Should Korn Ferry prioritize expanding its Leadership and Professional Development offerings or focus on enhancing its existing Executive Search services to drive revenue growth?

Introduction

The trade-off we're examining today is whether Korn Ferry should prioritize expanding its Leadership and Professional Development offerings or focus on enhancing its existing Executive Search services to drive revenue growth. This decision is crucial for Korn Ferry's strategic direction and future success in the competitive talent management industry. I'll analyze this trade-off by examining the current product landscape, potential impacts, key metrics, and experimental approaches to inform our decision-making process.

Step 1

Clarifying Questions (3 minutes)

• Based on recent market trends, I'm thinking there might be increasing demand for leadership development services. Could you share any data on market growth rates for Executive Search versus Leadership Development?

Why it matters: Helps assess market opportunity and potential ROI for each option Expected answer: Leadership Development growing faster, but Executive Search still core revenue driver Impact on approach: Would influence resource allocation and growth strategy

• Considering our current revenue mix, I'm assuming Executive Search is still our primary revenue source. What percentage of our revenue currently comes from Executive Search versus Leadership and Professional Development?

Why it matters: Understand the financial implications of shifting focus Expected answer: Executive Search ~70%, Leadership Development ~30% Impact on approach: Would affect risk assessment and potential cannibalization concerns

• Looking at our client base, I'm thinking there might be opportunities for cross-selling. What percentage of our Executive Search clients also use our Leadership Development services?

Why it matters: Identifies potential synergies and growth opportunities Expected answer: 30-40% overlap, with room for growth Impact on approach: Could inform a hybrid strategy leveraging existing client relationships

• Considering our team structure, I'm curious about our capacity to expand. Do we have the necessary expertise and resources in-house to significantly grow our Leadership Development offerings, or would this require substantial hiring or acquisition?

Why it matters: Assesses feasibility and resource requirements for expansion Expected answer: Some expertise, but would require additional hiring and training Impact on approach: Would influence timeline and investment requirements for expansion

• Given the current economic climate, I'm wondering about the urgency of this decision. Is there a specific timeline or financial target we're aiming to meet with this strategic shift?

Why it matters: Helps prioritize short-term versus long-term strategies Expected answer: Aiming for 15% revenue growth within next fiscal year Impact on approach: Would affect the aggressiveness of the chosen strategy and resource allocation