Case StudiesInterim Managers are often employed to fill a recruitment gap and ensure that an organisation continues to operate smoothly and ongoing projects are not held up.
One such Interim is Richard Harding, an Interim HR Director, who was employed by HM Revenue & Customers for a five month period in its personal taxes division to start some major strategic initiatives before the permanent employee started.
Richard had two key areas of responsibility. One was strategic direction – he was called upon to work with senior business partners to align HR more closely to the department’s business goals. He had to understand the business goals imperatives and then contribute to a long term HR strategy that could achieve them, incorporating elements such as resourcing, workforce planning, talent management and succession. His task was to lay the foundations for a top level HR plan which would be in place by the time his successor arrived and provide a solid platform on which she could build.
The second part of his role was the supervision and direction of 15 junior HR partners who were mainly working at a tactical HR issues. This included looking at attendance management, filling short-term recruitment gaps, grievance and disciplinary procedures and industrial relations. Richard’s role was to work with these junior partners, whose experience varied widely. His challenge was to assist them with the plethora of daily HR challenges, whilst also encouraging them to adopt a more strategic approach to wider, long term, HR issues. Richard’s goal was to change the way in which the junior partners worked, giving them new skills and knowledge of how to operate at a more strategic level.
“Despite the fact that I was filling in a recruitment gap and in place for a relatively short period of time, I still had important goals to achieve. I had to get the ‘buy-in’ of senior managers and business partners very quickly; understand their objectives and then make significant changes to the structure of HR and to the ways in which people worked. Working as an Interim is a bit like jumping on a moving train; you have to get up to speed very quickly in order to make a practical contribution to the organisation.”
“There was a real need to close the gap between strategy and implementation. My experience of working in the public sector and in the Royal Air Force for 27 years certainly helped me as I understand how HR works in the sector. Moreover, I recognised where there might be areas of resistance to change and how we could overcome such challenges.”
Richard’s priority was to work to the brief set by the business directors and ensure that the strategic HR plan was aligned to their goals. As a result, he was able to pass on to his successor a series of pragmatic solutions that could be built on in the longer term.
He concludes “It was a great experience. Interims have to add value quickly; but also learn to let go at the end of the contract. You are only there for a short, intensive, period”.
All change at the Ministry of Justice
Experienced Interim, Jill Griggs, has been appointed as an Interim Business Change Manager at the Ministry of Justice on a project that will run until Autumn 2009. Her work involves a major and strategic programme of change in HMCS, which will also lead to a major IT rollout in 2010. The project has the capability of transforming the civil and family courts business, and is essential to the delivery of the HMCS Business strategy
Jill’s public sector Interim Management experience has developed from working on both sides of the world. For several years, she worked as a consultant on leading government projects in New Zealand, before coming to the UK.
She firmly believes that the key challenge for any Interim new working in the public sector is to understand the way projects are run, the frameworks and the processes involved, such as Gateway reviews. “Having the ability to understanding the intricacies of public sector processes is run is critical for any Interim Manager, as we are employed to deliver from day one. I find taking on big strategic projects a real challenge but I love learning new things and I am good at seeing the bigger picture. What’s more, I now prefer working in the public sector as opposed to a commercial organisation as I feel like I am giving something back.”
Turnaround Interim delivers major cost savings to NHS Trust
Interims are often called upon to deliver major strategic projects, including turnaround projects, where millions of pounds are at stake. One such Interim is Ian Gray, who has more than 17 years experience of delivering major turnaround and improvement projects in the private and public sector.
Ian has now been appointed by one of the largest government organisations to undertake a major programme which will deliver significant efficiencies. His current role involves overseeing 15,000 people and working closely with people from every level within the organisation to gain their commitment and acceptance of the changes needed to ensure major financial improvements.
The former CEO of Tottenham Hotspur has a proven track record in the private and public sector. Last year, Ian worked at two NHS Trust Hospitals – Mayday University Hospital and Epsom and St Helier University Hospitals NHS Trust, where he was responsible for changing their respective financial situations through the introduction of smarter processes.
At Mayday the predicted £9m deficit was eliminated and at Epsom and St Helier University Hospital, the deficit was reduced by £6m in just a year.
An Independent outlook pays dividends in the public sector
Interim Manager, Fiona Tordoff, has been working at the Department of Communities and Local Government to co-ordinate the agreement of its strategic priorities framework for the next three years.
