Selecting a Senior Tooling Executive
by John W. Guarniere, SPHR
President, RCE Associates
Executive Search Consultants
I was recently retained by a major corporation involved in precision metal stamping and custom injection molding to find them a senior tooling executive. Top management realized that in order to sustain a projected 20% growth on a world wide basis over the next decade, they would need to develop an organizational structure and climate that would utilize the strengths of the organization, and would develop areas of weakness.
One clear vision by the Chief Executive Officer was to have more control over the organization’s tooling activities while the trend throughout the industry was to outsource those activities. Simultaneously, the company was focusing on increased demands for subminiature, close tolerance molded components as the world marketplace continued to reduce the size and weight of components for new products.
Since this global manufacturer of electrical connectors had already promoted those few key executives with molding experience into other newly created positions, a search for someone who could bring even stronger molding expertise from the outside appeared to be the solution.
US Tool and Die Industry Facts*
• 88,000 Tool and Die Production Workers
• 7,000 tooling establishments, of which only 24% had more than 20 employees
• 75% of shops run by private independents °20% of the work done for the automotive industry
• Wages 7% higher than the general manufacturing population
• Demand for Tool and Die Makers dropping while design engineers increasing
• 50% less training invested in tooling workers
*Encyclopedia of American industries
The following is a brief summary of the steps that RCE Associates has already taken to find a senior tooling executive.
Few people realize how much work goes into a technical search of this nature, or what research strategies are involved. This particular search took more than 300 hours over a six month period. It also presented several interesting obstacles that can especially be appreciated by senior level executives in the plastics and metal stamping industry, where the demand for senior technical executives outpaces the supply.
My client, a senior executive with extensive demands on his time, sought a special individual with strong technical credentials who would be responsible for $50 million worth of tool, die, and mold making activities. This individual would oversee several facilities throughout the US, and would indirectly supervise 200 employees. Additionally, he would oversee $25 million worth of outside tooling contracts.
In order to succeed in a search of this nature, a search consultant must identify those organizations most likely to employ individuals with the experience, knowledge, skills, and ability required, and then network with the appropriate executives for referrals. Unfortunately, 80% of the tooling organizations developing these skills had on average less than 20 employees per shop. Most of these organizations were single unit, family run businesses and their owners were entrepreneurs who were financially set and/or did not have the disposition for a corporate position of this magnitude.
This left us with the top 100 custom injection molders who in most cases bought their tooling needs from these same suppliers. Unlike Europe, the US has not made tool and die making careers attractive enough for many of the better students, leaving us with a limited number of executives who have both made and designed molds for close tolerance, high volume, engineered plastics applications, and who have also managed major departments within a Fortune 500 organization.
Target Organizations
• Top 100 Custom Injection Molders
• Top 25 Contract Tool and Die Organizations specializing in Multicavity Mold Making
• Top 10 Connector Manufacturers
• Big 3 Automakers
• Top 10 Custom Injection Molders and Metal Stampers making subminiature, high volume, close tolerance components
Our strategy for this assignment was to network with individuals who would be selling state of the art technology to the custom injection molding industry, such as Computer-Aided Design and Electrical Discharge machining sales executives. At the same time I was networking with top and middle management involved in close tolerance, high volume clean room activities at the top 100 custom injection molders in North America. As a result of my industry contacts and research ability, I identified over 200 candidates in senior and middle management positions with 40 having varying levels of interest and experience.
Of these, approximately 20 appeared to best meet our requirements and to be worth further discussion with my client. After meeting with my client and providing him with very basic employment data on these individuals, he selected the 10 he considered to have the most potential. In order to move along the search, which was now in the beginning of the third month, I met with these candidates personally at their convenience and in most cases at their residence or place of business.
After evaluating the magnitude of each candidate's position related achievements, it was clear that only a few of these individuals met the vast majority of the requirements on our wish list. Only four had senior level management and technical experience that would complement the metal stamping backgrounds of the other company executives, and would meet most of the requirements originally sought.
Of the first 200 calls that I made, there were two which paid off. I noted that a senior molding manager at a particular organization had been building his staff of designers and mold makers by running frequent help wanted advertisements. Simultaneously, a tooling industry executive suggested that the same individual might be a candidate. I was aware that the public parent company would be selling this division, and that this uncertainty was a reason for this otherwise content employee to consider the position opening. It was only after I had sent this molding manager a written description of the position that he realized its magnitude and recommended that I speak with and consider his immediate supervisor as a candidate.
Subsequently, I had several extended telephone conversations with this individual, who was responsible for $15 million worth of close tolerance, high volume molding activities, before I traveled to his work site and personally met and interviewed him. Although this candidate did not meet our wish list of qualifications, it appeared that he was qualified and interested in the opportunity at hand. I had been initially scheduled to meet with another potential candidate at the same geographical location, and I quickly arranged for this second meeting, trying to keep expenses down while moving the search along as quickly as possible.
We were fortunate to identify four excellent and interested candidates and to have two who were stand outs. Our first choice candidate, unfortunately, had relocated from the northeast to the southeast two years earlier. After his family visited the hiring community, the family decided that another relocation would be too disruptive, and not a good choice at this time.
When our first candidate informed us that he would have to decline the position offer, we immediately turned to our equally qualified second choice candidate. Fortunately, this candidate did not have any major family considerations regarding relocation. He was subsequently offered the position, and after some minor salary negotiations, accepted and began his new position.
