In The News - Archive

UK Charities taking action to recover from recession
Third Sector, 15th September 2009

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72% of Interims say income is still falling in charity sector One in four charities making job cuts Interims helping charities transform operations and cut costs

10 September 2009 – A new survey of over 450 charity Interim managers from Interim provider, Russam GMS revealed that 72% of UK charities have experienced falling incomes, 64% have put recruitment and IT projects on hold and 25% have cut jobs in the past six months. But in spite of this, they are taking many steps to recover.

Two thirds of Interims said that charities have increased their fund raising efforts and that many cost saving measures have been introduced. 40% said that cash flow is being tightly monitored, 25% said charities have reduced headcount and also claim charities are introducing more collaborative working and sharing services and costs (15%), improving governance (14%) and increasing their marketing efforts (11%).

The research mirrors the results of the latest ‘Managing in a downturn’ from Pricewaterhouse Coopers in conjunction with The Institute of Fundraising, The Association of Charitable Foundations and CFDG (Promoting Best Practice in Charity Finance) which revealed that half of all UK charities predict their income levels will fall in the next six months but that 62% they will increase their fundraising activities in the next six months.

The latest snapshot from Russam GMS published in August also showed that UK charities are recruiting Interims more strategically to help them raise funds, reduce operational costs and improve efficiencies. This was also reflected in the fact that the pay rates for Interim charity specialists rose by 8% from £464 in December 2008 to £499 in June 2009.

Interims have been working mainly on assignments related to raising funds and changing the way organisations operate. 69% have worked on change management projects, 58% have been involved in contract negotiation and funding bids, 38% have been involved in financial planning and 34% in fund raising and marketing.

The interims claimed that several key opportunities were emerging from the recession. 40% believe that charities will benefit from a larger volunteer base and a great talent pool from which to recruit, 25% see a major opportunity for charities to renegotiate prices with supplier and reduce office costs as well as introduce better financial planning and governance.

Just over half (54%) are confident that the outlook for charities will improve in the next six months. They see the main assignments opportunities being in fund raising, project management and turnaround projects.

Stephen Brooker, Chairman of the Charities Practice at Russam GMS said, “UK Charities are still having an incredibly tough time, which is very much reflected in our research and the latest ‘Managing in a downturn’ report from Price Waterhouse Coopers. Income levels are still falling, recruitment is very much on hold, as well as some projects, and job cuts are widely reported.”

“However, on a positive note, it is clear that charities are taking action to combat the impact of the recession. Interims are being recruited to work on change management and fund raising projects to help them secure new funding, transform the way they work and reduce costs. In addition, many organisations are now collaborating with each other and sharing services to reduce costs. They are also introducing better financial planning and governance. These efforts will reap dividends over time and we are confident that the outlook for charities will start to improve in the next six months.”

Original Article here


Interim Managers Under Pressure with Fewer Jobs
PM Toolbox, 4th September 2009

A recent survey by interim management specialists Russam has given us a greater insight to the current market for contract and interim staff.

66% of Interim Managers claim they are struggling as a result of the recession according the second ‘Recession and the Interim Manager’ survey of 10,000 Interims from leading Interim Management Provider, Russam GMS. Only 31% of Interims said they had not been affected by current market conditions and 3% were unsure.

The figures echo the findings from Arras People’s own survey of programme and project management professionals earlier in the year. Programme and project managers also felt they had a significant role to play within the recession, with the interim managers “61% of Interims confident they can lead businesses through recession”

Further areas probed in the survey:
Half of all Interims said their main problem was the fact there were fewer assignments on the market, and 19% claimed that clients are taking longer to make decisions. 11% complained that the market is now flooded with people who have been made redundant from their permanent jobs; 11% said they have had to lower their daily rates to secure work and 9% said that job interviews were much tougher than previously.

All of the above concerns have been seen within the project management market, especially the reduction in the number of opportunities and the increased competition as more contractors and interims chase each opportunity. The claim that organisations are taking longer to reach a decision with regards interim hires has not necessarily affected project management in the same way. What we have seen is a longer time for the opportunities to reach the market in the first place as roles have to be triple approved internally before the organisation can go to market to hire. Once the recruitment process is underway, decision making at each stage has been quicker because approval doesn’t have to be gained retrospectively which has often been the case in the past.

In terms of where the new opportunities will come from:
Interims are confident too that new market opportunities will emerge. 58% said that the best opportunities will come from professional services, 16% predict the public sector will bring fresh opportunities, with others seeing the utilities and charity sectors as good hunting grounds for new assignments.

An interesting part of the survey, professional services seems to be the flavour of the month with the interim market but does this translate to the project management field? Personally I’ve seen an increase in the public sector for project management roles, in fact they can’t seem to get enough of them, which in some ways does get the alarm bells ringing, can they sustain the levels of project management recruitment?

All the latest advice to the HR department is twofold; look after the talent you have especially as the economy begins to recover and secondly, keep using interim and contract resources. These resources are a cost effective solution to bringing in top talent that hit the ground running and deliver successful project outcomes quicker.



Interim marketers see rise in pay
2nd Sep 2009 | By Jo Roberts

The current climate is looking positive for interim marketing managers with pay on the rise as companies look to gain a competitive advantage.

Marketing and sales specialists have seen their pay rise by 12% from £527 in December 2008 to £592 in June this year, according to the latest snapshot survey carried out by recruitment agency Russam GMS.

The research shows that those interims willing to work overseas also saw pay increase by 10% from £707 to £778.

Age is determining how much interims can command with those in their 40 and 50s earning the most from assignments.

These findings are in contrast with the last survey, which recorded the first slowdown recorded by the recruitment agency, which began its survey in 2000.

Figures to December 2008 indicated that interim marketers took a pay cut of 6% from £561 to £527. The rate of decline in assignments is also slowing. Volume of work is down 4% to the end of June compared with the last survey, where volumes decreased by 11% to the end of December 2008.

The latest Ipsos MORI market audit second quarter findings commissioned by the Interim Management Association (IMA) also indicates signs of recovery, with IMA members seeing an 11% increase in assignments from 493 to 548 in the months between 1 April to 30 June.

Despite the uncertainty of the economic climate, most interims are committed to their career choice, with 30% saying they would never think about returning to permanent positions. Half of respondents say they would only consider returning to full-time employment if the opportunity was too good to turn down.

