EXECUTIVE SEARCH FOR GLOBAL ORGANIZATIONS:
DAVID PAILIN SR. (SENIOR PARTNER) PAILIN GROUP
Analyst Interview - published Dow Jones Inc
DOCUMENT #CPVBMAV85880852

As Senior Partner of the Pailin Group Professional Search Consultants,
David Pailin offers extensive experience in executive search, specializing in the
varied professional disciplines including but not limited to pharmaceutical,
diversified manufacturing, and various other industries. Mr. Pailin's career has
been dedicated to managing retained search projects and improving the executive
search industry. His experience has been gained in both small and large firms.
He has worked in boutiques as well as serving as a Division executive
for Netrex International, one of the world's largest search firms.
While there, Mr. Pailin started and built a highly successful office
in the sixth largest business center in the US. Following that, as a
Corporate Officer, he was instrumental in the start-
up and explosive growth of a global search firm that specialized in the
minority executive search arena. Having managed hundreds of search
projects, The Pailin Group offers one of the search industry's most successful
fulfillment records. 

Sectors: PHARMACEUTICALS, GLOBAL NON PROFIT, HEALTHCARE AND
FORTUNE 1000 INDUSTRY & MORE

TWST: Please give us a description of your firm and the services you
provide specifically to industry.

Mr. Pailin: As a retained executive search firm, our expertise focuses
on executive and management resources. We help both small and large
companies identify and attract top talent. Most often, we
are providing executive search services for Director, Vice President,
and above positions for all functions within industry. In addition to our core
business of search, there are times when clients ask us to assess internal
executives or their entire management team. This can happen for a number
of reasons, including a reorganization or the hiring of a new Chief Executive
Officer. Clients who are expanding through acquisition may utilize our executive
assessment as a highly confidential service when they want to review the
management team(s) of a potential acquisition target(s). When you
consider the importance of executive leadership, we can be a very valuable
partner to Chief Executive Officers in their efforts to hire the best leaders. 

There are times when a client needs to significantly enhance their leadership
team beyond the selective use of executive search for specific situations.
In these cases, we manage talent identification programs where the intent is to
seed an organization with high potential talent at either the middle
management level or, for larger organizations, at the senior executive
level. This type of program can be implemented when we are targeting a
specific function or, more broadly, when we identify best-in-class
executives with the potential to become P&L leaders. In these
situations, a client keeps us on a monthly retainer so that we are
continually managing a search for high potential individuals who can
ultimately run a business. As you can see, all of our work involves the
competitive assessment of leadership talent in 
industry. Most of the time we are managing executive searches for
pharmaceutical clients in need of a functional executive, a general
manager, or even a new executive to add to their Board of Directors.

TWST: What types of companies retain your services and what
positions are they typically looking to fill?

Mr. Pailin: Generally speaking, we serve three types of clients. We
have an impressive fulfillment record serving large multi-national
companies. However, over the past few years, we have
increasingly been working with mid sized specialty 
companies. In particular, the developing companies appreciate the fact
that we have an in-depth knowledge of the entire 
marketplace. We also work with select venture capital firms that, like us,
specialize in the pharmaceutical, biopharmaceutical, and biotechnology
industries. When we work with a venture capital client, we are typically
searching for a new leader to run one of their portfolio companies.

Search projects for large clients tend to cover the entire management
spectrum. For smaller, developing companies, the type of executive being
recruited usually depends on where the company is in their business
plan. Newly formed companies often need development executives with a
specific therapeutic expertise to help guide new drugs through various
stages of the drug development and approval process. A company with a
new compound in an advanced development stage may require a new
commercial leader to help the company prepare for a new product launch.

Both types of companies require leadership teams with a broad base of
skills. Public companies in the pharmaceutical industry in particular
must manage and develop their internal operations, while also presenting
the best possible face to Wall Street and the external market. For a
first time CEO, managing the life cycle of an early stage developing
company can prove to be a steep learning curve. These leaders need top
lieutenants who can help them compete.

TWST: How do you see the environment now for recruiting and how
does it compare with trends you have seen over the last 10-15 years?

Mr. Pailin: In our opinion, the need for effective recruiting and
staffing is more critical than ever. Companies are developing fewer
managers today as their operations become more productive and their
internal structure becomes much leaner. Global market forces have
heightened competition and have made it harder to dominate in any given
industry. Therefore, it is paramount in today's market to be able to
attract and retain the best management and leadership talent. Over time,
the marketplace tends to serve as a great equalizer.

