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The largest Search Firms in the World 2006

Search-Consult, Issue 28, 2006 - 26/10/2006

Search-consult is proud to present The Largest Search Firms in the World 2006. Overall, this year the search industry remains positive and eagerly optimistic, as revenues have continued to increase worldwide. According to the AESCs most recent report, there has been an overall global increase of 9% in new searches.
Additionally, a year over year comparison showed that average net revenues were 13% higher this year. As he 'War for Talent' intensifies, the need for top talent continues to increase as clients are increasingly looking to search firms to not only find them talented executives but also ensure long lasting and perfect matches. At the same time, they are no longer just looking for local talent, but as expanding their operations globally. Therefore, they are requesting specific skills and expertise be sourced from various countries, or even globally.
Clients are requesting for search firms to be able to provide a profound understanding of the headquarters local business culture and legal framework as well as in each country where an office will operate, ensuring that their search provider fully comprehend the latest regional and global trends that affects their businesses. As a result, client relationships are evolving from a single transaction into more of a trusted adviser and strategic partner. At the same time, a shortage in supply has widened the scope of choices candidates can select from as they are becoming more actively involved in the entire search process. They are demanding quicker decisions to be made, they are thoroughly researching the prospective companies and they are determining for themselves if the opportunity
presented are compatible with their personal and professional objectives. These are exciting times for search consultants as they must work extremely hard to make meaningful interactions with both the candidate and the client, expanding their scope to be effective on an international scale.
As globalization deepens, this survey becomes paramount in identifying which firms are really going global. The objective of this annual ranking is to measure and to compare a firm's international reach, based on the number of offices that provide retained executive search services to clients. This approach, therefore, excludes lower-level recruiters that dabble in retained search, looser networks that provide services beyond human resources and most of the management consulting firms. Although our primary aim is to provide a macro panorama of the number of retained executive search firms that operate on a global basis, this survey also allows us to provide a more detailed regional focus, identifying specific firms that are stronger in certain parts of the world. The survey methodology is to ask firms to provide a breakdown of offices on this basis. Search-consult then randomly checks a sample of these responses. For those firms who do not provide data, we endeavor to verify the information sourced elsewhere.

AND THE WINNER IS ...
Now back to the results. A drum-roll please as we proceed to announce that the world's largest retained executive organization for 2006 is AIMS International, with a grand total of 88 offices. Compared with last year's ranking, AIMS International has opened up 20 new offices this year alone, with offices opening in Latvia, Germany, Brazil, Venezuela, Korea, Greater China, India and the United Arab Emirates, to name just a few. These offices have been strategically opened, depicting the firm's strong commitment to be able to serve their clients on an international scale more effectively. Roger M. Cater, President of AIMS International, said he was delighted that it had achieved the number one had achieved the number one position in search-consult's global ranking. He was particularly pleased that the increase in the number of offices worldwide had directly resulted in a significant increase in the amount of crossborder business between Partners. He added: "The challenge now is to ensure that the high level of service currently provided to clients is maintained." Cater also confirmed that the AIMS International Board had recently taken a strategic decision to significantly expand the organization's activities in both North America and Asia Pacific. "This process has already started with three new Partners about to be appointed, two in the USA and one in Australia. Further appointments will be made in the USA later in 2006."

IESF and InterSearch have particularly improved their overall ranking. In last year's ranking IESF had been 5th, with 62 offices, and today this leading network has moved up the ranks to 2nd place, with a total of 86 offices. Meanwhile, InterSearch, which was ranked 12th last year, today comes in 3rd place, with 85 offices.

Korn/Ferry and Heidrick & Struggles - in revenue terms usually found contending for the top slot - are in 6th and 8th place respectively.
Egon Zehnder has maintained 7th position while Spencer Stuart has dropped a place to 11th this year. Russell Reynolds has dropped three places to 19th position. These results are suggesting that the Big 5 Global Search Firms by revenue are not necessarily those with the largest spread of offices. The networks are demonstrating truly global reach on this criteria.

