Heidrick & Struggles

Through 2020, Heidrick & Struggles was primarily an executive search firm generating $621.6 million in net revenue, with search engagements accounting for the vast majority of the business. The firm's client relationships were largely episodic — a CHRO or board would engage Heidrick for a single C-suite hire, then the relationship would go dormant until the next opening. The company had a small leadership consulting practice (Heidrick Consulting) that generated $56.4 million in 2020 and employed 65 consultants, but it was not a strategic growth engine. The firm faced commoditization pressure from boutique search firms and in-house executive recruiting teams, particularly for positions below the C-suite. With no recurring revenue streams and full dependence on cyclical search activity, revenue had declined sharply during the COVID downturn.

Starting in 2021, Heidrick executed a deliberate pivot to build recurring, non-search revenue streams alongside its core executive search business:

• On-Demand Talent acquisition: In April 2021, Heidrick acquired the On-Demand Talent business (formerly Business Talent Group), adding an interim executive and independent consultant placement service. This segment generated $66.6 million in its first partial year, providing a recurring engagement model with existing search clients.
• Heidrick Consulting expansion: Invested in growing the leadership advisory practice focused on CEO succession planning, board effectiveness, and organizational culture transformation. Grew the consulting headcount from 65 (2020) to 69 (2021) to 70 (2022) to 89 (2023). Acquired businessfourzero, a London-based purpose and culture change consultancy, in 2023 to add specialized capabilities.
• Diversified Solutions strategy: Under CEO Krishnan Rajagopalan, the firm explicitly targeted growth in its non-search segments — branded internally as "Diversified Solutions" — comprising On-Demand Talent, Heidrick Consulting, and nascent Heidrick Digital.
• Revenue mix shift: Moved from search representing over 90% of revenue to building a material non-search revenue base, with the goal of reducing cyclical exposure and deepening client relationships beyond one-time engagements.