RECRUITMENT AND SELECTION OF NON-EXECUTIVE DIRECTORS

In the course of time many companies are confronted with the question where the present management team meets the business requirements of the future and is prepared to successfully manage the challenges of increasing business complexity and competition. Without doubt the top management has been gaining valuable experience as to the performance of the executives of the company over many years.

However, usually there is the distinct in-house and subjective appraisal perception of the individual managers. Furthermore each company has been creating its own specific culture over many years which makes judgement sometimes difficult. State-of-the-art top executives have realized the relevance of management audits to clearly display the track records of their core team members.

The accomplishment of systematic management audits are very often caused by major changes in the businesses as such

1. Change in Top Management

It is most useful for the Managing Director or CEO joining a new company to get the objective and qualified picture as to the strengths, chances and risks of his management team.

2. Mergers & Acquisitions

The accomplishment of management audits represents the objective as well as credible tool to identify the best qualified managers out of competing management teams.

3. Succession Planning

Both internal and external candidates are audited to choose “the best”.

4. Restructuring/Strategic Alignment

Drastic dynamics in business bring about vital risks and chances. The success of the corporation does depend on the performance and potential of the complete executive team.

By using the tool Management Audit risks will be minimized and changes exploited.

HOW TO DEFINE MANAGEMENT AUDIT

Management Audit is the systematic recognition, analysis and assessment of competencies and the actual behaviour of both individual executives as well as complete executive teams particularly with regard to the business' strategic requirements.

The basis of Management Audit is structured interviews and reference checks conducted by external experts to be documented in expert opinions.

Management Audits focus on personal attributes and business skills.

Personal attributes can be subdivided into:

+ Ethical values and attitudes
+ Intellectual Capability
+ Charisma

Business skills can be subdivided into:

+ Professional and methodical competencies
+ Leadership behaviour
+ Entrepreneurship

As psychological tests cannot adequately cope with above mentioned criteria (issues) the Management Audit should be conducted by experienced and well-trained interviewers. It is the objective of the process not to assess the individual manager in isolation but in context to their competitors and comparable roles outside the company. This benchmark information is most valuable and delivers conclusions as to the effectiveness of the management team.

THE AUDIT TEAM

Normally the Management Audit Team consists of two Executive Search Consultants. It is prerequisite to the success of the process that the consultants involved are industry and management- as well as executive search experienced. They must be capable to understand the client's business and strategy and the need to have a good view as to the market and competitive scenario.

It is important to give clients and candidates confidence and trust in process and people. If these preconditions are met, Management Audits will bring remarkable added value to companies.