June 15th, 2007
Business case study and favorite blogs
This blog has been nominated as best business blog. We have received 13 votes Thank you. This blog has also bee nominated as best political, best corporate and best educational. Wow!!! If you are so inclined, click on the stamp for best business blog and follow the directions to vote for blackinbusiness. In order to be the best I need to bring value, I will today by providing a real life case study and introducing 4 more blogs I love.
When I attended Northwestern University’s Kellogg school of Management’s Advance Executive Program, we did case studies every day. We had groups and would work on solutions for company problems together.
As many of you know, I own an executive search firm, Global Recruiters Net Work of Oak Park. I specialize in the Medical field and hope to differentiate from other recruiters. I plan to do this a with a few key contacts and by building a relationship bases on trust and respect. My hope is to become a talent broker, and not a search consultant. I am fortunate to have many successful and talented friends in the medical field.
Recently I made contact with the COO of a multi billion dollar corporation. The executive is a star in his field and a part of my personal network. At the time he had no searches happening that I could do but I introduced him to 2 stars. This ultimately lead to interviews and the selection of 2 VP’s to hire. My fee for this search is 30% of first year income. I was told in training to walk away if below 25%. These 2 VP jobs have salaries of 300k plus. This would provide my 1 man firm revenue of 150k plus. This is where I need your advice.
My buddies firm countered offered, 15% for first placement, 20% for second, and a promise of more searches. In fact they offered an additional search on the spot. Search 3 would pay 20% 4, 22.5% and search 5 and above 25%.
They have offered me 105k vs. 150k. The 105k includes by implication additional opportunities for me. This company has well over 20000 employees. OK, what would you do and why?
Here are some interesting blogs to visit.
Villager
KWiz
Manchild
Twinsherry
Rainbow cafe has listed the 10 top love songs of all times. My favorite, Marvin Gaye, “Let’s Get It On!”
June 16th, 2007 at 7:18 am
Hey, I didn’t realize you were in The Chi, too!
I’d say take the somewhat lesser percentage. $150K is a GOOD thing!
I worked as a VP at Burrell for years and we usually didn’t walk away from that kind of money, depending on how much labor was involved.
I’d think that adding a smallish ‘get’ to your roster could lead to future opportunities. When the big fish don’t bite, you’ll be glad you did.
June 16th, 2007 at 11:27 am
Kweenkong, thanks for the insight. Burrell is a good role model. your business experience and advice is of value to me. You said a lot with a short comment
June 17th, 2007 at 6:15 am
(Thanks, Jim! I’m floored!)
This is an interesting live study. First of all it’s always a fun problem to cherry pick offers.
I think the percentage is an important bargaining point, but the main thing would be each company’s strengths in their markets and how they will provide for future businesses and relationships.
Apart from the numbers, companies that seem alike may be entirely different in their culture. I believe going with the company that shares the same values as you do will be a more meaningful ride in the long run.
June 18th, 2007 at 10:50 am
Jody, thank you for your advice, common values is something I had not considered. This is a big help