What started as a drip is now a torrent.....

Several weeks ago we noticed a slight increase of CVs from executives wanting to become interim managers. Today, that number has multiplied several times over as senior executives exit the permanent workplace as a result of redundancy or re-organisation programmes and then decide to enter the interim market place.

On one hand this is good for company’s such as ourselves as it refreshes the ‘interim gene pool’ however we know from past experience that it also brings about a few issues particularly as some of this new talent tend to use interim management as a stop gap back to the permanent work place. At Aster, our rigorous selection process will weed out most of these ‘part-time’ interim managers but I think more worryingly the trend reflects the general turn down in the economy.

Because everyone fully expects the interim management market to remain buoyant it is at times like these that interim management providers get swamped with applications from candidates for professional interim vacancies.

How to select an interim management provider?

There are many interim management providers throughout the UK, Europe and the USA. Indeed the choice now appears to be so large it must be difficult for client organisations to decide where to start with the search for an interim manager.

I have listed below a number of considerations that might be useful in your decision making process.

• Expertise – does the interim provider already service your industry/operating sector? Ask how many assignments they have fulfilled in equivalent roles over the past 12 months
• Geography – Is it important that you can meet with your provider on a regular basis during the assignment? If yes, then choose a company which operates relatively locally to your organisation
• Flexibility – Do they always get back to you when they say they will? How quickly did they respond to your enquiry or request?
• Heritage & Size of Organisation - Is the interim provider a long established company. Have the senior executives worked for the company for some time. Do they have an established database of pre-qualified interim managers?
• Interim Manager Vetting – how does the providers vet their interim managers? Do they conduct face to face interviews with all managers prior to short listing?
• Code of Conduct – Is the interim provider bound by a code of conduct enabling you to be safe in the knowledge that you are dealing with a reputable company?
• Size – Do you want the reassurance that you are dealing with one of the larger providers or are you comfortable dealing more with a smaller concern which may be able to provide you with a more bespoke, flexible service.
• Financial Stability – Are they a financially viable business? are their rates competitive against their competitors? Interim providers will always ask you for exclusivity for up to 48 hours from receipt of an assignment. It may make more sense for you to select 2-3 providers at the enquiry stage rather than offering one company total exclusivity as assignment fees vary considerably from provider to provider.

Of course ultimately chemistry also plays a vital part because you have to have confidence that you can work with your chosen partner. Good Hunting!

Are some disciplines saturated with Interim Managers?

Paul Wilson believes that the supply of certain types of interim managers outstrips demand in some disciplines.

Each week the credit crunch and poor economic trading conditions continue I am forecasting we will get applications from more individuals wanting to become career interim managers. Redundancy, re-deployment and general dissatisfaction with permanent careers are often the catalysts for executives deciding to become interim managers. What might be considered to be the start of a bright new adventure I fear will result in disillusionment and heartache for some? I am concerned that there are several disciplines which are saturated with interim managers at present and some budding interims are going to be disappointed as they are likely to be at the back of a very long queue.

I am thinking in particular of the disciplines of HR, General Management, Management Consultancy and IT Consultancy. In my opinion there are just too many people trying to get in on the act in these disciplines and too few genuine interim management opportunities to keep all interested applicants satisfied. I think it will become vital that particularly new interim managers are able to differentiate themselves from others by having a second string to their bow or by being able to offer potential clients something different.

When assignments come to an end….

It is quite normal to feel a slight pang of dissapointment when an interim management assigment comes to an end. Learning to deal with this emotion and using it to spur you on to greater heights is critical to being succesul in the interim management arena.

I guess it is a bit like being a marathon runner preparing for a race several months ahead. The build up is hard work and fun but the actual run is over relatively quickly leaving a slight feeling of emptiness or anti-climax once the objective has been achieved.

However it is vitally important that the career interim manager learns to deal with these feelings and starts to prepare for the departure day weeks in advance when the end of the assignment is in sight. Here is some simple advice in preparing how to exit an assignment in a professional manner even if you do not have an assignment to follow on.

• During the assigment clarify the likely end date
• Work to this target with focus and attention to detail
• Market your interim management skills to other potential clients
• Ensure the organisation/process you leave behind is a testament to your skills
• Do not try and elongate the assigment beyond its natural course – your client will thank you for this in the long term. They may even ask you back at a later date to carry out a further assigment. Remember it is over 30 times easier to get more work from an existing client than it is to find new clients.
• You will know when the assigment is over often before your client – when all set objectives have been acheived
• Ask for a reference or case study which can be used to promote your skills to other clients
• Always leave on a high note.
• Be professional and courteous throughout the exit period
• Keep in regular contact once you have left the client organisation eg. courtesy telephone calls, christmas cards, dinners etc.

