Executive Corner This is a fortnightly column featuring leaders in the executive search industry Hiring experts on an as needs basis By Marc-Yannick Ceyton Interim managers can make a major impact when handling short-term projects The concepts of executive leasing and interim management have been around since the late 1970s. They involve the supply of experienced, self-employed managers to individual clients for a limited period of time as specified by contract. It is a service provided by professional organisations, which can draw on their network of contacts in the field and an extensive pool of experienced candidates. In times of rapid corporate expansion or of prevailing economic uncertainty, it makes sense for companies to consider options which allow them greater flexibility and the chance to draw on specific expertise as and when it is needed. When looking to take on interim managers, they will assess certain key points. These include cost effectiveness, the exact skills needed for a project, whether the requirement is to have a catalyst for change or to improve current systems, the level of authority to be delegated, and if the interim manager is to work independently or as part of the corporate team. The employer will also have to consider the preferred location and the basis for payments?hourly, daily or monthly. By finding the right balance, companies can generate growth, improve productivity and increase profits without increasing permanent headcount. Alfred Chown, principal of E.L Consult, which has been providing interim managers since 1988, makes a compelling case. "They are an effective solution since they cost less in total terms than a full-time employee, entail fewer liabilities, and can focus exclusively on the projects they are assigned," he says. With their skills and industry knowledge, they can also encourage greater professionalism and give new perspectives to any colleagues they deal with in the workplace. Mr Chown says that most such managers are in fact over-qualified for the projects they take on, but are motivated by the chance to deliver results, not status or financial rewards. The client pays only for the work done on a fee basis. Database records Firms like E.L Consult will maintain records on several hundred individuals suitable for such placements. All are high-calibre and have clearly defined competencies plus extensive project experience. Usually, agreements are signed which give the consultancy a certain percentage of the total amount earned. A shortlist of candidates is then submitted for the employer's consideration before all terms are finalised. Typically, these short-term managers are self-employed former executives who are glad to pass on their expertise to the next generation. They can enjoy variety and a degree of flexibility as projects rarely last more than six months. In many countries, these arrangements also provide tax advantages. Furthermore, there is the challenge of solving new problems and achieving set goals within a strict timeframe. Corporate activities can be broken down into individual projects and outsourced on a more flexible basis However, for many people the most attractive part is being able to decide when to work and when to scale back, without being caught up in the year-round corporate grind. There may be some uncertainty about how and where the next contract will materialise, but most interim managers have taken this path because they have fewer financial concerns and are comparatively mobile. With so many apparent advantages, you might assume that agencies providing these services are overwhelmed by demand. However, as Mr Chown admits, "There is still the perception that interim managers are inherently expensive, somewhat exotic and out of the reach of most companies." Paradoxically, employers will still call in consultants to analyse their business processes, and then not implement the overall findings. Yet most corporate activities can be broken down into individual projects and outsourced on a more flexible basis. Core group He suggests that the ultimate model for consistent productivity might be to have a core group of employees complemented by a fluid workforce engaged for specific projects. If companies are prepared to adopt this more entrepreneurial approach, executive leasing is likely to become a central part of their HR strategies. Decisions about such things are invariably determined by the bottom line. Mr Chown cautions against looking only at comparative salary payments. He says that an interim manager may appear costly if a company simply assesses time on the job, but there are generally many long-term financial benefits which are not immediately apparent. When experts are brought in, they can implement practices to reduce overheads, enhance productivity and root out inefficiencies. A more recent concept sees the service provider offering employers a comprehensive form of outsourcing which takes over much of their HR function. This can involve handling everything from payroll to recruitment and, if structured well, can save costs and allow company staff to attend to other non-administrative duties. After a critical analysis of exactly what kind of staff they really need, companies may turn increasingly to these options. Executive leasing or more broad-based outsourcing are both extremely viable and, as their cost effectiveness becomes more widely appreciated, they are sure to attract ever more attention. Specialist skills Provide an organisation with specialised skills as and when needed Catalyst, rainmaker or motivator can restructure or improve various company projects Able to set up new company systems Cost effectiveness and flexibility Exact match of skill sets for any project Mobility means contractors can be deployed around the world Paid on an hourly, daily, weekly or monthly basis Wealth of experience is available Taken from Career Times 17 June 2005 Your comments are welcome at [email protected]