Interim Management – the Ultimate Guide
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INTERIM MANAGEMENT – THE ULTIMATE GUIDE Colin Hawkins reflects on his successful 16- year career as interim manager and consultant after working in a permanent role for the first part of his working life. He shares insights gained as he progressed from Auditor at a Big Four firm, to Financial Controller at a quoted PLC, to Board level Finance Director of medium sized international group. Colin is now a part-time director of two companies trading and investing in property. He wrote this feature to share his advice and experience with those who are looking at moving into the world of interim management. CONTENTS Why go into interim management?.................................... > 2 What makes a good interim manager?.......................................... > 6 Interim vs Permanent…………………………………….... > 3 - 4 How to market yourself and land the right interim assignment .. > 7 - 12 The best and worst features of interim management….. > 5 Some stories from my interim life…………………….……………….. > 13 - 15 WHY GO INTO INTERIM MANAGEMENT? It is easy to fall into interim work without thinking too much about the decision. Most people end up working as an interim due to a redundancy. Even in this situation, you need to ask yourself if interim working is right for you. The best test is to find every reason not to do it and then, if you remain convinced, it’s probably right for you. You need to ask yourself these questions: 1. Can you cope with the lack of financial security? 3. How will being in business on your own impact your family? You must have a buffer to withstand down time. When an Family support is important, otherwise stresses can evolve interim role ends there is no redundancy money to fall back which may later hamper your achievements, or impose on, so if you have a mortgage and school fees to service, strain on family life. then think carefully about interim as a career. 4. Will you miss being a ‘permanent’ part of a management team? 2. Can you cope with the loneliness of being on your own when in work and out of work? 5. Do you have the physical and mental fitness to cope with the ups You need to stay cheerful in the face of adversity. You’ll be and downs of interim life? best suited to interim if you’ve had a position of authority where you – and only you – have had to make the key decisions. To be a success, you need to have confidence, enthusiasm and energy to involve yourself in the world of interim. It is not just a holding game until something better happens. “At the end of all interim roles I have received thanks for making a difference and contributing to the business. The thanks from fellow workers and management have been so enthusiastic and fulsome that it makes it all worthwhile.” > 2 INTERIM VS PERMANENT As an interim, although you may have a title like CEO, CFO or FD with the word interim stuck in front you have a different role from the permanent equivalent. You are independent, yet work from the inside. You provide far more advice and consultancy from a wide range of experiences. Your time with any organisation is brief and generally for a clear specific purpose or project. This means it’s right that you have a different status from a permanent equivalent: you are there to make changes quickly and you are hired for your change management experience. As an interim, you provide consultancy services as part of the package, but you are not a consultant. The old adage that “a consultant is someone who borrows your watch to tell you the time, whereas an interim fixes it and improves it” is very true. Seasoned interims are maverick and independently-minded. Some might say they could never survive in a corporate world, but actually they have seen it all before and are happy to live next to it but not in it! WHAT HAS CHANGED IN THE LAST 16 YEARS? > THE INTERIM MARKET Previously, most of your time in an initial interview was > INTERIM PROVIDERS spent explaining what interim management was all about, 16 years ago, there were just a handful of interim providers but now it is far better understood. There is still some and so you either made it onto their books or not. Now, there scepticism, which is understandable. Interims seem to be are possibly over 200 agencies and the scene is fragmented, able to flip between interim and permanent, whereas with many individuals moving around or setting up on their before, this would have been frowned upon. Sixteen years own. Several interim providers have re-organised themselves ago the dot com boom was in full swing, creating into teams dedicated to specific sectors. This undoubtedly demands for anyone who could write a business plan or meets clients’ perceived needs but makes it less attractive pretend to do so. Private Equity firms and banks were keen for the interim who prefers to move from one sector to to put in key turnaround guys and some interims flourished another, providing a range of non-sector-specific skill sets. without an interim provider, as workflow ensured a steady Some providers judge a candidate’s suitability based on stream of roles through just a few contacts. Although the sector experience rather than their character and skill set. number of interim roles has increased overall, and in spite of less turnaround work, there has been a greater increase “Interims are constantly learning, through in interims and interim providers. Competition to land the next role has grown. being thrown into new roles. You’ll develop your team management skills in varied > LINKEDIN This has changed access to the market. On the surface, circumstances and receive thanks for the it’s easier for the client to reach a potential candidate, but work done.” with no quality control, the client will be less sure they find the right ones. > 3 INTERIM VS PERMANENT (continued…) > INTERIMS > TAX 16 years ago, interims were far more maverick in outlook and The Government has always struggled to make IR35 work as it style. After all, you were going into the unknown and, like all should. It’s now resorting to budget and legislation changes explorers, probably possessed a more adventurous spirit than for clients and intermediaries to force its way, and there will most. Today, there is less distinction between interims and be unintended consequences for many genuine interims and permanents, which has likely been fashioned by changes in others totally unconnected with the interim world (or the ‘gig the market. economy’). The change in tax on dividends will adversely affect an interim’s net income. With pressure on fees and > TIME TAKEN TO LAND A JOB with tax changes, the financial benefits of interim work seem This has increased significantly. Previously, with fewer interims likely to be less attractive, so deciding to become an interim around, clients would hire anyone meeting 75% of the is going to be even more testing. requirements. There were rarely any written job descriptions and decisions were made quickly. Now, there’s insistence that candidates meet all requirements. Clients have more choice and more than one interview is typical, which means decision-making is slower. Maybe this risk averseness has resulted in some interim assignments being more successful, but it comes at a cost to all. The interim world, like many others, is now more process-driven and less free-spirited. It may be more professional but it’s a lot less fun. > DAY RATES These have not increased in recent years. The relationship between day rate and annual salary, or ratio of day rate compared with an equivalent permanent salary, has worsened over the last 10 years. It is now a far less attractive option for the interim, and so the increase in interims must be “Anotherdriven by factors major other disadvantage than income. is that, just as you bed into an organisation, you find it’s time to leave. If being part of a team for the long-term is important to you, then interim is probably not the best choice.” > 4 THE BEST AND WORST FEATURES OF INTERIM MANAGEMENT BEST WORST 1. Meeting a huge number of interesting people: From interim 1. Gaps between work: Some interims find this more troublesome providers, top-level directors, accounts teams, professionals than others, but for all interims it is something to manage and and other seasoned interims. some do this better than others. I have been fortunate in not having more than a few months out of work during these 16 2. Tasting a huge range of roles: From Consultant, to Financial years. You need a financial buffer, a cheerful disposition in the Controller (FC) to Group Chief Financial Officer (CFO) of a FTSE face of adversity, steely resolve to reject a job that is not right, 250 listed company. and support from those closest to you. My wife ran her own business and has experienced all the ups and downs that 3. Working in diverse sectors: From Business Services to Utilities, come with this: she told me confidently that the long wait will Waste Management, Telecoms, Media, Events Management, not be for long and something will turn up. She was right! Hospitality, Healthcare, Education and Property. Working with different types of businesses – from PLCs, to Private Equity- 2. Financial reward: Interim work may or may not be better paid backed enterprises, to SMEs, charities and mutual companies. I than a permanent equivalent job. It is not going to make you would never have been considered for a permanent CFO particularly wealthy.