An Overview of Executive PipeliningAn Overview of Executive Pipelining

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What is executive pipelining?What is executive pipelining?

Executive Pipelining is a process by which experienced executive recruiting Executive Pipelining is a process by which experienced executive recruiting professionals identify, assess and introduce market talent in support of a clientprofessionals identify, assess and introduce market talent in support of a client’’s needs.s needs.

• At the direction of the client, the team buildsAt the direction of the client, the team builds a pool of market talent based on select a pool of market talent based on select criteria. criteria.

• Individuals are assessed and qualified basedIndividuals are assessed and qualified based on experience and multi-point referencing on experience and multi-point referencing from peers, ex-coworkers and top senior from peers, ex-coworkers and top senior level recruiting partners. level recruiting partners. (Spacebar to advance)

These These ““starsstars”” are introduced to clients to are introduced to clients to address current and future needs, including address current and future needs, including

• Succession Planning (Long-term Needs)Succession Planning (Long-term Needs)

• Unplanned Vacancy (Immediate Needs)Unplanned Vacancy (Immediate Needs)

• Relationship Development (Deals, Partnerships)Relationship Development (Deals, Partnerships)

• Market Intelligence (competitor, M&A, Due Diligence)Market Intelligence (competitor, M&A, Due Diligence)

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Pipelining vs. Executive SearchPipelining vs. Executive Search

CommentComment

• Retainer based onRetainer based on

• Active projects per feeActive projects per fee

• Success fee upon hireSuccess fee upon hire

• Peripheral intelligence projectsPeripheral intelligence projects

• Who owns the data accumulatedWho owns the data accumulated

• Delivery VehicleDelivery Vehicle

• Addresses immediate vacancyAddresses immediate vacancy

• Addresses long-term succession planningAddresses long-term succession planning

• Introduces peripheral talent & networkingIntroduces peripheral talent & networking opportunities opportunities

• Tracks longer-term potential talentTracks longer-term potential talent

• More hires lowers cost-per-hireMore hires lowers cost-per-hire

PipeliningPipelining Executive SearchExecutive Search

Time/ResourcesTime/Resources Hire Hire’’s compensations compensation

Up to threeUp to three One One

$7,500$7,500 True-up (compensation) True-up (compensation)

IncludedIncluded N/A N/A

ClientClient Search firm Search firm

Dedicated database Dedicated database Mail or emailMail or email

YesYes Yes Yes

YesYes No No

YesYes No No

YesYes No No

YesYes No No

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Historical FactsHistorical Facts

• Since we began offering pipelining services in 2006 Prospect City has Since we began offering pipelining services in 2006 Prospect City has nevernever lost a client. All lost a client. All remain active today. In instances where we were matched against search firms we remain active today. In instances where we were matched against search firms we’’ve always ve always won. (As a result some clients have eliminated search firm use entirely) won. (As a result some clients have eliminated search firm use entirely)

• Our long-term client partnerships create in a better understanding of cultural issues and relevant Our long-term client partnerships create in a better understanding of cultural issues and relevant market issues, resulting in progressively faster completions and a higher-quality deliverable. market issues, resulting in progressively faster completions and a higher-quality deliverable.

• Because we charge for time and not candidate compensation, more frequent hiring results in a Because we charge for time and not candidate compensation, more frequent hiring results in a substantially lower cost-per-hire. substantially lower cost-per-hire.

• Traditional search firms successfully complete less than 70% of projects. While one in three Traditional search firms successfully complete less than 70% of projects. While one in three projects fails, most executive search firms collect all of their fees within the first three months. All projects fails, most executive search firms collect all of their fees within the first three months. All of the risk is carried by the client. of the risk is carried by the client.

• Average completion time for traditional executive search firms is 124 days. While we strive to Average completion time for traditional executive search firms is 124 days. While we strive to beat it, we guarantee that our close partnership results in a growing momentum that shortens the beat it, we guarantee that our close partnership results in a growing momentum that shortens the time-to-complete significantly. In fact, one client hired 22 senior executives in a 30 month time-to-complete significantly. In fact, one client hired 22 senior executives in a 30 month timeframe due to the momentum gained through our the partnership. timeframe due to the momentum gained through our the partnership.

