CEO’s on lease

CEO’s on lease – Latest trend among India Inc?

CEOs are very integral to any organization, infact the buck stops at them! Whether it is steering their company through a very difficult phase or growing it organically / inorganically, they are at the forefront of decisions which affect an organization in various ways. On the other hand when the organization is in the dumps, the CEO is the first to get the blame for all that is wrong. Vikram Pandit had to reduce his salary to $1 when Citibank was in total distress. Eric Schmidt was taken on board as the CEO when the Google founders realised that the need professional hands.

What’s the concept of a CEO on lease?

These days a “CEO on lease” concept has suddenly started gaining traction in the country. Various HR consultancies such as Ma Foi, Hewitt Associates, Adecco, Manpower etc. have various people on their payrolls who work as CEOs for various firms. These people may be senior level executives, retired professionals, senior management who maybe working in the best of the companies.

So what’s the point of taking a CEO on lease?

With the growth of many small and medium sized companies in the country over the years and also the entry of various international players across sectors, the industrial sector has greatly benefited. But many of them face a number of challenges in setting up their businesses, managing through the various approvals from ministries, deciding the finances, marketing and HR policies.

This is why CEO’s on lease come into the picture – Since these companies may not be able to afford a full time CEO with good experience and expertise or may take a lot of time in finding a new one, they may go for this route. And therefore they would contact an HR consultancy and get a CEO on board for around 6-12 months. Once the company has been set up and running, the CEO on lease goes back to the consultancy in search of opportunities for another organization.

So what are the benefits of a CEO on lease?

It is a great career jump for people who may generally not rise so high up the ladder in such a small period of time. Such a position entails them to a lucrative and highly challenging role with a salary package of about Rs 30-60 lakhs.

One can consider an example of German firm TFL who bought over an Indian company to enter India. The person invited to be the CEO temporarily helped the company get the necessary approvals, provide the necessary guidance for the Indian market and also helped in setting structures and the people management models for the company. The fact that he was later hired as the chairman of TFL Quinn India is another benefit which would have happened obviously because they were happy with his role.

CEOs on lease seems to be the in – thing these days! Are you planning to join the bandwagon?

An emerging career option for MBAs

Real estate: an emerging career option for MBAs:

With increasing number of developers, projects, introduction of new formats, role of private equities and expansion of multinationals, real estate industry has outgrown the expected size in recent times. Besides, development of infrastructure, government regulations and infusion of FDI has supported the expansion of real estate sector many folds. With the increasing size of industry, there is an increasing demand of professionals across all segments.

One of the most promising job profiles in this sector is of a real estate consultant, which is much in demand both for the commercial and residential segments. The number of jobs for real estate agents is expected to grow as the players operating in residential agents are many but it is difficult to find trusted advisors for commercial properties. With the augment of multinationals, outsourcing business and expansion of Indian companies, a property consultant’s role is more evident and valued. One of the thrills for a real estate consultant is the constant learning he derives from fast changing market trends, launch of new projects, change in government reforms, introduction of new formats and changing client’s requirements.

Working as a consultant in commercial properties means that you will be interacting with the heads, admin/facility managers and senior management across industries. Thus, it is important for the consultant to keep an update on the client’s industry movement. One needs to get into the psyche of the client to understand his requirements.

As the country lacks specialised academic courses and institutes for real estate, it is both profitable and beneficial for MBA graduates as it generates new scope for them. There are two main routes into real estate consulting. One is directly from the campus (undergraduates and MBAs) into entry-level positions (research/market analyst, business development). The other leads from industry into middle-level positions from specific industries (banking, insurance, retail and financial services) and functions (marketing or client relation associate). It’s a high-paying, high-profile field that offers students the opportunity to take on a lot of responsibility right after their master’s degree and quickly learn a great deal about the real estate world. After making a stint of 2-3 years with reputed developers, many people shift from project marketing to real time consultancy.

Getting a job opportunity with a reputed consultant may be a challenge for freshers. However, stint of 1-2 years in any marketing field with good qualification set may get you an entry level position with a trusted banner in consultancy. In consultancy, one can earn big money; a large part of the remuneration is sales driven, so more one can sell, more one earns. After spending 2-3 years with a professional consultant, many practitioners find it lucrative to start their own set-up.

Employment with a reputed realtor or working with us as well gives a secure income along with annual incentives based on sales achieved. Besides, while choosing a consultant in commercial real estate, clients seek trusted company with long-term presence and staff strength. Working with a reputed realtor can help learn the tricks of the trade following ethics and complete professionalism. There are some skills required of a good real estate marketer. These are excellent communication skills, smart decision-making, creating trust factor, analytical reasoning, being aware of the latest market trends and future market predictions, efficiency in financial calculations and high patience levels.