Original Article here


Pay rises for Sales and Marketing Interim Managers
Original Article here
26th August 2009

The recession appears to be bottoming out, according to the latest snapshot survey of over 10,000 Interim Managers from leading UK Interim Management provider, Russam GMS.

While Interim activity in the market declined by 4% in the six months from January to June this year, it compares favourably with the 11% drop in activity recorded in the six months from June to December 2008.

In spite of widespread industry speculation about Interim rates being squeezed downwards, the average daily pay rate fell just £10, from an all time high of £611 in December 2008 to £601.

Pay rates for part time Interim managers actually increased from £600 to £602 indicating that companies were still working with Interims but in a more flexible way to suit their tighter budgets.

There were pay rises for sales and marketing specialists who saw their daily rates increase 12% from £527 in December to £592 in June this year. Interims working in the pharmaceutical sector also saw their rates shoot up 14%.

Ful article here


Interim management market shows signs of recovery
25th August 2009
Original Article here

The recession seems to be bottoming out, according to new research from Russam GMS. Whilst activity in the interim market has declined by four per cent (between January and June this year), it is an improvement compared to the 11% decline recorded between June and December 2008.

Average daily rates have only fallen by £10, from a record high of £611 in December 2008 to £601. In fact, pay rates for part time interims have increased from £600 to £602 and sales & marketing and pharmaceutical specialists have seen their pay increase by 12% and 14% respectively.

Interims willing to work overseas benefited from a 10% rise in daily rates, from £707 to £778.

Those who have been affected the most are interims working in the retail sector and the food industry – both sectors saw pay rates fall by 26%.

Charles Russam, Chairman of Russam GMS, commented, “There are definite signs of optimism in the Interim Management market. The rate of decline has slowed considerably in the last six months so we may have seen the worst of the recession.

He adds that: “The market is more competitive and tighter than ever before so Interims need to be on top of their game, brush up their skills and sell themselves to whoever needs their services and can pay for them.”


NEDworkers Initiative
19th Aug 2009
Original Article here

If you are one of the 4.7m small business owners in the UK who need advice on how to survive the recession, grow your business, improve your people strategy or start up successfully, then you may need to call in a ‘NEDworker’, a senior, independent board level business executive who can help you with your challenges.

The ‘NEDworker’ initiative is a new scheme from Russam GMS, the Interim Management specialists. The company is offering small businesses the chance to recruit NEDworkers NOT as non executive directors or directors, but as ‘critical friends’ or business mentors, providing strategic advice and/or handling CEO level projects.

Typically, the NEDworkers will have operated at director level in a range of businesses and have excellent functional skills and many years’ business experience.

A key part of the initiative is that the NEDworker will work with companies for two days free of charge before both parties have to decide if they want to establish a longer term business relationship. Businesses interested in hiring a NEDworkers simply need to provide a brief and Russam GMS will shortlist suitable candidates from its extensive database of senior executives.

Charles Russam, Chairman of Russam GMS says, “A recent report from BDO Stoy Hayward stated that one in 56 UK companies are likely to fail this year; Many SME businesses – particularly owner-managed companies desperately need independent, professional business support to get through these testing times. Calling in a trusted adviser or a critical friend with the right skills, knowhow and industry knowledge to help get their business back on track or implement a strategy for growth could be essential for their survival and future business success.”

“Our NEDworker initiative has a ‘try before you buy’ element so that both parties can decide if they want to pursue a long term working relationship. We feel that two days is the optimal time needed to decide on the viability of the relationship, ensure there is a personality fit and to determine the scope of the work. We know that many businesses are looking for this level of support right now and we are confident our new scheme will make working with seasoned professionals a more accessible and affordable option for many UK SMEs.”

Businesses will be under no obligation to hire the NEDworker after the two day period.


Interim management market ‘bottoming out’
17th Aug 2009
Original Article here

The economy is displaying further signs of bottoming out, according to a survey by interim management provider Russam GMS.

The survey shows that there was a 4% fall in interim volumes in last six months, compared with an 11% fall from the six months from June to December 2008.

Average daily pay fell just £10, from an all time high of £611 in December 2008 to £601, while pay rates for part-time interim managers actually increased from £600 to £602.

Pay increased for interim managers in sales and marketing, pharmaceutical, not-for- profit and the private sectors, while pay fell for retail and food, education and IT and professional services interim managers.

Charles Russam, chairman of Russam GMS, says: “There are definite signs of optimism in the interim management market. The rate of decline has slowed considerably in the last six months so we may have seen the worst of the recession.

“As in previous recessions, more companies have been employing interims on a part time basis, showing that demand is clearly there but companies are being more cautious and cost conscious so less willing to use interims on a full-time basis.”


What makes an interim?
By Marc Barber
4th August 2009
Original Article here

Unlike consultants, interim managers can implement change. However, given the current set-up of the profession, do companies really know what expertise they’re hiring?

In theory, you might assume that the condition of the economy makes this an ideal time for interim managers. The reality is proving somewhat different.

‘We’ve seen a few recessions come and go,’ says Charles Russam, chairman of interim management provider Russam GMS. ‘The broad truth is that when business goes down, interim goes down. That’s because there is less volume and so people don’t spend money. Instead, they fire people, and that means they don’t take on consultants, interims or contractors.’

It’s understandable that companies that are looking to cut costs are reluctant to hire the skills of an interim, given that fees average at around £600 to £700 a day. A survey of 10,000 interims by Russam GMS found that just under 70 per cent of respondents were seeing greater competition to win assignments and a general decline in demand.

‘Historically, the best time for interims is when the economy is good and people decide they want to do things immediately,’ reflects Russam’s chairman. ‘They may not have the staff with the necessary skill set but they don’t mind spending a few hundred pounds a day on bringing someone in who can take the company forward.’

Full article here



Job done: why interims are driving the transformation agenda
Gary Lawton
14th July 2009
Original Artical here

Interims bring to the table commercial knowhow and management experience - they deliver results and move on, proving a cost effective way to drive through change.

Historically, the public sector has been extremely risk adverse, and has used management consultants for delivery of their strategies and solutions. But with spending under scrutiny, using a well known professional services company is no longer an affordable luxury.

