A New Year, a new decade and a time for change.

It’s time to reflect.  Not just on another year gone but on the next 10-year horizon.

Economic growth should be stimulated now the UK has left the EU and entered a transition period until the end of 2020.  This, in theory provides at least 11 months of stability and with the shackles off, businesses can now finally plan with some certainty after previous deadlines were not stuck to and the UK remained stuck in Brexit limbo.

Businesses have responded quickly to the UK’s new political landscape according to a recent survey by IHS Markit and the Chartered Institute of Procurement & Supply (CIPS).  It suggests for example, that the services sector stabilised in December and that order books had picked up, with optimism at its highest level for 15 months.  This concurs with other surveys purporting that Britain’s economy is on course for a strong 2020. The services sector is particularly important because it accounts for around 80 per cent of the British economy.  It also happens to account for a large proportion of our client base.

Organisations need talent to grow and push forward with resourcing plans.  We are entering a period of significant change and the interim world has to adapt.  With the ongoing Brexit twists and turns and the immediate changes to the reforms to IR35 due in April 2020 to the private sector, there are currently more questions than answers.  I believe IR35 does provide an opportunity to ensure that interim assignments are more clearly defined and scoped with pre-determined timescales and objectives.   It reminds me of the ‘true’ interim market when this was the expectation and the norm before the new breed of interim became a thing, creating a ‘grey’ interim world where  it became a convenient route to a permanent role and over use of the title culminating in the growth of the ‘interim’ interim.

Our role is to consult with businesses that all face similar challenges and all need certainty and clarity to move their own organisations forward.   After all, how can we expect businesses to plan if they don’t know what they’re planning for? Resourcing is part of this planning process and certainly makes up the bigger picture when implementing New Year and new decade strategies.  Without the people to execute the plan, nothing happens. Without the flexibility and deliverables an Interim resource provides, the business can’t change.  Without the option of bringing in someone to take advice from, how are you sure the right decision or direction is being taken?

Doing nothing is not a strategy.  Businesses will continue to resource experienced executives in times of change, transformation, restructuring, crisis etc. but the reforms to IR35 quite frankly contradict the modern world we now live in where the effects of technology are quite profound.  Many organisation are becoming more automated regardless of sector, AI is growing and digital transformation is firmly on the agenda.  Flexibility is key. The next 10 years will bring about profound change and resourcing flexible talent must form part of the strategy.

For further information on Macallam Interim Resourcing or for a confidential discussion please contact Steven Wynne, Managing Director on 01423 900804 or steven.wynne@macallaminterim.com  or visit www.macallaminterim.com

The Interim market, Brexit and beyond…

Time to reflect on 2018 and look forward to the year ahead. We are faced with an even more uncertain world with the continuing twists and turns on the political front, the now bumpy economic climate and the demise of a number of large businesses.   We are used to dealing with change and challenges; from economics to politics and clients to candidates but this is uncharted territory.

The fiasco that is Brexit with its various connotations of remainers / remoaners, hard exit / soft exit, good deal / bad deal, etc. has divided the country.  When you consider the complexities that include Trade, Customs Union, Legislation, Northern Ireland, Security, Education, Science, Energy, Farming, Environment, Healthcare, Transport and so on, it’s no surprise there are divided opinions.  With no one knowing how this will play out and what the ramifications are likely to be, it makes planning extremely difficult especially when the view of stakeholders is likely to be split.

In 2018 there have been casualties, not all Brexit related but a reflection of a tough climate.  The liquidation of construction giant Carillion early in 2018 with the accolade of becoming the UK's biggest corporate failure in a decade has put the construction sector under further strain.  Interserve is hanging on by its fingernails having once been a £3.3B revenue business now worth c£15m.  The high street is on its knees with a number of high profile collapses such as Maplin, Toys R Us, Poundworld and House of Fraser to name a few and many others struggling. Some of these businesses are being bought either wholly or in part from the Administrators which in turn is creating opportunities. Some businesses are embracing this through expansion of facilities and looking for bargain acquisitions.  Mike Ashley’s Sports Direct business is now a multi-billion £ business and I don’t think this has been achieved from being averse to risk.  It’s about seizing the moment but also ensuring that when these opportunities do come along you are in a position to act.  

