Interim-Management Report Europe

EUROPESURVEY REPORT 2014

THE EUROPEAN INTERIM REPORT

Contents

Page

Introduction 1

Research Objectives and Methodology 2

Defining Interim Management 2

Current Trends 3

Interim Manager Profile 6

Interim Management Billing Rates 9

Sourcing Interim Management Assignments 11

Type of Agency 12

Drivers of Interim Management Engagement 13

Most Important Qualities in an Interim Manager 16

Client Data 17

Interim Managers Look Ahead 18

Conclusion 19

1

Executives Online has operated as a European interim management provider since 2000, beginningin the UK and since 2005 through a growing network of European operations. Years ago, littleaccurate data existed about the shape and features of the interim management sector, nor interimmanagers themselves. And so, we gathered our own, publishing the Sambrook Report on UK InterimManagement in 2000. We followed that with bi-annual surveys and reports describing thedemographics, pricing, motivations and methods of interim management engagement, and reportingtrends in these and other key figures. The 2014 European Interim Report is the latest edition of thiskey publication. In the course of our research, we heard from more than 1,600 interim managers, towhom we are grateful for sharing their thoughts and perspectives via a detailed online survey.

In the intervening years, the landscape and context for interim management have changed remarkably.The earliest interim management providers and their placements revolved around the “little black book”of contacts built on the connections of one (usually) grey-haired founder. The new millennium, bycontrast, has seen the rise of social media as an important channel connecting talent and employers,and the commoditisation of traditional media like newspaper appointments adverts and even jobboards. Clients’ procurement departments and large volume recruiters have tried to influence thechoice and use of interim managers and interim providers. The global financial and economic crisishas rattled and challenged companies, causing them to defer investments and trim costs. Skills gapsemerge as a barrier to organisations capitalising on these trends.

We are pleased to share this report with you and hope that it will address questions you might have,regardless of your perspective: as an interim manager yourself, or as a business leader in a companyconsidering engaging an interim manager. Contact us to discuss how an interim manager can bringskills, capacity, perspective – and most importantly, results – to your organisation.

Introduction

Research Objectives and Methodology

2

Objectives

Our research aimed to answer a variety of questions aboutinterim management:

• What is the typical profile of an interim manager in termsof gender, age, background, experience, and how theysource assignments?

• Did the global recession have any effects on interimmanagement, and if so, what?

• What qualities are most important in an interim manager?

• What needs drive companies to seek interimmanagement solutions?

• What types of companies engage interim managers?

• How often do interim managers work as part of a team,and what type of work necessitates a team of interim managers?

• How important are interim management providers andother recruitment agencies in connecting clients andinterim practitioners?

• What variations are evident among these measuresfrom one European country to another?

Defining Interim Management

For the purposes of this report we define interim managementas being: the provision of a mature, professional manager, wellqualified by relevant skills, practical experience and attitude,either to deliver a specific business result within a limited timeperiod, or to fill a gap in permanent staffing.

Survey Methodology and Timings

Our survey was conducted beginning in November 2013 andcontinuing through January 2014 via an online questionnairecompleted by 1,687 Europe-based interim managers. Interimmanagers from Austria, Belgium, Bulgaria, Croatia, Cyprus, theCzech Republic, Denmark, Estonia, Finland, France, Germany,Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania,Luxembourg, Malta, Norway, Poland, Portugal, Romania,Slovakia, Slovenia, Spain, Sweden, Switzerland, TheNetherlands and Turkey participated in the survey. In someEuropean countries – Belgium, France, Germany, Ireland, Italyand The Netherlands – sufficient response was received bycountry to allow reporting of many figures at the country level.We include data from our UK survey for comparison in thesebreakout figures.

In this report, percentages may not add to 100% due to rounding.

Interim Manager Current Work Status by Country

44% 24% 34% 31% 22% 28% 37%

13% 19% 22% 25% 21% 26% 15%

11% 9% 7% 10% 15% 16% 9%

31% 48% 37% 34% 42% 30% 39%

Employment Status

At the time of this survey, nearly a third of European interimmanagers were working in full-time assignments. Another 12% wereworking full-time via a combination of part-time assignments. Anotherfifth was engaged part-time. Almost 40% were not on assignment.These figures are virtually unchanged from 2011, remaining

3

Current Trends

Not on assignment – 48%Full-time assignment – 27%Part-time assignment – 19%Full-time, on combination of part-time assignments – 6%

48%

27%

19%

6%

Current Status

considerably stronger than in 2009 when overall utilisation was lowerwith 48% of interim managers – almost half – not on assignment.Part-time assignments continue to play a role in interim executives’portfolios of work, with almost one-third of the interim managerssurveyed engaged in one or more part-time engagements.

