Interview with Ron Herzog CEO and President of FPC

Ron Herzog - CEO and President

Ron Herzog, CEO and President, has spent a number of years developing extensive knowledge of the recruitment industry and successful franchising since joining FPC in January 1995. Over the next few years, he rose through the FPC ranks from an operations and training consultant to the director of operations, executive vice president, ascending to the role of president in 2005. Ron became the CEO and president when he acquired ownership of the business from founder Rudy Schott in 2007.

In addition to providing his vision for the company, he oversees the day-to-day operations for the FPC system nationwide and has developed a comprehensive training program that is a template for success. He works personally with each office, in collaboration with FPC's New York-based training team, to maximize system productivity. Ron has developed a team of training consultants to help each recruiter reach his or her potential.

Ron is considered an industry expert and has provided insight into workforce trends for print publications, radio broadcasts and industry podcasts.

Ron earned his MBA in management and undergraduate degree in marketing and management. He is an avid tennis player and golfer and currently resides in Westchester, NY, with his wife, with whom he has raised two accomplished sons.

1. Tell us about the FPC concept:

   F-O-R-T-U-N-E Personnel Consultants (FPC) started in 1959 and has been franchising since 1973 in the Executive Search industry. FPC franchisees offer services to help client companies fill their critical staffing needs as well as assist mid to senior level candidates find new opportunities. FPC franchisees and their staff work closely within the industries they serve and become "industry experts", which allows them to provide proper advice, guidance and counsel to their clients and candidates. Executive Search professionals play a strategic role by helping the thousands of small, medium and large companies identify and secure top talent.

2. How and when did you become involved with FPC? and, What was your background prior to joining FPC?

   I started my career in Executive Search in 1982 as a full life cycle recruiter with Leslie Kavanagh Associates which was originally a subsidiary of Fortune. From there I took a position with Medical Associates of America as the Director of Human Resources from 1990 to 1995. I always kept in touch with Rudy Schott, Fortune's founder, and in 1995 he offered me the opportunity to return to Fortune as Operations and Training Consultant and eventually as the Director of Operations, Executive Vice President, then President in 2005. I became the CEO and president when I acquired ownership of the business from Rudy Schott in 2007.

3. What are some of the advantages in being an FPC franchisee?

   Investing in yourself and controlling your destiny by starting your own business can reap enormous rewards. Now, if you decide to join FPC and build an executive search business you will enjoy the following:

   ~ A business with low overhead, high margins and strong income potential

   ~ Multiple revenue streams

   ~ In depth initial training and on-going training for the life of your franchise (and the recruiters you hire) via FPC University

   ~ A very scalable business

   ~ No travel

   ~ A network of like-minded franchisees that act as your own "Board of Advisors"

   ~ Ability to split business with other offices so you never have to say NO to candidates or clients

   ~ Recognition programs

   As with all businesses, there are challenges you may encounter, but assuming you follow the process you have invested in and are willing to work for your dreams, those challenges will be minimal.

4. Who is your ideal franchisee?

   Well, nobody goes to school to be a recruiter, and most FPC franchisees will tell you they "stumbled" across FPC or we "stumbled" across them. In fact, Approximately 95% of our franchisees had no recruiting experience. What they did have was the knowledge and experience they gained in their business or professional careers. Through FPC , they became search and recruitment experts as well as business owners capable of creating career opportunities for their employees. Another key element all FPC franchisees have is the sincere desire to own their own business and work hard to make it successful.

5. Tell us a little about the Executive Search Market?

   Executive Search was born out of the management consulting industry, and is a $137B industry. Approximately 2.91 million people are employed by staffing companies every business day and employment of staffing specialists (recruiters) is expected to grow 21 percent from 2010 to 2020 - faster than the average for all occupations.

   For the seventh straight year, less than half of U.S. workers are satisfied with their jobs and approximately 76 million baby boomers will retire over the next 20 years - both indicators for a very sustainable business. Don't forget, executive search has been around for almost 65 years!

6. What are some of the greatest lessons you've learned in growing this franchise, and Do you have a mentor and is there someone you use for inspiration?

   Having come up through the ranks of FPC under the direction of its founder, Rudy Schott, I understood early on in my tenure the value of Rudy's vision. The recruiting process that Rudy developed and believed in is relevant today, over fifty years later. He has always been and continues to be, a mentor and source of inspiration for me. Our system is comprised of passionate, determined owners who personify this culture and who appreciate our hands-on approach in supporting them to grow their offices and be successful. In addition to our commitment to our replicable recruiting process, I have learned that the personal touch is vital to maintain the FPC brand. Toward that end, we are committed to staying the right size - large enough to have national brand impact and small enough to maintain a high level of support to our family of executive recruiting offices.

7. What advice do you have for someone looking to acquire a Franchise?

   In general, franchising is right for you if you want to take control of your own future and invest in yourself. No matter what franchise concept you choose, you need to be aware that although there are established methodologies in place, you still need to work hard. As with starting any new business, be prepared to have a few "speed bumps" in your ramp-up period. The major advantage of being in a franchise organization is that more than likely, the existing franchisees have probably experienced the same "road blocks" and provide a trusted resource for dealing with these hurdles. Having like-minded business professionals who have been in your shoes and can provide valuable advice is one of the strong elements to the franchise business model.

8. In your opinion, why do you think that FPC would be a great opportunity for someone?

   Assuming that you have done adequate self-reflection/due diligence and have determined that executive search fits your personal and professional goals, there are several reasons why FPC is far above the rest. The executive search business is a complex, sophisticated, intellectually challenging business that offers strong personal, professional and financial satisfaction. Through interaction with your candidates and clients, you have an opportunity to have a positive impact on their lives and businesses. In addition, our business model is low overhead and high margin and can easily be scaled up or down. Income potential is extremely high assuming you are willing to follow our process and become a student of the business. We are a phone business thus travel is almost non- existent, affording an attractive work/life balance. As with starting any business, you will experience some ups and downs in your first year, but given that FPC has been opening and supporting successful franchises for 40+ years, the blueprint for success has been printed.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.