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The Interim Report:
Research and Analysis on the
European Interim Management Market




Europe Survey Report
Contents

                                                 Page
Introduction                                      1
Research Objectives and Methodology               2
Defining Interim Management                       2
Current Trends                                    3
Interim Manager Profile                           6
Interim Management Billing Rates                  9
Sourcing Interim Management Assignments          11
Type of Agency                                   12
Drivers of Interim Management Engagement         13
Most Important Qualities in an Interim Manager   16
Client Data                                      17
Conclusion                                       18
Introduction

The pressure on companies today to deliver results quickly and at reduced cost has only
increased amidst the challenges of the global economy. Recent economic conditions have
brought about headcount reductions, hiring freezes, outsourcing, and reorganisations that
simply exacerbate existing pressures. Optimal resourcing is always a corporate priority, but
perhaps never more so than today.


In our business, we have seen the number of managers and executives registered with us for
interim work rise from a few thousand in the UK in 2000 to over 100,000 globally today. We
observe significant differences in the recognition and adoption of interim management by
country, and even by region within each country. In some markets – the United Kingdom,
Belgium and The Netherlands for example – interim management is a well-established way of
working, and of sourcing executive talent. In Southern European territories and Asia Pacific,
the concept is at an earlier stage of development that shows much promise. Variations in
terminology, contract structure and local employment law make global interim management a
diverse and compelling field for study.


Reliable information about growth and trends in the field of interim management has not
always been readily available. Back in 2000, Executives Online worked in conjunction with the
Institute of Management Consultancy to commission a study with Sambrook Research
International on the interim management market in the United Kingdom. The Sambrook Report
on UK Interim Management was published in 2000. In 2004 and 2006, respectively, Executives
Online published In the Interim and the first edition of The Interim Report. In 2007 we updated
The Interim Report with new information, and in 2009 we published Interim Management
Trend Update.


Now in 2011 we have undertaken a new survey to keep abreast of the trends in this fast-
moving arena. We are excited to share this new information with you, and hope that it will
address questions you might have regardless of your perspective: as an interim manager
yourself, as a company that has found great value in interim management, or as a company
that may not yet realise how valuable interim management could be as part of your resourcing
strategy.




Anne Beitel
Managing Director
Executives Online




                                                                                                  1
Research Objectives and Methodology


Objectives                                                     Defining Interim Management

Our research aimed to answer a variety of questions about      For the purposes of this report we define interim management
interim management:                                            as being: the provision of a mature, professional manager, well
                                                               qualified by relevant practical experience, either to fill a gap in
• What is the typical profile of an interim manager in terms   permanent staffing or to deliver a specific business result
  of gender, age, background, experience, and how they         within a limited time period.
  source assignments?
• How has the global recession affected the utilisation
  and pay rates of interim managers?                           Survey Methodology and Timings
• What qualities are most important in an interim
  manager?                                                     Our survey was conducted online in February of 2011, via
• What needs drive companies to seek interim                   an online questionnaire to 1,156 Europe-based interim
  management solutions?                                        managers and the clients who employ them. Interim
• What types of companies engage interim managers?             managers from Austria, Belgium, Bulgaria, Croatia, Cyprus,
• How often do interim managers work as part of a team,        the Czech Republic, Denmark, Estonia, Finland, France,
  and what type of work necessitates a team of interim         Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia,
  managers?                                                    Lithuania, Luxembourg, Malta, Norway, Poland, Portugal,
• How important are interim management providers and           Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland,
  other recruitment agencies in connecting clients and         The Netherlands and Turkey participated in the survey. In
  interim practitioners?                                       countries where Executives Online operates – Belgium,
• What variations are evident among these measures             France, Germany, Ireland, Italy and The Netherlands –
  from one European country to another?                        sufficient response was received by country to allow
                                                               reporting of many figures at the country level. We include
                                                               data from our UK survey for comparison in these breakout
                                                               figures.

                                                               In this report, percentages may not add to 100% due to rounding.




The recessionary constraints apparent in
our last survey appear to have lifted
somewhat, with European interim
managers reporting stronger utilisation
and a general feeling of being more busy.
However the impact continues in fewer
younger interim managers entering the
profession, and openness to permanent
employment still running strong.




2
Current Trends

Employment Status

At the time of our 2011 survey, just over a quarter of European       2009 when overall utilisation was lower with 48% of interim
interim managers were working in full-time assignments. Another       managers – almost half – not on assignment. Part-time
13% were working full-time via a combination of part-time             assignments are playing an increasing role in interim executives’
assignments. Another fifth was engaged part-time. Almost 40%          portfolios of work, with almost one-third of the interim managers
were not on assignment. These figures compare favourably to           surveyed engaged in one or more part-time engagements.



  Current Status                                                        Current Status

  2009                                                                   2011
                             6%
                                                                                               13%

                 19%

                                                                                    19%
                                                  48%                                                                 39%



                    27%
                                                                                                 29%




       Not on assignment – 48%                                               Not on assignment – 39%
       Full-time assignment – 27%                                            Full-time assignment – 29%
       Part-time assignment – 19%                                            Part-time assignment – 19%
       Full-time, on combination of part-time assignments – 6%               Full-time, on combination of part-time assignments – 13%



By country in which Executives Online operates, overall utilisation   European colleagues; interim managers in Belgium are slightly
is similar with circa 60% of interim managers surveyed engaged        better utilised.
in work. Interim managers in France are less utilised than their


 Interim Manager Current Work Status by Country


                                                                                                                 The         United
                                                   Belgium   France    Germany       Ireland         Italy   Netherlands    Kingdom


     Working in full-time assignment                40%        23%        28%         25%            33%        24%          29%



     Working in part-time assignment                17%        19%        24%         29%            15%        19%          15%


     Working full-time, but as combination of
                                                     9%        11%        10%          6%            13%        18%           9%
     multiple part-time assignments (portfolio)


     Not on assignment                              34%        46%        38%         39%            39%        39%          47%




                                                                                                                                      3
Providing more evidence of some recovery in the European
interim management sector, interim managers’ perceptions of
how in-demand their services are continue to reflect a “more
busy” state, compared with 2009 when half found themselves
less busy than a year ago.



    In terms of demand for your services, are you              In terms of demand for your services, are you
    finding yourself:                                          finding yourself:

    2009                                                       2011


                  21%
                                                                           29%

                                                                                                       37%
                                            49%


                30%

                                                                                    34%



        Less busy than a year ago – 49%                            Less busy than a year ago – 37%
        About as busy as a year ago – 30%                          About as busy as a year ago – 34%
        More busy than a year ago – 21%                            More busy than a year ago – 29%




4
Length of Assignment

Overall, assignments have lengthened by an average of one             short-term projects of a few months to longer-term initiatives
month’s duration since the time of our last survey in 2009.           spanning years. The average assignment for a European
Interim management assignments can run the gamut from                 interim manager is 9.3 months.