Working in full-time assignment

Working in part-time assignment

Working full-time, but as combination ofmultiple part-time assignments (portfolio)

Not on assignment

Belgium France Germany Ireland ItalyThe

NetherlandsUnitedKingdom

By country, overall utilisation is similar with circa 60% of interimmanagers surveyed engaged in work. Interim managers inFrance are less utilised than their European colleagues; interimmanagers in Belgium and The Netherlands are slightly betterutilised. Compared to 2011, virtually every country has seen an

improvement in the percentage of its interim managers who areengaged in full-time assignments. The exception is Italy, inwhich full-time interim roles have lost ground to part-time andportfolio assignments, and downtime.

2009


39%

29%

20%

12%

Current Status

2014


39%

29%

19%

13%

Current Status

2011

We asked our interim managers to describe how busy they feelnow compared to a year ago. Their answers echo the findingsabout utilisation: a stronger arc of recovery was observedbetween 2009 and 2011, whereas at the end of 2013 theimprovement is maintained rather than continuing to accelerate.

Less busy than a year ago – 49%

About as busy as a year ago – 30%

More busy than a year ago – 21%

21%

30%

49%

In terms of demand for yourservices, are you finding yourself:

2009




29%

34%

37%


2011




23%

35%

42%


2014

4

Length of Last Assignment

16%19%

14%

19%

30

25

20

15

10

5

00 – 3months

3 – 6months

6 – 9months

9 – 12months

Percentage

13%

12 – 18months

37% 19%

18months+

Length of Last Assignment by Country

Length of Assignment

5

Belgium France Germany Ireland Italy

In individual European countries the distribution of assignmentlengths is slightly different. Compared to the European average,Belgian and Italian interim managers secure assignments whichare longer by a full month. In the UK and Ireland, assignments areshorter than the European average by almost two months. Thesecountry averages are composed of a range of assignments that,in different countries, show different patterns. In the UK,Netherlands and Italy, the distribution is quite even, whereasGermany and Belgium have fewer very short assignments.

Very short-term assignments are prevalent in Ireland, with 29% ofall assignments running less than 3 months. Anecdotal reportsfrom Executives Online recruiters are that assignments forbusiness transformational reasons tend to be longer thanassignments for gap-filling reasons. The survey data bear this out:Assignments where the main reason was change management,crisis management, project team strengthening or similar reasonswere on average longer than interim assignments to fill a suddengap due to illness, maternity or other reasons by more than 18%.

Interim management assignments can run the gamut fromshort-term projects of a few months to longer-term initiativesspanning years. What we see in our most recent research isthat length of assignment is remarkably stable versus 2011.

The average assignment has lengthened only slightly, to 9.5months at the end of 2013 versus 9.3 in 2011. The distributionof assignments is also very similar.

10% 23% 8% 29% 15% 18% 19%

13% 21% 27% 25% 16% 21% 24%

16% 15% 18% 15% 11% 18% 21%

20% 16% 21% 12% 21% 16% 15%

20% 9% 11% 11% 14% 14%22%

22% 16% 15% 8% 23% 13%

10.9 8.3 9.2 7.1 10.1 8.7 7.6

0 – 3 months

3 – 6 months

6 – 9 months

9 – 12 months

12 – 18 months

18+ months

Average (in months)

TheNetherlands

UnitedKingdom

Age

50–5940%

40–4941%

20–29 1% 60-69 5%70+ 0.4%

30–3913%

2009

Age

50–5939%

40–4939%

20–29 1% 70+ 0.2%

30–3910%

2011

Age

50–5946%

40–4931%

20–29 0.5% 60-69 5%70+ 0.5%

30–396%

2014

60–6910%

Female10%

Male 90%

6

Interim Manager Profile

Gender

The interim management field draws a disproportionatenumber of men, with 90% of our Western European surveyrespondents being male. Belgium, The Netherlands and Italyshow participation of women in interim management at levelsvery near the European average. Elsewhere, the proportion ofwomen among interim managers varies: in France it is 16%; inGermany, 7%; in Ireland, 13%.

