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Interim Management
            Trend Update
                 Research and Analysis on the Netherlands Market for Interim
                 Management and Other Fast-Track Executive Resourcing




Netherlands Survey Report
Contents


1    Introduction
2    Research Objectives and Methodology
3    Current Trends
5    Interim Manager Profile
9    Interim Management Billing Rates
10   Sourcing Interim Management Assignments
12   Drivers of Interim Management Engagement
13   Most Important Qualities in an Interim Manager
14   Interim Managers in the Private Equity Realm
16   Women in Interim Management
24   Conclusion
Introduction
Executives Online offers a unique, fast-track approach to executive resourcing and has been a pioneer
in the field of interim management practice and recruitment. With a nine-year history of matching
companies and executive talent, we have been both trendsetters and keen observers of the growth in
this area. By interim management we mean the strengthening of a company’s management team by
the addition – on a fixed-term contract – of one or more highly experienced senior executives.


The pressure on companies today to deliver results quickly and at reduced cost has only increased
amidst the challenges of the global economy. Recent economic conditions have brought about
headcount reductions, hiring freezes, outsourcing, and reorganisations that simply exacerbate existing
pressures. Optimal resourcing is always a corporate priority, but perhaps never more so than today.


In our business, we have seen the number of interim managers registered with us grow from a few
thousand in the UK in 2000 to over 80,000 globally today. We observe significant differences in the
recognition and adoption of interim management by country, and even by region within each country.
The Netherlands has long been regarded as the “cradle of interim management”, where it emerged in the
1970s as a more flexible way of engaging management professionals. Belgium is an equally mature market
for interim management, as is the UK. In Southern European territories and Asia Pacific, the concept is at
an earlier stage of development that shows much promise. Variations in terminology, contract structure and
local employment law make global interim management a diverse and compelling field for study.


We’ve seen tremendous growth in this area of our business, and we expect that to continue as the
value of interim management continues to be recognised by more companies and incorporated as
part of their resourcing strategies.


Reliable information about growth and trends in the field of interim management has not always been
readily available. Back in 2000, Executives Online worked in conjunction with the Institute of
Management Consultancy to commission a study with Sambrook Research International on the interim
management market in the United Kingdom. The Sambrook Report on UK Interim Management was
published in 2000. In 2004 and 2006 respectively, Executives Online published In the Interim and the
first edition of The Interim Report. In 2007 we updated The Interim Report with new information. In 2009
Executives Online now publishes multiple regional and international editions of this report, drawing on
a global market research exercise involving thousands of senior executives: 262 of these were in the
Netherlands, 57 in Belgium, and a comparably lower number in Luxembourg. We intend to use these
new reports as benchmarks against which future research can be compared.


We are excited to share this new information with you, and hope that it will address questions you might
have regardless of your perspective: as an interim manager yourself, as a company that has found
great value in interim management, or as a prospective client company that may not realise how
valuable interim management could be as part of your resourcing strategy.




Edwin Glas
Managing Director, Executives Online




                                                                                                             1
Research Objectives and Methodology


Objectives                                                     Defining Interim Management

Our research aimed to answer a variety of questions about      For the purposes of this report we define interim management
interim management:                                            as being: The provision of a mature, professional manager,
                                                               well qualified by relevant practical experience, either to fill a
• What is the typical profile of an interim manager in terms   gap in permanent staffing or to deliver a specific business
  of gender, age, background, experience, and how they         result within a limited time period.
  source assignments?
• What business sectors are more likely to use interim
  managers?                                                    Survey Methodology and Timings
• How has the global recession affected the utilisation
  and pay rates of interim managers?                           Our survey was conducted online in September 2009, via
• What qualities are most important in an interim              an online questionnaire to 262 Netherlands-based interim
  manager, both from the perspective of interim managers       managers and the clients who employ them.
  themselves and also from a client perspective?
• What needs drive companies to seek interim
  management solutions?
• What is the role of interim management in the private
  equity arena?
• What trends are impacting the role of women in interim
    management?




The global economic recession that
began over a year prior does seem to
be impacting utilisation rates among
interim managers.




2
Current Trends

Employment Status                                                 Current Status

At the time of our survey, just over a fifth of respondents
were working in full-time assignments and another 9%
were working full-time via a combination of part-time                                   9%
assignments. Another quarter was engaged part-time.
Almost half were not on assignment.

                                                                             25%
The Netherlands figures mirror the utilisation rates we are                                               45%
currently seeing elsewhere in our business in more mature
markets for interim management. For full-time assignments,
the Netherland trails other markets slightly, with Italy seeing
31% in full-time assignments, France 28% and the United                                21%
Kingdom 27%. On balance, the Netherlands is seeing a
somewhat higher number of part-time engagements (34%
in total) vs. France at 20%, and Ireland and the United
Kingdom at 25% each. Forty-five percent of the                        Not on assignment – 45%
Netherlands survey respondents were currently “not on                 Full-time assignment – 21%
                                                                      Part-time assignment – 25%
assignment,” which compares favourably to Ireland at
                                                                      Full-time, on combination of part-time assignments – 9%
55%, France at 52%, and the United Kingdom at 48%.


The global economic recession that began over a year
prior does seem to be impacting utilisation rates among
interim managers. Compared to their counterparts in other         In terms of demand for your services, are you
parts of Europe, Netherlands interim managers are feeling         finding yourself:
themselves relatively less busy. Almost sixty percent of
survey respondents indicated that they were less busy than
they’d been a year ago, compared to just 50% in Ireland
and the United Kingdom, 47% in France, and 44% in Italy.
A quarter said that they were “about as busy as a year                           25%
ago”, which was less than the comparable figure for other
countries: Ireland at 36%, Italy at 35%, the United Kingdom
at 32%, and France at 31%. Finally, a smaller percentage                                                  59%
of Netherlands respondents indicated that they were “more
busy than a year ago”: 16% compared to 22% in France,                         16%
21% in Italy, and 18% in the United Kingdom. Netherlands
respondents who indicated that they were “more busy”
than a year ago tended to be working in business services,
government/public sector/not-for-profit, and healthcare.

                                                                      Less busy than a year ago – 59%
                                                                      More busy than a year ago – 16%
                                                                      About as busy as a year ago – 25%




                                                                                                                                3
Length of Assignment

Interim management assignments can run the gamut from
short-term projects to longer-term initiatives. As the survey
results show, there is a spread, with nearly a quarter of projects
extending longer than a year. The same pattern is observed
elsewhere in Europe, with more assignments being either short
(under 6 months) or long (over 12 months).



    Length of Last Assignment?


                              40

                              35
                                                     22%                                           22%
                              30      20%                           20%
        Number of Responses




                              25
                                                                                   17%
                              20

                              15

                              10

                               5

                               0
                                   0 – 3 months   3 – 6 months   6 – 9 months   9 – 12 months   12 months +




4
Interim Manager Profile

Gender                                                           Age

The interim management field draws a disproportionate            Interim managers tend to be seasoned executives, with just under
number of men, with fully 91% of our survey respondents being    a quarter of respondents aged 50 or more, and an average age
male. The proportion of women is quite a bit lower in the        of 48. Over half of respondents fell into the 40-49 age range,
Netherlands than in other countries, including the United        and just 21% were under the age of 40. Netherlands interim
Kingdom and Italy where 18% and 12% of interim managers          managers by and large are younger than their counterparts
responding to the survey were female.                            elsewhere in Europe. In the UK, for example, 47% of interims
                                                                 are aged 50-59, 31% are aged 40-49, and only 7% aged 30-39.


