Interim Management

Induction Workshop

Simon Berry

Ian Daniell

Objectives

• To provide you with the information and

tools to help you:

– Decide if Interim Management is the career

choice for you

– Successfully develop a career as an Interim

Manager

Agenda

• What am I looking for?

• What are interim managers?

• How does the Interim Management market work?

• What are the Critical Competencies of IM‟s and how do I stack up against them?

• How do I find work?

• What do I need to consider in setting up my own business?

• Pulling it all together – what should I do next?

Personal Change

No need ActDECISION CYCLE

SA

TIS

FA

CT

IO

N W

ITH

ST

AT

US

QU

O 100%

WHERE ARE YOU?

WHY ARE YOU HERE?

What do I want?

Spend five minutes individually answering the questions:

• What do I not want from my career?

• What do I want from my career?

Consider such things as:

• The type of industry/company you want to work for

• The type of work you want to do

• Where you want to do it

• How much you want to do

• The rewards you want/need inc. money

• Any other „lifestyle‟ considerations – family etc

Introductions

• Name

• Background

• Current Situation – why you are here

• What you hope to gain from the workshop

My World

COMPETITION

MEWHAT DO I WANT AND NOT WANT?

WHAT ARE MY RAW MATERIALS – TIME, SKILLS,

KNOWLEDGE, EXPERIENCE?

HOW HAVE I APPLIED THEM – WHAT PROBLEMS

HAVE I SOLVED?

ENVIRONMENTAL – POLITICAL, LEGAL,

CULTURAL, ECONOMIC, TECHNOLOGICAL

MARKETS

AND

CUSTOMERS

SUPPLIERSSTAKEHOLDERS

ROUTES

TO

MARKET

My World

COMPETITION

ME LTD

ENVIRONMENTAL – POLITICAL, ECONOMIC,

LEGAL, CULTURAL, TECHNOLOGICAL

MARKETS

AND

CUSTOMERS

SUPPLIERSSTAKEHOLDERS

ROUTES

TO

MARKET

CEO

FD HRD S&MD R&DD

Key Business

Processes

IDENTIFY

OPPORTUNITIES

QUALIFY

OPPORTUNITIES

SUBMIT

PROPOSALS

ATTEND

INTERVIEWS

CONTRACT

AND DELIVER

DEVELOP

MAINTAIN

BUSINESS

STRATEGIC

PLANNING

MANAGEMENT

AND

FINANCIAL

REPORTING

PEOPLE

DEVELOPMENT

PROCESSES

PERFORMANCE

MANAGEMENT

PROCESSES

MA

NA

GE

ME

NT

PR

IMA

RY

SU

PP

OR

T

What to sell

Who to sell to

How to differentiate

How much to sell

SATISFIED CLIENT

Right skills,

knowledge, attitude

Focused &

motivated

OPERATIONAL

SUPPORT

PROCESSES

Operational

support

The IM Market

The Constituent Parts, their roles

and how they fit together

Aims of the IMA

The IMA principal aim is the development of

Interim Management as a powerful and

leading management resource, by

collective action and by promoting the

common interest of all its members, based

on the highest standards of professional

service.

Aims of the

IMA-Institute

The Institute is the professional body of the

IMA representing individual Interim

Managers.

Individual membership assures the

marketplace of the highest quality of service

and professional standards of an Interim

Membership of the

IMA-Institute

• Membership provides opportunities for targeted CPD, relevant news and information, and a range of other benefits, plus significant insurance discounts, including mandatory PI.

• Discount code IW10 for 10% discount

• Members can apply the logo and the letters M.I.M.A. on business cards and stationary

What is an IM?