Management consultants will typically be less experienced than their interim management counterparts and in general, they charge twice the daily rates of interim managers. With their practical capabilities and focus on delivery, interim managers will be sought out in local government to replace management consultants where they are used inappropriately.

Buying Solutions, the national procurement partner for UK public services anticipates that £2.5bn will be spent on non-permanent staff, including interim managers, over the next four years. Key areas where they will be used increasingly include specialist project management leadership in coordinating key programmes of work, such as flu pandemic programmes and adult social care programmes and also in delivering expert procurement and commercial guidance in crucial areas such as shared services and category management.

In many areas, change management programmes led by interim managers are already underway. The government's FiReControl project will soon see the current 46 fire control services in England amalgamated into just nine new regional control centres and interim managers are leading some of these major change programmes to transfer local operations.

Full article here



The parachute regiment comes to the rescue
As the downturn bites, interim management is increasingly attractive
Tim Barber
2nd July 2009
Original Article here

IF all the talk of bottoming out and green shoots is to be taken seriously, one career sector looking to benefit is interim management, the arena of senior executive trouble-shooters. A development from the older American model of turnaround specialists, interim management – in which executive-level experts are parachuted into companies to address specific operational issues and oversee the process of solving them – has seen a sharp rise over the past few years, and is reckoned to be worth £750m a year. While the sector has been hit by the economic downturn, with companies unwilling to shell out for their services, experts say that interim managers’ usefulness in both the downscaling and upscaling of organisations makes it one of the last sectors to be hit and among the first to recover.

“When you come out of the recession, companies don’t immediately add people to the permanent headcount, they bring in interims instead,” says Charles Russam of Russam GMS, one of the longest-standing agencies in the interim management sector. “The astute business never expands too quickly, and they want to remain nimble even as they’re expanding, so anything that can be turned into a project is, managed by interims.”

Interim managers are not used as replacements for permanent staff, says Russam, but do the work companies don’t want to dedicate internal resources to. For those at senior level who have been made redundant in the credit crunch, the idea of taking on short-term consultancies and project work as a way to bring in income while hunting for a permanent position will seem tempting. Sure enough, the ranks of those describing themselves as interim managers have been swelled in the past few months – but sector insiders warn against executives assuming this is an instantly viable solution to their situation.

“Many people send their CVs out to agencies and to their network, and sit and wait for the phone to ring because they think they’re God’s gift to employment, but it doesn’t happen,” says David Harries, director of the Interim Management Association (IMA) Institute, the professional body representing interims. He says that people hoping to become interims as a stopover are likely to get sniffed out by clients, who won’t want to employ a person who is likely to disappear as soon as a permanent position becomes available.

In London, workshops are run by the Interim Management Association (IMA) for those thinking of becoming an interim, and less than half of those who participate end up pursuing it. For those that do, however, there are clear attractions in a flexible lifestyle free from the hierarchies and strictures of large organisations, and with daily rates ranging from the mid-hundreds to £1,000 plus, the rewards can be alluring.

WIDE-RANGING SKILLS

Interims are keen to spell out what separates them from turnaround managers – they help companies in difficulties, but interims can have much more wide-ranging skills and uses – and management consultants, who identify problems and solutions, but don’t implement them.

“You come into a company, deliver a solution and hopefully leave a legacy for the permanent team,” says Celia Adams, a finance director who worked for several big corporates and SMEs before turning to interim management for a more flexible lifestyle. Adams sits on the committee of InterimWomen.com, a support group set up to reflect the growing number of women turning to the career.

“As a woman, it’s good to have that flexibility and not be tied down with all the strings that come with being an employee,” she says. “You’ve got to be prepared for a bit of feast and famine, as you’ll have downtime between jobs, but if you can stand that, it’s very satisfying.”



Interim managers: do you need one?
GB Magazine on Jun 2009 by John O'Hanlon
Original article here

Growing Business investigates how an outsider can rescue a private business, sometimes from itself.

No one knew the Green Knight when he arrived at the court of King Arthur in the middle of a feast. The courtiers thought they were on a roll, but he was there to tell them they had problems they hadn’t seen.

You probably know the story. The Green Knight made the court do a lot of things they couldn’t see the point of, especially Sir Gawain. From suspicion at first, all the stakeholders ended up trusting this stranger, and Gawain definitely became willing to do whatever it took. After this intervention, the court was a more effective entity, focused on its core business and ready to get on with tracking down the Holy Grail.

Many private businesses operate just like King Arthur’s court. Maybe it’s a family concern. If it has been around for a long time, it may not have noticed changes in the world outside. If it was launched more recently, it’s quite likely to have got used to operating with a fair economic wind. Consequently, it could be unprepared for the realities of a recession, with its executives lacking experience in trimming the sails in adverse conditions – they may not have been born when the last storm hit. This is when bringing in an interim (the business equivalent of the Green Knight) to provide the necessary experience or plug a skills gap can prove invaluable.

Managers for a time

Interims are an embedded feature of the NHS and most local authorities, and a good proportion of the UK’s 20,000 or so career interims move from assignment to assignment in the public sector. But more than half work for private businesses of all sizes, according to Charles Russam, whose company Russam GMS has been placing interims for more than 30 years, and has 11,000 names on its network.

“Private businesses can have any number of reasons to bring in a specialist,” he says. “For example, if their problems relate to redundancies, managing part-time working, or reduced salaries, handling the extra human resources regulatory burden may require special expertise that many small and medium-sized businesses don’t have. So bringing in someone with the necessary skills could be the answer.”

It doesn’t have to be a full-time commitment. Many interims prefer working for a number of different companies simultaneously, even in good times, according to Russam. The fact is that more senior executives are available right now, and even career interims and turnaround specialists are finding work coming in more slowly. But if your company is under stress, this is definitely the time to look for the most cost-effective help you can get, not the cheapest.

In any case, it won’t break the bank, says Ian Gray, a turnaround specialist who put Tottenham Hotspur on a sound commercial footing 20 years ago, and since then has rescued more than 30 businesses, most in the private sector. “Private businesses often don’t accept that they have a problem, or if they do, they believe they can deal with it themselves,” he says. “What’s more, until they understand how interims work, they think we are very expensive.”

