Care to Vote

Since today is National Voter Registration Day, we wanted to spend a moment emphasizing that voting is a privilege and a responsibility.  As Americans, we look with outrage at many nations around the world where democracy does not exist and the right to vote is absent or a tightly controlled farce.  But how are we doing here in the United States?

We have begun asking many people with whom we interact whether they will vote.  This includes business executives to fast food employees to retired folks.  We are not asking how people are voting (our mothers taught us well), but rather, “Are you voting?”  It is our hope that the people we know – an intelligent, insightful, caring group – are headed to the polls in November. But the responses we are getting range from positive, affirmative responses to downright apathy. Alarmingly, we have found that young people, and many others, seem weary of the political process and have resigned themselves to a “why should I vote – nothing’s going to change” attitude. While we understand this cynicism, and we also feel challenged at times by political wrangling, we want to encourage as many eligible voters to participate in a process that allows us to choose our leaders.

Voting numbers took an upswing in 2008 (approximately 60% of eligible voters participated in that year’s presidential election) but Gallup polls conducted this summer show a drop-off in the numbers of young voters intending to vote this November:

This causes us to reflect on our country’s enviable and noble history, and to reflect on the challenges of the world at large – a world full of countries that don’t allow their citizens a voice. It reminds us of the responsibility we have to be a part of the solution. No one lives in a bubble completely isolated from social and economic issues.  Take a stand, vote, make a difference.

So … Care to vote? … that is the question.  Now what is your answer?

It is our hope that you will exercise your constitutional right to choose the leadership of our country, and encourage others to do so as well.  That’s right, we really can influence the key decisions made by our elected leaders. As for us, we are excited about the upcoming elections and we will be voting.  See you at the polls!

Hit the Nail on the Head

Have you ever seen someone try to drive a nail using something other than a hammer?  Let’s see…the list goes something like this:  rocks, shoe heels, wrenches, sports equipment, books, sticks, etc.

What kind of results occur when you use the wrong or an ineffective tool, as opposed to a hammer?  Well, sometimes you are fortunate enough to get the nail positioned just as you would like.  More often, there is a degree of variance that makes the outcome less than satisfying.  We have all had degrees of success with some of the items listed above, but when we want the job done right, we invariably choose to use the right tool, the one that will produce the best and most consistent outcomes.  You choose the hammer and the tremendous and reliable results it produces.

That’s the way our business works.  Leapfrog Executive Search focuses exclusively on retained search for HR leadership roles.  While we could readily apply our experience to extend to other functional areas, we choose to remain focused on the head of the nail.  Whether it be the Chief HR Officer (CHRO) or other key HR leadership roles, we are the right tool to help your organization achieve the desired outcomes.

We work with organizations of all sizes.  Sometimes a smaller, growing company needs a high impact, executive level CHRO.  Sometimes, it is a large organization seeking the same type of impact on a much greater scale.  And sometimes, it is one of many key HR leadership roles across the different HR disciplines.

When it is time to nail down HR leadership talent, call us…we will help you hit the nail on the head!

2011 Holiday Marketing

Fall has arrived and, in some areas of the country, it appears that winter has gotten an early head start.  Christmas decorations are up and Thanksgiving is just around the corner.  We still think that sequencing takes some getting used to!

Regardless, as we move through the 4th quarter, we want to take the opportunity to wish you and your loved ones restful and fulfilling Thanksgiving and Christmas seasons.  We all go through the challenges and changes, and ups and downs that take place during the course of a calendar year.  It is often this time of the year that causes us to pause and give thanks.

At Leapfrog, we are thankful for the opportunities that have come our way.  Combined, they have resulted in a very good year.  Equally important are the relationships that have been formed or enhanced over the course of the year.  While we measure our year-end results at the bottom line, it would be an unsatisfying experience for us if that were the singular measure of success.

As we conclude this year and look ahead to 2012, we do so with heartfelt appreciation for the opportunity to have interacted w/ so many of you and the hope that we will do so frequently in the years ahead.

