Ready for the upturn? Now’s the time to get some interim assistance
By Jeff Addison
Courtesy of Asset Finance Europe March 4, 2010
Interim Managers (IM) are traditionally used in times of distress. Following the last recession in the early 1990s IM saw valuable service in the European asset finance sector. Their objective has been to cover the unexpected, the sudden departure of a senior executive or to “hold the fort”.
But today, Interim Management has evolved to the extent that experts are available to cover an even wider and diverse range of roles and specialist areas. Right now new business development is one of the most important.
Some parted company
During the depths of the recession many asset finance businesses parted company with senior people (and roles) at the vital customer interface. They are now wistfully wondering how to find the resources to re-energise the front end for growth. As the industry gears itself up for an improvement in the economic environment, and looks more keenly at new business opportunities, IM in sales, marketing and development roles suddenly seems an attractive proposition.
As companies have come to appreciate the benefits of using IMs, they are now making greater use of them on a planned basis. Especially since finding within an existing team the appropriate skill set to undertake an ambitious development plan is often a big challenge. Furthermore, waiting for an existing individual to “grow” unto a new role may put a project so far behind as to be unworkable. Although the generic term is “interim manager”, many of the assignments are at director level reflecting the quality of the talent introduced.
The use of IMs enables companies to improve their competitiveness without incurring high permanent fixed costs and by bringing in specialist skills as and when they are needed. IMs can be attractive to clients for numerous reasons; experience, proven success, speed of response, flexibility, accessibility, independence, objectivity, focus, resourcefulness and enthusiasm – to mention just a few. The ability to be “up and running” immediately is a significant asset especially when activating urgent development plans.
Source of fresh views
Some IMs offer general advice and support or serve as a sounding board. They can be an important source of fresh views. In times of crisis they can guide the management team through difficult decisions.
Engaging an IM might be thought expensive but securing the right person for the job – a prime consideration – will mean that the cost is repaid frequently many times over, making it a wise investment. With an IM the company has a fixed overhead. He, or she, is contracted to deliver a fixed assignment for a fixed fee and fixed duration. Straightaway, the company receives the benefit of the IM’s experience and skills. The fees charged for an IM represent excellent value when flexibility and the comparative cost of permanent employment (and all that entails) are brought into the equation. They do not need a learning curve and can start to contribute right away and make an early impact or deliver results.
A fresh, unbiased view
An IM can provide a fresh, unbiased view and is focused on the objective set. Properly trusted and taken into management’s confidence he is impartial and his assignment of the business may prove invaluable. Indeed, he may be the only person that management knows who has previously undertaken such a task or project. IMs are often part of a team of multi-skilled professionals with a pool of talent that can add additional value to the hire where necessary.
Being results driven, an IM is as motivated as the company to achieve the desired objective. Asset finance businesses that leverage their ability to tap into management talent on an interim basis are now realising that this may help give them a competitive advantage and put them ahead of the game in meeting their ambitions and seizing the post-recession opportunities. They appreciate the simplicity of the contract and value the IM’s relevant experience and focus on delivery.
Jeff Addison is a principal at The Alta Group jeffaddison@thealtagroup.eu.com