• Clearly, transactional executive search has a place. Since the 1950Clearly, transactional executive search has a place. Since the 1950’’s executive search business s executive search business models remain unchanged as does the fee structure. Some hiring executives prefer a short, models remain unchanged as does the fee structure. Some hiring executives prefer a short, expensive transaction and want recruiters to go away until the next need arises. Others see expensive transaction and want recruiters to go away until the next need arises. Others see pipelining as an opportunity to invest in an talent-building source for their evolving business. pipelining as an opportunity to invest in an talent-building source for their evolving business.

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How Do We Do It For Less?How Do We Do It For Less?

We Were ThereWe Were There

• Executive recruiters rely heavily on internal researchers and associates to generate candidates Executive recruiters rely heavily on internal researchers and associates to generate candidates for them. We were those individuals. In fact, all of our team members have over ten years of for them. We were those individuals. In fact, all of our team members have over ten years of experience at prominent senior executive search firms. experience at prominent senior executive search firms.

We Hook the Fish - Clients Reel Them InWe Hook the Fish - Clients Reel Them In

• We provide about 90% of what recruiters provide. We do not travel to meet and perform in-We provide about 90% of what recruiters provide. We do not travel to meet and perform in- person interviews with prospective candidates. Instead we perform extensive telephone person interviews with prospective candidates. Instead we perform extensive telephone interviews with prospective candidates, sources and references. We require our clients to get interviews with prospective candidates, sources and references. We require our clients to get more involved in the latter stages of the process, including in-person interviews where more involved in the latter stages of the process, including in-person interviews where appropriate, selling the opportunity, and negotiating the final terms. appropriate, selling the opportunity, and negotiating the final terms.

High Profit vs. StabilityHigh Profit vs. Stability

• Frankly, executive search is a highly profitable business, with most recruiters profiting over 60% Frankly, executive search is a highly profitable business, with most recruiters profiting over 60% on each search project. We exchange higher profits for a longer-term relationship with success on each search project. We exchange higher profits for a longer-term relationship with success for our teams and for our clients. for our teams and for our clients.

Few Off-limits IssuesFew Off-limits Issues

• With longer-term relationships we can keep our client portfolio small, avoiding the off-limits issuesWith longer-term relationships we can keep our client portfolio small, avoiding the off-limits issues that large search firms face. Transactional search results in a large client base, each of which is that large search firms face. Transactional search results in a large client base, each of which is off-limits to the recruiters. How can they deliver the very best talent in such a restricted talent off-limits to the recruiters. How can they deliver the very best talent in such a restricted talent market? market?

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Delivery Vehicle:Delivery Vehicle:A secure, proprietary database is included, and is accessible from any location A secure, proprietary database is included, and is accessible from any location using a web browser.using a web browser.

Incumbent

Internal Successors

External Introduced

External Candidates

External Prospects

External Sources

ABC Company

ABC Company

Customizable to matchCustomizable to matchyour needs, including successionyour needs, including succession

Clients own all dataClients own all data

Stores and retrievesStores and retrievesdocumentsdocuments

Links to valuable webLinks to valuable webresourcesresources

Accessible via the webAccessible via the web

Solid, stable and verySolid, stable and verysecuresecure

Embedded email systemEmbedded email systemfor auto notification and for auto notification and deliverydelivery

Sophisticated reportsSophisticated reports

SA

MP

LE

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Profiles & Reports:Profiles & Reports:Users can download profiles and reports directly Users can download profiles and reports directly from the database.from the database.

SA

MP

LE

SA

MP

LE

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Service RetainerOur base retainer structure requires a $15,000/mo. fee for the first two months, after which the monthly retainer is reduced to $10,000/mo. At this rate, clients have a three-member team managing up to three active projects at any given time. The team can be redirected at the client’s discretion.

