Partner – Resources & Toolkit

2

Table of Contents

Ward Howell Partner Information
Ward Howell History
Ward Howell Marketing Collateral
Market Research Sample: eCommerce
Preliminary Client Presentation: Hershey’s
Preliminary Client Presentation: Shiseido

4

Ward Howell Partner Information

5

Ward Howell Partner Information

Structure of Ward Howell International Group

Ward Howell International Group (WHIG), is a company registered in England and Wales, with its
principal office in London, and owned equally by 3 shareholders; Bernd Prasuhn, Asad Haider and
Jutta Lohkampff. The Company has a current Board of Directors composed of the 3 shareholders;
however, with a future objective to recruit a number of non-executive directors presided over by a
chairman.
WHIG has registered globally the IP rights of the trademark “Ward Howell” and “Ward Howell
International” with the exception of Russia, CIS and Philippines.. As the licensor, WHIG shall license
the use of the trademarks “Ward Howell” and “Ward Howell International” to member firms. Only
member firms, not individuals, can be licensees of WHIG.

Mission and Objectives of Ward Howell International Group

The mission and objectives of WHIG, as represented by the Board, are:

•  Leading the long term strategic direction of Ward Howell International Group and setting the policy
guidelines aligned to this strategy

•  Recruiting and qualifying new member firms
•  Mediating and resolving disagreements among member firms
•  Owning and managing the global website for WHIG, as well as managing the
•  intranet accessible by all member firms
•  Supporting member firms on branding collateral
•  Protecting the "Ward Howell" brand name and trade mark
•  Utilize the member firms financial contributions towards further strengthening the
•  brand globally

Geographic Footprint

The operational business of Ward Howell International Group is carried out by the licensed member
firms and organized in 6 regions:

•  North America
•  South America
•  Western Europe
•  Eastern Europe
•  Middle East/Africa
•  Asia/Pacific

6

Ward Howell International Group currently operates in the following cities:

•  Toronto, Canada
•  New York City, USA
•  West Palm Beach, USA
•  San Francisco, USA
•  Mexico City, Mexico
•  Barcelona, Spain
•  Dusseldorf, Germany
•  Vienna, Austria
•  Moscow, Russia
•  Johannesburg, South Africa
•  Dubai, UAE
•  Karachi, Pakistan
•  Delhi, India
•  Seoul, South Korea
•  Shanghai, China
•  Hong Kong
•  Singapore
•  Manila, Philippines
•  Sydney, Australia

Structure of Ward Howell International, North America

Ward Howell International, North America (WHI), is a company registered in New York State, with its
principal offices in New York City, and owned equally by 2 shareholders, Asad Haider and Farah
Haider. WHI has a Board of Directors composed of the 2 owners, 2 Senior Partners – Philip Lefebvre
and Peter Grech, and a number of future Senior Partners.

WHI, as the licensee, shall license the use of the trademarks “Ward Howell” and “Ward Howell
International” to sublicensees.

Mission and Objectives of Ward Howell International, North America

The mission and objectives of WHI, as represented by the Board are:
•  Leading the long term strategic direction of Ward Howell International, North America and setting

the policy guidelines aligned to this strategy
•  Recruiting new partner firms to support the growth of the business
•  Investing in office space in major business hubs across the US that have reached an agreed upon

critical mass to warrant such an investment (example: 3 partners plus support staff)
•  Coordinate the activities of sublicensee firms
•  Owning and managing the North American website for WHI
•  Protecting the "Ward Howell" brand name and trade mark
•  Other – Refer to Addendum A

7

Sublicensee Structure (Partners)

With the aim of expanding the operations in North America, WHI will actively recruit Partners
(sublicensees), to support this objective. These sublicensees will exclusively represent the Ward
Howell brand in North America via a Management Consultant Agreement between WHI and their
individual registered companies.

Sublicensees will be recruited on the basis of cultural fit, experience and industry expertise. This
expertise includes but is not limited to the following practices:
•  Financial Services
•  Consumer Package Goods
•  Life Sciences
•  Industrial
•  Technology
•  Retail
•  Hospitality
•  The objective will be to not over-populate practices but rather recruit partners that will broaden

WHI’s expertise. This may include recruiting partners with a particular strength in sub-sectors
within the broader practice groups.
•  There will not be any geographic limitations imposed to sublicensees and therefore all partners will
have the ability to service their clients, and win new ones, in any geography – both domestically as
well as internationally.