  Gender                                                             Age
                                                                              20–29 1%

                                Female
                                                                                    30–39          60–69
                                  9%
                                                                                     20%            11%

                                                                                                            50–59
                                                                                                             13%




                                                                                         40–49
                          Male 91%
                                                                                          55%

                                                                                                            Average age: 48 yrs




Years of Experience                              Years Experience

Interim managers bring years of experience
to their assignments; the average
respondent had nearly six years of                              8%     6%                      Years              No. of
                                                                            5%                 Experience         Respondents
experience as an interim manager, and this
figure does not include additional years of                                                         20+             10
                                                                                 10%
experience as an employed executive.                                                                15–19            8
Almost half of survey respondents had                                                               10-14           16
more than five years of experience as              30%                                              5-9             38
interim managers. Reflecting the growth                                                             3-4             26
trend in the field of interim management,                                         24%               1-2             46
however, another third of respondents have                                                          Less than 1     12
1-2 years of experience, having broken
                                                                17%
into the field relatively recently.




                                                                                                                                  5
Days Billed Over Last              Time as Interim Manager vs. Days Billed
    Year
                                                                           200
    There is a slight correlation
    between years of experience as                                         180
                                                                                           179
    an interim manager and the                                             160




                                         Days billed over past 12 months
    number of days billed over the                                                                                   156     154
                                                                           140     146                      152
    past year. Interim managers with
                                                                           120                      127
    more than 15 years’ experience
    tended to bill more hours on                                           100
    average. Other European                                                 80
    countries also show new interim
                                                                            60
    managers to be less successful
                                                                            40
    at keeping themselves well-
    utilised.                                                               20                                                          31
                                                                             0
                                                                                  20+      15–19    10–14    5–9     3–4      1–2    Less than
                                                                                  years    years    years   years   years    years    1 year

                                                                                                Years as Interim Manager



    Company Size                       Company Size

    Interim managers work in
    companies of varying sizes; the
    need for interim services seems                                                                         16%
                                                                                            19%
    fairly consistent across the
    board.
                                                                                                                    9%
                                                                                     6%



                                                                                          20%
                                                                                                              30%




                                                                            More than 5,000 employees – 16%
                                                                            2,500 to 5,000 employees – 9%
                                                                            250 to 2,500 employees – 30%
                                                                            50 to 250 employees – 20%
                                                                            Fewer than 50 employees – 6%
                                                                            I have worked in equal measure for companies of all sizes – 19%




6
Opportunity by Sector

Interim management opportunities do vary across sectors,
with the most opportunity growth currently in the areas of
healthcare, government/public sector/not-for-profit,
education, business services, and consumer goods/retail.



  Opportunity by Sector

     Less opportunity now        Same as before       More opportunity now   N/A

                              Healthcare
         Govt/Public Sector/Not-for-profit
                               Education
                       Business Services
                 Consumer Goods/Retail
                       Financial Services
               Pharmaceutical/Sciences
              Manufacturing/Engineering
                  Technology/IT/Telecom
            Oil/Gas/Petroleum/Chemical
                              Automotive
                                Transport
        Media/Entertainment/Advertising
                   Property/Construction
                              Agricultural
                Leisure/Travel/Hospitality

                                         0%           20%          40%        60%   80%   100%




Further reflecting the recession’s impact,
almost 60% of survey respondents
indicated that they were less busy than
they’d been a year ago.




                                                                                                 7
Current Economic Crisis                                               Has the current economic crisis been a factor in
                                                                      your beginning to work as an interim manager?
The current economic crisis does seem to have had influence in
driving some to enter the field of interim management. For one
third of survey respondents, it was a factor, with some
respondents noting that “more opportunities were available
through interim assignments.” Other respondents bemoaned the
                                                                                                           Yes
lack of hiring, noting that it was “extremely difficult” to land
                                                                                                           33%
contracts in the current economic environment. “It was my only
option after I lost my job,” wrote one respondent.                                  No
                                                                                   67%
For others, however, the decision to be in interim management
was only “coincident” with the economic crisis; they called it a
“long-term,” “well thought-out,” and “personal” choice.
Respondents cited a variety of reasons for choosing interim
management: “the flexibility,” “being on my own,” “gaining
experience in a variety of different organisations,” and “diversity
and challenge.”



Desire for Permanent Employment                                       Would you apply for a permanent
                                                                      job given the opportunity?
Mirroring trends we see elsewhere in the world, almost one-
quarter of interim managers are committed to the field of
interim management and would choose to continue in that
realm. The remainder said they could be interested in
permanent employment if the right opportunity presented itself.                                          22%



                                                                                   78%


                                                                                         Male 91%




                                                                                No, I am 100% committed to interim
                                                                                management – 22%

                                                                                Yes, I could be interested if it was the
                                                                                right opportunity – 78%




The current economic crisis does seem to
have had influence in driving some to
enter the field of interim management.




8
Interim Management Billing Rates

Changes in Billing Rate                                             Change in Daily Rate?

Fully 65% of survey respondents indicated that their billing
rates have remained largely the same compared to last year,
on a par with the United Kingdom at 64%, but higher than                                                                      8%
Ireland at 55%, Italy at 50%, and France at just 27%. However,
                                                                                                                27%
just 8% of Netherland respondents said that they were billing at
a higher rate, compared with 20% of respondents in France,
14% in the United Kingdom and 11% in Italy. On balance,
however, only 27% of Netherlands respondents were facing
lower billing rates, compared with 38% in Ireland, 39% in Italy,
and 53% in France.
                                                                                                                                   65%



                                                                                                       More – 8%
                                                                                                       About the same – 65%
                                                                                                       Less – 27%




Billing Rate Differential by Gender                                 Women vs. Men

There was some billing rate differential by gender (among                                                   1000
those who indicated gender), with men earning an average of
                                                                                                             900
7% more than women. This compares very favourably with the
                                                                      Average Daily Billing Rate (€)




                                                                                                             800
                                                                                                                      €927
pay gap for permanent employment. According to European
Commission figures published earlier this year, the gender pay                                               700                     €867
gap stands at 23.6% in the Netherlands and at 17.4% Europe-
                                                                                                             600
wide. In the United Kingdom, a market where Executives Online
                                                                                                             500
has extensive experience in interim management and where it
is well-established as a way of securing executive talent,                                                   400
interim day rates for men and women are only 4% apart,                                                       300
compared to an permanent employment gender pay gap of
                                                                                                             200
21.1%. This relative gender pay equity, combined with the
flexibility and control over working life that interim management
                                                                                                             100
offers, seem to indicate that the field may be a more attractive                                               0
                                                                                                                      Men           Women
option for women than permanent employment.


Billing rates for the Netherlands compare very favorably to
those in other countries. The rate of €927 for men is higher
than that in Italy (€616), Ireland (€739), and France (€902), and
the women’s rate of €867 is similarly higher than Italy (€759),
Ireland (€704), and France (€858).




                                                                                                                                            9
Sourcing Interim Management Assignments

Almost three quarters of the interim managers surveyed had
                                                                       Source of Last Assignment
sourced their most recent project on their own, with just over a
quarter having made use of interim or recruitment agencies.
This agency share is similar to what we observe elsewhere in
Europe, where two thirds to three quarters of assignments are
found directly.

                                                                                 27%




                                                                                                           73%




                                                                              Via an interim or recruitment agency – 27%
                                                                              Generated the opportunity myself – 73%


Role of Agencies

There is variance across the spectrum of interim managers, but
the majority source a good percentage of their own projects,
with over half sourcing all of their own projects.



  How Interim Managers Source Their Work




                        100% via agencies                      8%
     90% via agencies /10% self-generated        2%
     80% via agencies /20% self-generated            4%
     70% via agencies /30% self-generated         3%
     60% via agencies /40% self-generated       1%
     50% via agencies /50% self-generated                       11%
     40% via agencies /60% self-generated       1%
     30% via agencies /70% self-generated                 6%
     20% via agencies /80% self-generated                 6%
     10% via agencies /90% self-generated             5%
                      100% self-generated                                                                                  53%


                                            0        10        20     30       40       50       60      70       80        90

                                                                           Number of Responses



10
Agency Share                                                 Agency Share

Agencies had a role in sourcing one quarter of all
assignments among survey respondents. Interim managers
find work via two main channels: their own business
development and networking, and recruitment agencies. We
asked our registered interim executives what proportion of                              25%
their work came to them via recruitment or interim
management agencies, and what proportion they generated
themselves. Their answers show that agencies had a role in
sourcing one quarter of all assignments among survey
respondents.

