Archive for January 2011

Super Bowl economy

January 28, 2011

Super Bowl XLV is the biggest single sporting event and will take place on February 6, 2011,  at Cowboys Stadium in Arlington, Texas, between Pittsburgh Steelers and Green Bay Packers. It will be a tough game with highs and lows. The better one shall win!

In the world economy it is getting to a super bowl of its own kind between the existing champion, the USA, and the rising rival China. The population in the US is around  302 million and in China  1,3 billon. The GDP in US runs at $ 13,800 billion and in China 2,700 billion USD. Divided by population we see that the GDP/person is at $ 45,9 thousand in the US and $ 3,1 thousand USD in China.

What should open the eyes, however, is the fact that the neighbors of the USA – Canada and Mexico have together 140 million inhabitants, GDP at $ 2,450 billion, and GDP/person at  $ 52,8 thousand USD. So, it makes sense for the USA to put these neighbors first. Also Brazil has $ 190 million inhabitants, GDP at $ 1,650 billion and $ 8,6 thousand per person. The Super Bowl in economy might get much more interesting when the USA put these countries to the top of the list.

Now I would like to serve a surprise: the old man Europe has as EU 500 million inhabitants, GDP at $ 17,900 billion USD and $ 36,9 thousands per person. The EU is a larger economy than the US! Even with some weak countries like Grece, Ireland and Portugal, this old Europe is still a good one. As a reminder – there are many states in the USA, which are having huge deficits!

As a final note and prediction to the Super Bowl – one will be the winner this year, but there will be a new game next year. This is valid in the business and world economy as well. I go for Pittsburgh Steelers.

Executive Search Firm Tactics revealed

January 16, 2011

The Academy of Management Perspectives has published in November 2010 in volume 24 number 4 an article on a study made by Monika Hamori about “Who Gets Headhunted – and Who Gets Ahead”.  She interviewed 2000 executives in over 800 multinational companies. The main outcome is that “THE EXECUTIVE SEARCH FIRM TARGETS LARGE, REPUTABLE, HIGH-PERFORMING COMPANIES TO RECRUIT FROM, AND IDENTIFIES INDIVIDUAL  TARGET EXECUTIVES ON THE BASIS OF THEIR JOB TITLE rather than their accomplishments.” She furthermore notes that 50% of  US managers stay six years with an employer, and about 2/3 of open positions are filled by outsiders.

This gives a lot to think about for executives planning their career, but also for hiring managers, and especially for the executive search firms.  There are talented people with accomplishments in SME to be hired, but they should consider to get into larger companies in order to make their career. So, actually executive search firms should  reconsider their tactics and hit two flies at once.