An executive or senior manager who

works within an organisation at or

near board level on a temporary or

part-time basis

Position

Practitioners of insolvency,

turnaround specialists

Interim management:

Technical ability, GM

experience, specialist

skills

Low level roles

Temporary executives

Functional skills

Competency Profile

Research on competencies and aptitudes of a successful Interim Manager

• IMA / Saville Consulting completed “industry-first” academic research (Nov 08)

• Concurrent analysis concluded on 300 successful Interims (Interim; Job Profiler; Client; Provider questionnaires). Daily fees ranging from £600 to £5000

Competency Profile

Behavioural determinants of IM success -

6 underlying competencies

•Quick Working

•Continuous Improvement

•Deadline Focus

•Action oriented

•Results oriented

•Accepting Change

Competency Profile

Providers identified 6 further competencies

that should underpin Interim behaviour :

•Upholding Standards

•Meeting Timescales

•Showing Composure

•Embracing Change

•Interacting with people

•Pursuing Goals

28%

27%

17%

12%

2%

1%

1%

1%

1%

10%

Programme/Project Management

Gap Management

Business Improvement

Change or Transition Management

Rapid Growth

Start Up

Turnaround

Crisis management

Mergers and acquisitions

Other

Q2 2010 Breakdown

Base: 423 Assignments

NO LONGER JUST

A DISTRESS

PURCHASE

Size of Market &

Growth• Billings through Intermediaries c£250m pa

• Total Market c£1bn pa in UK, €3500mn in

Europe

Via Intermediaries £250m

IMA members = £158mn

Total Market £3/4bn - £1bn

Consultancy Market

measured in £10‟s billions

Performance

Improvement

ANALYSE DESIGN IMPLEMENT MAINTAIN

CONSULTANTSINTERIM

MANAGERS

IN HOUSE

TEAM

Call consultancy Call service

provider or IM

Call consultancy

or consultant

Call service

provider

Consultant, or Interim?

Consultant

• Accountable to

consultancy

• Advisor/facilitator

• Recommends

• Intervene as needed

Interim

• Accountable to client

• Line

responsibility/doer

• Designs and

implements

• Full or part time

intervention

Why do clients use

IM‟s?

• Flexible and versatile

• Available quickly

• No fixed overheads

• No/short learning curves – hit ground running

• Sensibly senior and „Over-qualified‟

• New ideas/best practice

• Highly motivated – hands on, results focused

• No pre-suppositions or „baggage‟

TO GET RESULTS QUICKLY!!

How much are they

paid?

Depends on:

• Quality of fit

• State of the market

• Location

• Duration

• Benefit to the client

Which equates to ….

Typical daily rates in the UK for an IM:

• £1500.00+ (CEO, MD, Functional Director of large multi-national)

• £1000.00+ (CEO, MD, Functional Director of medium/large multi-national)

• £800.00+ (General Manager, Divisional MD, Functional Head of

medium sized national/international business)

• £650.00+ (General Manager, Functional Head of a small business)

• £500.00 +/- (Senior Manager)

Typically a service provider will add a mark-up of 25-40% on these daily rates

Market Structure

ClientsService

Providers

Interim

Managers

Associations

75%

25%

SUCCESSFUL INTERIMS GO DIRECT AND USE SERVICE PROVIDERS

Direct and Other Routes to Market

IMA Institute

PCG, IIMIMA CBI

The life of an IM

• Split into two groups and put yourself in

the shoes of an interim manager:

– Group A - What points do you believe are in

favour of the life?

– Group B – What points do you believe are the

downside of the life?

NB You may disagree!!

– 10 mins and then present back

Commitment

Those who are successful Interim

Managers have made the move as a

career choice.

The Role and Needs of

a Service Provider

To successfully partner with clients and interim managers to deliver results by:

• Winning assignments

• Placing the most suitable candidate not to sell you

• Supporting the candidate and the client throughout the assignment

This is a joint venture between all parties

To achieve this…

• Need to know you are committed to a career in interim management

• They need to be very responsive to clients and need you to be very responsive to them

• They need a straightforward, factual CV

• Want you to build relationships with them (this means you need to target and keep them updated)

Service Providers

Client

Need

Identified

Service Provider

Client Manager

Identifies shortlist

Business Meeting

Gets references

Brief

Proposal of

Candidates

Selection

Criteria

Suitable

Candidates

Interim Managers

Submit CV‟s

CV‟s

Relationship

Service Provider’s

IM Database

Need for Speed

Brief to proposal = 24-48

hours

And in return

• They give you the opportunity of winning

suitable assignments

• Negotiate the fees

• Offer support during assignment

• Agreed payment times vs. invoice chasing

(varies amongst providers)

What makes a successful IM?

