Overview

Introduction to Interim Management

This guide focuses on the upper level of the interim management market interim executive management. It can be defined as the management of transition, change, uncertainty or crisis by a suitably over-qualified executive at or near board level, commissioned on an assignment basis.

Over the past ten to 15 years, interim executive management has been used successfully at and near group and divisional board level in listed, private and public sector organisations across all functions and sectors throughout the UK and globally. Inclusive daily fee rates range from £600 to £2,000 per day depending on sector, application and level, as well as length and location of the assignment.

Interim executive management refers to the service originally imported into the UK from the Netherlands in the late eighties. It should not be confused with the plethora of other services using the title interim management, for example contract/temporary management, try and buy recruitment or even traditional management consultancy. This guide describes its development and application and outlines how best to maximise the opportunity to use it. The key role of the specialist provider the head-renter is also explained. As Sir John Harvey-Jones once said, "It is absolutely vital that people recognise there is such a service as interim executive management and are aware early enough to get this sort of help."

 

What is Interim Management?

Executive interim management is the short-term assignment of a proven heavyweight executive to manage transition, crisis or change within a company. A permanent role may be unnecessary or there may be insufficient time to make a permanent appointment. Internally, there may not be anybody suitable for, or available to take up, the position. Whatever the reason, this is the type of situation where executive interim management could prove invaluable.

There are several factors that make interim management the powerful resourcing option that it has become today:

  • Speed. Interim managers can be in place within days as opposed to weeks (essential when time constraints are paramount).
  • Experience. Interim managers will be more than qualified for the position they are taking on and will therefore be stepping down in responsibility. They will also have past experience of similar challenges to the ones they are about to face. In addition to enabling them to have an immediate effect and be productive from the outset, this minimises the risk of things going wrong and, more importantly, ensures success.
  • Objectivity. Unencumbered by any previous involvement in company processes or staff relationships, interim managers provide a fresh perspective and are free to concentrate on what's best for the business.
  • Accountability. Rather than taking on a purely advisory role (as a management consultant would), interim managers are responsible and accountable line managers who will implement and manage a business or project in their own right.
  • Effectiveness. Operating at or near board-level gives interim managers the authority to effect significant change or transition within a company unlike a temp, they're not just there to hold the fort.
  • Commitment. Interim managers are committed to an interim career. For them, this is never just something they are doing until a suitable permanent position is found. They enjoy the challenge of the different assignments, take great pride in maintaining the highest standards and realise that they are only ever as good as their last job.

There are a number of different business situations that could result in the need for an interim manager. Typically, these could be one or more of the following:


Back to top

 

Crisis Management

The Managing Director of a poorly performing family business suddenly resigns and leaves to set up a competitive operation. The Chairman realises that the incumbent management team are too inexperienced to take on the vacant role and is unsure of the best course of action to take.

An interim executive would be able to step in quickly, using his experience of similar situations to protect the company from any competitive threat and to effect a turnaround in the company's fortunes. He could also mentor one of the existing managers and help to groom them to take over his role once the interim assignment has come to an end.

Back to top

 

Sudden Departure

Occasionally a company may find itself having to deal with a senior level resignation. Allaying nervousness amongst shareholders and the City and the urgent need to fill the hole left in the management structure of the company means swift action is crucial.

An interim executive can move into the vacant role quickly and smoothly. By maintaining its momentum, the company then has the time it needs to find a suitable permanent replacement for the position and indeed, the interim executive will often help to review and recruit his successor.

Back to top

 

Change Management and Transition Management

The causes of a period of change or transition within a company are many and wide-ranging. New government legislation; the development of innovative production processes; competitive challenges; taking on a major new contract: these are just a few of the situations that could result in a company having to review they way in which it works. Many involve a considerable amount of staff upheaval and the revision of working practices - often with the unfortunate effect of creating a great deal of uncertainty amongst personnel.

In addition to a wealth of experience of similar scenarios, an interim manager can also provide a fresh perspective on the situation. Unencumbered by the baggage of previous processes and uninvolved in existing staff relationships, they have an unbiased and impartial outlook and can therefore concentrate on what's best for the company.

As the UK's leading interim management provider, BIE has extensive experience in change management. To find out more, visit our dedicated change management site.

You can read more about change management here.

Back to top

BIE - Immediate

MBOs and IPOs

When dealing with an MBO or an IPO, it is not unusual for the directors to have had little or no previous experience of how to effectively manage what will undoubtedly be a complicated corporate restructuring process.

A flotation in particular is generally regarded as being one of the pivotal events in a company's history and brings with it responsibility to a whole new set of investors and shareholders. Therefore, the timing, size and structure of an IPO is absolutely crucial to its success.

Appointing an interim manager who has a track record of dealing with such situations will instantly provide the level of experience and knowledge needed to safeguard a company from some of the major pitfalls that have historically proved to be all too common in these situations. Additionally, by augmenting the existing team, an interim manager can provide that extra pair of hands that will doubtless prove invaluable when dealing with the inevitable increase in workload.

Back to top

 

Mergers and Acquisitions

Mergers and acquisitions have emerged as being a key area for the assignment of interim managers. Both invariably involve a certain degree of corporate restructuring and possible resource and location issues - and an interim manager could prove to be indispensable during such a crucial period.

For either process to be a successful and smooth one, critical strategic and financial decisions have to be made and it is therefore paramount to have somebody in place with sufficient experience, insight and focus to implement these. During deal negotiations in particular, the input of an independent viewpoint is often found to be invaluable.

Additionally, during an acquisition there may not be a suitable internal candidate who could immediately take control of the new company. In these circumstances, an interim manager would be able to undertake the day to day running of the business until a permanent replacement could be appointed.

Similarly, during a merger, bringing in a temporary manager who is external to the companies involved can greatly assist in a smooth restructuring process - particularly when there is the potential for conflict amongst resident CEOs.

Back to top

 

Project Management

Interim managers are an excellent alternative (in particular to consultants) for any company that is about to undertake a major project but either has insufficient internal resources to effectively manage the project or is reluctant to take existing staff away from their current responsibilities.

Being more than qualified for the position, and therefore stepping down into their role, an Interim manager is guaranteed to have the skills and experience necessary to lead the project and ensure that the required results are delivered.

And, because the assignment has a finite timescale, there is no-one to let go or re-deploy at the end of the project.

Back to top

"));