Turnaround Management

Management Articles | March 6, 2009

This article considers the benefits of using turnaround managers to address problems quickly.

Their ability to identify and address a problem quickly, their impartiality and their strong people skills make interim managers ideal people to handle turnarounds and business restructurings. So it is not surprising that the most recent assignments of over half of the respondents to the latest Impact Executives’ survey were turnarounds or restructurings.

While the most common length of assignment cited by respondents is four to six months, the number whose assignments lasted for 12 months or more rose this year to 30% from 20% last year. But it seems the trade-off for longer assignments could be a lower day rate: the number who said their daily rate was higher than on their previous assignment fell to 23% from 32% a year ago.

The number who gained their assignment through an interim provider rather than through their own networks rose over the year from 46% to 56%, the highest level for four years. This suggests that companies are increasingly reassured by the fit between assignment and interim manager that derives from the rigorous approach to interviewing, assessing and referencing candidates guaranteed by interim executive providers such as Impact Executives.

Manufacturing industry accounted for 19% of all assignments carried out by Impact Executives interim managers over the past six months, just behind central and local government and public sector health organisations. Respondents expect the trends of the past year to continue, with 56% predicting that turnaround and restructuring will continue to be the primary areas requiring interim management expertise.

A further 15% anticipate business growth will also generate assignments. This finding is consistent with respondents’ guarded optimism for economic prospects: some 41% of them expect a small upward trend during the first half of 2007, compared with 32% a year ago, and just 15% predict a slight downward trend, compared with 26% a year ago.

Previously published in The Business Review

, Impact Executives

Impact Executives

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ABOUT THE AUTHOR

Clive Sexton

I am currently a Director of Impact Executives which is a Global Interim Management provider (part of the Harvey Nash Group) and in this role I am at the frontline of dealing with senior clients and candidates across a wide range of change, HR and resourcing issues. I have extensive commercial experience gained through general management and board roles within both Plc's and also through running my own businesses. I have over 18 years international experience of providing cross-functional resourcing solutions to both global businesses and start-ups. I specialise in the following sectors: Technology, Media, Telecommunications, Pharmaceutical & Biotechnology, and Local Authorities.