A leading logistics company is hiring a CEO and a headhunter has asked
me to interview. I have never worked in the logistics industry
before.
I need help to identify points which I should use to pursuade the firm
that (1) even though I has never worked in the logistics, I am a good
prospect for them , even probably better than a person who has
logistics experience - here are areas I want to use to defend my point
(a) an outsider give a fresh air to the firm and (b) my past
experience and skill is relevant to them. You may add addition points
if you think is relevant.
My brief work experience:
1. 8 years in investment bank industry, with 7 years in private equity
investment and concurrently in the corporate finance advisory
2. Helped found a direct investment, corporate finance and brokerage
house; in addition to my role as direct investment management, also
assisted the CEO in the daily operation of the firm (the firm had a
COO but the CEO trusted me and so also seek advise from me). The firm
failed and closed down due to over expansion but the expansion
decision was outside my control and I have objected the expansion;
3. Investment Manager of a conglormate's in-house investment team for
its PRC's project investment
4. 2-year Management consultant experience and have engaged in major
infrastructure and logistics investment industry but it was about 12
years ago
In addition to the $30 fee, I will provide a $10 bonus if I found the
answer is good, especially if it is useful for me to explain why the
firm should hire someone who have never been in their industry. This
$10 bonus is provided since I can use this answer as a basis to find
the CXO join in other firms which I have never worked in their
industry |
Request for Question Clarification by
fons-ga
on
17 Nov 2002 01:29 PST
Hi Kwokfai,
This seems an interesting challenge, also helping you out is a bit of
a challenge.
Could you tell us a bit more on what part of the supply chain your
candidate-company is working? Logistics is a rather broad field, and
it would be helpful to know what kind of activities this company has
as its core competence.
Also the locating is rather important: you have an Asian name. I know
what here in China there is a shortage for logistical managers; that
might be reversed in economies that have a bit of a problem.
Could you give us a bit more?
Thanks,
Fons
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Clarification of Question by
kwokfai-ga
on
17 Nov 2002 04:03 PST
The company is an international 3rd party logistics company (“3PL”)
with major revenue sources derived from 3PL services. While the
company is an international logistics operator, it current job opening
will need to focus on its Hong Kong and China warehousing and
logistics operations. In terms of its facilities in Hong Kong and
China, it has provide contract logistics, distribution centres,
international air and sea freight forwarding, transportation,
distribution and value-added services. Its’ customers demand high
value and services quality.
In terms of my experience, I have to provide additional information
regarding my China experience. During my last 8 years at the
investment bank, I have focused on North and South Asia (regional
focus) but have not done a single deal in China (but I have done
several deals in Hong Kong). However, during the last 3 years at the
conglomerate, I have focus exclusively on the corporate development of
the Chinese market. For the Chinese market where “relationship” is
the key, 3-year is a short time but fortunately, my boss (managing
director of the conglomerate) has very strong contact in China and
through his contact, I was able to gain relationship in a accelerated
pace and my contact include with very senior people in the
telecommunication regulatory bodies, CXO of Unicom, China Telecom,
China Mobile, senior members of the military, and the China State
council. As such, for many approvals and licenses which normal need
years to be granted, I can get it in less than one year. I also have
indirect contact with key people of the Shanghai and Beijing
government.
Hope the information will be useful to you. Yet, apart from my
experience, I still am interested to find reasons why a 3PL firm would
hire a person with no 3PL background as its CEO.
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Clarification of Question by
kwokfai-ga
on
17 Nov 2002 04:18 PST
I have increased the professional service fee to $40. For those who
provide me a good answers which address why (1) my skill & experience
matches the 3PL company and (2)why they need to hire an outsider
In addition, I am willing to provide additional bonus of $20 (not $10)
to those who can provide more details on why an employer in general
should hire an outsider like me who have been investment banker
(generalist but with high skill in high tech and IT investment) and 3
years of (high tech & telecom)corporate development for a major
conglomerate (one of the top 10 conglomerates in Asia) - which should
be regarded as both a high tech and a generalist. I offer this extra
bonus since this answer will be useful to me to look for jobs at other
firms. Many thanks.
|
Dear Kwokfai,
This is a venerable challenge for you - and me.
