graeme read at uk recruiter directors event
DESCRIPTION
Graeme Read talking at the UK Recruiter July 2014 Directors event.TRANSCRIPT
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Lemons & Lemonade
Graeme Read
CEO
3R Partnership
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The US has “Lemon Law”
The UK doesn’t. We do make
Exceptional Lemonade
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IRONY
My first “lemon” was in the US
NEW YORK
• Retained Search & Selection Model
• Location, Location, Location - near Wall St
• Top clients: Enron, Global Crossing,
Worldcom, Tyco, GE, Coca Cola
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My second happened around the same time
ANDERSON EXECUTIVE SEARCH
• High-end Search boutique in… Watford
• Moved Team of 5 to London
• Plan to take it to NY & elsewhere
• Clients - Arthur Anderson, BT Nth
America
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Challenges
• US model is different
• Boston / Stanford nearer a client
• Watford staff liked Watford ?!?
• We can rely on our clients while we
fix them …
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Pop Quiz
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What Happened ?
• NY model different to Retained Search
• Dotcom bubble burst
• Lost our top tech / consulting / dotcom clients
• AND Enron / Andersen happened
• Location - wrong in US
• Anderson brand better than location / people
view ?
• 2 LEMONS but lots of lessons learned !
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RUSSIA 1993/4Antal Opened in Moscow
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Early 1998:Things were going well
Moscow & Kiev
• 60 staff & growing
• Plans to double that
• Additional premises signed up
• Life was grand
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Aug-Sept 1998:Russian Crisis• Came back early from honeymoon
• 60 staff down to 6
• Stock & Currency Markets Collapse
• Inflation 84%,
• Many bank closed down, one bad debt
• Landlord dealt with
• Another lemon??
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1998 - 2007
GET THROUGH IT & GROW
• Founder & CEO
• Shareholders & Management
• Team
• Finance & Credit Control Team
• Stay in the market
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Fast forward to 2007:
>100 staff, Moscow & Yekaterinburg
• Dominant in market
• EBIT > $3.6m
• Real Value Created
• Time was right
• Appoint broker who knew Russia (not Rec
Sector)
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2007-2008:
First Deal – Jilted at the altar
• Buyer had to divert fund elsewhere
• Senior Team began marketing to the sector
• Got 3 credible offers
• Chose FiveTen’s offer
• Celebrated
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6mths later in 2008
• Despite Lehman & the rest – it’s a good
business
• Antal Russia continues to grow with great
returns
• Celebrating 20 years in careers
• Now in 3 offices, 2 countries in CIS
100% LEMONADE
Today:
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Poland: Opened 1996
Then in early 2004
• Arrived in Warsaw
• Total Team Defection
• 20 set to walk out, except 1 Finnish chap
• This wasn’t going to be easy
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Poland: 2004
• We’d always had expat management
• Asked staff who they admire most
• Artur Skiba made MD
• He kept 19 of the 20 (+ the Finn)
• Competitor got 1 former expat MD
• And 20 cars they had ordered
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Poland: 2004-2013
• Investment in team and management
• Antal Poland larger than Hays / MP
• 3 Offices - Warsaw, Krakow & Wroclaw
• Staff from 20 to 100+
• Market red hot, the only economy to escape
• Used a well known “Big 4” broker in Poland
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Poland: 2013
• We still had to market it outside Poland
• Business sold to WorkService
• Only listed staffing group on Poland
exchange
• Now in Czech Rep and further plans
100% LEMONADE
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Is Making Lemonade worth it?Antal deals (buy & sell) worth $45m since 2008.
Anderson Exec Search Parkside
Recruitment
Antal Russia Alpha
Financial Jobs
Antal Poland Antal
China
+ various non recruitment deals & more planned
Despite selling 50% of the group in 2008, went on
to generate > $10m trading EBIT
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Key To Do List• Generalist? Only if you dominate market• Keep swimming!• Capacity? Have internal capacity to handle the
“deal”• Don’t miss your numbers!• Overseas? Do research but Just Do It!• Brokers? Yes, specialists with international
reach• Team? Fundamental - Involve & Incentivise• Hit or exceed your numbers!
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3R[insid
e]3R
[ventures]
3R Partnership 3R
[network]
AdvisoryNon ExecStrategic ConsultingBoard CoachingInvestment AdvisoryCEO MentoringBusiness ReviewMarketing & PRGrowth Acceleration
Sector Specific Advice & GuidanceFundingMergers, Disposals & AcquisitionsInvoice DiscountingLegal Services
Startup RecruitersJump FundingNon-franchised start upsTrainingSupportBack OfficeWebsiteCloud Email, CRMTechnologyLegal AdviceGrowth Funds
3R Investing in the Recruitment Sector
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3RPartnership.comRespect Results Returns
3R[inside]
3R[ventures
]3R
[network]
Investments in or with specialist Business Partners covering:• Training• M&A• Marketing• Software• Accounting Back Office• Legal & HR Solutions• Funding / Investment• Brokering Invoice Discounting