The rhetoric is a similar scenario of the last recession with worries of another but somehow this feels different.  Brexit is fueling uncertainty and indecision.   How do you plan if you don’t know what you’re planning for?   Managing short-term requirements with longer term business objectives is proving very difficult as you can’t plan for the medium to long term with all these major changes afoot.

This is the very climate that fuels demand for Interim Executives.  Organisations that don’t want to commit long term with a permanent appointment find a short term solution is often the answer.   Many organisations need help with supplier management / rationalisation, customer service, cost control, planning, risk management and talent.

The interim market has additional complexities but paradoxically there are many opportunities.  Changes in IR35 legislation continues to ‘frustrate’ the market and having been already implemented to some degree in the public sector, I’m not so sure how things will transpire should the same happen in the private sector.  Public sector interims have been able to change tack and move to the private sector but if it hits the private sector, it leaves nowhere else to go. 

I believe many organisations are taking a holistic approach to talent acquisition. In the short term, they require immediately available Interims to deliver short term objectives whilst focusing on a longer-term approach by taking a deep dive into business imperatives to create a total strategic plan that has clearly defined goals, but one that can be amended as needs change.  Executing strategic objectives now requires an agile, responsive and flexible approach to meet the changing tide and businesses don’t necessarily have the internal capability or capacity to deliver hence the external help. 

Interim Executives provide a service to organisations in all stages of their development and plans.  It seems to me that now more than ever is the time for ensuring the mechanism remains in place for this to continue. This help is crucial to ensure survival and at other times growth.  It is usually driven by the need for change, transformation, restructuring, turnaround, projects etc. requiring a professional to implement and deliver.   

Organisations should continually be looking to improve and be more efficient.   Ways of growing either organically or through acquisition, improving efficiencies, improving customer services, acting on opportunities and kick-starting change projects could all be helped along through the utilisation of Interims. 

It’s interesting times and is making politics and business quite fascinating.  There’s a lesson here in resilience, persistence and integrity.   Businesses can learn from Theresa May’s approach which should be a lesson to us all regardless of your political affiliation.  Sometime you have to dig deep, be resilient and stick to what you believe. 

With an Interim population consisting of some very experienced, high calibre individuals, there is now more choice than ever with an increasingly diverse and committed professional possessing the tool kit to drive organisations forward.  Now is the very time we all need to dig deep, push the button and take steps forward or run the risk of standing still or even worse, going backwards.  

Steven Wynne

Managing Director

Macallam Interim

TEL: 01423 900804

E: Steven.wynne@macallaminterim.com

W: www.macallaminterim.com   

 

 

 

The Importance of Being Earnest

The Importance of Being Earnest

Brexit, Trump, Leicester winning the Premier league, the passing of musical geniuses – the list goes on.  Let’s face it, we have had everything thrown at us in 2016 but there’s one thing that remains certain and that’s change.    We are living in uncertain times and this will inevitably affect the decisions of organisations and their appetite to forge ahead with plans.  This uncertainty is creating the need for change on the one hand but paradoxically is leading to inaction on the other due to an over cautious approach.   It would be a huge mistake for organisations to do nothing with the risk of  market share loss, acquisition targets slipping through the net and losing key talent to name but a few.   

Leaving the EU is a mammoth task.   The globalisation of the UK is firmly on the agenda and although it will take years to go through this messy divorce, hopefully the UK will be stronger for it.  But what happens in the meantime?   It’s the uncertainty that will create problems as ‘projects’ are put on hold.  Clearly for businesses in crisis, something has to be done urgently but the need for an interim isn’t always for reasons of crisis management.   

Organisations in need of transformation, restructuring, project / programme management, business improvement or anything that results in change continue to need people to help drive them forward without distraction.  What has become prevalent  is the need to put a compelling case forward firstly as to why interim is the right/best solution and then it’s down to the interim to provide reassurance and a convincing pitch as to why they should be selected with some quantification around the return on investment (ROI). 

