A Special Russam GMS Survey 29th April 2009 Update to this article available here

• Interim Managers focus, overwhelmingly, on finding their own solutions – with little articulated need for external help.

• Interim Management is a good place to be right now, in spite of the downturn.

• The downturn is affecting Interim Managers – some more than others, and is likely to get worse.

• Getting angry and allocating blame is easy to do, but not a major priority for Interim Managers. Virtually all of their anger is aimed at the Government, the Banks and the Regulators in equal measure.

• Current and continuing conditions are likely to improve the performance of Interim Managers and bring new Interim Managers into the market.

• There are serious pointers to self-sufficiency and dependence on personal skills and resourcefulness.

Contents

1 - Introduction (go to this section) 2 - Summary of Responses (go to this section) 3 - How is the Downturn affecting you? (go to this section) 4 - Do you have any coping strategies? (go to this section) 5 - Are you angry with anyone? (go to this section) 6 - Is Interim Management a good place to be right now? (go to this section) 7 - Summing Up. What does all this mean and how might Interim Managers best manage their practices in these changing and challenging times? (go to this section)

Appendices

1 - How is the Downturn affecting you? (View as word document here) 2 - Those who think that the downturn will affect them, think this is how:- (View as word document here) 3 - Any coping strategies? (View as word document here) 4 - Are you angry with anyone? Who & Why? (View as word document here) 5 - Is Interim Management a good place to be right now? Why? (View as word document here) (The text in these Appendices is reproduced verbatim from all received responses – including all typos, inconsistencies and – maybe - some inappropriate comments!)

Russam GMS Chairman, Charles Russam introduces this timely insight into how the current downturn is affecting Interim Managers:-

"Driven by the amazing and unprecedented global economic changes of the last few months, and with everyone expecting worse to come, we wanted to find out if and how Interim Managers are being affected by the downturn and what they plan to do about it.

Below are the questions we asked 10,000 Interim Managers and the views of 920 Interims who responded. The report outlines the key findings and the Appendices below detail what was said verbatim.

This report is aimed at Interim Managers in the main – but also at those who have an interest in this important and growing market. It provides an accurate picture of the mood, the market and the climate in which Interims are operating.

What you get out of it depends on who you are; what you actually want to get out of it and the amount of time you spend looking at the detail.

On behalf of us all at Russam GMS, we hope you find our report helpful."

Questions

1 - Is the downturn affecting you yet? 2 -Do you think the downturn will affect you? 3 - Do you have any coping strategies? 4 - Are you angry with anyone? 5 - If so why are you angry and with whom?

Glyn Lloyd is Business Manager at Russam GMS and he put together this survey. Here he explains how he did this, what’s in it and how to get the best out of it – whoever you are. “At just over 60 pages, this is the longest research paper we have published in 25 years. But the real value in this report will lie in the detail of what 920 Interim Managers told us. We reproduce ALL of this – verbatim - in the Appendices, including typos, inconsistencies and – maybe - some inappropriate comments! We would be happy to hear from anyone with any questions or comments at: Downturn@russam-gms.co.uk ... and will do our best to respond!"

Sector DirectorJohn Wilson is daily contact with Interim Managers. Here he summarises the responses to this Question and recommends a more in-depth examination of the detail in Appendices 1 and 2.

Is the downturn affecting you yet?
Yes 407 (45%)
No 433 (47%)
Don’t Know 72 ( 8%)

John Wilson says, “We were surprised to note that 47% of Interim Managers had felt NO impact yet from the downturn. We think that may reflect the fact that their current assignment is ongoing and whilst they can see what is happening around them, they won’t feel the personal impact until they start looking for their next assignment.”

Interim Managers who are feeling the impact of the downturn already seem to be encountering common experiences, virtually all of them interlinked with falling demand:

• There are fewer assignments around or they are being withdrawn at the last minute, often after interview stage. Clients are taking longer to make decision. • Companies are choosing to recruit internally rather than hire in the current climate. • When they do hire, Employers are becoming more choosy about who they employ and the market is becoming more competitive. • The competition for jobs means that daily rates are being squeezed. • The payment cycle is slower – this is a very common theme.