It is very clever of you to bring your dilemma into
an innovative arena like this, where you have the
benefit of input from people all over the world, with
a variety of corporate experiences.
And that is exactly the kind of thinking that a CEO
needs to exhibit.
1) It is not a CEO's job to micromanage the company.
It is a CEO's job to have the vision to see the long
term, to spot potential obstacles to growth, and to
find the innovative paths to enhance the company's goals.
2) A CEO does not need to do the minutiae of the job.
It is the CEO's function to identify the best lieutenants
to manage the enterprise and bring the CEO critical information
about the company's activities.
3) A CEO coming from the logistics industry will know all
the right things, all the routines, all the standard,
expected methods, venues and operations. That's why they
will keep making the same mistakes, and miss the same
opportunities that others in the industry have missed.
4) Someone with general business experience will be able
to bring fresh eyes to the business and see some potential
efficiencies to bring to the operation that can be adapted
to the logistics industries.
5) What is even more important than all that?
The experience in China and the contacts. The contacts in
the telecommunication regulatory bodies top echelons are
priceless. The logistics industry's lifeblood is rapid
communications so that all shipments can get through all
channels with the minimum of trouble and the maximum
amount of tracking to be able to identify products and
shipments at any stage of storage or delivery.
If those contacts can help the Logistics company cut their
costs by as little as 5%, that will more than pay your
modest salary for many years to come.
6) Understanding the customs, practices and diplomacy
of dealing with people in China is paramount. It makes
all the difference between harassing employees to get
something done right now - or knowing when it's wise to
wait for the right moment - thus getting a negotiation
or action completed in the right way, at the right time.
You gain the respect of your customer, government agent,
etc. - and next time, they smooth the way for you.
7) One of the most significant US Presidents of the
20th Century was Ronald Reagan. An actor. He had no
government experience before he became governor of
California. The voters were so impressed with him as
governor, they voted him into the presidency. Twice.
If you want more ideas, just let me know.
I'll try to dream up some more for you.
Good luck on the job interview.
Some extra tips?
Remember to appear quite confident,
but not arrogant.
(Do some research) Learn enough about the company
to ask at least two questions that hint about
some potential problems or roadblocks.
(If possible, visit some of their warehouses
or shipping operations and listen to the crew
talking around the roach coach (or equivalent).
(In the course of performing certified audits,
I learned more about the company's real issues
by just hanging around the rank and file employees
and listening to them gripe. It was a lot of fun,
but it really got me into trouble with my bosses.
They really didn't want that information to appear
in the audit reports.)
If there are unions or trade unions involved, or
publications in the industry, read some articles
that provide an innovative idea or two, just so
you can toss something out, casually, during the
interview.
Just some thoughts that may get you their attention.
Your TaxMama-ga |
Request for Answer Clarification by
kwokfai-ga
on
20 Nov 2002 00:12 PST
Dear Taxmama
Thanks for your answer.
I like the way at your opening, not that you said I am clever, but how
you link the benefit of using Google answers as one reason why an
outsider CEO would be good.
Back to your answer, I would be grateful if you could further address
the followings (I am sure you will be rewarded fairly):
1. Linking my prior job experience with the current potential opening
(in addition to my contact in the telecom sector), one area may be my
VC/private equity experience – I did once posted a clarification
regarding how my private equity investment experience may be useful
(and I believe it is truth and just figuring out how I should put it
would yield the best reception), I didn’t know why that clarification
haven’t shown up (probably I click the wrong button…). I would be
grateful if you could elaborate a couple of points in this area.
FYI, through my 8 years of VC & private equity experience, (1) I had
chances to look at and evaluate over thousands of companies and after
every exercise, irrespective of whether I recommended the companies as
our investment candidate or not, I kept track of what happened to
them, to learn from my mistakes – why I would have thought a company
was bad if it turned out to be a highly successful company, was it my
problem or was it just the risk-adjusted return issues where I
originally had expected the company may succeed but just the risk was
too high that I rejected it? Even if the company I rejected finally
did fail, I love to check whether the real reason the company failed
was due to the problem I anticipated. For companies I recommended, if
it failed, I definitely have to hold responsible, but even if it yield
a very good return, I still have to check whether I have made a right
call for the wrong reason.
