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!

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?

Getting started as an Interim Manager

First and foremost, don't rely totally on interim providers to find your first assignment. Interim management providers tend to use a 'trusted' number of interim managers who they know will represent their company in a professional manner. By all means register with companies like ours but you must also go on the self-promotion offensive at the same time. Start by making up a list of companies and people you have worked with over your career. If you are lucky you might have 100+ names of people who may have an interest in your skills and experience. Contact these people by telephone or by a well constructed letter. Explain what you can offer in a precise and factual manner. Try and get a face to face meeting. If they are prepared to make time to see you it means that they are potentially interested in what you have to offer. If the situation proceeds to a point where they are contemplating giving you an interim assignment make sure you don't alienate them by asking for a day rate beyond their means or a length of assignment the objectives don't warrant. Find a sensible compromise on both. Remember the old adage- it is easier to find a job when you are in a job. Once you have your first interim assignment it will be easier to find a second and then a third as your reputation and credibility builds. That's the time when interim providers can really help!

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.

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