Source: theHRDIRECTOR
Date: Summer 2006

Although a relatively new tool, interim managers have been an important resource for HR directors since the late 1980s. But do you know how an interim manager differs from a management consultant? And could you tell the difference between an interim manager and someone who is simply ‘between jobs’?

According to BIE Interim Executive, the number one UK interim management provider (by market share), the difficulty in distinguishing between interim managers and others has been exacerbated by the fact that in recent years the term ‘interim management’ has been given to anyone who isn’t on the company payroll – from temporary staff through to management consultants. In fact, true interim managers are those who have made a conscious career choice to move regularly from one organisation to the next – generally each assignment lasting from six-12 months. Interims cannot be enticed by the prospect of a permanent job because they thrive on the excitement, challenge and risk of new situations and they positively embrace change.

There are similarities between management consultants and interim managers; in fact Steve Bailey, director of client services at PRAXIS executives on assignment, goes so far as to suggest that most good, experienced interim managers could work as good management consultants. But there are also several key differences between the two roles, for example:

• Consultants have an advisory role – they suggest courses of action for their clients. Interims are given full executive or project responsibility; they take ownership and are responsible for seeing through change.
• Consultants are managed by their consulting firms; interims become part of the senior management team or board of their appointing organisations for the duration of their contract.
• Senior consultants will develop the consulting skills of their junior team members during any assignment, whereas interims often have a coaching role for the team members within the appointing organisation.

Typical assignments for interims range from plugging gaps caused by the departure (often sudden) of key, very senior executives (with the interim frequently involved in recruiting a permanent person to the post); driving through business change; the provision of specific expertise or experience and short term specific project or programme management roles.

Mike Everett is chief operating officer of market research specialists, Ipsos MORI. In his previous role as MD at MORI (before MORI and Ipsos merged in October 2005), Mike decided to appoint an interim IT director. “The IT department had grown from the bottom up,” he says, ”and it lacked managerial experience and strategic ability. We were thinking of recruiting an IT director, but the great advantage of having an interim is that they can be with you within seven days. I felt the benefits of using an
interim were: firstly, that someone could come in very quickly; secondly, that you tend to get someone who is over-qualified for the job; and thirdly, I wasn’t confident in my own ability to find a suitable IT director – an explicit point of the interim’s brief was to recruit their own successor.”

In the event, the interim was in post at MORI for around nine months. Despite “a huge degree of initial wariness, in the end the team didn’t want her to go!” The experience flagged up a number of important points for Mike in terms of issues that have to be managed, in his view, when appointing interims. “Interims are often overqualified for the job they are doing”, he says, “so you have to be aware of this, and manage it appropriately. Also, as soon as an interim is appointed, organisations have to plan for their exit! Finally, when you bring in an interim, you must have a clear view of what you want them to do, then give them scope to do it and listen to what they say.”

Peter Cowie, MD of PCI Fitch (a specialist live event and product launch company) has also experienced interim management first-hand. He has been in his current post since February 2006, the previous incumbent having left in September 2005. During the intervening period, the company had appointed an interim MD whose remit was to put in place systems and structures and to lay down solid foundations for the incoming new MD. There was a period of overlap of around three months whereby the interim was able to hand over to the new MD and to coach him through this initial period. “It was,” says Peter, “like being on a two wheel bike with stabilisers! I had two or three months to have a sounding board with someone who understood the business.”

 “I’ve received around 50,000 CVs in the 16 years since we were established. I’ve conducted around 25,000 face-to-face meetings. To say that there would be around 1,200-1,500 people in the UK who’ve made a success of it would be an exaggeration.”

Interims work in all sectors, with particular growth being seen in the public sector, and across all functions. Martin Wood, managing director of BIE Interim Executives, says that finance assignments are particularly common (representing over 20% of the business for his organisation), followed by human resources and general management appointments. Appointments to marketing and sales roles also seem to be on the increase, according to Christine de Largy, MD of Impact Executives, who comments: “The interim management market is very driven by the economic climate. Last year, it was about restructuring; this year has been more about growth.”

Appointments into international companies are also common. Nigel Corby, MD of Global Executives, for example, says that his business comes mainly from British or American companies who have outlets in mainland Europe. Apart from the obvious challenge of being able to speak the appropriate European language, interims have to grapple with the different cultural and legal aspects of business, which can be extremely complex. Nigel says that his biggest challenge, however, is “getting companies to recognise that interim managers should be part of the resource package for managing change. People who want to make a career out of interim work are often seen as anathema to European structures.”

Not surprisingly, successful interim managers need to have a very particular set of skills and personal attributes. Certainly not everybody could do the job and, according to Martin Wood those that can, “are a very rare breed to find.” He says, “I’ve received around 50,000 CVs in the 16 years since we were established. I’ve conducted around 25,000 face-to-face meetings. To say that there would be around 1,200-1,500 people in the UK who’ve made a success of it would be an exaggeration.” Typically, interims are in their 40s or 50s. Because of the need to be very flexible, to work where and when required – often at the drop of a hat – there are more men than women interims, but this is changing.

