The Digital Transformation journey requires the repositioning of IT in the organisation. For Digital Transformation to succeed, IT must evolve from a cost centre to an integral part of the value chain towards the customer. Many asset-heavy companies transform into “technology” companies, in which data comes to substitute for many of the assets previously listed on the balance sheet, drives customer experience and allows the creation of new business models. As a result, many formerly outsourced or “bought” IT functions and solutions are brought in-house.

We discussed with IT leaders across industries how the choice between “making it” versus “buying it” has affected the IT makeup of their organisations, interactions with business stakeholders, and the impact on talent acquisition and retention.

Ahmet Hasanbeseoglu currently leads the digital transformation of the supply chain at Unilever, covering Russian-speaking countries, North Africa, the Middle East and Turkey. Prior he was CDO at Arcelik, a Turkish multinational and the third-largest household appliance maker in Europe. Prior to that, he worked for EY, Cisco, Arthur Andersen and 3M.

You come with a long background in technology advisory, and you have recently moved into operational transformation roles. What is your current role at Unilever?

I’m currently focused on digital factories, supply and demand planning, process automation through workflow integration, RPA (Process Automation with Software Robots), and e-commerce go-to-market projects. I also oversee digital projects in the areas of customer service, O2C and logistics operations. Digital disruptions are strongly felt in these areas as they directly impact consumers.

We do not talk of “supply chains” anymore, but of “value networks”.

I started in this new transformation role two years ago and built my team across the region from scratch. I report to the VP of the region and work cross-functionally across the whole organisation: with IT, Operations, Logistics, Sales and Marketing. I am responsible for creating a fully responsive, agile, data-driven and consumer-centric value network from supplier to point of sale.

We do not talk of “supply chains” anymore, but of “value networks”. Let me give an example. In order to meet changing demands during the Covid-19 pandemic, we’ve extended our network further, to even reach the suppliers of our direct suppliers. A supplier of plastic bottles might suddenly experience problems sourcing raw materials which will directly impact our business, and we must anticipate and prevent this. At the same time, we’re developing new business models, for example whether we can sell directly to consumers.

How do you decide which technology to make and which to outsource?

The criteria for outsourcing or insourcing new technology are not fixed. Cost and service level agreements will set criteria for functions such as procurement, HR, and planning. On a different level, when we talk about digital platforms, the decision will not be driven by cost, but by the business value it will generate.

With the help of consultants, we perform process analyses to determine what is critical and what isn’t. We have strongly invested in developing the data science skills of our people. This has not only given people a chance to grow, but also gives us the capability to perform critical tasks in-house.

In the end we need to create a balance between in-house production and outsourcing, which is determined by the speed at which we can learn ourselves, and whether we can build the critical competency centres internally.

I must note that we prefer out-tasking to outsourcing. With the former, we keep operational responsibility and own the processes, and the contractual time horizons are shorter than with outsourcing.

We need to create a balance between in-house production and outsourcing, which is determined by the speed at which we can learn ourselves.

We recently did a POC (Proof of Concept) for a factory in Turkey to improve work safety through cameras and machine vision technology. We wanted automated alerts sent to plant and production manager in the event of a work safety violation. In this case, the accuracy of the technology is critical. We engaged with 3 vendors: 2 start-ups, and a large system integrator, and we invited each of them to do a technology proof of concept for one month. They all met the accuracy levels we required, and only then did we look at cost. One of the start-ups won the bid for the project, and we rolled it out world-wide. This is an example of a digital lighthouse project which focuses on fast implementation, transparent results, and contribution to transformation culture.

What skills and competencies are your team looking for?

Digital transformation requires that businesspeople become IT people, to some extent. I created a program to develop digital competencies to create what I call “super-users”. We now have 35 businesspeople completing a nine-week training. They are already bringing down the IT system analysis and user acceptance testing period from three months to the best possible scenario of two to three weeks.

Engaging businesspeople from the start increases their rate of adoption when they have co-created their own digital solutions.

We want those super-users to be able to use programming tools that require only a basic understanding of code, instead of needing to spend a month of their time with IT for business requirements gathering. This process should be done by the businesspeople, because they are able to create a simple app; they are the ones who know the processes the best, and they can subsequently define what they need in terms of data. We keep them highly engaged.

These businesspeople are my extended team – I have a digital team of product-owners who work with me to define the data requirements, and then we ask IT to find us a company who will make an MVP or prototype. Engaging businesspeople from the start increases their rate of adoption when they have co-created their own digital solutions, for example, predictive maintenance algorithms.

In order to achieve this, we needed to develop the four competencies that were missing:

• IoT skills that combine the physical and digital realms
• Data science and data modelling
• Digital process – automation of business processes through automation tools
• New business models skills – people who can work and act like a start-up through iteration towards Minimum Viable Products and pivoting.

We wrote a Request for Proposal and received a quote of USD 1.5 million for a digital factory design from a blue-chip technology advisory firm. Rather than paying that money to bring technology know-how in from the outside, we decided to do the design ourselves, and hired people with three to four years’ experience in digital factory design.

