BUILDING AN INTERNATIONAL BRAND
(SOME
LESSONS LEARNED)
Russell Clements | russell@cube19.com
Russell Clements | Chairman | cube19.com |
@RUSSCLEM65
MY PROFILE
Age:
49
Lives:
North London with wife & three children.
Educated:
Essex University (BA Hons Government & Economics)
Wharton Business School University of Pennsylvania
(Advanced Management Programme)
Career:
1986 Sales Executive - Computing Newspaper
1986 Recruitment Consultant – Computer Futures
1991 Sales Director – Computer Futures
1999 Managing Director – Computer Futures
2001 Deputy CEO – SThree
2004 - 2012 CEO SThree PLC
Present: Non Executive Chairman – cube19 &
Oyster Partners
STHREE KEY FACTS
• Established in 1986, IPO 2005
• 54 Offices in 21 countries
• 100% organic growth through home grown management
• Pure Play Specialist, particular strength in “STEM” disciplines
• 70% of Gross Profit from international offices
• Contract: 60% Permanent: 40%
• Derived from International Business
• ICT: 40% of business 60% Engineering, Pharma, Bio Tech, Oil & Gas
• Profitable every year since inception
• Current Market Capitalisation - $800m
STHREE’S GLOBAL PRESENCE
AMERICAS
Boston
Calgary
Chicago
Houston
New York
Rio
San Francisco
San Diego
Sao Paulo
ASIA/PACIFIC
Bangkok
Hong Kong
Kuala Lumpur
Miri
Perth
Singapore
Sydney
Tokyo
EUROPE
Amsterdam
Antwerp
Berlin
Brussels
Dusseldorf
Frankfurt
Hamburg
Moscow
Munich
Oslow
Paris
Rotterdam
Stuttgart
Zurich
MIDDLE EAST/
INDIA
Doha
Dubai
Mumbai
UK & IRELAND
Aberdeen
Birmingham
Bristol
City of London
Dublin
Glasgow
Leeds
London
Manchester
THE STHREE EXPERIENCE
STHREE HAS A MULTI BRAND STRATEGY
TWO TYPES OF SPECIALIST STAFFING MARKETS
DEFINED BY CANDIDATE MOBILITY
Accountancy
Banking
Banking
I.C.T
Pharmaceuticals
H.R
Oil & Gas
Local
Oil & Gas
Pharmaceuticals
Global
Global candidates provide an ability to take larger geographical steps.
Approximately 30% of consultants are working on global candidate markets.
THE FOUR DIMENSIONS TO STHREE’S
INTERNATIONAL GROWTH
Increase
headcount in an
existing office into
a new sector e.g.
Sydney Banking
Increase headcount
in an established
sector e.g. Munich
ICT
Open entirely
new regions
e.g. Sao Paulo
Increase office
footprint in existing
geography e.g.
Perth
The majority of planned growth come from additional heads in existing locations, in both
existing and new sectors.
SECTOR DIVERSIFICATION LEADS TO GLOBAL
GROWTH
OR HOW DO YOU GET FROM GLASGOW TO SINGAPORE?
SCOTLAND
SCOTLAND
SE ASIA
SE ASIA
IT
Oil & Gas
Oil & Gas
Oil & Gas
Based in
Glasgow
Based in
Glasgow
Virtual Office
Based
Singapore
PHASE I
Established IT
franchise looks
to diversify
PHASE II
North sea oil and
gas market a
logical next step
2005/6
2006
Based Glasgow
PHASE III
Opportunities to
extend oil and
gas market to SE
Asia remotely
2008
PHASE IV
Physical relocation
to Singapore
initially to focus
on oil & gas
market
2009
SINGAPORE IT
SINGAPORE
Middle Office
Banking
SINGAPORE
Accountancy
PHASE V
Due to physical
proximity a
number of new
markets become
accessible
2009
STHREE’S “SKI RUN” MODEL
Complex ventures operationally; will definitely require external resources.
Ventures where SThree has some experience in the country but the venture
incurs a higher operational risk than Amber ventures; e.g. complex
regulation, a country which we have extensively tested but have no physical
presence
Ventures where SThree has a presence in the Country but not the City.
Ventures where SThree already has a presence in the city i.e. a new sector
being established.
Decreasing Risk
Ventures in virgin territory; in some cases external resources may aide us
SOME PRINCIPLES APPLIED
INTERNATIONALISATION:
SOME PRINCIPLES APPLIED
•
Everything starts with our overall strategy – all potential international ventures
should be judged in line with that strategy
•
Make fact based decisions – hope/hubris is not a strategy
•
International expansion should be an “As Well As” not an “Instead of” activity
•
Wherever practical, test your international ventures remotely/virtually
•
Be prepared to pull the plug – after the event or before you jump off the kerb – don’t
sleepwalk to potential failure through pride/obligation
•
Understand the P&L dilution as well as the cash cost
LESSONS LEARNED
10 LESSONS LEARNED
•
Internationalise sooner – not wait 12 years
•
Diversify sectorally
sooner
– Global Markets (e.g. International Banking, Oil &
17/03/14
- £74.11
Gas) open doors
that other
sectors cannot
17/04/14
- £74.11
16/05/14 - £74.13
•
Developed a 5 year plan sooner – but it needs to be agile
•
Focus brand remits more specifically – more limited remits force international
thinking
•
Think more carefully about the costs of doing business overseas e.g social
costs
10 LESSONS LEARNED (CONTINUED)
• Be less inclined to export UK style remuneration schemes
• Provide a “softer landing” for relocated staff
• Conduct planning & post implementation reviews – mistakes are your
best learning tool
• Be more questioning on the motivation of re-locaters and consider their
market background
• Show more patience in terms of ROI in complex markets
“GLOBALISATION HAS CHANGED US
INTO A COMPANY THAT SEARCHES
THE WORLD, NOT JUST TO SELL BUT
TO FIND INTELLECTUAL CAPITAL –
THE WORLD’S BEST TALENTS AND
GREATEST IDEAS” – JACK WELCH
Thank You
Russell Clements | russell@cube19.com | @RussClem65 | www.cube19.com