Interims do ask for and get eye-watering fees, but as Gray points out, you don’t have executive employment costs, termination fees, National Insurance and other charges relating to full-time appointments.

Happy returns

Gray says a turnaround manager is like the surgeon who comes in to perform an operation, and then departs after satisfying himself that the patient’s recovery plan is in good hands. The operation may be costly, but you definitely don’t begrudge the fee once you are returned to rude health. Gray talks of delivering multiples of 20 or 30 times his fee. Bruno Pace, managing director at Norman Broadbent, carries out rigorous post-assignment reviews and averages a multiple of five.

“We place interims to fill identified gaps; to work alongside and perhaps mentor particular permanent directors; to manage projects that overstretch the senior management,” he explains. “The fourth category is turnaround. Some firms have cut too deep and severed the jugular, which is the operational side of the business. It’s fine to cut costs, but when that affects operations it can slow the business. So it may be necessary to make the operation leaner before that affects every part of the business. Smaller companies are becoming more creative in their use of interims.”

The interim is generally more senior than his or her permanent equivalent, says Guy James of Veredus Interim Management. Financial expertise is necessary, but rarely a sufficient attribute – the interim is often brought in as a guru in a particular operational area. He cites a £25m specialist manufacturer in the Birmingham area which was looking for an interim production director. “It was still in profit, but the market had changed overnight and it needed to completely recast its production capability,” he says.

“But the person you bring in to do a production restructuring like that is probably not the person you’d take on full time to run it afterwards.”

This was no time to bring in a consulting firm, which could have recast production flows just as well, but whose first loyalty is always to the group. In this case, says James, the interim production director did the job forensically and with a light touch, so the company got the benefits without selling its soul.

Following Gray’s medical analogy, Midlands-based Celia Adams believes there’s no cure without diagnosis. “A turnaround specialist has to take a forensic approach,” she says. Adams has a niche interest in transport and distribution, but gets a kick out of community projects too. She has several not-for-profit rescues in her portfolio. Last year she joined the board of Worcester City Football Club, helping it survive a critical phase and continue to buy players while preparing to sell its prime site ground for development. “I took the football club on pro bono, for the experience,” she says.

Like many interims, Adams keeps many irons in the fire, holding a full hand of non-executive directorships and also acting as an angel investor, adding her money to her expertise in early-stage companies. It all adds to the value she can deliver to her clients, she says.

Real opportunity

The interim relationship is an equal one and inverts the traditional selection process. You have to convince them that you will gain from their attention. Gray has only ever turned down two requests for his services. “They didn’t have a viable business model,” he explains. “I pride myself that I haven’t lost one, so I won’t take on a hopeless case.” With more interims on the market than ever before, there is a genuine opportunity to benefit from some of the best business talent in the UK and employ them in a flexible, cost-effective way that suits your business needs and your budget.


Is the Combined Code still fit for purpose?
Original article here

• The FRC's Combined Code failed big banks and as a result is being challenged more than ever before.
• The code isn't to blame; the fault lies in its application.
• The UK's code was widely praised but it hasn't prevented failure here more than anywhere else.
• We should concentrate more on out the outcomes than the code's processes.

The Financial Reporting Council’s Combined Code on Corporate Governance has failed big banks and financial services companies, so should it still be considered the ‘gold standard’ when it comes to small businesses? John Collier of The NEDGroup reports.

Most of the recent debate about the perceived failures in UK companies’ corporate governance has been focused on big banks and financial services companies. The guidance in the Combined Code on Corporate Governance does not seem to have worked for these institutions. As a result, the code is being challenged as never before. Technically the code applies to all companies listed on the main market of the London Stock Exchange, but it is often held up as the gold standard for all listed companies, including those on the AIM. Is it still fit for purpose for these companies too?

This was the question debated by 50 non executive directors, fund managers, professional advisers and representatives from the Quoted Companies Alliance and the Stock Exchange in late May. The debate was organised by the NEDGroup, sponsored by the executive search firm Clive & Stokes International and leading interim management provider, Russam GMS. The arguments were evenly balanced but strongly held. No one really challenged the principles based approach of the code or the need to comply or explain, but some powerful points were made which will be outlined below.

Key concerns

The first point was not to blame the code for recent failures but to blame its application instead. We need strong, experienced and persuasive non executive directors – not more compliance. There was also some resistance to the idea that non executive directors require more detailed information on the business and more training in their roles and responsibilities. They need enough information to be able to challenge the principles behind proposals coming from executive management and they should already have the experience making training unnecessary.

A second powerful comment was that the UK’s code, widely praised over the last few years and seen as the corporate governance ‘gold standard’, does not seem to have prevented corporate failure here any more than elsewhere in the world. Stock market indices support this – the UK FTSE has performed broadly in line with most other major market around the world. We have no reason to be complacent.

The third was that we should concentrate more on outcomes than the code’s processes. Ensuring that value is created for shareholders is the primary role for corporate boards. The code’s preamble makes it clear that good governance should facilitate this but it could be emphasised more throughout and not simple acknowledged in the first paragraph. More specifically concerns were expressed about institutional investor engagement, risk management, directors’ remuneration and reporting on the provisions of the code. It’s the delivery, not the code.

Empathy was expressed with the difficult role of institutional investors, particularly in smaller companies. The key issue identified was not so much the lack of interest of investors but the apparent indifference of management to their views, particularly over compliance with the code’s principles. If there is little interest and no real change then it’s little wonder that investors loose heart. Again, it’s delivery not the code that’s at fault.

There was broad agreement that in one respect the code did need changing. At present its guidance on risk management is thin and is only specifically referred to in the provisions dealing with the Audit Committee and auditors. The recent high profile disasters in the financial services sector are widely seen as a result of the failure adequately to identify both the systemic risks in the world’s financial architecture as well as the operational risks some businesses were running. In future, boards must focus on such risks more than they have in the past and the code should include a main principle to this effect.

Room for improvement

There were a number of expressions of concern about directors’ remuneration (including at least one from a remuneration consultant). It was argued that the present menu of awards seemed to give rise to short term, high risk behaviours and militate against achieving a long term strategy. The provisions of the code should be amended to refer to balancing risk with reward as well as emphasising the need for clear and transparent reporting. Remuneration Committee reports have grown in length at the expense of clarity. Finally, there was a plea for genuine explanations where a company was not complying with a principle or provision of the code. As time has gone by, ‘boiler plate’ forms of reporting have emerged and real meaning has been lost.

