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INTERVIEW - MIND THE GAP
22 August 2007
As the interim management market enters another phase of its development, we talk to industry expert Martin Wood to find out his views on the current – and future – challenges to the industry.
What do you feel is the main challenge to the industry at the moment?
Martin Wood: I would agree that the first challenge is finding talented interims. I don’t see much interviewing and pre-selecting of candidates occurring throughout the industry; agencies tend only to interview when there is an assignment available, but that is too late to be starting the process. Clients expect you to respond to a vacancy within six to 10 days, which is impossible if you don’t have prior knowledge of possible candidates. Agencies should be marketing and educating people about the industry constantly and introducing potential interims to it. At BIE we estimate we spend circa 80% of the whole industry’s marketing budget, which just shows how important we think it is to highlight what interim management can offer. We promote the industry and also work with the CBI on various reports, such as the “Enhancing Private Equity” guide we published earlier this year. Unless other companies do this, too, there will be a lack of understanding regarding the industry generally, and, more specifically, companies won’t know what interims can provide and interim candidates won’t know which agencies to contact to find good assignments. We have 60 new potential candidates writing to us every week, of which we see about 30 each week. I, personally, interview two candidates a day, but out of every 10 I meet, I will only place one. Top class interims are a rare breed. The second challenge is to define the interim market properly, so clients know where to go to find the level of interim they require and the process they will need to go through to appoint them; this is unlike permanent recruitment which is already well defined. If clients don’t understand the industry and which agency to approach for the appropriate level of interim, how can they then measure the interim providers’ effectiveness properly?
How do you see the industry changing – if at all – in the coming year?
Martin Wood: I can see it changing slowly. There has been a consolidation of providers recently – for example, both BIE and Armadillo have been acquired – so ultimately there will be fewer agencies, but they will have more clout and will be able to market their proposition properly. In the £500/day and below level for interim assignments, specialist agencies are up against major recruitment companies who have developed interim services as an add-on to their main services, so there might be a reduction in the number of these mid-range specialist interim providers as a result . At this level of assignment, processes are as volume based selection. Large mid-range recruitment agencies do well at this level as their methodology fits. However, at the top range of assignment I think major search companies have so far just dabbled. Whitehead Mann set up its own specialist unit but then withdrew, for example. This is where specialist interim agencies provide the niche service.
What is the one thing people don’t really ‘get’ about the industry?
Martin Wood: Firstly, that there aren’t that many talented interim executives who can do this work. They are difficult to find. At most there are 1200 – 1500 in the country who have done four or more assignments, and it is only at that point can you really define yourself as a career interim. There are probably only another 1000 who have carried out one or two assignments. For senior interim assignments there may only be three or four people who could be available to do the job, and thus their fees are up to £2k a day. Fifty per cent of assignments we fill are with interims who have worked with us before. If you keep them on the clock they don’t wander from you. Our average length of assignment is nine to 10 months, but there are some short ones that only last for three months and other, higher level roles, that need 18 months for the project to be completed effectively. However, there is a check and balance every month when the interim is paid and, if the client isn’t happy with their performance then the interim will be out of a job. Interims need to deliver continuously. Secondly, I don’t think people really understand that interim executive management is rather like executive consultancy where you have implementation responsibilities. Perhaps it should be renamed as that! Interim exec management is all about managing change and transition in high profile projects. It is not gap management – ‘holding the fort’ if you like; that’s temping. The term ‘interim’ has been hijacked to mean anything on the payroll that isn’t permanent, and is often used to mean contracting or temping. Pro-rata wages that are given in advertisements indicate that the job is effectively temping rather than interim. I also don’t understand why people are using job boards for posting interim vacancies – surely this must be too slow a way to fill a vacancy, as you just won’t get the turn around in a matter of days that is needed for serious interim jobs.
What would improve the relationship between companies, interims and interim suppliers?
Martin Wood: What works is if you have quality delivery; you have to understand what you are doing and ensure that your first assignment for any client is spot on at every stage of the process. If you get that quality, then you win over ‘disciples’ to the industry, and they will spread the word about the value of interim management both within their industry and in other industry sectors when they move jobs. It is up to agencies to get it right first time – both in the processes, and in the provision of the right candidate. Meeting expectations in terms of timing and delivery is vital. Clients don’t want to meet 12 candidates – they expect agencies to know their candidates and only provide three or four to meet at most.
Is there any other aspect of the interim industry about which you feel very strongly at the moment?
Martin Wood: I don’t think that there is enough hard selection work done backing people on their first assignment – 25% of our work at BIE is done with people on their first assignment. It’s all about developing people and finding new talent, both to grow the industry and to replace the people who are retiring. Ten years is a typical length of an interim career. Good interims must have the skills and qualities already in place – you can’t train people to be an interim manager – what you may do is groom them for their first interview. They have to understand that it’s more like an audition rather than a traditional interview and that 50% of assignments are filled after a single interview. Therefore, they have to hit the button straight off and be focused in how they match the abilities and experience required for the assignment. It’s great to launch someone on their new career and see them become a true career interim.
To discuss your interim management requirements with BIE call +44(0)20 7222 1010