We also have an extended team of 35 people from different business functions, who have allocated 20-25% of their time to digital projects that align with my KPIs. For instance, if someone in planning is digitally competent and can provide the means for better inventory management and forecasting, this will directly impact the performance of our business.

We have developed this three-layer organisation to drive transformation, and people on each level are now starting to cross-fertilise knowledge and practices.

We are fortunate enough to be able to attract really good people, and I predict that they will become the future leaders in our business. The average age of my digital supply chain team is 28-29; they work on the implementation, the extended digital product team of the business provides the input, and we have a digital supply chain council of executive decision makers – directors and VPs – to set direction and strategy.

We have developed this three-layer organisation to drive transformation, and people on each level are now starting to cross-fertilise knowledge and practices. I am part of the council and built it for the region, not just for supply chain but also with other functions. The council, headed by the EVP of our region, can be compared to a steering committee where highly productive discussions between previously-siloed business units happen.

How did your HR business partners and talent acquisition adapt to these new requirements?

Our HR team recognises the need for our transformation, and is very supportive in ensuring that we have the right talent and provide the right development opportunities for our people. We have a program called “Flex” that helps us source resources from across the company in a transparent, flexible manner. Flex functions as an internal job portal where you can post open positions, and recruit colleagues from within the business for projects.

We also invest in human development through online training programs. One example is the citizen data scientist program we created: it consists of a 15-hour course in two levels, which realistically takes two to three days to complete, and after which a certificate is rewarded.

I asked our VP-level executives to take the course first, and two obtained a certification. One of the VPs shared the certificate in one of our online chat groups, and participation jumped.

Tech talent does not tend to think of working for a company like Unilever. Therefore, when I build my team, I identified around 200 professionals over a period of several weeks, and then shared the list with internal Talent Advisory to initiate the hiring.

We put ourselves on that road with a three-to-five-year vision, and have identified six skills that will get us to what I call the “The Programmable Enterprise”.

Forbes noted in 2001 that “now every company is a software company”. We put ourselves on that road with a three-to-five-year vision, and have identified six skills that will get us to what I call the “The Programmable Enterprise”. We have a plan to transform people from basic to advanced in each of six areas:

• Improve pace of action with tasks, agile tools and collaboration analytics
• Automate processes through robots and make self-driving decisions through workflows
• Connect the physical and digital world with IoT tools and smart products
• Interact with all internal and external stakeholders through voice, video and bots
• Maximise asset utilisation and build an asset sharing model
• Analyse data and translate it into value.

A successful digital transformation requires the repositioning of IT in the organisation; IT must evolve from a cost centre into an integral part of the value chain. Many asset-heavy companies transform into “technology” companies, where data replaces many of the assets previously listed on the balance sheet, drives customer experience and allows the creation of new business models. As a result, many formerly outsourced or “bought-in” IT functions and solutions are brought in-house. 

In this series, we talk to IT leaders across a range of industries about how the choice between “making it” versus “buying it” has affected IT in their organisations, the interactions with business stakeholders, and the impact on talent acquisition and retention.

Leo Brand is the CIO of Vopak, a 404-year-old Dutch company which has grown into the largest independent provider of liquid bulk storage tanks. Vopak is active in 86 terminals in 28 countries across the world and generates revenues of EUR 1.3 billion (excluding joint ventures). When Leo joined Vopak in 2014 as their CIO, he kickstarted an ambitious and highly successful digital transformation. Under Leo’s leadership, Vopak became the poster child for digital transformation in the Netherlands, and for its industry globally. The company aggressively rolled out Industrial IoT, automated its port operations with bespoke robot and drone designs, infused its processes with end-to-end data gathering and processing capabilities, and significantly altered the ways it sourced, produced and serviced IT and operational technology.

I remember one of your presentations explaining that one of your Digital Transformation goals was minimal human employment in your harbour and terminal operations, and how ambitious this goal seemed at the time.

That goal is still a dream, but we have made significant progress towards it. We now conduct storage tank corrosion inspections by flying autonomous drones that are equipped with AI and machine vision software over our harbour infrastructure – previously, we needed human inspection teams to walk around and climb into the storage tanks. We are also building and testing robots that go inside the tanks to inspect and clean them.

The aim is to replace the human teams that enter the tanks in astronaut-type outfits to do this work, making things safer for our staff and contractors. The Covid-19 situation necessitated remote working, and this has undoubtedly accelerated many processes which are moving towards the automation of functions that a few years ago we believed only humans could do. People now recognise that tasks can be done remotely without sacrificing efficiency or productivity.

How did you decide to build technology in-house?

The technology services and products that we build ourselves cover all the processes that allow us to strategically differentiate our services to the customer. These services are focused on the storage of large quantities of oil, gas, chemicals, and vegoils in the harbours. We do not build the tech for processes that do not differentiate our services; for example, we use an Oracle SaaS platform for finance and procurement. However, even when we do not build the tech ourselves, we still work to improve the technology in these departments. In finance, we centralised financial activities through global standardisation using an SaaS solution, and deployed software robots to automate much of the admin work. This meant that we were able to reduce 30% of the workforce globally.

