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jerryking : turnover   9

How a private equity boom fuelled the world’s biggest law firm
June 6, 2019 | Financial Times | James Fontanella-Khan and Sujeet Indap in New York and Barney Thompson in London.

Jeff Hammes took the helm at a Chicago-based law firm called Kirkland & Ellis in 2010, with the aim of turning it into a world-beater, few in the industry thought he stood a chance.......known as a good litigation firm in Chicago with a decent mid-market private equity practice, in the blockbuster dealmaking world, however, the firm was largely irrelevant. Nobody took them seriously on Wall Street.....Fuelled by explosive growth in private equity, aggressive poaching of talent and most of all, a business model that resembles a freewheeling investment bank, Kirkland has become the highest-grossing law firm in the world.....This rise reflects the shift in the financial world’s balance of power since the financial crisis. Investment banks, the dominant force before 2008, have been eclipsed by private equity firms, which now sit on hundreds of billions of dollars of investment funds.

Kirkland thrived by hitching itself to this dealmaking activity. The firm presents with a relentless — many say ruthless — focus on growth, a phenomenal work ethic and a desire to up-end what it sees as a lazy hierarchy. Key questions: can its winning streak can continue? Will its private equity clients continue to prosper? how will Kirkland cope if and when the private equity boom ends? And can a firm with such a hard-charging culture survive in the long run?....Robert Smith’s Vista Equity has grown to manage assets from $1bn to $46 in a decade while working with Kirkland.....To establish Kirkland as a major player, Mr Hammes turned his attention to recruitment. ....poaching proven M&A experts and targeting all areas of dealmaking.....To entice the best lawyers to join its ranks, Kirkland managed to exploit a structural rigidity in its more traditional white-shoe and magic circle rivals. A dwindling but still significant number of elite firms remunerate equity partners using a “lockstep” model......
Kirkland sought rising stars in their late thirties who were at the bottom of this ladder, stuck in the queue for the highest share of profits. Part of its pitch was money — “With compensation, we can go as high as we want,” says one partner — but the other part was an almost unprecedented level of autonomy.
Big_Law  booming  business_development  Chicago  compensation  concentration_risk  dealmakers  deal-making  eat_what_you_kill  financial_crises  growth  hard-charging  high-end  hiring  howto  hustle  Kirkland_Ellis  law  law_firms  litigation  mid-market  organizational_culture  poaching  private_equity  recruiting  Robert_Smith  superstars  talent  turnover  Vista  Wall_Street  winner-take-all  work_ethic  world-class 
june 2019 by jerryking
Helping Bosses Decode Millennials—for $20,000 an Hour - WSJ
By Lindsay Gellman
Updated May 18, 2016

Millennial issues also have become a source of income for a host of self-anointed experts who say they can interpret young workers’ whims and aspirations—sometimes for as much as $20,000 an hour. Oracle, Red Robin Gourmet Burgers Inc. and Time Warner Inc.’s HBO have retained millennial advisers to stem turnover, market to young people and ensure their happiness at work......
generational_change  generations  millennials  turnover  Communicating_&_Connecting 
october 2017 by jerryking
The Angst of Endangered CEOs: ‘How Much Time Do I Have?’ - WSJ
By Vanessa Fuhrmans and Joann S. Lublin
Updated July 5, 2017

An array of challenges—from increasing impatience on Wall Street and in boardrooms to a corporate landscape rapidly transformed by new technologies and rival upstarts—have made the top job tougher and more precarious than just a few years ago, top executives say.
CEOs  turnover  boards_&_directors_&_governance  unsentimental  Joann_S._Lublin  endangered 
july 2017 by jerryking
Wall Street to CEOs: Disrupt Your Industry, or Else
May 26, 2017 | WSJ | By Christopher Mims

Investors and boards are hunting for corporate leaders who can move quickly to fend off upstarts and place big bets on disruptive tech.......For pretty much any industry you can name—not just autos but manufacturing, logistics, finance, media and of course retail—there are tech startups purporting to have better ideas, ones they say they don’t need decades to make into realities. It isn’t as if all these industries will see massive CEO turnover, but it does mean established companies need to consider drastic measures. They must be willing to tell their stakeholders they may have to lose money and cannibalize existing products and services, while scaling up new technologies and methods.

