Jim Ward, President, The Ward Group
In an interview with Invest: Jim Ward, president of The Ward Group, discussed how the rise of remote and hybrid work environments has impacted executive search. He also talked about the potential for substantial growth in the healthcare, financial services, and healthtech sectors, and investing in future leaders.
What were some of the highlights for The Ward Group over the past 12 months?
In the last 12 months, we have been navigating the transition out of the COVID-19 period as well as the continued demand for talent. This has been a significant time for us to readjust our goals and outlook, especially considering the economic impact, which was less dramatic than anticipated. In our business of executive search, we have observed a shift in dynamics. During COVID-19, there was a scarcity of talent, and it was a “seller’s market”, but post-COVID, clients have regained more control over the supply and demand equation. We saw a burst of business in the fourth quarter of 2023 and anticipated robust activity in early 2024. Although it started slower than expected, it accelerated considerably in March, putting us back on pace to exceed 2023’s revenue goals. We have a fairly diversified portfolio of clients across various sectors, including consumer goods and services, healthcare, financial services, and higher education. Given our recruiting specialization in the functions of marketing and communications, we have seen increased demand across all sectors—clearly some sectors are more robust than others, but versus 2023 we have seen an overall uptick which is good news!
Have there been other significant changes in the executive search industry, especially compared to the pre-COVID era?
There have been several major changes. First, the advent of video conferencing tools like Zoom and Microsoft Teams has transformed how we conduct business. Previously, much of our time was spent traveling to meet clients and candidates in person. Now, many interactions happen virtually, which has somewhat depersonalized the process. Despite this, we have maintained our success rates in matching candidates with clients by focusing on both skill and cultural fit. Interestingly, many executives were hired without ever meeting their employers in person during COVID-19, yet our retention rates did not suffer.
Second, the hybrid workplace has become more common, offering people greater flexibility and efficiency. This change has also made work-life balance a more prominent discussion point. Clients are now more open to having distributed workforces, allowing talent to work from different locations effectively. This shift has expanded and elevated the talent pool, in many cases enabling us to recruit the best candidates regardless of their geographic location.
Lastly, marketing as a function has evolved significantly in sectors such as healthcare. It has become much more strategic and aligned with business objectives, and therefore much more measurable and accountable. This evolution has expanded our portfolio and revenue. Our clients now see marketing as an investment rather than an expense.
How has the rise of remote and hybrid work environments impacted your industry?
As I mentioned earlier, the rise of remote and hybrid work environments has significantly impacted executive search. Clients and candidates have become accustomed to virtual interactions, which has changed expectations and reduced the need for frequent travel. While this has made the process more efficient, it has also depersonalized it to some extent. However, it has also opened up opportunities for a more distributed workforce, allowing talent to work from various locations while still being effective. This has broadened the talent pool and made it easier to find the right candidates for clients across different regions.
In which areas do you see the most potential for growth for The Ward Group, both in terms of industries and markets?
We work with clients across the country and have designed our process to be intimate and client-focused, so we do not aspire to become a global search firm. From a sector standpoint, healthcare continues to be a significant area of growth. The healthcare marketplace is vast and includes providers, payers, and healthtech companies. The healthtech sector is particularly promising despite recent financial market challenges. Personalized healthcare and home health services are expected to grow significantly. These areas focus on maintaining health rather than just treating illnesses, which aligns with the broader trend toward preventive care. This shift requires changes in payment models and adoption rates, but it represents a significant opportunity for growth and innovation in the healthcare sector.
The results of these changing dynamics have increased need and demand for data-centric marketing and communications leaders who in turn measure results. Financial services is another area with substantial growth potential. The sector is becoming more consolidated, and there are pockets within it that are expanding rapidly. For example, the registered investment adviser (RIA) marketplace is growing quickly, with private equity firms funding growth opportunities and developing the necessary infrastructure for continued expansion. Digital technology also plays a crucial role in both healthcare and financial services, providing efficiency and customization opportunities that were previously unavailable.
In terms of workforce development or leadership development, are there any initiatives or measures that you are taking to foster either of those areas?
We position it as executive development versus workforce development. Workforce might be thought of as the broadest group, and we usually deal with the higher end of the pyramid. In executive development, we advise our clients on organizational structures and talent assessment while sharing market analysis and best practices to help them achieve their business goals.
We assess the talent and do leadership assessment, focusing on capabilities rather than just skills. We identify gaps and consult with clients on how to fill those gaps to become more effective.
We consider ourselves in both the recruitment and retention business.,. We develop relationships that extend beyond when a leader starts by helping with the assimilation process and providing clients with ideas on how to afford the leader the best opportunity to succeed quickly and enjoy long-term success.
What are your goals and priorities for the next two to three years and what will be your main strategies, plans, and upcoming projects for The Ward Group in the near future?
The Ward Group celebrated its 30th anniversary in April 2023. We have had the good fortune of building our Ward Group team where people have stayed for a long time and enjoyed success. We are now in the early stages of gradual transition.
We are now bringing in a couple of newer people from different demographics, including my son. This transition involves retaining our seasoned team members while integrating new blood and fresh thinking. We aim to further develop our portfolio of skills to meet the changing utilization of new technologies to meet the needs of our clients. This transition is about identifying the leaders of tomorrow and investing in their careers for long-term relationships. We want to ensure that our transition is smooth rather than abrupt.
We have also been fortunate to capitalize on opportunities when we recognize them, and we look forward to continuing to do so. We have to meet market needs, by investing in ourselves to accommodate those needs. It is not easy, but we excel at figuring out market dynamics and building teams around future needs and opportunities.
Lastly, there are two things that are worth exploring in the future. One is the cost of living in Boston, which is extraordinarily high and impacts recruitment. The other is the relocation component, as people may be less willing to move due to dual careers, life stages, or costs. Boston represents about 25% of our portfolio, with the rest around the country, including high-cost areas like New York and the West Coast. This affects our recruiting strategy and investment in people.
At the end of the day, we are optimistic that we will achieve/exceed our goals for 2024 as we continue to build a strong team and develop long-term successful client relationships.