“The technology services and products that we build ourselves cover all the processes that allow us to strategically differentiate our services to the customer.”

We are the largest independent service player in the global liquid storage business. Our logistics services are linked to operational bulk storage with different modes of transport such as train, ship, barge and truck; and we provide additional services on top of the existing ones. This is where we design and develop the technology in-house; I will never, ever outsource that, or buy it in.

After we built our in-house infrastructure, I got offers from other companies in the sector. They wanted to buy the software applications that we developed ourselves, but we refused because those products and services are key to our competitive differentiation.

This thinking about differentiation drives our choices relating to converged IT/OT architecture. We needed much more flexibility and adaptability in our architecture for our digital transformation strategy to succeed. Moreover, there will always be new players with newer and different architectures, making it harder to compete with legacy architectures.

Therefore, we made the bold decision to phase out our industry standard ERP system, JD Edwards, and build our own ERP on a RAD platform from Outsystems with the first terminal operational in just over one year. This was not easy, but the architecture has been conducive to our commercial success and competitive differentiation over the last few years.

“(…) we could potentially address inefficiencies of up to USD 190 billion per year in the global supply chain for dry bulk, liquid bulk and containers.”

We are looking into the “Uberisation” of storage tanks, in which we would rent or lease storage tanks owned by our clients to other industry players, although the “Uberisation” metaphor is too general. Uber’s business model is many-to-many while ours is few-to-few –as a result, ours is a much more transparent market, and the market forces are very different. For example, a few phone calls will connect you with all major players and stakeholders in this business in Singapore, while that is just impossible with Uber.

Nevertheless, there are many parties required to make operational bulk storage happen, and data exchange is necessary to make that work. We use data to set up platforms which will allow for seamless interaction between industry players and can lead to significant cost savings; we could potentially address inefficiencies of up to USD 190 billion per year in the global supply chain for dry bulk, liquid bulk and containers.

The interactions between parties in our business can be very old-fashioned, with some still using fax machines. We have a vision of how our platform should evolve in 2020. It will be community-based, not a single large technology company collaborating with a large global logistics player on a platform functions as a toll bridge for all other competitors in the sector. Nobody would feel secure managing their own data through a competitor’s platform.

In the end, people across our sector trust us to store their products and data. We run our business independently, invest in digital technologies and link all parties – from transporters to stakeholders such as customs brokers, banks and insurance companies – into our real time data streams.

How do vendors adapt to clients who start to build their own infrastructure?

“Vendors” covers a very broad spectrum. Let’s look at technology and management advisory firms. I used to be a consultant myself, at AT Kearney. Consulting companies will have to adapt; they must adapt, or they will dither into irrelevance. One thing is sure: the value that consulting companies provide will decrease rapidly if they do not develop and integrate technology for their customers.

I no longer listen to consultants with a general background, if they do not have expert knowledge on my industry. I see consulting firms changing rapidly; one of the largest management consulting firms recently hired 1,500 data scientists, who inevitably bring a culture change along with a completely new skill set, coming to work in jeans and sandals.  Another trend is that more and more, we require consulting firms to commit to results, with the pay-off only realised when the promised benefits materialise.

“Corporate Venture Capital funds are a highly effective means to drive change.”

Over the last five years, we have started to engage with start-ups and scale-ups, and we even created a Corporate Venture Capital fund. I understand that this seems a bold decision to many of my peers, but start-ups develop technologies that interest us a lot. 

For instance, we invested in a small company making sensors that we believed to be strategic for our digital strategy. We made a minority investment in the company to ensure they would be in business for the long term, allowing us the necessary time and resources to co-develop a product with them. In this way, we helped them to enter the industry and “understand the challenges”.

CVCs are a highly effective means to drive change. Traditional companies are afraid to lose money and cannot see the value of potentially hitting a home run with investments in strategic technologies. These initiatives also become visible to the employees in the company, encouraging them to take entrepreneurial initiatives.

The sensor company is a typical example of how our CVCs work; we usually invest minority stakes to ensure that the companies will be in business for the next ten years and co-develop products with them. Some of these investments will inevitably be write-offs, but the successful ones will more than compensate for the ones that fail. We take a position on the board so that we can access their financial information, and how they are doing compared to their projections, but we do not involve ourselves in the management.

Smaller suppliers are becoming much more attractive and more powerful. One of our long-time suppliers, a large blue-chip company, asked us why we made that investment in a start-up, instead of collaborating on sensors with them. We told the company that we had asked them repeatedly for two years, but never got a clear answer. Today, they want to become a reseller of the product. This is an illustration of how existing technology players need to change the way in which they conduct business.

How does this transformation impact the relationship of IT with HR?

To put this into context, I did consulting for the Vopak board on digital transformation five years ago, and they asked me to become their CIO. The decision to change the reporting line of the CIO to the COO and the board took three months – at the time, IT was reporting to the CFO and located in the basement, underground and almost invisible.

