Strategic Review and Analysis of Egon Zehnder

1. Strategic Review at Egon Zehnder International
“Fixing what is not yet broken”
Group 7
MOHIT KUMAR (2013PGPM034)
NISHANT DEENGAWAL (2013PGPM035)
MATHAN ANTO MARSHINE P (2013PGPM036)
PAULSON PAUL (2013PGPM037)
PAWAN GANGWANI (2013PGPM038)

2. Introduction
Egon Zehndor
One firm concept
Partner based
Fixed fee structure
High growth rate
Strategic review Proposal
• Clarity on
Strengths/weaknesses
• Clear future direction
• Positioning ?
• Use of Internet?
• Continue with Fix
billing?
• Technology and
infrastructure usage
Costof
review

3. 3
STRATEGIC OPTIONS
Existing products New products
Market penetration strategy Product development strategy
Existing
markets
New markets Market development strategy Diversification strategy
I BusinessI Tool

4. Competitive Analysis
Internet based
searches provided
by Spencer Stuart,
Russell Reynolds
• Highly
competent
employees
• War of talent
• EZI charges very
hefty amount
compared to
others.
• Job –
placement site
such as
Monster.com

5. ENVIRONMENTAL SCREENING
5
•9/11 Attack on US
•Asia Struck by SARS scare
•War in Afghanistan and Iraq
Political
•Industry is cyclical in nature .
•Detrimental impact due to economic downturn.
•Competitors growing inorganically and going public to access capital
markets.
Economical
•Less acceptance in US due to its foreign identity.
•Generation gap between consultants
•Loss of talent to competitors in US.
Social
•Upsurge of internet triggered a new wave of competition.
•High touch approach questioned when competitors begun offering
internet based services
Technological

6. Strategy diamond - EZI
S V
D
EL
EZI(A)Arenas: (V)Vehicles:
(S)Staging: (D)Differentiator:
(EL)Economic Logic:
A
Input
Components
Output
•What will be
our speed
and
sequence of
moves?
– Measured
expansion
with focus
on US.
•How will returns be
obtained?
– Premium prices
through superior
quality of service
•How will we win?
– Client First
– Fixed Fee
– One firm culture
– Quality service
•How will we get
there?
– Internal
development
•Where will we
be active?
US
Europe
Global Player
Internet

7. Strategic Review
Communication
SOP
Strategy
Approval
MultimediaResource
Current
•Open and transparent
•Collegial and collaborative approach
•Flat fee & average 12 search criteria
•Approved by partners
•Cognitive abilities, building work relations, get
things done and personal fit
•Team of 2 consultants reports to partnerMonitor
Recommendation(Comments)
•Reflects ideals of partnership
•Aligned with business strategy of customer first
•Follow bottom to top approach in strategy review
•War of talent, Formalize and review CPDR
•Use Internet to complement. Ex: Recruitment stage alone
•Hierarchical organization structure
•Approx: 1:4 - partner - non-partner
•Global network
Accountability •Partnership ensures no hoarding of information
•Partner – non-partner ratio can be altered suitably
•Not performance based & No commission
•Article submission in reputed magazine
Rewards •Organization wide implementation of BSC
• Formal appraisal and review mechanism
•Underscored the investment in Knowledge
management
Knowledge
Silo’s
•Separate document repository and management system
•No proper channelStrategy
Communication
•Open enquiry and debate
•Open email, Cubicle meet by senior partners
Source:
9 pt
framework

8. Measure and Manage Strategy
Finance Targets Initiatives/
Objectives
Wt
Average
billings per
search
$60,000
-
$120,00
0
Reinvestment
from RE
10%-
12%
Equal Profit
distribution
among
partners
60%
profit
Partnership
values
Education Targets Initiatives/
Objectives
Wt
No of Article
published in
reputed magazine
Reputed
magazine
Performance
mgmt
Contribution to
knowledge
repository
Website
and
Online
forum
Knowledge
management
Customer Targets Initiatives/
Objectives
Wt
Customer
satisfaction
index
High Flat fee, Global
network
Internet
technologies
Min
funds
Internet to
complement rather
than substitute
Vision
Clients first
Reputation for Quality
Our Partnership
Internal Target Initiatives/
Objectives
W
t
No. of searches
per employee per
year
Min
12
Partners meet at
different city
Min 2 Collegial
approach
Employee
turnover
<2% Partnership
values
Open enquiry and
debate
No
limit
Transparent
Source: Balance score
card and 360 degree
Communicating
and linking
Feedback and
learning
Translate vision
Business Planning

9. 9
Thank you
Q&A