In the interim

Interim management has become a fast-growth phenomenon which has swiftly gained the approval of none other than celebrated business mogul Sir John Harvey-Jones, the Confederation of British Industry, the Institute of Directors and the Chartered Management Institute. However, although widely adopted as a management technique among many blue chip concerns, it's still possible to ask the majority of the great and good in the security sector and the City and they will not have a clue what you're talking about.

In both the private and public sectors, interim management is really all about bringing in experienced specialists – whether in security, finance, sales, production/purchasing, Human Resources or Information Technology (IT) – on short-term assignments to handle major change, reorganisation or the introduction of new technology. Or, more importantly perhaps, to improve bottom line performance.

Interim managers are a special breed: men and women with a track record of working at major companies, or they may have sold their own successful business and now prefer handling shortened engagements of weeks or months rather than a permanent role. They are in demand from large, medium-sized and small companies alike. Companies that perhaps lack spare management talent to cope with organisational change.

Traditionally, change and problem-solving were the prerogatives of management consultants. If you wanted to merge two offices, integrate a new acquisition or introduce updated IT or production systems, you shipped-in a recognised consultancy. Unlike management consultants – who for the most part diagnose problems and prescribe solutions – interim consultants are hands-on managers committed to delivering results.

Interim managers see themselves as small businesses. Self-promotion/marketing and a portfolio of prior assignments successfully completed are the basis for winning new projects. A large proportion of assignments also arise by way of specialist agencies or providers. Those concerns frequently using 'interims' report that the success of an assignment depends almost as much on the provider or agency as it does on the manager.

In simple terms, the provider has to know the interim manager's exact strengths and track record. The agency should also help clarify objectives and terms of reference, negotiate fees and contract terms and keep in regular touch throughout the assignment. 'Matchmaking' – ie 'chemistry', personality and 'fit' – must always be absolutely right.

Interim security management
An interim manager for the past 12 years now, Bill Duncan is adamant that he thrives on the challenge and variety of the task. "If companies in the security industry and their client base weren't quite so insular, they could really benefit from bringing in more outside experience and expertise," states Duncan.

With a background in IT, finance and general management, Duncan has handled a variety of assignments as an interim manager – including projects at BET and the Shorrocks Group (now part of Rentokil Initial, of course) and latterly with Security Information Systems (the wholly-owned IT division of Securicor Security).

Indeed, it was at Securicor that Duncan was recruited by David Williams, the company's director of managed services. Williams takes up the story. "We were undergoing significant reorganisation and needed the right person to help push it through. I've used interims in the past, as and when they've been required. They're ideal when you're going through a process of change, which can be painful. One of the advantages of bringing in outsiders is that they're not in post long enough for them to become embroiled in any internal politics."

In its latest study, Russam GMS – a leading agency provider of interim managers and directly responsible for a quarterly interim market 'snapshot' survey – offers a breakdown of professional disciplines most in demand. This shows finance in the lead (with 22%), general management next on 18%, IT with 16% and Human Resources weighing in at 12%.

The survey also found that the daily fee rate earned by interim managers specialising in the manufacturing and engineering sectors, for example, was £377, for IT specialists £550 and financial specialists £499. If those figures appear to be a tad on the high side, it's worth noting that there are no extra costs such as car, pension, holiday pay or insurance – all of which can add well over 50% to the salary of a comparable company executive.

Most interim managers are registered with two or three service providers. They thrive on the challenge and variety of assignments, and find enough of them to take up 70-80% of their full working year. The downside is that they can never be sure where and when the next assignment will be. After waiting for several weeks, they may suddenly find three job offers on the table at the same time.

The question remains: why do more businesses hire interim managers? According to Charles Russam, chairman of Russam GMS, it "involves no commitment beyond the specific contract for the task in hand. It's a negotiated agreement between the parties. One in which the service is deliverable for a price, and within a given timescale."

Russam continues: "More companies, both large and small, are now looking at all of their resourcing needs from short, medium and long-term perspectives. Many senior job functions can be approached on an interim basis in this day and age. Consider how long, or short, many permanent positions really last."

Bringing in an experienced interim manager, some companies point out, involves no recruiting cost and uses the relevant skills only for the duration of the project. Often the chief benefit is that it can help lessen the risk or the cost of over-runs in new business development.

