2. Objectives To provide you with the information and tools to help you: Decide if Interim Management is the career choice for you Successfully develop a career as an Interim Manager
3. Agenda What am I looking for? What are interim managers? How does the Interim Management market work? What are the Critical Competencies of IM’s and how do I stack up against them? How do I find work? What do I need to consider in setting up my own business? Pulling it all together – what should I do next?
4. Personal Change 100% WHERE ARE YOU? WHY ARE YOU HERE? SATISFACTION WITH STATUS QUO No need Act DECISION CYCLE
5. What do I want? Spend five minutes individually answering the questions: What do I not want from my career? What do I want from my career? Consider such things as: The type of industry/company you want to work for The type of work you want to do Where you want to do it How much you want to do The rewards you want/need inc. money Any other ‘lifestyle’ considerations – family etc
7. My World ENVIRONMENTAL – POLITICAL, LEGAL, CULTURAL, ECONOMIC, TECHNOLOGICAL STAKEHOLDERS SUPPLIERS ME WHAT DO I WANT AND NOT WANT? WHAT ARE MY RAW MATERIALS – TIME, SKILLS, KNOWLEDGE, EXPERIENCE? HOW HAVE I APPLIED THEM – WHAT PROBLEMS HAVE I SOLVED? MARKETS AND CUSTOMERS ROUTES TO MARKET COMPETITION
8. My World ENVIRONMENTAL – POLITICAL, ECONOMIC, LEGAL, CULTURAL, TECHNOLOGICAL STAKEHOLDERS SUPPLIERS ME LTD CEO MARKETS AND CUSTOMERS ROUTES TO MARKET FD HRD S&MD R&DD COMPETITION
9. My World ENVIRONMENTAL – POLITICAL, ECONOMIC, LEGAL, CULTURAL, TECHNOLOGICAL STAKEHOLDERS SUPPLIERS ME LTD MARKETS AND CUSTOMERS ROUTES TO MARKET COMPETITION
10. Key Business Processes STRATEGIC PLANNING MANAGEMENT AND FINANCIAL REPORTING MANAGEMENT What to sell Who to sell to How to differentiate How much to sell SATISFIED CLIENT SUBMIT PROPOSALS ATTEND INTERVIEWS CONTRACT AND DELIVER DEVELOP MAINTAIN BUSINESS IDENTIFY OPPORTUNITIES QUALIFY OPPORTUNITIES PRIMARY Right skills, knowledge, attitude Focused & motivated Operational support PERFORMANCE MANAGEMENT PROCESSES PEOPLE DEVELOPMENT PROCESSES OPERATIONAL SUPPORT PROCESSES SUPPORT
11. The IM Market The Constituent Parts, their roles and how they fit together
12. Aims of the IMA The IMA principal aim is the development of Interim Management as a powerful and leading management resource, by collective action and by promoting the common interest of all its members, based on the highest standards of professional service.
13. Aims of the IMA-Institute The Institute is the professional body of the IMA representing individual Interim Managers. Individual membership assures the marketplace of the highest quality of service and professional standards of an Interim
14. Membership of the IMA-Institute Membership provides opportunities for targeted CPD, relevant news and information, and a range of other benefits, plus significant insurance discounts, including mandatory PI. Discount code IW10 for 10% discount Members can apply the logo and the letters M.I.M.A. on business cards and stationary
15. What is an IM? An executive or senior manager who works within an organisation at or near board level on a temporary or part-time basis
17. Competency Profile Research on competencies and aptitudes of a successful Interim Manager IMA / Saville Consulting completed “industry-first” academic research (Nov 08) Concurrent analysis concluded on 300 successful Interims (Interim; Job Profiler; Client; Provider questionnaires). Daily fees ranging from £600 to £5000
18. Competency Profile Behavioural determinants of IM success - 6 underlying competencies Quick Working Continuous Improvement Deadline Focus Action oriented Results oriented Accepting Change
19. Competency Profile Providers identified 6 further competencies that should underpin Interim behaviour : Upholding Standards Meeting Timescales Showing Composure Embracing Change Interacting with people Pursuing Goals
20. Q2 2010 Breakdown NO LONGER JUST A DISTRESS PURCHASE Base: 423 Assignments
21. Size of Market & Growth Billings through Intermediaries c£250m pa Total Market c£1bn pa in UK, €3500mn in Europe Via Intermediaries £250m IMA members = £158mn Consultancy Market measured in £10’s billions Total Market £3/4bn - £1bn
22. Performance Improvement CONSULTANTS INTERIM MANAGERS IN HOUSE TEAM ANALYSE DESIGN IMPLEMENT MAINTAIN Call consultancy Call service provider or IM Call consultancy or consultant Call service provider
23. Consultant, or Interim? Consultant Accountable to consultancy Advisor/facilitator Recommends Intervene as needed Interim Accountable to client Line responsibility/doer Designs and implements Full or part time intervention
24. Why do clients use IM’s? Flexible and versatile Available quickly No fixed overheads No/short learning curves – hit ground running Sensibly senior and ‘Over-qualified’ New ideas/best practice Highly motivated – hands on, results focused No pre-suppositions or ‘baggage’ TO GET RESULTS QUICKLY!!
