Korn/Ferry’s CEO on Transforming the Company in Mid-Crisis

Reprint: R1312A

Gary Burnison had a lot of faith in Korn/Ferry’s brand when he became a significant investor, back in 2001. The company was suffering in the aftermath of the dot-com bust, but he believed he could help—so he came on board as chief financial officer and worked with the rest of the executive team to lead a turnaround. A major portion of the problem was Korn/Ferry’s near-total reliance on executive recruiting fees for its revenue. Burnison’s ambition was to move the company into other aspects of talent management. He saw the growth of LinkedIn as an opportunity as well as a threat: It gave the firm an additional channel for gathering rich and individualized data on professionals. Korn/Ferry’s close C-suite relationships, strong financial position, and powerful brand aligned the company for success. And clients have embraced the firm’s metamorphosis: One has increased its spending from $300,000 a year to $6 million; another’s annual billing has gone from $700,000 to $10 million.