Over the last two months I have been speaking to more Interim Managers that are getting frustrated with over complicated hiring processes that are based on a “recruitment = one size fits all” approach. It appears that these processes seem to be increasingly accepted by some hiring companies and some Interim Management providers (who I understand are just trying to secure more work for Interim Managers on their database).
I am also seeing more and more career Interim Managers that are carefully selecting a small amount of “go to market” Interim providers that know them as individuals, understand their approach and can effectively communicate their method of delivering results to clients.
Given your experiences over the last couple of years, do you think that true Interim Management is getting lost in recruitment?
Mark Kitchen is Head of Business & Support Services for Interim Partners.
It’s been a little over three years since I joined Interim Partners and looking back over previous blogs it’s plain to see that not a lot has changed in terms of the macro-economic landscape. We’re still talking about recession albeit with the emphasis on double dip, on tough markets and the need to become ever more competitive, but what will prove to be the catalyst for the change that will bring about an upturn?
With growth stalling even in the BRIC economies, it’s difficult to see what will provide the impetus for growth. Could it be that we have to wait for the Euro crisis to be resolved before companies will pick up investment? It would seem that the political will is lacking with Europe’s leaders adopting a wait and see attitude rather than tackling the problem head on, as this would lead to the inevitable admission that the currency was flawed from the start and cannot continue to function in its current guise. It will also lead to a painful, if short lived, adjustment – something that is rarely a vote winner.
It’s difficult to see what else could provide the stimulus and I suspect that we will be forced to live with the current uncertainty until markets intervene and make the decision for the politicians. This looks increasingly likely to be sooner rather than later given the pressure from private investors in Greek debt!
We live in interesting times as they say…
Tom Legard is Head of Manufacturing at Interim Partners.
I’m sitting here on the train at 6.00am trying to warm up by writing my blog. Why? Well it’s certainly not a New Year’s resolution that I’m going to be far more efficient with my time. I have to put it down to the fact that the start to the year has been a little bit frenetic.
Just before Christmas I was reading articles from a series of economists who were trying induce an Ebenezer Scrooge-style festive period with their talk of “double dip” and Armageddon. But since then I’ve been buoyed by the fact that my meetings are about deals that are back on the table and more interestingly, commercial growth strategy! I was also lucky enough to have a piece published in the FT last week that has received some interesting feedback regarding the involvement of the lender community in appointing senior level interims. All in all I believe we have an interesting year ahead!!
Maybe we’re trying to talk ourselves out of the issues that surround us or possibly we’re trying get our business done for the year nice and early so we have the summer free to enjoy the splendour of the greatest show on earth coming to London in July. I have noticed a spring in the step of a number of the clients that I’m meeting right now and long may the positive attitude continue. I’d be interested to hear your thoughts and dare I say predictions are for the year. Do you get out of the blocks quickly if you’re running a marathon?
Simon Gough is Director of Private Equity & Advisory at Interim Partners.
I was thinking recently of an Institute For Turnaround (IFT) lecture I attended in the summer of 2008 where Sir Stuart Rose was inducted as an Honorary Member and made to ‘sing for his supper’. On reflection I wonder if Sir Stuart is in possession of a crystal ball as he made what have turned out to be some frighteningly accurate predictions on the retail sector and economy as a whole. I won’t go into the negatives because you’ll be more than familiar with the bad news in retail in recent times but if his predictions continue to be accurate then I’m going to share some good news with you……….he talked about four years of pain before things got better and by my calculations that makes it this summer – hooray!
On the subject of predictions, I recently presented my business plan to our team at Interim Partners and BrightPool and highlighted the areas I think will be most prevalent for interim managers operating in retail this year. On the proactive side I see roles for interim managers who can look at opportunities for retailers to diversify and create more reason for consumers to spend. Sir Stuart summed it up nicely by saying M&S was continually trying to ‘persuade you to part with every pound that we can’. There is also the continued growth of on-line retailing. I spoke with a major parcel delivery business who have more than doubled the amount of parcels delivered in December over the last three years. Retailers will continue to invest in on-line and need operational support to make sure the growth can be supported by their supply chain. On the reactive side there is going to be continued work around Finance (cash management) and HR (business re-organisations).
I’m interested to hear your predictions for the sector in 2012. Are the good times going to return to UK retailing in time for the Olympics?
Jonathan Flynn is Head of Retail at Interim Partners.
Despite fears that the UK economy is about to re-enter recession it seems that the London commercial property market remains a key destination for foreign investors looking to plough money into bricks and mortar.