Success FeeIn the event an individual presented by Prospect City is hired or contracted by your company, we require a $7,500 success fee due upon acceptance. TechnologyBase technology is included at no additional charge. In the event the client suspends all of the Prospect City activity, the client may continue to lease the database for a fee of $1,250/mo. (unlimited users). Any additional database customization requested by the client will be performed at a rate of $150/hr. (most customization is free)

Reimbursable ExpensesNo reimburseable expenses will be incurred without permission from the client in advance.

Suspension/CancellationIn the event of complete suspension billing will cease immediately. Any outstanding invoices are expected to be paid. In addition, any active candidates are subject to a success fee for a period of 180 days. Active candidates are defined as those individuals assessed and delivered by Prospect City for the purpose of hiring. Any re-activation will NOT require any surcharges for the startup period or technology.

Pricing:Pricing:Prices are based on time and size of team and no long-term contracts are Prices are based on time and size of team and no long-term contracts are required. Clients can expand, reduce or suspend activity at any time with no required. Clients can expand, reduce or suspend activity at any time with no penalties.penalties.

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Relevant ProjectsRelevant Projects

$8B ManufacturerDuration: 12 monthsProject: PresidentResults: President

+ Young, industry-leading six sigma expert hired to build formal function

+ Formal cross-company partnership (JV) to develop best-practices in chemical mfg. across both Cos.

Cost: $153,000 (total savings over traditional recruitment=$180,000

Leading Private Equity FirmDuration: 24 monthsProject: Portfolio SuccessionResults: CEO, COO, CFO

+ Top HC CFOs in medical device mfg. led to acquisition and ongoing competitive advantage.

+ Managing Director for European Office.

+ Due Diligence for CEO, $19B Co.

Cost: $285,000 (total savings over transactional recruiter=$330,000

$30M Global Professional Services FirmDuration: 30 monthsProject: ConsultantsResults: 22 Hires

+ Competitive intelligence

+ Significant improvement in hiring process

+ Adjusted compensation structure

Cost: $400,000 (total savings over traditional recruitment=$1,150,000

$500M Technology CompanyDuration: 18 monthsProject: Talent UpgradeResults: 6 Hires

+ New role created for industry star

+ Successor to CIO

+ Technology company acquisition

Cost: $230,000 (total savings over traditional recruitment=$370,000

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TeamTeam

Robert Stein has over 27 years in senior level executive search. His employment experience includes Russell Reynolds Associates, Korn Ferry International and Crist Partners. Since he founded Prospect City in 2000, Bob has consulted for senior executive search firms, including Spencer Stuart, Heidrick & Struggles, DHR, Stanton Chase, Signium International and numerous boutiques on issues of process re-engineering, search execution, turnarounds, technology and operations. Bob has managed senior level executive search projects for numerous companies, including Wachovia, BofA, Zebra, Joy Global, Kraft, Gillette, Sun, and more.

Nancy Brereton has over twenty years of experience managing human resources and executive search. Prior to joining Prospect City in 2006, Nancy spent 8 years with a top global executive search firm, leading senior level executive searches in industrial manufacturing, consumer products and not-for-profit organizations. Prior to executive search, Nancy served in leadership development for Manufacturers Hanover Corporation and later in talent management with GTE.

Donna Skunda has more than ten years of experience in senior level executive search, serving with another leading global firm. She brings unique functional expertise in CFO, GM, CEO and CIO across all industries.

Prior to her executive search career, Donna spent 10 years leading recruitment and staffing with a global manufacturer.

In addition to the selected team members listed here, our firm has more internal resources and close, trusted relationships with numerous senior level executive recruiters, management consultants and a global network of over 1,000 recruiting researchers covering every industry, function and geographic region. These resources allow us to be flexible and responsive to our clients needs, regardless of complexity and scale.

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For more informationFor more informationcall us atcall us at

847.487.4256847.487.4256

or email us ator email us at

sales@prospectcity.comsales@prospectcity.com

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