Is there a new breed of Interim Executive emerging and how will 2014 shape up?

Encouraging economic news suggests we are easing out of recession with the latest snapshot being that the UK economy is growing at its fastest rate since 2007.  This is great but we have a long way to go before confidence returns to previous levels.  The Interim market is however already reacting with signs of stabilised growth and IMA member firms maintaining current levels.  It will be interesting to see how demand shapes up in 2014. 

The climate over the last few years has caused a changing landscape of the Interim market and the conditions have been challenging.  There have been casualties both from the ISP’s and from Interims who have had to rethink their plans. Decision making has been slow, requirements more prescriptive, additional stakeholders have been involved in the selection process and generally more caution has been exercised.  However, 2013 has seen many assignments get underway that I think 12/18 months previously may have faltered at the start.  It would seem organisations have the appetite to move forward now and are seriously exploring growth, M&A, Business / Process Improvements and Change Programmes and recognise help is needed to kick start and deliver these initiatives.  

What remains constant is that organisations with the foresight to engage interims tend to react more efficiently to changes in their own markets, economy and environment safeguarding competitive advantage.  There is certainly a wider understanding of the benefits of engaging an Interim - albeit there is still misunderstanding about what constitutes a proper Interim need.   Return on Investment is an obvious one and there is an increasing realisation of the flexibility and speed an Interim solution offers.  When organisations make the decision or are forced into utilising an Interim, they want someone in situ quickly and more importantly, with someone who delivers and makes a difference.  Costs still creep into the decision making process but this soon becomes less important when the benefit to the business is realised.

Fundamentally the objective behind engaging an Interim Executive has not changed.  Boards still require high level, wide ranging experience to provide insight and objectivity with an Interim who will drive change, deliver, add value, provide ROI and leave a legacy.   No changes there then but it seems organisations have become savvier in utilising a flexible resourcing solution for a variety of situations and want the results the interim solution provides.  

Arguably, this is perhaps creating fewer opportunities for the ‘old school’ interim executive with wide ranging, cross sector experience.  I don’t think they are being squeezed out; more that competition for the assignments is much tougher now and organisations are increasingly utilising a flexible resourcing approach when the internal capability or capacity is lacking.    There is also increasing interest in talent mapping of interims so organisations can act quickly when the need arises and allows planning for projects they know they will need external resource for.  This in turn is fuelling demand for specific sector experience in some cases as they have the time to undergo an elongated process to uncover niche experience.  

This development is fuelling demand for new entrants from within sectors with an understanding of similar products or service, customers, supply chain and technical knowledge.  We are also seeing an increased number of female Interim Executives being engaged on assignments (the latest  Ipsos MORI results show Females accounting for 36 per cent of Assignments – a figure that continues to increase and the highest recorded level since 2010).  

In a turnaround scenario, Boards that recognise the value in engaging a high level Interims with the ability to provide quick solutions, a different approach, an impressive track record of delivering in similar situations and the ability to coach the leadership team and steer them into safe waters can be the difference between survival or not.   Bringing someone from a competitor is more likely to provide more of what they already have when often a fresh pair of eyes is needed. 

So, will 2014 see further changes driven by increased demand? Revised shopping lists of requirements and acceptance of the emergence and demand for a new breed of interim executive is certainly creating a new career path for some.   My view is there will be more growth orientated assignments with a requirement of some sector experience coupled with those businesses that require high level business leaders with transferrable skills.   This will of course create opportunities and drive demand which is all good for the market and I suspect the ‘new breed’ might well be in demand for the former and the ‘old school’ for the latter.  

For a confidential discussion please call Steven Wynne on 01423 704153 or email steven.wynne@macallaminterim.com  or visit us at www.macallaminterim.com

By Steven Wynne 

Interim Management market sees steady demand

2013 has been an interesting year.  We are definitely seeing an increased appetite for kick starting projects or change programmes that had been on the back burner with a real push in the last half of 2013.  Our clients are keen to engage with highly professional Interim Executives who can help drive change programmes forward.

The latest Ipsos MORI IMA (Interim management Association) survey (Q3 2013) completed by all IMA members is showing encouraging news in that the figures are showing stabilised growth for the sector and member firms are  maintaining current levels.  

Interestingly the findings show the most common reason for an assignment remains Programme/Project Management with 62% of all interim executives hired for this purpose (up 6 percentage points from 56% in Q2 2013)  although this could be used to badge a variety of assignment needs.

