The following questions can help clarify if step-up candidates should be incorporated into your search strategy:

• Is your organization in the early stages of growth? Step-up candidates may be more willing to flex between strategy formulation and hands-on execution when resources are scarce. Whereas veteran leaders may be too accustomed to delegating to more established teams.

• What is the makeup of your existing executive team and support network? Do you have a roster of experienced leaders who can afford to support a burgeoning executive? Are there Board members and/or operational advisors that can help to mentor a step-up candidate?

• Does the external step-up candidate represent a significant upgrade compared to your existing team members? Will a step-up hire allow for the continued development of your high-potential leaders or cause friction and potential resignations?

• Do you need to diversify your leadership team? Is your existing leadership team too homogenous? If so, opening your search to include step-up candidates will improve your chances of landing a diverse leader.

• Can you afford a seasoned veteran? While we often encourage our clients to pay up for an A-player, sometimes the gap between a veteran leader and a first-time executive is too much to bear. A comprehensive analysis of candidate compensation and the associated trade-offs will confirm if a step-up candidate is the appropriate choice.

If your business case matches one or more of the points above, a step-up candidate may be the best solution for your organization. However, not all deputies are created equal. In addition to our typical assessments, here are some thoughts specific to evaluating step-up candidates:

• Clarify the Org Structure: Titles can be misleading. Look for deputies that have the full breadth of functional responsibility, instead. For example, in the case of a CFO search, has the existing Chief Financial Officer been elevated into a Chief Administrative or Operating role and left the traditional finance responsibilities to their second-in-command? Confirm this by understanding reporting lines at the direct, peer, and superior levels.

• Prioritize the role’s qualifications? Do the unique characteristics of your industry make direct sector experience essential? Do you need someone who has worked with a specific ownership type, and/or been through a specific event (IPO, exit, M&A, etc.)? A step-up candidate that has all of the above experiences and played a significant role in those processes may be more relevant than a C-level leader with gaps in their CV.

• Seek examples of original thought: Assess for instances when the step-up candidate provided and drove solutions for solving problems or seizing opportunities. Have they been successful leading up to multiple leaders or relied on the direction of one or two primary sponsors?

• Reference early and often: Ask for references early in the process, if possible, and look for back-channel connections that won’t jeopardize the candidate’s current employment. Invested leaders want to see their proteges succeed. If you paint an accurate picture of the role’s expectations, past/current mentors will overtly or covertly signal if the candidate is ready.

• Identify the gaps: Whether directly from the candidate’s self-description, your evaluation, assessments, and/or reference checks, it is essential to highlight the candidate’s primary gaps. Are these mission critical shortfalls or learning opportunities that can be addressed?

While step-up candidates are rarely coveted at the onset of a search, a careful assessment of the situation and a diligent evaluation process may reveal that step-up candidates should be incorporated into your search, if not targeted exclusively.

We’d love to hear your reactions below! What else do you consider when hiring a step-up candidate?

Reilly Partners had a busy first half of 2023, filling positions, providing strategic talent advice, exploring opportunities across our clients’ industries, and bringing the best talent to our clients.

In light of the current state of economic breath holding, we have a few things on our minds:

Taking the long view

It feels as if we’ve been waiting for the recession to begin for at least two years now. Conflicting data points are reported nearly every week. The consensus now seems to be that the US economy will officially be in some degree of recession by later this year. As that negative drumbeat has become louder, companies have begun to look for ways to cut expenses. Few solutions are more impactful than hiring freezes and layoffs. Investors tend to cheer these quick, decisive moves, making them even more attractive to executives in the c-suite. While these cuts are sometimes necessary, in our observation they are rarely done with enough thought to their long-term impact. Few things can “kill” a carefully curated culture, faster. Unfortunately, this is often overlooked as the dark storm clouds of a potential recession roll in…

The US economy has proven resilient time and time again, from the dotcom bust to the near complete meltdown of the financial crisis. While each recession is unique and feels unpredictable in the moment, downward turns have typically been followed by longer periods of growth and development. Even though we know this, in the moment we tend to forget. Decisions to slash hiring and cut people are often made hastily, causing confusion, frustration, and potential resentment that can do long-term damage to a company’s employment brand.