Age

Interim managers tend to be seasoned executives, with morethan 60% respondents aged 50 or more, and an average age of52. Of the survey respondents, 46% of respondents fell into the40-49 range, and just 7% were under the age of 40. Thesefigures show an ageing of the interim management talent pooltowards older and more deeply experienced interim managers,a trend that continues from 2009. The figures on utilisation showthat the recovery observed in 2011 has held: companies are

using interims in similar levels to two years ago. The profile of theaverage interim manager, however, is affected by new joiners,and the decision to become an interim manager – a risky butrewarding career move – appears to be lagging the recovery.Continued perceptions about the uncertain economic climatemay be deterring younger managers and executives fromleaving the security of employment to commence a career ininterim management.

Gender of Interim Managers – Western European Average

7

Years of Experience

The typical interim manager’s career pathinvolves a successful career in industry –showing progression, accomplishment andmeasurable results – and at some point,the decision to turn independent as aninterim manager. Successful trading as aninterim manager draws on the skills,experience and perspective gained incorporate life but also adds newchallenges: for example, the ability to comeup to speed very quickly in a new situation,an increased focus on early tangibleresults, the ability to influence others in theorganisation but often without a traditionalreporting or team structure. Perhaps mostimportantly, an interim manager must beable to sell him/herself into newassignments over and over again,identifying opportunities and persuadingthe client to engage them in a months-longassignment at an appropriate daily rate.There is debate within the industry aboutthe importance of tenure as an interim vs.relevant skills for the role at hand inpredicting success in an assignment.

The average respondent in our survey ofinterim managers had 6.4 years ofexperience as an interim manager, inaddition to their prior corporate career.Tenure has lengthened since 2009 whenthe average European interim managerhad been practicing for 5.6 years.Continuing a trend from 2009, we see thatfewer interim managers are new to thecareer. In this research, 32% ofrespondents had less than 2 years’experience, compared to 38% in 2011 and39% in 2009. We believe the lower share ofless experienced interim managers is dueto the recent and ongoing economicuncertainty, which may make it lessattractive to risk starting an independentcareer, and in which the more experiencedinterim managers are the ones remainingsuccessful at finding and executingengagements.

Years No. of Experience Respondents

20+ 3115–19 2710-14 695-9 1663-4 1421-2 261Less than 1 12

23%

20%

37%

2%

Years Experience

10%

4%4%


20+ 3815–19 4910-14 1245-9 1953-4 1661-2 288Less than 1 66

21%

18%

31%

7%

Years Experience

13%

5%4%

2009

2011


20+ 8415–19 8110-14 2205-9 3693-4 2851-2 402Less than 1 7024%

19%

27%

5%

Years Experience

15%

5%6%

2014

Yes, I could be interested if it was the rightopportunity – 80%

No, I am 100% committed to interimmanagement – 20%

Permanent Job?

8

Interest in Permanent Employment

Just 20% of interim managers say they are utterly committed tothe field of interim management and will choose to continue inthat realm. The remaining 80% could be interested in permanentemployment if the right opportunity presented itself.Commitment to interim management has risen slightly since2009 when 84% of those surveyed were open to permanentemployment, for the right opportunity.

Interim managers are motivated in their career choice by manydifferent factors, and these no doubt affect their viewpoint on anemployed role. Some see interim management as a way to gainexperience and visibility which can lead to a permanent role;others deliver interim assignments out of financial necessitywhile searching for a permanent role. Many of thesepractitioners do rejoin corporate life, but this path can producea committed interim too. Many interim managers who begin ininterim management like this discover to their delight that theyenjoy and excel in it more than corporate life. At the other end ofthe spectrum are interim managers who already have amassedsignificant experience in delivering complex businesstransformation projects. Their having acquired the functionalcompetence, project management skills, and “soft skills”required to be successful means they are likelier to remain aninterim than their colleagues just starting out.

Commitment to interim management is generally higher in

countries with a longer history of interim management as a way

of engaging in executive work, such as Belgium and the United

Kingdom. Commitment to interim management is also stronger

in countries with the strongest domestic economies, such as

Germany, Belgium and the UK.