Benefits of the Sublicensee Structure

The objective of structuring the North American operations with sublicensees is to benefit from the
following:
•  Promote a culture of entrepreneurialism where partners are solely responsible for their own

businesses while being well supported by the WHI structure
•  Benefitting from a lower tax structure as well as the following possible expense deductions:

o Automotive mileage or taxi o Travel
o Entertainment
o Cell phone allowances
o Internet
o Home office of outside office rent o Education
o Insurance
o Employee salaries
o Office supplies
o Depreciation on equipment
o Professional fees
o Other dues and subscriptions

8

Fee Structure and Invoicing Process

WHI will act as the central billing party between sublicensees and their clients. Invoices will be
generated through WHI and once the fees are collected, the sublicensee will invoice WHI their
portion of the collected fee.

WHI will structure its fees in accordance to the following itemization:

•  70% of billed and collected fees are transferred to the sublicensees
•  30% of billed and collected fees are retained by WHI to support the cost structure of
•  the overall operation

ADDENDUM A: Ward Howell – Partner Support Framework

•  Marketing support
•  Customized brochure design
•  Stationary and business cards
•  Proactive Media and PR exposure

•  Workspace
•  Access to fully furnished office space in major cities (available today in NYC and Toronto
with plans for facilities in Chicago, Dallas, West Palm Beach and San Francisco)

•  Execution support
•  Identification
•  Candidate development
•  Client update reports

•  Business development support
•  Industry data mining and market intelligence support
•  Internet-based talent mapping

•  Global partner collaboration
•  Create introductions to strategic C-level Advisory Partners
•  Facilitate introductions to WH Search Partners globally
•  Global Partner conferences (next: July 2016, NYC)
•  Sharing of best practices among global Partners
•  Development of and participation in global practice groups

•  Administration & search support
•  Interview scheduling
•  Proprietary database management
•  Support client applicant tracking systems
•  Group E&O and general liability insurance discounts and administration support
•  Group medical, dental and life insurance discounts and administration support.

•  Accounting support
•  Centralized invoicing
•  Legal and Tax advice services at group discount

9

10

Ward Howell History

11

12

The Legacy

13

Henry Wardwell Howell – 1910 – 1980

•  Born in Sewicley, Pennsylvania on January 27, 1910; he was the eldest of three children
•  Ward attended St. Paul's School, graduating in 1928, and then went on to Yale where, as Ward

said later, he was "the only boy with patches on his pants"
•  Ward received his AB degree from Yale in 1932
•  His first job was runner for Bonbright & Co. in New York
•  Four years later he married Margaret Noyes in 1936
•  By age thirty Ward was Bonbright's syndicate manager, which called for considerable travel and

gave Ward the opportunity to know a number of prominent men in the banking and investment
community across the country

14

Early Career

•  In 1942, Bonbright closed its doors and Ward took a position with the U.S Air Force as a war
contracts negotiator

•  When the war ended he took a position with the Middle East Company as a Vice President with
the mission of setting up an office overseas to act as a sales representative for US manufacturers.
Ward travelled extensively in Egypt, Iran, Turkey, Iraq etc

•  Ward returned to the US in 1947, and in 1948 took a position with McKinsey & Company in New
York

•  He left in early 1951 and shortly afterwards he set up Ward Howell Associates

15

Golden Era

•  After a hugely successful and eventful career where he nurtured and grew Ward Howell to a
premier Executive Search firm, unfortunately Ward met with an accident

•  On the night of August 30, 1980, while he was driving back to his home near Cooperstown with
members of his family, his car was struck from behind

•  Ward died instantly, the others in the car suffered minor injuries. It was a tragic and senseless end
to the life of a fine human being and the end of a golden era

•  Ward was survived by his wife, Margaret and four children, Janet, born in 1939, Henry, born in
1942, David, born in 1948, and Clinton, born in 1950

