Growth in the Interim market set to continue

We have seen a strong start to 2015 with increased numbers of mandates for assignments for interim executives to help deliver  transformation plans.

This growth is reinforced by the latest Ipsos MORI survey published by the IMA (Interim Management Association) which reports that the average number of enquiries per member is up by almost a quarter (23%) for Q4 compared with the same period in 2013.

A particular field of growth has been the private sector rising from 51% in Q3 to 67% in Q4. Finance remains a strong area even though the number of assignments has dropped from 46% in Q3 to 39% in Q4.  Financial institutions need to respond to regulatory changes imposed by the UK government or European Parliament and there will always be an on-going need for skilled managers to work on short-term projects to deliver change.

Other reported trends are the increased use of interims within the life sciences industry following an increased number of mergers and acquisitions taking place. Senior interims are being placed to offer expertise and support challenged management teams.

Whilst the pending UK election undoubtedly poses risks and decisions on capital expenditure and employment are likely to become more susceptible to delay; a changing economy still drives the need for the use of interim managers and this is a trend set to continue.

Statistics would suggest that experienced Interim managers are to remain an important resource for some time to come.

It's a people business

2014 has been a good year and indicators predict economic growth should continue in 2015, assuming of course political uncertainty doesn’t halt the momentum with the impending general election.   The recruitment industry as a whole has experienced annual growth of 8.3%, with rates reportedly at a 6 year high.

This is good news for candidates searching for  permanent roles and this is being mirrored in the interim market as demand for interim executives continues to rise. This trend has been reinforced by the latest Ipsos MORI results, which indicates a big rise in the use of interim managers across a number of sectors where businesses have a need for external resource due to a lack of capacity and/or capability.

More positive news for the Interim market is the support by the House of Lords Select Committee on Personal Services Companies that published a report highlighting the problems with IR35 and the administrative burdens it places on interim managers. The withdrawal of the Business Entity Tests (BETs) which were originally created to give contractors a means to voluntarily assess their IR35 risk but were actually making it more confusing to assess IR35 risk, should provide a clearer understanding of tax for the Interim manager and a less complex set of rules to come to terms with.

Despite recent growth in both the Interim and permanent recruitment market, statistics report that unfilled jobs are costing the UK economy £18bn a year revealing  some ineffective talent strategies.  Is it a lack of an efficient resourcing strategy or the  ongoing challenge for companies to locate and secure the right people quickly who are the right fit for the business?  Given the recently reported frustrations amongst candidates regarding the recruitment process, I would suggest the latter. Reports suggest that the candidate journey in the recruitment process is leading to frustration and wasted time which in turn, often sends the wrong (and quite damaging) message about the business with the recruitment need. Having the right partner to manage this is crucially important.

At Macallam Interim, we understand the importance of continual engagement throughout the process in order to improve the candidate journey and client  experience. We ensure we have a robust recruitment partnership that delivers the right candidate quickly. We  engage with the best of the interim market and not just those that are actively looking. It is about building strong relationships and having a pre-vetted network of top calibre interim executives from which to call upon.  The other element is the ‘sell’ of the clients business to the candidates.  This is often overlooked in the direct hiring process but can be the difference for a succesful outcome.

This partnership ensures we are quick to deliver for clients.  When we have a mandate it is often business critical and urgent.  Afterall, if it’s a genuine interim requirement that’s usually the catalyst for the need in the first place.  Knowing our way around the market is crucial to ensure we shortlist the very best available and appropriate candidates who will not only come to the table with a demonstrable track record of delivery and provide an impressive return on investment but have the credibility and gravitas to exceed expectations and make a real difference.

We constantly hear stories about businesses  being presented with inadequate candidates for their needs and end up wasting time and money having to start the process again.  Recent figures suggest hidden costs of £26,000 when hiring a new employee and this figure escalates  if the wrong hire is made.    Granted; this figure isn’t relevant for the interim market but nevertheless it should be taken into account when ‘interim’ is used as a way of short cutting the recruitment process for permanent roles.

We operate in specific sectors but also have a wide reach to other associated markets.  We believe skills are transferable and find a fresh set of eyes on a situation often yields the quickest and best result. Relationships often take us into new sectors but as long as the right process is followed, the right result will be found.