Attitude Towards Permanent Employment by Country

Belgium France Germany Ireland Italy

68% 82% 79% 84% 83% 83% 62%

32% 18% 21% 16% 17% 17% 38%

Yes, I could be interested if itwas the right opportunity

No, I am 100% committed tointerim management

TheNetherlands

UnitedKingdom

80%

20%

Interim Management Billing Rates

9

Changes in Billing Rate

Daily rates continue to be quite stable across Europe. In 2014 and in 2011, more than 60% ofrespondents indicated they were billing about the same in the current year as the year before.Some were able to raise their rates: 12% in 2014 and 14% in 2011. About one quarter are billingless, but this compares favourably to 2009 when more than 40% of respondent had had to lowertheir rates in order to secure assignments during the worst of the recession. The average Europeaninterim manager in our study earns €749 per day, which is virtually unchanged from 2011’s €756.

More – 14%About the same – 62%Less – 24%

62%

14%

Change in Daily Rate?

24%

2011

15%

9%

12%

11%

10%

11%

8%

10%

4%

4%

6%

Under €400

€400-€499

€500-599

€600-699

€700-799

€800-899

€900-999

€1,000-1,099

€1,100-1,199

€1.200-1,299

€1,300+

%

Distribution of Day Rates


43%

15%


42%

2009


61%

12%


26%

2014

10

Billing Rate Differential by Countryand Functional Area

Day rates vary by country, with the more maturemarkets for interim management (Belgium, TheNetherlands, the UK) showing stronger daily rates,as well as Germany whose economic strength hasendured the recession better than elsewhere. Anexception to this is France, a relatively newer marketfor interim management, and which neverthelessshows a very strong daily rate, but this may beinflated by the very high social insurance rates which must be applied to French interimmanagement contracts.

Some variation in daily rate is evident by role orfunctional area, with European interim ManagingDirectors earning the highest daily rates, followed byCommercial Directors and General Managers.(Many more roles and functions are represented inour study, however insufficient responses werereceived in each to provide a significant enoughdata set.)

Belgium €806

France €859

Germany €927

Ireland €710

Italy €600

The Netherlands €891

United Kingdom €760

Country Average Billing Rate

Top Board/Executive Management (i.e. CEO, Managing Director, €870Managing Partner, General Manager

Finance €696

Human Resources (HR) €736

Information Technology(IT, including IT Project Management) €762

Marketing €761

Operations (Manufacturing but also Services) €674

Project Management (non-IT) €713

Sales / Business Development €644

Supply Chain / Retail Management €693

Functional Area Average Billing Rate

* The average UK interim manager earns £637 per day, converted to Euros at November 2013 exchange rates equals €760

*

11

Sourcing Interim Management Assignments

Over seventy percent of the interimmanagers surveyed had sourced theirmost recent project on their own, with justover a quarter having made use of interimor recruitment agencies. Compared to2009, when agencies delivered 23% ofassignments, the agency share of themarket has grown. This may be reflectiveof the increasing maturity of interimmanagement as a recruitment specialtyand way of working in numerous European markets.

Via an interim or recruitmentagency – 29%

Generated the opportunitymyself – 71%

29%

Source of Last Assignment

71%

Source of Last Assignment

Self

Agency

Self

Self

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Percentage of Respondents

Agency Agency

Self

Agency

Self

Self

Agency Agency

Belgium France Germany Ireland Italy TheNetherlands

Self

Agency

UnitedKingdom

Northern European countries generally appear to have a moreactive interim management provider industry, with agenciessupplying larger shares of assignments than elsewhere. This isno doubt due to the longer timeframe over which interimmanagement has been developing as a way of working and aviable career choice. Compared to 2011, France’s provider

industry appears to have matured, delivering 39% ofassignments, compared to only 28% in 2011. Italy and Irelandremain as markets in which interim managers are largely relianton their own networking and selling to deliver assignments,with agencies providing only 16% of Italian assignments and21% of Irish assignments.

12

Within the agency sector, interimmanagement specialist providers havethe dominant share. Among interimmanagers who in the past two yearssourced interim work through an agencyor recruitment business of some type,recruitment practices specifically focusedon interim management have a 66%market share. Large managementrecruiters have a nearly 21% share, withvolume recruitment businesses andprofessional services firms dividing upthe remaining 14% of the market.

