Headhunting firm Russell Reynolds Associates has embarked on a major restructuring of its operations in the wake of recent senior-level departures. Reynolds has in recent months lost two of its three managing directors - Louisa Rousseau and Andrew Tsui - who had the reputation of being the firm's two largest revenue earners. Ms Rousseau had moved to another recruitment consulting practice, Bole, while Mr Tsui was still evaluating his options. The departure of the two partners has prompted Reynolds to re-think its Hong Kong strategy, with plans to move to a larger team to compensate for the departure, according to its head, Raymond Tang. 'There will be a gap [left by the two departures], and we have to plug it,' he said. He said the firm intended to produce 'a team of people addressing our relationships, rather than an individual'. He said the restructure had begun. Whereas Ms Rousseau had previously run the firm's consumer goods area mostly as a one-person division, the firm had moved four of its personnel into the area to help fill her shoes. The firm is looking for two new associates to move into the financial services division, where Mr Tsui had previously been in charge. Ultimately, the group is aiming to have 12 associates, up one-third from the nine it had before the departures. Mr Tang said the firm had not emerged unscathed from the departures. Revenues were down in the year on those of last year, largely because of the resignations. He said that the downward trend reversed this month, with the company booked for 15 searches during the month. Mr Tang did not deny the firm would lose some important clients with the departure of two such high-profile figures. 'The nature of the business is that there are always those who won't work with an unknown name,' he said. 'People like Louisa and Andrew build special relations with clients.' Mr Tang said Ms Rousseau's firm would have some difficulties of its own in drawing clients. 'There will always be clients who cannot work with a smaller firm, who have global relationships,' he said.