 Length of Last Assignment



                  30

                  25

                  20
                                          21%
     Percentage




                               18%                                   18%
                  15                                                                                       16%
                                                      16%
                  10                                                                    12%

                   5

                   0
                               0–3         3–6        6–9            9 – 12             12 – 18             18
                              months      months     months          months             months            months+




In individual European countries the distribution of assignment       assignments are prevalent in Ireland, with almost half of all
lengths is slightly different. The most mature markets, Belgium       assignments running less than 3 months; paradoxically Ireland
and The Netherlands, show fewer assignments over 18 months            also shows a cluster of longer-term assignments (as does Italy).
in length and thus conform to a more classic definition of            More research might identify whether these are fixed term
interim work. These countries, as well as France and Germany,         contracts labelled interim management – something we see
have approximately half of all assignments between 3 and 9            growing in Executives Online’s UK business.
months, a very typical length of assignment. Very short-term



 Length of Last Assignment by Country


                                                                                                                The        United
                                        Belgium    France     Germany         Ireland             Italy     Netherlands   Kingdom

                       0 – 3 months       20%       12%        14%              49%               16%          16%         23%
                       3 – 6 months       21%       17%        26%              12%               15%          26%         24%
                       6 – 9 months       14%       23%        23%              6%                13%          18%         16%
                       9 – 12 months      24%       18%        14%              6%                21%          17%         12%
                       12 – 18 months      8%       13%         7%              8%                14%          14%
                                                                                                                           25%
                       18+ months         13%       17%        15%              20%               22%          10%




                                                                                                                                       5
Interim Manager Profile

Gender                                                               Gender

The interim management field draws a disproportionate
number of men, with 90% of our Western European survey
                                                                                                   Female
respondents being male. Belgium, The Netherlands and Italy
                                                                                                   10%
show participation of women in interim management at levels
very near the European average. Elsewhere, the proportion of
women among interim managers varies: in France it is 16%; in
Germany, 7%; in Ireland, 13%.




                                                                                          Male 90%




Age

Interim managers tend to be seasoned executives, with almost       more experienced interim managers. We interpret this as a
half of respondents aged 50 or more, and an average age of 49.     symptom of the uncertain economic climate, which may be
Almost 40% of respondents fell into the 40-49 range, and just      deterring younger managers and executives from leaving the
11% were under the age of 40. These figures are virtually          security of employment to commence a career in interim
unchanged from 2009, except for a slight shift towards older and   management.


    Age                                                              Age

    2009                 20–29 1%           70+ 0.4%                 2011                20–29 1%            70+ 0.2%

                               60-69
                                                                                         30–39      60–69
                    30–39       5%
                     13%                                                                  10%        10%
                                                                                            -



                                           50–59
                                            40%                                                              50–59
                                                                                 40–49
                                                                                                              39%
               40–49                                                              39%
                41%




6
Years of Experience                          Years Experience

Interim managers bring years of              2009
experience to their assignments; the
                                                              2 4%
average respondent had 5.6 years of                           %    4%             Years             No. of
experience as an interim manager, and                                             Experience        Respondents
                                                                          10%
this figure does not include additional                                               20+           31
years of experience as an employed                                                    15–19         27
executive. Over half of survey respondents                                            10-14         69
                                               37%
had more than five years of experience as                                             5-9           166
interim managers. Reflecting the growth                                     23%       3-4           142
trend in the field of interim management,                                             1-2           261
though, another 38% of respondents had                                                Less than 1   12
two years or less of experience, having                    20%
broken into the field relatively recently.




                                             Years Experience

                                             2011

                                                         7%     4%                Years             No. of
                                                                     5%
                                                                                  Experience        Respondents
                                                                                      20+           38
                                                                           13%
                                                                                      15–19         49
                                                                                      10-14         124
                                                31%                                   5-9           195
                                                                                      3-4           166
                                                                            21%       1-2           288
                                                                                      Less than 1   66
                                                          18%




                                                                                                                  7
Desire for Permanent Employment                                         Permanent Job?

Just 19% of interim managers are committed to the field of
interim management and would choose to continue in that
realm. The remainder said they could be interested in
permanent employment if the right opportunity presented itself.                                               19%
Commitment to interim management has risen slightly since
our last survey in 2009 when 16% reported being completely
committed to interim management.




                                                                                                  81%




                                                                              Yes, I could be interested if it was the right
                                                                              opportunity – 81%

                                                                              No, I am 100% committed to interim
                                                                              management – 19%




Commitment to interim management is higher in countries with a     short-term employment contracts specifically tailored to interim,
longer history of interim management as a way of engaging in       and high social insurance costs – and its newness as a
executive work, such as Belgium and The Netherlands. Despite       resourcing option, the commitment level of interim managers in
the more structured nature of interim work in France – with        France is similar to more mature markets.


    Attitude Towards Permanent Employment by Country



                                                                                                        The          United
                                            Belgium   France   Germany      Ireland       Italy     Netherlands     Kingdom

         Yes, I could be interested if it
         was the right opportunity            73%      78%        84%        86%          84%           78%           69%

         No, I am 100% committed to
                                              27%      22%        16%        14%          16%           22%           31%
         interim management




8
Interim Management Billing Rates

Changes in Billing Rate                                                             Day Rates Across Europe

When we surveyed European interim managers in 2009, over                                               Respondents    %
40% of survey respondents indicated that their billing rates had
                                                                                       Under €400           139      14%
remained largely the same compared to last year, and another
15% said that they were billing at a higher rate. As a                                 €400-€499            93       10%

counterbalance, however, 42% of respondents were facing lower                          €500-599             105      11%
billing rates. In 2011, billing rates appear to have levelled out,
                                                                                       €600-699             100      10%
with 62% reporting they are billing about the same as the year
before, and only 24% billing less. The average European interim                        €700-799             113      12%
manager in our study earns €756 per day. The distribution of
                                                                                       €800-899             108      11%
daily rates Europe-wide and by country are broken out in the
following charts.                                                                      €900-999             70       7%

                                                                                       €1,000-1,099         96       10%

                                                                                       €1,100-1,199         31       3%

                                                                                       €1.200-1,299         37       4%

                                                                                       €1,300+              70       7%

                                                                                       Total                962      99%




  Change in Daily Rate?                                              Change in Daily Rate?

  2009                                                               2011


                                     15%                                                              14%
                                                                                 24%


              42%



                                         43%                                                            62%




        More – 15%                                                       More – 14%
        About the same – 43%                                             About the same – 62%
        Less – 42%                                                       Less – 24%




                                                                                                                           9
Billing Rate Differential by Country
                                                          Country                                           Average Billing Rate
and Functional Area
                                                          Belgium                                                     €790
Some variation in daily rate is evident by role or
functional area, with European interim Managing           France                                                      €465 *
Directors earning the highest daily rates, followed by    Germany                                                     €907
Commercial Directors and General Managers.
                                                          Ireland                                                     €621
(Many more roles and functions are represented in
our study, however insufficient responses were            Italy                                                       €566
received in each to provide a significant enough          The Netherlands                                             €905
data set.)
                                                          United Kingdom                                              €705 **

                                                         * In France, because most interim executives are employed on short-term
                                                         contracts, rather than billing day rates via limited companies, we asked this
                                                         question as monthly salary. The average monthly interim salary in France was
                                                         €9,295 which (assuming a 20-day month) equates to a daily rate of €465.
                                                          ** The average UK interim manager earns £621 per day, converted to
                                                         Euros at April 2011 exchange rates equals €705




                                                          Functional Area                                   Average Billing Rate

                                                          Change Management                                           €922

                                                          Commercial Director/General Manager                         €728

                                                          Finance Director                                            €712

                                                          HR                                                          €747

                                                          MD/CEO                                                      €972

                                                          Programme/Project Management                                €651

                                                          Sales and Marketing                                         €633




10
Sourcing Interim Management Assignments

Over seventy percent of the interim
                                                        Source of Last Assignment
managers surveyed had sourced their
most recent project on their own, with just
over a quarter having made use of interim
or recruitment agencies. Compared to
2009, when the agency share was 23%,                                                                     Via an interim or recruitment
                                                                                                         agency – 29%
the agency share of the market has grown.
                                                                  29%
This may be reflective of the increasing                                                                 Generated the opportunity
maturity of interim management as a                                                                      myself – 71%
recruitment specialty and way of working in
numerous European markets.
                                                                                        71%