Before and on assignment

For most permanent

appointments Executives have

their first 100 days to manage

their transition and prepare for

action . . .

typically you have 5 days!

Quantitative Research

• Alium Partner‟s annual market survey

– 3400 questionnaires sent out

– 650 completed, covering full cross-section of

– interim management roles and functions in both private and public sectors

• Additional questions around process of engagement

Establish

credibility

Fact finding

Learn about business

Engage key staff

Build relationships

Agree

Objectives

Clarifying the way ahead

Identify quick wins

Diagnose issues

Root causes identified

Scope issues

Re-negotiate objectives

From Contract to Action

Key Qualities

• the capacity to learn and adapt

• insight, intuition and sharpness of judgement

• concern both for task and for people

• independence from politicking whilst being

acutely politically aware

• toughness and resilience

• action orientation and restlessness

…and the sheer pace at which they think and get

things done

Change

Designing and Implementing

BUT

• Nothing fails like success!!

• How do you lead change successfully in

different organisations?

• How do you strike the balance between:

– Showing your competence

– Not making dangerous assumptions

Improving Performance

Management

Focus

Business

Environment

Project Scoping

Critical Business

Issues/Opportunities

Critical Process

Issues

Process

Redesign

Project

ImplementationProject Management

Change ManagementScoped

ProjectRedesigned

Process

Process

Management &

Improvement

Effective Processes

People

Management

Redesigned process

Measures

Accountability

La

stin

g a

nd

su

sta

ina

ble

Ch

an

ge

Roles

Relationships

Objectives

Your Experience

A potential client says to you:

“I recognise you have had success in other

organisations in this area but what can you

tell me that will convince me that you can

repeat the same success here as quickly

as you say you can?”

Marketing

Creating Awareness

Marketing

• The buying process

• Your target markets

• Your routes to market

• The Business Meeting

• Your collateral

– CV – Service Provider & Direct

– Brochure, Website, CD

Key Business

Processes

IDENTIFY

OPPORTUNITIESQUALIFY

OPPORTUNITIES

SUBMIT

PROPOSALS

ATTEND

MEETINGS

CONTRACT

AND DELIVER

DEVELOP

MAINTAIN

BUSINESS

STRATEGIC

PLANNING

MANAGEMENT

AND

FINANCIAL

REPORTING

PEOPLE

DEVELOPMENT

PROCESSES

PERFORMANCE

MANAGEMENT

PROCESSES

MA

NA

GE

ME

NT

PR

IMA

RY

SU

PP

OR

T

What to sell

Who to sell to

How to

differentiate

How much to sell

SATISFIED CLIENT

Right skills,

knowledge, attitude

Focused &

motivated

OPERATIONAL

SUPPORT

PROCESSES

Operation

al support

CREATE DEMAND

WHERE TO GO, WHO TO SEE, WHAT TO SAY

IMPLEMENT

DEVELOP

QUALIFY

PROPOSE

CONTRACT

EXIT

Buying Process

• Environmental change

• Business Issue/Opportunity

• Solution Options

• Solution Selection

• Project Definition

• Potential Supplier Identification

• Business Meetings

• Supplier Selection

THE EARLIER YOU GET

INVOLVED THE GREATER

YOUR CHANCE OF

INFLUENCING THE

PROCESS AND WINNING

THE ASSIGNMENT

AWARENESS

PREFERENCE

LIKING

KNOWLEDGE

INTEREST

Aware of your existence

Identifies a potential value in

the relationship

Recognises your unique ability

to meet their needs and trusts you

Feels an affinity or closeness with you

Starting to gain a real

understanding into your uniqueness

Hierarchy of

attraction

People judge you

based on ..

CREDIBILITY

COMPETENCE

COMPATIBILITY

HOW PEOPLE JUDGE POTENTIAL IM'S

Client Duck Shoot

I need convincing

• They understand my problem

• I believe they could help me solve it

• They have credibility – they‟ve have done it

before

• They know and can overcome any objections I

may have

• They minimise the risk for me

Market Segmentation

Most of the time Service Providers and clients are looking for the perfect fit?

1. Experience in the Job Role (function) in a similar sized company

2. Experience in the sector

3. Successful track record of results delivery in the „problem‟ they face

A mismatch in any of the above will (usually) reduce your chances of winning the assignment (especially point 3) certainly for your first few assignments

SEGMENTATION

FUNCTION

SE

CT

OR

How else might you

segment?