25. How much are they paid? Depends on: Quality of fit State of the market Location Duration Benefit to the client
26. Which equates to …. Typical daily rates in the UK for an IM: £1500.00+ (CEO, MD, Functional Director of large multi-national) £1000.00+ (CEO, MD, Functional Director of medium/large multi-national) £800.00+ (General Manager, Divisional MD, Functional Head of medium sized national/international business) £650.00+ (General Manager, Functional Head of a small business) £500.00 +/- (Senior Manager) Typically a service provider will add a mark-up of 25-40% on these daily rates
27. Market Structure Associations IMA Institute PCG, IIM CBI IMA Clients Service Providers Interim Managers 25% Direct and Other Routes to Market 75% SUCCESSFUL INTERIMS GO DIRECT AND USE SERVICE PROVIDERS
28. The life of an IM Split into two groups and put yourself in the shoes of an interim manager: Group A - What points do you believe are in favour of the life? Group B – What points do you believe are the downside of the life? NB You may disagree!! 10 mins and then present back
29. Commitment Those who are successful Interim Managers have made the move as a career choice.
30. The Role and Needs of a Service Provider To successfully partner with clients and interim managers to deliver results by: Winning assignments Placing the most suitable candidate not to sell you Supporting the candidate and the client throughout the assignment This is a joint venture between all parties
31. To achieve this… Need to know you are committed to a career in interim management They need to be very responsive to clients and need you to be very responsive to them They need a straightforward, factual CV Want you to build relationships with them (this means you need to target and keep them updated)
32. Service Providers Interim Managers Submit CV’s Relationship Need for Speed Brief to proposal = 24-48 hours CV’s Selection Criteria Brief Service Provider’s IM Database Client Need Identified Service Provider Client Manager Identifies shortlist Business Meeting Gets references Proposal of Candidates Suitable Candidates
33. And in return They give you the opportunity of winning suitable assignments Negotiate the fees Offer support during assignment Agreed payment times vs. invoice chasing (varies amongst providers)
34. What makes a successful IM? Before and on assignment
35. What do people look for in an IM? Experience Senior level Track record of delivering results Knowledge ‘Functional’ Expertise ‘Situational’ Expertise Skills Analysis, assessment, prioritising Project/change management
36. For most permanent appointments Executives have their first 100 days to manage their transition and prepare for action . . . typically you have 5 days!
37. Quantitative Research Alium Partner’s annual market survey 3400 questionnaires sent out 650 completed, covering full cross-section of interim management roles and functions in both private and public sectors Additional questions around process of engagement
38. A Establish credibility Fact findingLearn about businessEngage key staff Build relationships Agree Objectives Clarifying the way ahead Identify quick wins Diagnose issues Root causes identified Scope issues Re-negotiate objectives C T I O N From Contract to Action
39. Key Qualities the capacity to learn and adapt insight, intuition and sharpness of judgement concern both for task and for people independence from politicking whilst being acutely politically aware toughness and resilience action orientation and restlessness …and the sheer pace at which they think and get things done
41. BUT Nothing fails like success!! How do you lead change successfully in different organisations? How do you strike the balance between: Showing your competence Not making dangerous assumptions
42. Improving Performance Business Environment People Management Effective Processes Lasting and sustainable Change Critical Business Issues/Opportunities Roles Relationships Objectives Management Focus Process Management & Improvement Redesigned process Measures Accountability Critical Process Issues Project Scoping Process Redesign Project Implementation Project Management Change Management Scoped Project Redesigned Process
43. Your Experience A potential client says to you: “I recognise you have had success in other organisations in this area but what can you tell me that will convince me that you can repeat the same success here as quickly as you say you can?”