Belgium, The Netherlands and Germany appear to have a                   which interim management has been developing as a way of
more active interim management recruitment industry, with               working and a valid career choice, compared to markets such
agencies supplying larger shares of assignments than                    as Italy and France which are at an earlier stage.
elsewhere. This is no doubt due to the longer timeframe over


                Source of Last Assignment

                              100%
                                     Agency    Agency    Agency          Agency         Agency        Agency          Agency
                              90%
                              80%                                                        Self
  Percentage of Respondents




                              70%
                                                Self
                                                                           Self
                              60%                                                                       Self
                                                           Self                                                        Self
                              50%     Self

                              40%
                              30%
                              20%
                              10%
                               0%
                                     Belgium   France    Germany          Ireland        Italy           The           United
                                                                                                     Netherlands      Kingdom




                                                                                                                                     11
Type of Agency

Within the agency sector, interim
                                             Type of Agency
management specialist providers have the
dominant share. Among interim managers
who in the past two years sourced interim
                                                                              3
work through an agency or recruitment                                         %
business of some type, recruitment                                       9%
practices specifically focused on interim                                          29%
management have a 69% market share.                              11%
Large management recruiters have a
nearly 20% share, with more generalist
recruiters and professional services firms
having under 10% of the market each.
                                                                  19%

Social media is playing an increasing role                                        29%
in connecting interim managers with work.
Fully 28% of interim managers we surveyed
had sourced an assignment via a client
who reached out to them over LinkedIn,
                                                 Interim management agency -      Interim management practice,
Xing or another social or business               specialist on the type of role   part of firm with other executive
networking site. Most reported this as a         needed – 29%                     recruitment services – 11%
growing phenomenon.
                                                 Interim management agency -      Professional services firm
                                                 generalist (able to place all    (example Big 4, other
                                                 types of interim roles) – 29%    accountancy firms, etc.) – 9%

                                                 Large management recruiter       Large Recruitment Process
                                                 (example Michael Page,           Outsourcing firm (examples
                                                 Hudson) – 19%                    Alexander Mann, Capita) – 3%




12
Drivers of Interim Management Engagement

A range of organisational gaps or imperatives can drive the       factors driving more than 10% of assignments were skills
need for an interim manager within a company. When                gaps (12%) and the need to implement a major initiative.
interim managers were asked to specify the “primary               The most traditional or “obvious” reason for engaging
driver” for their client’s hiring them for their most recent      interim managers – a temporary absence, or slow
assignment, the two most common reasons were change               permanent recruitment – were not so important as the main
management (33%) and crisis management (18%). Other               reason for the engagement.



  Main Reason for Engagement


                                                           Change management: to lead a major improvement/transformation
                          3%                               project – 33%
                    6%
               7%                                          Crisis management: to address urgent and major
                                                           issues/turnaround – 18%
                                          33%
          7%
                                                           Implementing a major initiative (product launch, relocation) – 15%

                                                           Temporary "skill/competence" shortage – 12%
         12%
                                                           Temporary management "capacity" shortage – 7%

                                                           Strengthening a project team – 7%
                    15%             18%
                                                           Bridging time needed to hire someone permanently – 6%

                                                           Bridging time needed to fill a temporary absence (illness,
                                                           secondment) – 3%




Primary drivers of clients’ engagement of interim managers        leading reasons. Skills gaps take a back seat to crisis
is broadly quite similar across multiple European countries,      management in Belgium and France, whereas in Ireland,
with change management and crisis management the                  skills gaps are the second most important driver.


  Reasons for Engagement by Country
                                                                                                               The        United
                                                        Belgium    France   Germany     Ireland    Italy   Netherlands   Kingdom

     Change management: to lead a major
                                                         30%        35%        28%       40%       31%         42%          19%
     improvement/transformation project
     Crisis management: to address urgent and major
                                                         20%        22%        17%       11%       18%         16%          7%
     issues/turnaround
     Implementing a major initiative (product launch,
     relocation)                                         14%        15%        12%       11%       15%         13%          8%

     Temporary "skill/competence" shortage               7%          9%        15%       23%       13%         12%          42%
     Temporary management "capacity" shortage            7%          3%        8%         4%        8%         4%           6%
     Strengthening a project team                        5%          5%        8%         4%       10%         5%           4%
     Bridging time needed to hire someone
                                                         9%          6%        8%         2%        3%         4%           7%
     permanently
     Bridging time needed to fill a temporary absence
                                                         7%          3%        3%         4%        2%         3%           8%
     (illness, secondment)




                                                                                                                                   13
Asked about “all factors involved” in driving their last                               and gaining extra management capacity – an extra pair of
interim management engagement, responses were                                          hands. Again, sudden temporary absences were factors in
consistent with the “primary driver” answers, but additional                           only a small portion of assignments.
important reasons included strengthening a project team,



 All Reasons for Engagement

                          600


                          500        510
                                     21%
                          400
                                                     406
     Number of Mentions




                                                     17%             353
                          300                                                        343
                                                                     15%             14%
                                                                                                     290             291
                          200                                                                                        12%
                                                                                                     12%
                                                                                                                                       142
                          100
                                                                                                                                       6%
                                                                                                                                                       61 3%
                            0
                                    Change        Implementing a       Crisis        Temporary      Temporary    Strengthening a   Bridging time      Bridging time
                                 management: to major initiative management: to "skill/competence" management     project team     needed to hire    needed to fill a
                                  lead a major   (product launch, address urgent       shortage     "capacity"                       someone           temporary
                                improvement/tran    relocation)      and major                       shortage                       permanently     absence (illness,
                                   sformation                         issues/                                                                         secondment)
                                     project                        turnaround




Looking at what types of roles European interim managers take
                                                                                                Type of Role
on, whether general management, functional management,
programme or project management, or subject matter expert,
the share of each in the market is almost equal, with executive
                                                                                                    100%
management roles (general or functional) leading project roles.                                                     18%                  Programme or Project
Aligning with the reasons clients engage interim managers,                                           90%                                 Management role – 18%
where skill/competence shortages were somewhat important                                             80%                                 Expert / Consultant (you
                                                                                                                    25%                  were engaged to bring
reasons, we see interim managers engaged to assume roles                                             70%
                                                                                                                                         specific specialist
where they impart a specialist area of knowledge or skill
                                                                                                     60%                                 competencies) – 25%
comprising 25% of assignments.
                                                                                                     50%            28%                  Functional Management
                                                                                                                                         role (CFO, Marketing
                                                                                                     40%                                 Director, HR Director) –
                                                                                                     30%                                 28%

                                                                                                     20%            29%                  General Management role
                                                                                                                                         (for example CEO, MD,
                                                                                                     10%                                 Country Manager, Division
                                                                                                       0%                                Manager) – 29%




14
Interim managers tend to perform most assignments solo, with     • I normally bring in experts such as CFO, CSO or COO if
only 18% reporting that in the past two years they had worked      needed, however the best turnarounds are carried out by
as part of a team of interim managers at the same client.          making incumbent management part of the interim team.
Among interim managers who had completed team                    • I was CFO and had five interim financial managers working
assignments, the reasons are wide-ranging, and tended to be        for me as business controllers. The assignment was to
concerned with wholesale business transformation:                  create a business mentality and reporting tool in a public
                                                                   sector.
• Divisional management all interim (MD, FD and myself) to
                                                                 • A typical brief for me and a team of other interim managers
  turn around and dispose of all continental activities.
                                                                   is to replace the existing management team or to help it
• Full redesign of a treasury dept, required two managers,         resolve a crisis via a subsequent reorganisation.
  one operational, one project manager.
                                                                 • On an outsourcing and shared services project, I was the
• Global HR transformation for automotive industry with 40         Irish lead working with UK and European interim personnel.
  sites.
                                                                 • Turnaround of a small company with an interim
• Helping to develop start ups in a range of countries for the     management team including sales, operations, project
  same client, an Austrian company breaking into the               design and shadow manager.
  English-speaking world.
• I managed a full-time dedicated project team of four
   people. The team was temporarily assembled to execute
   process improvement / a cost saving project.


