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

     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