It matters now more than ever to make a difference but how can an interim executive ensure they make a ‘real’ difference and deliver in a way that meets with expectations? There are a number of skills, competencies and personality traits needed to succeed as an interim.  Here are a few;

Honesty – providing an open and honest account of the findings.  Interims are able to do this (on the proviso it’s delivered in a professional way) without fear of job security, weakening promotion prospects etc.  The value to management, shareholders, stakeholders and employees is immeasurable. Quite often the day to day gets in the way and organisations can’t see the wood for the trees.

Delivery – hugely important and ultimately will be the basis of measurement of how successful the assignment has been.

Speed – expect to be parachuted in to new environments, grasp what the business does, build relationships often with customers, suppliers, and subcontractors and address the issues causing the challenges.  The problem should be solved and solution implemented as quickly as possible.

Objectivity – an impartial view of analysis undertaken provides the leadership team with a balanced, honest opinion without the person delivering the message having another agenda. 

Coaching / Mentoring - this is always part of the brief whether or not it’s been clearly defined.  This can be for members of the leadership team, management team or just generally a style that should be adopted when leading people for the short term.

Engaging with stakeholders – interims often find themselves in quite complex scenarios with multiple stakeholders that have to be taken on the journey.  Building relationships is part of the remit.

Communication – can’t be emphasised enough.  Any change programme’s success is dependant on how engaged the people are. 

Don’t get drawn in to BAU issues – the reason the client has engaged an interim in the first place is because they don’t have the internal capacity or capability to solve the problem.   If the interim finds themselves in a firefighting situation, they are likely to take their eye off the ball from the original set of objectives.

Confidence and gravitas – the fact that someone has embarked on a career as an interim is borne from having achieved and delivered during a corporate career at board, functional or in a business leadership capacity.  This knowledge and experience should enable the interim to tackle challenges with the necessary agility and be chameleon like in approach.  

Managing the exit – once the agreed objectives have been delivered it’s important to manage an exit at the appropriate time.  The interim should avoid hanging around unnecessarily as this will quickly diminish the value created from the good work undertaken. 

Leaving a legacy – be remembered for the right reasons.

This is all underpinned by the raison d'être of adding value, making a difference and ensuring a return on investment.   It’s the little wins that can make the biggest difference and mopping up the unexpected problems where the interim can go the extra mile.

In order to ensure a successful assignment for all parties it’s important to be honest and how this is delivered will determine the added value in the long term.  After all, the results of this assignment will determine the reference received and how quickly the next one is secured.

For further information or a confidential discussion about how we can help please contact Steven Wynne on 01423 704153 or email steven.wynne@macallaminterim.com

     INTERIM OUTLOOK

Steering businesses in a world of growing political and economic disruption

During the last quarter of 2016 there was an increase in activity in some interim market sectors, which appears to have carried over into early 2017. There is talk amongst some businesses that the time for watching and waiting is over and regardless of the expected continued period of uncertainty, companies need to take hold of making the necessary changes to enable them to move forward and undertake the growth and opportunities available.

Or… is this another blip in interim activity soon to be followed by yet more market caution, uncertainty and hesitation?

What is certain is that change and uncertainty have become the new norm and will remain with us for at least the next few years whilst the world undergoes disruption, which some are referring to as the Worlds 4th Industrial Revolution. Sitting still and waiting for world stabilisation no longer seems to be a viable business option.

Global and domestic changes may well have significant impact on many business sectors that will need to respond to this by making their own internal changes, even if this is to retain existing business levels or avoid erosion.

Undoubtedly there will be many opportunities that will come with the significant changes that lay before us. Being nimble and building capability and flexibility into business models will be key to being able to manoeuvre through periods of sometimes radical and unexpected market changes and to grasp the opportunities that arise.

Political and economical changes will result from a number of foreseeable domestic and international situations which we may all have to work with -

• Brexit will cause substantial changes yet to be realised, but some can be considered and reactions to   these identified and planned

• New Free Trade agreements for Britain with larger overseas economies will produce market               opportunities which might require preparation, restructuring and added capability

•  A European slowdown is already happening and the uncertainty surrounding elections there will          accentuate this at least through 2017 and beyond, added to a widening question by some countries      about their own continued membership of the European Union, general financial instability and even a  possible collapse of the Union.