  Do you work as part of a team?




                                   Yes 18%




                          No 82%




                                                                 I normally bring in experts such as CFO,
                                                                 CSO or COO if needed, however the best
                                                                 turnarounds are carried out by making
                                                                 incumbent management part of the
                                                                 interim team.




                                                                                                                             15
Most Important Qualities in an Interim Manager

Interestingly, when asked to rank the most important qualities in         Other respondents enhanced the list of “people skills” by
an interim manager, survey respondents favoured aspects of                adding: being “good in politics,” “inspiring people by
“effectiveness” and people skills more highly than specific skills        recognising their personal skills,” “coaching on all levels,” and
or experience in the job or function. The most important                  “humour”. Another respondent noted the “willingness and
qualities highlighted were:                                               ability to speak one’s mind”. The starting point of a project was
                                                                          also seen as critical, and one individual highlighted the “ability
• Ability to work strategically but also implement (19%)
                                                                          to quickly understand the business, people, policies and
• Results-focused (18%)
                                                                          crucial processes”. Another noted the advantage of having a
• Wide range of experience (15%)                                          “helicopter view”.
• Specific skills/experience for specific job (10%)
                                                                          It is clear that each interim executive is unique and brings
• Ability to quickly get people on side (10%)                             distinct qualities to each engagement. One interim manager
                                                                          articulated his “quick hit” list for success in the field: “(1) Get in
                                                                          … analyse the environment; (2) Do your thing … result-
                                                                          focused, independent, resourcefulness based on
                                                                          skills/experience; (3) Get out … so don’t get too close, either
                                                                          personally or socially”.




     Interim Manager Perspective


     Ability to work strategically but also to implement                                                                           19%
                                      Results-focused                                                                          18%
                            Wide range of experience                                                              15%
            Specific skills/experience for specific job                                        10%
                 Ability to quickly get people on side                                        10%
                                        Independence                                         9%
                                      Ability to mentor                              7%
               Not side-tracked by company politics                             6%
           Willingness to speak mind when required                        4%
                                            Resilience               3%


                                                           0   100        200        300      400       500        600       700       800
                                                                                           Number of Mentions




16
Client Data

Ninety percent of interim management assignments from the
                                                                                     Type of Client
candidates we surveyed were with clients in the private sector,
with larger corporations (over 250 employees) comprising 42%
of assignments and SMEs (small to medium-sized enterprises
                                                                                                                 2
having under 250 employees) commanding a 48% share. The                                                          %
                                                                                                            8%
public and not-for-profit sectors use interim management less
in Europe, with merely 10% of assignments, compared to the
UK, where their share of assignments in our survey is 24%.


                                                                                                                                48%

                                                                                                  42%




                                                                                             Small to medium-sized enterprises (< 250
                                                                                             employees) – 48%
                                                                                             Larger corporations (> 250 employees) – 42%
                                                                                             Public sector organisations – 8%
                                                                                             Charitable organisations – 2%




  Industry in Which Interim Managers Surveyed Completed Last Assignment



                   Industrial / Manufacturing                                                                                 308
                  IT / Telecoms / Technology                                                      173
                          Business Services                                    85
                Financial Services / Banking                                  79
                          Retail / Distribution                           76
                 Health / Medical / Research                             68
                      Building / Construction                       48
           Media / Marketing / Entertainment                    46
                 Government / Public Sector                     40
                        Transport / Logistics                  38
                       Professional Services                   36
                 Natural Resources / Utilities            22
                                      Leisure         20
                Charity / Not-for-profit / NGO        9


                                                  0            50              100        150         200        250    300         350
                                                                                      Number of Respondents

                                                                                                                                           17
Conclusion

     We are grateful to the 1,156 European executives who            Most interim managers in Europe source their own work,
     participated in our most recent online surveys. With more       networking amongst colleagues to identify opportunities:
     than 20 multiple-choice and ranking questions, and the          More than 70% of assignments were found without help of
     opportunity to provide detailed comments (which many            an interim management provider or recruitment agency.
     did), this was no small ask.                                    However, when agencies are involved, it is the recruiters
                                                                     who focus on interim management who garner the largest
     In the figures published in this report, we see the continued   share of the market.
     impact of the global economic crisis; however, we also see
     it lifting. Today’s interim managers are more likely to be on   The main motivations for engaging an interim manager are
     an assignment, and feel somewhat more busy than two             progressive company challenges – change management,
     years ago. Daily rates have levelled out, following a           crisis management, implementing a major initiative – rather
     decline reported in 2009. In 2011, 62% of interim               than the traditional “gap filling” reasons like bridging an
     managers surveyed reported they are earning the same            illness, secondment or slow permanent recruitment.
     now as a year ago.                                              However, interim managers most often work alone, with
                                                                     only 18% having worked in the past two years as part of a
     Openness to permanent employment continues, with 81%            team of interim managers.
     of interim managers reporting that for the right role, they
     would return to permanent employment. Some of this              We hope you have enjoyed The Interim Report. If your
     desire for permanence and stability is no doubt due to the      company or organisation needs skills, management
     current climate. Firm commitment to interim management          capacity, or to implement a turnaround, major project or
     as a career is stronger in countries with a longer history of   corporate restructure, call your nearest Executives Online
     interim management, as are the daily rates achieved.            office today to discuss how an interim executive from
                                                                     Executives Online can help.




     About Executives Online

     Executives Online is an executive recruitment company that harnesses the internet to accelerate the search process.
     This delivers exactly the right candidates quickly, for interim or permanent executive roles, in order to redress loss of
     competence and protect competitive advantage. What makes us different is our award-winning online talent acquisition
     engine which can be deployed instantly, worldwide, saving you time and money. Our vision is to transform executive
     recruitment.


     We have developed a Global Talent Bank which today numbers over 100,000 pre-screened senior executives which we
     utilise to service our clients’ needs locally, a growing and constantly refreshed source of senior talent. Each search of our
     Global Talent Bank for candidates we undertake is individual and specific to the client’s requirements to ensure that we
     deliver exactly the right candidate to our clients, at market rates, every time. Our access to talent is online and global –
     but our client service is personal and local, via each of our growing network of offices.




18
"A consultant might draw up a great                              "We chose the interim management route
strategic plan, but companies today want                         early on to help us keep pace with our
more than this, they need someone who                            expansion plans. New challenges were on
can cope with the strategy but even more                         the horizon and we needed additional
importantly deliver it too. For that mix of                      executive management support, fast. I
abilities you need interim managers. They                        was pleasantly surprised when a number
are prepared to roll up their sleeves and                        of highly suitable candidates were
get stuck in with your management team –                         proposed [by Executives Online], all within
not sit on the sidelines giving advice. You                      a matter of days. The appointment
can get a senior interim manager, who                            immediately brought us new momentum
perfectly matches your business, on board                        and greater focus. We were delighted with
incredibly fast. With interims – from that                       Peter's contribution."
first call to an interim supply agency, you
can have someone through the door, and                                                                             David Cole
                                                                                            Managing Director, Buyenergyonline
delivering in a week."