•  Henry, David and Clinton are currently living in the US and pursuing their passions

16

Ward Howell Associates
Executive Recruiting 1951 - 1974

•  One cool November day in 1951, a man standing six and a half feet tall and weighing well over
200 pounds was observed in New York City's Grand Central Station, jammed into a public
telephone booth

•  He was armed with a quantity of small change, and with every indication that he planned on a long
stay

•  When the large gentleman finally emerged after almost an hour, he was cramped, damp and sadly
wrinkled, but he was clearly happy

•  Wardwell Howell had just completed a successful man hunt

17

First Search November 1951

18

Saturday Evening Post February 23, 1957

19

Business Foundations

•  Temporarily out of work himself, forty - one - year- old Ward had undertaken this task only to keep
himself solvent while looking for a job himself

•  Thinking back on it later, however, he reflected that the man hunt had been not only profitable but
a good deal of fun

•  Accordingly he decided to call off his personal search for employment and devote himself full time
to the business of hunting executives for corporate clients

•  On November 28, 1951 Ward opened an office for business in New York City as Ward Howell
Associates, Inc

•  The revenue of the company for the first full year of business in 1952 was USD 51, 368.85 and
grew to USD 1 m. by 1967; within the first fifteen years

•  In 1954 the Partnership was turned into a Corporation and grew rapidly and attained a reputation
for the high quality of people it recruited

•  The firm was also well known for the high quality of its own associates; more than 50% of whom
were graduates from Ivy League colleges

20

Partnership Agreement November 28, 1951

21

Income Statement December 31, 1952

22

Law Suit – NYC vs Ward Howell June 1953

23

“Crank” Letter November 24, 1954

24

Partial list of contacts 1958

25

Business Growth & Consolidation

•  One early search for Heliod [which later became Xerox] placed 3 candidates there who later on in
their careers grew to become Chairman, Group Vice President, and Vice President - Advertising of
Xerox

•  The first overseas office was established in London in March 1968, and the first office on the West
Coast was established in August 1969 in San Francisco, California

•  Ward retired as President and was elected as Chairman in September 1974, a position he retained
till his tragic death in August 1980

•  Ward Howell managed the firm in a collaborative and professional manner yet always with a sense
of humour, fairness and deep respect for all his colleagues

•  He held regular weekly staff meetings where issues were discussed openly and suggestions were
solicited and encouraged from all members

•  His guiding principles of doing business were; confidentiality, integrity and high quality of service to
clients

26

Memo – Office Procedures 1953

27

Office Memo – “Confidentiality” 1963

28

Office Memo – “Sales Approach” 1962

29

London Office – March 1968

30

San Francisco Office – August 1969

31

Retirement as President September 3, 1974

32

Ward Howell Marketing Collateral

33

34

3. Ward Howell Marketing Collateral


35

36

37

38

39

40

41

42

43

44

Market Research Sample: eCommerce

45

E-Commerce Trends - Global, North America and Asia Pac

Business-to-consumer online sales are growing at 20% a year, driven in part by emerging markets
with Asia-Pacific set to overtake North America this year as the world's largest regional ecommerce
market. Latest forecasts from insights provider e-Marketer indicate that the global market will reach
$1,500bn in 2014, a 20.1% increase on the previous year.
B2C ecommerce sales are forecast to reach $525.2bn in Asia-Pacific this year making it the world's
foremost region in this respect. Growing at almost 37% on 2013, it will surge past North America,
which is growing one third as fast, at 12%, to reach $482.6bn. China, unsurprisingly, is the main
source of ecommerce sales in Asia-Pacific, accounting for more than six of every ten dollars spent in
this channel, and it will surpass the USA as the world's largest ecommerce market in 2016, eMarketer
said.
Growth in future years will remain in double digits although the rate of increase will slow to 17.6% in
2015, 15.9% in 2016 and 14.8% in 2017, by when total sales will amount to $2,345bn. While the rate
of increase in Asia-Pacific will inevitably begin to slow, it will still be more than twice as fast at that
seen in North America, which is projected to continue growing at roughly the same rate of 10% to
11%.
There are several factors behind this development, not least the penetration of mobile phones in
developing markets which are helping boost m-commerce. Major brands are also pushing into new
territories in search of growth.