                                                                            75%

This agency share is similar to what
we observe elsewhere in Europe,
where two thirds to three quarters of                            Agency – 25%
assignments are found directly.                                  Self-Generated – 75%




                                                                                              11
Drivers of Interim Management Engagement

A range of organisational gaps or imperatives can drive the                                           most common reasons were: “they needed skills not present in
need for an interim manager within a company. When interim                                            the existing management team” (29%) and “they needed to
managers were asked to specify the “primary driver” for their                                         transform their organisation” (28%).
client’s hiring them for their most recent assignment, the two


     Main Reason for Engagement: Interim Manager Perspective


                                                                                           They simply needed extra management capacity for a
                                         7%         6% 3%                                  fixed-term project – 6%
                                 7%                                                        Strengthening a project team – 3%
                                                                                           They needed skills not present in the existing management
                            8%                                                             team, for a fixed-term project – 29%

                                                                    29%                    They needed to transform their organisation (change
                                                                                           management) – 28%
                           12%
                                                                                           They were recruiting for a permanent employee but
                                                                                           couldn’t find the right person fast enough – 12%
                                                                                           They had a sudden gap in their management team
                                             28%                                           (illness, severance etc) – 8%
                                                                                           Business turnaround – 7%
                                                                                           Implementing a major initiative – 7%




Asked about “all factors involved” in driving their last interim                                      Respondents also mentioned additional drivers such as “the
management engagement, responses were consistent with the                                             need for external business analysis,” “the launching of a new,
“primary driver” answers, but additional reasons included:                                            additional business service,” and “circumventing internal
“implementing a major initiative” and “business turnaround.”                                          politics.”


 All Reasons for Engagement: Interim Manager Perspective

                          100
                           90           93
                           80                            88

                           70
     Number of Mentions




                           60
                           50                                               55
                           40                                                               47

                           30                                                                                 33
                           20                                                                                                    27                 25
                                                                                                                                                                       22
                           10
                            0
                                    They needed     They needed to Implementing           Business       Strengthening        They simply        They were          They had a
                                 skills not present transform their a major initiative   turnaround      a project team      needed extra      recruiting for a   sudden gap in
                                   in the existing    organisation                                                           management          permanent             their
                                   management           (change                                                              capacity for a    employee but        management
                                 team, for a fixed- management)                                                           fixed-term project couldn’t find the     team (illness,
                                    term project                                                                                             right person fast    severance etc)
                                                                                                                                                  enough

12
Most Important Qualities in an Interim Manager

Interestingly, when asked to rank the most important qualities in
an interim manager, survey respondents favoured aspects of
“effectiveness” and people skills more highly than specific skills
or experience in the job or function. The most important
qualities highlighted were:

• Ability to work strategically but also implement (40%)
• Results-focused (39%)
• Wide range of experience (33%)
• Ability to quickly get people on side (31%)
• Independence (30%)



    Interim Manager Perspective


      Ability to work strategically but also to implement                                                                 40%
                                       Results-focused                                                                    39%
                             Wide range of experience                                                       33%
                  Ability to quickly get people on side                                                   31%
                                         Independence                                                     30%
                                       Ability to mentor                                       24%
                Not side-tracked by company politics                                     21%
             Specific skills/experience for specific job                                 20%
            Willingness to speak mind when required                                   18%
                                             Resilience                   9%


                                                            0        25             50               75             100             125
                                                                                    Number of Mentions




Other respondents enhanced the list of “people skills” by            It is clear that each interim manager is unique and brings
adding: being “good in politics,” “inspiring people by               distinct qualities to each engagement. One interim manager
recognising their personal skills,” and “coaching on all levels.”    articulated his “quick hit” list for success in the field: “(1) Get in
Another respondent noted the “willingness and ability to speak       … analyse the environment; (2) Do your thing … result-focused,
one’s mind.” The starting point of a project was also seen as        independent, resourcefulness based on skills/experience; (3)
critical, and one individual called out the “ability to quickly      Get out … so don’t get too close, either personally or socially.”
understand the business, people, policies and crucial
processes.”




                                                                                                                                          13
Interim Management in the Private Equity Realm

Interim managers have been leveraged
                                                As an interim manager, have you ever worked with
somewhat within the private equity realm,
                                                a private equity-backed business?
where short-term projects and the need for
specialised skills arise. More than a quarter
of respondents reported having worked with
a private equity-backed business, either at
the request of the business itself or at the                            19%                Yes, at the request of the
request of the private equity firm.                                                        business – 19%

                                                                                           Yes, at the request of the
                                                   69%                         12%         private equity firm – 12%

                                                                                           No – 69%




While usage of interim managers in this
                                                Do you see private equity firms making more use of interim managers
arena is just ramping up, almost half of
                                                to restructure or otherwise improve the value of the companies they
respondents indicated that they could see
                                                have invested in?
private equity firms making greater use of
interim managers to restructure or
otherwise improve the quality of the
companies in which they have invested.



                                                                                              Yes – 45%

                                                    55%                       45%             No – 55%




14
Projects that interim managers have undertaken
in conjunction with private equity firms were many
and varied:


• VP Engineering and Software Development for a messaging
  security company backed by a US-based $1.5 billion venture
  fund.

• Turnaround Operations Director for a US-based corrugated
  packaging manufacturer backed by a global holding company
  making investments in the paper sector.

• MD for an online sporting and memorabilia firm backed by
  Bridges Community Ventures, the UK’s first community
  development venture capital company.

• Interim FD for a Shetland-based organic cod farming business
  backed by European Acquisition Capital Ltd. (EAC), a €400
  million private equity fund.

• Three placements into a specialist consultancy working with a
  private equity group to dramatically improve the profitability of its
  portfolio companies. Roles included an Interim IT Director in the
  Netherlands, an Interim MD of Japan, and an Interim Head of
  Spain/Portugal to effect turnaround of the respective operations.

• MD Mentor to the young CEO of a sporting equipment company
  backed by a private investor concentrating in the retail and
  branded consumer goods sectors.

• Managing Director for a local-area venture capital fund.

• Interim Operations Director at a gaming/entertainment start-up,
  and an Interim FD for a restaurant/hospitality venture, both
  backed by the same independent private equity firm acting as
  lead equity investor in the arrangement and financing of MBIs
  and MBOs.

• Five roles for yet another private equity/acquisitions company,
  including a General Manager for a manufacturing business, a
  Business Development Director for an IT business, a CEO and a
  Divisional Business Development Director for an IT start-up, a
  Group Purchasing Director and a Group Sales Director.

• An investing MD for Europe's leading exponent of the business of
  turnaround, who recently set up their UK operation. The model is
  to take a majority holding in medium-sized companies (typically
  £50m to £100m turnover) in transitional situations.




                                                                          15
Women in Interim Management

Women have generally not been well represented in the field of
                                                                     Does your current (or if you are not employed,
interim management, with just 9% of our survey respondents
                                                                     your last) employer have a diversity policy?
being female. This compares unfavourably with the proportion
of women in permanent roles in FTSE100 companies, where
11.7% of board roles are held by women. It may be that
proactive policies to attract and hire women into senior roles,
and particularly advisory non-executive directorships, are
proving effective. By contrast, interim management
assignments tend to be sourced through informal relationships
                                                                                   No                          Yes
and via small agencies, where corporate policy may not reach.                                                  49%
                                                                                  51%
We asked a series of questions in this area to help understand
why there were not more females in the field.




Diversity Policy

According to our survey respondents, about half of employers       impact on diversity. Thus, just half of companies have a
seem to have a diversity policy in place. Opinions were divided    diversity policy in place, and even when they do, 44% of the
as to how effective such policies were, with men being more        women don’t believe it is effective.
likely than women to think that such policies had a positive



  If yes, has it been effective in producing more diversity among the senior management?