We are sure that his past outstanding achievements will continue in this new position and that he will meet the clear goals set by top management. The return on my client's investment in our companies services will be tenfold.
by John W. Guarniere, SPHR
President, RCE Associates
Executive Search Consultants
I was recently retained by a major corporation involved in precision metal stamping and custom injection molding to find them a senior tooling executive. Top management realized that in order to sustain a projected 20% growth on a world wide basis over the next decade, they would need to develop an organizational structure and climate that would utilize the strengths of the organization, and would develop areas of weakness.
One clear vision by the Chief Executive Officer was to have more control over the organization’s tooling activities while the trend throughout the industry was to outsource those activities. Simultaneously, the company was focusing on increased demands for subminiature, close tolerance molded components as the world marketplace continued to reduce the size and weight of components for new products.
Since this global manufacturer of electrical connectors had already promoted those few key executives with molding experience into other newly created positions, a search for someone who could bring even stronger molding expertise from the outside appeared to be the solution.
US Tool and Die Industry Facts*
• 88,000 Tool and Die Production Workers
• 7,000 tooling establishments, of which only 24% had more than 20 employees
• 75% of shops run by private independents °20% of the work done for the automotive industry
• Wages 7% higher than the general manufacturing population
• Demand for Tool and Die Makers dropping while design engineers increasing
• 50% less training invested in tooling workers
*Encyclopedia of American industries
The following is a brief summary of the steps that RCE Associates has already taken to find a senior tooling executive.
Few people realize how much work goes into a technical search of this nature, or what research strategies are involved. This particular search took more than 300 hours over a six month period. It also presented several interesting obstacles that can especially be appreciated by senior level executives in the plastics and metal stamping industry, where the demand for senior technical executives outpaces the supply.
My client, a senior executive with extensive demands on his time, sought a special individual with strong technical credentials who would be responsible for $50 million worth of tool, die, and mold making activities. This individual would oversee several facilities throughout the US, and would indirectly supervise 200 employees. Additionally, he would oversee $25 million worth of outside tooling contracts.
In order to succeed in a search of this nature, a search consultant must identify those organizations most likely to employ individuals with the experience, knowledge, skills, and ability required, and then network with the appropriate executives for referrals. Unfortunately, 80% of the tooling organizations developing these skills had on average less than 20 employees per shop. Most of these organizations were single unit, family run businesses and their owners were entrepreneurs who were financially set and/or did not have the disposition for a corporate position of this magnitude.
This left us with the top 100 custom injection molders who in most cases bought their tooling needs from these same suppliers. Unlike Europe, the US has not made tool and die making careers attractive enough for many of the better students, leaving us with a limited number of executives who have both made and designed molds for close tolerance, high volume, engineered plastics applications, and who have also managed major departments within a Fortune 500 organization.
Target Organizations
• Top 100 Custom Injection Molders
• Top 25 Contract Tool and Die Organizations specializing in Multicavity Mold Making
• Top 10 Connector Manufacturers
• Big 3 Automakers
• Top 10 Custom Injection Molders and Metal Stampers making subminiature, high volume, close tolerance components
Our strategy for this assignment was to network with individuals who would be selling state of the art technology to the custom injection molding industry, such as Computer-Aided Design and Electrical Discharge machining sales executives. At the same time I was networking with top and middle management involved in close tolerance, high volume clean room activities at the top 100 custom injection molders in North America. As a result of my industry contacts and research ability, I identified over 200 candidates in senior and middle management positions with 40 having varying levels of interest and experience.
Of these, approximately 20 appeared to best meet our requirements and to be worth further discussion with my client. After meeting with my client and providing him with very basic employment data on these individuals, he selected the 10 he considered to have the most potential. In order to move along the search, which was now in the beginning of the third month, I met with these candidates personally at their convenience and in most cases at their residence or place of business.
After evaluating the magnitude of each candidate's position related achievements, it was clear that only a few of these individuals met the vast majority of the requirements on our wish list. Only four had senior level management and technical experience that would complement the metal stamping backgrounds of the other company executives, and would meet most of the requirements originally sought.
Of the first 200 calls that I made, there were two which paid off. I noted that a senior molding manager at a particular organization had been building his staff of designers and mold makers by running frequent help wanted advertisements. Simultaneously, a tooling industry executive suggested that the same individual might be a candidate. I was aware that the public parent company would be selling this division, and that this uncertainty was a reason for this otherwise content employee to consider the position opening. It was only after I had sent this molding manager a written description of the position that he realized its magnitude and recommended that I speak with and consider his immediate supervisor as a candidate.
Subsequently, I had several extended telephone conversations with this individual, who was responsible for $15 million worth of close tolerance, high volume molding activities, before I traveled to his work site and personally met and interviewed him. Although this candidate did not meet our wish list of qualifications, it appeared that he was qualified and interested in the opportunity at hand. I had been initially scheduled to meet with another potential candidate at the same geographical location, and I quickly arranged for this second meeting, trying to keep expenses down while moving the search along as quickly as possible.
We were fortunate to identify four excellent and interested candidates and to have two who were stand outs. Our first choice candidate, unfortunately, had relocated from the northeast to the southeast two years earlier. After his family visited the hiring community, the family decided that another relocation would be too disruptive, and not a good choice at this time.
When our first candidate informed us that he would have to decline the position offer, we immediately turned to our equally qualified second choice candidate. Fortunately, this candidate did not have any major family considerations regarding relocation. He was subsequently offered the position, and after some minor salary negotiations, accepted and began his new position.
We are sure that his past outstanding achievements will continue in this new position and that he will meet the clear goals set by top management. The return on my client's investment in our companies services will be tenfold.