46

ASIA: Ecommerce for FMCG: small share, huge potential

For FMCG, E-commerce is still in its early days with relatively low market share compared to other
key channels. China’s biggest online shopping day, with Taobao and Tmall, Alibaba’s two main
platforms, topping RMB 35 billion ($5.75 billion) in the 24-hour period, growing by more than 80%
over last year and highlighting the growing purchasing power of Chinese consumers, as well as the
increasing importance of ‘e-tailing’ (or e-commerce) for the country. Even for the more technology
evolved markets including Taiwan and Korea, e-commerce is still experiencing explosive growth and
remains a land of opportunity, especially within the FMCG sector

Key Challenges:

CPG Industry Challenges

In figuring out how to win in this new digital world, CPG companies face some major strategic
questions:

•  including how to build a successful business through online retail channels,
•  how to build brands and categories in a socially networked world, and
•  how to exploit technology-driven opportunities to understand consumers more deeply and connect

with them more often.

The proportion of sales via online channels may be reaching a tipping point. In the United States, e-
commerce now represents a $155 billion market, an estimated 6 percent of total retail sales. Although
consumers are unable to touch and view products online and do not like paying shipping charges, the
report identified a number of drivers influencing digital commerce’s reach to consumers that have not
been as widely available in the past.

General Industry Challenges

IT perspective:

Dealing with several third party or internal vendors to collaborate the running of the website
smoothly
Cross border e-commerce payments
Extra costs of integrated web based management tools

People perspective, job retention:

Job hopping amongst e-commerce and digital leaders due to the fast growing industry and
better opportunities elsewhere
Cultural fit of the incumbent - One of the most important competencies in an E-Commerce
leader is the ability to be a change agent but also mesh culturally within the organization.
General talent within the ECommerce and Digital are not mature and seasoned given that
this a relatively new

47

Retail perspective:

There is a subset of retailers that avoid e-commerce altogether, many of whom are rethinking
their strategy and are considering launching e-commerce platforms. Many of these
companies had web sites, some of them excellent, but they often were brand enhancing or
informational - not transactional. The New York Times recently picked up on this trend, noting
that the luxury fashion business - including brands such as Jimmy Choo and Hugo Boss are
embracing direct e-commerce for the first time.

The biggest issue facing retailers is how to engage frugal consumers who are seeking better
value on the internet, requiring retailers to expedite multi channel retailing

Cost of Logistics:

FMCG / CPG business scenario is very different from segments like books, durables etc, as
the margins available are in single digits (and at times low single digits). This is complicated
further by the average product price – which is also low. Therefore the additional costs of
warehousing, processing and distribution (which cannot be charged to the consumer), brings
down the net realization.

The variable order value:

Due to the above reason, most online web-stores find it unavailable to manage low value
orders, however the consumers today are used to low order values and are unlikely to
change that in a hurry.

Ubiquitous retail presence:

FMCG brands & products are very well distributed across the country, with a retail store with
100 meters of most urban homes. This has also lead to the “just in time” mind set. And the
sheer competition among the retailers has meant that the independent neighborhood retailers
extend superb services to the consumer – these include free delivery at your doorstep within
the shortest time for almost any order size.

Lack of deep discounts:

The online stores cannot depend on deep-discounts to drive traffic to their website (unless
they partner & create their own private labels). Deep discounting is not a FMCG / CPG
industry phenomenon

48

FMCG Sector and E- commerce initiatives of some of the top companies

P&G:

CPG companies must make a strategic choice on whether and how to follow suit. P&G, for example,
is piloting its own e-commerce site, www.pgestore.com. However, manufacturers must weigh the
trade-offs, and for many the economics of launching a branded e-commerce site will prove
unfavorable. For those who decide against launching their own Web stores, online retail platforms
such as Amazon.com and Alice.com offer direct access to consumers. P&G has also developed
something called “consumer pulse,” which uses Bayesian analysis to scan the universe of comments,
categorize them by individual brand, and then put them on the screen of the relevant individual. This
allows for realtime reaction to what’s going on in the marketplace.

