Egon Zehnder International Case Study
Egon Zehnder International
IB 207
10/11/2010
Dr. Neelankavil J.
Amit Khoje
Strategic Review at Egon Zehnder International
The Problem
Egon Zehnder International (EZI) has steadily developed its reputation over 36 years. In these years, the firm carried certain values which Zehnder – the founder of the firm – thought were the building blocks of the firm and should never be compromised. But as the search industry has undergone dramatic changes in recent years, and also internally the company leadership is being transferred to the new younger generation, there were voices raised that the firm needs to change its values, strategies and ultimately business model to advance further in the business. Members of the executive committee are thinking if strategic review would weaken the firm’s commitment to its successfully proven 36 years business model or the change is real necessary.
Strengths
1) Clients First:
Considered as one of the corner pillars of the company’s distinguishing characters, is the importance to clients. Clients always came first before the firm’s interests. Hence unless clients’ interests are fulfilled, the firm would never look for its profit. To bolster clients' interest more than the firm’s, in contrast with the industry pricing policy, EZI adopted ‘fixed – fee policy’; usually 33% of the candidates expected annual compensation. This removed the conflict between the firm’s interests in hiring most expensive candidate versus the best fit candidate. Sometimes EZI feels that they are undercharging their clients. Clients also recognize that the flat fee encourages EZI to find the right candidates who will stay and benefit the clients in a long term. EZI hopes that this recognition will make the clients come back to EZI in future with other assignments.
2) Reputation for Quality:
EZI has built its reputation in the industry over 36 years. With its high brand value and trust in clients it has developed, EZI believes that even
IB 207
10/11/2010
Dr. Neelankavil J.
Amit Khoje
Strategic Review at Egon Zehnder International
The Problem
Egon Zehnder International (EZI) has steadily developed its reputation over 36 years. In these years, the firm carried certain values which Zehnder – the founder of the firm – thought were the building blocks of the firm and should never be compromised. But as the search industry has undergone dramatic changes in recent years, and also internally the company leadership is being transferred to the new younger generation, there were voices raised that the firm needs to change its values, strategies and ultimately business model to advance further in the business. Members of the executive committee are thinking if strategic review would weaken the firm’s commitment to its successfully proven 36 years business model or the change is real necessary.
Strengths
1) Clients First:
Considered as one of the corner pillars of the company’s distinguishing characters, is the importance to clients. Clients always came first before the firm’s interests. Hence unless clients’ interests are fulfilled, the firm would never look for its profit. To bolster clients' interest more than the firm’s, in contrast with the industry pricing policy, EZI adopted ‘fixed – fee policy’; usually 33% of the candidates expected annual compensation. This removed the conflict between the firm’s interests in hiring most expensive candidate versus the best fit candidate. Sometimes EZI feels that they are undercharging their clients. Clients also recognize that the flat fee encourages EZI to find the right candidates who will stay and benefit the clients in a long term. EZI hopes that this recognition will make the clients come back to EZI in future with other assignments.
2) Reputation for Quality:
EZI has built its reputation in the industry over 36 years. With its high brand value and trust in clients it has developed, EZI believes that even