Fiona’s role was to bring together 11 Government departments and the nine regional Government Offices at two conferences, where representatives would discuss their priorities and how they would be like them to be implemented on a national and local level across the UK.
In the past, each department would hold separate meetings and with each department having different processes and planning mechanisms, it was difficult to get unanimous agreement about how to proceed. The goal was for the Department of Communities and Local Government to significantly facilitate the ‘joined up’ policy approach with every Department and Government Office understanding the bigger picture and working consistently towards the regional implementation of national policy..
Fiona’s first conference was attended by around 70 delegates and besides designing the day, she facilitated all the meetings, debates and question and answer sessions. The second conference to finalise the agreements attracted a greater number of delegates as word had spread that the process of negotiating priorities in conference format was not only worthwhile, but also enjoyable.
“One of my strengths as an Interim Manager was my impartiality. I had a totally independent outlook which helped me gain the trust of representatives of the different Government departments and regions. I also have a great deal of experience managing large scale, participative events and importantly, I understand how groups work. I really enjoy the challenge of getting to the heart of the issue – if a group starts to have heated debates, that is when I feel like we are really tackling the problem and this is what my work is all about,” stated Fiona.
Midven Limited recruits Interim talent to achieve investment goals
Midven, a Midlands-based provider of venture capital investment to small and medium sized enterprises, is another example of a company embracing Interim Management to solve its recruitment problems.
The company provides investment for a number of different areas including business start ups, early growth stages and for management buy-outs of buy-ins and has a portfolio of 55 companies.
One of the key challenges facing Midven is finding talented individuals to place within these companies as CEO or General Manager with the responsibility of growing the business and steering it to success.
For this to happen they need individuals who not only possess specific industry knowledge and experience, such as technology or bio technology (key areas area of expertise for Midven), but also who have an impressive skill set and can demonstrate a strong track record of leadership and management.
Finding such people has proved extremely difficult. Following a meeting with leading interim management provider, Russam GMS the company has decided to employ the company to source this top talent from the company’s extensive pool of over 2000 experienced Interim Managers.
Tony Stott, CEO of Midvern explained, “Russam GMS has an eclectic and extensive pool of talented Interim managers on its database, which was key to our selecting it as our exclusive recruitment partner.”
“As we work with small companies, it is imperative that the people we employ are not just strategic players, but do-ers; people who can get things done and know what is needed to build a company. Finding this calibre of people skills was very tough. However, we are confident that working with Russam GMS and tapping into its excellent database, we will recruit the talent we need to achieve our investment goals.”
Orbis Investment Advisory Limited Embraces Interim Management
Launched in 1990, Orbis provides investment management services to institutions and individuals through the Orbis mutual funds.
The company is very new to Interim Management and hired its first interim when it needed someone to help with certain HR projects.
Its London office only had 50 full time members of staff, so Orbis didn’t require a full time HR manager, but it did need an experienced professional who could help set up processes which would improve the company’s HR capability. The essential requirements were for the person to hit the ground running, deliver great results in a short time period and fit into the company’s culture.
After struggling with recruitment, Thomas International, a business assessment company with whom Orbis worked, suggested that Interim Management could provide the ideal solution and soon introduced Russam GMS.
Following a meeting with Russam GMS, Orbis hired an Interim HR Manager and shortly after this highly successful assignment, it hired an Interim Relocation Manager to manage the company’s forthcoming office move.
Dr Jimmy Chan, Director at Orbis talked openly about the benefits both Interims have delivered. “The Interims we have hired not only have the relevant experience, they are do-ers. This has proved critical for us as we have specific short term projects that are critical to our business and we do not have the right skills in-house to accomplish them.”
“We have learnt a great deal from our Interim Managers. The HR Interim has reviewed our HR processes and has made some excellent recommendations for improvements. This has made us realise the benefits of an excellent HR executive and perhaps the need for a permanent HR manager in due course.”
“Our Interim Relocation Manager has given us great direction in terms of our office move and has really brought to light the importance of planning and timing. We would never have realised that it can take up to three months to transfer a business telephone line – if we had just assumed this could be set up quickly after our move, we could have been without any telephones or internet connections in the new office which would obviously have proved disastrous.”
The Interims at Orbis have also brought in different processes and new ways of doing things which has been beneficial for the staff.
Dr Chan also emphasised the need for Interim Managers to fit in with a company’s culture, which he believes is essential for project success. Fortunately, his experience was a very positive one with both Interims engaging with staff at all levels very well. He also wouldn’t hesitate to recommend Interims as a solution to anyone facing a similar business dilemma.