                                            Duncan Sedgwick
                                CEO, Energy Retail Association   "Greg brought to The Carphone
           (former Business Transformation Director, Powergen)
                                                                 Warehouse his obvious experience and
                                                                 knowledge which he gladly shared with
                                                                 others. He hit the ground running, quickly
"Our brief was unusual – great product
                                                                 putting all the necessary protocols and
and great-track record but small company
                                                                 support systems in place. But more
(with 12 staff currently employed in our UK
                                                                 fundamental than this, he gave our team
division) no market awareness, and no
                                                                 a lot of confidence. At a time when they
infrastructure. So the typical high flyer,
                                                                 could have felt under enormous pressure,
with a background in majors and
                                                                 he made them believe in themselves, and
multinationals wouldn’t be right for us. We
                                                                 not be intimidated by the challenge.
needed someone of that calibre but with
                                                                 He wasn't cheap but I didn't want cheap,
totally different experience. I was instantly
                                                                 I wanted good – and that's certainly what
impressed with the professional nature of
                                                                 I got. Companies like ours can't afford to
Executives Online’s site and with the fact
                                                                 have plans put on hold while we recruit.
that they place interims as well as
                                                                 That's why we went to Executives Online
permanent staff, since I believe anyone
                                                                 – and once again, in days that had found
good enough and confident enough to be
                                                                 me just the person I needed."
placed in short term projects must have
top class skills."
                                                                                                                  Attiq Qureshi
                                                                         Hosting and Support Director, The Carphone Warehouse

                                                  Vilosh Brito
                                        MD, Information Edge




                                                                                                                                  19
South of England                  Midlands                      The Netherlands
Staple House, 3rd Floor           West Walk Building            Atrium gebouw
Staple Gardens, Winchester        110 Regent Road               Strawinskylaan 3051
Hampshire, SO23 8SR               Leicester, LE1 7LT            1077 ZX Amsterdam
T: 01962 893 300                  T: 0845 328 2370              T: +31 (0)20 3012159


London                            South West and Wales          Australia
Capital Tower, 91 Waterloo Road   1 Friary, Temple Quay         Level 6, 77 Pacific Highway
London, SE1 8RT                   Bristol, BS1 6EA              North Sydney, NSW 2060
T: 0845 053 1188                  T: 0117 344 5128              T: +61 1300 853 099 and
                                                                ask for Executives Online
North of England                  Ireland
2 Victoria Street, Wetherby       1st Floor, 43 Main Street     France
West Yorkshire, LS22 6RE          Rathfarnham, Dublin, D14      17 rue du Maréchal Lyautey
T: 01937 581900                   T: +353 1 (0) 492 5000        95620 Parmain
                                                                T: +33 (0)1 34 73 10 72
North East of England             Belgium
Rotterdam House                   Gentsesteenweg 1150, bus 12   South Africa
Quayside                          1082 Brussels                 West Block, Dunkeld Crescent
Newcastle upon Tyne, NE1 3DY      T: +32 475 580 333            Corner Jan Smuts and Albury Rd
T: 0191 2064113                                                 Dunkeld West 2196
                                  Germany                       T: +27 (0)11 2432801
North West of England             Dillenburger Strasse 17
82 King Street                    51105 Cologne
Manchester, M2 4WQ                T: +49 (0) 221 460 234 20
T: 0161 935 8246
                                  Italy
Scotland                          Via Senigallia 18/2 Torre A
Dalgety Bay Business Centre       20161 Milan
Ridgeway, Dalgety Bay, KY11 9JN   T: +39 02 6467 2632
T: 01383 828920