The debate was animated and covered a lot more ground than described here. The overall conclusion was that the code is fit for purpose and no one thought we should tear it up and start again. However, there is considerable room for improvement in both the code and especially its application.


Interim managers urged to innovate
Original article here
26th Jun 2009

Innovation is the key for interim mangers if they want to prosper after the recession, according to the chairman of an interim recruiter.

Charles Russam, chairman of Russam GMS, told Recruiter that with more interims coming onto the market “until the end of 2009 at least” simply “being good at what you do” was no longer sufficient on its own. This needs to be complimented by a new and innovative approach, he says.

Russam says innovation could take a number forms:

- forming alliances with other interims with complementary skills in a specific discipline such as sales and marketing.
- bouncing ideas off other interims
- taking a course to refresh skills and technical knowledge

"Collaborating with others would allow interims to take advantage of opportunities that they as individuals could not meet, and open up new markets"

Russam says he sees increased employer demand for flexible working at senior levels when the economy recovers. With more senior executives wanting to take control of their own destinies, “what interim mangers do now will be pivotal to their futures.”


Russam GMS to provide interims for NHS organisations

The interim provider has been awarded with a contract to provide interim managers to the Department of Health and the NHS Purchasing and Supply Agency (NHS PASA). Russam GMS are one of the suppliers on the Commercial Resources Framework, which begins on the 1st June 2009 through to 30 April 2012.

This framework is a list of pre-qualified suppliers of non-permanent workers with commercial skills. As part of this framework, Russam will be tasked with providing experienced interim managers that are able to improve organisational effectiveness and cut costs.

Jason Atkinson, Director at Russam GMS comments: “Russam GMS is delighted to win supplier status under the new NHS Commercial Resources Framework in a competitive tender process. The NHS is establishing a new commercial operating model and experienced Interim Managers can play a major role in developing this new model.

“In addition, they have proven expertise in delivering organisational efficiencies and major cost savings and can transfer their skills and expertise internally to create lasting value. We have the most extensive database of Interim Managers in the UK and we are confident we can deliver the first class resources needed by the NHS to achieve its goals.”

Original article here


Rise in female interims
10th Jun 2009

Women make up a third (32%) of interim executives, according to an Ipsos MORI report by the Interim Management Association (IMA).

The findings indicate that so far this year there has been a 10% increase in female interim managers from the end of last year. A year ago, women accounted for only a quarter of interim managers, but due to demand for diverse working choices, flexibility of roles or the affects of the recession, more women are exploring interim as a career.

Kate Mansfield, managing consultant at interim management specialists Alium Partners, told Recruiter: “Our experience certainly mirrors the IMA’s findings. I would say that the number of female interims on our database is roughly 10-15% higher than 12 months ago.

“In general, with both men and women, we are receiving around 100 new profiles each week, of which we will end up working with just 5%.”

Rachel Youngman, chairman of Interimwomen.com, a website which promotes the role of women in the world of interim management, says: “Overall this is a positive step. However, in part more women could be exploring interim as a result of the recession.

“They could well end up on a database but not get any assignments. I’d like to see the figures again next year and see how many have been on assignment. It’s a tough market for interims.”

Jason Atkinson, director of interim management company Russam GMS, told Recruiter: “Although the figures mirror what Russam is seeing, it still isn’t good enough.

“We need to be putting together shortlists for clients that are 50/50. Clients are looking for diversity, reflecting the society in which their business operates in. They don’t want ‘white male’ all the time.”


Job done
The People Bulletin
Original Article here

Some complex one-off projects can be handled more effectively by interim managers than incumbent staff. Jason Atkinson explains why.

In the current economic climate, many businesses are restructuring or dealing with complex change management projects. Often, they lack the skills or resources in house to handle these projects, and one of the ways in which some companies are dealing with these challenges is to deploy interim managers. It is a misconception that interim managers are the preserve of large companies only – smaller companies sometimes use them on a part time basis.

What are interim managers?

Interim Managers are skilled individuals who can bring specific experience to an organisation for a set period of time. They often have a proven reputation for implementation and will be expected to deliver results from day one. They work on a daily rate so their costs can be carefully managed by companies hiring them and they come without the overheads associated with recruiting a permanent employee – there is no holiday pay, sick pay or pension.

Briefing and integration

But, there are several considerations that a company should make before hiring an interim. Firstly, it is important that they can provide a detailed brief of the job role with clear goals laid out, set deliverables, timescales and expectations, so the individual knows exactly what they have to deliver from day one. Often when interim assignments go wrong they can be traced back to the initial briefing stages.

Another consideration is how the interim manager will integrate into the organisation’s structure and work within teams and also how they will hand over their work once the assignment is completed. Interims are generally hired because they have knowledge and skills that are missing within an organisation, so businesses should set up processes to ensure some of this knowledge and skills can be transferred to internal staff before the interim manager leaves.

Interims aren’t shrinking violets either – often they are there to deliver major change processes, make tough decisions and bring to the table an objective perspective and solutions that might not be received well by everyone in an organisation.

Example 1: Charity finance

Where projects work well it is because businesses have a clear brief that addresses address specific challenges. For example in the charity sector, interim managers are being brought to help bid for government funds.

For many charities, tendering for funding is a completely new area, so they are using interims from commercial backgrounds to help them put together successful tender bids, negotiate contracts and grants and to implement financial strategies that will help their long term financial success. They are also using them to train internal staff and pass on their knowledge and skills so in the future charities can bid for contracts independently.

Tom Hamilton, is an experienced finance director whose experience has involved tender exercises for capital projects, professional appointments, PFI negotiations and planning applications to develop ground as well as cost cutting and business development models and appraisals. He is currently working for a charity.

Tom believes that interims are being used more for this kind of work because projects such as tendering for contracts or fund raising tend of be one-off in nature and interim managers who are experienced in this area can come in and get on with the work from day one – there is no learning curve. He also feels they are well behind the private sector in terms of efficiencies and deliveries and that interims can help voluntary organisations develop commercial skills.

