Interim trends, themes and search strategies in a mixed market
By Ad van der Rest of the Institute of Interim Management
The Institute of Interim Management’s recently published Interim Management survey [1] shows an Interim market that remains both tough and unpredictable. The statistic “53% of Interim Managers are on assignment (and 47% are not)” masks a wide variation in work availability across geographies, sectors and disciplines.
The Service Providers I speak to about this, among whom I’m delighted to count Interim Partners as a key source, also talk about a predominantly “sluggish” market, but within that there are good areas and positive signs, as well as multiple “fits and starts”. Service Providers are indicating a gradual improvement from the “bottom” of the market in the third quarter of 2009.
To say that Interim Management has suffered a “Perfect Storm” is over-dramatic, but it does look like it has been a ‘Perfect Squall’.
The economic downturn brought with it a momentary hope that business chaos would bring with it an increased requirement for change management, turnaround, and project management; A need which was there, but stymied by a lack of cash or a fear to spend it. Combined with that constriction in work supply came the flow of “Redundant Senior Managers” (RSM’s) who saw Interim Management as a temporary “port in a storm”, often without any real understanding of what a professional Interim Management Value Proposition entails [2]. Clients, who did engage Interim resources were faced with a swollen market, with RSM candidates of often very close sector fit and an over-eager willingness to accept sweat-provokingly low day-rates.
The net effect of all this is that average day-rates have reduced (by 3%), average billable days fell (by 11%), average assignment length is running at around 9 months, and the average assignment gap is currently just under 6 months. The cumulative effect hit Interim turnover and profitability; A toxic combination.
Yet in all this seeming gloom, Interim Managers retain a great enthusiasm for the Interim Management lifestyle and the freedom it brings. 82% retain a commitment or strong preference for the model, even in this climate.
Evidenced from the Interims I meet at various networking and other events, it is now more problematic, though not impossible, to rely upon a niche skill-set and wait for the phone to ring. In a tough market, a greater level of sales, marketing and networking skills are required from the Interim Manager to win that assignment.
Put simply, there is a requirement for all parts of an Interim Manager’s marketing portfolio to “pull their weight”. The CV needs to be customised to the Interim market, selling an Interim proposition and not simply listing experience [3].
Building a relationship with applicable Service Providers needs to be handled in a more targeted manner [4]. Of the 83% of Interim Managers who utilise Providers, the proportion of work acquired via Providers has increased from the traditional c.40% to 51%. It will be very interesting to see if this is a blip or a trend.
Either way, working with Service Providers in an intelligent manner, as business partners, will improve individual Interim Manager’s visibility as well as allowing their skill sets to be more readily identified and matched by the Provider.
Working with quality Providers is important. The IIM’s recent survey endeavoured to identify the “Leading Providers” from 208 voted for by Interim Managers. I’m pleased that Interim Partners polled at the “top of the tree” with a “Top 5” ranking.
The Internet and Social Media have had a significant impact on Interim sourcing. It is increasingly important to be “easily found online” over “searching for advertised assignments” online.
78% of Interims feel that a LinkedIn profile is helpful or essential. Having a strong online profile and using LinkedIn properly can be a powerful tool to both search and being searched for [5]. Online networking is growing in popularity. The Institute of Interim Management’s own LinkedIn group, “Interim Management - IIM” [6] has grown from nothing to 2,400+ members in just over a year. I’m delighted to say that it was voted as the “best quality” Interim Linked group by over 600 Interim Managers.
Face to face networking remains important, though only 34% of Interims positively enjoy it. Aside of Provider sourced assignments (51%) and direct assignments via prior work contacts (30%), it is the next most important source of assignments (13%).
The upshot of all this, that it is more important than ever to polish each part of your Interim search & marketing strategy, because in a tough market, there is little benefit in leaving anything to chance. Survival of the fittest applies.
Working collaboratively with other Interim Managers, Interim organisations and quality Service Providers will help us all. The Institute of Interim Management, run by volunteer Interim Managers on a not-for-profit basis is working hard to share good practice and build a powerful Interim value proposition to Client organisations, not only on behalf of its individual membership, but to engage with and benefit the whole Interim Management profession, Service Providers included [7].
As 2011 approaches, 50% of surveyed Interims anticipated a market pick-up in 2011. So bring it on…
Ad van der Rest
Ad van der Rest is a volunteer Director of the Institute of Interim Management and moderates the “Interim Management - IIM” LinkedIn group. He is also an Interim HR Director, specialising in HR Crisis, Employee Relations & M&A, so “walks the talk”.
The Institute of Interim Management (IIM) has since September 2002, been a fully independent professional Institute incorporated as a not-for-profit organisation. The Institute is run by a volunteer team of seasoned Interim Managers and is committed to supporting Interim Managers and working collaboratively with other sectors of the Interim Management community.
References to Interim Management surveys, guides and sites:
- [1] Institute of Interim Management Survey 2010
- [2] Interim Management Value Proposition
- [3] Interim Management CVs
- [4] Leading Interim Service Providers
- [5] Interim Management use of LinkedIn
- [6] Interim Management - IIM, LinkedIn group
- [7] Institute of Interim Management