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Im Trends Report We11 Vis5

  • 1. The Interim Report: Research and Analysis on the European Interim Management Market Europe Survey Report
  • 2. Contents Page Introduction 1 Research Objectives and Methodology 2 Defining Interim Management 2 Current Trends 3 Interim Manager Profile 6 Interim Management Billing Rates 9 Sourcing Interim Management Assignments 11 Type of Agency 12 Drivers of Interim Management Engagement 13 Most Important Qualities in an Interim Manager 16 Client Data 17 Conclusion 18
  • 3. Introduction The pressure on companies today to deliver results quickly and at reduced cost has only increased amidst the challenges of the global economy. Recent economic conditions have brought about headcount reductions, hiring freezes, outsourcing, and reorganisations that simply exacerbate existing pressures. Optimal resourcing is always a corporate priority, but perhaps never more so than today. In our business, we have seen the number of managers and executives registered with us for interim work rise from a few thousand in the UK in 2000 to over 100,000 globally today. We observe significant differences in the recognition and adoption of interim management by country, and even by region within each country. In some markets – the United Kingdom, Belgium and The Netherlands for example – interim management is a well-established way of working, and of sourcing executive talent. In Southern European territories and Asia Pacific, the concept is at an earlier stage of development that shows much promise. Variations in terminology, contract structure and local employment law make global interim management a diverse and compelling field for study. Reliable information about growth and trends in the field of interim management has not always been readily available. Back in 2000, Executives Online worked in conjunction with the Institute of Management Consultancy to commission a study with Sambrook Research International on the interim management market in the United Kingdom. The Sambrook Report on UK Interim Management was published in 2000. In 2004 and 2006, respectively, Executives Online published In the Interim and the first edition of The Interim Report. In 2007 we updated The Interim Report with new information, and in 2009 we published Interim Management Trend Update. Now in 2011 we have undertaken a new survey to keep abreast of the trends in this fast- moving arena. We are excited to share this new information with you, and hope that it will address questions you might have regardless of your perspective: as an interim manager yourself, as a company that has found great value in interim management, or as a company that may not yet realise how valuable interim management could be as part of your resourcing strategy. Anne Beitel Managing Director Executives Online 1
  • 4. Research Objectives and Methodology Objectives Defining Interim Management Our research aimed to answer a variety of questions about For the purposes of this report we define interim management interim management: as being: the provision of a mature, professional manager, well qualified by relevant practical experience, either to fill a gap in • What is the typical profile of an interim manager in terms permanent staffing or to deliver a specific business result of gender, age, background, experience, and how they within a limited time period. source assignments? • How has the global recession affected the utilisation and pay rates of interim managers? Survey Methodology and Timings • What qualities are most important in an interim manager? Our survey was conducted online in February of 2011, via • What needs drive companies to seek interim an online questionnaire to 1,156 Europe-based interim management solutions? managers and the clients who employ them. Interim • What types of companies engage interim managers? managers from Austria, Belgium, Bulgaria, Croatia, Cyprus, • How often do interim managers work as part of a team, the Czech Republic, Denmark, Estonia, Finland, France, and what type of work necessitates a team of interim Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, managers? Lithuania, Luxembourg, Malta, Norway, Poland, Portugal, • How important are interim management providers and Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, other recruitment agencies in connecting clients and The Netherlands and Turkey participated in the survey. In interim practitioners? countries where Executives Online operates – Belgium, • What variations are evident among these measures France, Germany, Ireland, Italy and The Netherlands – from one European country to another? sufficient response was received by country to allow reporting of many figures at the country level. We include data from our UK survey for comparison in these breakout figures. In this report, percentages may not add to 100% due to rounding. The recessionary constraints apparent in our last survey appear to have lifted somewhat, with European interim managers reporting stronger utilisation and a general feeling of being more busy. However the impact continues in fewer younger interim managers entering the profession, and openness to permanent employment still running strong. 2
  • 5. Current Trends Employment Status At the time of our 2011 survey, just over a quarter of European 2009 when overall utilisation was lower with 48% of interim interim managers were working in full-time assignments. Another managers – almost half – not on assignment. Part-time 13% were working full-time via a combination of part-time assignments are playing an increasing role in interim executives’ assignments. Another fifth was engaged part-time. Almost 40% portfolios of work, with almost one-third of the interim managers were not on assignment. These figures compare favourably to surveyed engaged in one or more part-time engagements. Current Status Current Status 2009 2011 6% 13% 19% 19% 48% 39% 27% 29% Not on assignment – 48% Not on assignment – 39% Full-time assignment – 27% Full-time assignment – 29% Part-time assignment – 19% Part-time assignment – 19% Full-time, on combination of part-time assignments – 6% Full-time, on combination of part-time assignments – 13% By country in which Executives Online operates, overall utilisation European colleagues; interim managers in Belgium are slightly is similar with circa 60% of interim managers surveyed engaged better utilised. in work. Interim managers in France are less utilised than their Interim Manager Current Work Status by Country The United Belgium France Germany Ireland Italy Netherlands Kingdom Working in full-time assignment 40% 23% 28% 25% 33% 24% 29% Working in part-time assignment 17% 19% 24% 29% 15% 19% 15% Working full-time, but as combination of 9% 11% 10% 6% 13% 18% 9% multiple part-time assignments (portfolio) Not on assignment 34% 46% 38% 39% 39% 39% 47% 3
  • 6. Providing more evidence of some recovery in the European interim management sector, interim managers’ perceptions of how in-demand their services are continue to reflect a “more busy” state, compared with 2009 when half found themselves less busy than a year ago. In terms of demand for your services, are you In terms of demand for your services, are you finding yourself: finding yourself: 2009 2011 21% 29% 37% 49% 30% 34% Less busy than a year ago – 49% Less busy than a year ago – 37% About as busy as a year ago – 30% About as busy as a year ago – 34% More busy than a year ago – 21% More busy than a year ago – 29% 4
  • 7. Length of Assignment Overall, assignments have lengthened by an average of one short-term projects of a few months to longer-term initiatives month’s duration since the time of our last survey in 2009. spanning years. The average assignment for a European Interim management assignments can run the gamut from interim manager is 9.3 months. Length of Last Assignment 30 25 20 21% Percentage 18% 18% 15 16% 16% 10 12% 5 0 0–3 3–6 6–9 9 – 12 12 – 18 18 months months months months months months+ In individual European countries the distribution of assignment assignments are prevalent in Ireland, with almost half of all lengths is slightly different. The most mature markets, Belgium assignments running less than 3 months; paradoxically Ireland and The Netherlands, show fewer assignments over 18 months also shows a cluster of longer-term assignments (as does Italy). in length and thus conform to a more classic definition of More research might identify whether these are fixed term interim work. These countries, as well as France and Germany, contracts labelled interim management – something we see have approximately half of all assignments between 3 and 9 growing in Executives Online’s UK business. months, a very typical length of assignment. Very short-term Length of Last Assignment by Country The United Belgium France Germany Ireland Italy Netherlands Kingdom 0 – 3 months 20% 12% 14% 49% 16% 16% 23% 3 – 6 months 21% 17% 26% 12% 15% 26% 24% 6 – 9 months 14% 23% 23% 6% 13% 18% 16% 9 – 12 months 24% 18% 14% 6% 21% 17% 12% 12 – 18 months 8% 13% 7% 8% 14% 14% 25% 18+ months 13% 17% 15% 20% 22% 10% 5
  • 8. Interim Manager Profile Gender Gender The interim management field draws a disproportionate number of men, with 90% of our Western European survey Female respondents being male. Belgium, The Netherlands and Italy 10% show participation of women in interim management at levels very near the European average. Elsewhere, the proportion of women among interim managers varies: in France it is 16%; in Germany, 7%; in Ireland, 13%. Male 90% Age Interim managers tend to be seasoned executives, with almost more experienced interim managers. We interpret this as a half of respondents aged 50 or more, and an average age of 49. symptom of the uncertain economic climate, which may be Almost 40% of respondents fell into the 40-49 range, and just deterring younger managers and executives from leaving the 11% were under the age of 40. These figures are virtually security of employment to commence a career in interim unchanged from 2009, except for a slight shift towards older and management. Age Age 2009 20–29 1% 70+ 0.4% 2011 20–29 1% 70+ 0.2% 60-69 30–39 60–69 30–39 5% 13% 10% 10% - 50–59 40% 50–59 40–49 39% 40–49 39% 41% 6
  • 9. Years of Experience Years Experience Interim managers bring years of 2009 experience to their assignments; the 2 4% average respondent had 5.6 years of % 4% Years No. of experience as an interim manager, and Experience Respondents 10% this figure does not include additional 20+ 31 years of experience as an employed 15–19 27 executive. Over half of survey respondents 10-14 69 37% had more than five years of experience as 5-9 166 interim managers. Reflecting the growth 23% 3-4 142 trend in the field of interim management, 1-2 261 though, another 38% of respondents had Less than 1 12 two years or less of experience, having 20% broken into the field relatively recently. Years Experience 2011 7% 4% Years No. of 5% Experience Respondents 20+ 38 13% 15–19 49 10-14 124 31% 5-9 195 3-4 166 21% 1-2 288 Less than 1 66 18% 7
