What is Pipelining?

Pipelining is a unique service that uses executive recruiting processes and tools to build and continuously assess a pool of executive talent applicable to the needs of an organization. Pipelines can be used to provide external prospects for vacant roles, succession plans, M&A deals and competitive intelligence. Download a Quick Overview Here or view our Case Studies

How Does it Differ From Traditional Recruitment?

Pipelining is attractive for corporate clients who are willing to make a longer term investment in market and executive talent. Instead of transactional executive search used to fill immediate vacancies, pipelining identifies and assesses talent ahead of potential vacancies and delivers added benefits such as industry intelligence, executive intelligence and significant cost savings.

	Traditional Recruitment	Pipelining by Prospect City
Cost	Senior level executive recruiting assignments require a retainer based on the compensation of the hired executive, usually 1/3.	Monthly retainer is based on time; specifically the number of hours and team members involved in the project.
Terms/Risk	Recruiters usually require three payments over the first three months. Retainers are required regardless of success. Because of off-limits issues and low success rates, risk may be high.	Pipelining requires a monthly fee that can be adjusted up, down or off with no penalty. Clients are in complete control of the resources and cost. Because clients are paying for product (data) and services (dissemination) and own it, there is lower cost and much lower risk.
Deliverables	Traditionally, executive search firms present qualified, interested candidates only. The information developed during the course of the project is proprietary to the search firm and is not disclosed.	Pipelining is completely transparent. The information collected over the course of the project is stored in a database, accessed and owned by the client company. Deliverables can go beyond candidates to include intelligence, etc.
Success Fees	Recruiters "true up" fees to meet 1/3 of the hire's total year-one compensation. Any additional hires made by the company are subject to additional fees, often priced at 75-100% of normal fees. Finally, recruiters may charge for any candidates hired within 6-12 months of presentation.	Pipelining requires a small flat fee for each hire made during the process. These fees are designed as incentivess to team members and are relatively low and fixed. Since the data is transparent and the property of the client company, multiple hires can be made with no fear of large, compensation-based fees.
Control/Direction	Traditionally, executive recruiters drive and direct the intelligence-gathering process on behalf of clients. Since this typically occurs behind the scenes, clients are sometimes unaware of restrictions, off-limits issues, industry intelligence and comparative data.	Pipelining requires client contacts be more active in directing the team and assessing talent. Clients can direct teams to acquire intelligence, identify/present talent, or work on special projects at their discretion. Results are owned by the client.
Integration	In the transaction-based relationship, executive recruiters are isolated from the client company and deliver only candidate assessments in exchange for the fee. This inhibits the recruiter's ability to truly partner with the client organization on diverse issues over a long period.	The direction provided by clients and the technology-based organization and delivery of information integrates the team with the client company. Over time, the team's industry and functional expertise applied to the growing understanding of the client strategy and culture builds momentum that ensures long term success through lower costs and faster results.

Is It Available to Executive Recruiters?

Pipelining is designed to enhance recruitment, not replace it. For many client companies, executive recruiters remain a highly-valued service provider. Our customizable proprietary database solution is available to executive recruitment firms who wish to deploy these individual systems on behalf of their clients. The technology helps integrate executive recruiters with their clients. Clients who use our systems are more likely to apply additional talent needs to these executive recruiters. In fact, some of our clients have consolidated all senior level recruiting into one firm because the process and delivery vehicle suits their needs.

Examples

Client: $8B Market-leading Manufacturer
Project: Prospects for President role
Results: In addition to the President, the team identified and presented peripheral intelligence that led to the hiring of a top, young six-sigma executive to build and lead a new function in the company. This initiative was driven by the talent - not the company. Another executive from a non-competitive company was introduced, which later resulted in a joint venture between these two companies ($8B & $20B) to share best practices in the manufacture of plastic components.
Cost: $150,000 total cost over 12 months (total per-hire costs reduced from $115,000 to just $30,000)

Client: Global Industry-leading Professional Services Firm
Project: Prospects for Seior Consultant, Consultant and Managing Directors
Results: Over 24 months, the company hired 22 individuals in the U.S., Europe and Asia. In addition, the feedback provided by the team and subsequently the market led to a revised compensation plan and a revised hiring process, making the firm more competitive in the talent market.
Cost: $310,000 total cost over 24 months (total per-hire-costs reduced from $89,000 to just $15,900)

Client: Top Ten Global Private Equity Firm
Project: CEO Partnership prospects and portfolio company (industry-specific) CFO talent
Results: In addition to two hires made over the coourse of year one, the company was presented with a broad, deep pool of prosects for future CEO partnerships which later led to two deals. The top executives were identified and introduced, which later led to a dovetail transition to private equity as their companies were sold.
Cost: $200,000 total cost over 12 months (total per hire costs rediced from $180,000 per hire to just $50,000.) In addition, the firm's intelligence capabilities grew so much they were able to eliminate other knowledge resources that cost the firm $90,000 annually.

A Transparent, Customizable Delivery System

Our pipelining database technology houses client ifnromation separate from other databases and is completely customizable, resulting in a proprietary solution for each customer. Customization is unlimited and can store and sipaly succession planning information, executive development programs and external pipelines, accessible in a dashboard-like setting for clients.

Selected Screens

Technology: Pipeline Suspension

While the technology is included as part of the pipelining services, it is also available in the event pipelining services are suspended. In this case the technology can remain active for use by the corporate team and external recruiters for a subscription fee, which includes maintenance and hosting.

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