How to... get value from interims
Many organisations aren’t making the most of their interims, but, in the current climate, getting value for money is crucial. Raj Tulsiani has some tips
Date:
16 September 2010
Source:
Guide to interim management
Page:
22
The new economic landscape has presented organisations with a more accountable, value-focused environment, in which organisations need to be mindful of return on investment across all aspects of their operations. It’s a more exacting climate in the context of an austere budget and economy that appears to show early signs of recovery, but still demands caution and diligence on the part of industry leaders.
The interim management market has been described as a “hidden economy”: literally hundreds of thousands of senior interims collectively earning billions every year. Interim management has become an important cog in the UK’s workforce, and when it is done well, it is a highly accountable, value-focused resource, providing a targeted force to drive change or achieve specific outcomes. However, that often isn’t the case. Employers can miss the opportunity to realise their return on investment. The following steps show you how to get the basics right to ensure you’re getting value from your interim.
1 Choose the right recruitment partner
Look for interim management partners who bring a “process-heavy” approach to recruitment. Not only should the mandatory due diligence elements be performed, but the provider should take the extra step of outlining clear terms of reference for the role as part of the offer negotiation. It is also worth bearing in mind how much involvement the partner has after the placement has been made. Is the provider “triangulating” communication – facilitating regular dialogue between the client and the interim to ensure everything is proceeding to plan, bearing in mind that the plan may change fairly often in an uncertain economy?
The onus for managing the performance of an interim manager should be shared between the hiring manager, or key stakeholders, and the interim management provider. Why not hold the provider accountable, as well as the interim? That way, you’ll very quickly isolate the suppliers that are true strategic partners, and strip out the database-driven “body shoppers”.
2 Ensure the assignment is properly outlined
Your recruitment partners should be helping the interim and client by highlighting, clearly and concisely, what needs to be achieved in the assignment. Setting out those goals at the start, just as you would for a new permanent hire, is a crucial part of the process and something true strategic partners take responsibility for, working in collaboration with the client and the interim.
3 Introduce performance incentives for the interim
Some suppliers offer innovative payment models that provide a performance incentive to the interim, such as linking a proportion of an interim’s remuneration to the achievement of pre-agreed objectives. For example, an interim might receive £950 a day, with a stretch bonus of a further £150 a day triggered at the three-, six- and nine-month stages of the assignment, subject to the achievement of pre-agreed targets. This structure provides a significant incentive for the interim to hit their targets – and a great way for the hiring organisation to underpin return on investment.
4 Ensure a performance management structure is in place for the interim
Professional interims who consistently deliver exceptional results tend to be self-motivated: their experience, ambition and professionalism drive them to success, rather than a formal performance management platform. But it’s unlikely that interims are being measured on an organisation’s performance management programme, or indeed working to the same timeframes or reporting structures, as permanent employees. Sharon Kardam, director of European Recruitment at Vistaprint, says: “Measuring performance should always be at the front of the hiring manager’s mind – just as it is with permanent employees. The interim – and the key stakeholders in the organisation – must understand exactly what they are there to do and when they need to achieve it.” Interims need to have clear, documented objectives with timeframes which are regularly revisited over the course of their tenure.
5 Give feedback and revisit the interim’s progress
Too often interims are crying out for feedback on how they are performing because they want to learn and improve. As well as returning at intervals to assess the interim’s work, ensure you don’t forget to give them feedback. This is standard, and obvious, practice for permanent employees, but often gets missed for interims. Interim Mark West says: “I do see a lot of fellow interims who are somewhat directionless – often through no fault of their own. They haven’t been given a very clear idea of what they need to achieve, and that means they don’t maximise the client’s return on investment.”
Raj Tulsiani is CEO of Green Park Interim and Executive Resourcing
Key points
- Select “process-heavy” suppliers who perform rigorous due diligence, and who help you to set and agree your terms of reference and desired outcomes for the assignment.
- Ensure your partners assess stakeholder management competencies and culture fit as well as skills and experience.
- Look for innovation in pricing models to maximise your return on investment.
- Ensure you have an assignment performance management structure – your provider should be able to provide this platform.