• Size of company

• Location of company

• Culture of company

• Stage of growth

• Ownership

• Common target markets/clients

• Situation, context (problem faced)?

Define Your Product

SK

ILLS

KN

OW

LE

DG

E

QU

ALIT

IES

EX

PE

RIE

NC

E

APPLICATION

WHAT PROBLEMS DO YOU SOLVE? WHICH HAVE YOU SOLVED

REPEATABILITY

WHAT PROCESS DO YOU USE? HOW DO I KNOW YOU CAN REPEAT IT?

RAW MATERIAL

VALUE TO THE CLIENT

Generic Value

PropositionMany clients I speak to in the (target market)

Face the issue of (what specifically)

Based on my (key knowledge, experience, skills, qualities)

I have the ability to (contribute what specifically)

resulting in (type of business improvement, with examples)

for (target market) like yourself

Your Product

Build your Value Propositions – 30 mins

• Identify the problems you have solved

• Clarify why it was about you uniquely that led to you being able to solve them (skills, knowledge, experience, qualities)

• Quantify what the business benefits were

• Identify the type of clients who you believe probably face this problem

• Discuss with a partner

Example

Based on my knowledge and experience of

relocating (electrical component)

manufacturing facilities from the (UK) to

China, I am able to dramatically reduce

the time, costs and disruption of doing so

and help companies adopting this strategy

to rapidly deliver significant business

benefits.

Routes to Market

Going Direct

• Going direct you may need to sell the

concept of „Interim‟

• Research the organisation

– The issues they are likely to face

– Identify who you need to speak to

• Follow the „duck shoot‟

– Include a call to action – what you want

• Enlist the help of the gatekeeper

Routes to Market

YOU

YOUR PRODUCT

YOUR

COMPETITION

YO

UR

MA

RK

ET

SE

GM

EN

TS

WHAT ARE YOUR

POTENTIAL

ROUTES TO MARKET?

GOING ‘DIRECT’, YOU WILL NEED TO SELL

THE CONCEPT OF AN INTERIM

Routes to Market

YOU AND

YOUR

PRODUCT

YO

UR

TA

RG

ET

MA

RK

ET

SE

G E

NT

SYOUR ROUTES TO

MARKET

SERVICE PROVIDERS

CONSULTANCIES

TRADE EXPOSURE

PAST EMPLOYERS

CONFERENCES

WEB EG LINKED IN

TRADE SHOWS

CHAMBER OF COMMERCE

BANKS

ACCOUNTANTS

EXECUTIVE SEARCH CO‟S

ALUMNI

VC COMPANIES

JOB ADVERTS

PERSONAL NETWORK

NETWORKING EVENTS

Networking

A key element of your marketing

strategy whether direct or through

service providers

Networking

Over coffee

• Select 2/3 people you have not

interacted much with so far

• Interact with them!! (4 mins max)

• Be prepared to report back on the

experience!!!

How was it for you?

What worked and what didn‟t?

• Were you clear about what they were all about?

• Were they interested in what you were all about?

• Did you swap business cards?

• Did you identify opportunities to help each other?

• Would you see them again?

Collateral

Business Cards

CV

Business Cards

• Company Name

• Logo

• Address

• Content

• Quality

– Paper

– Printing

• Using the reverse?

Your CV

• Your CV needs to demonstrate:– Your competence – what you can do

– Your credibility – proof you can do it

– Your compatibility – how you could work with them

• It should clearly show:– Where you worked and at what level with a coherent role progression

– WHAT YOU ACHIEVED WITH NUMBERS WHERE POSSIBLE

• Service Providers – Do not want fancy formatting, pictures, tables

– Need you to keep it updated

– Are wary of „vague‟ competencies, cliches – be as specific as possible

– Use search engines so use common key words and phrases of your discipline

• Your CV should be tailored for each potential service provider

• No more than two/three pages (check with Service Provider)