                       Male Respondents                                        Female Respondents




                                                30%                                                      25%
                   38%                                                         31%




                                     32%                                                        44%



                         Yes
                         No
                         My last or current employer did not have a diversity policy


16
Pay Equity                                                              To your knowledge, has there been equity in pay
                                                                        among the women and men in senior management
Two thirds of survey respondents felt that there was relative pay
                                                                        positions in your current or last employer?
equity, with executives in similar roles earning the same pay
whether male or female. About a third, however, said that men
earned more than women in similar roles. Some respondents
noted that men tended to “be more aggressive” and to
“negotiate their pay better.” Others noted that the problem was
not “pay disparity” but “opportunity disparity.”
                                                                                                                    31%

It should also be noted (see “Billing Rate Differential by
Gender” on page 9) that the pay gap for women interim
managers is relatively small compared to that for permanent                           66%
employment, making interim management a very attractive                                                                          1%
option for women, especially when lifestyle balance and
flexibility considerations are factored in as well.



                                                                              Men earned more than women in similar roles – 31%
                                                                              Women earned more than men in similar roles – 1%
                                                                              People in similar roles earned the same whether male
                                                                              or female – 66%


Glass Ceiling

When asked about the existence of a “glass ceiling,” women            Some respondents argued that women themselves had a role
were almost twice as likely as men to feel that it still existed.     in sustaining the glass ceiling by “cherishing it themselves.”
Numerous respondents noted the “old boy network” as a reason          Others argued that “70% of it [the glass ceiling] was in their
for the ceiling; others cited “history” and “tradition” which “must   own mind.” “Most of the time, we create our own ceiling.” “If
be broken.” One respondent remarked that: “People tend to             you believe it is there, it will be there as well.” A more positive
choose people like themselves, because then they understand           view was that while the ceiling was there, it was “gradually
each other. Men and women are different in behaviour.” There are      changing.”
mostly men at the top, so men prefer to choose men.



  Do you believe there is still a “glass ceiling” that keeps women from
  achieving the same levels of success in their corporate career as men?


                         Male Respondents                                          Female Respondents




                                                                                     No
                                                                                    30%

                    No                             Yes
                   58%                             42%
                                                                                                                 Yes
                                                                                                                 70%




                                                                                                                                        17
Women in the Workplace

Female representation in the workplace varied broadly.
Across all levels of an organisation, women were relatively
well-represented.



 What proportion of employees (at all levels) at your last or current employer is female?



                           45

                           40
                                                        19%
                                                                    18%
                           35                                                 17%
                           30
     Number of Mentions




                           25    13%         13%

                           20

                           15                                                            9%

                           10                                                                                  6%
                                                                                                     5%
                            5
                                                                                                                           0%        <1%
                            0
                                Less than   10 – 20%   21 – 30%   31 – 40%   41 – 50%   51 – 60%   61 – 70%   71 – 80%   81 – 90%   91 – 100%
                                  10%


                                                                  Proportion of All Employees Female




When focusing just on senior management, however, the
proportion of women dropped significantly.



 What proportion of the senior management team at your last or current employer is female?



                          100
                           90
                                 43%
                           80
                           70
     Number of Mentions




                           60
                           50
                           40
                           30                18%        18%

                           20
                                                                    10%
                           10                                                  6%                    <1%       <1%        <1%         0%
                            0
                                                                                         4%
                                Less than   10 – 20%   21 – 30%   31 – 40%   41 – 50%   51 – 60%   61 – 70%   71 – 80%   81 – 90%   91 – 100%
                                  10%

                                                                  Proportion of Senior Team Female



18
When looking at the board of directors, the drop in the
proportion of women was even more drastic.



 What proportion of the board of directors at your last or current employer is female?

                        180

                        160

                        140    70%
                        120
   Number of Mentions




                        100

                         80

                         60

                         40

                         20                           8%
                                           12%                      3%         3%        3%         0%         1%         <1%        <1%
                          0
                              Less than   10 – 20%   21 – 30%     31 – 40%   41 – 50%   51 – 60%   61 – 70%   71 – 80%   81 – 90%   91 – 100%
                                10%


                                                                Proportion of Board of Directors Female




                                                                                                                                                19
Interim Management as a Field for Women

A slight majority of both men and women believed that                  themselves (more than men do), they can do that easier within
(permanent) employment offered women better opportunities              an organisation” and will have “more chances to be promoted.”
for career progression. However, a significant number – 42% of         Another respondent commented that “job hopping suits an
men and 47% of women – felt that interim management offered            interim manager but is not part of the female psyche.”
the better alternative. Respondents in favor of the interim
management field as the better opportunity for women argued            Some concerns raised were around more subtle issues:
that interim management “allows one to combine professional            Women of child-bearing age may still cause concern to
career and private life” and that it “offers better life balance” as   potential employers but this cannot be stated or questioned.
well as allowing you to “be in control of a project in terms of        Equal opportunities and equality legislation has ruined the
type, size, duration, complexity, etc.”                                chance of many women being employed, unless they can
                                                                       assure employers they are safe to recruit. And finally, one
Those in favour of employment as the better alternative pointed        respondent wrote: “Interim management is about perception
out that “permanent employment gives women the opportunity             and established experience rather than ability to excel. Many
to network internally” and that because “women have to prove           women do not get the chance to meet the informal criteria.”



  In general, do you think that employment, or an independent career such as
  interim management, offers women the best opportunities for career progression?


                         Male Respondents                                          Female Respondents


                      Interim                                                                       Employment
                    Management                                                                         53%
                        42%




                                                                                  Interim
                                                                                Management
                                 Employment                                         47%
                                    58%




“Interim management is about
perception and established experience
rather than ability to excel. Many
women do not get the chance to meet
the informal criteria.”




20
Attributes for a Female Interim Manager

When asked what attributes would help women be successful                 irrelevant for success in interim management; that “man and
in the field of interim management, there was strong agreement            woman are equal in this domain.”
among both men and women that top skills included: good
communication skills; sensitivity to the nuances of different             Does it matter whether someone is male or female? This kind of
corporate environments; and the ability to build good                     question creates a prejudice of its own. Women do not need
relationships. Neither men nor women felt that “ruthlessless”             any additional skills to men to be successful in any field. Being
was necessary for success.                                                an interim manager is not a gender issue – a good woman
                                                                          interim manager will be as good – if not better – than a man
A number of respondents were adamant that gender was                      when working within an organisation.



  What attributes might help women be good interim managers? (Tick as many as apply)


                              Good communication skills                                                                          71%
 Sensitivity to the nuances of different corporate cultures                                                        51%
                        Ability to build good relationships                                                   47%
                                   Good networking skills                                                44%
                                             Determination                                               44%
                                    Being very organised                                               40%
                                           Persuasiveness                                         35%
                                     Ability to quickly fit in                                   33%
                                         Resourcefulness                                  25%
                                             Ruthlessness                 9%


                                                                 0        25         50           75          100          125   150
                                                                                            Number of Mentions
   Male Respondents


  What attributes might help women be good interim managers? (Tick as many as apply)


                              Good communication skills                                                                   75%
 Sensitivity to the nuances of different corporate cultures                                                    65%
                        Ability to build good relationships                                                  60%
                                   Good networking skills                                               55%
                                    Being very organised                                          45%
                                     Ability to quickly fit in                                    45%
                                             Determination                                        45%
                                         Resourcefulness                                   35%
                                           Persuasiveness                          25%
                                             Ruthlessness            0%


                                                                 0             5                  10                 15           20
                                                                                            Number of Mentions
   Female Respondents

                                                                                                                                        21
Rationale for Fewer Female Interim Managers

Numerous reasons were cited as to why more women were not                Other reasons cited were that “women are perceived as less
more active in the field of interim management. Both male and            competent for interim management than men” and that
female respondents believed it was due to the “uncertainty of            “potential clients prefer men.” More personal reasons included:
an interim career”; the “lack of flexibility in family life” and that    “the need for stability”, personal choice”, and that an interim
women “don’t value themselves highly enough.”                            manager had to be “fully available when required which was
                                                                         not always compatible with the life of a young woman.”