How to Market Yourself

Ever thought about why some interim managers are more succesful than others in gaining assignments. Perhaps they know something you don't. If you want to know some of the secrets then follow our step by step mini-guide detailing how to succesfully market your interim management credentials.

5 easy steps to succesfully marketing:

• Develop a network of potential clients – made up of previous clients, suppliers, customers, business contacts etc
• Write to the ‘list of potentials’ preferably by e-mail spelling out exactly what you could offer their business – no fluffy words like excellent, best, ambitious etc – just hard, tangible facts
• Contact the individuals by telephone no more than 3 days after you have written to them – ask for an appointment
• At the appointment, prepare, listen and offer constructive comments of how you could add value to theor organisation – be specfic
• If unsuccesful, start the process again – in this business the harder you work, the luckier you get!

UK Manufacturing sector turning to specialist Change Managers

We are seeing growing evidence that the UK manufacturing sector are using interim change managers to improve their performance.

I have personally visited a number of companies in recent weeks which have made the concious decision to use specialist change managers to bring about change in their existing working practises.

We are currently engaged on a number of projects with clients, mainly in operations, to introduce philosophies such as lean manufacturing and busniess process re-engineering. I think this trend will continue as companies put on temporary hold their permanent recuitment decisions due to the uncertain business climate. As a result, specialist Interim Management providers like ourselves which focus on the manufacturing sector, should be able to fill the void will well qualified, interim change managers.

Are employers changing recruitment policies?

I have read a number of articles in the past few weeks identifying the possible changing recruitment habits of some employers. The uncertainty in the stock markets, fuel price movement and the relatively weak pound against other currencies would appear to be causing employers to think twice about recruiting permanent executives in some cases. Perhaps they are playing a waiting game and are turning to contractors and interim managers to plug the skills gap until such time as the way ahead becomes more predictable.

This could a blessing in disguise for the interim management sector although I am a little too old in the tooth to get excited too quickly. We have seen no evidence of this trend as yet but we have seen an influx of first time interim managers registering with us as a result of changing career aspirations and increased corporate redundancy programmes.

We mainly supply the manufacturing sector with interim managers and the demand is still consistently buoyant but with no spike in extra demand as a result of changing recruitment policies as yet. Rest assured we will keep you informed if it materialises.

Interim Management Training

There are a number of training providers who provide specialist interim management training courses for those individuals about to embark on an interim career.

To be honest Aster run very few courses on this topic because I guess on the whole we are dealing with experienced executives who determine that they already know what is required to be successful in their interim career. Does this sound familiar?

I am not trying to sell our training courses but I do think it would be sensible particularly for those budding interim executives not from a general management background (disciplines such as HR, Sales and Marketing, IT, Facilities etc) who may not have been exposed to the financial side of running a business in their permanent career to take some advise and guidance from people who have already trodden that path. Also marketing one self is a whole new ball game for some people who have not had exposure to this type of activity before or are not naturally disposed to ‘the gift of the gab’.

There are a number of providers who provide this type of interim manager training. I think it would be sensible to use it, don’t you?

Days rates holding up

I was slightly concerned that the credit crunch and dramatic changes in fuel costs would have an immediate adverse effect on the number of interim assignments and consequently the day rates interim managers could expect to achieve. However all indications thus far would indicate that the market for interim managers is still buoyant and client organisations confidence in using professional interim managers has not wavered as the added value benefit of using an interim manager outstrips the cost. We have even had clients coming back to us I recent weeks wanting to extend the duration of contracts with their interim managers. Long may it continue for all parties concerned? On a more cautious note, I believe it would be sensible at the moment for interim managers to speak with their clients and interim management providers slightly earlier than they normally would as they are coming to the end of their assignments regarding looking for other opportunities, additional objectives etc as at some point the difficult trading conditions may bite leaving the supply of interims outstripping demand. Of course when one door closes another opens, some interim managers, particularly those engaged in business recovery and turnaround may find work in plentiful supply whilst other generalists may find project work drying up. Be sensible and plan ahead now.

Interim Providers must work harder…..

Paul Wilson, Managing Director of Aster Interim Solutions believes that interim management providers need to work harder on their marketing skills for the sake of their sector as a whole in order to take full advantage of this expanding market.

He states “I often attend networking events/meetings and I am regularly asked what my company does. There tends to be a respectful silence when I state “We provide interim managers”. Indeed even senior executives of companies ask, “What is interim management”. I get asked the question so often that it has caused me both embarrassment and caused me to re-consider our marketing policy and how best to approach our potential customers.

