Interim Management
Most organisations are aware of interim management as a concept, but many are unsure exactly what interim management is, how it can benefit their business and how to find a great interim manager. This article outlines the basic principles of interim management and answers some frequently asked questions.
What is interim management?
As the term suggests, interim management is for a limited, specified duration. An interim manager or 'interim' typically works on a daily rate basis for an organisation, to an agreed definition of the role and scope. Interim management is flexible; senior resource can be brought in for a limited purpose and duration. In contrast, permanent recruitment builds up fixed resource and cost.
There are many uses for interims. Some of the more common drivers are:
1. Short-term resource gaps.
The typical example is the sudden departure of a senior executive due to illness, dismissal or resignation. Increasingly, maternity and paternity leave is being taken along with unpaid leave, and nowadays maternity-driven absences of ten to twelve months are common.
An organisation may need focussed, short-term assistance to cope with issues such as a major product recall, urgent restructuring of a subsidiary, or coping with rapid business growth.
Many organisations go through a lengthy recruitment process for a senior position, only to find that the 'process' stalls near the end. This can happen if
salary and benefits negotiations break down, or if the candidate goes to another company. The process has to be re-run, and in the worst cases, the result can be an overall gap of ten months!
Interims are ideal for initiatives that do not require permanent resource. Examples would be the start-up of a new
subsidiary, a supply-chain overhaul, system implementation, or the fast-tracking of a critical project. Interims can also bring great expertise to organisational change and restructuring.
What are the benefits?
Using an interim brings many potential benefits but organisations need to be clear that an interim manager is right for their particular need and situation. The most obvious benefit is accessing expert resource at short notice, e.g. in supply chain
management, and being able to easily 'turn off' that resource when the need is fulfilled.
The right interim can often bring a very specific skill set and range of
experience to an organisation, coupled with a fresh view. Interims are also
impartial; they come with no fixed agenda and are unaffected by organisational
politics.
How much will it cost?
The commonest charging method is a daily rate. Interim daily rates vary widely. In the UK rates of
£450-1000 per day are typical, but they can be higher for specific expertise.
Generally rates are discounted for a longer assignment.
Interim rates may appear expensive compared to permanent salaried employment,
but this is usually misleading. Firstly, the daily rate is the only cost the
organisation pays - other than any agreed expenses that may arise. With a
permanent employee there are usually many other costs; national insurance,
bonuses, pension contributions, public-holiday pay, annual leave pay, motor expenses, health insurance, club
subscriptions and many other benefits. There can also be a significant recruitment cost. Furthermore,
a permanent employee is just that; with an ongoing cost regardless of an
organisation's need, or at least a "release" fee!
Secondly, an interim can often fulfil the role without needing to work completely full time - so a
"head of function" position, for example, can often be covered by a focussed
interim spending, say, fifteen days per month in the position. Being open to
this type of arrangement keeps the costs down, and also allows access to a
larger pool of talent.
What makes a great interim?
Truly great interim managers are a rare breed. Technical
ability to fit the particular role is a given, but there are other attributes
that are very important. Interims must be pragmatic, "hands-on" people. They are
results-oriented and can show evidence of bringing tangible,
cost-effective benefits to organisations. They are flexible and adaptable to
differing situations and organisational cultures. They have no issues over
personal status - they are just there to get the job done. Interims tend to be
senior people who have extensive managerial experience, often at head of
function level. The best interims tend to be those who have chosen interim
management as a profession, rather than people who are just filling the gap
between permanent assignments.
How do I find one?
Someone in your organisation may know of an interim who is
available, and who has the ability to fill the need. However, beware that availability is not a
skill-set!
Most organisations use an interim "provider" - a company with a panel of
various type of interim. They provide the interim on contract to the client, and
then have a back-to-back arrangement with the interim. The best provider is the
company that has interims with a great history and demonstrable track record.
The provider to avoid is the company that claims to have thousands of
potential interims on their panel. What this usually means is that they have a
website which is a "CV sweeper" - they conduct a database search to present the
client with many candidates' CVs, most of whom they do not actually know.
Specialist interim providers are often a better choice than a recruitment firm
that has "tacked on" an interim offer; but in reality has little focus on its
interim business.
The interim industry in the UK is gradually becoming more developed, and
professional affiliation should be expected.
Interims can be a very effective, flexible way to bring specific expertise into an organisation - but the role needs to be clear,
and as with any senior appointment, care in the selection process is vital.
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