Interim Managers & The Interim Management Industry

The Background To the Interim Management Industry

It is reported that the industry had its genesis in the Netherlands because of less flexible labour laws. The introduction of the interim management approach enabled businesses who didn't want to increase long term headcount, to bring a line manager on board for a discrete period of time.

Interim management can be defined as: "the hiring of experienced executives for periods of typically between three and twelve months to rapidly address specific business challenges".

Interim managers are often used to:

fill a gap in permanent staffing or
to project manage change within a limited time period.

Many of the roles that interim managers undertake are at or near board level.

The Development of the Interim Management Market

The market has been growing at substantial rates, and several factors have influenced this. It has been said that the standards of professionalism in the field have shifted up a gear, as the interim management industry has matured. This in turn helps to explain why there appears to have been a cultural change in industry attitudes to the approach. Not least of all, an awareness of the value for money that interim managers represent by comparison with say the big consultancy firms has led to an increasing number of clients awarding change programmes to small teams of experienced interims, rather than more expensive yet less experienced consultants.

There are several things which will help to make the use of interims even more widespread.

The mobility of interim managers across European frontiers
An increasing openness to employ the interim management approach even at the most senior levels in industry.
Senior executives becoming more cautious about moving between businesses in permanent roles.
Referrals and word of mouth
The successful use of teams of interim managers, not least in regard to business turnarounds.
Frustration with the value for money offering of the traditional consulting companies.
The maturing market for agencies providing interim managers
The pace of structural economic changes e.g. outsourcing to the Far East
The adoption of the approach in small / medium enterprises (SMEs)
Those who have found interim management works, will keep using it.

However, there are equally a number of things which could slow down the development of the interim management market.

A slowdown in overall economic growth
The use of internal resources from abroad within global businesses for short periods.
There is still, in some market segments, a lack of understanding about either the approach itself or its benefits.

How Does the Market View Interim Managers?

Clients' views of interim management as a solution are very positive , given the growth of the market over past decades.

The "off-the-shelf" availability of individuals with exactly the right mix of specialist expertise and the avoidance of any need to employ an equivalent individual for the "long term" are big advantages that customers perceive. Normally clients have to be wary about making commitments to employ staff on "permanent" contracts, and when they do, an interim management approach can help to bridge recruitment delays; which can be considerable for senior roles.

Another substantial benefit that the approach brings is objectivity. Within any organisation there can be a variety of political agendas. Using an external agent can ensure that such issues are dealt with as fairly and as objectively as possible. The capability of interims to mentor and raise skill levels, whilst rapidly delivering results is also widely appreciated by those who have used the approach.

Buyers of management consultancy services are increasingly looking at interim management, especially when sector experience and process skills are likely to be found in senior managers who have actually delivered in a line role.

However, despite being much less expensive than the consultancy alternatives, some customers are put off by the apparent cost. It's quite natural (however ill informed) to compare interims charging £850 per day and line managers earning £ 85,000 per annum.

Others have suggested that interim managers were "too experienced" or "over-qualified". Furthermore some still perceive that using interim managers can demotivate certain staff.

It is certainly true however you cut it, that with even the most rigorous & careful handover, despite considerable investment in it, a valuable slug of expertise walks out of the door at the end of an assignment.