Social media is playing an increasing rolein connecting interim managers withwork. Fully 46% of interim managers wesurveyed had sourced an assignment viaa client who reached out to them overLinkedIn, Xing or another social orbusiness networking site, up stronglyfrom 28% in 2011.

11%

Type of Agency

31%

12%

21%

Type of Agency

2%

24%

Interim management agency -specialist on the type of roleneeded – 24%

Interim management agency -generalist (able to place alltypes of interim roles) – 31%

Large management recruiter – 21%

Interim management practice,part of firm with other executiverecruitment services – 11%

Professional services firm(example Big 4, otheraccountancy firms, etc.) – 12%

Large Recruitment ProcessOutsourcing firm (examplesAlexander Mann, Capita) – 2%

13

Drivers of Interim Management Engagement

A range of organisational gaps or imperatives can drive theneed for an interim manager within a company. Wheninterim managers were asked to specify the “primarydriver” for their client’s hiring them for their most recentassignment, the two most common reasons were changemanagement (32%) and crisis management (15%). Other

factors driving more than 10% of assignments were skillsgaps (15%) and the need to implement a major initiative(13%). The most traditional or “obvious” reason forengaging interim managers – a temporary absence, orslow permanent recruitment – were not so important as themain reason for the engagement.

Primary drivers of clients’ engagement of interim managersare quite similar by country. Change management is theleading reason clients engage interim managers in everycountry, accounting for between 24% and 44% of

assignments. In Belgium, Germany and Italy, crisismanagement is the second most important driver of interimassignments. Skills shortages drive strong shares ofassignments in France, Germany and the UK.

Change management: to lead a major improvement/transformation project – 32%

Crisis management: to address urgent and major issues/turnaround – 15%

Implementing a major initiative (product launch, relocation) – 13%

Temporary "skill/competence" shortage – 15%

Temporary management "capacity" shortage – 8%

Strengthening a project team – 8%

Bridging time needed to hire someone permanently – 5%

Bridging time needed to fill a temporary absence (illness, secondment) – 4%

Client was required by its Bank or Tax/Government authority to engage an interim executive or board – 1%

4%

1%

32%

8%

15%

Main Reason for Engagement

5%

13%

8%

15%

Reasons for Engagement by Country

Belgium France Germany Ireland ItalyThe

Netherlands

Change management: to lead a majorimprovement/transformation project

Crisis management: to address urgent and majorissues/turnaround

Implementing a major initiative (product launch,relocation)

Temporary "skill/competence" shortage

Temporary management "capacity" shortage

Strengthening a project team

Bridging time needed to hire someonepermanently

Bridging time needed to fill a temporary absence(illness, secondment)

UnitedKingdom

32% 31% 24% 29% 33% 44% 16%

18% 14% 19% 10% 14% 10% 8%

13% 13% 9% 16% 13% 13% 11%

13% 16% 17% 9% 14% 14% 35%

5% 9% 7% 13% 10% 6% 8%

4% 6% 7% 10% 11% 4% 2%

7% 6% 10% 9% 3% 5% 9%

7% 5% 7% 3% 1% 3% 10%

14

Asked about “all factors involved” in driving their last interimmanagement engagement, responses were consistent with the“primary driver” answers, with change management,implementing a major initiative, crisis management and skills and

capacity gaps being the most important instigators for engagingan interim manager. These responses show a similar pattern toour prior research two years ago. Again, sudden temporaryabsences were factors in only a small portion of assignments.

Looking at what types of roles European interim managers takeon, whether general management, functional management,programme or project management, or subject matter expert,the share of each in the market is almost equal, with executivemanagement roles (general or functional) leading project roles.Aligning with the reasons clients engage interim managers,where skill/competence shortages were somewhat importantreasons, we see interim managers engaged to assume roleswhere they impart a specialist area of knowledge or skillcomprising 27% of assignments.

