The Age of Unreason - 20 years on

The Age of Unreason – 20 years on

Charles Handy is one of the World’s pre-eminent management guru’s, was one of the first to see the flaws in the ‘jobs for life’ concept and wrote about the importance of ethical business practice years before it became mainstream. After reading a recent interview with him, it dawned on me that Handy’s excellent book ‘The Age of Unreason’ was first published over 20 years ago (1989)!!

One of the concepts promoted in the book was that of the ‘shamrock’ organisation, where there would be ‘three leafs’ of worker consisting of, a core of permanent employees, independent contractors, and temporary workers.

Handy predicted that the intensity of competition and an increasingly unpredictable economic environment would result in the ‘shamrock’ approach becoming common place. The insightfulness of Handy’s prediction is truly remarkable as 20 years on many organisations are using the ‘three leaf’ approach to maintain a lean and competitive workforce. Handy referred to a “network of peripheral staff brought in to carry out specialist/project based work”, and these are the modern Interim managers of today, brought in to perform change management and other tasks.

The current recession has seen more flexibility in the work place than perhaps even Handy predicted, as workers have acted like butterflies, jumping from ‘leaf to leaf’. For instance, some employees made redundant have tried their hand at contracting and some experienced interims have looked at permanent roles due to diminishing interim rates. Employers have been swift to seize the moment and some have engaged rookie interims at half the cost they would be paying an experienced interim; with less than favourable results in many cases!!

But the fees some companies have been paying for Interim Managers seem unsustainable and as we come out of recession and unemployment falls (latest figures reveal 7,000 less unemployed) I expect that a more orderly ‘shamrock’ will return. That said, Handy has pointed out that the UK workforce will need to develop 'portfolio' lives, a mix of different bits and pieces of work, some for money, some for fun, some for free and it will be interesting to see if this resonates in 2010.

Which Interim Recruiters provide the best service to Interim Managers

Which Interim Recruiters provide the best service to Interim Managers

Leading Interim Management Jobs site, www.InterimManagementJobs.net, can reveal some interesting findings from their latest Interim Management Poll. The Poll surveyed 437 Interim Managers, who rated the service they have received from Interim Management Recruiters, based on a scale from one-to-five. Interim Managers were asked to rate the service they received based on the following criteria:

- What is your overall impression of the recruiter? - Did they maintain contact and keep you updated on your progress? - Did they understand what you were looking for in an interim assignment? - Did they understand the industry you work in?
Key findings reveal:

• 437 Interim Managers rated a selection of Recruiters they had worked with in the previous 2 years;
• Only Interim Recruiters with more than 15+ ratings were included in the results, with a total of 52 Interim Recruiters being rated;
• The company with the highest rating as voted for by Interim Managers was Capita Interim;
• Capita Interim received 122 ratings with an average score of 3.3 out of 5, voting them the best Interim Recruiter by a considerable margin;
• Capita Interim received the highest number of maximum scores, with 35.2% of respondents rating their service as a 5* (Excellent);
• The company with the second highest rating was Jarvis Johnson, with an average score of 3 out of 5;
• The Recruiter with the third highest rating as voted for by Interim Managers was Hutchinson Consultancy with an average score of 2.9 out of 5;
• The Recruiters ranking second and third are both Food Industry Interim specialists;
• The Recruiter with the largest volume of ratings was Michael Page with 138. Michael Page’s standing in the results table is 33rd out of 52 recruiters;
• Four recruiters who are members of the Interim Management Association made it into the top 12. They are: Interim Partners, Alium Partners and Campion Willcocks, and IMS Worldwide;
• Of the top 12 rated Interim Recruiters, 6 specialise exclusively in Interim recruitment, and the other 6 either provide both interim and permanent recruitment services, or are part of an organisation who provide permanent recruitment services.

The results reveal a surprisingly diverse mix of companies serving different markets and disciplines made it onto the list of the top dozen companies.

This includes niche companies operating within one sector only (Jarvis Johnson - Food, Hutchinson - Food), a company who recruit for one discipline only (Digby Morgan – HR), companies who only cover three-to-five specific sectors (Practicus, IMS, Campion Willcocks), a company who work only within the Public sector (Gatenby Sanderson), an organisation who work mainly within the Public sector (Capita Interim), and companies who cover almost any sector and discipline (Interim Partners, BIE, and Alium Partners).

