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Interim Management


What is Interim Management?

Interim Management is the provision of highly qualified senior executives and managers, on a short-term basis to rapidly and effectively manage a business need or specific change project. It is increasingly acknowledged as one of the most flexible and immediately effective resourcing solutions for instant access to top talent and a powerful alternative to traditional resourcing and consultancy solutions.

Growing at up to 20% per annum and expected to reach £420 million by 2005 the demand for Interim Managers is being driven by the need among organisations for someone who can drive through change by managing business critical projects.

Interims are dedicated to their full-time profession have knowledge of how to approach problems, coupled with an ability to quickly become productive in demanding situations.

An increasing number of successful business professionals who thrive on variety, on delivering value, on complex organisational challenges and on situations requiring the management of change are choosing this profession.

The role of the Interim Manager

Typically hired for 3-9 months and hand picked for their relevant industry and issue specific experienced they work within the structure of your organisation, either as a functional manager or to undertake a specific project, manage transition, crisis or change within a company. A large percentage of Interim Managers will be comfortable providing strategic advice and then take responsibility for implementing this. This differs from the role of a consultant who will produce reports and provide advice but not work within your organisation to implement these ideas.

Interim Managers bring on board specialist skills that can challenge traditional practices and implement new service initiatives.

Interim Managers can operate at all executive and management levels in senior line management, specialist or project positions. They add most value when used as a strategic solution to HR resourcing rather than a tactical stopgap.

When might an organisation use an interim manager?

When scarce skills are need for specific projects

  • Programmes requiring change (Restructuring etc.)
  • Programme and Project management (evaluation, recommendation and implementation)
  • Departmental improvement - e.g. performance management
  • Crisis Management
  • Business critical IT projects (such as installing a business-wide ERP solution).

Strategic role

  • Top level Budgeting, forecasting and strategic planning
  • Business Planning
  • Mentoring and team development

Staff cover

  • Gap Management
  • Short-term manager
  • Recruitment difficulties

Benefits of using Interim Managers

Clients increasingly recognise the value of experience and objective input. Whilst assignments do still encompass "holding briefs" more and more they include tougher objectives, especially where skills may not exist in-house or are scarce.

  • Cost effective access to top management skills within a few days
  • Interims are usually over qualified for the role and focus on achieving results on time and within budget
  • Minimum of recruitment issues or termination formalities - tax, pension etc
  • Interims bring huge experience and transfer skills and experience to your team
  • Interim Managers can take full ownership and responsibility for implementation
  • Interims have past experience of similar challenges to the ones they are about to face
  • Professional indemnity insurance cover of Interims
  • As external specialist committed to your results, Interims bring an independent perspective to management

Departments often turn to Interim Management when they need to complete a specific project by a definite date or when they need an experienced and mature manager to fill a gap in their management team.

Customer Guidance - Procuring an Interim Manager

What the service providers offer
A good interim service provider will meet and interview all Interims and reference them by their skills and experience within specific fields. Interim Management service provider's effective selection process ensures that you are provided with the closest possible match necessary to achieve your business goals. Candidates will be fully briefed about your requirements.

How long does it take to hire one?
Typically each service provider will present up to three suitable interim professionals within 72 working hours, with the chosen Interim Manager normally able to commence work as soon as your interview process is complete.

Before choosing a provider
The difference between obtaining Interim Management and other S-Cat services is that this is a two-stage process where you first choose the service provider and then choose an individual Interim by interview. Before you hire an Interim Manager there are a number of aspects you should determine beyond the service providers margin.

Your specific requirements

  • Identify your need and evaluate the parameters and success factors of the task.
  • Decide the calibre of person you want and the qualities and skills you are seeking.
  • What are you trying to achieve that could be best done by an Interim Manager
  • How important is it that an interim understands your corporate culture
  • Examine your motives for choosing an interim manager
  • The style and personality of the interim you want.

Choosing a Service Provider

  • Does the Service Provider have experience in the interim market place?
  • How does the Service Provider select its interims, are references validated etc?
  • What percentage of applicants is accepted onto the Service Provider books?
  • Are Interim candidates fully briefed and available immediately

Be prepared to state a likely level or even daily rate to service providers to give an idea of the Interim's level of experience and ability you are looking for. Alternatively you may choose to state the deliverables rather than the competencies or the hierarchy of the relevant department and the Interim's future position within it. It is usually an advantage to meet with the service providers and discuss the your particular requirements.

