Firm's methods in search questioned

The search firm which recommended newly-named Executive Vice President Janet Hale to the University should have researched the details of Hale's record at HUD, officials at a national organization of search firms said yesterday. The Association of Executive Search Consultants is a trade organization of over 80 executive search firms including Diversified Search -- the local firm used by the University. Members of the association must meet strict membership requirements and follow a stringent code of professional conduct and ethics, according to association officials. Association spokesperson Mimi Eckert said that a "reputable" search firm should have looked into the details of Hale's conduct and that she would be "surprised" if any of their member firms had failed to do so. "Any one of our member firms would have looked into this matter [at HUD] and presented all the information to their clients," Eckert said yesterday. Hale was questioned by Congress in 1989 about her role in two U.S. Department of Housing and Urban Development controversies including the mismanagement of a HUD-backed insurance program that eventually cost the government several hundred million dollars. University officials said last month that they were unaware of the specifics of Hale's role at HUD and did not know the content of her testimony before Congress. Many also said they assumed that the search firm would have found anything questionable in Hale's background if it existed. But employees at Diversified Search said last week that they did not check the specifics of Hale's actions at HUD after Hale received exemplary recommendations from top government officials. These officials included former Office of Management and Budget Director Richard Darman and American Red Cross President Elizabeth Dole. Hale worked with Dole from 1986 to 1989 when Dole was Secretary of Transportation and she worked under Darman at OMB from 1989 until January. Judy von Seldeneck, a Diversified Search official, said yesterday that key University officials were told that Hale worked at HUD and worked under Secretary Samuel Pierce, a leading figure in the HUD scandals. But von Seldeneck said last week that Diversified Search had not researched news clippings and congressional records of Hale's testimony on the HUD scandals. "It didn't seem important to her or anyone else we spoke to so we thought it wasn't an issue and I'm still not sure why it is an issue," she said last week. She added that Diversified does not usually check newspaper reports and relies primarily on extensive referencing. Eckert said that "very thorough" reference checks should be the first step of any search and that this referencing should "carry the most weight in evaluating any candidate." She also said that news clippings should rarely be used as primary source in a search because their accuracy depends too heavily on the quality of the reporting involved. But Eckert added that if there was an issue of questionable dealings or even reason to suspect that there might be controversial actions, then news reports might be used for background and the firm should investigate the specifics of the case in detail. "The firm could very well [look at news reports] if there was an issue," Eckert said. "I would imagine that they would definitely do that." Eckert also said that a good search firm should present a balanced portrait of any candidate they present to a potential employer. "A reputable search firm will present information that is not complimentary to the candidate," she said. "They may or may not give an opinion of what that information means but they will present it."