TOP RANKS FOR THE AMERICAS
In North America (which entails Canada and the United States) DHR International remains the largest search firm, with offices in 33 locations. "After realizing revenue and net income growth in 2005, we feel that the firm is positioned for even greater results in 2006," stated David Hoffmann, Chairman and CEO of DHR. "We continue to expand our presence in the US and internationally with some of the most talented search consultants in the world in order to meet the increasing demands of our clients. By adding cnsultants like Gayle Mattson to run our CEO and Board Services practice group, we have increased both our visibility in the marketplace and the number of premier searches with Fortune 500 companies.
When asked about the firm's growth prospects, David Hoffman said: We strongly feel that the best growth prospects for DHR over the next several years will be the strengthening of our positioning in the US combined with the continued development of our international presence in Europe, Asia and Latin America. " He added: "We very much hope to change the US-centric perception of our firm and we are working diligently to do so. In the past 24 months, we have opened seven whollyowned international locations in order to better serve our clients. Our strategic growth plans call for the continued expansion of DHR into new and emerging international locations over the next 24 to 36 months. We hope to double our current international coverage within the aforementioned timeframe through organic and acquisitive growth."
Following DHR is Korn/Ferry, with 22 offices. Spencer Stuart has moved up the survey to tie with Heidrick & Struggles for 3rd place, both having 18 offices. Boyden has moved up a place to 4th position boasting 16 offices in this region, while Stanton Chase International is 5th and has 14 offices in North America.
The top spot in Other America, which consists of offices based in Central and South America, goes to IESF (International Executive Search Federation), with 24 offices. IESF Joint President, Andrew Walker, who is based in London, comments: "We are delighted to see IESF leading the field in Other America through its wide spread of partner offices. Our development policy two years ago was specifically designed to grow IESF coverage in the BRIC group of countries with local professionals. Our next step is to use these as hubs for further growth in surrounding countries, providing us with further local knowledge and global reach. Not only does this enable our clients to extend their operations, but also gives us access to the real management talent that exists in the developing world." The Amrop Hever Group, who had previously held this top slot for two consecutive years, now ties with AIMS International for 2nd place, both having 11 offices. EMA Partners takes 3rd place, with 10 offices in this region. InterSearch and Stanton Chase International tie for the 4th position, both having 9 offices. Korn/Ferry takes 5th place, with 8 offices in this category. Networks and global firms continue to fiercely compete in North and South America, as the winners have proven that opening strategic offices here, coupled with hiring top quality consultants, is providing them an edge.

EUROPE'S TOP SPOT EESN (European Executive Search Network) takes the top 70 offices. The name itself hints at where this organization's strengths are. This leading network boasts a first-rate reputation that is based on local boutiques cooperating together under a trustworthy brand, partnering with clients so that they are able to succeed in their local environment as well as in every country that they expand their businesses.
Sebastian Steinbach , chairman of EESN, comments: "Size does matter: With every consultant we increase the market knowledge within Europe, and can deliver a better service to our customers. There are no 'white spots' on our European map, which enables us to advice very profoundly on each recruitment challenge. But we are still a young organization. Transnational projects still only account for about 10% of the total volume of EESN. Our growth potential is connected to a rising percentage of these projects - this leading position in size is only the precondition to increasingly winning market shares. If you think about recruiting somewhere in Europe (or China) - think EESN."
Following EESN is AIMS, who moves up a place from last year's ranking to take 2nd place with 53 offices. InterSearch, with 45 offices, takes third place. The Amrop Hever Group drops down a place to 4th, having 42 offices. IRC Recruitment takes 5th place, with a total of 34 offices in Europe. In previous years, Europe focused on Western Europe. As Eastern Europe grows more competitive, many businesses are opening offices there as search firms are mirroring their clients and setting up offices there as well. This is definitely a trend that will continue, as we wait to see which search firms can continue to be strong here.

1ST PLACE IN ASIA PACIFIC
IESF, once again, takes 1st place in South East Asia, which entails the countries that make up Asia Pacific, boasting 27 offices in this region. This prominent network is strongly committed to the principle of one member firm per country, allowing the IESF to service their international clients with the utmost professionalism while avoiding conflicts of interest that may otherwise arise. IESF Joint President, Mark Geary, who is based in Hong Kong, comments: "The IESF is delighted to learn that it is confirmed again as the No. 1 executive search and selection partnership in Asia Pacific and No. 2 globally by search-consult."
He added: "What has spurred the growth in IESF partner firms is our wide geographic coverage, which has encouraged leading country- based executive search firms to want to join IESF as they can see it is sincere about working with developing countries and these new partners will not lose their identity in one of the corporatized groups. We have also found that our clients are wanting a single provider of recruitment services in those regions of the world that are developing most rapidly - China, India, Russia, Eastern Europe and South America."
Following IESF is Boyden, who moves up the ranks three positions from last year, to take 2nd place with 19 offices. The Amrop Hever Group and Korn/Ferry remain in 3rd and 4th place, with 16 and 15 offices respectively. IIC Partners takes 5th place with 15 offices in South East Asia. This region continues to attract foreign investment and businesses, as a few of the top emerging markets can be found here.
The shortage of top talent in this region has intensified the War for Talent, as search firms must compete fiercely to attract and attain outstanding executives for their clients, aggressively sourcing local and international candidates. At the same time, these same sets of challenges can be found on a global scale as the results of the Largest Search Firms in the World depicts how dynamic and proliferated executive search really is.
This survey has clearly identified that for 2006, once again, the networks are demonstrating their global reach, based on the total amount of offices that provide retained executive search. The fact that networks can upscale more quickly, adding existing reputable and local businesses, is definitely an important factor that comes into play.
Another interesting point to highlight is that no firm this year appeared on all four of the regional rankings, depicting how diversified and competitive each region really is.
The Amrop Hever Group and Korn/Ferry came closest, appearing within the three of the four regional surveys.
As competition continues to heat up firms must analyze how to best service their clients, especially on an international scale. The options are endless. What is definite is that - just like this year's results - many changes will take place as the search industry continues to be vibrant.
Can the top firms consolidate their place for another year? We will have to wait and see. In the meantime, congratulations to all the firms that have appeared within this year's top rankings, showing their regional and/or global edge.

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