Interim management

Interim Management is the temporary provision of management resources and skills. Interim management can be seen as the short-term assignment of a proven heavyweight interim executive manager to manage a period of transition, crisis or change within an organization. In this situation, a permanent role may be unnecessary or impossible to find on short notice. Additionally, there may be nobody internally who is suitable for, or available to take up, the position in question.

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History

Historical antecedents come from ancient Roman times, with ancient Roman Publicans (Latin: Publicanus, plural: Publicani) or ‘Roman Contractors’ being engaged to erect or maintain public buildings, supply armies overseas, or collect certain taxes (such as tithes and customs). This system for letting contracts was well established by the 3rd century BC.[1]

The modern practice of interim management started in the mid to late-1970s, when permanent employees in The Netherlands were protected by long notice periods and companies faced large costs for terminating employees. Hiring managers on a temporary basis presented itself as an ideal solution.

Since the 1980s, the concept and use of interim managers as a resourcing tool for organisations has received attention from academic researchers and policy makers as well as practitioners. In 1984, Atkinson postulated the emergence of an organisation design comprising both a core and a peripheral workforce, using differing forms of contractual relationship (flexibility) on an international basis.[2] Examples of further study include Kalleberg (2000),[3] looking at temporary, contract and part time work; and Bosch (2004)[4] looking at Western European “employment” relationships.

A good example of interim management benefitting from a geo-political change was its use by the German privatization agency after reunification of East and West, post 1989. The demand was created for interim managers in Eastern Germany to apply the required management and leadership competencies necessary to re-structure the formerly state owned companies. Demand continued to grow in the 1990s in Germany as the economy struggled to deal with unification, recession and resultant ambitious economic forecasts for the ‘new’ economy. One prominent example, mentioned by Bruns (2006)[5] was the appointment of Helmut Sihler as interim CEO of German Telekom AG in 2001.

The Interim Management Value Proposition

There are several factors that make the Interim Management offering increasingly popular and cost-effective to client organisations. These factors are characterised as a ‘Value Proposition’ that Interim Managers offer to their clients.

Although there is some variation at the margins of Interim Management (with Temporary Workers, Freelancers, Contractors and Consultants) the following factors are typical of the Interim Management Value Proposition:.[6]

  1. Return On Investment. Interim Managers add value by using their skills and expertise to help deliver an outcome, solution, service or mitigate risk that provides a meaningful ‘Return On Investment’ to a client. Interim Managers are paid on the understanding of goals and objectives being performed and delivered, and not simply on the basis of attendance.
  2. Speed. Interim Managers can be in place within days as opposed to weeks or months which is essential when time constraints are paramount. Being practiced in engaging promptly with the situation, they become effective quickly upon joining a client organisation. Because of their experience and expertise, Interim Managers also conduct and complete assignments effectively and with due speed.
  3. Expertise. Interim Managers typically operate at a senior level in the client organisation, often being sensibly over-qualified for the roles they take on. They often bring skills and knowledge not otherwise in place, to address a specific skills gap or problem. Their experience and expertise enables them to be productive and make a noticeable impact from the outset, maximising the likelihood of success.
  4. Objectivity. Unencumbered by company politics or culture, Interim Managers provide a fresh perspective and are able to concentrate on what's best for the business. Being independent operators, they are able to contribute honestly without constituting a threat to the incumbent management team. Not being part of a larger business they are not pressured to unnecessarily extend their assignment.
  5. Accountability. Rather than taking on a purely advisory role, Interim Managers are managers who will take responsibility for and manage a business or project in their own right. They expect to be held accountable for results and by being instrumental in an assignment’s successful delivery, They give clients the peace of mind that the Interim Manager has stewardship of the project in hand.
  6. Effectiveness. Operating at or near board-level gives Interim Managers the authority and credibility to effect significant change or transition within a company. Unlike a ‘temp’, they're not just there to ‘hold the fort’. They actively add value to the client organisation as a result of their expertise and approach, even when the work and the decisions to be made are difficult.
  7. Commitment. Interim Managers maintain high professional standards because their future work relies upon referrals and a successful track record. They therefore have a stake in the success of the assignments that they undertake. This contrasts favourably with other ‘temporary workers’ who may also be seeking ‘permanent employment’ or simply motivated by a day rate or extending their tenure.

The Interim Management Assignment Lifecycle

Interim assignments vary in scope and requirements, encompassing change management, ‘gap’ assignments, project management and turnaround management. The following stages of the ‘assignment lifecycle’ are typical of how Interim Managers enter into an assignment, reach and carry out the actual implementation, and finally exit the assignment.