Interim Sarah Hadley thrives on working as Interim in Financial services sector
Sarah Hadley, aged 36, has been working as an Interim Business Consultant in the financial
services sector since 2004. Prior to this, she had held strategy roles in the UK business of Australian insurance company AMP, and at Arthur Andersen.
Sarah’s departure from AMP following the demerger of its UK and Australian businesses at the end of 2003 provided her with an opportunity to reassess her career options, and following a six week trip to Australia she decided to embark on a career as an Interim business consultant specialising in strategic/regulatory projects in the financial services sector. She commenced her interim career at Zurich Financial Services and really enjoyed the greater independence, flexibility and emphasis on delivery associated with working as an Interim manager.
From there, she undertook an 18 month assignment at Royal Sun Alliance, focusing on achieving Prudential Sourcebook and Sarbannes Oxley compliance, and then took a career break to have a baby. On her return to the workforce, Sarah was appointed by investment bank, NM Rothschild to run its Basel II compliance programme, which required the application of both technical regulatory and project management expertise.
These roles are typical of the many projects that Sarah has worked on in her consulting life - she finds that her background in business strategy and regulation lends itself naturally to Interim work.
“I love the challenge of working as an Interim Manager in the financial services industry and I am completely driven by the focus on getting things done. You have to hit the ground running and deliver on time and I thrive in that kind of environment - I have also found that there is scope to work on a part-time basis – as long as I deliver! – enabling me to achieve an excellent work-family life balance,” she said.
“Project work in the financial services sector is hugely stimulating and varied, hard work and of course, financially very rewarding – I don’t think I could ever go back to permanent employment,” she added.
Leading Private Equity Group turns to Interims for busy transaction periods
Graphite Capital is a leading independent private equity group investing in mid-market UK companies in a range of industry sectors.
It has a 25-year history of successfully backing management teams in growing the value of their businesses across almost all industry sectors.
The company usually invests in established companies with a demonstrable track record of revenue and profit generation.
One of its busiest areas is transactions – typically involving management buy-outs and buy-ins. When these transactions take place they need extra staff to support the transaction team - in the months before and during the transaction period.
One of the ways that the company handles these busy periods is by employing Interim Managers - experienced financial professionals who are seconded to the firm for a three to six month period – usually the duration of the transaction.
Mike Innes, a Partner at Graphite Capital explains, “One of the key benefits of employing Interim Managers is that they usually have a wealth of experience and sector knowledge. They often have a dynamic approach to work and thrive on the challenge of delivering results in a given time period. They are also not afraid to question the status quo and their fresh perspective and independence often delivers great results.”
The company also uses Interim Managers if it suddenly finds itself short of staff as Interims are flexible and can be appointed quickly. They are also adept at fitting in with existing teams.
However, Mike does stress that organisations that use Interims must put in place the right processes that will help them adapt quickly, get up to speed and succeed in their roles. He added that Interims should be employed for a minimum of three to six months which is a realistic time scale for results to be achieved.
Case Study – Jonathan Phillips
Jonathan Phillips has just completed a fourteen month Interim Management Assignment with Norwich Union Healthcare. David Rogers, the MD who brought him in and Cathryn Riley the MD who inherited Jonathan when David was promoted elsewhere in the Group describe it as a very successful assignment. Russam GMS describe it as a classic application of Interim Management; this is what Interim Management was invented for, they say. Jonathan Phillips describes it, in his professional way, as just another satisfied customer. But it has been more than that; much more than that.
Norwich Union Healthcare has grown quickly, in a vigorous and high profile market. It continues to increase its market share. When its Sales Director moved on just over fourteen months ago, MD David Rogers decided that it was an appropriate opportunity to take stock; to take the opportunity to re-look at their management structure (there had been separate sales and marketing functions up to that point) and to re-examine costs. There was a feeling that, as with all well run and growing companies, the focus on responding closely to customers, developing quality processes and all under strong growth and competitive pressures, it was an appropriate time to put costs under that periodic hard scrutiny that all companies need to do. Benchmarking within the industry was possible up to a point but within the Norwich Union context there were other useful comparators.
Norwich Union’s brief to the Interim Management market was twofold; firstly the Interim Manager had to take charge of a combined Sales and Marketing function with over 400 marketing and sales field staff; secondly he or she had to work with the MD – both of them as it turned out, to review the management structure and the cost base and then to implement the decisions up to the point of bringing in a new Sales & Marketing Director to handle the combined role and under a re-shaped cost regime.