“Our first struggle was to have businesspeople across the organisation understand the value of IT.”

Over the past five years, we have set a very clear digital strategy that everyone across the organisation can understand, and which we execute with all employees in the company aligned. The IT department has grown by 100% since then, and its composition has changed dramatically to reflect the new competencies required. As we will operate in dual mode until the development of the new IT/OT environment is ready, double running costs will apply. Over the next two years, the Global IT/OT department will be reduced, with 40-50% of the (temporary) staff being laid off.

One fact about the digital talent market is there is a huge imbalance between supply and demand, so some things need to change. Our first struggle was to have businesspeople across the organisation understand the value of IT, and establish clarity on governance, roles and responsibilities.

“Today our small global HR team manages all HR processes in real time and presents though dashboards directly to the Board.”

HR was the first department we worked closely with. We brought in Workday and other tools and helped them organise their processes to support the transformation. Our aim was to help them understand the ways in which technology could improve HR and make it more impactful in the organisation. We then brought in technology such as AI and gamification to improve recruitment and hiring efficiency. We join incubators and accelerators to spot talent and work closely with universities on technology projects. Today our small global HR team manages all HR processes in real time and presents through dashboards directly to the Board.

Because the impact of the IT transformation was so dramatic, businesspeople now ask to join IT meetings, and IT joins client meetings on a very senior level. The discussions no longer focus on price, but on the value that the data generates and the digitalisation challenges that come with it. With our data, our clients can make massive savings in their supply chain, and once real time data becomes available in the future, AI will take over the planning challenges in the global supply chain.

We consider this cross-fertilisation of knowledge across business functions to be a very healthy indicator that our Digital Transformation strategy is working.

How do you approach the problem of attracting and retaining scarce talent?

Great engineers want to work with other great engineers on cutting edge projects. We cannot pay like Google or Facebook, but we can attract amazing talent. We allow people to explore and use new tools, stay close to the business, experience the impact they create, and feel challenged. 

And that, you see, creates positive gossip about our employment brand in the market. Our continuing investments in digital transformation build buzz and interest in what we do, which makes it easier to recruit and retain these talents. In a recent training program for managers in IT, we had 14 positions open, and over 1500 applications. This fills me with pride, and I do not lie awake at night afraid that I will lose great people.

The Covid-19 pandemic has had a significant impact on the emerging economies of the Western Balkans, a region where governments have imposed strict lockdown measures to control the spread of the virus.

From discussions with business leaders in the region across various industries, I have learned that consumer lending FinTechs are among the most hard-hit companies, for two reasons. As the newest actors in the microfinance sector, FinTechs are still under consolidation in terms of capital means and financial position, and their potential market took a big hit with the sudden unemployment spike and consumer spending freeze. Severe government emergency measures have forced FinTech lenders to make hard decisions by suspending repayments, restructuring existing loans and providing liquidity to their customers to manage the crisis. In response to the current unprecedented market disruptions, FinTech lenders in the region are taking quick steps to adopt new digital initiatives; moving their businesses online, maintaining seamless operations, making temporary business adjustments and rethinking their distribution channels. In general, FinTechs are heading towards a Low Touch Economy, which will likely be our post-pandemic economy. I have compiled some observations for individual Western Balkan countries:

Albania

• Albania had an early and very strict lock-down, which completely paralyzed the commercial activity of FinTechs for several weeks.
• Larger and more offline FinTech players were forced to take drastic measures: massive layoffs of up to 30% of their staff, salary cuts of up to 50%, and closing more than 30% of branches. Smaller and more online companies, and those operating through third parties, have found it easier to adapt and continue business. Marketing and training expenses have also been cut.
• New business has been reduced by 80-90% compared to the same period in 2019, due to the lack of demand.
• The Albanian government has imposed a payment and restructuring moratorium. All customers, individuals and businesses that have been impacted by COVID-19 have the right to postpone loan repayments for a period of three months, with no penalty charged by lenders. The moratorium was initially miscommunicated as a mandatory restructuring for all borrowers; this error has caused repayments to drop by 60% or more compared to the previous quarter and distorted liquidity ratios, which has especially affected companies whose liquidity is highly dependent on their lending activity.
• This reduced liquidity has resulted in: a) inability to continue financing, even with revived demand, b) inability to make repayments to institutional lenders, MFI creditors, etc., c) inability to pay operational expenses, especially staff salaries and point-of-sale lease payments.
• In an effort to preserve cash for better times, consumer lending FinTechs have been careful with their lending activity, while FinTechs operating in the car lending segment have been focusing on debt collection. Similarly, there has also been a tendency to lower the average loan ticket, and tighten lending conditions.