Through this continue 8-year of learning exercise, I did learn to see
problems in company where insider doesn’t know since companies in
seemingly unrelated industries actually share similar problems (apart
from general issues such as over-leverage, over expansion) where
insiders would think they are not relevant to them (eg a high tech
company may neglect the customer care, customer need or marketing).
Over the past year, I am very proud of my ‘predictive’ power which
seems to be quite accurate – I can tell the exact reasons why some
companies would fail and some would be successful. The potential
problem is that the logistics company would be better off by hiring me
as a one-time consultant. Yes, the company will continue to face
different problems and continue hiring me as a business consultant may
not be economical. But I lack the actual operation-related management
experience which some of my candidates may have, so one way to answer
it is to think of something to distract the interviewer, or there may
be other reasons which you may suggest, or you may argue my
interpretation may be wrong and you may think the problem I mentioned
is not a problem at all. I am very open, please feel free to comment.
2. In terms of the general reasons (reason other than my experience)
why it may be good for a logistics company to hire an outsider. I
would be grateful if you could elaborate with some examples preferably
relating to the logistics sector.
Many thanks.
|
Clarification of Answer by
taxmama-ga
on
20 Nov 2002 16:33 PST
Dear Kwokfai,
Good to hear from you.
With respect to my comment about using Google,
one reason it was clever of you to do so is, it's
still new. Most people don't even know about the
resource. That you do, shows how you are keeping your
eye out for new resources in general.
Let me see how I can address your additional queries.
1. Linking my prior job experience with the current potential opening
(in addition to my contact in the telecom sector), one area may be my
VC/private equity experience. But I lack the actual operation-related
management experience which some of my candidates may have,
Frankly, operation-related experience is a dime a dozen. They can
hire anyone with experience in day-to-day operations. But there are
few people with the financial understand and across the board
experience
you've developed by studying and working with the many companies you
have.
The truth is, most of the real operations of companies are really
taken care of by the secretaries and the clerks. They are the ones
who know where the files are, the contact information for all vendors,
customers and employees. THEY are even more critical than the
mid-level
managers and executives. Just try running your office for one day
without
your secretary!
So, you can get them past that issue rather quickly.
Besides, the VPs and upper managers are still there.
The day-to-day operations of the company will continue
even without a CEO. The CEO is needed for the company to
do more than simply operate or subsist. You're there to
guide the company's brand; build it's reputation in the
marketplace; make an impact on the world.
Anyone can simply 'operate' the company.
But, what an interesting twist you put to all that VC experience!
You didn't simply evaluate the companies, accept or reject and
move on. You studied the results, in both sets of populations.
So, use these arguments.
a) The eight years that you spent studying companies was invaluable.
It has helped you, as a CEO, to hone your perceptive skills so
that you are able to identify potential problems in the various
aspects of your new employer's operations, before they actually
become problems. It enables you to guide the various departments
in the company towards more constructive areas.
b) The experience evaluating and financing so many companies
gives you the vision to see synergies between Logistics Co
and other industries. You can help forge partnerships and
identify new client bases they've never considered.
c) Your experience in the banking industry will be a real blessing
to them. You understand when and how to raise funds for expansion
and improvements. You understand the ramifications and clauses in
financing and representational contracts. You would never let your
company or division be locked into an exclusive financing arrangement
with a company that doesn't produce.
(For instance, in the WSJ, I read about an airline that didn't get
approved
for government funding. It turned out a client of mine was stuck
because
they couldn't pay her. I have a friend who found a team of private
investors ready to fund the airline. But, the airline had an exclusive
contract with a funding group that required THEM to get paid no
matter
who raised the money. They wouldn't back down. Naturally, my contact
wasn't going to do the deal without getting paid. The airline's
bankers
had no money sources of their own. So the airline did not get any
money
for new planes. YOU will never put your company into a position like
that.)
d) As a banker, you have a good understanding of the treasury
function.