CV LayoutNAME

BRIEF SUMMARY STATEMENT OF WHO YOU ARE AND WHAT YOU DO

IN REVERSE CHRONOLOGICAL ORDER

DATE STARTING AS IM AND RECENT ASSIGNMENTS/ACHIEVEMENTS

DATES - COMPANY – ROLE

• KEY ACHIEVEMENTS

PERSONAL DETAILS

CONTACT DETAILS – IF NOT WORKING WITH A SERVICE PROVIDER

ADDITIONAL RELEVANT SECTOR DETAILS

• FACTORS WHICH YOU BELIEVE COULD SET YOU APART

• PROFESSIONAL BODIES/ QUALIFICATIONS

FIRST HALF PAGE IS VITAL

The Business Meeting

Objectives

• Qualify the opportunity

– Can I do it?

– Do I want to do it?

– Can they afford it?

– When will they need me?

• Win it!!

Preparation

• Be prepared to attend at very short notice

• Research more deeply and make no

assumptions

• Do all you can to get a brief prior to meeting

• Think about potential objections and how you

would answer them

• Sell yourself but still meet the client‟s objectives

• Focus on the most relevant pieces of your

experience

At the Meeting

• Ask questions– Help the client diagnose the issue and gain clarity

about what they really need

• Give Information– Clearly communicate how you could help

– Clearly communicate your track record of delivery

• Confirm– Scope, reporting, support, contracts, terms

• Handle Objections– Listen carefully and handle any objections the client

may raise

After the meeting

Following the business meeting you are in a position to develop a proposal or summary of agreement

As a result of my (service/product)

You will be able to (do what specifically)

Resulting in (quantified business improvements)

For (total investment costs)

With economic payback achieved within (timeframe)

We will document our delivered value by (results tracking system)

Handling Objections

• Objections are only to be feared if you

can‟t answer them

• Objections do not necessarily mean the

person does not want to move ahead with

you

• Objections expressed openly help you sell

Handling Objections -

Part 2

Practice – 10 mins

• Take it in turns to give the „opposition‟ an

objection

• Enact the „role play‟

Trading through a Limited

Company

Graham Shove

Competex Ltd

Specialist Accountants

Trading Formats

• Self Employed

• Limited Company

• Revenue and Customs approach

What is your status?

• Not on client payroll

• Client‟s expectations

• Not on agency payroll

• Agency requirements

Why do I need a

Limited Company?• Agency avoids employment agency regulations

including PAYE

• Client avoids legal burden of employing a permanent member of staff – minimum wage, SSP, maternity, redundancy, etc

• Client has no hidden employment costs – pensions, holiday pay etc

• Being employed by your own company is proof that you are not employed by your client or the agency

Company officers etc

• The shareholders own the company and

share any profits

• The directors operate the company and

carry full legal liability for their actions

• The company secretary is a servant of the

company responsible for statutory matters

• The employees work for the company in

return for a salary

Every company must

have• At least one shareholder

• At least one director

• A registered office

• A (registered) accounting year end

• All this information is available to the public via

Companies House

• A Company Secretary is no longer required (but most people still prefer to have one)

Company documents

• Memorandum & Articles of Association

• Certificate of Incorporation

• Share certificates

• Statutory books

Share Capital

• Authorised share capital• Say, £1,000

• Issued share capital• Say, £100

Initial tasks

• Open company bank account

• Register for VAT

• Register for PAYE

• Register for Corporation tax

• Change of year end (optional)

Banking decisions

• Branch banking or direct (internet)

banking

• Which bank

Bank opening

procedure

• Lengthy documentation

• Incorporation documents

• Proof of identity for officers

• Corporate and personal vetting

• Personal interview

• RBS Business Banking Direct (0800 783

9777)

VAT – Why register?

• Mandatory if annual income exceeds

£70,000

– Voluntary registration under £70,000 enables

VAT to be reclaimed

• Very little accounting work involved

• Looks professional

VAT registration

requirements

• Registration involves completing a 10

page document or can be done online and

takes up to 6/7 weeks to be processed

• Company must have been incorporated

• Company bank account number and sort

code must have been issued

• You must have started or be imminently

about to start your first assignment

PAYE Registration

• Every company must register for PAYE

Statutory requirements

for Letter Headings

• Name of company

• Place of registration (i.e. England and

Wales)

• Company number

• Address of registered office

• Names of all the directors (or none of

them)

Optional components of

Letter Headings

• Address of principal place of business (if

different from registered office)

• Telephone & fax numbers

• E-mail & web site addresses

• VAT number (so that letterheads can be

used for invoicing)

Statutory requirements for

E Mails and Websites

• Name of company

• Place of registration (i.e. England and

Wales)

• Company number

• Address of registered office

And in addition:

• Website must show VAT No.