Example 2: Change management

A consideration for organisations that need to deliver major change management programmes involving complex business or people issues is that they should be looking to work with an interim with a proven track record in these areas. It helps if the individual knows how to work with an organisation going through sensitive and difficult times. Ian Gray is a highly experienced turnaround expert and has a track record including projects with Golden Wonder and Tottenham Hotspur, as well as public sector organisations. Ian believes that getting the buy-in from the people within the organisation on any change management project is essential. Ian recently worked on two major projects for Mayday Healthcare NHS Trust in Croydon, and Epsom and St Helier University Hospitals NHS Trust where he was tasked with delivering major process improvements and eliminating millions of pounds of deficit.

In 2006, Ian began work at Mayday to undertake a project which eliminated a predicted £9m deficit through effective financial and commercial evaluation of the organisation in just four and a half months. To do this, he first conducted a complete financial and commercial evaluation and then worked closely with the senior managers and clinical and non clinical staff to make changes to improve working practices and save money whilst ensuring that patients received the best standard of care.

One of the main areas of inefficiency was in the operating theatres - something which Ian tackled first. There were 12 operating theatres in the trust, but only eight could be used at any one time because of the number of surgeons available and the need to clean theatres following operations. With the theatres were working at just 66% efficiency, Ian advised that four theatres should be closed and the remaining ones should be rotated to ensure they could be cleaned and fully staffed. This change was implemented and the efficiency level rocketed to 95%. A key part of the success of the turnaround project was to ensure that all staff including managers, clinical staff and non clinical were involved in the decision making and ‘bought into’ the new processes. Ian ensured that mentoring was available to them to help them deal with the changes.

The right environment

Interims can offer businesses a flexible, experienced and immediate resource that can help them address their most complex challenges. But businesses need to ensure first that they set up the right environment and put processes in place that will ensure the project is successful and delivers lasting value.

Jason Atkinson

Jason Atkinson is Executive Director of Russam GMS, a UK interim management provider and is deputy chairman of the Interim Managers’ Association
www.russam-gms.co.uk



Landing Public Sector Contracts
Sophie Hobson picks apart the procurement process and investigates how small businesses can overcome the notorious challenges public tenders pose them.

The government sticks to its pay-on-time promise so it can drive a harder bargain than a private client who may pay more, but won’t necessarily pay on time How do you get a slice of the £175bn worth of work available through public sector contracts?

It’s not easy. Only one in five public sector contracts go to small and medium sized businesses. A report on procurement from the All-Party Parliamentary Small Business Group (APPSBG) released in April found small businesses are disadvantaged over larger competitors, despite improvements to procedures. In fact, there’s been a decline in public sector contracts awarded to small businesses over the last two years.

To download full article as a word document, click here.



Tory contracts would let charities earn a profit, pledges Hurd
Original article here
20th May 2009, Tania Mason

A Conservative government would enable charities to earn a surplus from public sector contracts just as private sector providers do, shadow charities minister Nick Hurd told an audience of charity chief executives last week.

Hurd outlined some of the Conservative Party’s proposals for the sector at a drinks reception organised by interim managers agency Russam-GMS.

He said charities delivering services for the government should be able to earn a return on their investment in the same way as the private sector does, in order that they can "scale up and replicate the services so that more people can benefit".

"Where third sector organisations are competing with the private sector, I don’t see why their ambitions should be capped," he said. "Often the more interesting solutions can be found in the third sector and in communities, so we want to do more to help them scale up and replicate."

Opposition from Acevo chair

But this idea found little favour with recently-appointed Acevo chair Lesley-Anne Alexander, who spoke after Hurd had departed.

"I am old-fashioned enough to think government has enough to do without helping charities make a profit" she said.

"I’m all for full-cost recovery – which is in jeopardy at the moment – but I’m not sure charities should be expecting a contribution to their overheads. I’ll probably be shot by lots of CEOs for saying this but I don’t think we should be making a profit out of government. We should be compensated for our work but it should be fair on both sides."

‘Get away from initiative-itis’

Hurd also said the Conservatives wanted to "get away from the ‘initiative-itis’ that has bedevilled this government".

"If you had £150m to increase volunteering, would you have created the Experience Corps and v as your sole policy tools?" he asked. "When you look at volunteering, who is making it work – the Met Police and corporations. I’m a big fan of employer-led volunteering. Those more progressive companies who are doing it, like T-Mobile, can see the value in human asset development."

Hurd also mentioned the Conservatives would reform gift aid and reduce the current bureaucracy around funding, but gave no details as to how.

And in response to a questions from RNID chief executive Jackie Ballard about whether we was "hostile, pro or neutral" about large voluntary organisations that have extensive contracts with government, he described himself as "entirely neutral".

“What strikes me about the sector is what a diverse ecosystem it is, and that is the policy challenge, you have to think in the round,” he said. But he was “agnostic” as to whether charities or social enterprises were the better vehicle: “I can see that the desire of all is to help people and improve lives.”

He admitted that his private view was that there are too many charities, but insisted that was for the market to decide, not for government to dictate.



Falling income and redundancies are hallmarks of recession, say charity interim managers
By John Plummer, Third Sector Online, 15 May 2009
Russam GMS's latest statistics make grim reading
Original article here

Income has fallen at more than three-quarters of charities and a similar proportion have made redundancies since the recession began, a survey of 450 interim managers working in the sector has suggested.

The figure is contained in research published this week by interim manager provider Russam GMS on how charities are being affected by the economic downturn.

When asked last month, 76 per cent of interim managers said income had fallen at their charities and 74 per cent reported that there had been redundancies where they were working.

However, the economic downturn has had some positive effects: 30 per cent of charities have reduced their supply costs, 25 per cent have recruited more volunteers and 25 per cent are judged by the interims to have improved their governance arrangements.

Stephen Brooker, chairman of the charities practice at Russam GMS, urged charities to make greater use of collaboration and outsourcing to reduce costs.

"It is heartening that many charities have responded to the crisis in such a positive way, with increased financial monitoring, better governance and new policies and processes," he said.

Interim managers remaining positive despite difficult market conditions
29th April 2009

Over three quarters (78%) of interim managers are not expecting the economy to recover during the next 12 months, according to interim management provider Russam GMS. The results of their second “Recession and the Interim Manager” survey (which encompasses the opinions of 10,000 interims) discovered that two thirds (66%) of interims are struggling as a result of the current economic crisis. Despite these gloomy figures, 61% of interim managers are confident that they can lead businesses through the recession.