David Rogers took the view that Interim Management was the only viable route. The right Interim Manager needed the management gravitas to run a combined department for a period of time; someone who could sensitively handle a broad range of management staff, many of whom were understandably apprehensive at what changes might be in store for them; someone who understood the trade and someone who could work with top management to develop the strategic approach to what changes were necessary – with impartiality, with objectivity and with the experience of how others had handled similar situations elsewhere. Importantly, Norwich Union Healthcare needed a seasoned manager, who could implement what, collectively, they decided needed to happen. It was a classic case of laying the tracks and driving the train – with the added complication that they both had to happen at the same time. An Interim Management approach was the ideal solution.
They found Jonathan Phillips through Russam GMS, the longest established mainstream Interim Management provider in the UK. Jonathan has been an Interim since February 1998 – and will continue to be an Interim, he says. “I can see many Interims being persuaded onto payrolls – either for clients for whom they are working or elsewhere”, Jonathan Phillips adds, “but that is not for me. I like the variety, the challenge but, importantly, clients need to see in me the sort of objectivity and professionalism that comes out of a successful track record and also the knowledge that I do not have any hidden personal agendas.”
Before becoming an Interim, Jonathan had been Towry Law's Group Marketing Director, AON Consulting Limited’s Marketing Director and had significantly, worked with BUPA in their International Division as Marketing & Business Development Manager and in their UK Division as Head of Marketing and Product Development. He had also handled a number of very relevant assignments such as for Transport for London where he was their Customer Information Strategy Project Manager and for KPMG plc as their Professional Services Customer Relationship Manager. Of particular relevance to Norwich Union was Jonathan’s Strategic Business Consultancy experience with BUPA in both Financial Services and Healthcare. Jonathan has an MBA from Cranfield and a BSc in Engineering from Coventry University.
Russam GMS Chairman Charles Russam and Peter Dunkerley who set the assignment up in the first place and brought the parties together are understandably delighted with the outcome of this assignment. “The task of the Interim Management Industry – now as always – is to get more businesses to appreciate just what the Jonathan Phillips of this world can achieve for them,” they both say. The cost was roughly what the client would pay for any top executive operating at Jonathan’s level and the benefit will, we all hope, pay back that investment many times.
Of course, the last word must come from the client, David Rogers says “Jonathan was exactly what I needed in the business at the time, he has done a great job for Norwich Union Healthcare. He brought a real sense of change and loads of external input to the business, plus a balance of being sensitive and objective around the changes we made.”
Interim CEO modernises Forest YMCA
Since October 2006, Keith Drew has been working as an Interim CEO at Forest YMCA in Walthamstow. The YMCA is one of the UK’s leading Christian charities that supports all young people in times of need.
In just six months, Keith has transformed the local YMCA. It has been restructured, modernised and is under going a complete physical make over. He has also turned around its financial position and it is now running as an effective business, with the finance available to grow and to develop its work helping young people live and thrive in their communities.
YMCA England reaches out to over 1 million young people each year, working with them at every stage of their lives and offering support when and where they need it most. Whilst the YMCA Movement has grown to become one of the biggest Christian charities in the world, working in over 120 countries with 30 million members, on a local level, Forest YMCA is the largest direct access hostel in the United Kingdom.
Nationally, the YMCA is the largest voluntary sector provider of safe, supported accommodation, and also offers health and fitness services for single, men and women aged between 16 and 35. It helps tackle crime and young offenders through its work with prisons and ex-offenders.
The YMCA also helps young people gain the skills they need to work and become independent by offering a variety of vocational, school and work-based learning opportunities. It has a range of services to help increase the employability and financial awareness of young people. It teaches citizenship to help young people fit into and participate in their communities, as well as promoting positive family relationships and providing childcare services.
The Challenge...
Like many charities, Forest YMCA had focused more on service delivery than its business over recent years. As a result, whilst it was still performing good works, money was running out and its head office and its accommodation and facilities were all in need of transformation. If the charity was going to continue to operate effectively in the future, a major change was required. The charity also needed a new CEO to lead them and to deliver the changes.
Whilst searching for a new CEO, Forest YMCA contacted Russam GMS – a leading provider of interims managers in the non-profit sector to find an interim replacement. The company recommended Keith Drew who had previously worked in several senior executive positions and his experience also included a five year period at a Christian Charity for Church of England Children’s Homes in Sydney Australia.