Most providers agree that key attributes for an effective interim are: flexibility, results focused and credibility. Impact Executives (previously part of PA Consultancy but now a wholly owned subsidiary of the Harvey Nash Group) has taken the identification of key skills a stage further by conducting competency profiling which compares the skills of effective interim managers with those of permanent managers. As a result, they have identified four key areas in which effective interims excel:

1. Leadership. Interims have to lead by personal power, not authority power.
2. Adaptability. Interims have a large ‘kit bag’ of tools and are able to adapt easily to any situation.
3. Organisational Planning. Interims’ ability in these areas is generally greater than that of permanent managers.
4. Results Orientation. Interims are very focused on the job that needs to be done and the results that need to be achieved.

Christine de Largy, MD of Impact, says: “All Impact’s candidates have been interviewed, assessed and referenced against these competencies. Our consultants have all been trained in Saville & Holdsworth’s structured interviewing techniques. The questions asked of candidates are the same for all, so we share a common language.”

"Interim managers are not cheap – although providers would argue that they are cost-effective"

Other providers have a variety of methods by which they assess potential interim managers’ suitability. Most have rigorous pre-selection and qualification criteria. Interims generally are expected to show that they have had exceptional organisational experience at a high level. References are always checked. Given that there is only a relatively small number who can be effective interim managers, most providers actively seek out new people for their books. Understandably, most seem to attach great importance to meeting potentials face-to-face; bearing in mind that appointing organisations often expect interims to be working within 7-fourteen days of notification (if not sooner), in-depth knowledge of the people on their books enables providers to act quickly and effectively.

Interims can also, of course, be sourced without going through a third party. Steve Bailey estimates that around 50% of interim management assignments are filled by the interims themselves. Some interims are registered with various providers but at the same time take responsibility for finding their own assignments. Arthur Jones, for example, who is the current holder of the title “Human Resources Interim Manager of the Year 20052” for his HR work at the Devon Partnership NHS Trust, reckons that he works 50% of his time on appointments sourced through a third party (he has used several) and the other 50% on appointments he has arranged himself. There are risks associated with this option for the company – for example, you won’t have the assurance that you would get from a reputable provider that the person has been carefully vetted and selected as the best interim for the job – but you may know an experienced interim personally or through your business connections who closely fits your needs.

According to Nigel Corby, MD of Global Executives, around 300 companies in the UK currently offer the supply of interim managers as a service. So, if you feel that you need to appoint an interim manager for your organisation, how do you ensure you pick the right one?
Factors to consider are:

1. The provider’s credentials. How long have they been established, who have they worked for, can they provide good references?
2. The provider’s pre-selection and qualification criteria. It’s important that the right person is placed in your interim role – you don’t want to make an expensive mistake. The best providers have rigorous selection
   criteria and an in-depth knowledge of the people on their books. Therefore, make sure you ask them about their processes.
3. The interim providers’ business backgrounds. You will want to deal with people who have a good business background, who understand your sector and the issues with which you are confronted. Find out whether the consultants at the provider you are planning to deal with, fit the bill.
4. The briefing process. How does the provider deal with initial briefings from clients? How quickly can they respond? Interims are there to meet immediate needs. Undoubtedly, you will not want to wade through piles of CVs. You may find that the provider will be fairly prescriptive regarding the right candidate for your situation.
5. On-going support. What happens once an interim is in place? What processes does the provider have in place to review the appointment, if any? What happens if things don’t go according to plan?
6. Is the provider a dedicated interim provider, or is this merely a bolt-on service for them? Interim management is a highly specialised service and should be dealt with separately from, for example, recruitment or headhunting activities. Be very wary if the same person is dealing with both sides of the business as there is a built-in conflict of interest.
7. Is the provider a member of the Interim Managers Association? Although opinion is divided in the industry as to whether membership is necessary (out of the top 15 UK Interim Management Providers – ranked
   by market share – five aren’t members of the IMA), the Association sets benchmarks for standards of professional service for interim providers, as well as operating a code of professional practice and good conduct. If you are new to the interim management market, this may be a good place for you to start.
8. Ask your business associates for their recommendations. Interim managers are being used more frequently, so the chances are that someone you know will have used one. Find out how they sourced their interim, what their experience was like and whether they would recommend their provider.

Interim managers are not cheap – although providers would argue that they are cost-effective. Average rates range from around £500 – £3,000 per day, depending on seniority and the type of work involved, so you need to make sure you are getting value for money. As Martin Wood says: “… If the head renter cannot add real value by innovative selection and have an intimate knowledge of the best UK talent, the client may select from their own network or take another option...” The choice, of course, is yours. Whatever you decide, it seems certain that interim managers are here to stay.