Although it has always been important for industry leaders to recruit well,
over the past several years, the ability to recruit the very best leaders has
become a distinct competitive advantage. Chief Executive Officers who do
not embrace this concept may lose and they may lose more than once.
Initially, they lose the opportunity to enhance their management team
with the best leaders, and then they must compete against these same
leaders in the marketplace.

TWST: What do you see as the greatest challenge in recruiting for this
industry now?

Mr. Pailin: The industry today is divided into what is called big
global expansive organizations and many small to medium-sized companies. 
The demand for outstanding talent remains very competitive within all of industry.
The larger companies offer a great deal, but they are
perceived by some executives as being more bureaucratic and more
hierarchical, and affording less opportunity for empowerment and
decision making. One of the influences also making it more difficult to
recruit is the proliferation of smaller companies.

These companies usually are less bureaucratic, less hierarchical and
can offer an executive greater decision-making authority, as well as the
chance to act in a more entrepreneurial manner. If a company is pre-IPO,
it can also offer an opportunity for building real wealth. The number of evolving
companies also increases the competition for top talent. A Vice President or
Senior Vice President at a large company can now get an opportunity to
become a President, Chief Operating Officer, or Chief Executive Officer in a
shorter period of time. Due to many external factors, such as managed
health care, the FDA, environmental issues and legislation, industry
may be seen by some executives as less attractive than it was five to 10
years ago. The ongoing consolidation has also caused
individuals to view opportunities with more caution. These
consolidations obviously create fewer opportunities at the top.

TWST: What is the supply/demand balance now for the types of executives
you are recruiting?

Mr. Pailin: Certainly, there can be no doubt that there is always a
shortage of available class A or best-in-class talent. Given the
competitive landscape in the pharmaceutical industry, clients are
continually looking for leaders who can help move their company to a
higher level of performance. Keep in mind that any company's executive
team is in a continuous state of flux due to retirements, resignations,
sicknesses, etc.; it is seldom, if ever, stable. So there is a need for
ongoing vigilance as to the quality of a company's management team.
Chief Executive Officers and Boards must take a hands-on approach to
this problem. Fortunately, I believe this is becoming a regular agenda
item at Board meetings.

Recently, a Chief Executive Officer of a global
multibillion-dollar company told me he only needed 20 to 25 top
executives in order to be the leading company in the industry; however,
he could not secure the 20 or so he needed. He is not satisfied that his
team is the best. In this rapidly changing global economy, the
competition for executive talent will become more intense than in the
past, and the supply will always be a moving, short supply.

TWST: How well must you know the client company ' their corporate
culture, philosophy and their products ' in order to find, attract and
place the best people?

Mr. Pailin: Of course, the need to know a client's competition,
financial position, and future direction is of paramount importance in
any professional search. But just as important is the internal climate
of the company or, put another way, the culture of the company. All too
often, this aspect is overlooked. In my opinion, a client's culture has
more to do with a successful placement than any other single factor. Is
the company risk-tolerant or risk-averse? Is it top-down driven? Does it
have a 'can do' attitude? All these factors have a direct bearing on the
type of candidate that should be presented to a client. It is also
important to understand the management styles of those executives around
the position being searched. This is especially significant in team-based work
cultures.  So to answer your question, knowing as much as you can about a
client certainly helps to make successful placements. In fact, I follow the rule
that you can never know too much about a client, simply because their status
is always undergoing change. It is imperative for us to stay current on our
client's activities.


TWST: How specific are clients in their search criteria?

Mr. Pailin: All too often, confusion or misunderstanding can develop
between a client and a search firm simply because of the lack of
specificity. Of course, this issue is further complicated if the search
firm does not have a good working knowledge of the company, as I
explained earlier. When specifics are lacking at the outset, frequently
you will find that the specs keep changing during the search process,
thereby putting considerable strain on the time factors. Quite honestly,
if there is a lack of specifics at the beginning of any search, it is
clearly the fault of the search firm. It is the search firm's responsibility to
dig for the specifics that make for a successful search. That is an intrinsic
part of the consultant's job.

However, I should point out that when there is a long, successful relationship
between a client and a search firm, you might get a call from a Chief
Executive Officer saying, 'Get me another John Doe ' I need the spot
filled by the end of the year.' While this situation may be rare, it can
happen when there is a good working relationship and trust between a
client and the search firm. When we start a new search, our firm makes
it a practice to meet with the hiring management team at their location
as soon as possible. Following this planning meeting, we submit a search
strategy that the client approves in the first 10 days of the project.
We find that this usually helps our clients to focus on the critical
selection factors required for success in the position. To be sure, the
need for exactness is crucial and such exactness should be agreed upon
early in the process.

TWST: How do you track and rate your client's level of satisfaction?