John Wilson cautions Interims on this one key point, “Keep checking that you are going to get paid. No reason why you should not do deals. You might well take the view that waiting is OK, but don’t work for nothing. You can allow yourself to be squeezed a bit but any professional service has a value and working at a significant discount to a fair rate is not right.”

Do you think the downturn will impact you?
Yes 659 (72%)
No 140 (15%)
Don’t Know 113 (13%)

What is clear here is that the majority of Interim Managers think that clients will be reluctant to hire interims in the current climate and instead, recruit internally. They also believe that there will be less opportunity and tougher competition for jobs.

Many felt that clients will be reluctant to start major projects so there might be less work. On a more optimistic note however, several mentioned that opportunities might emerge from Change Management opportunities and from businesses which are restructuring because they will need experienced Interims.

There was also confidence shown from Interims working in niche areas such as turnarounds, credit control and central and local government. There were also several Interims who had experienced a recession in the past and who felt that the downturn will be temporary.

Echoing Russam GMS mainstream thinking, John Wilson also thinks that turnarounds, credit control and recovery and Central and Local Government and maybe Charities and Not for Profits are going to feel the downturn less and may well be relatively unaffected.

“This is the third downturn that Russam GMS has traded through and each time Government has increased its spend. I guess we are all looking – and maybe hoping for an increased spend - to see what is going to happen this time” he added.

To see what Interim Managers said in full see Appendices 1 & 2

If you read through the few hundred authentic and very recent comments in Appendix 3 you will see a variety of “coping strategies” that clearly illustrates the resourcefulness shown by Interims.

• Interims have a wide range of “coping strategies,” but these are primarily about increasing the amount of networking and marketing that they do. (Is it not an eternal truth that all professional people feel that they never do enough networking and they all always feel guilty?)

• Most of the rest of the comments are about self-improvement - improving the services they offer to their clients; diversifying their offering to clients; improving interview/ presentation techniques; changing industry sectors or focusing on areas where their skills might be more needed most such as change management or recovery situations.

• There were some comments about coping emotionally with the lack of activity, but surprisingly few.

• Similarly, there were surprisingly few comments about potential financial hardship.

• Leaving the Country in various forms – either temporarily or forever – got a few mentions.

• If you do read through Appendix 3, you will notice the prevalence of determination and resilience and the recognition of the importance of innovation.

• Moving into different sectors was a fairly common comment and we do have some views on this.

• Virtually all the comments seemed to be serious, albeit with some humour. One comment where we could not decide about the level of gravitas was this:- “Shack up in Spain with a rich widow (I’m serious)”

Gary Lawton, Director – Public Sector at Russam GMS comments on whether moving into a different sector is a viable strategy. Many Interims, seeing assignment opportunities tightening in their own sector see greener fields elsewhere.

“Most Interims tell us- because they believe it - that their functional skills can transfer comfortably into other sectors and our response is invariably muted. In some cases, it clearly can and in other cases it can’t, but there is a middle ground when, in real life, only the client can decide. If there is another candidate with sector experience speaking the sector language and jargon and having sector contacts then he or she will almost certainly get the assignment.”

Gary Lawton acknowledges that the public sector will be seen as a key target, but makes the point that very often the ideal candidate for public sector work is someone from the private sector who has some relevant public sector experience. All private sector or all public sector does not seem to work for a number of reasons for most Government work.

He also adds that the public sector may not be as ‘recession proof’ as some might think. Cabinet Secretary, Sir Gus O’Donnell, warned civil servants only last week that departments will have to become more efficient and innovative as the recession starts to bite. He talked of department budgets being under pressure and clearly stated ‘there is no big pot of cash’.

Until now, the market for Interim Managers in the public sector has grown year on year. Now its future is more unclear. While we still believe there will be good opportunities for Interims within central and local government, they might not be as fruitful as people might initially assume.

But, Gary Lawton adds, “If your sector has died or looks close to it and you have the opportunity to “retrain” or can find a way to learn those new skills – and, just as important, can find a way of getting your first assignment in that Sector, then this is what you should do.”

