Supply Chain Blog

At Enchange, we have provided many supply chain interim managers for clients over the years. I was discussing our supply chain interim management services with a client recently and she asked whether she should be hiring interim managers or consultants.

 

We had a long chat and it turned out that interim managers were the right solution for her requirement.  The main reason in this case was that she insisted in retaining total control of the project and the key need was for expert resource to deliver a number of work stream projects.

So, for anyone else facing a similar dilemma here are seven key differences between interim management and consultancy:

1. Notice  Interim managers are often placed at short notice.  Consultancy contracts usually take several months to agree and commence.
2. Terms of reference  Interim management assignments nearly always commence with ‘implementation-driven’ terms of reference.  Consultancy contracts nearly always involve a process of analysis and usually include design work.  For an interim management contract, the analysis has usually been undertaken by the client.
3. Project work  For project work, consultancy projects provide expertise not available in the company.  Interim management projects could normally be carried out by client personnel but resource is usually a constraint.
4. Executive power  Interim managers are often called upon to demonstrate strong leadership from the outset of an assignment and can have a large degree of executive power.  Tough people decisions are sometimes made quickly.  It is unusual for a consultant to exercise executive authority.
5. Client relationship  Typically interim managers become part of the client team quickly and identify totally with the needs of the client company.  Consultants, while always working closely with clients, often maintain an ‘arms-length’ relationship with client staff and identify totally with project deliverables.
6. Contract duration  Interim management contracts are typically of longer duration than consultancy contracts.  However, the maximum duration for any assignment should not exceed 18-24 months.
7. Fee rates are typically lower for interim management contracts.  At Enchange our rates for top quality interim supply chain managers certainly are lower.

 

I have been talking to a number of supply chain executives during the last few weeks and something of a theme has emerged.
The theme is the immediate need for highly skilled supply chain resource, available at short notice, with the flexibility to switch off the resource at wil..….and at fee rates comparable to existing resource. “So nothing unreasonable there”, I thought.

What we actually discussed was supply chain interim management and how the placing of a specific skilled resource can have a dramatic postive impact on an organisation. We went on to discuss the typical roles that supply chain executives are currently demanding.  

With this and our recent experience with clients, I offer the following top 10 supply chain interim management roles:

1. Resource gap. Bridging a gap prior to a full time appointment being made.  This was mentioned by everyone – “we need a planning manager …. now”.
2. Backfill. To temporarily backfill a position because the incumbent manager is about to be seconded to a project or may be emabrking on maternity leave. “We have a large project that has started (ERP projects were mentioned a number of times) & we need an interim Head of Supply Chain”.
3. Project Managing a specific project that would normally be carried out by company personnel but experienced resource is a constraint.  This is a common need and mentioned frequently.
4. Temporary or part-time operational assignments the need for which will end, do not justify a full time employee or are designed to coach and train a new manager. 
5. Holding the fort in a situation where company strategy is not decided and operational roles are unclear while the business must keep going forwards.
6. Crisis. Managing a crisis when a unexpected event occurs, e.g. dismissal, death or unexpected departure.
7. Post-acquisition or merger management prior to establishment of the full management team.
8. Pre-sale management of a company or business unit in preparation for a sale.
9. Urgent change management of strategy, cost, structure, organisation, process etc., when an external threat is recognised. e.g. sudden loss of market share, competitive move, unsustainable debt position, hostile take-over bid, etc.
10. Turnaround management or ‘company doctor’ when a permanent position is inappropriate or the role may be perceived as too risky to attract a permanent candidate.

My discussions were with a relatively small number of people so I would welcome any further comments or indeed, requests for assistance.

 

I know you are busy. Not enough hours in the day. Deadlines rapidly approaching. Your children call you Uncle Dad or Auntie Mum. Before the stress takes its inevitable toll think about relieving the pressure without adding to head count.

Why s Interim Management an opportunity at present? Mainly as a result of the continuing economic conditions numerous companies have folded this year and a similar number have been taken over or merged with others. Obviously companies that fold are too late to be helped although I am not sure too many actually sought the right professional help and guidance in good time.

Those companies and Private Equity players merging or buying in this period need to have their new businesses in good shape to ensure the ROI in the contract deal has even a chance of coming to fruition. When the green shoots of recovery actually start looking like shrubs, shareholders and PE owners will rightly expect their pound of flesh.

One route to accelerating and establishing integration and realignment is to use the services of an Interim Manager. Hear are 7 reasons why hiring an Interim Manager (IM) can be of benefit.

1. Return On Investment. No, it is not more expensive than hiring full time (FTE) or temporary employees. Take all recruitment and employment costs into account and you will appreciate the efficiency of IM. You may pay your employees for turning up for work whereas IM can be remunerated against set objectives and delivery. (Consider the cost if you make the wrong choice of FTE and have to go through a lengthy, disruptive and expensive exit process!)
2. Speed. Senior Interim Managers are readily available for Supply Chain tasks. You do not have to waste time going through a lengthy search and selection process with a fee-taking headhunter.
3. Expertise. Interim Managers are usually seasoned professionals with deep operational experience. A vast majority will have successfully held senior roles in blue-chip organisations for long periods.  No training is required; you get a “vertical start-up”.
4. Objectivity. Interim Managers are able to look at a given situation with a fresh set of eyes and will not be afraid of “treading on toes” or telling the boss there is a better way!
5. Accountability. Interim Managers are not there to advise. They are in place to handle a specific project or a department in transition. Unlike full time employees they are very comfortable at being rewarded (or not) based on black and white objective achievement.
6. Effectiveness. Possibly the most obvious contribution of IM. Once the Board has given a mandate to carry out a task, the IM will get on and do it without struggling through a bout of inertia. “Just Do It” sums this up nicely. 
7. Commitment. Interim Managers remuneration means they have a direct financial stake in the assignment. They are not there to make friends or pave the way for recruitment. They wish to do the job well, get paid and move onto the next challenge.

If you have a difficult job to be done within a defined timetable and you do not currently have the resources in-house you should consider the value an Interim Manager can bring both to yourself and your organisation. Gaze into the future and see what tough jobs need to be done well now to ensure you are ahead of the game.

 

Image credit : CELALTEBER