Business 2010

With a stabilizing economy that is expected to continue its recovery throughout 2010 and beyond, organizations are primed to make critical talent decisions.  While a projected jobless recovery may be right on target, key executive hires have taken place at an accelerated rate in the 4th quarter and will continue into 2010.

Among eye catching headlines that speak to “Business 2010,” a Reuters report stated “sales of newly built single-family U.S. homes in October rose more than expected to their highest level in a year, pointing to a stabilizing housing market after a three-year slump,” the Wall Street Journal says that “hedge funds are poised to register their best investment returns for a decade,” Peter Cardillo, Chief Market Economist of Avalon Funds, was quoted as saying in a November 29th Business Week article that “all the economic data point to continued growth,” and a November 11 Deloitte research report “reveals surveyed executives are more inclined to believe the worst of the economic crisis has passed” by a margin of more than four to one.

The anticipation of a healthier economy speaks to heightened demand for our services.  We do one thing and we do it well…helping you hire the best Human Resources executive relative to your needs.  To best illustrate why we succeed at unprecedented levels, take a look at the following performance factors:

• Productivity – Like you, our internal talent is critical.  Most of our team members have significant experience with larger, brand name retained search firms.  In concert with traditional methodologies like market research, our in-house talent and high value relationships with HR vendor companies, HR leaders, and other functional business leaders uniquely enable us to penetrate the marketplace.

• Value – We deliver superior value relative to the investment made when we are retained.  Why pay more when we have proven our ability to outperform our competitors?  We welcome the opportunity for our clients to speak with you on our behalf.

• Delivery – Around this time of the year, arriving late and delivering the wrong goods does not go over well.  In fact, it never does.  We have consistently demonstrated our ability to work closely with our clients to get assignments all wrapped up in timely fashion, and in a way that will deliver years of outstanding satisfaction.

We are excited about “Business 2010” and our firm anticipates a great year ahead.  We look forward to visiting with you to discuss specific needs that may be developing though the end of 2009 and into the new year.

Until then, we wish you and your entire team a bountiful holiday season.

Leveraging Expertise

HR Career Development Series
Critical Concern White Papers

Human Resources and Compensation Committees: Leveraging Expertise

There is one important table where HR leaders still lack necessary influence, leaving many companies to pick up a costly tab.  That is the contention of some HR thought-leaders who work closely with executive compensation.  The dearth of Human Resource professionals sitting on compensation committees contributes to organizational performance problems.  It may even contribute to the ethical lapses plaguing many firms.  HR leaders can remedy the situation by preparing themselves to sit on boards or compensation committees.
Of course, Human Resource professionals have input; the CHRO is usually invited to share his or her views, and the compensation consultants should represent an HR perspective.  They provide expertise, even if they do not have a vote.  The lack of a vote, however, is the key point: HR leaders have input, but not the influence of other disciplines.  This is not to say that HR leaders should sit on their own company’s boards – that creates its own set of conflicts and opportunities for ethical improprieties.  Rather, leaders in the HR profession must demonstrate willingness and ability to contribute as members of boards and compensation committee that are not their own.

Brent Longnecker, Chairman and CEO of Houston compensation consulting firm Longnecker and Associates, has viewed the problem up close.  “Too often I see compensation committees without a single person with HR training.  Many of their issues are fundamentally HR-related and getting to the right answer becomes a struggle.”  Longnecker compares the situation to what the SEC found with audit committees.  “Years ago the SEC realized that audit committees did not have the types of financially sophisticated people needed.  As a result they put in requirements that now require financial expertise to be on an audit committee, which was an excellent move.”  The lack of HR expertise among the voting members of compensation committees is similarly disconcerting.

Longnecker, who is presently on a board—and has been on others in his career—observed, “One would be surprised at the type of junk that gets recommended to compensation committees that is flat wrong and, if implemented because no one truly understands HR, would put the company in jeopardy.  Having at least one strategic-minded HR person on the committee to address issues around tax deductibility of plans, FLSA, Age Discrimination and the like would generate a huge ROI over time.”

