Fmcg companies are wising up to the benefits of bringing in seasoned professionals as interim managers to provide a quick fix in challenging times, says Dave Waller
"I think fast, I talk fast, and I need you guys to act fast. So, pretty please, with sugar on top... clean the car." Give or take a few expletives, those are the words of Pulp Fiction's Mr Wolf, an outsider called in to manage a pair of gangsters and sort out an unsavoury mess. Job done.
Tarantino and fmcg (fast-moving consumer goods) may seem strange bedfellows, but Wolf's approach is surprisingly similar to the traditional role of the interim manager. In the past, interims were seen as experts to call in during a crisis. These days, however, they are increasingly employed for proactive reasons. As recession takes hold, experienced interims are reliable quick-fixers, who, executive boards realise, can boost performance without costly long-term commitment.
According to research carried out for the Interim Management Association by Ipsos Mori, the interim sector is a £1bn industry. And it's proving well suited to the downturn. "The interim market isn't exactly up," says Nick Wright, head of retail at Penna Interim Executive, "but it's proving more resilient in the face of the downturn than permanent recruitment. Right now if there's a chance to bring in outside experience to improve performance, companies will do so."
The IMA says 70% of interim appointments are for specialist projects, ranging from making redundancies to implementing lean processes to strengthening areas of the business lacking in-house expertise. Fmcg companies are quickly catching on. Ipsos Mori says fmcg is now the second-biggest user of interims in the private sector, responsible for 10% of appointments. Admittedly, it's a long way behind banking and finance at 30%, but there was a 3% jump in interim appointments in the sector in the latter part of 2008.
And it "hasn't hit the tipping point yet" says Jason Atkinson, deputy chairman of the IMA and a director at Russam GMS, which has placed interims at UBUK and M&S. He sees no reason why it shouldn't soon. "Retail groups could do worse than getting seasoned professionals in for a bit of x-factor," he says. "These interims have survived downturns before, and know how to take costs out of business."
The main selling point of the interim, some 20,000 of whom are now registered on IMA's database, is the speed with which they can set about making changes. Often they have far more experience than the role demands. And with about 30% of candidates operating as 'serial interims', they know how to come into a new environment, roll their sleeves up and get stuck in. They have to: most interim contracts last only six months.
"When you're paying £700 to £800 a day for an interim project director of, say, a new CRM system, you need them to hit the ground running," says Atkinson. "But that person may have five or 10 years' experience of similar projects in other sectors, so don't need to be told what to do. These are established players, they've been around a long time, working with chief execs and boards, on intricate business issues. From the off they use a fresh approach to challenge how things are and get things done."
Over at Penna, Wright cites an fmcg-trained marketer he sent into a leading DIY retailer to develop its category marketing. Another joined an electrical retailer and sped up its program of store openings.
Jacqueline Hilton, MD at Fidelis Partners, has placed interims in sales and marketing roles at Birds Eye and Hovis. She says that, as outsiders, interims are able to focus on the job "without getting dragged into the politics and backbiting". It's also easy to measure whether they're worth the money. "They can be tracked against the deliverables," says Hilton. "So you can say, 'yes it cost x, but he delivered y'."
Such cost-effectiveness becomes even more important when trading is tough. During the uncertainty of a downturn, interims provide an alternative to making long-term commitments. When the job is done, the interim simply moves on.
Hence interims enable companies to avoid gaining a reputation for hiring and firing. "No-one likes having to make people redundant," says Mandy Ferguson, a former MD at Ryvita and an advocate of employing interims. Ferguson also stresses an interim can help with the 'suck it and see' approach. "If you're not sure whether a business opportunity has legs, bring in an interim to suss it out, to see whether it's worth investing in a permanent person."
There are, of course, downsides - not least the cost. The IMA says the average day rate for an interim fmcg exec is £563, which may seem an unnecessary exuberance in the current climate. But the unavoidable truth is that flexibility and experience cost money. And once the day rate is negotiated, an interim appointment lacks the hidden costs of a permanent employee - holiday or sick pay, maternity leave or health insurance.
Some claim there is a risk in bringing outsiders in to boss around an established team. The key here is to research the appointment for cultural fit as much as you would for a permanent employee. Avoid taking short cuts when recruiting - conduct proper interviews and reference checks, says Wright. "It has to happen quickly, but don't rush it. Get it wrong and you could end up with a project months behind schedule," he warns.
And employers that prefer to be prudent with their appointments right now may well turn to interims to capitalise when the market recovers - especially if they have been forced to cut back. "If a company is downsizing or opting not to fill open vacancies, it will find itself short when the economy picks up," says Wright. "Interims are a good way to rebuild."
For now, in a downturn, it has never been more important for fmcg companies to get their entire operations firing as effectively as possible. Experienced interims can ring the changes, while delivering concrete proof the investment is paying off.
At times like these, decisiveness is a quality worth paying for. And who wouldn't benefit from the Mr Wolf touch? "That's 30 minutes away," he says when he receives his brief. "I'll be there in 10."
"I think fast, I talk fast, and I need you guys to act fast. So, pretty please, with sugar on top... clean the car." Give or take a few expletives, those are the words of Pulp Fiction's Mr Wolf, an outsider called in to manage a pair of gangsters and sort out an unsavoury mess. Job done.
Tarantino and fmcg (fast-moving consumer goods) may seem strange bedfellows, but Wolf's approach is surprisingly similar to the traditional role of the interim manager. In the past, interims were seen as experts to call in during a crisis. These days, however, they are increasingly employed for proactive reasons. As recession takes hold, experienced interims are reliable quick-fixers, who, executive boards realise, can boost performance without costly long-term commitment.