So you know how to get the best returns on standing funds, using
sweeping,
short term loans, etc. You understand about arbitrage and can guide
your
finance department in ensuring that you make the best hedges on
currencies
you need to using in your international operations.
Incidentally, you may want to re-read your own words to me.
You were quite eloquent:
"Through this continue 8-year of learning exercise, I did learn to see
problems in company where insider doesn't know since companies in
seemingly unrelated industries actually share similar problems (apart
from general issues such as over-leverage, over expansion) where
insiders would think they are not relevant to them (e.g. a high tech
company may neglect the customer care, customer need or marketing).
Over the past year, I am very proud of my ‘predictive' power which
seems to be quite accurate – I can tell the exact reasons why some
companies would fail and some would be successful."
2. I would be grateful if you could elaborate with some examples
preferably relating to the logistics sector.
Well, let me preface by telling you that this is not my area
of expertise. But...that's never stopped me before.
a) In the course of studying for my Master's Degree in International
Business in the late 1970's, the one class that really stood out was
the day we had a speaker from Consolidated Freightways (who, sad to
say, just filed for bankruptcy protection). He told us something that
has always stayed with me. This speaker pointed out that since his
company was in the business of shipping things from the US to
companies
overseas, they had contacts with buyers overseas. His bit of advice
was
that if we ever wanted to get into exporting or importing, be sure to
start our research into the marketplace and customers with
international freight forwarders.
Are you beginning to see an entire marketing area you could propose
during your interview? Deliberately build a marketing-directed
database
of shippers, shoppers and raw materials.
You can provide a value-added service to their existing outbound
shippers
by alerting them to new vendors, better manufacturers, sources of raw
materials.
You can provide a value-added service to their existing importers by
letting them know if you have better sources for their products.
I know that many logistics companies do this on an informal basis.
Perhaps it's time someone took this incredible source of information
and using information technology refined it into a deliberate
'product'
or service for the company.
b) These days, security is a big issue. Think back on your experience.
Is there anything you have learned, or any companies that you studied,
that have developed products, ideas or tools to help enhance security
while reducing costs or holding them firm? Understand that shipping
companies are serious potential targets for terrorists and thieves.
Often, from the inside. So what can you offer to speed up the process
of identifying new hires and doing background checks. (Your
telecommunications background should be able to help with that.)
A friend is a school bus driver in one of the largest school districts
in the USA. He tells me that his school district, due to hiring
shortages,
has started to train their own drivers. Oddly enough, they start
training
them even before their Department of Motor Vehicle clearances come
through.
Only to find at the end of the course that more than half the drivers
can't be hired due to their driving records or other blemishes in
their
police files. Getting that information up front would save the
district
a fortune. I understand that this kind of problem affects the whole
trucking industry, since it takes so long to get records. This may not
be a problem in China. But from what I know, they are famous for their
red tape.
How can your background help speed up these kinds of processes?
I hope these observations help you formulate your interview
tactics. And, please, DO let us know how the interview goes.
I will keep my fingers crossed for you. (When is the interview?)
Your TaxMama-ga
|
Clarification of Answer by
taxmama-ga
on
21 Nov 2002 14:10 PST
Dear Kwokfai,
Thank you so much for the rating and the tip.
I just wanted to leave you with one last thought.
When you go to the interview, if you want a quick, little quip
to sum up "why me instead of the logistics guy?"
Tell them this.
The person experienced in the logistics industry
can have your company, running smoothly, doing things
the way you always have. I can bring positive innovations
to your future.
And here is the quick quip:
With the experienced logistics guy, you can repeat the past.
With my broader experience, you have an enhanced future.
Good luck!
Your TaxMama-ga
P.S. For instance: an Executive with a different background?
Peter Ueberroth went from the transportation industry to
running the Los Angeles Olympic Games - and making it profitable.
Then, on to Baseball Commissioner.
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3 Comments
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