According to Cushman & Wakefield, £6.3bn worth of deals were transacted in the City last year compared to £4.7bn in 2010 with at least 30% coming from overseas investors. St Martins Property, the Kuwaiti royal family’s sovereign wealth fund, are also following this strategy by selling off ‘non-core’ retail and industrial assets to free up cash to acquire more ‘trophy’, commercial assets in central London. Whether you agree with this strategy or not it all speaks positively of the London commercial property market and its desirability to foreign investors. This can only be a positive trend for the London economy and, alongside our strong Financial Services presence, will help maintain London as a global business powerhouse and reliable source of long-term return on investment.
In addition to the perception of London as a secure destination for foreign investors its geography will intrinsically contribute to push prices upwards as demand outstrips supply. With space at a premium in central London, development of any kind is limited and will inevitably lead to a bidding war. Furthermore, landmark developments like the Shard and the Walkie-Talkie require such a huge financial outlay that they are restricted to only the largest of companies – so it seems likely the clamour for high-quality real estate in London will continue to drive prices upwards, especially with all eyes on London in the Olympic year.
One note of caution, however, is the declining occupancy rates of London office blocks. According to James Young, Head of Cushman & Wakefield’s City office:
“Occupiers in general remain cautious and a number of decisions have been delayed. With the current economic uncertainty, 2012 will see take-up significantly below average. A number of planned schemes are likely to get pushed out and pre-letting is still a major requisite for most schemes. Prospects for demand look more positive looking further out, due to the volume of lease expiries beyond 2013.”
We may see occupancy rates in office blocks dip as businesses shy away from committing themselves in these uncertain times but I think we can continue to expect a lot of interest in London’s commercial property sector as investors take the long-term view over strong investments yields.
What do you think – I’d be keen to hear your thoughts?
Paul Phillips is the Senior Business & Support Services Consultant at Interim Partners.
Iran appears committed to its hegemonic aspirations within the gulf, flexing its muscles regionally on an almost daily basis (most recently with the large scale naval exercises around the Straits of Hormuz) and continuing its policy of developing itself into a credible nuclear player.
As the price of crude (over the long term) continues to rise on the basis of several factors – the eradication of reserves, continued global security threats and the political instability of some of the world’s largest exporters (GCC, Nigeria and North Africa for example) – we can add to this equation that the new major oil importers, notably China and India, are expanding their demand and the oil market will simply have to expand its production capacity.
Put simply, 66% of the world’s oil reserves reside in the Arabian region, and ultimately oil remains the world’s dominant source of energy and will continue to be for some time to come.
This indubitably promises to increase the world’s dependence on the Persian Gulf members of the Opec, especially Saudi Arabia and maintain upward pressure on price, in conjunction with the continued sabre-rattling emanating from Iran.
On this basis, what alternative strategies if any, should we be exploring to reduce our dependency on our future, free access to the region?
Jonathan Mooney is the Senior Energy & Utilities Consultant at Interim Partners.
PricewaterhouseCoopers is on track to receive a record 30,000 applications for its graduate entry scheme with just 1200 places available - the latest indicator of the strains in the British labour market. That’s an amazing twenty-five applications for every one place.
This figure is 50% higher than the 20,000 applications received for its 2011 intake. Ian Powell, Chairman and Senior Partner, notes however that one of the “real challenges” of applications on this scale is the fear of quality candidates slipping through the cracks. That means you’re eliminating a lot of people on paper.
I have some sympathy with this view. Compared to this time last year, the Interim Partners financial services practice has seen an increase of approximately 40% in new candidates wishing to join our community. This is largely due to investment projects being abandoned or postponed, redundancy programmes and generally more candidates opting for the interim lifestyle. What becomes increasingly important, therefore, is the quality of each individual’s ability to market him or herself effectively. There is a variety of tools on hand to help nowadays, from the obvious Linkedin/comprehensive CV to less commonly used techniques such as Twitter/websites/thought leadership pieces.
But for my money, the main route to success is to stick to the basics. Well- presented (grammatically correct!) communication, flexibility and polite persistence will ultimately pay off.
I would be interested to hear what your best marketing tips are…
Liz Sinclair is Account Director for Interim Partners.
The new year began precariously for UK Food & Drink manufacturing; as with the global economy many companies are teetering between signs of recovery and omens of collapse!
Being so risk adverse can create paralysis, but others are maintaining or even increasing profit through consolidation and cost management. This sheds light on a market that surely does not represent true sustainable growth. Now more than ever is the time for fresh ideas, invention and innovation - we must tackle austerity with audacious ideas that represent real business opportunities and tackle fundamental problems in the market!