Results ‘Premier League’ of Interim Recruiters

1 Capita Interim (Champions) - http://interim.capitaras.co.uk/interim/
2 Jarvis Johnson (Runner up) - http://www.jarvisjohnson.co.uk/
3 Hutchinson Consultancy (Runner up) - http://www.hutchinsonconsultancy.co.uk/
4= Digby Morgan - http://www.digby-morgan.com/
4= Interim Partners - http://www.interimpartners.com/
4= Practicus - http://www.practicus.co.uk/
7= Alium Partners - http://www.aliumpartners.com/
7= BIE Interim - http://www.bieinterim.co.uk/
7= Brooklands Executive - http://www.brooklandsexecutives.com/
7= Campion Willcocks - http://www.campionwillcocks.co.uk/
7= Gatenby Sanderson - http://www.gatenbysanderson.com/
7= IMS Worldwide - http://www.imsworldwide.co.uk/content/home.asp

A full ‘League Table’ with 'Four divisions' of results for all 52 Interim Recruiters featured in the Poll can be found on the Interim News section at: www.InterimManagementJobs.net

Can LinkedIn-Twitter deal help Interim Managers?

There is no denying the growing importance of Linkedin when it comes to marketing yourself to potential clients and networking with like-minded peers. It is therefore interesting to learn that LinkedIn announced this week that they have signed a deal with Twitter, to gain extra exposure for LinkedIn members. The idea is simple: when you set your status on LinkedIn you can now ‘tweet’ it as well, amplifying your message to followers on Twitter. Likewise, when you ‘tweet’ you can send that message to your LinkedIn connections as well.

This LinkedIn / Twitter alliance looks good on paper, as I suspect that LinkedIn doesn’t have the ‘younger’ (18-35) users that Twitter has, and I would guess that Twitter is lacking users in the 35+ age demographic, which is LinkedIn’s bread and butter. So the deal means both websites will be widening their reach which will enable them to increase their advertising sales revenue and reach a wider demographic.

It may be the zeitgeist for 2009, but can Twitter really help Interim Managers to network and find interesting assignments? Or will it be just another networking tool in a sea of networking tools?

Whereas LinkedIn is a fantastic ‘business’ networking tool, Twitter is a ‘social’ networking tool, and I think there should be some demarcation between social networking and business networking, otherwise the waters will become mudded and time will be wasted wading through page after page of non-relevant content. For this reason, I will not be ‘tweeting’ until the benefits become clearer.

Interim Market Conditions

A high profile business with a global client-base recently approached a Recruiter I know for assistance with making a number of appointments, ideally on a temporary basis, with a view to taking the best candidates on as permanent members of staff. They asked about market conditions and this is what the recruiter told them…..

“The interim / contract market has been slow for much of the year with downward pressure on day rates. There are still a number of good interims / contractors without work at the moment so employing good people on an interim basis shouldn’t present any problems, but these people are typically not looking to go permanent at £50k or below.”

Sounds like a reasonable assessment of the market in a nutshell.

From Prime Minister to Playboy, Cricket to Harley Davidson, Interim Managers are proving to be a hit in all sectors

The following high-profile Interim Management engagements show that Interims can make a significant contribution within any sector. A common theme in most of these assignments is the need for the interim to manage (or avert) a crisis.

Czech Republic

Czech President Vaclav Klaus appointed Jan Fischer as Interim Prime Minister in
April 2009. Despite being unknown to the vast majority of the Czech public, Mr Fischer, a 58-year-old economist, acted as Interim Minister and took the country to an early election. The Interim appointment has helped draw a line under the crisis caused by the resignation of former Prime Minister Mirek Topolanek.

Playboy Enterprises

When Christine Hefner announced (Dec 2008) her intention to step down as Playboy Enterprises Chairman and CEO, the board stated that they would be looking to find her replacement as soon as possible. In the meantime they appointed Jerome Kern, a long-time director of the company, to serve as Interim non-executive chairman. Kern made no secret of his desire to replace Hefner on a more permanent basis, but lost out to Scott Flanders, who took over as CEO from Hefner. As interim non-exec chairman, Kern had said that the company was "willing to listen" to acquisition offers and was said to be deeply disappointed on missing out on the top job. As the ‘inside man’, Kern was favourite to land the CEO job and he quit the company not long after Flanders was appointed, stating that he left the business to "pursue other business opportunities." To further demonstrate the popularity of Interim Management, Scott Flanders replacement at Freedom Communications was another Interim Manager/CEO (media veteran Burl Osborne).