74822%

52415%

44013%

52716%

Changemanagement: to lead a majorimprovement/transformation

project

Implementinga majorinitiative(productlaunch,

relocation)

Crisismanagement:to addressurgent andmajor issues/turnaround

Temporary "skill/

competence"shortage

All Reasons for Engagement

42913%

Temporarymanagement"capacity"shortage

1926%

Bridging timeneeded to hiresomeone

permanently

20%100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Type of Role

90 3%

Bridging timeneeded to filla temporaryabsence(illness,

secondment)

36 1% Client was

required by itsBank or

Tax/Governmentauthority toengage an

interim executiveor board

40912%

Strengtheninga project team

27%

26%

27%

Programme or ProjectManagement role – 20%

Expert / Consultant (youwere engaged to bringspecific specialistcompetencies) – 27%

Functional Managementrole (CFO, MarketingDirector, HR Director) –26%

General Management role(for example CEO, MD,Country Manager, DivisionManager) – 27%

800

700

600

500

400

300

200

100

0

Num

ber of M

entions

15

Yes 16%

No 84%

Work as part of a team of interim managers?

Interim managers tend to perform most assignments solo, withonly 16% reporting that in the past two years they had workedas part of a team of interim managers at the same client.Among interim managers who had completed teamassignments, the reasons are wide-ranging, and tended to beconcerned with wholesale business transformation:

• Two interim managers to deal with a crisis situation in agroup of 4 companies based in two cities 600km one fromthe other.

• Project leadership for a large insurance company to designa new high compliant system for the solvency II project.This included rapid product design, implementation,compliancy approvals and user feedback integration. Teamexisted out of people from PwC, Avanade and Deloitte.

• Leading a business change team (mostly interim), as wellas leading a functional team (mostly permanent).

• It was a 10 person team working on assembly linesrelocation and re-industrialisation.

• The project used 4 analysts working on a complianceproject at a bank, all of whom were interim managers.

• The company was split between permanent and interimmanagers. Part of the old permanent management wascriticized by the CEO for being stuck and inefficient, so theCEO took on board me, the technical director and the salesmanager to deliver a turnaround.

• The team included 5 interim managers to save a company,myself and another as MD, the other 3 as IT manager,administration and 1 for operations.

• Project team to work on relaunch of a large outlet mall. Theteam is composed by a temporary GM, a temporary leasingdirector and temporary marketing director.

• Turnaround team with competences in: IT and changemanagement (myself), financial/bank issues, operationalmanagement, sales management

I normally bring in experts such as CFO,CSO or COO if needed, however the bestturnarounds are carried out by makingincumbent management part of theinterim team.

Most Important Qualities in an Interim Manager

Interestingly, when asked to rank the most important qualities inan interim manager, survey respondents favoured aspects of“effectiveness” and people skills more highly than specific skillsor experience in the job or function. The most importantqualities highlighted were:

• Ability to work strategically but also implement (23%)

• Results-focused (21%)

• Wide range of experience (14%)

• Specific skills/experience for specific job (10%)

• Ability to quickly get people on side (11%)

16

Interim Manager Perspective

Ability to work strategically but also to implement

Results-focused

Wide range of experience

Specific skills/experience for specific job

Ability to quickly get people on side

Independence

Ability to mentor

Not side-tracked by company politics

Willingness to speak mind when required

Resilience

Number of Mentions

0 100 200 300 400 500 600 700 800 900 1000 1100

21%

14%

10%

11%

8%

7%

5%

4%

3%

Other respondents enhanced the list of “people skills” byadding: “able to manage stressful situations andpsychological attitudes, able to manage different companies atthe same time, able to build teams”, “change managementand quick adaptation to company culture”, “implementing andgetting buy-in for change, and “speed of comprehension,adaptability to new situation, team and tools”. One observedthat it was “a pity that we can only tick 3 qualities. The qualitiesnecessary to help the customer depend on the customer'ssituation, [whether they are] struggling to survive, [or in]expansion ...” This adaptability and flexibility were echoed bymany respondents, including one who commented: “An interimmanager is like a puzzle piece. He perfectly fits the difficulty ofthe enterprise: a real orchestra conductor, composing with allthe personalities and all environments.”

23%

17

Client Data

Ninety percent of interim management assignments from thecandidates we surveyed were with clients in the private sector,with larger corporations (over 250 employees) comprising 43%of assignments and SMEs (small to medium-sized enterpriseshaving under 250 employees) commanding a 46% share. Thepublic and not-for-profit sectors use interim management lessin Continental Europe, with merely 11% of assignments,compared to the UK, where their share of assignments in oursurvey is 24%.