Bosnia & Herzegovina

• FinTech consumer lenders have been heavily impacted by Covid-19. They have seen a significant decrease in demand, with many consumers losing their jobs and thus their eligibility to apply for loans.
• The demand for goods has changed. Customers now prioritise covering basic needs over buying luxury products such as laptops and smartphones, jeopardising retailer partnerships.
• Some FinTech players were technologically ready to work from home offices using laptops and installed apps. At the same time, more traditional microfinance companies have been investing in digitalisation while lobbying for a more digital-friendly legal environment.
• Sporadic business growth has continued through the opening of new branches.
• In order to relieve the social and economic burden, the government has proposed several measures including a moratorium of up to twelve months, a grace period of up to three months, and a loan extension of up to six months. However, the final decision is made in a one-on-one consultation between lender and borrower.
• Companies have reduced Opex significantly by cutting salaries and keeping a skeleton crew in the branches to carry out business activity, while taking advantage of government compensation measures.
• New credit risk policies suggest that lending will shift away from red-flag industries such as hospitality and tourism.

Northern Macedonia

• The macroeconomic outlook for Northern Macedonia is more optimistic, due to the government’s more relaxed lockdown measures and rapid reaction to assist unemployed people with their lack of income. As 50% of the Macedonian economy is closely linked to German investment in the automotive industry, it is good news that German companies are showing signs of revival and are bringing people back to work. The hospitality sector remains heavily impacted.
• The government decision to cut the APR cap from 50% to 28% for three months has hit many FinTechs.
• FinTechs that are financed by p2p platforms are experiencing a real crisis, and as a consequence the profit margins are at breakeven, or 0.5%. The banks are unwilling to lend to FinTechs under such extraordinary conditions.
• Plans for further expansion by opening new branches are now on hold, while cost-saving steps such as salary cuts were taken in April.
• Demand and collection have been heavily impacted, with the government extending instalment repayment periods by up to six months for banking clients and three months for microfinance.

Kosovo

• The Central Bank of Kosovo has announced that borrowers have the right to discuss restructuring terms. The CBK has also eased provisioning, classification and penalties for all banking and microfinance clients, except for public institutions.
• Demand for loans has decreased, while the criteria have become stricter, and there is less flexibility for lending.
• The financial sector in Kosovo has not seen any salary cuts, layoffs, or branch closures to date.

Bulgaria and other CEE Countries

• In general, FinTechs have accepted the measures taken by national regulatory bodies and are adopting their businesses to obey local legislations and respond to customers in the best, quickest way possible. This is challenging due to the constantly shifting situation. For example, in Poland legal changes happen on a weekly basis and it is difficult to keep up.
• Growth plans are on hold for the moment, and the priority is on stability, liquidity and compliance.
• Debt collection in Bulgaria is doing better than expected. Lenders are carefully negotiating and restructuring with clients. Unemployment has been the main cause.
• Marketing cost-cutting is widespread, as campaigns are no longer happening during Covid-19.
• In Bulgaria there was no moratorium on microfinance, just on banks. In other countries, the moratorium period varies from 1-2 months to the end of the year.
• In Bulgaria, lenders have lost their appetite for risk. Some companies continue to lend, while others have stopped their lending activity, despite huge operational costs. A few smaller players have even shut down business in Bulgaria.

Pranvera Papamihali is the Country Manager for Albania and a Regional Consultant for Pedersen & Partners. Ms. Papamihali has extensive international Executive Search experience, having led and executed assignments across the Western Balkans and Europe. Her area of expertise includes Financial Services (Banking & FinTech), Telecommunications, Energy, Retail, and Healthcare. Moreover, Ms. Papamihali has been instrumental in building Pedersen & Partners’ presence in Albania, ensuring increasing market share and brand recognition. Prior to joining the firm, she gained vast management experience as the Head of Corporate Affairs at Telekom Albania and Head of International Relations & Translation Department at ALSAT Television. Additionally, Ms. Papamihali brings many years of experience as a diplomat within the Ministry of Foreign Affairs in Albania. She has lived and worked for several years in Germany as an Albanian language instructor at the George C. Marshall Centre for Security Studies in Garmisch-Partenkirchen. Ms. Papamihali holds a Master of Arts degree in Hungarian Language and Literature from the University of Sciences Eötvös Loránd Tudomány Egyetem in Budapest, Hungary. In addition to her native Albanian, she speaks fluent English, Italian and Hungarian, and has good knowledge of German.

If you would like to conduct an interview with a representative of Pedersen & Partners, or have other media-related requests, please contact: Diana Danu, Marketing and Communications Manager at: diana.danu@pedersenandpartners.com

In Hungary, having two university degrees and living overseas in the US is a dream come true. Nevertheless, this senior Executive Search consultant has reached professional fulfilment in Hungary. The catchy slogan “customer first” is often nothing more than empty words, but in this case, it is the exception that proves the rule. Overseas work ethic as the attitude to live by – Franciska Kiss interviews Tamás Gönczi, Client Partner at Pedersen & Partners.

“Attitude is the first quality that marks the successful man. If he has a positive attitude and is a positive thinker, who likes challenges and difficult situations, then he has half his success achieved” – Lowell Peacock’s rarely-heard quote comes to my mind while the elegant, low-key but confident Executive Search consultant sitting in front of me talks about his journey from American universities to the world of HR and Executive Search in our tiny country.