  • 10. Desire for Permanent Employment Permanent Job? Just 19% of interim managers are committed to the field of interim management and would choose to continue in that realm. The remainder said they could be interested in permanent employment if the right opportunity presented itself. 19% Commitment to interim management has risen slightly since our last survey in 2009 when 16% reported being completely committed to interim management. 81% Yes, I could be interested if it was the right opportunity – 81% No, I am 100% committed to interim management – 19% Commitment to interim management is higher in countries with a short-term employment contracts specifically tailored to interim, longer history of interim management as a way of engaging in and high social insurance costs – and its newness as a executive work, such as Belgium and The Netherlands. Despite resourcing option, the commitment level of interim managers in the more structured nature of interim work in France – with France is similar to more mature markets. Attitude Towards Permanent Employment by Country The United Belgium France Germany Ireland Italy Netherlands Kingdom Yes, I could be interested if it was the right opportunity 73% 78% 84% 86% 84% 78% 69% No, I am 100% committed to 27% 22% 16% 14% 16% 22% 31% interim management 8
  • 11. Interim Management Billing Rates Changes in Billing Rate Day Rates Across Europe When we surveyed European interim managers in 2009, over Respondents % 40% of survey respondents indicated that their billing rates had Under €400 139 14% remained largely the same compared to last year, and another 15% said that they were billing at a higher rate. As a €400-€499 93 10% counterbalance, however, 42% of respondents were facing lower €500-599 105 11% billing rates. In 2011, billing rates appear to have levelled out, €600-699 100 10% with 62% reporting they are billing about the same as the year before, and only 24% billing less. The average European interim €700-799 113 12% manager in our study earns €756 per day. The distribution of €800-899 108 11% daily rates Europe-wide and by country are broken out in the following charts. €900-999 70 7% €1,000-1,099 96 10% €1,100-1,199 31 3% €1.200-1,299 37 4% €1,300+ 70 7% Total 962 99% Change in Daily Rate? Change in Daily Rate? 2009 2011 15% 14% 24% 42% 43% 62% More – 15% More – 14% About the same – 43% About the same – 62% Less – 42% Less – 24% 9
  • 12. Billing Rate Differential by Country Country Average Billing Rate and Functional Area Belgium €790 Some variation in daily rate is evident by role or functional area, with European interim Managing France €465 * Directors earning the highest daily rates, followed by Germany €907 Commercial Directors and General Managers. Ireland €621 (Many more roles and functions are represented in our study, however insufficient responses were Italy €566 received in each to provide a significant enough The Netherlands €905 data set.) United Kingdom €705 ** * In France, because most interim executives are employed on short-term contracts, rather than billing day rates via limited companies, we asked this question as monthly salary. The average monthly interim salary in France was €9,295 which (assuming a 20-day month) equates to a daily rate of €465. ** The average UK interim manager earns £621 per day, converted to Euros at April 2011 exchange rates equals €705 Functional Area Average Billing Rate Change Management €922 Commercial Director/General Manager €728 Finance Director €712 HR €747 MD/CEO €972 Programme/Project Management €651 Sales and Marketing €633 10
  • 13. Sourcing Interim Management Assignments Over seventy percent of the interim Source of Last Assignment managers surveyed had sourced their most recent project on their own, with just over a quarter having made use of interim or recruitment agencies. Compared to 2009, when the agency share was 23%, Via an interim or recruitment agency – 29% the agency share of the market has grown. 29% This may be reflective of the increasing Generated the opportunity maturity of interim management as a myself – 71% recruitment specialty and way of working in numerous European markets. 71% Belgium, The Netherlands and Germany appear to have a which interim management has been developing as a way of more active interim management recruitment industry, with working and a valid career choice, compared to markets such agencies supplying larger shares of assignments than as Italy and France which are at an earlier stage. elsewhere. This is no doubt due to the longer timeframe over Source of Last Assignment 100% Agency Agency Agency Agency Agency Agency Agency 90% 80% Self Percentage of Respondents 70% Self Self 60% Self Self Self 50% Self 40% 30% 20% 10% 0% Belgium France Germany Ireland Italy The United Netherlands Kingdom 11
  • 14. Type of Agency Within the agency sector, interim Type of Agency management specialist providers have the dominant share. Among interim managers who in the past two years sourced interim 3 work through an agency or recruitment % business of some type, recruitment 9% practices specifically focused on interim 29% management have a 69% market share. 11% Large management recruiters have a nearly 20% share, with more generalist recruiters and professional services firms having under 10% of the market each. 19% Social media is playing an increasing role 29% in connecting interim managers with work. Fully 28% of interim managers we surveyed had sourced an assignment via a client who reached out to them over LinkedIn, Interim management agency - Interim management practice, Xing or another social or business specialist on the type of role part of firm with other executive networking site. Most reported this as a needed – 29% recruitment services – 11% growing phenomenon. Interim management agency - Professional services firm generalist (able to place all (example Big 4, other types of interim roles) – 29% accountancy firms, etc.) – 9% Large management recruiter Large Recruitment Process (example Michael Page, Outsourcing firm (examples Hudson) – 19% Alexander Mann, Capita) – 3% 12
  • 15. Drivers of Interim Management Engagement A range of organisational gaps or imperatives can drive the factors driving more than 10% of assignments were skills need for an interim manager within a company. When gaps (12%) and the need to implement a major initiative. interim managers were asked to specify the “primary The most traditional or “obvious” reason for engaging driver” for their client’s hiring them for their most recent interim managers – a temporary absence, or slow assignment, the two most common reasons were change permanent recruitment – were not so important as the main management (33%) and crisis management (18%). Other reason for the engagement. Main Reason for Engagement Change management: to lead a major improvement/transformation 3% project – 33% 6% 7% Crisis management: to address urgent and major issues/turnaround – 18% 33% 7% Implementing a major initiative (product launch, relocation) – 15% Temporary "skill/competence" shortage – 12% 12% Temporary management "capacity" shortage – 7% Strengthening a project team – 7% 15% 18% Bridging time needed to hire someone permanently – 6% Bridging time needed to fill a temporary absence (illness, secondment) – 3% Primary drivers of clients’ engagement of interim managers leading reasons. Skills gaps take a back seat to crisis is broadly quite similar across multiple European countries, management in Belgium and France, whereas in Ireland, with change management and crisis management the skills gaps are the second most important driver. Reasons for Engagement by Country The United Belgium France Germany Ireland Italy Netherlands Kingdom Change management: to lead a major 30% 35% 28% 40% 31% 42% 19% improvement/transformation project Crisis management: to address urgent and major 20% 22% 17% 11% 18% 16% 7% issues/turnaround Implementing a major initiative (product launch, relocation) 14% 15% 12% 11% 15% 13% 8% Temporary "skill/competence" shortage 7% 9% 15% 23% 13% 12% 42% Temporary management "capacity" shortage 7% 3% 8% 4% 8% 4% 6% Strengthening a project team 5% 5% 8% 4% 10% 5% 4% Bridging time needed to hire someone 9% 6% 8% 2% 3% 4% 7% permanently Bridging time needed to fill a temporary absence 7% 3% 3% 4% 2% 3% 8% (illness, secondment) 13
  • 16. Asked about “all factors involved” in driving their last and gaining extra management capacity – an extra pair of interim management engagement, responses were hands. Again, sudden temporary absences were factors in consistent with the “primary driver” answers, but additional only a small portion of assignments. important reasons included strengthening a project team, All Reasons for Engagement 600 500 510 21% 400 406 Number of Mentions 17% 353 300 343 15% 14% 290 291 200 12% 12% 142 100 6% 61 3% 0 Change Implementing a Crisis Temporary Temporary Strengthening a Bridging time Bridging time management: to major initiative management: to "skill/competence" management project team needed to hire needed to fill a lead a major (product launch, address urgent shortage "capacity" someone temporary improvement/tran relocation) and major shortage permanently absence (illness, sformation issues/ secondment) project turnaround Looking at what types of roles European interim managers take Type of Role on, whether general management, functional management, programme or project management, or subject matter expert, the share of each in the market is almost equal, with executive 100% management roles (general or functional) leading project roles. 18% Programme or Project Aligning with the reasons clients engage interim managers, 90% Management role – 18% where skill/competence shortages were somewhat important 80% Expert / Consultant (you 25% were engaged to bring reasons, we see interim managers engaged to assume roles 70% specific specialist where they impart a specialist area of knowledge or skill 60% competencies) – 25% comprising 25% of assignments. 50% 28% Functional Management role (CFO, Marketing 40% Director, HR Director) – 30% 28% 20% 29% General Management role (for example CEO, MD, 10% Country Manager, Division 0% Manager) – 29% 14