45. Marketing The buying process Your target markets Your routes to market The Business Meeting Your collateral CV – Service Provider & Direct Brochure, Website, CD
46. Key Business Processes STRATEGIC PLANNING MANAGEMENT AND FINANCIAL REPORTING MANAGEMENT What to sell Who to sell to How to differentiate How much to sell SATISFIED CLIENT SUBMIT PROPOSALS ATTEND MEETINGS CONTRACT AND DELIVER DEVELOP MAINTAIN BUSINESS IDENTIFY OPPORTUNITIES QUALIFY OPPORTUNITIES PRIMARY Right skills, knowledge, attitude Focused & motivated Operational support PEOPLE DEVELOPMENT PROCESSES OPERATIONAL SUPPORT PROCESSES PERFORMANCE MANAGEMENT PROCESSES SUPPORT
47. CREATE DEMAND WHERE TO GO, WHO TO SEE, WHAT TO SAY QUALIFY PROPOSE CONTRACT IMPLEMENT DEVELOP EXIT
48. Buying Process Environmental change Business Issue/Opportunity Solution Options Solution Selection Project Definition Potential Supplier Identification Business Meetings Supplier Selection THE EARLIER YOU GET INVOLVED THE GREATER YOUR CHANCE OF INFLUENCING THE PROCESS AND WINNING THE ASSIGNMENT
49. PREFERENCE Recognises your unique ability to meet their needs and trusts you LIKING Feels an affinity or closeness with you KNOWLEDGE Starting to gain a real understanding into your uniqueness INTEREST Identifies a potential value in the relationship AWARENESS Aware of your existence Hierarchy of attraction
52. I need convincing They understand my problem I believe they could help me solve it They have credibility – they’ve have done it before They know and can overcome any objections I may have They minimise the risk for me
53. Market Segmentation Most of the time Service Providers and clients are looking for the perfect fit? Experience in the Job Role (function) in a similar sized company Experience in the sector Successful track record of results delivery in the ‘problem’ they face A mismatch in any of the above will (usually) reduce your chances of winning the assignment (especially point 3) certainly for your first few assignments
55. How else might you segment? Size of company Location of company Culture of company Stage of growth Ownership Common target markets/clients Situation, context (problem faced)?
56. Define Your Product RAW MATERIAL SKILLS KNOWLEDGE QUALITIES EXPERIENCE VALUE TO THE CLIENT APPLICATION WHAT PROBLEMS DO YOU SOLVE? WHICH HAVE YOU SOLVED REPEATABILITY WHAT PROCESS DO YOU USE? HOW DO I KNOW YOU CAN REPEAT IT?
57. Generic Value Proposition Many clients I speak to in the (target market) Face the issue of (what specifically) Based on my (key knowledge, experience, skills, qualities) I have the ability to (contribute what specifically) resulting in (type of business improvement, with examples) for (target market) like yourself
58. Your Product Build your Value Propositions – 30 mins Identify the problems you have solved Clarify why it was about you uniquely that led to you being able to solve them (skills, knowledge, experience, qualities) Quantify what the business benefits were Identify the type of clients who you believe probably face this problem Discuss with a partner
59. Example Based on my knowledge and experience of relocating (electrical component) manufacturing facilities from the (UK) to China, I am able to dramatically reduce the time, costs and disruption of doing so and help companies adopting this strategy to rapidly deliver significant business benefits.
61. Going Direct Going direct you may need to sell the concept of ‘Interim’ Research the organisation The issues they are likely to face Identify who you need to speak to Follow the ‘duck shoot’ Include a call to action – what you want Enlist the help of the gatekeeper
62. Routes to Market YOU YOUR PRODUCT YOUR MARKET SEGMENTS WHAT ARE YOUR POTENTIAL ROUTES TO MARKET? YOUR COMPETITION GOING ‘DIRECT’, YOU WILL NEED TO SELL THE CONCEPT OF AN INTERIM
63. Routes to Market YOUR ROUTES TO MARKET SERVICE PROVIDERS CONSULTANCIES TRADE EXPOSURE PAST EMPLOYERS CONFERENCES WEB EG LINKED IN TRADE SHOWS CHAMBER OF COMMERCE BANKS ACCOUNTANTS EXECUTIVE SEARCH CO’S ALUMNI VC COMPANIES JOB ADVERTS PERSONAL NETWORK NETWORKING EVENTS YOU AND YOUR PRODUCT YOUR TARGET MARKET SEG ENTS
64. Networking A key element of your marketing strategy whether direct or through service providers
65. Networking Over coffee Select 2/3 people you have not interacted much with so far Interact with them!! (4 mins max) Be prepared to report back on the experience!!!