Digital technology will have just as great an impact on brand communication. Consumers are more
reliant than ever on referrals: 70 percent look to user reviews to inform their purchase decisions.

Unilever:

In addition, social media provides an important channel for CPG companies to “listen” to consumers
without the biases created by conventional research techniques. CPG companies are just starting to
tap into social media to understand brand buzz, monitor the impact of campaigns, and even gain
input into new product development. For example, Unilever used co-creation with its online
community to develop Axe Twist, a fragrance that changes throughout the day. Companies that
ignore this important new information source risk being slower to respond and adapt to their
consumers’ changing needs. New media requires new capabilities, including rigorous performance
tracking, extensive digital-marketing analytics, and flexible vendor management. Winning CPG
companies will be those that invest in these capabilities to keep pace with the digital consumer.

Mondelez:

Mondelez International has formed a mobile-only partnership with Google to develop m-commerce
tools that will drive in-store purchases for brands such as Cadbury and Oreo. Beth Reilly, head of
global digital strategy at Mondelez, highlighted that the business is seeing mobile engagement rates
that are “sometimes four times greater than traditional display”. Mondelez predicts 67 per cent of the
world’s population will have a mobile phone by 2016 and is looking to steal a march on FMCG rivals
using the channel. Mondelez’s deal with Google is similar to those struck by Diageo and Heineken
with Facebook. Marketers are using the tie-ups to react faster to how consumers are using digital
channels to share content and engage with their brands.

Typical Organization Structure:

•  Typically Ecommerce and Digital functions are integrated and fall under the Marketing function
and sometime under the BU Leadership.

•  A number of MNC's in China/Asia have similar structures whereby innovation/strategy is typically
driven by the Marketing Head. The ECommerce/Digital Director works with the BUs and agencies
(3rd party) mainly on the execution of the strategy.

•  Ecommerce leaders primarily evolve from Marketing backgrounds with some exceptions of
individuals from IT.

49

Individual Experience and Backgrounds & Compensation:

Our research shows that within businesses where ecommerce is yet to be strategically significant, a
Head of Ecommerce earning well under $300,000 may well suffice. But as multichannel, ecommerce
and increasingly mobile revenues begin to drive the sales growth of a company then this function
needs representation at a more senior strategic level.

For the largest tier one retailers, the multichannel and ecommerce function is often split, with trading,
content and demand generation being looked after by a director from a marketing or commercial
background, while the technical aspects of the site, the development of the proposition and user
experience are handled by a director with a more technical skill set.

This has the benefit of allowing day-to-day trading to continue without slowing down the speed of
progression – a vital factor in today’s commercial environment where there are rapid developments in
multichannel services and mobile commerce.

Then, depending on the size of the business, a Multichannel Director, ‘Multichannel Director Plus’, or
an MD may top the hierarchy of the function. While the job titles may vary from one organization to
another the actual roles are similar.

The Head Of All-rounder

Responsibilities:

In a smaller company where they are reporting in to a Marketing, Commercial or Finance Director, the
Head of Ecommerce may have full P&L responsibility for the site and a very broad range of
responsibilities. In larger companies a Head of Ecommerce will report into an Ecommerce VP, in
which case their role and responsibilities will be more tightly defined.

Skill sets:

Heads of Ecommerce in smaller businesses tend to be Jack-of-all-trades, so a mixture of technical and trading
experience is the norm. Online trading, merchandising, SEO, user experience, technical and logis>cs will all fall
under their remit. They may have plaCorm selec>on and re-plaCorming experience but are unlikely to have
been the final decision-maker on such a project. What’s oHen lacking in candidates at this level is a high-level
strategic view of where ecommerce fits in the business and the skills and experience to work alongside board-
level execu>ves.

Background:

They may have come from either a technical or marke>ng/trading type ecommerce background. 5 to 10 years
ago heads of ecommerce oHen came into the role fairly light on direct experience but with knowledge of retail
opera>ons, marke>ng and/or product. Today, new candidates coming into this role are far more likely to have
more substan>al digital experience, and to have come up the career ladder through ecommerce teams and
digital agencies.

Salary range: $250,000 - $300,000

50