“I wanted to be a partner who does not just send a couple of CVs”

“When I was a university student, I didn’t know what I wanted to do. I went to the University of Hawaii and later to the University of Montana in the US. In the first few years it is easy to change majors, so I started with IT and then switched to economics. I earned my second degree in human resources management and industrial relations at the University of Minnesota,” Mr. Gönczi says. “I have always been attracted to consulting, but my first job and my brother’s example were really decisive. My brother had become a CEO at a very young age and through him I saw early on how business leaders think and how focused they are on results, which eventually had a great influence on how I work now. Also, in my first job in the US I saw HR consultants working up close and I could see how they fit into the structure of an organisation, how they communicate and how much value they can create,” he adds. “I believe those early experiences strongly affected who I am today.”

Mr. Gönczi, who has also gained experience working in company HR and recruitment roles, says it is partly due to chance that he is now working in the field of Executive Search. “I think HR is a fantastic and very rich field, but after a while I realised that I need the fast pace and excitement of recruitment. Therefore, I left my HR job and joined a recruitment company. Ultimately, I wanted to get deeper into the project, to provide more value. I wanted to be a partner who does not just send a couple of resumes but has a deep understanding of the specific business field and truly advises organisations. And I have the opportunity to gain an understanding and build deeper relationships with our clients in my current firm, Pedersen & Partners,” he says.

Customers first: a phrase often reflected only in advertisements

At his current workplace, Mr. Gönczi has not only an overview of the Hungarian market, but also of the markets of the surrounding countries. This does not only provide a basis for comparison, but also creates an opportunity to learn about and share best practices, from which clients can benefit. However, Mr. Gönczi believes that there are other benefits to having international experience. “If you live or work in the US, you can acquire a work ethic, a work attitude that can be used at home too. To sum up, everyone there is trying to do what they excel at, and they want to create value in it. One has to be focused, fast, efficient, with a ‘customer first’ approach if one wants to succeed. If you don’t know something, you do not form an opinion about it,” Mr. Gönczi observes. “It is important that the client feels that our projects are successful and that is why I strive to be flexible and accommodating in many areas.”

Supporting the success of his approach, Mr. Gönczi mentions several decade-long collaborations with clients and some high-profile searches at CxO level that made waves in the business community. “As far as the challenges are concerned, dealing with uncertainty is the most difficult part. Our clients give us the ideal profile of the leaders they would like to hire, but until the time we can start ‘manufacturing’ candidates, there will hardly be candidates that are a 100% match to a profile,” remarks Mr. Gönczi with a smile on his face. “In the meantime, relying on our deep market knowledge that we have acquired over the years, we need to continually support our clients to find and recruit the best possible executives. In this case, the previously mentioned positive attitude, transparency and search for solutions are essential,” the consultant adds.

What do the employer and the candidate need?

Of course, every employer and every role require a different mix of competences, but in the modern workplace Mr. Gönczi believes that it is indispensable to be open to changes, to want to constantly learn and improve, to be reliable and to be self-reflective. Mr. Gönczi also mentions that employers typically like candidates who have a clear aim, a professional goal that they strive to achieve.

When it comes to employers, Mr. Gönczi believes that “transparency in a company is motivating for employees, as well as a strong team atmosphere where employees feel that they can belong to where they are supported.”  He also mentions that “constant feedback is key, but not only pointing out areas to improve, as it is also important to give positive feedback.”

What is the role of HR leaders in a company?

When it comes to HR leaders, Mr. Gönczi believes that “the greatest challenge for HR leaders is to maintain a credible and independent voice to find the right balance between management and the employees. They need to be able to keep their independence of senior management and of employees as well yet be able to represent the interests of both sides. At the end of the day, this means that they need to represent the interest of the company they work in. In some ways they need to act as the CEO of the company, with a strong focus on people.”

Work-life balance

Mr. Gönczi says that “it is hard to find true balance nowadays when business has become so fast, but for me my family and tennis are an endless source of energy.”

The interview was conducted by Franciska Kiss

If you would like to conduct an interview with a representative of Pedersen & Partners, or have other media-related requests, please contact: Diana Danu, Marketing and Communications Manager at: diana.danu@pedersenandpartners.com

September 20, 2019 – Kuala Lumpur, Malaysia – Pedersen & Partners, a leading international Executive Search firm with 57 wholly owned offices in 53 countries has added Jenny Wong as a Client Partner in Kuala Lumpur, Malaysia.

Jenny Wong is an accomplished Executive Search and management consulting expert with over 28 years’ worth of work in serving large multinational clients and regional conglomerates covering the Technology, Telecommunications, Financial Services, Professional Services, Property, Oil & Gas, Manufacturing, FMCG, and Retail industries across Asia Pacific. Over the years, Ms. Wong has built a strong reputation and a deep network of relationships with clients and has expanded her repertoire of skills to Board Services, Leadership Assessment, and Succession Planning. Prior to joining Pedersen & Partners, she was a key member of the Global Technology & Global Financial Services Practice Groups and was also the Lead for the Executive Search business in Malaysia for a top-tier global Executive Search company. Ms. Wong also worked at such globally renowned firms as Accenture, KPMG, and Euro Group International, and founded her own consulting practice with core business in Executive Search, Outplacement, and Psychometric Assessment.