Harley Davidson

Sometimes the ‘inside man’ does get the job, and this happened at American motorcycle manufacturer Harley-Davidson when they announced in September 2009 that Interim CFO John Olin would be appointed Senior Vice President and Chief Financial Officer, after he served as interim CFO since May 2009. Olin will be in charge of all Harley-Davidson financial and treasury operations, as well as with investor relations, aviation and information systems. Olin has more than 25 years of experience in financial leadership. Before joining Harley-Davidson, Olin served for 12 years in various domestic and global financial roles at Kraft Foods, Oscar Mayer Foods and Miller Brewing Company; he also served as controller of Kraft Foods' cheese division.

The Pakistan Cricket Board (PCB)

Cricket is the number one sport in Pakistan and it was big news when the Pakistan Cricket Board (PCB) appointed Wasim Bari as its Chief Operating Officer (COO) on an Interim basis, a day after Saleem Altaf was sacked from the post. A PCB spokesman said Bari, a former Pakistan Test cricketer, will work as the Interim COO until the post is filled on a permanent basis. It was believed that Saleem Altaf had fallen out with PCB chairman Ijaz Butt due to differences on key administrative issues. The PCB sent a termination letter to Altaf stating his services were not required by the board anymore. However, Altaf claimed he had not received any such letter. "I will certainly consider going to court if any such letter is sent to me," said Altaf, himself a lawyer. Altaf had previously been sacked by the PCB and later reinstated, but sources at the PCB said Altaf is unlikely to earn a reprieve this time as his termination letter has been signed by the PCB governing board members and his Interim replacement ratified.

Newcastle United Football Club

The appointment of Joe Kinnear as Interim Manager of Newcastle United FC in September 2008 raised eyebrows in Premier League circles, as Kinnear had not managed a club since being sacked by Nottingham Forest in 2004. Kinnear was expected to be in the high pressure job until the end of October 2008, but when owner Mike Ashley failed to find a buyer for the club Kinnear was asked to stay for the season but left the club in February 2009 due to ill health and a triple heart bypass soon followed.

JJB Sports

When Sir David Jones was appointed Interim Executive Chairman of JJB Sports in January 2009, not even he could have predicted just how difficult a job it would be to save the ailing sportswear giant. Amidst alleged mismanagement of the previous Chief Executive, one of the first tasks Jones took on was to sell the companies two (yes two!!) helicopters. Several months later, and with the business on the tentative road to recovery, Jones describes his assignment with JJB as “the biggest challenge I ever faced”.

Having witnessed the virtues of Interim Management first hand during his 30+ years as one of the UK’s most prominent businessmen, Sir David now supports other companies seeking to recruit Interim Managers, through his role as non-Executive Chairman of Interim Service Provider BCMP Interim.

Johnson Services Group (Johnson the dry cleaners)

Late in 2007, John Talbot was drafted into Johnson Services Group as Interim Chief Executive, when the former boss Charles Skinner resigned after Johnson breached its banking covenants. The ‘turnaround’ specialist from Kroll persuaded lenders to extend credit and raised £82.5 million from selling Johnson’s corporate wear division, but scrapped the sale of other divisions including Hotel supplier Stalbridge Linen. Talbot is now the company’s Executive Chairman.

Committee on Standards in Public Life

Back in May 2007, Rita Donaghy took over from Sir Alistair Graham as Interim Head of the Committee on Standards in Public Life. The committee is a non-departmental public body set up to examine concerns about the standards of conduct of all holders of public office. Donaghy stood down from the Committee at the end of 2007 which is fantastic timing given the subsequent MP’s expenses scandal and Baroness Scotland’s employment of an ‘illegal’ worker, which will keep the committee burning the midnight oil for the foreseeable future.

Jurong Technologies Industrial Corp

Facing crippling debts of US$200 million, Deloitte & Touche appointed Mr Tam Chee Cheong as Interim Judicial Manager to Jurong Technologies in Feb 2009. The Interim appointment followed an application by creditor banks. Jurong Technologies said that it welcomes Mr Tam's appointment and will provide him with the requisite support to enable him to have an expedited understanding of the group's operations. At least seven banks have demanded repayments of loans amounting to more than US$200 million. Mr Tam helped the business extend judicial management orders and renegotiate with creditors. Despite the debt, the company is still trading as at September 2009.

Credit Suisse

During the midst of the ‘credit crisis’, Credit Suisse announced that its Investment Bank CEO, Paul Calello, would be stepping down after it emerged he was receiving intensive medical treatment for a sudden and unexpected illness. Following this unexpected announcement, Eric Varvel become the Interim Investment Bank CEO. Credit Suisse’s CEO Brady W. Dougan has stated the firm’s support for Calello and thanked Varvel for stepping in on an Interim basis.