According to research carried out for the Interim Management Association by Ipsos Mori, the interim sector is a £1bn industry. And it's proving well suited to the downturn. "The interim market isn't exactly up," says Nick Wright, head of retail at Penna Interim Executive, "but it's proving more resilient in the face of the downturn than permanent recruitment. Right now if there's a chance to bring in outside experience to improve performance, companies will do so."
The IMA says 70% of interim appointments are for specialist projects, ranging from making redundancies to implementing lean processes to strengthening areas of the business lacking in-house expertise. Fmcg companies are quickly catching on. Ipsos Mori says fmcg is now the second-biggest user of interims in the private sector, responsible for 10% of appointments. Admittedly, it's a long way behind banking and finance at 30%, but there was a 3% jump in interim appointments in the sector in the latter part of 2008.
And it "hasn't hit the tipping point yet" says Jason Atkinson, deputy chairman of the IMA and a director at Russam GMS, which has placed interims at UBUK and M&S. He sees no reason why it shouldn't soon. "Retail groups could do worse than getting seasoned professionals in for a bit of x-factor," he says. "These interims have survived downturns before, and know how to take costs out of business."
The main selling point of the interim, some 20,000 of whom are now registered on IMA's database, is the speed with which they can set about making changes. Often they have far more experience than the role demands. And with about 30% of candidates operating as 'serial interims', they know how to come into a new environment, roll their sleeves up and get stuck in. They have to: most interim contracts last only six months.
"When you're paying £700 to £800 a day for an interim project director of, say, a new CRM system, you need them to hit the ground running," says Atkinson. "But that person may have five or 10 years' experience of similar projects in other sectors, so don't need to be told what to do. These are established players, they've been around a long time, working with chief execs and boards, on intricate business issues. From the off they use a fresh approach to challenge how things are and get things done."
Over at Penna, Wright cites an fmcg-trained marketer he sent into a leading DIY retailer to develop its category marketing. Another joined an electrical retailer and sped up its program of store openings.
Jacqueline Hilton, MD at Fidelis Partners, has placed interims in sales and marketing roles at Birds Eye and Hovis. She says that, as outsiders, interims are able to focus on the job "without getting dragged into the politics and backbiting". It's also easy to measure whether they're worth the money. "They can be tracked against the deliverables," says Hilton. "So you can say, 'yes it cost x, but he delivered y'."
Such cost-effectiveness becomes even more important when trading is tough. During the uncertainty of a downturn, interims provide an alternative to making long-term commitments. When the job is done, the interim simply moves on.
Hence interims enable companies to avoid gaining a reputation for hiring and firing. "No-one likes having to make people redundant," says Mandy Ferguson, a former MD at Ryvita and an advocate of employing interims. Ferguson also stresses an interim can help with the 'suck it and see' approach. "If you're not sure whether a business opportunity has legs, bring in an interim to suss it out, to see whether it's worth investing in a permanent person."
There are, of course, downsides - not least the cost. The IMA says the average day rate for an interim fmcg exec is £563, which may seem an unnecessary exuberance in the current climate. But the unavoidable truth is that flexibility and experience cost money. And once the day rate is negotiated, an interim appointment lacks the hidden costs of a permanent employee - holiday or sick pay, maternity leave or health insurance.
Some claim there is a risk in bringing outsiders in to boss around an established team. The key here is to research the appointment for cultural fit as much as you would for a permanent employee. Avoid taking short cuts when recruiting - conduct proper interviews and reference checks, says Wright. "It has to happen quickly, but don't rush it. Get it wrong and you could end up with a project months behind schedule," he warns.
And employers that prefer to be prudent with their appointments right now may well turn to interims to capitalise when the market recovers - especially if they have been forced to cut back. "If a company is downsizing or opting not to fill open vacancies, it will find itself short when the economy picks up," says Wright. "Interims are a good way to rebuild."
For now, in a downturn, it has never been more important for fmcg companies to get their entire operations firing as effectively as possible. Experienced interims can ring the changes, while delivering concrete proof the investment is paying off.
At times like these, decisiveness is a quality worth paying for. And who wouldn't benefit from the Mr Wolf touch? "That's 30 minutes away," he says when he receives his brief. "I'll be there in 10."
Stoneham gathers no moss
With 23 years in fmcg under his belt, Jason Stoneham moved into interim contracting in 2007 before setting up his own recruitment business, JPS Solutions. "Interims are a very flexible resource - switch it on, switch it off," he says. "Often companies need a sales boost, or staff are stretched. Ryvita brought me in 18 months ago. I managed UK convenience and Ireland for a few months until the permanent person came on board. Then I stayed on to set up a channel outside the top five mults and convenience. After that I was at Tesco for a while before I returned to run Ryvita's UK convenience.
People often ask how I can do it. There's no security, and you never really become part of the team. But every job you do gives added experience to offer the next company. It's also very rewarding financially, and gives you better work-life balance. Interims tend to work hard for six months, and then take a break - I've used that time to earn my powerboat qualification."
With 23 years in fmcg under his belt, Jason Stoneham moved into interim contracting in 2007 before setting up his own recruitment business, JPS Solutions. "Interims are a very flexible resource - switch it on, switch it off," he says. "Often companies need a sales boost, or staff are stretched. Ryvita brought me in 18 months ago. I managed UK convenience and Ireland for a few months until the permanent person came on board. Then I stayed on to set up a channel outside the top five mults and convenience. After that I was at Tesco for a while before I returned to run Ryvita's UK convenience.
People often ask how I can do it. There's no security, and you never really become part of the team. But every job you do gives added experience to offer the next company. It's also very rewarding financially, and gives you better work-life balance. Interims tend to work hard for six months, and then take a break - I've used that time to earn my powerboat qualification."
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