There are many benefits to employing an interim manager, but in an increasingly competetive market place, sorting the good from the bad is paramount.

Interim management has steadily increased in popularity since its introduction from the Netherlands in the late 1980's. It enjoyed exponential growth through the 1990's to a point where in 2001 the value of the market was estimated at £200m and forecast to grow to £400m by 2005.

In the early days there were a relatively small number of service providers and a small pool of interim managers who tended to be highly experienced individuals who had enjoyed successful careers in a variety of companies and industries, in very senior positions, who were often referred to as ‘trouble shooters'. The rapid growth in interim management brought its own problems.

The economic downturn of the late 1990's prompted many companies to downsize. Recruitment companies finding their traditional markets contracting and fee income under pressure saw interim management as an extension of their employment business and moved in without understanding the nature of the new market in which they were operating.

Simultaneously many managers, finding themselves victims of downsizing, moved into interim management as a stopgap while searching for a new permanent role. These factors have contributed to a lack of professionalism in a market where quality is paramount.

In late 2002 the interim management business itself saw a major downturn fuelled by the economic downturn coupled with the threat of war in Iraq. 2003 was for many interim management providers and managers, a difficult year. Many interim managers who were able to find work saw falling rates. Some providers saw turnover falling and, of those who managed to maintain their business, many did so by switching from work in the hard pressed private sector to the public sector where assignments were relatively more plentiful.

Interestingly, despite the downturn, interim management remains a hot topic in management circles. On closer scrutiny however it is quite clear that there is confusion among clients, providers and interim managers alike as to what interim management is and the benefits it brings. For many it is synonymous with gap filling. Precise matching of skills and personal qualities are perceived as unimportant. Interim management is often seen as a cheap alternative allowing the client to obtain a low-level management resource while avoiding the costs associated with permanent employment.

Left unaddressed this confusion will harm the fledgling interim management industry and retard its future growth. Many clients mistakenly concentrate on daily rates rather than on quality and are prepared to use inexperienced interims without recognising the risks they run. They understand costs but do not recognise value. When they subsequently have a bad experience, as many do, their view of interim management is permanently damaged. This preoccupation with cost is a common problem.

As Chief Executives and Finance Directors struggle to control expenditure it is all too easy for them to focus on entirely on costs, which are certain, rather than benefits which can be difficult to quantify. Far from being expensive, most interim assignments yield savings of 3 to 20 times the direct costs of the assignment.

The paradox is that many companies, finding themselves in difficult trading conditions, fail to see the impending crisis for what it is, and respond by reverting to the entrenched management practices which have failed them in the past, inadvertently making their position worse. The reality is that they need to ‘break the mould' and do things differently. A carefully selected interim manager can be the ‘safe pair of hands' to facilitate this while minimising the attendant business risk.

The professional interim manager comes unencumbered with historical baggage, and destructive company politics and can concentrate exclusively on working with the management team to resolve the business' problems. He/she is independent and can pursue courses of action that would be impossible for directors closely associated with previous policies.

Issues, which would be difficult for a manager with career aspirations, can be tackled quickly and effectively. Interim management is not a soft option pursued by ‘journeyman' managers who cannot hold down a permanent job. It requires total commitment from a seasoned professional with the track record and personal credibility to lead the business thorough difficult times supporting and mentoring existing managers.

The interim manager has only one objective, to deliver quality results for the client's business and deliver them fast. The use of interim management is not confined to turnaround or crisis situations. It can also provide a cost effective means of obtaining quality resource to cover temporary shortages or to provide specialist skills that could not be justified permanently.

Some clients mistakenly believe that there is a straight choice between permanent and interim resourcing. In many cases however this is simply not so. Good permanent managers are often very different animals from their interim counterparts. The former are effective running established operations and businesses in steady-state situations. The latter thrive in highly pressurised environments where, in addition to running today's business, rapid change is required and sustainable results must be achieved quickly. The professional interim will probably be operating at or close to board level and usually be over-qualified for the role.

This competence is not simply about technical capability which is a ‘given'. It is also about the organisational and team skills necessary to harness the latent ability and enthusiasm invariably present in organisations but often unrecognised. The chemistry between the interim manager and client is vital and it is here that high quality professional interim providers add genuine value. The rigorous selection and referencing criteria they employ provide a guarantee that the client will get the solution the business requires very quickly.

The confusion in the market leaves the interim management industry is facing a dilemma and at an important crossroads in its development. Should it espouse high professional standards, enhancing its image and reputation or should it allow itself to be dumbed down and become a source of cheap temporary resource leading to ultimate decline and failure to achieve its real potential? The response of the industry to this challenge will be critical to its future. If the latter transpires, and by default it easily could, it will become increasingly difficult for talented professional interim managers to remain in the profession.