Half of all interims surveyed said their main problem is that there are fewer assignments on the market. However, to combat these difficult times 48% said they had made networking their number one priority. Also, 61% remain confident that interim management is a good place to be right now in spite of these challenges.

Charles Russam, Chairman of Russam GMS comments: “Our second ‘Recession and the Interim Management survey’ has revealed clearly that the recession is now making its impact felt strongly, with fewer assignments around than six months ago, increased competition for assignments and a squeeze on daily rates. The situation has definitely worsened in six months when 48% of interims complained the recession was affecting them then.”

“But like six months ago, interims are upbeat, incredibly resilient and they remain confident fresh opportunities will emerge soon and that their services will be in demand by businesses when recovery comes. One thing is clear, to survive this downturn, interims need to be true entrepreneurs and get creative in their networking, seek out new opportunities, ensure their skills are up to date and that they present themselves in the best way possible at all times. Interims that remain positive, resourceful and focused will be the ones snapped up post recession.”


Short term - interim managers are far more than just stop-gaps
Written by: John Wilson
27th March 2009

Using interim managers, utilities should be able to cope with the double whammy of skills shortages and an ageing workforce, says John Wilson.
While other sectors are making job cuts, utilities in the UK still face a major skills crisis. In January 2009, research from sector skills council Energy & Utility Skills reported that there was a shortage of skills across the industry. The situation is most pronounced in the electricity sector, where 9,000 extra skilled workers are needed in the UK by 2015.

Another challenge facing utilities is that many older, experienced workers are nearing retirement age. Some reports estimate that during the next five to ten years, many utilities will lose 50 per cent of their current workforce to retirement. Soon there will be large gaps at senior levels within companies and they stand to lose vast amounts of critical knowledge if it is not successfully passed on to the next generation of workers.

The situation is likely to get worse. There are several fast-emerging areas of growth, including nuclear power and renewable energy. With most skilled engineers currently in their 50s and a shortage of engineering graduates, the lack of talented engineers is going to be a major challenge for many companies in the next few years. So what can utilities do to avoid a skills crisis when key workers retire and how can they ensure the successful transference of knowledge?

Original Full Article Here.

Interim Managers - the key to driving efficiency in the NHS
Jason Atkinson, Director, Russam GMS

In the private sector it is standard practice to hire an Interim Manager to address a specific business challenge, deliver a strategic project or help an organisation restructure or turnaround. This was not always the case in the NHS, but times are changing fast. In recent years, the use of Interims in the NHS has risen significantly as Managers in NHS Trusts are understanding increasingly the value these experienced and seasoned Interims executives can deliver. They are now being brought in to help Trusts transform the way they operate, improve patient choice and services and to improve efficiencies at every level.

Original Full Article Here.

Interim marketers see pay decline
Marketing Week, Author: Jo Roberts,
17th February 2009

Interim marketing managers are taking a pay cut of 6 per cent as the economic climate worsens.

Since June 2008 the daily rate has fallen from £561 a day to £527 in December 2008, according to research carried out by recruitment agency, Russam GMS.

The survey also reveals an 11 per cent drop in the amount of work available. Of the 1000 respondents, part-time interim marketers are being worst hit with pay improving slightly for full-time workers.

Original Full Article Here

Nine per cent pay increase in spite of recession in interim management
Engineer Live, 12th February 2009

Pay rates for engineers working as Interim Manager’s daily rates rose by 9 per cent in the period from June - December 2008, according to the latest Snapshot market survey of 9000 Interim Managers from Interim Provider, Russam GMS.

Original Full Article Here

No escape for interims in recession
HR Director, February 2009,

Although the average daily rate for an interim has risen by 1.5 percent, from £603 to £612 a day, interims operating in the financial sector have experienced a drop in average daily rate of four percent.

Charles Russam, founder and chairman of Russam GMS, commented: “The slowdown in the number of assignments is probably an accurate reflection of the market right now and, unfortunately, no surprise. There remains a strong demand for interims in many sectors including central and local government, the NHS, education and in the not for profit sectors in particular.”

Original Full Article Here

Grapevine Online
Russam GMS appoints new Head of Charity Practice

Ian Joseph has been appointed as the new Practice Head for Russam GMS’ Charities division. He is responsible for growing and developing the business and meeting the increased demand for interim managers in the not-for-profit sector. Joseph’s previous position was at Rockpools, where he recruited high-profile executives for the not-for-profit sector.

Marketers pay packets fall by 6% over the past six months
Utalk Marketing

There was a 6% drop in daily rates for interim managers specialising in marketing according to the latest Snapshot market survey of 10,000 interim managers from interim provider, Russam GMS.

Original Full Article Here

Interim day rates increase
Recruiter, 9th February 2009

Day rates for interim managers continue to climb, but demand is leveling out.

A new study by interim management recruiter, Russam GMS, found the average day rate increased from £603 to £612 between June and December 2008. Charles Russam, chairman of interim management recruiter Russam GMS, told Recruiter:

“Permanent recruitment has almost come to a stop in the sector. At the moment interim levels are holding, but a lot of contracts are beginning to run out and we don’t yet know if they will be renewed.”

The study recorded an 11% drop in interim management volumes, the first slowdown recorded since the survey started in 2000. Doug Baird, managing director of Interim Partners, told Recruiterdemand had remained consistent over the last six months, adding: “We haven’t seen any downward pressure on margins so far.”

For further analysis, see the next edition of Recruiter, 18 February.

Russam Appoints
Recruitment International, 6th February, 2009

Russam GMS, a leading provider of Interim Managers has appointed Ian Joseph as practice head for its Charities division to help grow and develop the business and meet the increased demand for Interim Managers in the not-for-profit sector.

Original Full Article Here

Women in the workplace: A career in interim management
Training Zone, 5 February 2009

One reason why there is a lack of women in the boardroom is because many are becoming interim managers, which allows them to work at a very senior level but enjoy a more flexible work-life balance, suggests Charles Russam.

In January, the TUC claimed that women will be hit hardest by the recession because many work in part-time jobs and in industries such as retail or hospitality which have been affected badly by the downturn.