Of course, there are situations where layoffs are the right decision. The key is to recognize who you can’t afford to lose today, who will be the most difficult to replace tomorrow, and to protect your future leaders. Always remember, your best employees are the most vulnerable and have the most options. If they sense uncertainty or feel overlooked, they will be proactive in protecting their own career.

We know when companies consistently and demonstratively prioritize their workforce, they are more likely to attract and retain top talent. By investing in talent, especially during challenging times, companies can supercharge employee loyalty and commitment. Companies that stick to their long-term plans and remain committed to their key employees and their development are better equipped to weather the storm. They will also emerge faster on the other side of a recession, leaving their less strategic competitors in the dust.

By taking a long-term approach to talent, companies can create a more stable, sustainable foundation for growth and innovation, and will achieve greater success more quickly.

A Note from Our CEO

I am optimistic about the lessons we’ve learned over the past three years. But I have some reservations about the widespread adoption of remote and hybrid working arrangements. As an economy and society, we have quickly adapted to this new way of working. While elements of this new normal are fantastic, I do have concerns for how it will impact individual and corporate results over time.

While remote work has brought about many benefits, I believe there is a downside – especially for those in the earlier stages of their careers. Data clearly shows that school children experienced a disruption in their learning due to remote schooling. Similarly, I believe remote work has stunted development and productivity in the corporate world. But the kids are back in class while many of us are still at home.

I believe the glue that binds organizations together erodes when we are at home full time. Remote workers will need to be more proactive than there in-office counterparts in seeking out opportunities for professional development, networking, and relationship building. Corporate leaders will need to be more thoughtful about how they recognize, engage, and develop their future leaders if they are not physically in the office. Some organizations have implemented remote work policies that consider these challenges. Time will tell how successful these strategies are.

There are plenty of reasons remote working arrangements make sense. Some individual contributors are more productive at home. Some roles are simply better suited for a remote arrangement. Sometimes the best talent is three states away. It really is best decided at the individual level. I simply want us all to be honest about the potential challenges of long term, large scale, remote working.  

I think if your goal is to simply have a “job,” then no worries. But if your goal is to have an impactful “career” it might be time to get back in the office – at least a few days a week. Leaders are paying attention – choose your path wisely.  

Ned returned to Reilly Partners as a Managing Director in March 2023, to expand the firm’s Business Services practice. With a focus on the Finance, Human Resources, and Revenue functions, Ned brings a wealth of experience conducting CFO, CHRO, and CRO searches for portfolio companies of some of the most prestigious private equity firms.

Ned looks forward to working with other managing directors to help Reilly Partners identify new client relationships from his network while further establishing the Reilly Partners name as a preferred search firm for the private equity industry.

“I’m thrilled to be back at Reilly Partners and grateful for the opportunity to partner with the same leaders that first introduced me to executive search. I’m excited to blend the analytical and holistic methods that I’ve experienced over the last seven years with the high-touch, transparent style that has always defined Reilly Partners.” 

Ned was most recently a Principal with Morgan Samuels, a boutique executive search firm, where he focused on private equity portfolio talent. Prior to Morgan Samuels, Ned was a Senior Associate and member of the financial officers practice at Korn Ferry, a global organizational consulting firm. Ned started his executive search career with Reilly Partners in 2011. 

“We are excited to welcome Ned back to the Reilly Partners team. We have been looking for a Managing Director to add bandwidth to our PE portfolio talent service. Ned brings that experience to Reilly Partners,” says Robert E. Reilly, Jr, CEO and Founder of Reilly Partners.

To get in touch with Ned:

(847) 421-2247

nturney@reillypartners.com

Reilly Partners is hiring!

A Research Associate is an essential part of the executive search process. Reporting to the Chief Operating Officer, this individual will conduct searches for key executive and senior management positions for clients within multiple industries

To learn more about this role, see full job spec below. If interested, email your CV or resume to woody@reillypartners.com.

Reilly Partners Research Associate 2022 Job Spec

Reilly Partners placed Carol Vallone and Michele Roberts as new members of the board of directors of Cresco Labs. They become the first women board directors at the company.

Find the full article here.

Navigating this current health and economic crisis has been a learning experience for us all, and as we did during the recession of 2008-2009, Reilly Partners is looking to grow and get stronger.

We doubled in size during the last downturn, and we are in the very unique position of looking to add to our team again right now.

Reilly Partners, Managing Director 2022