“Asia Pacific is constantly increasing its demand for global executives who are attuned to the business, social, economic, and performance requirements imposed by the market realities. At Pedersen & Partners, we are ideally placed to meet this need by bringing together a top-performing team of experienced consultants who have a deep understanding of the markets and industry sectors. We place great emphasis on convening the “Best Team Forward” for each of our clients, and Jenny Wong has the perfect balance of market knowledge, industry expertise, and executive search experience to be a great fit for our firm. Jenny will help steward the expansion of Pedersen & Partners’ presence in Malaysia and across the entire APAC region,” stated Gary Williams, Chief Executive Officer at Pedersen & Partners.

“I’m enthusiastic about joining Pedersen & Partners and adding a new milestone to my Executive Search and Board consulting experience portfolio. The firm’s Technology, Financial, and Professional Services practices have assembled strong teams of search professionals with experience in different countries, providing a multicultural and diverse vision about the needs of these sectors. I look forward to joining forces with them and supporting clients across the Asia Pacific region,” added Jenny Wong, Client Partner at Pedersen & Partners.

Pedersen & Partners is a leading international Executive Search firm. We operate 57 wholly owned offices in 53 countries across Europe, the Middle East, Africa, Asia & the Americas. Our values Trust, Relationship and Professionalism apply to our interaction with clients as well as executives. More information about Pedersen & Partners is available at www.pedersenandpartners.com.

If you would like to conduct an interview with a representative of Pedersen & Partners, or have other media-related requests, please contact: Diana Danu, Marketing and Communications Manager at: diana.danu@pedersenandpartners.com

Prague, Czech Republic – The Pedersen & Partners Prague team joined forces with Enterprise Investors, Deloitte, and White & Case to welcome CEOs, decision makers, and investors to an event designed to discuss and debate the financing opportunities for Czech-owned firms. Participants included executives from the Technology, High-tech Equipment Manufacturing, Agriculture, Alternative & Traditional Energy, and Chemical industries. Petra Grabmayer, Partner at Pedersen & Partners moderated the expert panel discussion represented by Martin Vohanka, CEO at Eurowag; Jiri Michal, entrepreneur and former Zentiva CEO, and Martin Strupl, Managing Partner at eD System Group.

At the event, the experts provided a comprehensive overview of their experience in selecting the right Private Equity partner to drive business growth, what to expect from the collaboration, personal observations from operating a firm together with Private Equity partners, etc. Another major topic was IPO, within which the experts discussed preparation and strategy prior to IPO and adjacent processes, the benefits of IPO, and the challenges of IPO processes.

Throughout the event, certain overarching themes permeated all the business processes under discussion: implementing a fundamental management structure which can truly allow for global expansion; strategies for attracting agile, adaptive, diverse, and driven executives; and detailed and customised approaches to matching the company’s requirements to perfect executive candidates, enabling both parties to ensure the fulfilment of the joint growth goals.

If you would like to conduct an interview with a representative of Pedersen & Partners, or have other media-related requests, please contact: Diana Danu, Marketing and Communications Manager at: diana.danu@pedersenandpartners.com

March 18, 2019 – Hong Kong & China – Pedersen & Partners, a leading international Executive Search firm with 57 wholly owned offices in 53 countries, has appointed Jed Van Voorhis as a Client Partner within the Industrial Practice in APAC.

Jed Van Voorhis possesses over 20 years of Executive Search experience with a focus on Industrial, Cleantech, Healthcare & Life Sciences, and Technology sectors. In the course of his Executive Search career, Mr. Van Voorhis has worked with large international Executive Search firms in Taiwan and Greater China and has developed a strong network and client portfolio having recruited Board and C-level executives for organizations ranging from startups to Fortune 500 companies. 

"Pedersen & Partners’ global one-firm platform is what sets it apart from other Executive Search organisations. I look forward to working with my colleagues across the world to enhance the Industrial practice and deliver top quality solutions to our clients,” commented Jed Van Voorhis, on his appointment.

"Jed’s addition to our team further supports our focus of ensuring international expertise and network in the Industrial Practice, wherever our clients’ senior talent needs may be. His solid regional client base and excellent long-standing reputation as clients-driven and results-oriented professional will further enhance our reputation in key markets,” announced Alex Eymieu, Head of Asia Pacific at Pedersen & Partners.

Pedersen & Partners is a leading international Executive Search firm. We operate 57 wholly owned offices in 53 countries across Europe, the Middle East, Africa, Asia & the Americas. Our values Trust, Relationship and Professionalism apply to our interaction with clients as well as executives.