Mr. Pailin: I am glad you asked this question because, at the end of
the day, this is the real test of a successful search firm. We do,
indeed, track all placements for a considerable period of time after
they start their new assignment. If the candidate is not with the client
after a specified period of time, we consider the assignment a failure
regardless of the reasons involved. I am quite happy to say that our
placements have over a 90% success rate, which is noteworthy because the
fulfillment rate in our industry is typically between 50% and 70%. After
we place an executive, we follow up with both our client and the placed
candidate at 30, 90, and 180 days after the start date. We are
essentially serving as a liaison for our client as the placed executive
becomes comfortable in his or her new work environment. Due to our
results-oriented approach and our understanding of the marketplace, 
we have developed a good track record of turning new clients
into repeat clients. I consider this to be another good indicator for
client satisfaction.

TWST: What kind of process do you have candidates proceed through
before you submit them to your clients?

Mr. Pailin: The executives that we present to clients as finalist
candidates often tell us that we have the most thorough and demanding
search process they have ever experienced. It is pleasing to me how
often we get this feedback. Our telephone screening process enables us
to selectively identify those best-in-class executives who we will meet
to assess in person. Following these meetings, our clients receive
detailed evaluation reports on those executives who are truly the best
for their specific needs. Once the client meets with our candidate and
moves them forward as a finalist, we provide additional documentation in
the form of a candidate self-evaluation. This is an additional step in executive
search assessment; however, our clients tell us that it adds value to the selection
process. By completing the candidate self-evaluation form, candidates can
differentiate themselves from other finalists.

Clients can learn how candidates think and can also can
evaluate their written communication skills. Although I won't go into
full detail, candidates submit in writing ideas for career development,
an action plan for the position, anticipated obstacles for success in
the position, and challenges to accepting an offer. By this time, we
have also documented the candidate's compensation history in detail,
including all option package information and any special incentive
arrangements. Generally, candidates comment on our thoroughness during
the search process, while clients compliment us for our quality and
diligence once the project is concluded. We have even won new clients
due to our thoroughness in conducting reference checks.

TWST: What sets your company apart from your competitors and what
specific advantages do your clients derive from your services?

Mr. Pailin: Before building this firm, I had a high level of success
working for two different search firms. I have gained a good diversity of experience 
on how the search industry functions. Regardless of size, I learned that the
competitiveness of the search industry forces most firms to focus more
on selling and marketing themselves than actually fulfilling their
client engagements. Our industry also needs to focus more attention on
the responsibility of training our own consultants. In my opinion, our
firm goes against the tradition of the search industry because we focus
on delivery, and continuously strive to develop our consultants and our processes
to be the best. 

From our inception, we decided that our unique appeal would be
our underlying commitment to the quality of our search process. You will
not find a more client-focused and results-oriented firm. We search for
high potential consultants who enjoy hard work and who approach client
projects with a sense of ownership. Although we are approaching our
fourteenth year, this interview is really the only public announcement we
have made. We purposely took the time to build and develop a staff and
infrastructure that would outperform our peers. Although we cannot match
the glitter and glitz often offered in this industry, we believe we are
the leader in successful project fulfillment. Given our experience
serving industry, we are able to help our clients
save time and money when they need to hire the best new leaders.

However, the real advantage for our clients is an intangible, but very
special, feeling of trust that develops when a true partnership exists.
Our clients know we can and will deliver. We offer an open platform
where our pricing is published in advance and new clients are
informed of existing client relationships. Therefore, we work as a strategic
partner whereby we expect to share risks and rewards based on our
performance. Quite honestly, everyone should recognize that the
search process is not an academic pursuit; it is a hands-on, attention-to-detail,
time-consuming, step-by-step process. If any of the steps are not
addressed properly, the end result is questionable. To me, each step
is a key link in a quality chain; if any of the links are approached
without due care, the quality chain is subject to breaking.

In an industry where it is difficult to differentiate.  The Pailin Group stands
out because of our underlying commitment to the quality of our process.
Over time, the quality of our work will differentiate us from other search firms.
Quality is our hallmark and will remain so, hence our motto
"our standards are as high as yours are."   And I believe that our clients
standards are pretty high.

TWST: Thank you. Please direct questions, comments or business inquiries to 

The Pailin Group Professional Search Consultants Senior Partner David Pailin,
dpailin@pailingroup.com 214-495-7789*Your organization can engage the
Pailin Group consultants online today to begin a comprehensive market scan for
executive talent by completing our search assignment form by clicking on this
convenient link. 

Pailin Group Professional Search Consultants
Retained executive search, since 1989 Dallas Corporate Offices
214-495-7789
info@pailingroup.com

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