Welcome to the 2nd issue of The Market Intelligence Report.

As we approach the start of summer the weather isn't the only thing that has been getting hotter. This is the hottest market that we've seen for top executives in years. In this issue we're going to be exploring some of the factors that are contributing to this added heat in the market, and why this market is not showing any signs of cooling off any time soon.

As the demand and competition for talented executives continues to grow, more potential candidates are becoming excited by the prospect of change. For every search that we are currently involved in the candidates being selected are fielding multiple offers. This means that compensation has also heated up as companies are competing not only for the candidates they are seeking to attract but also for their key executives that they need to retain.

However, from the client perspective there is also a lot of heat being put on them to make their management teams as cost effective and value added as possible. We are seeing much more movement at the top within the executive ranks running technology and operations - especially in the financial services sector.

Another contributing factor to the current heat in the market are the regulatory issues that are hot potatoes companies need to deal with - such as Sarbanes-Oxley.

Summer traditionally was a very quiet time in the executive talent market, with a lot of people going away on vacations - but this is going to be one long, hot and very interesting summer for all of us.

In a recent audio interview aired on Sky Radio and American Airlines flights, Judy Homer, President of JB Homer Associates discusses the factors necessary for a successful Executive Search.

Whether you're an executive seeking a new career opportunity, a Human Resources executive involved in the talent market for your organization or a CEO running your organization- here are some ideas that work in today's marketplace, along with what does not.

What works if you're an EXECUTIVE who wishes to pursue greener pastures for whatever reason, spend time on developing a convincing, easy to read resume that will motivate the reader to want to speak with you and eventually meet with you.

Start with a reverse chronological format of your current and prior positions. Use bullets in sentence or paragraph form heavily focused on accomplishments, supported with metrics particularly when you can demonstrate the positive affect on the business. Also use metrics to demonstrate the size and scope of your responsibilities, including staff size, operating and capital budget size, etc.

What does not work is starting with a lengthy Executive Summary or Profile that uses adjectives like visionary, world-class leader and similar self-congratulatory words. If you have these attributes they should become evident to the reader when going through your well documented accomplishments, which you can later substantiate with the appropriate references.

What works if you're a HUMAN RESOURCES EXECUTIVE charged with recruiting senior executives with the help of an executive search firm is develop a true partnership with the search firm of choice, where the goals of finding, screening, selecting and closing the chosen candidate(s) is executed through a mutual commitment and feeling of trust between you and the search firm. All reputable search firms want to be closely connected to your organization from search inception through candidate placement and beyond in order to create a win- win situation for future engagements. This is the joy and psychic income derived from the successful search assignment, beyond just financial remuneration.

What does not work is viewing the executive search firm as a hired vendor to be treated like an outsider. This posture makes it difficult if not impossible for the search firm to truly partner with you and your organization and provide maximum added value throughout the entire search assignment. The more you allow the search firm associates to learn about your key executives and what your companies needs are all about, the better they will be able to match candidates to your organizational environment and requirements.

What works if you're the CEO of a company and are concerned about how quickly and effectively your staff can handle the myriad on new regulations and industry requirements like Sarbanes-Oxley, Basel II, as examples, you must restructure your organization so that risk mitigation, compliance, business continuity, information technology security and other relatively new categories are managed and staffed with people with demonstrable track records of accomplishment in these new disciplines.

What does not work is retaining the department structure and leadership that was effective four or five years ago or more with the hope that things will work themselves out. It's true that the cost of making these changes, particularly to systems, business processes and the infrastructure needed to facilitate the new regulatory landscape, as well as the competitive marketplace, are very high indeed, running into the 100's of millions in larger organizations. But the cost of not making these changes will be far greater in the long run.

As executive recruiters the number one question that we are asked by our candidates is "What does it take for me to be the chosen candidate?"

The answer is there are always key criteria that determine what makes a candidate a hot prospect for a particular search - some obvious and some that may surprise you:

1. Positive Attitude - the number one reason someone is a hot prospect and is sought after is a great attitude. Before you can get introduced to the client company the search firm evaluating the candidates for presentation has to like you. Every candidate we present to our clients represents our assessment of their appropriateness for the position and for fitting into our client company's culture. If we believe you have a cooperative and enthusiastic attitude you are much more likely to be presented to the client than someone we consider to be a Prima Donna and difficult to deal with and potentially difficult to close. Also if you are not the candidate chosen for that particular search, we will always seek you out again for other opportunities as they open up.
   
