Potential interim managers face a necessary dilemma
ACCORDING to the Interim Management Association (IMA), the UK has the most established interim management sector in the world, worth £1.5bn per year. Established and growing – business generated by interims affiliated to the IMA increased by 93 per cent in the last five years, to £196m. Interim managers are executives with superb records of achievement, and firms in all sectors hire them on short-term contracts to solve specific problems, manage change or resolve crises.
Interim positions are also attractive for executives. Raj Tulsiani, chief executive of Green Park Interim and Executive Search, says the “marketplace starts at around £600 per day and goes up to around £3,000 per day at the most senior levels.” Money is not all. The character of the work gives interims professional challenge, variety, flexibility, and a break from corporate politics. So what is the dilemma?
SHIFTING SANDS
Despite being a strong sector, a step into interim management as a career can be fraught with risk, often unlinked to general employability. Tulsiani highlights two ways individuals can be affected. Firstly, “unlike permanent roles, interim managers are priced against fluctuating market rates.” Even if your experience is excellent and your ability good, you’ll always be more exposed than permanent employees to market changes. Secondly, as interims work on short-term contracts, the length of time between assignments can be long if demand is low. Tulsiani has recently seen “the longest periods of time between assignments in my 15 years’ experience of the market.”
Interims must therefore be content with uncertainty. However, Nigel Peters, managing director at Alium Partners, a specialist provider of interim solutions, suggests that this isn’t a reason to avoid the career. Uncertainty is the other side to “seeking a different challenge” and risk a counterpoint to “preference for a flexible contracting environment.” Interims aren’t holding down cosy jobs for life, but risk is a holistic part the job’s character – and often part of the attraction.
CREATING CERTAINTY
All this means that interim managers must work hard to differentiate, market and adapt themselves to employers’ needs. And the challenges involved are quite different from applying for a permanent role. Interims are effectively small businesses, with all the pressures this involves. They can, however, get assistance.
The Interim Management Association is the professional body for the sector. It runs a series of monthly induction workshops which, according to its chairman Jason Atkinson, “are designed to help people decide if interim management is right for them and, if so, how to approach the market.” The workshops flow from a commitment by the IMA to launch a new industry standard. And being associated with this standard, through a connection with an IMA-approved recruiter, can provide extra credibility to any interim business case.
Using a dedicated recruiter is essential. Interims gain a professional reputation through their successful completion of previous assignments, and it is important that those assignments suit the ability and career ambition of the interim. Failure, or walking away from a task, can indelibly mar the interim’s ability to find another position. A recruiter who understands what you want, and what you can realistically achieve, can reduce the risk of permanent credibility damage.
CAN I ENTER, CAN I LEAVE?
By the nature of the role, interims must be capable of completing a specific task for a business, but demand for expertise changes. Not all knowledge is equally useful, and some problems can be more effectively solved in-house.
As such, a potential interim should work out whether his or her skills are of use. Peters says that highly-regulated areas of finance often require interim solutions, and there is a specific need for those with the professional expertise to drive through complex regulatory change. Also, Tulsiani says that “premiums exist for business transformation leaders, and those who can create cost savings through smart sourcing and capital management.”
Deciding whether to enter the interim market, therefore, should be a dilemma. It is not an easy career choice, the risks and difficulties involved are considerable, and the lack of an permanent, supportive structure around your role may be hard to accommodate.
But for those with experience, ability, and a stomach for risk, a career in interim management could be an interesting alternative to the corporate structure. Just make sure you’re ready.