66. How was it for you? What worked and what didn’t? Were you clear about what they were all about? Were they interested in what you were all about? Did you swap business cards? Did you identify opportunities to help each other? Would you see them again?
68. Business Cards Company Name Logo Address Content Quality Paper Printing Using the reverse?
69. Your CV Your CV needs to demonstrate: Your competence – what you can do Your credibility – proof you can do it Your compatibility – how you could work with them It should clearly show: Where you worked and at what level with a coherent role progression WHAT YOU ACHIEVED WITH NUMBERS WHERE POSSIBLE Service Providers Do not want fancy formatting, pictures, tables Need you to keep it updated Are wary of ‘vague’ competencies, cliches – be as specific as possible Use search engines so use common key words and phrases of your discipline Your CV should be tailored for each potential service provider No more than two/three pages (check with Service Provider)
70.
71. PROFESSIONAL BODIES/ QUALIFICATIONSPERSONAL DETAILS CONTACT DETAILS – IF NOT WORKING WITH A SERVICE PROVIDER
73. Objectives Qualify the opportunity Can I do it? Do I want to do it? Can they afford it? When will they need me? Win it!!
74. Preparation Be prepared to attend at very short notice Research more deeply and make no assumptions Do all you can to get a brief prior to meeting Think about potential objections and how you would answer them Sell yourself but still meet the client’s objectives Focus on the most relevant pieces of your experience
75. At the Meeting Ask questions Help the client diagnose the issue and gain clarity about what they really need Give Information Clearly communicate how you could help Clearly communicate your track record of delivery Confirm Scope, reporting, support, contracts, terms Handle Objections Listen carefully and handle any objections the client may raise
76. After the meeting Following the business meeting you are in a position to develop a proposal or summary of agreement As a result of my (service/product) You will be able to (do what specifically) Resulting in (quantified business improvements) For (total investment costs) With economic payback achieved within (timeframe) We will document our delivered value by (results tracking system)
77. Handling Objections Objections are only to be feared if you can’t answer them Objections do not necessarily mean the person does not want to move ahead with you Objections expressed openly help you sell
78. Handling Objections – Part 1 In your tables – 5 mins: Table 1 and 2 – what are the potential upsides for a client considering interim management Tables 3 and 4 – what are the potential downsides for a client considering interim management
79. Handling Objections - Part 2 Practice – 10 mins Take it in turns to give the ‘opposition’ an objection Enact the ‘role play’
80. Trading through a Limited Company Graham Shove Competex Ltd Specialist Accountants
81. Trading Formats Self Employed Limited Company Revenue and Customs approach
82. What is your status? Not on client payroll Client’s expectations Not on agency payroll Agency requirements
83. Why do I need a Limited Company? Agency avoids employment agency regulations including PAYE
84. Why do I need a Limited Company? Agency avoids employment agency regulations including PAYE Client avoids legal burden of employing a permanent member of staff minimum wage, SSP, maternity, redundancy, etc
85. Why do I need a Limited Company? Agency avoids employment agency regulations including PAYE Client avoids legal burden of employing a permanent member of staff minimum wage, SSP, maternity, redundancy, etc Client has no hidden employment costs pensions, holiday pay etc
86. Why do I need a Limited Company? Agency avoids employment agency regulations including PAYE Client avoids legal burden of employing a permanent member of staff minimum wage, SSP, maternity, redundancy, etc Client has no hidden employment costs pensions, holiday pay etc Being employed by your own company is proof that you are not employed by your client or the agency
87. Company officers etc The shareholders own the company and share any profits The directors operate the company and carry full legal liability for their actions The company secretary is a servant of the company responsible for statutory matters The employees work for the company in return for a salary
88. Every company must have At least one shareholder At least one director A registered office A (registered) accounting year end All this information is available to the public via Companies House A Company Secretary is no longer required (but most people still prefer to have one)
89. Company documents Memorandum & Articles of Association Certificate of Incorporation Share certificates Statutory books
90. Share Capital Authorised share capital Say, £1,000 Issued share capital Say, £100
91. Initial tasks Open company bank account Register for VAT Register for PAYE Register for Corporation tax Change of year end (optional)
92. Banking decisions Branch banking or direct (internet) banking Which bank
