1. Egon Zehnder International: Implementing Practice
Groups
Komal Aslam

3. -What is Egon Zehnder
International?
-Who formed it?

4. The Executive Search Industry
Top Six Executive search firms in 1996
1. Korn/Ferry International
2. Heidrick & Struggles
3. Spencer Stuart
4. Egon Zehnder International
5. Lamalie Amrop International
6. Russell Reynolds Associates

5. Minimal Structure
 Three decision making bodies in EZI
o 1. Executive Committee (made operating decisions)
o 2. Partners (approve overall strategy, profit
distributions, elections and opening of new offices)
o 3. EZI’s Four member board (set strategic initiatives and
decided consultants’ base compensation)

6. Practice groups

7. What is Egon Zehnder
International’s niche?

8. What is a Niche?
A niche market is the subset of the market on which a
specific product is focusing.
Concentrating all marketing efforts on a small but specific
and well defined segment of the population.

9. EZI Niche
 To serve very senior levels of management.
 In 1980, they tried to bring diversification.
 In 1998, their niche was divided into three areas:
 Executive Search
 Corporate Governance
 Management Appraisals

10. What makes its culture special?

11. EZI’s Culture
Single Profit
Center
Compensati
on and Fee
structure
No Star
concept
Unique Culture
Lean
Managemen
t Structure
Tough
Recruitment
Procedures

12. If you were Meiland, what would
you be most concerned about?

13. Meiland’s concerns
 Whether the management is given enough attention with
respect to growth?
 Whether the measurement system is still that effective?

14. What were industry specific practice
groups introduced?

15. Introduction of Practice Groups
 Firm became globalized, and moved from generalists to
specific practice group.
 Less Geographical confinement, more industry focus
 Client Demand
 Multi-office, Global Assignments
 Competition

16. What tensions did they create
within the firm?

17. Tension
 Revenue and cost allocation.
 Maximizing revenues- deviation from single profit center.
 Need for Profit and Loss statements.
 Cost Accounting.