     Why do you think there are so few women in interim management?


           Don’t like the uncertainty of an interim career                                                                         39%
                   Lack the flexibility in their family lives                                                           32%
                 Don’t value themselves highly enough                                                                 30%
       Prefer being a permanent part of an organisation                                                          28%
        Women don’t get enough executive experience                                                      25%
                                      Lack of confidence                                               23%
                   Lack of awareness of it as an option                                          20%
       Not so prepared to compromise on quality of life                          12%
                                 Not competitive enough                     8%
                                       Not tough enough                   7%
                                    Not good networkers             2%

                                                                0          20               40                   60               80
                                                                                        Number of Mentions
     Male Respondents



     Why do you think there are so few women in interim management?


                 Don’t value themselves highly enough                                                                       50%
           Don’t like the uncertainty of an interim career                                                                  50%
                   Lack the flexibility in their family lives                                            45%
       Prefer being a permanent part of an organisation                                            35%
                                      Lack of confidence                                               30%
       Not so prepared to compromise on quality of life                               20%
                                    Not good networkers                               20%
                   Lack of awareness of it as an option                               20%
        Women don’t get enough executive experience                                   20%
                                       Not tough enough                         15%
                                 Not competitive enough                         15%

                                                                0                 4                          8                    12
                                                                                        Number of Mentions
     Female Respondents



22
Opportunity Amidst the Economic Crisis

When asked about the current economic crisis, forty percent of
respondents believed that it offered opportunities of particular
value to female managers and executives. Most felt that the
crisis was “gender neutral,” however, and offered the same
lessons and opportunities for all.



  In your view, does the current economic crisis
  offer opportunities that are of particular value to
  female managers and executives?




               No                           Yes
              60%                           40%




                                                                   23
Conclusion

     We are grateful to the 262 senior executives in the Netherlands who participated in our online survey
     September 2009. With more than 50 multiple-choice and ranking questions, and the opportunity to
     provide detailed comments (which many did), this was no small ask.

     In the figures published in this report, we see clearly the impact of the global economic crisis. A majority
     of interim managers today (almost 60%) report being generally less busy than a year ago. A trend we
     have seen in our UK business between our 2004 and 2007 regarding openness to permanent employment
     has continued to show more interim managers who, for the right role, would return to permanent
     employment. In the UK, 33% of interim managers in 2004, 57% of interim managers in 2007 and now 70%
     of interim managers in 2009 would accept the right permanent role. In the Netherlands, in our first year
     collecting data, the figure is 78%. Looking at it another way, only 22% of interim managers consider
     themselves exclusively and permanently so. Much of this desire for permanence and stability is no doubt
     due to the current climate; however, as the trend was evident two years ago, before the crisis hit, we
     believe that senior executives are generally viewing their careers in a more fluid and flexible way, moving
     from contract to permanent work easily and willingly. It may also be that our sample contains many interim
     managers “pressed into” interim management involuntarily, via being laid off from their employed role.

     Daily rates have held up, with 65% of Netherlands interim managers surveyed saying their daily rate was
     “about the same” as last year.

     As regards women in senior executive roles and specifically women in interim management, the data
     turned up some very interesting conclusions. Women were more likely (70% of women versus 42% of
     men) to perceive a “glass ceiling” preventing women’s career advancement, and in fact the distribution of
     women in all roles versus senior management and board-level roles bears this out. Women were
     somewhat more likely than men to perceive that interim management offered women more opportunities.

     The reasons clients engage interim managers in the Netherlands are very similar to what we have
     observed elsewhere in the world: Business transformation, change management, turnaround, needing
     skills not present in the organisation, and needing extra management capacity. The positive qualities of
     interim managers are also perceived similarly across country boundaries, and include interim managers’
     results focus, appropriate skills, ability to quickly get staff on side, independence, wide range of
     experience, and ability to think strategically yet also implement.

     We hope you have enjoyed reading Interim Management Trend Update. If your company or organisation
     needs skills, management bandwidth, or to implement a turnaround, major project or corporate
     restructure, call me today on + 3 1 ( 0 ) 2 0 3 0 1 2 1 5 9 us to discuss how an interim executive from
     Executives Online can help.




     Interim managers have become more
     diverse, with more women, and with a
     wider distribution of ages and lengths
     of experience.




24
About Executives Online

We offer a unique, full-service process which is a balanced blend
of technology and personal service.

Executives Online delivers fast-track executive resourcing – interim management, project
management, and permanent executive recruitment – leveraging our 80,000-strong Talent
Bank of senior executives. We source talent globally, via the Talent Bank which is built and
drawn upon by each of our growing network of offices around the world.


We offer a unique, full-service process which is a balanced blend of technology and
personal service. Our approach attracts both the best candidates and the most
challenging opportunities, and enables us to rapidly and effectively match them together
in successful placements.




                                                                                               25
The Netherlands                   Scotland                          Germany
Atrium gebouw                     Dalgety Bay Business Centre       Dillenburger Strasse
Strawinskylaan 3051               Ridgeway, Dalgety Bay, KY11 9JN   51105 Cologne
1077 ZX Amsterdam                 T: +44 (0) 1383 828920            T: +49 (0) 221-460 234 17
T: +31 (0)20 3012159
                                  Midlands                          Italy
South of England                  West Walk Building                Via Senigallia 18/2 Torre A
Staple House, 3rd Floor           110 Regent Road                   20161 Milan
Staple Gardens, Winchester        Leicester, LE1 7LT                T: +39 (0) 2 6467 2632
Hampshire, SO23 8SR               T: +44 (0) 845 328 2370
T: +44 (0) 1962 893 300                                             Australia
                                  East of England                   Suite 238, 117 Old Pittwater Road
London                            Suite 283, 17 Holywell Hill       Brookvale, NSW 2100
Capital Tower, 91 Waterloo Road   St Albans, AL1 1DT                T: +61 (02) 9907 1222
London, SE1 8RT                   T: +44 (0) 845 326 8145
T: +44 (0) 845 053 1188                                             France
                                  South West and Wales              17 rue du Maréchal Lyautey
North of England                  1 Friary, Temple Quay             95620 Parmain
2 Victoria Street, Wetherby       Bristol, BS1 6EA                  T: +33 (0)1 34 73 10 72
West Yorkshire, LS22 6RE          T: +44 (0) 117 344 5128
T: +44 (0) 1937 581900                                              South Africa
                                  Ireland                           West Block, Dunkeld Crescent
North East of England             1st Floor, 43 Main Street         Corner Jan Smuts and Albury Rd
Rotterdam House                   Rathfarnham, Dublin, D14          Dunkeld West 2196
Quayside                          T: +353 (1) 492 5000              T: +27 (0)11 2432801
Newcastle upon Tyne, NE1 3DY
T: +44 (0) 191 2064113            Belgium
                                  Gentsesteenweg 1050, bus 12
North West of England             1082 Brussels
82 King Street                    T: +32 (0) 475 580 333
Manchester, M2 4WQ
T: +44 (0) 161 935 8246

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Interim Management Trends Report Netherlands