Keeping accounts

• Keep all receipts and invoices from now on. A

shoe box is ideal

• Pay for all expenses initially out of your own

personal resources

• Summarise your expenses regularly and

conscientiously at the end of each month,

extracting details from:-• Personal bank account(s)

• Personal credit cards

• Cash transactions

Keeping accounts

The office diary

• Use your office diary to record the

following:-

• Time spent on client business and details

of events etc

• The nature of the work that you are doing

• Travel

• Detailed car mileage

• Cash transactions

Countering avoidance

IR35

• Introduced to stop directors paying

themselves mainly dividends and little

salary to avoid paying National Insurance

IR35

The rules

• If your work falls under IR35, then 95% of

the fees and expenses you earn (less

certain expenses of employment) have to

be paid as salary to you, the person who

has earned those fees

The Interim Manager

under IR35

• You are working under IR35 if you are:

– doing work that an employee would do

– standing in for a director/manager

Replacing an employee

The Interim Manager

outside IR35

• You are working outside of IR35 if:

– Your assignment is project based

– OR

– You are giving advice to client and client‟s

staff carry out your recommendations

IR35 - Neither one

nor the other

• Different streams of income

• Take legal advice rather than consulting

Revenue & Customs

• High Street lawyers

Dividends v. salary

• Market Salary

• Transfer of taxable income from high

taxpayer to a low taxpayer by the use of

dividends

• Income shifting

• Separate bank accounts

Calculation of daily

rate• You must factor in the following:

• You will work less days in the year

• Out of your fee income you will have to pay for:– Employers NI @ 12.8%

– Pension contributions

– Private health insurance

– Car

– Office equipment

– Professional indemnity insurance

– Accountant‟s fees

Choice of accountant

• Self

• High Street accountant

• Specialist accountant

What will it cost?

• You should not have to pay more than

£1,500 pa

• One-off set up fee

• Fees paid out of pre-tax fee income

The specialist

accountant• Incorporates company electronically

• Provides Company Secretary and registered office

• Offers streamlined banking arrangements

• Registers company with all Government authorities

• Runs variable payroll and fulfils statutory obligations

• Offers affordable fixed fee structure

• Help from people who understand your business

www.competex.co.uk

• “the largest single source of information on the internet for interims and consultants”

• Check out banks, insurance products, agencies

• Associations and links

• Writing your CV

• Building and using a network

• News, views, events

• Pensions and healthcare

• Dedicated client‟s section

….and much more!

www.interim-hub.com

“the largest single source of information on the internet for interims and consultants”

www.competex.co.ukHomepage

www.competex.co.ukStarting Interim Management

www.competex.co.ukStarting Interim Management >

Providers/Agencies Search

www.competex.co.ukStarting Interim Management >

Providers/Agencies Search

www.competex.co.ukBecome a Client

www.competex.co.ukNews, Views, Events & Links

www.competex.co.ukExisting Clients > Log In

www.competex.co.ukCompetex Affinity Group

www.competex.co.uk

• “the largest single source of information on the internet for interims and consultants”

• Check out banks, insurance products, agencies

• Associations and links

• Writing your CV

• Building and using a network

• News, views, events

• Pensions and healthcare

• Dedicated client‟s section

….and much more!

Next Steps

What now?

Summary• Be clear about what you want and don‟t want

• You are a limited company offering business services, not someone looking for a job

• Most first assignments are won direct, but don‟t ignore service providers – network, network, network

• Segment your market. You‟ll have a much better chance of creating awareness and interest if you target

• Focus on the client‟s world (existing or potential issues and opportunities) in your marketing and selling – if they have none, there‟ll be no work anyway!!

• Prepare for objections – you know what they will be –ARC

• Getting up to speed quickly is the key to delivery

• Set up a limited company asap if you‟re going ahead