“It is not easy but earning a living and making progress is much about innovation and adapting to changing circumstances. In fact, much of the raw data coming out of this Russam GMS Special Snapshot Survey is much about innovating and adapting and that is one of its features that we find very impressive,” he adds.

To see what Interim Managers said in full please See Appendix 3

Yes 369 (40%)
No 527 (58%)
Don’t Know 16 ( 2%)

So - why are you angry and with whom?
Much of the anger (pages and pages of it!) is directed at the Government, the Banks and the Regulators in equal measure – and you can assess for yourself the extent and genuine feelings.

Some Interim Managers are however, angry about decisions that they made before the downturn. They turning down work and with the market outlook being so uncertain they are regretting their decisions.

If you read through some or all of the reasons in Appendix 4, you’ll probably judge that the word “anger” is probably not the right word. Most serious Interims seem to be taking a pragmatic view that what has happened has happened; the truth is easy to see and the culprits easy to identify. What’s more it’s unlikely that anyone will be held to account because that is how politics works. The task now is to adapt, to be more active and innovative and to continue, as far as possible, to make a living.

To see what Interim Managers said in full please see Appendix 4

Yes 644 (71%)
No 65 ( 7%)
Don’t Know 203 (22%)

Why?
These statistics speak for themselves. Many Interims currently see potential for short term contract wins. Projects must also continue and Interims provide a cost effective way of delivering them. Interims also provide a flexible solution at a time when flexibility is required. This optimism can and does operate within a recession-driven blanket cost cutting framework.

Businesses will also need help in these tough times; companies will be looking for help from experienced professionals who can manage tough projects such as change management, restructuring and recovery. Interim Management also provides a way for companies to buy in the skills they need, when the need it, without the tax implications and expense of hiring permanent staff.

Whilst there has always been interchange between permanent and interim work, one noticeable feature coming out of this report is the number of Interims who feel that there is no going back. Having made the big step out of permanent employee, there is no turning back. While it might mean working harder, it is worth it not to go back into full time employment. Once a senior manager has got the independent mind-set, it never disappears.

Also, a thought echoed by several Interims is that good people will always get work, whatever the market conditions.

To see what Interim Managers said in full please See Appendix 5

What does all this mean and how might Interim Managers best manage their Practices in these changing and challenging times?

Jason Atkinson is a Director of Russam GMS and also heads up all Sales & Marketing activities. He is in constant contact with countless Interim Managers. Here he summarises the collective views of himself and his senior colleagues at Russam GMS.

“What may well surprise many – or even everyone -- is our view that there are probably NO new solutions – because the old and well tested and well proven solutions are still the best. Twenty years ago we published our “SSB Model” Statement designed to be a very short Practice Development Guide to both new and established Interim Managers and it has not changed since. It seeks to persuade new and established Interim Managers to stop seeing themselves as people and to start seeing themselves as Businesses – Serious Small Businesses. Quite simply – it recites the eternal values of deciding what your professional product is and focussing on it. It outlines the things that you need to do to market and sell your professional product.”

Jason Atkinson makes a special point of stressing this third key point, “You need to be good at what you do. Otherwise, no-one will ask you back! Being good at what you do is no accident. It needs hard work and practice. Ah ... yes ... and we all need a little luck from time to time.”

Responding to the question “What has Russam GMS learnt from this Snapshot Survey as regards Clients", these are the points that Jason Atkinson says are the most important whether they are Russam GMS clients or anyone’s.

• The fundamentals remain key. • Clients are going to be inundated with CVs. It’s OK for the client to be their own Interim Management Provider if there’s less to do in their day job, but clients still want the best choice. Identifying the right Interim Manager is never easy – and certainly never easier if the slowing market has put many more candidates into play. • References should be good ones, relevant and recent. • Agree in writing deliverables and timescales and progress. The best Interims make it very easy for their clients to manage them. • Settle at a fair price.

However, what might be NEW is if some or all of this doesn’t work for you – what do you do about it? It is precisely this that we will be keenly looking out for as we move through these difficult times. Watch this space!