Interim Management - Frequently Asked Questions (FAQs)
We're often asked questions about interim management. Here we've provided answers to some of the most frequently asked questions
Who Uses Interim Management ?
Organisations increasingly appreciate the effectiveness and cost efficiency of interim management. There is now a realisation that interim management can be used not just for a crisis but to deliver strategic change without involving one of the "Big" consultancies or tying the business to long-term employment commitments.
Demand for Interim Management Support
- Implementation of a new strategy
- Business restructuring
- Supplying specialist skills and expertise
- Business turnaround
- To cover the length of time it takes to effect a permanent appointment
- To cover sudden departure of key executive
- Inability of client to fill a key vacancy
- Setting up a new division
- Allowing another director to work on other important assignments
- To help with a merger or acquisition
What are the Features of Interim Management ?
Executive interims:
- can be in a client's business within days of an enquiry
- are "sensibly overqualified" - so start delivering results immediately
- bring a lot of objectivity and no political baggage
- aren't looking for a permanent role - so are non threatening
- thrive on their reputation - so are highly motivated
- will deliver results not just recommendations
- typically save clients at least five times more than the fees
- after the assignment is complete - will move on to their next...
What's the Difference Between Interim Management and a Temporary Manager ?
Temporary Managers |
Interim Management |
Promotional or sideways move ? |
Sensibly over-qualified and over experienced |
Develop into role ? |
Been there, done that already |
Longer to deliver results |
Deliver greater savings faster |
Job description "matched" with database CVs ? |
Brief taken including skills profile, candidate profiling, references taken, interviews & support |
PAYE |
Operate limited companies |
Want lower risk permanent roles |
Thrive on competing in the interim market |
At client's risk |
Professional indemnity insurance |
Less expensive per day |
Sensibly more expensive per day |
OK for low risk roles |
Best value for higher value/risk assignments |
. IR 35 ? |
Back to back contracts to mitigate risk of five figure IR 35 tax demands |
What's the Difference Between Interim Management and Management Consultancy ?
While many junior management consultants are "learning on the job" executive interims are sensibly overqualified for the assignment so that they "hit the ground running".
However closely they work with the client, management consultants are ultimately responsible and accountable to their consultancy. An executive interim manager becomes much more accountable to the business' management team during the assignment.
Consultants will conduct analysis but in most cases can only recommend how the solution should be implemented by the client. For example ask supply chain management consultants from one of the "Big Four" to negotiate "the deal" and they're likely to explain that they'll be pleased to advise during implementation (but won't risk taking complete ownership for the delivery of results). An interim manager will not only perform the analysis and make recommendations but will also own implementation, deliver the results and hand you the savings.
Management consultants' fees are thousands of pounds per day higher than an executive interim because of the perceived value of the consultancy's brand.
Why a Career in Interim Management ?
An interim management career often means more challenging projects and opportunities to demonstrate outstanding levels of performance than can reasonably be expected in most permanent line management roles.
Interim management can be a rich source of variety and intensive career enhancing experiences: different industries, product/process technologies, solutions to business challenges, IT, organisational structures, and cultural styles etc.
Executive interims have direct control of their remuneration, a greater choice regarding the mix of part-time/full-time work, working from home and the frequency and duration of holidays. Specialising in interim management also means that a really challenging career doesn't have to come at the expense of unsettling the family by relocating every three or so years.
Success in interim management jobs is usually reflected by high levels of utilisation. Consistent with the higher degree of risk involved, successful interim management careers typically offer higher standards of living than comparable permanent roles.
Furthermore (subject to IR35 legislation), interim management through a limited company can reduce tax liabilities. For example: taking a lower base salary, topped up by say quarterly dividends from profits reduces otherwise expensive NI liabilities. The costs of: IT, office furniture, consumables, some utilities and vehicle running costs can also be borne by the business (saving PAYE and NI) costs. Where applicable VAT on these expenses can also be reclaimed.
Because of their objectivity, interim management roles are arguably subject less to office politics than permanent line management roles.
A career in interim management often encourages the development of a broader network of business and social contacts.
An executive interim can spend quality time and extended holidays with his or her family between interim management jobs.
Some would argue that today there's no such thing as a "permanent line management role" and that interim management can improve career longevity.
What Are the Downsides of Interim Management ?Economic downturns can directly impact an executive interim's utilisation irrespective of how successful their interim management career has been to date.
Running a limited company as an executive interim involves a fair amount of tedious administration: invoicing, VAT returns etc.
A career in interim management often means working away from home for extended periods. |
