Emperors’ Clothes: Perils of Poor Decisions in HR
On October 16, 2012, Pearson Partners hosted the bimonthly DFW HR Roundtable, a networking and knowledge-sharing group of senior human resources executives in the North Texas area. Cathy McGuinness, executive search consultant with Preod Consulting and author of the best-selling book Emperors’ Clothes, discussed the business lessons in her book, and some of the perils and pitfalls associated with poor decisions in the human resources function. Here is a summary of her remarks.
What inspired you to write Emperors’ Clothes?
My background is in human resources and executive search. I am a big believer in human capital management, and I have seen what works and what doesn’t. I also like to write short stories. I found myself thinking of writing this book as I read the stories in the news about all the shenanigans in corporate America, about business decisions driven out of hypocrisy and narcissism, and the results that follow. The story line of Emperors’ Clothes may seem outlandish, but when you think about it in terms of $6000 shower curtains, lavish personal vacations on the corporate account, et cetera, it begins to look more plausible. In fact, as I was writing one of the scenes, I was wondering if it was going to be believable to the audience. I picked up the New York Times and there was a story of a hedge fund manager in New York, his Palm Beach mansion, a body floating in the pool, drugs, a South American cartel and an exotic dancer. And I thought, well, there’s nothing I’ve written that’s less believable than that.
Why did you choose these characters to illustrate your theme?
Over recent years in business, there seemed to be a rush to excellence, to compete, to engage—with customers, investors, the public. Companies yearned to be the creators of a secret sauce, the engineers of a better mousetrap. Of course, anything taken to an extreme or done for the wrong reasons can get a little goofy and things did get goofy. In a humorous way, Emperors’ Clothes allowed me to take a look at the people side of this mad rush to be something, playing on the notion that things are not always what they seem.
The use of a mob boss character, Sal Scruci, as the executive recruiter created an opportunity to portray the sharp contrast between what we know is evil (organized crime) and what we assume is good (business executives.) Sal is a typical mob boss, but is actually one of the more honest characters in the novel. His focus is money and what it can do for him, and he’s pretty open and honest about that. What you see with Sal is what you get. He seeks power for financial means. But the ambitious and ruthless Carol Himmler seeks power for its own sake, and as a means to control others. In that regard, she’s reminiscent of Bernie Madoff, or even Voldemort from Harry Potter. She’s getting stronger with every neck she steps on as she climbs the corporate ladder.
What are some of the lessons the reader learns from the book?
There’s a funny scene with Sal trying to sell a candidate on a position, with the executive recruiter in the room. But Sal has done no homework on the candidate and trips over nearly every phase of the negotiation, almost losing the candidate that the recruiter had worked so hard to attract. It turns out there are significant barriers to this candidate coming aboard, and that is discovered at nearly the end of the negotiation phase. The lesson is to qualify and interest the candidate early and often. Learn about and lure the candidate a little more with every conversation, and don’t leave it all to the end. Information is important. Don’t assume things. Be prepared and armed with information before a detail can surprise you and foil your plan.
In another scene, Carol Himmler is the head of logistics. She wants the corner office, and has a plan for the business that she thinks will assure her of that promotion. Carol’s boss, the CEO, has reservations about the plan and increasing reservations about Carol herself, particularly as a leader. Sal, who has now reinvented himself as an executive recruiter, swoops in and offers a solution to her problem that is unethical at best. She accepts Sal’s offer to dance with the devil, which permanently changes things. The lesson is that Carol’s lack of experience left her vulnerable, and Sal took advantage of that. You don’t have to be a mobster to see opportunity in someone else’s vulnerability.
Also, Carol assumed this leadership role over a more qualified candidate, and she makes several costly mistakes. The lesson is to put candidates through a vetting process, and through their paces. Get the leadership team singing from the same sheet music: Agree upon the requirements, and determine how you’ll know it when you see it. Ask the tough questions at the outset, rather than later when their answers can derail the process. Candidate selection is complex, and of paramount importance to the success of the position and the organization.
In another scene, Carol is now CEO. She takes a final candidate for a senior executive position to a very expensive dinner during which a verbal offer is extended. Later, during a celebratory drink with the same candidate, Sal gets a text message with bad news. Carol discovered some negative information about the candidate and wants the offer rescinded. The lesson here is about lack of communication and coordination among teams. Executive recruiting and human resources play a powerful role in an organization. Done well or done poorly, they can make a huge impact in either direction.
A recurring theme in the book is that what you see is not always what you get. A well-tailored suit or great credentials can lead to mistaken assumptions about talent. Do your homework, and vet candidates thoroughly. Use the professional services of an expert executive search firm that can not only help evaluate candidates, but can professionally assess them, benchmark them against others and assist with negotiation, onboarding, development and retention.
In the end, success has more to do with results than intentions. Anything taken to an extreme or done for the wrong reasons can really have disastrous results.
Catherine McGuinness is an executive search veteran with over 25 years in corporate recruiting and executive search. Before joining the boutique search firm Preod in February 2008, Catherine spent ten years with Dell where she managed executive search engagements in IT, finance, sales, service, operations and general management. Prior to Dell, Catherine was an executive search consultant with Heidrick & Struggles and, earlier, Russell Reynolds. Catherine’s New York City roots coupled with her corporate human resources background offer a unique perspective through which to view the decisions that drive executive hires and fires, captured succinctly in her first novel Emperors’ Clothes. Watch for her next book, The Juice, in which Sal Scruci continues his leadership development adventure.