Monday, March 26, 2012
Asset Based Finance (ABF) Journal published an Article by John M. Collard, turnaround specialist, interim CEO manager, and private equity advisor. ABF Journal is the magazine for the Commercial Finance Professional. www.StrategicMgtPartners.com www.StrategicMgtPartners.com/abfjinterim.pdf Benefits of Interim Managers Summary:
If you have an extraordinary innovation, opportunity or even a unique situation, an interim executive can help launch, grow, or turnaround your venture by temporarily filling one or more key management roles in your company. Whether they serve as your interim chief executive officer (CEO), chief restructuring officer (CRO), chief operating officer (COO), chief financial officer (CFO), chief selling officer (CSO), chief manufacturing officer (CMO), chief whichever officer (CXO), general counsel or in some other senior executive role, they can stand by your side as an experienced executive with a vested interest in your long-term success. Article-of-Interest:
Quick Leadership & Benefits of Interim Managers
C-Level Executives Can Make the Difference
By John M. Collard
Experienced management is one of the most important factors behind the success of any business. Many managers have ample enthusiasm and energy, but often lack the knowledge and experience needed to sidestep easily avoided mistakes. As a result, far too many companies get into trouble and can die before ever reaching their potential market value.
If you have an extraordinary innovation, opportunity or even a unique situation, an interim executive can help launch, grow, or turnaround your venture by temporarily filling one or more key management roles in your company. Whether they serve as your interim chief executive officer (CEO), chief restructuring officer (CRO), chief operating officer (COO), chief financial officer (CFO), chief selling officer (CSO), chief manufacturing officer (CMO), chief whichever officer (CXO), general counsel or in some other senior executive role, they can stand by your side as an experienced executive with a vested interest in your long-term success.
Interim C-level executives are experienced managers who have launched and grown successful ventures. As your partner, they roll up their sleeves and work towards laying the groundwork for a successful venture. They work hard, because they succeed only if you succeed.
In a typical engagement, the Interim Executive will form an executive management team (often using some existing resources) and take over much of the managerial control of the situation, allowing you to focus on what you're best at: investing in other companies, managing other ventures, product innovation, etc.
Interim Executives are typically hired by private equity investors, board of director members, corporate council and sometimes the management team or CEO. Headhunters are often used to locate these interim execs for special situations. Hiring a new Interim CEO will take board and/or investor action to make the change. What is Interim Management?
Interim Management is the providing of senior C-level management resources on a temporary basis to organizations that require an immediate, short-term need. There are a number of factors that appeal to companies when considering using interim management services, including responsiveness, experience, objectivity, project duration, and the list goes on. Benefits of Interim Management [chart]
Action/Skill --> Benefit
Speedy Deployment -->
Talent on scene in days, flexible term Experience Means Results -->
Highly qualified and experienced resources Objectivity
--> Fresh perspective Accountability
--> Delivery of objectives Effectiveness
--> Board-level reporting gives authority to effect change Commitment
--> Get control, put plans in place, find their replacement and leave when the project ends
Interim Managers have become a powerful resourcing option in today's fast paced business environment. The key benefits that an interim manager brings on assignment to a company can be summarized here. Speedy, Responsive, Flexible Deployment of Resources
Interim manager talent can be in place within days as opposed to weeks or months, which is essential when time constraints are critical. Interim management is a quick solution to bring resources onboard, deploying those who are fully and properly skilled to deliver the service required.
The very nature of interim management means the greatest flexibility from a client perspective including the extension, expansion, or termination of the services. There is no impact to succession planning because interim managers are not permanent resources within the organization, therefore their position does not pose any threat to internal resources and associated succession planning processes. There is also no impact to permanent headcount because interim management provides a solution when clients are constrained on permanent headcount, but still must deliver business objectives. Experience Means Rapid Results
Interim managers are highly qualified, experienced, and able to produce as soon as they arrive on scene. Due to their skill level and expertise, these resources will be fully productive in a matter of days. This over-qualified tendancy is well suited for project work because it focuses on achieving results and gives clear definition of key milestones, regular progress reports and measurement of performance.
Interim managers are more than qualified for the positions they are taking on, and therefore are often stepping down in responsibility. Interim managers have past experience of similar challenges to the ones that they are about to face. In addition to enabling them to have an immediate effect and be productive from the outset, this experience ensures success. They will transfer their skill and experience to your team. Objectivity
Interim managers provide a fresh perspective and are free to concentrate on what is best for the business. Interim mangers are free from any previous involvement in company processes, staff relationships, office politics or career advancement goals. Interim managers identify problems and implement new solutions that may not be visible to company insiders because they are too close to the issue. Accountability
Interim managers will take full, direct, and primary accountability for the assignment including delivery of objectives, budget control, resource management, on-time delivery, etc., in accordance with the scope of the assignment.
Rather than adopting a purely advisory role, as would a management consultant, interim managers become the responsible and accountable line managers that will take ownership and manage a business or implement a project to success. Effectiveness
Operating at or near board-level gives interim managers the authority to effect significant change or transition within a company; unlike a temp, they're not just there to manage the status quo. Interim managers are hired as agents of change to make things happen quickly and because they bring skill-sets that probably are not available within the company. Commitment
Interim managers are committed to an interim career, and each assignment is never just a stop gap until a suitable permanent position is found. Good interims embrace the challenges of different and difficult assignments, take great pride in maintaining the highest standards and realize that the next job is dependent on the success of the current assignment.