Likely contract issues
Please be aware that you may need to decide on special terms and conditions that may form part of the specification, for example any termination clauses that you may wish to introduce. These should not substantially alter the terms of S-Cat and should equal from both parties. The terms relating to Interim Management can be found in the new S-Cat Terms and Conditions and will apply in conjunction with the other relevant terms.

Please note that IR35 does not apply to Interim Managers who themselves are providing a service as part of a limited company.

Shortlist
At this stage you will have a shortlist of Interims from one or more service providers comprise a recent CV(s) and an assessment as to why each candidate is suitable for the assignment

You will need to ensure that each prospective candidate understands the key tasks and the scope of the work that needs doing. Some service providers will offer to brief their candidates themselves, although this could lengthen the procedure a little. In order to minimise losing preferred candidates to other businesses, we suggest that time is set-aside in the diaries of the interviewers and a firm start date agreed at the initial briefing. Most skilled Interim Managers are in high demand.

Attached to the contract will be confirmation of the project brief. It is the interim's job to make it happen.

Interview
You may interview as many or as few candidates as you wish and have involvement of the service providers if you feel this is appropriate. Once you select a candidate and confirm the daily rate with the Service Provider they will draw up and send out individual contracts for signature

The deal
The Interim has no direct contract with you, they are contracted to the service provider and the service provider is contracted to you. However, key individual clause in S-Cat gives you rights should the Interim you choose not be able to personally complete the assignment.

Should an issue arise, you should contact the Service Provider directly. They are there to assist you.

During placement
Throughout the assignment the service provider should keep a watching brief and maintain periodic contact with the hiring manager and the Interim Manager to ensure that the assignment proceeds smoothly.

After the assignment
After each assignment service providers should meet with the department to understand the success of the assignment, the learning points for future assignments and to take a reference on the Interim Manager.

The provider also talks to the interim manager to understand more about the department and can feedback valuable information to you if applicable.

Interim Management Vacancy Board

This will give departments the opportunity to post their vacancies to get a quick response from those Interim providers who have available Interims in the relevant area. Service providers will express their interest only unless you request detailed information of Interims. Please note your e-mail address will remain confidential.

Pricing

How do I cost an Interim Manager?
How much would you expect to pay someone with the same skills and experience on payroll? For example if you had used a Consultant to fulfil your requirements

Interims offer the dept a fixed overhead. They are contracted to deliver an assignment for a fixed cost and duration and will be focused solely on the job you want doing. Departments get instant experience and a capability higher than the job requires.

You pay an inclusive fee for an Interim Manager plus travel and expenses where appropriate, there are no other costs. Therefore you do not have to pay NHI, pension, holidays, sickness, re-location, PAYE, recruitment costs, redundancy etc. The dept only pays for days worked whether this is five or two days a week.

The daily rate they charge depends on their technical area of work, their experience, current market trends and their personal situation.

S-Cat Interim Managers pricing

Service Providers have given details of the mark-up they charge for their services. This mark up is the percentage that the service provider adds on top of the Interim Managers daily rate to cover the interview, search, administration and employment issues that may arise. This is shown under the service offerings of suppliers in the Interim Management section of S-Cat.

The daily rate of the Interim Manager will depend on the area of business, their experience and skills, the relevant market conditions and their individual circumstances.

The actual price you will pay will be a combination of the Interim's daily rate and the service provider's percentage giving a fixed daily rate. This figure will be variable between suppliers.

I.E.
Interim's daily rate Supplier's mark-up Price you pay per day
£400 25% £500

As a rough guide, you can estimate the annual salary of the role if it was to be made permanent; the daily cost of an interim manager is generally about 1% of that annual salary

E.g. Director annual remuneration of £80,000. Total daily Interim rate charge of £800.

However, reductions to this rate have been offered by Service Providers under S-Cat and you may pay less. You may also get a discount for longer assignments.

If necessary Interim Management service providers will assist you in the job of finding the right Interim for your budget.