The early stages have much in common with Consultancy, as do later stages with Project Management, but the accountability and responsibility that Interim Managers have for successful analysis and delivery of a fitting solution, is what makes these stages uniquely typical of the Interim Management approach.[7][8]

  1. Entry. The prospective client and Interim make initial contact and explore the requirement sufficiently for the client to be able to decide to engage the Interim Manager (or not) to address the situation. This is likely to involve a ‘preliminary’ assessment of what the client thinks they want and the boundaries of the Interim Manager’s contribution. Typically this takes place over one or more initial meetings and results in the Interim manager’s provisional engagement.
  2. Diagnosis. The Interim Manager researches the current situation in order to understand it, how it came about, what are the requirements of the varying stakeholders. At this stage a more detailed understanding of ‘what the situation is’ is formed as well as approaches to address it. Differing issues or problems may come to light at this stage than initially highlighted by the client. On a ‘gap’ assignment this diagnosis may run concurrently with the handling of immediate issues. Typically the diagnosis stage will take a few days.
  3. Proposal. The interim Manager presents a more detailed proposal which acts as the Interim Assignment objectives and plan. If this differs significantly from the preliminary plans determined at ‘Entry’, the solution may involve different requirements from the Interim Manager or possibly the ending of the assignment. It is common that this ‘Proposal’ may challenge the clients understanding of the situation, on the basis of Interim Manager’s expertise. The Interim Manager takes the responsibility to propose a solution most likely to be effective, not automatically the one originally requested. In the case of a ‘gap assignment’ such a proposal may simply outline how the Interim Manager will be a ‘safe pair of hands’.
  4. Implementation. The interim Manager takes responsibility for managing the intervention, project, or solution, tracking progress and conducting periodic feedback reviews with the client. During this stage, Interim Managers particularly exemplify their expertise, accountability and effectiveness. Depending on the assignment, they get as close to the situation as is necessary, whilst remaining an independent practitioner. They may be managing teams, projects, dealing with crises or transformations or simply ‘holding the fort. Their implementation is unencumbered by company politics or culture, focused on the task in hand.
  5. Exit. The interim Manager, approaching project end, ensures that objectives have been met, that the client is satisfied. This stage may involve ‘knowledge handover and training’, determining and sourcing ‘business as usual’ successors, and ‘sharing lessons learnt’ in the process. The Interim Manager is focused on the success of the assignment and not simply the length of their own tenure, which means that this stage can be carried our professionally and objectively. Often this will be end of the Interim Manager/Client relationship. Sometimes Interim Managers may continue to give occasional ad hoc consultancy. Sometimes the Interim Manager will be re-engaged on a follow-on or further assignment, starting the ‘lifecycle’ again.[9]

Uses of Interim Management

There are a number of different business situations that could result in the need for an Interim Manager. Typically these could be situations such as crisis management, sudden departure, illness, death, change management, managing change or transition, sabbaticals, MBOs and IPOs, mergers and acquisitions, and project management.

The interim management concept has now taken root in the UK, Germany, and Belgium, and is spreading elsewhere, most notably in Australia, the US, France, and Ireland.

External links

References

  1. ^ Britannica Online Encyclopedia, 'Publican' 19/11/2009
  2. ^ Atkinson J. (1984): Manpower Strategies for Flexible Organisations: Personnel Management, 16(8): 28-31.
  3. ^ Kalleberg A. (2000): Nonstandard Employment Relations: Part-time, Temporary & Contract Work: Ann. Rev. of Sociology, 26: 341-365
  4. ^ Bosch G. (2004): Towards a new Standard Employment Relationship in Western Europe: British J. of Ind. Relations, 42(4): 617-636
  5. ^ Bruns, J: Interim Management in an Innovation Context, ISBN 978-3-86618-099-4 pub. by Rainer Hampp Verlag, 2006
  6. ^ Institute of Interim Management, Introduction to Interim Management (2009). http://www.iim.org.uk/articles/value-proposition 19/11/2009
  7. ^ Lovegrove, Harley; (2007), The Pragmatic Approach Of An Interim Manager: Making A Difference pp. 23-24, ISBN 978-90-209-7370-9
  8. ^ Institute of Interim Management, Introduction to Interim Management (2010). http://www.iim.org.uk/articles/stages 1/3/2010
  9. ^ Clutterbuck, David; Dearlove, Des; (1999), The Interim Manager, pp. 144,158-160 ISBN 0-273-63293-0