The TUC's general secretary Brendan Barber said we are in an "equal opportunities recession", compared to the aftermath of Britain's previous economic downturns, when the majority of job losses were based in manufacturing and industry.

Whether or not women will be more badly affected than men remains to be seen, but new patterns of female working in the UK have been evolving for some time. Today, there are many new career options available which are ideally suited to women who want greater flexibility in their working lives, such as interim management.

Full Original Article Here

Pay rates for interim managers soar despite market decline
Computer Weekly, 4th February 2009

Pay rates were still rising in December for IT staff in interim management positions, despite the market shrinking 11%.

IT interim managers can now command a record £697 a day despite the first market slowdown recorded since 2000.

Interim manager provider Russam GMS surveyed 9,000 managers, revealing an 11% drop in the volume of available work. This is the first recorded slowdown since the company started the surveys in 2000.

Original Full Article Here

IMA launches Institute for interim managers
Recruiter, 4th February 2009

The Interim Management Association (IMA) has launched the IMA Institute, giving interim managers individual membership of the IMA for the first time.

Jason Atkinson, deputy chair of the IMA, speaking exclusively to Recruiter, said that the Institute was “the most important initiative the IMA had set up since its founding 20 years ago”.

The IMA was created for business providers of interim management, of which there are currently 38. The Institute offers individual interim managers accountable and professional representation for the first time.

Original Full Article Here

Interim managers could help firms survive the slump
The Telegraph - Business Club, 21st January 2009

In this current climate, hiring new permanent senior level staff to run projects might be considered a major risk and financially unfeasible for small businesses. But, to remain competitive, companies cannot afford to put plans on hold, put their head in the sand and hope the upturn isn’t too far away, while the competition steals a march.

One solution for small businesses is to hire interim managers - senior level executives who can be brought into troubleshoot, handle major projects, fill in gaps left by permanent staff or deal with major business challenges, such as change management or organisational restructure.

These seasoned and experienced executives have been there before and know how to get companies through tough times. They are men and women with solid track records of working at a senior level in major companies, or, they may have sold their own successful business and now prefer handling short engagements of weeks or months rather than a permanent role.

Original Full Article Here

Russam GMS appoints new head of charity practice to meet demand for Interim Managers
Onrec.com, 20th January 2009

Russam GMS, a leading provider of Interim Managers has appointed Ian Joseph as practice head for its Charities division to help grow and develop the business and meet the increased demand for Interim Managers in the not-for-profit sector.

Ian Joseph brings to Russam GMS an in-depth knowledge of the sector and a great deal of experience. He joins from Rockpools' not-for-profit business where he recruited high profile executives for clients in the sector.

Original Full Article Here

Embracing change
Government Business, January 2009

Jason Atkinson, deputy chair of the Interim Management Association, explores the valuable role interim management has to play in helping the public sector achieve its goals.

Today, public sector organisations face more pressure than ever to deliver a wide range of services. That means meeting demand for even higher levels of quality and service and putting resources to the front-line. Quite often these pressures necessitate changing how the authority or body operates – to inject a more commercial outlook, to redefine roles, to eliminate unproductive work habits, or to integrate new processes and procedures, as well as technology, to support the business.

Original Full Article Here

Demand for interim managers will rise, argues recruitment chief
By Patricio Chile, Third Sector Online, 14th November 2008

Third sector organisations will see a rise in demand for interim management positions as the recession takes its toll, a recruitment company has predicted. Charles Russam, chair of Russam GMS, said more people would be entering the interim market and looking for jobs in the voluntary sector.

Original Full Article Here

A justifiable expense
Society Guardian, Wednesday 29th October 2008

Costing as little as a third of a consultant's fee, interim appointments also dodge the costs associated with full-time employee recruitment.

Overqualified, expensive, short-term and often part-time. On the face of it, it is hard to see how interim managers provide good value for money. At a time of economic uncertainty and given the generally cash-strapped nature of the public and third sectors, hiring interims can be regarded as a contentious move.

The industry is worth around £560m a year, according to the Interim Management Association (IMA) while the latest figures from interim management provider Russam GMS reveal that average daily pay for a manager across all sectors was £585 - 5.4% more than the previous year. In the not-for-profit sector the average daily rate drops to £452 and senior interims in the private sector can charge more than £1,000 a day.

Original Full Article Here

Let's mix it up a little
Society Guardian,
29th October 2008

White men at the tail end of middle age - that's the interim manager stereotype. What's being done to further equal opportunities in the sector?

Kapil Kapur finds working as an interim manager helps him break through the barriers that made it hard to get past the interview stage for permanent jobs. He says employers worry about his ability to communicate because he has a cleft lip. But for interim roles he has found more people willing to give him a chance.

Original Full Article Here



It's a giving thing
Guardian, Wednesday
29th October 2008

Employment of well-paid managers at a charity will always generate debate. But the sector, like business, often needs to call in expertise at short notice Society.

When it comes to working with people living with dementia there is a responsibility to ensure a good service is maintained at all times, says Andrew Ketteringham, director of external affairs at the Alzheimer's Society. So, when faced with a vacancy in one of its key roles, such as fundraising, the organisation often calls in an interim manager to fill the gap.

Original Full Article Here



A rewarding way to work
Guardian
29th October 2008

The current financial uncertainty has increased demand for interim managers - highly skilled freelance executives who can deliver results quickly and efficiently. Debbie Andalo reports

The recent economic turmoil has rocked the world's financial markets, triggering a rise in unemployment and a plunge in bank shares. One beneficiary, though, may be the growing army of freelance senior executives working in the public and voluntary sectors.

Original Full Article Here

Guide to interim management

Buoyant market
Guide to interim management
4th September 2008

Interim managers with business-critical skills are the winners in the economic downturn – so what’s the market really like? Joy Persaud gives an overview.

The saying, “one man’s meat is another’s poison”, could be applied to the current fortunes of interims.

After all, a recession, as it is now being called, spells insecurity and even redundancy for some, but may signal good times for the interim manager.

For starters, there’s the obvious freeze or reduction in the number of new permanent posts available in organisations where work nonetheless needs to be done. Talented interims are therefore required to undertake project work and to handle situations in firms that lack experience in certain fields.

Original Full Article Here



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