5 Tips to get more work as an Interim Manager

5 Tips to get more work as an Interim Manager

1.) Respond to the Market need

We are in a downturn and many companies are shoring up their defences and focusing on the basics like retaining existing customers, improving cash flow and reducing costs. In response to this, Interim Managers need to tailor their CV’s accordingly and emphasise experience such as reducing costs or improving cash flow. When we return to more ‘bullish’ times, interims can amend their CV’s to cover skills that are currently not required, such as creativity or the ability to develop a new product.

2.) Form Alliances

The old adage ‘the whole is worth more than the sum of the parts’ can ring true within interim management. The spice girls sold more records as a group than they did as five individuals, and interim managers can potentially pick up more work as part of a collaboration. Hook up with two or three interims with complimentary skills and form an alliance. This way, your service offering is greater, as is your knowledge and networking capacity. You can also split the costs of marketing your services with the other members of the alliance. Such an alliance, may enable you engage in opportunities that may not be available to you as a sole interim manager.

3.) Demonstrate your Achievements in ‘hard cash’

Detail your achievements in previous assignments in pounds shillings and pence. An MD seeking to engage an interim is likely to be thinking, “will this person save my business money?” If you have documented evidence showing that you have implemented initiatives or projects that have saved similar businesses money, they are more likely to have the confidence to take you on. A reference will state that you can perform a required task, but documented evidence detailing financial results/savings is a much more powerful tool to land you the assignment.

4.) Stick to what you know

If you are an experienced Interim Manager, take some time to review your last 5 assignments and see if there is a pattern to: The type of work undertaken, The type of client company and, Their industry sector. If a pattern exists, for example, if 80% of your work has focused on ‘change management’ within the Oil & Gas sector, then focus your time on finding more of the same assignments. You know the assignments are out there as you have been engaged in them, so contact same-industry companies and don’t be afraid to name drop. If you have worked previously for similar companies in the same sector, then say so. This will give confidence to a company seeking an interim manager and you are more likely to be taken on, as the perceived risk is reduced as you have already successfully completed an assignment for a similar company in the industry. Also, join Groups on networking website such as LinkedIn that cover both Interim Management and the Industry Sectors where you have been engaged in most of your assignments.

5.) Say no and use your network

If a former client calls you and offers you an assignment that you are not fully qualified to do, there is a temptation to say yes. Resist this temptation - even if you are actively seeking an assignment. The reason why the client is calling you is because you did a great job for them last time and you have a good reputation. Your reputation would take a dent however, if you took on an assignment that others were better placed and more qualified to fulfil. When you turn an assignment down, explain your reasons and your reputation will grow, as the client will appreciate your honesty. If you are to turn an assignment down, don’t give up on the assignment. Use your Interim network to find someone who may be qualified to take on the assignment. It is important to have a reciprocal relationship with other interim managers within your network, where you can refer work onto each other. This can be an excellent route to finding an assignment as you are being ‘recommended’ to the client by a trusted source.

‘Pro Rata’ – The current curse of the Interim Manager

‘Pro Rata’ – The current curse of the Interim Manager

The marked increase in interim management assignments offered on a ‘pro rata’ basis cannot of gone unnoticed to any interim manager currently looking for an assignment.

With a glut of suddenly redundant staffers offering themselves up for interim work, many employers are taking the cheaper option of engaging a recently displaced employee on a ‘pro rata’ basis, whereas in more austere economic times they would have chosen an established interim manager.

Are companies sacrificing quality over cost by taking the cheaper option? Are organisations underestimating the value that a credible and experienced interim manager brings to the party?

In my opinion, engaging an established interim manager is a totally different proposition than putting your trust in someone who is only there due to enforced redundancy.

An experienced interim manager brings gravitas and an understanding of how to get things done learnt through interim experience of different corporate cultures and working environments. To an established interim manager their reputation is everything and they bring a commitment to successfully deliver as they know failure will affect their credibility and make it difficult to land their next assignment.

Engaging a recently deposed employee on a ‘pro rata’ basis may be cheap, but will they have the same level of commitment? Will they be off at the first whiff of a permanent job? Will they be bothered about delivering if they don’t see interim as a career move? Are they only taking on the interim assignment to pay the mortgage, or until something better comes along?

Offering a ‘pro rata’ salary is a genuine risk as companies are not going to attract the best candidate for the assignment, as an established interim manager will typically charge a daily rate equivalent to a third more than the pro rata rate. So going ‘pro rata’ may provide some ‘jam today’ for a beleaguered business, but in the longer run (if a project is not delivered) it is likely to heap more pressure and financial strain on the business.