Tesco alluded to this with the announcement on Friday that festive cheer ran out, with results taking a tumble following their lacklustre review of Christmas trade. Chief Executive Philip Clarke admitted Tesco was “disappointed” with its domestic performance over the seasonal period:
“There is much more we can do to further improve our shopping trip for customers and we are determined to move faster.”
For most people the new year is a time for reflection, prediction and action and the same is true of major multiples such as Tesco. The recession has had an impact on UK consumers’ shopping budget which – now seriously pinched – has become more discerning. Traditionally the retailer response has been to pass on the pain and squeeze manufacturers’ margins.
However, is Phillip Clarke’s statement a nod to change in 2012? Will manufacturers this year have a chance to change the balance of power?
If so, how ?
In the last few year retailers – by squeezing margins – have forced manufacturers to focus on good cost management and supply chain efficiencies to recover bottom line margin. Market consolidation was another approach – buying up market share and creating stronger leverage with retailers.
However, does this represent true market growth in the same way as organic growth or innovation or new product launches? Perhaps the retailers’ continuous downward pressure has sent manufacturers into a New Product Development black hole or has it had the opposite effect?
I believe the winners of 2012 will be those businesses that can invent, innovate and launch effectively. As we can see with Philip Clarke’s statement retailers want to embrace change and improve the shopper trip experience, so not only is it about new product – the focus will also be on innovative in-store activation!
The key trends of 2011 will continue in 2012, with three areas of business activity in Food & Drink:
1. Consolidation will continue as businesses build market share and power to battle the retailers on price and distribution.
2. Cost Management – on-going review of cost and efficiencies to recover margin erosion. Looking at the total value chain as a response to increasing raw material costs and decreasing margins with the retailers. Businesses will also be looking at how they can re-engineer processes/product to innovate in the market, so a combination of cost management and NPD will support a more strategic approach and joint planning with the retailer.
3. Innovation – my call to action for 2012. We must have fresh ideas, new ways of working and new products if, as a market, we are going to truly grow.
So how as an industry can we bend the boundaries, change the way we work and launch new and exciting products, gain power back from the retailers and connect with the consumers????
Manufacturers need to be more daring and as they say; ‘out of adversity comes opportunity’ !!
Jo Sands is Head of Food & Drink at Interim Partners
Yet again we approach the bonus season for Bankers – not much seems to have changed and yes, we are still talking about it!
The public in the main are still angry about their pay, shareholders undoubtedly have strong views too but are powerless to influence change and block large pay outs to bosses.
Mr Cameron says he is determined to end the “merry-go-round” of super-rich bosses rubber-stamping each other’s enormous salaries and being rewarded for failure – even if that means legislation.
Research from the Institute for Public Policy Research (IPPR) suggests chief executives in 87 of the FTSE 100 companies took home an average of £5.1m in basic pay, bonuses, share incentives and pension contributions in 2010-11.
This represents a year-on-year increase of 33%, while the average increase in company value was 24% according to the think tank.
Does this “make your blood boil” as Mr Cameron says?
This maybe a solo position but I am not against a bonus culture, providing it is linked to positive performance and within a scheme that contains the necessary checks and balances to monitor this. Isn’t this how all businesses run?
Clearly not all banks are the same and we should not tarnish them all with the same brush ! However, it would be a very sad indication of an overall banking culture if legislation was needed to control a fair bonus culture.
What are your thoughts on the matter?
Angela Hickmore is a Director at Interim Partners.
I hope that everyone had an excellent Christmas and New Year. 2011 was not without its challenges but the financial services practice of Interim Partners had another strong performance with growth over 30% for the second year running. Given the level of change within the financial sector I expect 2012 to be equally busy with cost reduction exercises, regulatory reform and integration programmes widely present in the market.
Now that the festivities are over and normal service has resumed I am fully focused on what needs to be achieved in 2012 and how to go about it. At the risk of sounding strange, I must confess to thoroughly enjoying writing business plans, it’s a great chance to step back, lift up the drains and think hard about what works and what doesn’t. Something new that I will be doing this year is working towards achieving the Chartered Director qualification with the Institute of Directors – its been a long time since I went back to school but am looking forward to sharpening up on subjects such as finance, strategy, marketing and corporate governance.
I would like to ask those within the Interim Partners network: what are your objectives for the year and what are you doing that is new for 2012?
Andrew McIntee is Director of Financial Services for Interim Partners.