All statistical evidence points at a growing interim market sector where skilled senior interim executives are making a significant difference to client businesses the length and breath of our land, yet this growth seems to be coming in spite of the relevant immaturity of the interim management sector. Imagine what could be achieved if we were able to get our message across to the senior executives of the majority of the UK’s companies”.

Wilson continues, “We have cause to re-examine our marketing strategy. However I believe the onus is on our industry as a whole to make this sector more ‘visible’ to its potential clients. Some interim providers/organisations have already shown the way forward with their award schemes, training courses, strategic alliances with and sponsorship of trade organisations, but I still believe we need to ‘shout our message’ out louder.

We need to connect more with business at their embryonic stages, make relationships with business schools and offer the venture capital market place something other than just a financial skills service.

Our own company has partnered with the Cranfield Management Association from the Cranfield School of Management in an effort to increase awareness of interim management as both a career option and a service. However, this is just the beginning and we intend to increase brand awareness over the coming months with a number of marketing initiatives designed to appeal to the mass market.

Watch this space!

Paul Wilson Managing Director Aster Interim Solutions Ltd - Interim Management

Setting up as an Interim Manager

When setting yourself up as a career interim manager it is imperative that you are able to demonstrate the following:-

• A successful permanent career in which you have proven your ability to achieve positive results at the highest level.
• A limited company.
• A minimum of at least £250K Professional Indemnity Insurance.
• A day rate aspiration which closely reflects the clients evaluation of the role required to be performed.

Interim Providers and clients alike will be interested in what you have achieved in your permanent career as either a manager or director. In particular, they will look at your successes whilst leading or directing teams as this key skill is often required on assignment. They will also take a close look at your judgement, communication skills and ability to take an objective approach in your work as these factors are critical to your success as an interim manager.

You should use your CV as your initial tool to market yourself. As an interim management provider we see literally hundreds of CVs each month and to be honest the standard is not always that good even when the candidate is actually very competent. Whilst there are many different ways of presenting CV's we recommend you stick to the following 10 golden rules:

• Use a opening paragraph to summarise your core competencies and experience.
• e.g. An Interim Manager with 10 years experience of operating at director level in operations and general management within the Aerospace sector.
• It is very likely that interim providers will use keyword searches when looking for suitable candidates for assignments therefore it is sensible to ensure the most relevant phrases are present in your opening statement about yourself.
• Do not write statements using adjectives such as ambitious, professional, experienced, excellent, etc because you are expected to have these qualities.
• Keep your CV to 2 pages and ensure your include your work experience in the last 10 years of your career.
• Choose a sensible font (Arial or Times Roman). The number of CVs we get which are actually difficult to read because they are written in 'wacky' fonts or italics you simply would not believe. These tend to go straight in the bin.
• Don't exaggerate your achievements - some CVs are simply unbelievable.
• Identity two professional referees - ideally from companies where you have been on assignment.
• Ensure you identify your sector experience clearly.
• Identify the geographies in which you are willing to work.
• List tangible achievements and be prepared to modify your general CV for each position applied for highlighting specific parts of your CV which are relevant to a particular assignment.
• Finally, ensure all of your professional qualifications are present if relevant.

It is possible to set up a limited company in only a few days for a very small fee. Specialist company formation businesses exist to help you with this process. We would strongly recommend that you also get advice from a qualified accountant to advise you on your directors responsibilities with respect to your limited company, IR35 legislation, PAYE/NI and VAT. What can appear to be a very daunting process can be handled quickly and efficiently if you do your homework first.

Most Interim Management providers will require you to operate through a limited company because it demonstrates you commitment to a career as an interim manager and also makes the contractual relationship simpler.

It is imperative that you take out an insurance policy to protect you in the event of litigation against you and your company. Whilst the likelihood of this happening is very small, this is one area where you need to be totally secure in the knowledge that you are covered just in case. Typical insurance cover ranges from £250K-£1M and premiums from approximately £275-£500 per annum. Again there are a number of specialist insurance providers for freelance consultants/interim managers. We suggest you take advice from organisations such as the Institute of Interim Managers should you need guidance in this area.

As a general rule of thumb, day rate (the VAT exclusive rate you would charge your daily services out at) is usually approx.1% of the total package a permanent person could expect to receive if they we carrying out the role. Therefore a £50,000 permanent package per annum would equate to a £500/day rate for an interim manager.

It is imperative that you 'pitch' your rate appropriately. For example a small business employing 6 people is unlikely to accept a high day rate whereas a multi-national company may be willing to pay a higher rate. One rate does not fit all so use your common sense and be flexible if you want or in some cases need the role.

Paul Wilson Managing Director Aster Interim Solutions Ltd - Interim Management