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B2ER Thought Piece

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B2ER Thought Piece

B2ER Thought Piece

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  • 1. Interim Consulting sees positive signs for 2009 PANIC! RECOVERY…? REALISATION GOOD TIMES HIGH • Programmes suddenly stop • Programmes restarted • The world keeps • Large implementation & transformation turning… programmes going full-steam ahead • “Big 5” and interim • Hiring managers realise value of Interims over “Big 5” consultants kicked out • The work still • Lots of work for “Big 5” consulting and • Broader economy slowly recovers NUMBER OF INTERIM CONSULTING ASSIGNMENTS needs to get interim consultants alike • Permanent employees laid • Day rates recover slowly done… off • High day rates • The work can’t get • Hiring freezes done without • Lots of “Big 5” consultants interim fired / take voluntary consultants… redundancy • Hiring managers begin resourcing interims again • Lower day rates: lots of supply, limited demand LOW Sep Jan Apr 08 09 09 1 Copyright B2E Resourcing, February 2009
  • 2. The Emergence of the Interim Consulting Industry CREDIT CRUNCH, RECESSION GREAT DEPRESSION Y2K “BUG”, DOT COM BURST INDUSTRIAL REVOLUTION, TAYLORISM RESTRICTIVE DUTCH LABOUR MARKET  FIRST INTERIM LINE MGMT HIGH PROFESSIONAL LINE MANAGEMENT [PERMANENT] NUMBER OF PRACTICIONERS “BIG 5” CONSULTING [PERMANENT] INTERIM LINE MANAGEMENT EARLY MGMT INTERIM CONSULTING CONSULTANTS [MCKINSEY, BOOZ] LOW 1900 1930 1970 1980 1985 1990 1995 2000 2005 2010 2015 2 Copyright B2E Resourcing, February 2009
  • 3. Increase in number of Interim Assignments PUSH AWAY FROM “BIG 5”: PULL TOWARDS INTERIM: “BIG 5” INTERIM • “Big 5” no longer equity • Lucrative: pro-rated, ~twice the • Not interested in providing single • Easy to hire single consultant for partnerships cash salary resource discrete piece of work • Massive day-rate mark-up • Flexibility & choice: choose to • Junior consultants “learn on job” • Interim highly qualified and “hit relative to salary work when, where & on what at client’s expense ground running” • Poor work / life balance • Short 3-6mth “high impact” • Expensive – up to £1,500 per day • Excellent value – typically ½ or less assignments for even junior consultant day rate of “Big 5” • Shift to multi-year transformation programmes – little variety • Slow bureaucratic process to hire • Quick hiring cycle – typically 5 days CONSULTANTS LEAVE “BIG 5” COMPANIES HIRE INTERIMS TO BECOME INTERIMS RATHER THAN “BIG 5” INCREASE IN NUMBER OF INTERIM CONSULTING ASSIGNMENTS MARKET FACTORS STRENGTHEN HISTORICAL PRECEDENT SUGGESTS BUSINESS CASE FOR INTERIMS RECESSIONS CHANGE WORKFORCES • Early management consultancies [McKinsey, Booz] arose from Great Depression • Substantial number of consultants have recently come into the Interim Market because of the Big 5 downsizing in the recession • Interim Line Management sprang up because of restrictive labour market of Holland in 1970s • Increase in supply of interim consultants relative to decrease in demand deflates day rates • Interim Consulting grew rapidly post-2001 as Big 5 shed excess staff hired for Y2K in .dot com collapse • Interim consultants not “cheap” but represent excellent value compared to “Big 5” • As consultants realise Big 5 always hire & fire in sync with economic boom & bust, interim consulting will seem increasingly attractive 3 Copyright B2E Resourcing, February 2009