Turnaround/Crisis Management has increased 1 percentage points to 12% (11% in Q2 2013) which seems to fit with what we are seeing.  The private sector still accounts for the largest proportion of assignments at 60% although down 5 percentage points from the previous quarter.  The Financial Services sector continues to lead the private sector with 45% of all assignments being from this sector. However, this sector has declined compared to Q2 2013 (59%). The other leading sectors are Business Services with an 11% share, IT & Telecommunications with a 7% share and Manufacturing with a 6% share this quarter.  The public sector has grown its share from 35% in Q2 2013 to 40% in Q3 2013.

Female Interim Executives are accounting for 36 per cent of Assignments – a figure that continues to increase, and the highest recorded since 2010.

It would appear that the changing landscape of the market continues and although client briefs are sometimes quite tight and their requirements quite prescriptive, the good news is that they are engaging someone to work with them with a realisation that the added value, deliverables and ROI are proving to make a worthy investment.

Steven Wynne

Managing Director

Macallam Interim

e: enquiries@macallaminterim.com

T: 01423 704153

W: www.macallaminterim.com 

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

Growth in new assignments shows continuing demand for interim managers

The latest Ipsos MORI survey conducted by The Interim Management Association’s (IMA) of the UK’s leading interim management providers has shown a clear rise in the number of new assignments started  in quarter 3 2011, compared to the previous three months. The survey covering July to September 2011 reveals a 22% increase in new assignments, despite the challenging economic conditions.

The survey indicates that the private sector now accounts for 65% of all completed interim management assignments, up from 61% in Q2.  This share of private sector assignments completed by IMA members is at its highest level since Q4 2007 and appears to have returned to pre-recession figures.   

The number of enquiries received also grew in Q3, continuing an upward trend which sees enquiries rising by 68% from a low which occurred in the fourth quarter of 2010.  This is clearly encouraging news and confirms that activity levels have been increasing.

27% of requested assignment functions are from Special Projects (down from 29% in Q1 2011) followed by Finance (20%) for which the proportion is constant from the previous quarter. C-suite executives represent 8% of the IMA business in this survey.

The most common reason for an assignment is Programme/Project Management, with 36% of all interim executives hired for this purpose (up three percentage points from the previous quarter of 33%). Perhaps because this is a convenient label to give it?

Business Improvement and Change or Transition Management represents 15% and 14% of completed assignments respectively. These levels are relatively unchanged from the previous quarter, with the former unchanged and Change or Transition Management decreasing by one percentage point.  These figures are notably higher than the next most cited reasons. Interestingly Turnaround is surprisingly low but this has been a busy area for us with many assignments needing Turnaround expertise.

By Steven Wynne

Interim Management Sector continues to grow

The results of the IMA Ipsos MORI survey for Q1 2012 has some interesting findings including;

• Data highlights number of enquiries for interim managers is on the increase
• Sector continues to thrive in spite of possible threats from government PAYE proposals
• Women accounting for an increasing number of assignments

The number of enquiries for interim managers increased by 18 per cent in the first quarter of 2012 and the number of new assignments jumped by 20 per cent in the same period, according to the latest Ipsos MORI survey, conducted on behalf of the Interim Management Association (IMA), the industry body representing the leading UK Interim Management Providers.

Some other survey highlights include:
The average length of assignment was 152 days, compared with 173 in the previous quarter.

• Programme/project management was the most common reason for hiring interim executives, accounting for 36% of all assignments.
• Over half (53 percent) of private sector assignments were in banking and finance.
• Public sector business is dominated by local government - accounting for almost half (48 percent) of all public sector assignments.
• These findings confirm  continued growth for the Interim management sector and that it remains a practical, economic and speedy solution to organisations needing help with Change, Restructuring, Turnaround, special projects or to bolster their senior leadership capability.

However, we can’t ignore the threats that face the sector such as the possible changes to tax laws, which could require interim managers to go on to the payroll of companies that engage them, rather than operating  through a Limited company as a specialist in their area.  Whilst the Government plans to tighten the rules of ‘off payroll’ appointments at what remains a challenging time, it could threaten the value proposition of Interim Executives and the flexible resourcing solution that organisations can utilise to gain immediate results.

The survey also revealed female executives account for almost one third (31 per cent) of all the assignments, up from 24 per cent in the previous quarter.

Interestingly, given the recent press surrounding the small number of female executives represented at Board level following the Lord Davies review it is positive to see an increasing number of female interim executives being engaged on assignment and it seems to be a serious career choice for an increasing number of female executives.

By Steven Wynne