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.

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.^[2].

The Interim Management Value Proposition

There are several factors that make the Interim Management value proposition 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:^[3].

1. Return On Investment. Interim Managers provide an outcome, solution, service or risk mitigation that provides a measurable ‘Return On Investment’ to their clients. While Interim Managers are typically paid on a ‘day-rate’ basis, such payments continue to be made 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 (essential when time constraints are paramount). They are quickly effective upon joining a client organisation because high-speed engagement has become practiced. Interim Managers also conduct and complete assignments at due speed because they have the necessary expertise and effectiveness to do so.
3. Expertise. Interim Managers will be sensibly over-qualified for the position they are taking on and bring the knowledge and expertise to have an immediate effect and be productive from the outset. They will also have seasoned past experience of similar challenges to the ones they are about to face, minimising the risk of things going wrong and, more importantly, maximising the likelihood of success.
4. Objectivity. Unencumbered by any previous involvement in company processes or management relationships, Interim Managers provide a fresh perspective and are able to concentrate on what's best for the business. Interim Managers are able to side-step company ‘politics’ and contribute straight-forwardly without constituting a threat to incumbent managers.
5. Accountability. Rather than taking on a purely advisory role (as a management consultant would), Interim Managers are responsible and accountable line managers who will implement and manage a business or project in their own right. By being instrumental in an assignment’s successful delivery, they give clients the peace of mind that the Interim Manager has immediate 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 commit to the assignments they have undertaken, so that clients need not be concerned that the Interim will walk away to an alternate permanent position. Interim Managers typically perform a succession of different assignments and maintain high professional standards because their future work relies upon communicating and marketing a successful Interim track record.

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

• Institute of Interim Management
• Interim Management Association Institute
• Professional Contractors' Group

Notes

1. ^ Britannica Online Encyclopedia, 'Publican' 19/11/2009
2. ^ Clutterbuck, David; Dearlove, Des; (1999), The Interim Manager, pp. 20-21, ISBN 0-273-63293-0
3. ^ Institute of Interim Management, Introduction to Interim Management (2009). http://www.ioim.org.uk/WorkAsAnInterim/index.asp 19/11/2009