If you would like to conduct an interview with a representative of Pedersen & Partners, or have other media-related requests, please contact: Anastasia Alpaticova, Marketing and Communications Manager at: anastasia.alpaticova@pedersenandpartners.com

Riga, Latvia – Evita Lune, Partner for Global Digital Economy at Pedersen & Partners interviewed Meeri Rebane, Co-Founder and CEO of INZMO. INZMO Ltd is an insurtech start-up established in September 2015 in Germany by the Estonian founders Meeri Rebane and Risto Klausen. The company focuses on providing an end-to-end innovative technological solutions to insurers, corporate partners and end customers to improve sales, customer relationships, claims handling and risk management. In 2016, the company received a boost in San Francisco from the largest start-up investor in the world — 500Startups. In May 2017, INZMO was named the best fintech company in Europe by the StartUp Europe Awards run by the European Commission. In December 2017, Helvetia Venture Fund — a Swiss insurer, has acquired a holding in INZMO and has invested a single-digit million amount in INZMO.

Evita: Funding is probably the most crucial challenge for startup entrepreneurs. What was your route to getting the company well financed? I read your interview after Parnu conference where you said that one must meet more than 200 investors to attract the attention of two. Also, I read that you have spent significant time in an US accelerator to get prepared for fundraising. How much have your travelled and how much has been the effort to get investors’ interest?

Meeri: When it comes to traveling, for the last three years when we established INZMO, I have not lived permanently anywhere. If somebody asked where my home was during the last three years, it was not very certain. In 2015 we moved to Berlin and participated in Startup Bootcamp, which was the first accelerator where we participated. It was extremely important for us to get out of Estonia. Because, if you have been living and working in Estonia for all your life, then you need some “kick in the butt” or this dramatic change of environment to understand that there is a way different culture to do business, to get funding and to sell services of your company. If you want to do international business, you have to think as an international businessman.

We were in Berlin for seven months, we found three German investors, they were angel investors, and they co-invested with our Estonian angel investors. This is where we got our first round of funding. After Berlin we were few months in Estonia, then I moved to the US, because we got funded by 500Startups in San Francisco. I spent six months in San Francisco establishing contacts with insurance companies, pitching to investors and meeting investors. It was a great learning about promoting your company the US style, because this style is very different to pitching your idea in Europe or in Estonia. Estonians are great engineers, but they are not well prepared to pitch their ideas.

After San Francisco I came back to Estonia for a few months, then we raised another round of 400 thousand from one Austrian insurance company. Then we moved to Austria and built our team there, we spent there a few months, and then we moved to Zurich, because we raised quite a significant funding from venture fund of insurance company Helvetia. Helvetia operates all over Europe, but they have a head office in Switzerland. To get the cooperation going and speed it up, we had to be close to our large investor and client Helvetia.

Now we were for a few months in Estonia and are getting ready to move to Berlin, because we are building a sales team in Germany. Over three years we have spent a significant time to build up technology and now it’s time to sell our services and scale the business up. We are now putting together a team of five people in Berlin.

Regarding fundraising, yes, it is similar to a sales process like any other. You pick up a hundred potential investors or potential customers and eventually 1–3% will invest or buy from you. It’s the same logic, for one investor you pick up around a hundred contacts. It’s definitely a full time job to raise funds. I really admire people who are able to work on product development and fundraising at the same time, because I know what a great effort it is. If somebody says “I have not been able to fundraise”, I always ask “how many contacts did you cover, what is your pipeline”, and if the answer is twenty — thirty, I know that this is not a real fundraising. This is something the founders have to acknowledge, it is part of the process and it is the same everywhere. It is the same in the US, the same in Europe. To pick up one — two investors, you should cover a hundred contacts.

Evita: How do you keep your determination and focus if you have to accept so many rejections? You mentioned 3–4 investors, which means that you have contacted over 300, 400. How to keep your confidence, when you receive so many rejections, which is a norm?

Meeri: First of all, you have to acknowledge that this is a process. You cannot expect that the first investor will say “hey, this is a great idea!” and will invest in your company. You have to acknowledge that this is how it goes that 99 will say “No” and one will say “Yes”. Then psychologically you are fine with that. When investors say “No”, you have to understand why. In some situations your pitch does not match their investment criteria, which is then absolutely fine. But in some cases you will learn that your product or focus is not right, and then you can start adjusting it and creating a better story. Sometimes you have a great product, but your story is not appealing enough. Investment is also an emotional process, investors should have an interest to be involved with you for the next 7–10 years. Over time, the more you speak, the more you understand what is the story investors want to hear, and you become better in creating value proposition for investors and for your customers, also you get more confident that your offering has a value and that you are doing a great thing.

Read the whole interview here.

Pedersen & Partners is a leading international Executive Search firm. We operate 56 wholly owned offices in 52 countries across Europe, the Middle East, Africa, Asia & the Americas. Our values Trust, Relationship and Professionalism apply to our interaction with clients as well as executives.

If you would like to conduct an interview with a representative of Pedersen & Partners, or have other media-related requests, please contact: Anastasia Alpaticova, Marketing and Communications Manager at: anastasia.alpaticova@pedersenandpartners.com