  • 17. Interim managers tend to perform most assignments solo, with • I normally bring in experts such as CFO, CSO or COO if only 18% reporting that in the past two years they had worked needed, however the best turnarounds are carried out by as part of a team of interim managers at the same client. making incumbent management part of the interim team. Among interim managers who had completed team • I was CFO and had five interim financial managers working assignments, the reasons are wide-ranging, and tended to be for me as business controllers. The assignment was to concerned with wholesale business transformation: create a business mentality and reporting tool in a public sector. • Divisional management all interim (MD, FD and myself) to • A typical brief for me and a team of other interim managers turn around and dispose of all continental activities. is to replace the existing management team or to help it • Full redesign of a treasury dept, required two managers, resolve a crisis via a subsequent reorganisation. one operational, one project manager. • On an outsourcing and shared services project, I was the • Global HR transformation for automotive industry with 40 Irish lead working with UK and European interim personnel. sites. • Turnaround of a small company with an interim • Helping to develop start ups in a range of countries for the management team including sales, operations, project same client, an Austrian company breaking into the design and shadow manager. English-speaking world. • I managed a full-time dedicated project team of four people. The team was temporarily assembled to execute process improvement / a cost saving project. Do you work as part of a team? Yes 18% No 82% I normally bring in experts such as CFO, CSO or COO if needed, however the best turnarounds are carried out by making incumbent management part of the interim team. 15
  • 18. Most Important Qualities in an Interim Manager Interestingly, when asked to rank the most important qualities in Other respondents enhanced the list of “people skills” by an interim manager, survey respondents favoured aspects of adding: being “good in politics,” “inspiring people by “effectiveness” and people skills more highly than specific skills recognising their personal skills,” “coaching on all levels,” and or experience in the job or function. The most important “humour”. Another respondent noted the “willingness and qualities highlighted were: ability to speak one’s mind”. The starting point of a project was also seen as critical, and one individual highlighted the “ability • Ability to work strategically but also implement (19%) to quickly understand the business, people, policies and • Results-focused (18%) crucial processes”. Another noted the advantage of having a • Wide range of experience (15%) “helicopter view”. • Specific skills/experience for specific job (10%) It is clear that each interim executive is unique and brings • Ability to quickly get people on side (10%) distinct qualities to each engagement. One interim manager articulated his “quick hit” list for success in the field: “(1) Get in … analyse the environment; (2) Do your thing … result- focused, independent, resourcefulness based on skills/experience; (3) Get out … so don’t get too close, either personally or socially”. Interim Manager Perspective Ability to work strategically but also to implement 19% Results-focused 18% Wide range of experience 15% Specific skills/experience for specific job 10% Ability to quickly get people on side 10% Independence 9% Ability to mentor 7% Not side-tracked by company politics 6% Willingness to speak mind when required 4% Resilience 3% 0 100 200 300 400 500 600 700 800 Number of Mentions 16
  • 19. Client Data Ninety percent of interim management assignments from the Type of Client candidates we surveyed were with clients in the private sector, with larger corporations (over 250 employees) comprising 42% of assignments and SMEs (small to medium-sized enterprises 2 having under 250 employees) commanding a 48% share. The % 8% public and not-for-profit sectors use interim management less in Europe, with merely 10% of assignments, compared to the UK, where their share of assignments in our survey is 24%. 48% 42% Small to medium-sized enterprises (< 250 employees) – 48% Larger corporations (> 250 employees) – 42% Public sector organisations – 8% Charitable organisations – 2% Industry in Which Interim Managers Surveyed Completed Last Assignment Industrial / Manufacturing 308 IT / Telecoms / Technology 173 Business Services 85 Financial Services / Banking 79 Retail / Distribution 76 Health / Medical / Research 68 Building / Construction 48 Media / Marketing / Entertainment 46 Government / Public Sector 40 Transport / Logistics 38 Professional Services 36 Natural Resources / Utilities 22 Leisure 20 Charity / Not-for-profit / NGO 9 0 50 100 150 200 250 300 350 Number of Respondents 17
  • 20. Conclusion We are grateful to the 1,156 European executives who Most interim managers in Europe source their own work, participated in our most recent online surveys. With more networking amongst colleagues to identify opportunities: than 20 multiple-choice and ranking questions, and the More than 70% of assignments were found without help of opportunity to provide detailed comments (which many an interim management provider or recruitment agency. did), this was no small ask. However, when agencies are involved, it is the recruiters who focus on interim management who garner the largest In the figures published in this report, we see the continued share of the market. impact of the global economic crisis; however, we also see it lifting. Today’s interim managers are more likely to be on The main motivations for engaging an interim manager are an assignment, and feel somewhat more busy than two progressive company challenges – change management, years ago. Daily rates have levelled out, following a crisis management, implementing a major initiative – rather decline reported in 2009. In 2011, 62% of interim than the traditional “gap filling” reasons like bridging an managers surveyed reported they are earning the same illness, secondment or slow permanent recruitment. now as a year ago. However, interim managers most often work alone, with only 18% having worked in the past two years as part of a Openness to permanent employment continues, with 81% team of interim managers. of interim managers reporting that for the right role, they would return to permanent employment. Some of this We hope you have enjoyed The Interim Report. If your desire for permanence and stability is no doubt due to the company or organisation needs skills, management current climate. Firm commitment to interim management capacity, or to implement a turnaround, major project or as a career is stronger in countries with a longer history of corporate restructure, call your nearest Executives Online interim management, as are the daily rates achieved. office today to discuss how an interim executive from Executives Online can help. About Executives Online Executives Online is an executive recruitment company that harnesses the internet to accelerate the search process. This delivers exactly the right candidates quickly, for interim or permanent executive roles, in order to redress loss of competence and protect competitive advantage. What makes us different is our award-winning online talent acquisition engine which can be deployed instantly, worldwide, saving you time and money. Our vision is to transform executive recruitment. We have developed a Global Talent Bank which today numbers over 100,000 pre-screened senior executives which we utilise to service our clients’ needs locally, a growing and constantly refreshed source of senior talent. Each search of our Global Talent Bank for candidates we undertake is individual and specific to the client’s requirements to ensure that we deliver exactly the right candidate to our clients, at market rates, every time. Our access to talent is online and global – but our client service is personal and local, via each of our growing network of offices. 18
  • 21. "A consultant might draw up a great "We chose the interim management route strategic plan, but companies today want early on to help us keep pace with our more than this, they need someone who expansion plans. New challenges were on can cope with the strategy but even more the horizon and we needed additional importantly deliver it too. For that mix of executive management support, fast. I abilities you need interim managers. They was pleasantly surprised when a number are prepared to roll up their sleeves and of highly suitable candidates were get stuck in with your management team – proposed [by Executives Online], all within not sit on the sidelines giving advice. You a matter of days. The appointment can get a senior interim manager, who immediately brought us new momentum perfectly matches your business, on board and greater focus. We were delighted with incredibly fast. With interims – from that Peter's contribution." first call to an interim supply agency, you can have someone through the door, and David Cole Managing Director, Buyenergyonline delivering in a week." Duncan Sedgwick CEO, Energy Retail Association "Greg brought to The Carphone (former Business Transformation Director, Powergen) Warehouse his obvious experience and knowledge which he gladly shared with others. He hit the ground running, quickly "Our brief was unusual – great product putting all the necessary protocols and and great-track record but small company support systems in place. But more (with 12 staff currently employed in our UK fundamental than this, he gave our team division) no market awareness, and no a lot of confidence. At a time when they infrastructure. So the typical high flyer, could have felt under enormous pressure, with a background in majors and he made them believe in themselves, and multinationals wouldn’t be right for us. We not be intimidated by the challenge. needed someone of that calibre but with He wasn't cheap but I didn't want cheap, totally different experience. I was instantly I wanted good – and that's certainly what impressed with the professional nature of I got. Companies like ours can't afford to Executives Online’s site and with the fact have plans put on hold while we recruit. that they place interims as well as That's why we went to Executives Online permanent staff, since I believe anyone – and once again, in days that had found good enough and confident enough to be me just the person I needed." placed in short term projects must have top class skills." Attiq Qureshi Hosting and Support Director, The Carphone Warehouse Vilosh Brito MD, Information Edge 19
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