  • 1. Interim Management Trend Update Research and Analysis on the Netherlands Market for Interim Management and Other Fast-Track Executive Resourcing Netherlands Survey Report
  • 2. Contents 1 Introduction 2 Research Objectives and Methodology 3 Current Trends 5 Interim Manager Profile 9 Interim Management Billing Rates 10 Sourcing Interim Management Assignments 12 Drivers of Interim Management Engagement 13 Most Important Qualities in an Interim Manager 14 Interim Managers in the Private Equity Realm 16 Women in Interim Management 24 Conclusion
  • 3. Introduction Executives Online offers a unique, fast-track approach to executive resourcing and has been a pioneer in the field of interim management practice and recruitment. With a nine-year history of matching companies and executive talent, we have been both trendsetters and keen observers of the growth in this area. By interim management we mean the strengthening of a company’s management team by the addition – on a fixed-term contract – of one or more highly experienced senior executives. The pressure on companies today to deliver results quickly and at reduced cost has only increased amidst the challenges of the global economy. Recent economic conditions have brought about headcount reductions, hiring freezes, outsourcing, and reorganisations that simply exacerbate existing pressures. Optimal resourcing is always a corporate priority, but perhaps never more so than today. In our business, we have seen the number of interim managers registered with us grow from a few thousand in the UK in 2000 to over 80,000 globally today. We observe significant differences in the recognition and adoption of interim management by country, and even by region within each country. The Netherlands has long been regarded as the “cradle of interim management”, where it emerged in the 1970s as a more flexible way of engaging management professionals. Belgium is an equally mature market for interim management, as is the UK. In Southern European territories and Asia Pacific, the concept is at an earlier stage of development that shows much promise. Variations in terminology, contract structure and local employment law make global interim management a diverse and compelling field for study. We’ve seen tremendous growth in this area of our business, and we expect that to continue as the value of interim management continues to be recognised by more companies and incorporated as part of their resourcing strategies. Reliable information about growth and trends in the field of interim management has not always been readily available. Back in 2000, Executives Online worked in conjunction with the Institute of Management Consultancy to commission a study with Sambrook Research International on the interim management market in the United Kingdom. The Sambrook Report on UK Interim Management was published in 2000. In 2004 and 2006 respectively, Executives Online published In the Interim and the first edition of The Interim Report. In 2007 we updated The Interim Report with new information. In 2009 Executives Online now publishes multiple regional and international editions of this report, drawing on a global market research exercise involving thousands of senior executives: 262 of these were in the Netherlands, 57 in Belgium, and a comparably lower number in Luxembourg. We intend to use these new reports as benchmarks against which future research can be compared. We are excited to share this new information with you, and hope that it will address questions you might have regardless of your perspective: as an interim manager yourself, as a company that has found great value in interim management, or as a prospective client company that may not realise how valuable interim management could be as part of your resourcing strategy. Edwin Glas Managing Director, Executives Online 1
  • 4. Research Objectives and Methodology Objectives Defining Interim Management Our research aimed to answer a variety of questions about For the purposes of this report we define interim management interim management: as being: The provision of a mature, professional manager, well qualified by relevant practical experience, either to fill a • What is the typical profile of an interim manager in terms gap in permanent staffing or to deliver a specific business of gender, age, background, experience, and how they result within a limited time period. source assignments? • What business sectors are more likely to use interim managers? Survey Methodology and Timings • How has the global recession affected the utilisation and pay rates of interim managers? Our survey was conducted online in September 2009, via • What qualities are most important in an interim an online questionnaire to 262 Netherlands-based interim manager, both from the perspective of interim managers managers and the clients who employ them. themselves and also from a client perspective? • What needs drive companies to seek interim management solutions? • What is the role of interim management in the private equity arena? • What trends are impacting the role of women in interim management? The global economic recession that began over a year prior does seem to be impacting utilisation rates among interim managers. 2
  • 5. Current Trends Employment Status Current Status At the time of our survey, just over a fifth of respondents were working in full-time assignments and another 9% were working full-time via a combination of part-time 9% assignments. Another quarter was engaged part-time. Almost half were not on assignment. 25% The Netherlands figures mirror the utilisation rates we are 45% currently seeing elsewhere in our business in more mature markets for interim management. For full-time assignments, the Netherland trails other markets slightly, with Italy seeing 31% in full-time assignments, France 28% and the United 21% Kingdom 27%. On balance, the Netherlands is seeing a somewhat higher number of part-time engagements (34% in total) vs. France at 20%, and Ireland and the United Kingdom at 25% each. Forty-five percent of the Not on assignment – 45% Netherlands survey respondents were currently “not on Full-time assignment – 21% Part-time assignment – 25% assignment,” which compares favourably to Ireland at Full-time, on combination of part-time assignments – 9% 55%, France at 52%, and the United Kingdom at 48%. The global economic recession that began over a year prior does seem to be impacting utilisation rates among interim managers. Compared to their counterparts in other In terms of demand for your services, are you parts of Europe, Netherlands interim managers are feeling finding yourself: themselves relatively less busy. Almost sixty percent of survey respondents indicated that they were less busy than they’d been a year ago, compared to just 50% in Ireland and the United Kingdom, 47% in France, and 44% in Italy. A quarter said that they were “about as busy as a year 25% ago”, which was less than the comparable figure for other countries: Ireland at 36%, Italy at 35%, the United Kingdom at 32%, and France at 31%. Finally, a smaller percentage 59% of Netherlands respondents indicated that they were “more busy than a year ago”: 16% compared to 22% in France, 16% 21% in Italy, and 18% in the United Kingdom. Netherlands respondents who indicated that they were “more busy” than a year ago tended to be working in business services, government/public sector/not-for-profit, and healthcare. Less busy than a year ago – 59% More busy than a year ago – 16% About as busy as a year ago – 25% 3
  • 6. Length of Assignment Interim management assignments can run the gamut from short-term projects to longer-term initiatives. As the survey results show, there is a spread, with nearly a quarter of projects extending longer than a year. The same pattern is observed elsewhere in Europe, with more assignments being either short (under 6 months) or long (over 12 months). Length of Last Assignment? 40 35 22% 22% 30 20% 20% Number of Responses 25 17% 20 15 10 5 0 0 – 3 months 3 – 6 months 6 – 9 months 9 – 12 months 12 months + 4
  • 7. Interim Manager Profile Gender Age The interim management field draws a disproportionate Interim managers tend to be seasoned executives, with just under number of men, with fully 91% of our survey respondents being a quarter of respondents aged 50 or more, and an average age male. The proportion of women is quite a bit lower in the of 48. Over half of respondents fell into the 40-49 age range, Netherlands than in other countries, including the United and just 21% were under the age of 40. Netherlands interim Kingdom and Italy where 18% and 12% of interim managers managers by and large are younger than their counterparts responding to the survey were female. elsewhere in Europe. In the UK, for example, 47% of interims are aged 50-59, 31% are aged 40-49, and only 7% aged 30-39. Gender Age 20–29 1% Female 30–39 60–69 9% 20% 11% 50–59 13% 40–49 Male 91% 55% Average age: 48 yrs Years of Experience Years Experience Interim managers bring years of experience to their assignments; the average respondent had nearly six years of 8% 6% Years No. of 5% Experience Respondents experience as an interim manager, and this figure does not include additional years of 20+ 10 10% experience as an employed executive. 15–19 8 Almost half of survey respondents had 10-14 16 more than five years of experience as 30% 5-9 38 interim managers. Reflecting the growth 3-4 26 trend in the field of interim management, 24% 1-2 46 however, another third of respondents have Less than 1 12 1-2 years of experience, having broken 17% into the field relatively recently. 5