Small to medium-sized enterprises (< 250employees) – 46%

Larger corporations (> 250 employees) – 43%

Public sector organisations – 8%

Charitable organisations – 3%

43%

Type of Client

46%

8%

3%

Industrial / Manufacturing

IT / Telecoms / Technology

Financial Services / Banking

Business Services

Health / Medical / Research

Retail / Distribution

Building / Construction

Transport / Logistics

Media / Marketing / Entertainment

Professional Services

Government / Public Sector

Natural Resources / Utilities

Leisure

Charity / Not-for-profit / NGO

Industry in Which Interim Managers Surveyed Completed Last Assignment

0 50 100 150 200 250 300 350 400 450 500

501

204

110

86

84

81

69

65

51

50

44

38

26

11

Number of Respondents

The economy is already in a sustainable recovery – 7% (104)

In 2014 – 17% (258)

By the end of 2015 – 39% (594)

Not until 2016 or later – 37% (561)

37%

39%

17%

7%

Return to economic growth/recovery

18

Interim Managers Look Ahead

Interim management can act as a bellwether, signallingchanges in the economic climate. We have already seen earlierin this report that primary reasons companies engage interimmanagers include change management (leading a majorimprovement/transformation project); crisis management, toaddress urgent and major issues/turnaround; andimplementing a major initiative such as a product launch orrelocation. Many of these changes are driven by shifts in thebroader economic environment, as companies equipthemselves to weather a recession or capitalise on anemergent trend. As the front-line practitioners leading thesespecial projects, interim managers have a unique vantage pointfrom which to assess the direction of the economy andbusiness cycle.

We asked the interim managers in our survey when theythought Europe would return to normal economicgrowth/stability: this year, by the end of 2015, 2016 or later, orwhether the economy is already in a sustainable recovery. Theiranswers show that from their perspective, there is still someways to go before something resembling normality is achieved.More than three-quarters (76%) felt the economy wouldn’t be ina normal/steady growth state until the end of 2015 or later.Only 7% felt the economy is already back to normal.

Does an improving economy mean more or lessopportunity for interim managers? In individual cases, thissurely depends upon a particular practitioner’s skills andexperience: a Finance Director with experience inturnaround situations may find more opportunity in a downmarket than a Marketing Director whose forte is newproduct launches. Executives Online recruiters observethat interim management moves at the initial stages of achange in the business cycle. At the beginning of adownturn, companies “throw out all the contractors” todeliver a one-off improvement to their bottom line,resulting in a drop in interim management usage. Then, atthe beginning of a recovery, they once again use interimmanagers, to begin expansionary projects to which theyare still wary of committing permanent staff. Earlier data inthis report show the decline in utilisation and day rates inthe recession’s earlier period, and improvement in 2011carrying on into 2014, corresponding with the graduallyimproving European and global economy. When we askedthe interim managers how a European economic recoverywould affect the interim management sector, most (67%)felt companies would use interim managers more. Only13% believed there would be less use of interimmanagement as the economy improved, and 20% thoughtthere would be no change.

Companies will use interim managers more, todrive growth, or for other reasons – 67% (1062)

Companies will use interim managers less,

because they can hire permanently,

or for other reasons – 13% (211)

No change in companies' use of

interim managers – 20% (328)

13%67%

Opportunity for interim managers

20%

19

Multiple key findings of this edition of Executives Online’s

European Interim Report point to a steady, gradually improving

business climate. Compared to prior years, interim managers

are more likely to be on assignment than between

assignments, and perceive themselves to be more busy;

however the bulk of this improvement in utilisation was already

seen in 2011, with 2013’s figures representing only a minor

shift. That 2013 did not continue the strength observed in 2011

mirrors the “double-dip” of economic difficulties experienced in

many European countries. 2008 marked the onset of the global

financial crisis, then 2010-11 showed some recovery, only to

see large cuts in public spending create further challenges in

2012-13. Assignments have lengthened slightly, with the

average assignment lasting a robust 9.3 months. Day rates,

too, are stable at a Europe-wide average of €749 per day.Interim managers report that the economy is improving, but a

strong majority believe that Europe will not return to normal

economic growth/stability until the end of 2015 or later.

A quite diverse and vibrant group of people, and assignments,

exist within this positive context. The Interim Report shows that

some attributes of the interim management talent pool have

remained remarkably constant: age and years of experience

continue to portray interim management as drawing upon the

skills and experiences of professionals with many years of track

record. The proportion of female interim managers stands at

only 10%, but the participation of women in interim

management continues to exceed that of women in the broader

arena of board-level roles.

