This short essay is based on an Harvard Business School article published 2004 “Strategic Review at Egon Zehnder International (A)” by Morell & Nanda. Egon Zehnder’s strategy resonates mainly between two poles: “Clients first” and the “One firm partnership concept”. Like the earthly poles, there lies a field in-between and both poles might over the years also shift (if not switch one day). The internal focus clearly impacts the way Egon Zehnder is perceived (from different stakeholders in different ways of course) and the people who now became partner (through a strict selection process) talk to the clients in a way that clients feel “really being first”. Looking at the current partners of Egon Zehnder they all have a solid background and worked for top notch fortune 500 companies, so it seems to be fair to assume that they speak the language of the clients and might often know their customers from previous jobs or business schools they attended.
At a glance
- Grade: 1.0 (1.0 is the best grade)
- Based on the Harvard Business School case “Strategic Review at Egon Zehnder International (A)”
Contents
I . Identify EM’s mission strategy
II. What are EZ’s competitive advantages
III. What is the purpose of revisiting its strategic mission?
IV. What actions would you suggest to consolidate EZ’s mission, secure its positioning in the face of its competitors and sustain its international expansion?
Objectives and Themes
This essay examines Egon Zehnder’s strategic mission and competitive position using a Harvard Business School case as its starting point. It asks why the executive search firm should revisit its mission and what actions might support its positioning and international expansion.
- Client service and the one-firm partnership concept
- Partner selection, compensation and turnover
- Competitive advantages and geographical positioning
- Strategic review and organizational change
- Digital transformation and international expansion
Excerpt from the Book
II. What are EZ’s competitive advantages
To come back to the earlier “pole allegory”: At EZI in the late 1990s approx. 20% of its consultants were McKinsey alumni, which guarantees a certain analytical approach to fixing clients search demands while at the same time only the name “McKinsey” might incite a presumption of quality. The rigorous selection process (which is “accidently” not a secret...) helps to portray Egon Zehnder as a place where people (partners, researchers) understand the clients and speak their language.
The fact that partners are paid equally and not based on their (short term) success only, might also help the partners to feel less stressed and might give them room to go for the best candidate. As always two partners work on one case, so clients can rest assure that even through a holiday period or other interruptions the quest for the best potential candidate remains intact and uninterrupted. Beside that partners are expected to basically stay with Egon Zehnder once they have passed the 20+ interviews etc. forever, this results in a very low turnover rate. This low turnover rate may be seen as strength, for example clients “know” their counterpart maybe for decades, at the same time the partner staying with Egon Zehnder can become “owner” / master of their field, as they neither need to fight for promotion nor worry about their salary that much.
The other side of a low turnover is little motivation to “fight”, lesser fresh blood (i.e. new ideas / approaches). While one may argue that a turnover of 10% is healthy (Why a Low Employee Turnover Rate Isn’t Necessarily a Good Thing | ITA Group, n.d.) the Egon Zehnder turnover rate being lower than 2% indicates some sort of inbreeding that cannot produce the best results in a fast changing business world.
Another point that might not be overlooked is the “Swissness” (suisitude), that helps to evoke feelings at clients that Egon Zehnder is solid, reliable and stable. Egon Zehnder in terms of culture and simply the regional distribution of offices (in the year 2000) seems to be Euro centric. It was at that time underrepresented in the USA and other regions with revenues still mainly flowing in from western Europe (12 years after the iron curtain came down with almost no presence in the eastern or central part of Europe).
Chapter Summaries
I . Identify EM’s mission strategy: The essay discusses the firm’s client-first approach and one-firm partnership concept, relating them to its culture and customer-centered vision.
II. What are EZ’s competitive advantages: The author considers partner selection, compensation, low turnover and Swiss identity, alongside questions about geographic concentration and strategy.
III. What is the purpose of revisiting its strategic mission?: This section explores the tension between organizational stability and change and proposes a strategic health check.
IV. What actions would you suggest to consolidate EZ’s mission, secure its positioning in the face of its competitors and sustain its international expansion?: The author considers organizational change, digital recruitment processes, a possible digital business unit and expansion into new markets.
Keywords
Egon Zehnder, strategic review, executive search, corporate mission, competitive advantage, partnership, client service, employee turnover, organizational change, digital transformation, recruitment, international expansion
Frequently Asked Questions
What is this essay about?
It examines Egon Zehnder’s strategic mission and competitive position through a discussion of a Harvard Business School case.
What are the central themes?
The essay addresses client service, partnership culture, competitive advantage, strategic change, digital transformation and international expansion.
What is the main question?
The author asks why Egon Zehnder should revisit its mission and what actions could support its competitive positioning and international growth.
What method does the author use?
The essay uses a case-based strategic discussion, drawing on the Harvard Business School case and additional published sources.
What does the main discussion cover?
It considers the firm’s mission, partner model, competitive advantages, reasons for strategic review and possible actions for future development.
Which keywords characterize the work?
Key terms include strategic review, executive search, partnership, competitive advantage, digital transformation and international expansion.
How does the essay discuss the partnership model?
It considers partner selection, equal compensation and low turnover in relation to client service and organizational change.
What role does digital transformation play in the discussion?
The author considers digital recruitment processes and the possibility of a separate digital business unit as part of the firm’s strategic development.
- Quote paper
- Guenther Klein (Author), 2021, Egon Zehnder’s strategic review freed from dust 20 years later. Hindsight is easier than foresight, Munich, GRIN Verlag, https://www.grin.com/document/1142084