“Ten years ago, innovation was based on features and functions,”. “Now it’s about your business model and transforming your industry.”

Before, companies could innovate by acquiring tech startups. But the top disrupters now grow so quickly and capture so much market share, they become too valuable to buy or are unwilling to sell.....Act faster to satisfy shareholders.....Mickey Drexler, CEO of beleaguered J. Crew, admitted that if he could go back 10 years, he might have done things differently, to cope with the rapid transformation of retail by e-commerce. Who then would have predicted that in 2017, the No. 1 online retailer of clothing to millennials would be Amazon?....CEO turnover isn’t necessarily the only solution on the table....Companies also have to incubate potentially disruptive startups within their own corporate structures. This means protecting them as they develop, and being willing to absorb their losses for as long as their competitors do. Consider, for example, that Amazon made almost no profit for its first 20 years..... Wal-Mart’s e-commerce division increased sales 29% from a year earlier. Many analysts thought the company overpaid for Jet.com, which cost it $3.3 billion in August 2016. But the acquisition brought e-commerce veteran Marc Lore, who became chief executive of Wal-Mart’s online operations and quickly replaced existing executives with members of his own team.
analog  business_models  CEOs  Christopher_Mims  disruption  e-commerce  leaders  LVMH  operational_tempo  risk-taking  transformational  turnover  Jet  Wal-Mart  Wall_Street 
may 2017 by jerryking
Korn/Ferry’s CEO: What Boards Want in Executives - WSJ
By LAUREN WEBER
Dec. 9, 2014

Korn/Ferry has been trying to boost its business in talent management, offering recruiting and development tools aimed at professional employees....Korn/Ferry’s slow transition by acquiring leadership-development firms like PDI Ninth House and Global Novations LLC, and converting its bank of knowledge about executive careers into a portfolio of products that organizations can buy or license, from interview guides to software that helps managers identify and cultivate high-potential employees.

Mr. Burnison: For the boardroom or the C-suite, the technical competencies are a starting point. What we’ve seen through our research is that the No. 1 predictor of executive success is learning agility. So we want to get a real line of sight into a person’s thinking style and leadership style. Right now, you’re seeing me how I want you to see me. What you really want to know is “How does Gary make decisions under pressure?”

WSJ: What is learning agility?

Mr. Burnison: It comes down to people’s willingness to grow, to learn, to have insatiable curiosity. Think about the levers of growth that a CEO has. You can consolidate, or tap [new markets], or innovate. When it comes down to the last two, particularly innovation, you want a workforce that is incredibly curious.
Korn_Ferry  executive_search  boards_&_directors_&_governance  CEOs  talent_management  turnover  executive_management  learning_agility  adaptability  C-suite 
december 2014 by jerryking
High-Tech Chiefs Keep One Eye on the Door
August 30, 1996 | The Wall Street Journal | By Joann S. Lublin
Staff Reporter of The Wall Street Journal.

High-technology companies are replacing their CEOs much more frequently than in other industries. Novell, AST Research and Quarterdeck replaced their CEOs in the week ending Aug 30, 1996. Borland International and Sybase replaced their presidents and CEOs in July, America Online and Syquest Technology replaced theirs in June. The high turnover rate is blamed on the rapid fluctuations in the finances of these organizations, combined with increased investor concerns and the pressures of running companies competing in quickly changing markets. The financial repercussions of replacing a CEO can have a marked effect on a company. The replacement CEOs are frequently paid 30 percent to 50 percent more than their predecessors, although some executives trade the high salaries for a significant percentage of the company. The rapid rate of CEO turnovers is unlikely to slow in the near future. As many CEOs leave their positions on their own volition as those who are fired.
Joann_S._Lublin  CEOs  high_technology  Silicon_Valley  turnover  boards_&_directors_&_governance 
december 2012 by jerryking
Higher turnover level changing the face of corporate boards in Canada - The Globe and Mail
Feb. 20 2012 | G&M | JANET MCFARLAND

Boards are adding more people with specific industry expertise – rather than business generalists – as well as more first-time directors and far more female directors, according to a new study of 100 of Canada’s largest company boards by executive search firm Spencer Stuart.
boards_&_directors_&_governance  women  turnover  expertise  industry_expertise 
july 2012 by jerryking

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