Cornell University Human Resources professor, Patrick Wright, commented on the ethical consequences of HR’s silence at the board level: “Conflicting incentives also seemed to plague Boards of Directors at some of the companies marred by the recent scandals….  These scandals should provide adequate incentives for HR to expand its view of where it should be involved. Who within the organization better understands incentives, and how such incentives can create conflicts?”  Compensation committees need HR’s insights into the connection between pay and behavior, especially the unintended behaviors frequently engendered by executive compensation.

Getting HR professionals onto compensation committees faces resistance on three fronts: compensation consultants, senior management, and HR Leaders themselves.  Longnecker noted that, “A lot of compensation consultants are financially interested in keeping HR on the administrative side, not the strategic side of the business. Keeping HR focused on reactive issues is usually a whole lot more profitable than when they are proactive.  A good consultant will work hard with HR to be ahead of the curve, not behind it.”  HR needs to reshape the relationship with compensation consultants, insisting on more than administrative input.

Keith Hammonds of Fast Company summarized the second obstacle facing HR leaders.  Some senior managers still disparage HR professionals’ desire to have a ‘seat at the table’: “They have no seat, and the table is locked inside a conference room to which they have no key.  HR people are, for most practical purposes, neither strategic nor leaders.”  There is an undeniable animus held against HR by some executives.  Gaining placement on a compensation committee where such attitudes persist will be extremely difficult.

In summarizing his research on CHRO succession planning, Dr. Wright observed, “the part of the job CHROs felt least prepared for was dealing with the board of directors.”  This suggests the third front facing HR professionals: they often lack important experience or training.  Anthony J. Rucci, Executive Vice President and President, Strategic Corporate Resources at Cardinal Health Inc., observed, “Business acumen is the single biggest factor that HR professionals in the U.S. lack today.”  Even in companies without an anti-HR prejudice, the compensation committee will remain closed to HR leaders who cannot demonstrate the acumen to add value.

Compensation committees need HR’s presence.  They need HR professionals with the skills to sift through what are, at their core, both HR and business issues.  Jim Hess, Principal of Leapfrog Executive Search in Dallas/Fort Worth, encourages emerging HR leaders to start developing these skills as early as possible.  “It is never too soon to become the caliber of business leader necessary to sit on a compensation committee.  This means developing a wide range of business skills and experiences.”  Hess continued, “Also, board seats are acquired through relationships.  Seeking the guidance of a talented mentor can dramatically accelerate your development and access to board participation.”

For some companies, enhancing their compensation committee’s HR expertise might take the sort of outside pressure the SEC applied to audit committees. Hopefully, boards will see the need on their own.  Either way, HR leaders must diligently prepare to contribute their unique insight, training and experience at the highest levels.

Why Go Green?

Sure, there has been a lot of talk about it, plenty of compelling community action, and an incredible opportunity to leverage the results well into the future. We have received substantial, positive feedback from people and organizations who have made the commitment to “go green”. But really, what is the green revolution all about?

It all began several years ago. First one, and then many organizations discovered that going green and utilizing Leapfrog Executive Search as their retained search partner for HR leadership roles based in the southwestern United States yields spectacular and sustainable results. Going green brings about focus, leverages valuable relationships, and ensures attention to detail.

Following are some helpful hints you can undertake to become greener:

• ORGANICS – let us help you access premium quality talent grown in the best environments.
  COLLECT talent for succession planning.
• EMULATE successful, brand name companies that use Leapfrog for HR leadership search.
• ENERGY AUDITS help determine whether your HR leader is stimulating growth and profitibility, or functioning as an impediment.
• REDUCE time to hire through our commitment to results.
• DONATE this email to a friend.

One caution … RECYCLING is an excellent green approach, but the wrong ingredients will not produce the desired outcomes!

Remember, this is a Leap(frog) year and if you are going green, the time to begin is now.