Interim managers have always been pragmatic about the type

of role and way of working which will hold their interest

longterm. That 80% of the interim managers we surveyed would

be open to the possibility of a permanent, employed role runs

counter to much of the prevailing “wisdom” about interim

managers never returning to employment. The proportion of

interim managers who intend never to return to employment is

stronger in countries where the interim management profession

is better-established.

Clients continue to engage interim managers for two broad

sets of reasons: to bridge a gap, or to deliver a specific

business result in a project or initiative of fixed duration. In

Europe, change management – the leading of a major

improvement or transformation project – is the primary reason

companies bring on an interim manager. Gaps take on many

meanings, with our research pointing to skills gaps being the

second most important reason for interim management

assignments. Interim managers are valued for their strategic yet

hands-on abilities, their focus on results, and their wide range

of experience as chosen specifically to match the task at hand.

Despite the revolution in online business and professional

networking, the proportion of interim management assignments

transacted via a third-party provider such as Executives Online

is growing and now delivers 29% of all assignments. Within the

sphere of assignments transacted through a recruitment

company of any type, it is the interim management specialists

which are most preferred by interim managers, compared to

more generalist agencies and search firms.

We hope you have enjoyed Executives Online’s European

Interim Report. If your company or organisation is considering

engaging an interim manager, contact your nearest Executives

Online office and one of our directors will be happy to

assist you.

Executives Online Group is an international professional

services company that employs a unique blend of online

methods and personal, proficient service to deliver targeted

and cost-effective executive recruitment, for interim

management and permanent roles. Our service delivers senior

directors and managers selected for their specific experience

and skills, in virtually every functional and professional

discipline. At the heart of Executives Online’s service is our

Global Talent Bank, a growing and constantly refreshed

network of over 150,000 candidates. These individuals

represent a diverse and highly experienced resource for

companies facing an urgent need for talent.

Conclusion

About Executives Online

20

"A consultant might draw up a greatstrategic plan, but companies today wantmore than this, they need someone whocan cope with the strategy but even moreimportantly deliver it too. For that mix ofabilities you need interim managers. Theyare prepared to roll up their sleeves andget stuck in with your management team– not sit on the sidelines giving advice.You can get a senior interim manager,who perfectly matches your business, onboard incredibly fast. With interims – fromthat first call to an interim supply agency,you can have someone through the door,and delivering in a week."

Duncan SedgwickCEO, Energy Retail Association

(former Business Transformation Director, Powergen)

"We chose the interim management routeearly on to help us keep pace with ourexpansion plans. New challenges were onthe horizon and we needed additionalexecutive management support, fast. Iwas pleasantly surprised when a numberof highly suitable candidates wereproposed [by Executives Online], allwithin a matter of days. The appointmentimmediately brought us new momentumand greater focus. We were delighted withPeter's contribution."

David ColeManaging Director, Buyenergyonline

"I can strongly recommend ExecutivesOnline as a valuable partner for a smallinternational business such as ours. Theyare truly international, down to earth andprepared to go the extra mile to satisfy aclient, even a small company. ExecutivesOnline have helped our business in therecruitment of a manufacturing managerfor our plant in Belgium. We were veryimpressed with their efficiency, focus andability to deliver. The overall experiencewas very good, the consultants readilyavailable and responsive at all times, thecandidates presented to us were a closematch to our requests. Their ability towork internationally and in teams wasrefreshing. We would use their serviceswith confidence on any future occasion. "

Cristina ScapparinoGeneral Manager, Neoceram

"Greg brought to The CarphoneWarehouse his obvious experience andknowledge which he gladly shared withothers. He hit the ground running, quicklyputting all the necessary protocols andsupport systems in place. But morefundamental than this, he gave our team alot of confidence. At a time when theycould have felt under enormous pressure,he made them believe in themselves, andnot be intimidated by the challenge. Hewasn't cheap but I didn't want cheap, Iwanted good – and that's certainly what Igot. Companies like ours can't afford tohave plans put on hold while we recruit.That's why we went to Executives Online –and once again, in days that had foundme just the person I needed."

Attiq QureshiHosting and Support Director, The Carphone Warehouse

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