• The value of the Pound as well as the Euro and the US Dollar, will affect exporting and any increases    in the cost of purchasing products and materials may affect supply chains with a need to consider        alternatives.

Many companies may find the complexity and scale of such changes hard to deal with without help. Good interims who are over qualified and have done this before many times will be in demand.


With Thanks to Barry Allen

Interim Outlook by Barry Allen, an Interim CEO, COO, MD & Strategic Board Advisor 

Brexit and the Circular Economy

Having attended the RWM / Energy event last week, I was interested to update on latest developments with the Circular Economy, Energy from Waste and Recycling / Reprocessing / Waste sectors.   What became apparent is that whilst the UK is pushing to develop a circular economy there are huge opportunities in what is now becoming the Global Circular Economy.  This got me thinking.  Will Brexit (whatever Brexit means) have any impact on the objective of achieving a world where we reduce resources and extend the lifecycle of what we use and recycle as much as we can if we leave the EU?

For those unfamiliar with the terminology the circular economy is a modernised version of the old ‘reduce, re-use, recycle’ mantra with the objective of stripping out waste, streamlining supply chains and converting what we can into energy.  The market opportunity is huge and with the changes afoot the Global Circular Economy could be a $1 Trillion opportunity.  In the UK alone this could equate to £3-6 Billion and the creation of 50,000 jobs.  

All the respective sectors and businesses within those should all be contributing.  Ultimately we need to reduce the amount of waste going to landfill and I believe any businesses producing waste of any description has a duty to fulfil.  This then extends to the domestic world and peoples behaviours in their homes, buying habits in terms of purchasing what you need not what you think you need and everyone contributing to a less wasteful existence.  These behaviours are interchangeable as habits become the norm if practised often enough and what might be a move to reducing the weekly shopping bill at home can actually extend into achieving resource efficiency in business.

Education, Legislation and communication are key and it takes the leaders of business, Government (central and local) to push this down from above.  After all there are money making opportunities from the renewable sources of energy that can be created, the cost savings in reducing materials spend and reducing waste;  so why wouldn’t you?

It is more important than ever that we work together what with an ever increasing population, rising commodity and material prices and working through global supply chains to reduce firstly what’s purchased and then secondly what we send on a journey.  Making that process as efficient as possible is imperative in order to attain the goal.

What can be done when so much change is needed?  A start would be to ensure the best and right talent is being utilised to full effect.  Engaging experts in the field that can drive forward the agenda within companies seems to me to be a hugely important part of the achieving the goal.  Individuals without the distraction of day to day BAU that can push the difficult tasks and drive a cultural change within the business.  Additionally those responsible for the corporate social responsibility agendas in businesses have a great opportunity to drive a zero- waste and re-use culture which in turn will result in improved efficiencies and more profitable operations.   

There are of course many businesses now involved in the resource efficiency market from those involved in building and operating Energy from Waste plants, Recycling, Renewables and so on that are all running businesses and making profit from this. Waste has become a valuable resource and although we should all try to minimise it, it’s hugely important that it’s dealt with in the right way and in the right place.

The Waste sector has been driven by EU legislation for quite some time and it’s vital that the UK does not lose ground.  We need more progress.  Europe’s economy has created vast wealth in part attributable to the trend of improving and re-using resources.  Sub industries have grown and flourished and can go further across Europe and indeed globally.  It was in fact the UK that was an early adopter and leader in the EU of addressing environmental issues with the introduction of the Control of Pollutions Act 1974.  Whether or not Brexit will have any impact on this remains to be seen but it seems to me that as part of the mammoth task that lies ahead in terms of managing an exit (possible) from Europe, we need new legislation in place to reach our goal of attaining Zero waste businesses and ultimately cities to co-exist with the ensuing trade agreements that are going to follow.

Steven Wynne

For further discussions please contact Steven Wynne at steven.wynne@macallaminterim.com or telephone 01423 704155