Good interims will get control of the situation, put plans and resources in place to run the company, find their replacement if necessary, and leave when the project ends or the company is turned around.
Value to the interim manager process includes bringing expert management, getting results quickly, operating in a flexible environment, all while allowing you to go about the business that you do well. Interim engagements are by definition for a period of time and staffed by a non-employee, therefore avoiding labor laws that apply to employees. This is an advantage in many parts of the world where labor laws are very strict regarding benefits and burdensome severence policies, in contrast to the at-will nature of the United States.
Hire that Interim CxO. ### About the Author:
John M. Collard is a Certified Turnaround Professional (CTP), and a Certified International Turnaround Manager (CITM), who brings over 35 years senior operating leadership, $85M+ asset and investment recovery, 40+ transactions worth $780M+, and $80M fund management expertise to run troubled companies, raise capital, and advise company boards, litigators, institutional and private equity investors. John has parachuted in as the Interim CEO or senior executive to turn around a trouble entity. John is Chairman of Strategic Management Partners, Inc. (410-263-9100, www.StrategicMgtPartners.com
) in Annapolis, Maryland. John was inducted into the Turnaround Management, Restructuring, and Distressed Investing Industry Hall Of Fame
. John is Past Chairman
of the Turnaround Management Association (TMA). John is Chairman of Association of Interim Executives. John is among the Regional Manufacturing Institute's Constellation of Stars 2010
, honoring those individuals whose outstanding contributions have advanced the Maryland Manufacturing industry, and saved jobs in Maryland. John is the 2010 Prince George's Business Leader of the Year. About the Firm:
Strategic Management Partners, Inc. (www.StrategicMgtPartners.com 410-263-9100)
is a turnaround management firm specializing in interim management and executive CEO leadership, asset and investment recovery, corporate renewal governance, raising capital, private equity advisory, and investing in underperforming distressed troubled companies. SMP helps clients restore value to troubled companies, prepare entities for 'cash out' at maximum value, recover assets for fund investors, support litigation, and invest private equity into distressed opportunities. The firm has been advisor to Presidents Bush (41 & 43), Clinton, Reagan, and Yeltsin, World Bank, EBRD, Company Boards, and Equity Capital Investors on leadership, governance, turnaround management and equity investing. SMP is celebrating 20+ years of service to its clients. SMP was named Maryland's Small Business of the Year, and received the Governor's Citation, Governor Martin J. O'Malley, The State of Maryland
as a special tribute to honor work in the areas of turning around troubled companies and saving jobs in Maryland. Turnarounds & Workouts Magazine has twice named SMP among the 'Top Outstanding Turnaround Management Firms'
. American and Baltimore Business Journals named SMP among the Most Active Turnaround Management and Consulting Firms
in Baltimore, Washington, and the Mid-Atlantic Region. Global M&A Network Turnaround Atlas Awards named SMP as Boutique Turnaround Consulting Firm of the Year
. Strategic Management Partners, Inc.
: turnaround managers ready to run troubled companies, recover assets from investments gone bad, advise boards of directors and investors on company viability in distressed situations. We provide strong interim and operational leadership, strategic planning, financial, defense conversion, sales and marketing acumen developed building organizations in large and small companies, including President of public & private middle-market companies providing solutions to Commercial, Federal Government, International markets. Enterprises range from start-up to $100+mil. Industry expertise: Manufacturing; Job Shop; Engineering Services; Computer Processing/Services/Software/Integration; Communications; Defense Electronics; Aerospace; Federal Government Contracting; Systems Integration; High-Tech; Finance; Marine Services; Real Estate Development; Construction; Fabrication; and Printing.
End ### Reference:
www.StrategicMgtPartners.com Turnaround Managers SMP Celebrates 20 Years in Turnaround Business SMP Named Among Top Outstanding Turnaround Management Firms by Turnarounds & Workouts Magazine SMP Named Boutique Turnaround Consulting Firm of the Year, by Global M&A Network Turnaround Atlas Awards SMP Named Maryland's Small Business of the Year and Received the Governor's Citation SMP Named to Most Active Turnaround Management Firms in Mid-Atlantic List by American and Baltimore Business Journals www.StrategistLibrary.com
or Strategic Management Partners, Inc. Library Collard Enters Turnaround Management, Restructuring, and Distressed Investing Industry Hall of Fame Collard Past Chairman, Turnaround Management Association (TMA) Collard is Certified International Turnaround Manager (CITM) Is Your Company in Trouble? Published by Corporate Board Magazine Managing Turnarounds in Times of Crisis
- Published by NACD Directorship Magazine Phases and Actions in the Turnaround Process - Chart Bring Them On Board: Interim C-Level Executives Can Make The Difference Benefits of Interim Managers Benefits of Interim Management Article Collard Interviewed by InterimCEO Collard – EzineArticles.com Expert Author Collard on NewsReleaseWire Social Media:
John M. Collard on Facebook at http://www.facebook.com/JohnMCollard John M. Collard on LinkedIn at http://www.linkedin.com/in/JohnMCollard John M. Collard on Twitter at http://twitter.com/JohnMCollard Firm:
www.StrategicMgtPartners.com Turnaround and Interim Management Experts
John M. Collard
Strategic Management Partners, Inc.