people are hard to find in even the best “employer's market” circumstances, and only great people are a good investment when resources are dear. An investment in a search fee pays dividends when a new employee not only joins your organization, but contributes with the high level of skill, talent and character commonly found with employed “passive” candidates who “fly under your radar.”
We can help make an investment in finding and hiring talent produce sustaining, material results. Recognizing that in times like these, cost is a factor, we are offering cost-savings options to initiate the search for top talent.
1. Stretch Your Budget with Extended Payment Terms
Have the option to make that critical hire in the near-term and spread payment over time. This "layaway" plan allows you to manage the impact on your budget and begin to realize a return on the investment in talent before making the full investment. Pay in 3-equal payments after the start date: 10-days, 45-days and 90-days.
Extended payment terms do not apply with any other discounts.
2. Take advantage of our Search Sale
Make a hire and receive 25% off the search fee. Even in a challenging economic market, customer-facing, revenue-generating and leadership talent are essential. If you have to make that one great hire, make it at a deep discount.
25% off applies only with standard payment terms of net 10-days.
3. Choose the Best of Both Time & Money
Focus on your core business and let us find you a top performer. Take a 15% discount off the search fee, pay only half the fee 10-days after the start and hold on to the balance for 60-days. Manage your cash and benefit from revenue-producing productivity.
Direct Search Alliance is a Search and Talent Consultancy specializing in the Staffing, Professional Services and Outsourcing Industries. I invite you to visit our website and blog to learn more about our company. Click the links below to download online brochures.
Friday, November 28, 2008
Market Conditions Change - Good Advice Doesn't
Sunday, November 16, 2008
The upside of recession
Instead of cutting back and cowering, why not see it as an opportunity?
COMMENTARY
By G. Michael Maddock and Raphael Louis Vitón
BusinessWeek.com
Tues., March. 18, 2008
Pop quiz, hot shot: What do MTV, Trader Joe's, and the iPod have in common? Yes, of course, they're all now ubiquitous and make our lives much more agreeable.
But to us, the most interesting thing about all three is that these great brands were born during recessions. (Trader Joe's: 1958; MTV: 1981; iPod: 2001, if you are scoring at home.)
And therein lies a point everyone seems to be forgetting in the midst of the current economic slowdown. If handled correctly, a downturn can be a good thing for your company. It can give you the opportunity — and the funds — to innovate and get a substantial leg up on the competition. But only if handled correctly.
It is never going to happen if your company — or your department — goes into the recession saying, "We have to tighten our proverbial belts; let's cut spending 22.73% across the board." People are going to be demoralized. And even worse, that is what most firms are doing, and you are never going to gain a competitive edge doing the same thing as everyone else.
A catalyst for innovation
Cutting across the board is the coward's way of dealing with a downturn. It assures that no one is going to yell — how could anyone possibly object to sharing the pain equally — and it gives the timid a built-in excuse to fail. ("Gee, I know no one liked our new product, but they slashed our budget 22.73% right before launch, so, it wasn't my fault.")
But suppose you use the recession not as an excuse or a reason for hiding under your desk but rather as a catalyst for innovation? Instead of cutting everything by 22.73%, why not see the downturn as a chance to whack 90% (or the whole darn thing) out of stuff that isn't working well?
Cutting off funding to your laggards would free up a lot of money to back the one, or possibly two, big ideas you have been working on, ideas that have a chance to become breakthrough brands. If you want to be less aggressive, you could place more resources behind the existing ideas/programs/products that are already working well.
A two-pronged approach
Two key assumptions are necessary to make this possible: First, you should already have in a place a solid strategy, one that has identified your company's competitive advantage, so you know where to place your relatively big bets. If you don't have a sound strategy, you are at a huge disadvantage. And two, it assumes you have the intestinal fortitude to react to the recession in a way that is not like everyone else.
It is never going to happen if your company — or your department — goes into the recession saying, "We have to tighten our proverbial belts; let's cut spending 22.73% across the board." People are going to be demoralized. And even worse, that is what most firms are doing, and you are never going to gain a competitive edge doing the same thing as everyone else.
If you are the chief executive officer, you can make this gutsy call on your own — assuming, of course, you get the board to go along. The rest of us probably need to take a two-pronged approach.
First, when the word comes down from on high that you need to belt-tighten, go through the usual drill. Explain you probably can fly everyone in for a meeting three times a year instead of four, and why you can get by with 12 people in the department as opposed to 13.
Increase advertising while others cut back
But then go to your boss, and say, "Instead of dealing with the need to cut like everyone else, why don't we use these hard times as an opportunity," and then outline how you plan to create an MTV, a Trader Joe's, or an iPod of your own, complete with an aggressive launch timeline to ensure it is firmly established in the marketplace when the recession ends.
As Harvard Business School professor John A. Quelch noted recently, "It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times."
Time to attack
You can also point out that what you are advocating will leave your company perfectly positioned once the recession ends. While your competition is withdrawing, you will be charging ahead, taking market share. Maybe neither argument will carry the day. But if it does nothing else, this kind of innovative thinking gives the boss another reason to keep you around, no small thing when the phrase "reducing headcount" is in the air.
Recessions by definition are temporary. Great companies and great executives don't abandon their growth strategies in light of temporary setbacks. They attack aggressively, while everyone else is pulling back.
G. Michael Maddock is founding partner, and Raphael Louis Vitón is president, of Maddock Douglas, a company that invents, brands, and markets products "for companies driven by innovation."