The candidate journey (as well as clients of course) is hugely important to us.  We believe that anyone we engage with should be treated as we expect to be treated.  Perhaps this is why our relationships are often interchangeable between ‘candidates’ and ‘clients’.  Candidates today often becomes clients tomorrow and vice versa,  As such the Macallam experience leads to referrals and a high level of repeat business thus reinforcing the simple fact that we are in the people business.

To discuss how we can help, please call 01423 704153 or e-mail steven.wynne@macallaminterim.com

The good news is set to continue

The latest Ipsos MORI survey completed by IMA (Interim Management Association) members for Q2 has seen a further increase for Interim Managers by 4%, illustrating that whilst confidence amongst business continues to strengthen there is still caution in recruiting permanent staff.

A particular field of growth for Interim Managers has been within Programme Management and Project Management roles and this has certainly been reflected by our client demand of late. Figures report that 66% of all Interim Managers on assignment are engaged within this capacity compared with 49% in Q1.

Business services are also a prominent sector for Interim managers illustrating the ongoing importance of the flexible resourcing options during business growth stage.  Companies also remain focused on lean management and reducing head count as managing costs is still an important objective and therefore value, delivery and ROI are important success factors when engaging an Interim manager.

Statistics would suggest that experienced Interim managers are to remain an important resourcing solution for some time to come with assignments in progress in Q2 remaining high.

For more information please contact Steven Wynne on 01423 704153.

Demand for Interim Managers is soaring

It is great news for experienced Interim Managers as demand is continuing to soar.  The latest Ipsos MORI survey completed by IMA members for Q1 has already seen an increase of 15% together with an 18% increase in fresh enquiries from clients for interim candidates; a reflection of the general upturn in the UK economy.

Other interesting findings substantiated by our figures here is an increase in public sector assignments which are reportedly up from 30% to 44%.  Also highlighted in the report as one of the key areas to benefit has been Sales and Marketing where there have previously been fewer opportunities for Interim Managers. 

There are good times for interims with the right skills as demand is strong and day rates are still rising so clients are being forced to act quickly to appoint the best candidate. However, organisation’s expectations are also changing and with focus still around business transformation and consolidation; adding value is the client’s key driver.

The challenge for any business  with a short term business critical need is appointing the best candidate in the shortest possible time and ensuring that the interim delivers on a number of key criteria. Macallam provides a shortlist of the most appropriate candidates within days of the client briefing and we ensure the long term success of our placements based on creating mutually beneficial relationships.

Interim Management Market Trends

As we enter Q2 of 2013 how is the landscape of the interim market looking?  My view is not too bad but am getting  mixed views from others.  The climate continues to be challenging but there are green shoots appearing from a  number of areas.  Business or contract turnaround, restructuring, projects / programme management  and finance  continue to be busy but also seeing more demand for strategic business development for organisations both in the  UK and internationally.  We are seeing an increase with our clients looking to grow and require strategic input to  help move the business forward and drive the change programmes that will ultimately transform their  organisations. 

The latest Ipsos MORI  (IMA membership audit)  results confirm that special projects accounted for the largest  proportion of interim assignments in 2012 with programme / project management the highest cited reason for the  assignment at 35%. This doesn't come as any surprise as 'special projects' can cover a multitude of scenarios and  span all of the functional areas of a business.  Finance follows closely as a functional discipline   ( this will include  turnaround and restructuring from a finance focus) and we have certainly been busy through 2012 and into 2013  with finance assignments.

Engagement of interim executives remains highest  in the private sector with 64% of assignments completed   compared to the public sector with usage running at 64% with Banking and finance accounting for the highest  percentage of this at 47%.

The average length of assignment is 175 (billable days) but with almost one third lasting between 60 - 120 days.   This doesn't really tell us a lot as each assignment should be treated on a case by case basis but useful information  all the same.

The split between male and female interims is roughly two thirds to one third in favour of males but this will of  course fluctuate on a quarterly basis.  We have  experienced an increase in female interims on assignment.

The interim proposition continues to provide a flexible resourcing solution although the economy continues to  have its ups and downs and is likely to do so for some time yet, with companies recognising that this is often the  most successful and  cost effective route to solve an immediate business critical problem or help them with  projects etc.  There are of course the ongoing threats from new entrants to the market, indecision, and pressure  from the Government over recent months, but one thing remains certain and that is a continuing need for  businesses to engage highly skilled, focussed, results driven executives to spearhead change and drive  transformation programmes. 