The pitfalls of the process
What about the pitfalls of all this? "If you pay a premium rate you expect premium performance" is what one managing director told SMT. "If the interim manager doesn't perform then it has to be goodbye. The onus here is very much on the provider as a super matchmaker. If you make your own choice direct, check the track record. Not the last 20 years of big name-sounding positions with important companies, some of which are no longer there, but their track record of the last few years as an interim management specialist. Then, you need to double-check with immediate past clients that performance was really as good as has been claimed."

Nigel Espin – a former general manager of Rover with responsibility for security of Rover Group operations worldwide until BMW sold the company – recently set up on his own as a consultant/project/interim/manager, and has since carried out a range of top-level, short-term assignments. Since last October, he has acted as the security manager for an American company specialising in surgical and medical equipment, with warehouses and distribution facilities right across Europe.

For the interim or would-be interim tempted by the lifestyle and the rewards, self-marketing and operating as a serious small business is often the key. A good deal of hands-on experience and a proven track record is vital. It’s not for the faint-he

Espin firmly believes that there's plenty of scope for interim or project managers in the security market working in operations rather than security risk management – projects in finance, personnel and IT. "Obviously, if they're used in a sensitive environment then they'll need to be properly vetted," added Espin.

Stretched to the absolute limits
One factor behind the growth of interim management is that downsizing has left many organisations stretched, and in desperate need of experienced executives for short-term assignments in order to cope with peaks and troughs, solve problems and implement solutions. There remains some doubt as to whether bringing in an interim on a short-term contract can really help with fundamental – and longer term – problems. Can an interim really be concerned with longer term effects once the assignment is concluded?

Regular users of interim managers argue that because the interim is often an agent of change, the assignment is designed to create longer-term benefits.

Industry's recognition of interim management is now such that when specialists with a track record are needed for short-term appointments, women are enjoying equal opportunities alongside men (notably in such areas as IT, logistics, marketing and general management). Indeed they should.

For women, a key advantage is the flexibility on offer in being able to select assignments which allow for school or family holidays. Interim management really suits women with a professional background who wish to return to work after a career break to have children.

For the interim or would-be interim tempted by the lifestyle and the rewards, self-marketing and operating as a serious small business is often the key (for example, working with two or three reputable service providers/agencies and building and maintaining your own client contacts). A good deal of hands-on experience is vital, as is being prepared to work 12 hours per day. It's not for the faint-hearted!

Manage change for good performance
In many industries, the concept of assignment-based interim executives is now recognised as an ideal resourcing option: a way of managing change, improving performance, closing or disposing of unnecessary subsidiaries or starting/integrating new ones. Interim executives are brought in not simply to maintain the status quo, but to deliver the required results.

The practice of appointing these quality executives at a senior level, mostly for periods of a few months, has spread rapidly during the past five-to-six years, and is continuing to gain momentum. In the 1980s, many companies – in particular the larger corporates – still had an excess of senior personnel for one-off emergencies and projects. However, since executive staff levels have been de-layered and downsized, these people no longer exist within company 'walls'.

In the security market, as in many others, today's executives are stretched. There's no slack. So where do you go to find an objective, 'heavyweight' manager to sort out your corporate crisis, buy you time or take control of an opportunity?

Consultants are always an option, but they're rarely familiar with carrying out a chief executive or functional-style role. Calling in a traditional headhunter is another possibility, but their systems are geared towards finding permanent placements, and very often a different profile is required for the immediate situation.

Hitting the ground running
'Headrenting' or interim executive management offers immediate access to people who are sufficiently qualified and often over-qualified to do a specific job without a learning curve. They can, as the saying goes, 'hit the ground running' – bringing a huge amount of experience and objectivity from a wide variety of previous assignments to the security task at hand. Once their job is done, the interim manager simply moves on to the next 'mission'.

During the past couple of years interim managers have become a far more familiar sight in local Government offices, the National Health Service, the Treasury, the Department of Trade and Industry, the Northern Ireland Office and a host of other Government agencies.

Interims are very much a part of the modernisation agenda, brought in to introduce and implement, for example, private sector techniques within public sector services.

There is also now a wider understanding of the role of interim managers as being the trouble-shooters, cost-cutters and installers of new systems and procedures, or as definers of executive security roles in new or reorganised agencies prior to the establishment of permanent appointments.

Achieving critical mass
What interim management seems to have achieved is critical mass. There's some evidence to suggest that more senior executives are looking to take up interim management as a career option, and are prepared to step out of continuous employment to do so (even if it does mean a change of pattern to their working life).