  • 8. Days Billed Over Last Time as Interim Manager vs. Days Billed Year 200 There is a slight correlation between years of experience as 180 179 an interim manager and the 160 Days billed over past 12 months number of days billed over the 156 154 140 146 152 past year. Interim managers with 120 127 more than 15 years’ experience tended to bill more hours on 100 average. Other European 80 countries also show new interim 60 managers to be less successful 40 at keeping themselves well- utilised. 20 31 0 20+ 15–19 10–14 5–9 3–4 1–2 Less than years years years years years years 1 year Years as Interim Manager Company Size Company Size Interim managers work in companies of varying sizes; the need for interim services seems 16% 19% fairly consistent across the board. 9% 6% 20% 30% More than 5,000 employees – 16% 2,500 to 5,000 employees – 9% 250 to 2,500 employees – 30% 50 to 250 employees – 20% Fewer than 50 employees – 6% I have worked in equal measure for companies of all sizes – 19% 6
  • 9. Opportunity by Sector Interim management opportunities do vary across sectors, with the most opportunity growth currently in the areas of healthcare, government/public sector/not-for-profit, education, business services, and consumer goods/retail. Opportunity by Sector Less opportunity now Same as before More opportunity now N/A Healthcare Govt/Public Sector/Not-for-profit Education Business Services Consumer Goods/Retail Financial Services Pharmaceutical/Sciences Manufacturing/Engineering Technology/IT/Telecom Oil/Gas/Petroleum/Chemical Automotive Transport Media/Entertainment/Advertising Property/Construction Agricultural Leisure/Travel/Hospitality 0% 20% 40% 60% 80% 100% Further reflecting the recession’s impact, almost 60% of survey respondents indicated that they were less busy than they’d been a year ago. 7
  • 10. Current Economic Crisis Has the current economic crisis been a factor in your beginning to work as an interim manager? The current economic crisis does seem to have had influence in driving some to enter the field of interim management. For one third of survey respondents, it was a factor, with some respondents noting that “more opportunities were available through interim assignments.” Other respondents bemoaned the Yes lack of hiring, noting that it was “extremely difficult” to land 33% contracts in the current economic environment. “It was my only option after I lost my job,” wrote one respondent. No 67% For others, however, the decision to be in interim management was only “coincident” with the economic crisis; they called it a “long-term,” “well thought-out,” and “personal” choice. Respondents cited a variety of reasons for choosing interim management: “the flexibility,” “being on my own,” “gaining experience in a variety of different organisations,” and “diversity and challenge.” Desire for Permanent Employment Would you apply for a permanent job given the opportunity? Mirroring trends we see elsewhere in the world, almost one- quarter of interim managers are committed to the field of interim management and would choose to continue in that realm. The remainder said they could be interested in permanent employment if the right opportunity presented itself. 22% 78% Male 91% No, I am 100% committed to interim management – 22% Yes, I could be interested if it was the right opportunity – 78% The current economic crisis does seem to have had influence in driving some to enter the field of interim management. 8
  • 11. Interim Management Billing Rates Changes in Billing Rate Change in Daily Rate? Fully 65% of survey respondents indicated that their billing rates have remained largely the same compared to last year, on a par with the United Kingdom at 64%, but higher than 8% Ireland at 55%, Italy at 50%, and France at just 27%. However, 27% just 8% of Netherland respondents said that they were billing at a higher rate, compared with 20% of respondents in France, 14% in the United Kingdom and 11% in Italy. On balance, however, only 27% of Netherlands respondents were facing lower billing rates, compared with 38% in Ireland, 39% in Italy, and 53% in France. 65% More – 8% About the same – 65% Less – 27% Billing Rate Differential by Gender Women vs. Men There was some billing rate differential by gender (among 1000 those who indicated gender), with men earning an average of 900 7% more than women. This compares very favourably with the Average Daily Billing Rate (€) 800 €927 pay gap for permanent employment. According to European Commission figures published earlier this year, the gender pay 700 €867 gap stands at 23.6% in the Netherlands and at 17.4% Europe- 600 wide. In the United Kingdom, a market where Executives Online 500 has extensive experience in interim management and where it is well-established as a way of securing executive talent, 400 interim day rates for men and women are only 4% apart, 300 compared to an permanent employment gender pay gap of 200 21.1%. This relative gender pay equity, combined with the flexibility and control over working life that interim management 100 offers, seem to indicate that the field may be a more attractive 0 Men Women option for women than permanent employment. Billing rates for the Netherlands compare very favorably to those in other countries. The rate of €927 for men is higher than that in Italy (€616), Ireland (€739), and France (€902), and the women’s rate of €867 is similarly higher than Italy (€759), Ireland (€704), and France (€858). 9
  • 12. Sourcing Interim Management Assignments Almost three quarters of the interim managers surveyed had Source of Last Assignment sourced their most recent project on their own, with just over a quarter having made use of interim or recruitment agencies. This agency share is similar to what we observe elsewhere in Europe, where two thirds to three quarters of assignments are found directly. 27% 73% Via an interim or recruitment agency – 27% Generated the opportunity myself – 73% Role of Agencies There is variance across the spectrum of interim managers, but the majority source a good percentage of their own projects, with over half sourcing all of their own projects. How Interim Managers Source Their Work 100% via agencies 8% 90% via agencies /10% self-generated 2% 80% via agencies /20% self-generated 4% 70% via agencies /30% self-generated 3% 60% via agencies /40% self-generated 1% 50% via agencies /50% self-generated 11% 40% via agencies /60% self-generated 1% 30% via agencies /70% self-generated 6% 20% via agencies /80% self-generated 6% 10% via agencies /90% self-generated 5% 100% self-generated 53% 0 10 20 30 40 50 60 70 80 90 Number of Responses 10
  • 13. Agency Share Agency Share Agencies had a role in sourcing one quarter of all assignments among survey respondents. Interim managers find work via two main channels: their own business development and networking, and recruitment agencies. We asked our registered interim executives what proportion of 25% their work came to them via recruitment or interim management agencies, and what proportion they generated themselves. Their answers show that agencies had a role in sourcing one quarter of all assignments among survey respondents. 75% This agency share is similar to what we observe elsewhere in Europe, where two thirds to three quarters of Agency – 25% assignments are found directly. Self-Generated – 75% 11
  • 14. Drivers of Interim Management Engagement A range of organisational gaps or imperatives can drive the most common reasons were: “they needed skills not present in need for an interim manager within a company. When interim the existing management team” (29%) and “they needed to managers were asked to specify the “primary driver” for their transform their organisation” (28%). client’s hiring them for their most recent assignment, the two Main Reason for Engagement: Interim Manager Perspective They simply needed extra management capacity for a 7% 6% 3% fixed-term project – 6% 7% Strengthening a project team – 3% They needed skills not present in the existing management 8% team, for a fixed-term project – 29% 29% They needed to transform their organisation (change management) – 28% 12% They were recruiting for a permanent employee but couldn’t find the right person fast enough – 12% They had a sudden gap in their management team 28% (illness, severance etc) – 8% Business turnaround – 7% Implementing a major initiative – 7% Asked about “all factors involved” in driving their last interim Respondents also mentioned additional drivers such as “the management engagement, responses were consistent with the need for external business analysis,” “the launching of a new, “primary driver” answers, but additional reasons included: additional business service,” and “circumventing internal “implementing a major initiative” and “business turnaround.” politics.” All Reasons for Engagement: Interim Manager Perspective 100 90 93 80 88 70 Number of Mentions 60 50 55 40 47 30 33 20 27 25 22 10 0 They needed They needed to Implementing Business Strengthening They simply They were They had a skills not present transform their a major initiative turnaround a project team needed extra recruiting for a sudden gap in in the existing organisation management permanent their management (change capacity for a employee but management team, for a fixed- management) fixed-term project couldn’t find the team (illness, term project right person fast severance etc) enough 12