On 23rd of October 2006, Keith Drew began his assignment. He undertook a strategic review of the entire organisation and realised he had a major challenge on his hands – change was needed in every part of the organisation.
Without cutting any of the vital services the YMCA provides, Keith was tasked with turning the charity into a viable business organisation and moving it from financial neutrality and deficit into profit, whilst simultaneously raising standards. He put together a plan to restructure every facet of the organisation, which was accepted by a responsive and enthusiastic board of YMCA directors.
Operationally, Keith split the organisation in two, creating a Welfare division which focused on delivering services, and a Corporate services division focusing on internal back offices functions. Both divisions were now accountable for their businesses operations, while being integrated into a public facing organisation.
The Welfare services division immediately started to improve the services it offered, giving its 160 residents a dedicated entrance to their accommodation, which wasn’t shared by the public and a 24 hour dedicated reception to cater for residents’ needs day or night.
A major refurbishment programme is also underway, which will modernise the YMCA’s accommodation, restaurant and sports facilities, which had not been updated for many years. By October 2007, the YMCA will benefit from new modern interiors providing a far higher standard of living for its residents, and for its public customers.
Keith has restructured many of the roles at the YMCA to focus more on service delivery. Resident support officers no longer have to deal with administration so they can work with residents full time, helping them to learn how to live independently and prepare them to leave the hostels to live independently, which is the charity’s ultimate mission. He has appointed another resettlement worker, which is a major benefit for residents.
To help boost the morale of internal employees, the offices in Walthamstow are also being refurbished which will also reflect the new modern approach of the YMCA.
Charles Stokes, HR Director at Forest YMCA commented, “Keith has brought a fresh perspective, direction and structure to the YMCA. He has focused on results and was able to assess our problems and fix them with remarkable speed. We now are now looking like a modern charity with a long term future. Thanks to Keith, we are confident that we are in a strong financial position to build on our charitable work and help more young people thrive in communities in the UK and around the world. Thanks to his remarkable job, we are no longer looking for a new CEO and we are delighted to have employed Keith for another 18 months.”
A Very Royal Engagement
One of the main attractions of life as an interim manager is the change of scene and chance to work in different and more stimulating environments. Not many assignments however, are quite as grand as the Royal School of Needlework at Hampton Court, where finance manager, Vaughan Williams is working as an interim finance manager.
The Royal School of Needlework (RSN) is an exciting, forward-looking organisation which is dedicated to keeping the art of hand embroidery alive in the 21st Century. It offers a unique education in embroidery. Following a three year technical Diploma Course, highly skilled professional embroiderers are equipped to work in a commercial Studio, or follow a career in fashion or textile art and design. It also offers shorter classes to anyone with an interest in learning embroidery, from beginners to more advanced level students. The RSN’s own Studio carries out varied commissions including the design and production of contemporary work and the conservation of textiles. Many pieces worked on in the Studio are of national importance.
Vaughan relishes working in such a unique and artistic environment. He also loves the fact that his office is located in such an historic and picturesque setting and that he can enjoy the views of the palace's beautiful gardens from his office.
His main job functions at the School are the financial and management accounting and payroll and one of the key challenges that he faced was to modernise the existing financial systems, many of which were manual. One of the difficulties was the time constraints placed upon him. The School is a small charity and as such, could only afford to employ Vaughan three days a week, instead of five.
However, undeterred, Vaughan upgraded the Sage accounting software and added Sage Intelligent Reporting within the given time period. By automating these systems, he has reduced the amount of resource needed in the accounting function, whilst making the accounting processes and management reporting much faster and less complex.
He has also prepared the latest financial estimates for the year and will be completing a budget for 2007-08. He reviewed the VAT partial exemption calculations and made some taxation savings of around £1,000 a year, which is a big financial bonus for the charity.
Vaughan has now been with the School for almost five months and soon it will be time to hand over his role to a permanent finance manager. He is ensuring that his skills are being transferred to his successor and to other staff members. He has enjoyed working in such a great environment and certainly won't forget his Royal engagement.
Stephen Brooker, Chairman of the Charities Practice at Russam GMS said, "As Vaughan has clearly demonstrated, Interim managers can bring a fresh perspective and new ways of doing things. He has not only improved the School's existing financial systems, which will save a great deal of time and money, he has made genuine financial savings in other areas. Vaughan will stay on to ensure that his successors fully understand the new systems he has created, so the School can continue to improve its financial status and can benefit from the changes that have been implemented for many years to come."