Why are we passionate about measuring ROI?
More than 85% of our Interim Executives now work through our Return on Interim (ROI) methodology.
This is a good stat! It’s up from 42% after we first introduced it. It’s working really well, our clients love it and importantly – we are recording really great outcomes from it.
So what is it? Before we launched Return on Interim, I heard a lot questions from both clients and Interim Managers:
- Is it a system I have to spend time configuring and updating?
- Why do you want to measure me?
- Will performance related pay be an excuse to chip my rate?
- What’s the point? I can measure the performance of the interim myself.
- Is this an attempt to be a management consultancy?
In answer: Return on Interim is the methodology we’ve developed and it’s how we do business at Interim Partners.
We live in age of technology. Our watch can record our heart beat as our phone monitors our home energy consumption. Our clients run complex organisations. They are measuring thousands of variables, where:
- Understanding performance through management information is critical
- Resources are tight
- Understanding the return is essential
The recruitment market is changing too. It’s not good enough for a consultant to provide an anecdotal story as a reason to engage an Interim; it’s not good enough to suggest you have a powerful network in an age of LinkedIn; and it’s not good enough to present candidates’ CVs where you know the detail of their experience but have a shallow understanding of what they will be required to do.
The idea that one’s network or the ability to present a CV should be the sole justification for charging a reasonable margin is now redundant. Clients demand more and we have developed our methodology which gives them more.
Our ROI methodology follows four stages:
Our consultants - in partnership with our client - create a detailed brief which defines the key objectives and weighted milestones within each objective.
Through this process we understand the competencies required, project timelines and relative importance of the desired outcomes. This becomes a powerful tool to communicate the nature of the assignment and provide clarity. Where creating a detailed brief is not possible at the outset, we factor in a period of diagnosis by the Interim Manager and agree a timeline for putting it in place.
We have great networks, we actively talent pool and we interview all our prospective Interim Executives to foster long term relationships.
Many businesses claim to supply Interim Managers and some of them are also able to identify good candidates. Indeed, our clients have good networks and these act as greater competition.
Identification of the good candidates is important – but if you haven’t clearly defined what a great outcome looks at the outset, you can miss the opportunity to find the best person in the market. Identifying the right candidate also means taking detailed references to ensure we are confident they have a proven track record of delivering success – something that is much easier to show when you have measured the objectives, milestones and outcomes.
We align our goals with those of our clients and ensure that our Interim Managers achieve their objectives. Measuring performance sets us apart from other interim providers and this can only be achieved by a deep understanding of the assignment objectives.
We can measure ROI by calculating the cost of engaging an interim against the financial return. Our ROI algorithm takes into account the value of each objective and the progress against it (even taking into account the weighting of each milestone).
Measurement gives us the opportunity to understand the difference between a good outcome and a really great one. We can report how this compares with our clients’ expectations or our experience of similar assignments. Client Stakeholders can examine individual programmes or review the progress of whole teams of Interim Managers.
We can provide an end of assignment report to our clients and candidates that identifies upper quartile performances. Other client stakeholders who procure or recommend our services do not need to rely on anecdotal references.
Clients can clearly see the value that the Interim Manager has delivered and our Interim has a case study to support winning further assignments.
Our goal is to demonstrate our Interim Executive delivered an exceptional outcome due to a defined brief, the right experience and a system to track their performance. All assignments should have good outcomes, but we know we can deliver great ones.
Through understanding the difference between good and great outcomes and – in an increasing number of cases – linking pay to performance, we can incentivise candidates to achieve higher returns for our clients.
Over the course of the coming year I hope to get as close to 100% of our placed candidates using our ROI methodology. Better still, I will be able to report their collective ROI and identify trends and possible pitfalls. In doing so we will provide a powerful argument to support the use of Interim Managers in solving big business challenges.
If you want to find out more about how we can help you solve your big challenges, please get in touch on 020 7936 2865 or email email@example.com.