2011 IMA Ipsos MORI data highlights private sector now accounts for two thirds of interim appointments
- Huge growth in business generated by interim managers
- Turnover and length of assignments has increased
The chemical, pharmaceutical and biotech sectors accounted for 11 per cent of all private sector interim management assignments in the fourth quarter of 2011, up five percentage points from the previous quarter.
Meanwhile, the UK’s private sector makes up two thirds (66 per cent) of all interim management assignments, which are typically short term contracts of up to six months for senior executives. This is the highest percentage for four years.
This are two key findings from the latest Ipsos MORI survey, conducted on behalf of the Interim Management Association (IMA), the industry body representing the leading UK companies that recruit interim managers.
Overall, the amount of business generated by the UK’s top interim managers has jumped 93 per cent in the past five years to £196m, compared with just £102m in 2006.
Among IMA members, the total turnover for interim management assignments has risen sharply each year, with the exception of 2010, which saw a drop of £10m from the previous year to £188m.
In addition, the average length of assignments has also increased, from 108 days in 2006, to 166 days in 2011. The number of completed assignments in the period rose from 1,297 to 1,587, although the figure has been declining from a peak of 1,829 in 2009.
Jason Atkinson, chairman of the IMA, commented: “Organisations across the chemical, pharmaceutical and biotech sectors are clearly turning to interim managers, because they are cost-effective and produce results quickly.
“These ‘top flight’ executives provide board level independent business leaders or project managers, who are experts in their field, with a track record of quantifiable achievement. And they can be turned on and turned off immediately to meet demand. Compare that with the lengthy process of hiring someone on a full-time basis and then having a permanent and – often expensive – extra member of staff.
“The UK has the most established interim management sector in the world and it is becoming the norm for organisations to hire interim managers. I believe that in 2012 – and beyond – interims will continue to play a valuable role as we work towards economic recovery.”
In the most recent Ipsos MORI survey, the figures for the fourth quarter (Q4) of 2011 reveal that enquiries for interim managers were, on average, 67 per IMA member, the highest they have been since 2011. This is a rise of 76 per cent on the same quarter in 2010, and 4 per cent on the third quarter (Q3) in 2011.
Further Q4, 2011 survey highlights include:
- Interim managers earn more in the private sector. The average day rate paid to the interim manager in a private sector assignment was £644. This compares with an average of £543 paid to the manager in the public sector.
- The most common reason for hiring an interim manager was for programme or project management. This accounted for 40 per cent of assignments, up 4 per cent on Q3. Some 19 per cent of assignments were for change or transition management, compared with 14 per cent in Q3.