   
2. Flexibility - this also goes back to attitude. A candidate who sees the big picture and long term impact of accepting a particular opportunity and who will work with the client company on structuring an equitable compensation package and title for the position is a much hotter prospect that one who comes to the table with an iron- bound set of demands. Remember no candidate is ever the only possible choice for a position - the client always has the option of moving forward with their 2nd choice if they get turned off by the demands of an inflexible candidate.
   
   
3. Proven Track Record - you've demonstrated that you can handle the job's responsibilities and challenges in comparable situations in the past and would be a good bet to be successful again if you were the candidate selected. You've established a reputation for leadership not only at your firm but may also be an acknowledged authority in your industry participating in industry committees and initiatives.. You've also proven yourself as an effective mentor, with a track record of attracting and retaining quality support staff.
   
   
4. Skill Sets - a hot prospect has skill sets that are in demand. This means that you never have the opportunity to rest on your laurels. To continue to be considered a hot prospect throughout your career you need to keep up with the latest regulatory requirements, operational issues, and current technologies and methodologies. You also must continue to hone your presentation skills and ability to build strong relationships with your business counterparts. The hottest candidates know that keeping their skill sets current and relevant is the best investment they can make in themselves.
   
   
5. Great References - think of this as the Good Housekeeping Seal of Approval - other people have validated that you are great to work with/for and would be a tremendous asset to any company; often stating that they would hire you if they had the right opportunity. References can absolutely determine whether an offer is extended or not.

A hot prospect is a candidate who is great to work with, has wonderful qualifications, experience, and references and is not too hot to handle.

Reference checking is one of the most important areas of researching and identifying a potential candidate for a search. Our clients rely on us to use references in assessing whether a candidate has to ability to succeed at their company. References indicate how well someone delivered on their responsibilities in the past as well as insight into their personal character, and how well they have maintained key professional relationships over time. As candidates undergo tighter scrutiny before being extended an offer - references become an even hotter topic for the client company and the search firm. Offers have not been extended or have been withdrawn if the references are not positive.

In retained search a great deal of stock is placed on the information gathered from references about the potential candidate. By checking multiple references and asking open ended questions about the candidates work history, the nature of their working relationship, personal approach, and track record we can create a valid picture of the candidate's work style and the ability to get the job done. By checking references circuitously, with our own industry contacts, in addition to the references suggested by the potential candidate we can establish much more accurate and reliable conclusions about the candidate's viability for the position in question. Every potential candidate has both strengths and weaknesses that may or may not impact their ability to succeed within a new environment and with a new set of responsibilities. We then compare these findings with the actual resume, and our impressions of the candidate from the interview process in order to determine if they should be included on the short list presented to our client. No candidate is included on the short list if the references are not uniformly positive.

Every search firm can relate examples of where even with top executives we have dealt with exaggerations, discrepancies and omitted background information that impact the accuracy of the information they have given us regarding their past successes and how well they've established relationships with their colleagues. When candidates know their references will be checked and weigh heavily in the decision making process, they tend to be a lot more honest in their self assessments.

Reference checking is essentially a system of checks and balances - checking the accuracy of the information we've received and balancing it against what the references believe about the candidate.

As most IT & Operations professionals are aware, Sarb-Ox has caused numerous delays due to the fact that companies, especially public ones, are forced to document their internal controls to come into compliance thus adding additional cost to projects and in some instances the cancellation of others. Project teams must do more quality assurance testing and assessment through project life cycles to document IT controls.

Many IT & Operations executives have spent years trying to streamline their project methodologies but many of them have been set back due to the SOX requirements which call for additional sign-offs during different phases of projects along with other required controls. In some cases this has added 10% to 15% in time delays. As a result the businesses and other customers are complaining about additional delays on their projects. Moving to the next level of quality control without lengthening projects and incurring additional costs will certainly be a challenge. Many CIO's are attempting to develop different methodologies to prevent SOX requirements from having a negative effect on their projects by factoring in all requirements in the planning stages. Naturally, any impact on the financial systems is always factored into the design and testing of those systems.

Now that we are several years into Sarb-Ox Information Technology and Operations are wondering if there is any light at the end of the tunnel concerning trusted data and continuous testing of systems. We are beginning to see some lightening up of regulations put forth by the SEC. Now not every piece of financial data has to be controlled every step of the way. Management has been given a little leeway to use discretion when they see something wrong. Everyone doesn't have to worry about reporting and documenting every incident that could have a negative effect on financial data. If you see discrepancies manage the problem and make suggestions for the remedy. Remember, SOX was initiated due to lack of trust and confidence that was taken from us by a few not so honest executives that decided to manipulate the figures to their advantage and greed. Trust has to and will be regained in corporate America and once again I/T can start to think of ways of protecting business data integrity and implement controls that are effective and not just exhaustive.