93. Bank opening procedure Lengthy documentation Incorporation documents Proof of identity for officers Corporate and personal vetting Personal interview RBS Business Banking Direct (0800 783 9777)
94. VAT – Why register? Mandatory if annual income exceeds £70,000 Voluntary registration under £70,000 enables VAT to be reclaimed Very little accounting work involved Looks professional
95. VAT registration requirements Registration involves completing a 10 page document or can be done online and takes up to 6/7 weeks to be processed Company must have been incorporated Company bank account number and sort code must have been issued You must have started or be imminently about to start your first assignment
97. Statutory requirements for Letter Headings Name of company Place of registration (i.e. England and Wales) Company number Address of registered office Names of all the directors (or none of them)
98. Optional components ofLetter Headings Address of principal place of business (if different from registered office) Telephone & fax numbers E-mail & web site addresses VAT number (so that letterheads can be used for invoicing)
99. Statutory requirements for E Mails and Websites Name of company Place of registration (i.e. England and Wales) Company number Address of registered office And in addition: Website must show VAT No.
100. Keeping accounts Keep all receipts and invoices from now on. A shoe box is ideal Pay for all expenses initially out of your own personal resources Summarise your expenses regularly and conscientiously at the end of each month, extracting details from:- Personal bank account(s) Personal credit cards Cash transactions
101. Keeping accountsThe difficult way Opening several company bank accounts Using (a variety of) company credit cards Using company money to pay private expenses
102. Keeping accountsThe office diary Use your office diary to record the following:- Time spent on client business and details of events etc The nature of the work that you are doing Travel Detailed car mileage Cash transactions
103. Countering avoidance IR35 Introduced to stop directors paying themselves mainly dividends and little salary to avoid paying National Insurance
104. IR35 The rules If your work falls under IR35, then 95% of the fees and expenses you earn (less certain expenses of employment) have to be paid as salary to you, the person who has earned those fees
105. The Interim Manager under IR35 You are working under IR35 if you are: doing work that an employee would do standing in for a director/manager Replacing an employee
106. The Interim Manager outside IR35 You are working outside of IR35 if: Your assignment is project based OR You are giving advice to client and client’s staff carry out your recommendations
107. IR35 - Neither one nor the other Different streams of income Take legal advice rather than consulting Revenue & Customs High Street lawyers
108. Dividends v. salary Market Salary Transfer of taxable income from high taxpayer to a low taxpayer by the use of dividends Income shifting Separate bank accounts
109. Calculation of daily rate You must factor in the following: You will work less days in the year Out of your fee income you will have to pay for: Employers NI @ 12.8% Pension contributions Private health insurance Car Office equipment Professional indemnity insurance Accountant’s fees
111. What will it cost? You should not have to pay more than £1,500 pa One-off set up fee Fees paid out of pre-tax fee income
112. The specialist accountant Incorporates company electronically Provides Company Secretary and registered office Offers streamlined banking arrangements Registers company with all Government authorities Runs variable payroll and fulfils statutory obligations Offers affordable fixed fee structure Help from people who understand your business
113. www.competex.co.uk “the largest single source of information on the internet for interims and consultants” Check out banks, insurance products, agencies Associations and links Writing your CV Building and using a network News, views, events Pensions and healthcare Dedicated client’s section ….and much more!
124. www.competex.co.uk “the largest single source of information on the internet for interims and consultants” Check out banks, insurance products, agencies Associations and links Writing your CV Building and using a network News, views, events Pensions and healthcare Dedicated client’s section ….and much more!
126. Summary Be clear about what you want and don’t want You are a limited company offering business services, not someone looking for a job Most first assignments are won direct, but don’t ignore service providers – network, network, network Segment your market. You’ll have a much better chance of creating awareness and interest if you target Focus on the client’s world (existing or potential issues and opportunities) in your marketing and selling – if they have none, there’ll be no work anyway!! Prepare for objections – you know what they will be – ARC Getting up to speed quickly is the key to delivery Set up a limited company asap if you’re going ahead