Copyright © 2008 The McGraw-Hill Companies Inc. All rights reserved.
COMMENTARY
By G. Michael Maddock and Raphael Louis Vitón
BusinessWeek.com
Tues., March. 18, 2008
Pop quiz, hot shot: What do MTV, Trader Joe's, and the iPod have in common? Yes, of course, they're all now ubiquitous and make our lives much more agreeable.
But to us, the most interesting thing about all three is that these great brands were born during recessions. (Trader Joe's: 1958; MTV: 1981; iPod: 2001, if you are scoring at home.)
And therein lies a point everyone seems to be forgetting in the midst of the current economic slowdown. If handled correctly, a downturn can be a good thing for your company. It can give you the opportunity — and the funds — to innovate and get a substantial leg up on the competition. But only if handled correctly.
It is never going to happen if your company — or your department — goes into the recession saying, "We have to tighten our proverbial belts; let's cut spending 22.73% across the board." People are going to be demoralized. And even worse, that is what most firms are doing, and you are never going to gain a competitive edge doing the same thing as everyone else.
A catalyst for innovation
Cutting across the board is the coward's way of dealing with a downturn. It assures that no one is going to yell — how could anyone possibly object to sharing the pain equally — and it gives the timid a built-in excuse to fail. ("Gee, I know no one liked our new product, but they slashed our budget 22.73% right before launch, so, it wasn't my fault.")
But suppose you use the recession not as an excuse or a reason for hiding under your desk but rather as a catalyst for innovation? Instead of cutting everything by 22.73%, why not see the downturn as a chance to whack 90% (or the whole darn thing) out of stuff that isn't working well?
Cutting off funding to your laggards would free up a lot of money to back the one, or possibly two, big ideas you have been working on, ideas that have a chance to become breakthrough brands. If you want to be less aggressive, you could place more resources behind the existing ideas/programs/products that are already working well.
A two-pronged approach
Two key assumptions are necessary to make this possible: First, you should already have in a place a solid strategy, one that has identified your company's competitive advantage, so you know where to place your relatively big bets. If you don't have a sound strategy, you are at a huge disadvantage. And two, it assumes you have the intestinal fortitude to react to the recession in a way that is not like everyone else.
It is never going to happen if your company — or your department — goes into the recession saying, "We have to tighten our proverbial belts; let's cut spending 22.73% across the board." People are going to be demoralized. And even worse, that is what most firms are doing, and you are never going to gain a competitive edge doing the same thing as everyone else.
If you are the chief executive officer, you can make this gutsy call on your own — assuming, of course, you get the board to go along. The rest of us probably need to take a two-pronged approach.
First, when the word comes down from on high that you need to belt-tighten, go through the usual drill. Explain you probably can fly everyone in for a meeting three times a year instead of four, and why you can get by with 12 people in the department as opposed to 13.
Increase advertising while others cut back
But then go to your boss, and say, "Instead of dealing with the need to cut like everyone else, why don't we use these hard times as an opportunity," and then outline how you plan to create an MTV, a Trader Joe's, or an iPod of your own, complete with an aggressive launch timeline to ensure it is firmly established in the marketplace when the recession ends.
As Harvard Business School professor John A. Quelch noted recently, "It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times."
Time to attack
You can also point out that what you are advocating will leave your company perfectly positioned once the recession ends. While your competition is withdrawing, you will be charging ahead, taking market share. Maybe neither argument will carry the day. But if it does nothing else, this kind of innovative thinking gives the boss another reason to keep you around, no small thing when the phrase "reducing headcount" is in the air.
Recessions by definition are temporary. Great companies and great executives don't abandon their growth strategies in light of temporary setbacks. They attack aggressively, while everyone else is pulling back.
G. Michael Maddock is founding partner, and Raphael Louis Vitón is president, of Maddock Douglas, a company that invents, brands, and markets products "for companies driven by innovation."
Copyright © 2008 The McGraw-Hill Companies Inc. All rights reserved.
Tuesday, November 4, 2008
Barack Obama Becomes the 44th U.S. President
The economy ranked as the top concern among voters who cast their ballot for Barack Obama, elected President Tuesday night.
The issue...Jobs.
A total of $100,032,604 was spent to broadcast 52 ads related to the presidential campaign on the issue of jobs from April 3 to Oct. 27, 2008, according to statistics compiled by Campaign Media Analysis Group, which tracks political advertising expenditures.
Layoffs and hiring freezes announced by Companies in the broader economy can ripple throughout the Staffing Industry by causing management to cut back on their costs by "making do" with less staff, and this can make it harder for these companies to maintain market share, fueling the ongoing decline in revenues and profits.
Given the weak labor market, only the most skilled, talented and motivated employees will uncover, discover and leverage opportunities to contribute. The economy may be weak, but it is not without prospects.
Staffing Industry employers might be well served by taking a hard look at the capabilities of their employees and how they are deployed. To preserve a place in the market and prosper for longer term benefit, only the best and brightest should be "on the team," so to speak, in revenue generating assignments. Tolerating mediocrity is risky. Finding talent is difficult with the unemployment rate increasing.
We can help make an investment in finding and hiring talent produce sustaining, material results.
Direct Search Alliance was established by Staffing Industry leaders to provide an alliance between America's best employers and executive, management and professional people already successful in their role and area of specialization.
Our organizational mission is to represent, serve and inspire talented individuals to nurture and propel business performance.
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