By Steven Wynne

Continued growth for Interim Managers

The latest findings from the quarterly Ipsos MORI survey for Q4 2011 show continued growth of the industry, in spite of the recession. Enquiries for all member firms are at a 5 year high and the average length of assignments has also increased, from 108 days in 2006, to 166 days in 2011.

The results reveal that enquiries for interim managers were the highest they have been since 2011. This is a rise of 76 per cent on the same quarter in 2010, and 4 per cent on the third quarter (Q3) in 2011.

Companies within the private sector are increasingly turning to Executive Interim Managers to solve problems and help manage change within their businesses; this sector represents two thirds (66%) of all assignments, the highest percentage for four years.

Thirty per cent of requested assignment functions in this quarter were for Special Projects (up from 26% in Q3 2011) followed by Finance (17%) which saw a two point fall over the same period. C-suite executives represented 7% of the IMA business in the final quarter of 2011. The most common reason for an assignment is Programme/Project Management, with 40% in Q4, up from 36% the previous quarter.

The largest increase was seen for Change or Transition Management, which in Q4 accounted for 19% of the all assignment functions, up from 14% in Q3.

Business Improvement and Gap Management each represented 16% of completed assignments in the final wave of 2011. Whereas the former was relatively unchanged from the previous quarter (up 1 percentage point from 15%), the proportion of completed assignments attributed to Gap Management decreased by seven percentage points (from 23% in Q3). These figures are notably higher than the next most cited reasons such as but then this is dependent on how the individual providers have categorised the reason for the assignment.

Unsurprisingly, the public sector is running at its lowest level for four years with only 34% of interim management assignments accounting for this sector. Additionally, as in previous quarters, the majority of assignments in Q4 were predominantly based in the UK (94%). However, this quarter saw an increase in the number of international assignments (6%), particularly those based in Western Europe.

By Steven Wynne

Rise in the use of interim managers

The latest results from the IMA (Interim Management Association) Ipsos MORI market audit (compiled by all IMA members) for Q2 of 2011 has found the number of Interims engaged by businesses has increased marginally by 2% from Q1 2011. However, the number of executives actually engaged on assignment has decreased by 12% from Q1 as has the number of new assignments started in the quarter but only by 3%.

This is not so surprising as the month of April was challenging given the amount of people taking advantage of the extended holidays.   The length of assignment has remained much the same as Q1 and remains 28% higher than Q1 and Q2 of 2010.  The number of female executive interims currently on assignment has increased 2% from Q1.

The private sector remains active with 61% of completed assignments in Q2 2011 which is up from 57% in Q1.  The increase in the private sector is encouraging as figures have now returned back to those seen in Q3 2008 when the recession took effect and indicates the slight decrease in numbers is due to the decline in public sector assignments.  

Interestingly, the highest number of assignments is Programme / Project management but this could cover a multitude of sins.  ‘Gap management’ also features quite highly and I suspect some ambiguous reasons given for the need of the executive interim in the first place and feel sure the underlying need was likely to be more business critical.

It will be interesting to see how these trends develop but from our prospective, we remain busy helping clients with Change programmes, Restructuring, Turnaround, Business improvement and Finance related assignments.

By Steven Wynne

Demand for Interim Managers on the increase

Although still in difficult trading conditions and much uncertainly still prevalent in many sectors, the demand for Executive Interim Managers has seen an increase in Q1 2011.

The latest results from the IMA (Interim Management Association) Ipsos MORI market audit (compiled by all IMA members) has found the number of Interims engaged by businesses has increased. 
The needs have been for reasons cited such as special projects or for change programmes to facilitate businesses that are going through change or transformation.

The report highlights a 29% increase in the number of interims utilised for special projects, 20% increase in finance assignments, 32% increase in programme /project management and 21% increase for Business Improvement. 

The number of new assignments saw an increase of 13% which is the highest recorded level since Q2 of 2010. Private sector usage is higher than public sector as you would expect during 2010 compared to an almost even split historically.

Businesses are turning to Executive Interim Managers to help drive change, projects and operational efficiencies.  They can bring in an experienced Executive to quickly deliver the agreed objectives and to drive change programmes without the distractions of ‘business as usual’ thus providing a good return on investment.

By Steven Wynne