  • 15. Most Important Qualities in an Interim Manager Interestingly, when asked to rank the most important qualities in an interim manager, survey respondents favoured aspects of “effectiveness” and people skills more highly than specific skills or experience in the job or function. The most important qualities highlighted were: • Ability to work strategically but also implement (40%) • Results-focused (39%) • Wide range of experience (33%) • Ability to quickly get people on side (31%) • Independence (30%) Interim Manager Perspective Ability to work strategically but also to implement 40% Results-focused 39% Wide range of experience 33% Ability to quickly get people on side 31% Independence 30% Ability to mentor 24% Not side-tracked by company politics 21% Specific skills/experience for specific job 20% Willingness to speak mind when required 18% Resilience 9% 0 25 50 75 100 125 Number of Mentions Other respondents enhanced the list of “people skills” by It is clear that each interim manager is unique and brings adding: being “good in politics,” “inspiring people by distinct qualities to each engagement. One interim manager recognising their personal skills,” and “coaching on all levels.” articulated his “quick hit” list for success in the field: “(1) Get in Another respondent noted the “willingness and ability to speak … analyse the environment; (2) Do your thing … result-focused, one’s mind.” The starting point of a project was also seen as independent, resourcefulness based on skills/experience; (3) critical, and one individual called out the “ability to quickly Get out … so don’t get too close, either personally or socially.” understand the business, people, policies and crucial processes.” 13
  • 16. Interim Management in the Private Equity Realm Interim managers have been leveraged As an interim manager, have you ever worked with somewhat within the private equity realm, a private equity-backed business? where short-term projects and the need for specialised skills arise. More than a quarter of respondents reported having worked with a private equity-backed business, either at the request of the business itself or at the 19% Yes, at the request of the request of the private equity firm. business – 19% Yes, at the request of the 69% 12% private equity firm – 12% No – 69% While usage of interim managers in this Do you see private equity firms making more use of interim managers arena is just ramping up, almost half of to restructure or otherwise improve the value of the companies they respondents indicated that they could see have invested in? private equity firms making greater use of interim managers to restructure or otherwise improve the quality of the companies in which they have invested. Yes – 45% 55% 45% No – 55% 14
  • 17. Projects that interim managers have undertaken in conjunction with private equity firms were many and varied: • VP Engineering and Software Development for a messaging security company backed by a US-based $1.5 billion venture fund. • Turnaround Operations Director for a US-based corrugated packaging manufacturer backed by a global holding company making investments in the paper sector. • MD for an online sporting and memorabilia firm backed by Bridges Community Ventures, the UK’s first community development venture capital company. • Interim FD for a Shetland-based organic cod farming business backed by European Acquisition Capital Ltd. (EAC), a €400 million private equity fund. • Three placements into a specialist consultancy working with a private equity group to dramatically improve the profitability of its portfolio companies. Roles included an Interim IT Director in the Netherlands, an Interim MD of Japan, and an Interim Head of Spain/Portugal to effect turnaround of the respective operations. • MD Mentor to the young CEO of a sporting equipment company backed by a private investor concentrating in the retail and branded consumer goods sectors. • Managing Director for a local-area venture capital fund. • Interim Operations Director at a gaming/entertainment start-up, and an Interim FD for a restaurant/hospitality venture, both backed by the same independent private equity firm acting as lead equity investor in the arrangement and financing of MBIs and MBOs. • Five roles for yet another private equity/acquisitions company, including a General Manager for a manufacturing business, a Business Development Director for an IT business, a CEO and a Divisional Business Development Director for an IT start-up, a Group Purchasing Director and a Group Sales Director. • An investing MD for Europe's leading exponent of the business of turnaround, who recently set up their UK operation. The model is to take a majority holding in medium-sized companies (typically £50m to £100m turnover) in transitional situations. 15
  • 18. Women in Interim Management Women have generally not been well represented in the field of Does your current (or if you are not employed, interim management, with just 9% of our survey respondents your last) employer have a diversity policy? being female. This compares unfavourably with the proportion of women in permanent roles in FTSE100 companies, where 11.7% of board roles are held by women. It may be that proactive policies to attract and hire women into senior roles, and particularly advisory non-executive directorships, are proving effective. By contrast, interim management assignments tend to be sourced through informal relationships No Yes and via small agencies, where corporate policy may not reach. 49% 51% We asked a series of questions in this area to help understand why there were not more females in the field. Diversity Policy According to our survey respondents, about half of employers impact on diversity. Thus, just half of companies have a seem to have a diversity policy in place. Opinions were divided diversity policy in place, and even when they do, 44% of the as to how effective such policies were, with men being more women don’t believe it is effective. likely than women to think that such policies had a positive If yes, has it been effective in producing more diversity among the senior management? Male Respondents Female Respondents 30% 25% 38% 31% 32% 44% Yes No My last or current employer did not have a diversity policy 16
  • 19. Pay Equity To your knowledge, has there been equity in pay among the women and men in senior management Two thirds of survey respondents felt that there was relative pay positions in your current or last employer? equity, with executives in similar roles earning the same pay whether male or female. About a third, however, said that men earned more than women in similar roles. Some respondents noted that men tended to “be more aggressive” and to “negotiate their pay better.” Others noted that the problem was not “pay disparity” but “opportunity disparity.” 31% It should also be noted (see “Billing Rate Differential by Gender” on page 9) that the pay gap for women interim managers is relatively small compared to that for permanent 66% employment, making interim management a very attractive 1% option for women, especially when lifestyle balance and flexibility considerations are factored in as well. Men earned more than women in similar roles – 31% Women earned more than men in similar roles – 1% People in similar roles earned the same whether male or female – 66% Glass Ceiling When asked about the existence of a “glass ceiling,” women Some respondents argued that women themselves had a role were almost twice as likely as men to feel that it still existed. in sustaining the glass ceiling by “cherishing it themselves.” Numerous respondents noted the “old boy network” as a reason Others argued that “70% of it [the glass ceiling] was in their for the ceiling; others cited “history” and “tradition” which “must own mind.” “Most of the time, we create our own ceiling.” “If be broken.” One respondent remarked that: “People tend to you believe it is there, it will be there as well.” A more positive choose people like themselves, because then they understand view was that while the ceiling was there, it was “gradually each other. Men and women are different in behaviour.” There are changing.” mostly men at the top, so men prefer to choose men. Do you believe there is still a “glass ceiling” that keeps women from achieving the same levels of success in their corporate career as men? Male Respondents Female Respondents No 30% No Yes 58% 42% Yes 70% 17
  • 20. Women in the Workplace Female representation in the workplace varied broadly. Across all levels of an organisation, women were relatively well-represented. What proportion of employees (at all levels) at your last or current employer is female? 45 40 19% 18% 35 17% 30 Number of Mentions 25 13% 13% 20 15 9% 10 6% 5% 5 0% <1% 0 Less than 10 – 20% 21 – 30% 31 – 40% 41 – 50% 51 – 60% 61 – 70% 71 – 80% 81 – 90% 91 – 100% 10% Proportion of All Employees Female When focusing just on senior management, however, the proportion of women dropped significantly. What proportion of the senior management team at your last or current employer is female? 100 90 43% 80 70 Number of Mentions 60 50 40 30 18% 18% 20 10% 10 6% <1% <1% <1% 0% 0 4% Less than 10 – 20% 21 – 30% 31 – 40% 41 – 50% 51 – 60% 61 – 70% 71 – 80% 81 – 90% 91 – 100% 10% Proportion of Senior Team Female 18
  • 21. When looking at the board of directors, the drop in the proportion of women was even more drastic. What proportion of the board of directors at your last or current employer is female? 180 160 140 70% 120 Number of Mentions 100 80 60 40 20 8% 12% 3% 3% 3% 0% 1% <1% <1% 0 Less than 10 – 20% 21 – 30% 31 – 40% 41 – 50% 51 – 60% 61 – 70% 71 – 80% 81 – 90% 91 – 100% 10% Proportion of Board of Directors Female 19
  • 22. Interim Management as a Field for Women A slight majority of both men and women believed that themselves (more than men do), they can do that easier within (permanent) employment offered women better opportunities an organisation” and will have “more chances to be promoted.” for career progression. However, a significant number – 42% of Another respondent commented that “job hopping suits an men and 47% of women – felt that interim management offered interim manager but is not part of the female psyche.” the better alternative. Respondents in favor of the interim management field as the better opportunity for women argued Some concerns raised were around more subtle issues: that interim management “allows one to combine professional Women of child-bearing age may still cause concern to career and private life” and that it “offers better life balance” as potential employers but this cannot be stated or questioned. well as allowing you to “be in control of a project in terms of Equal opportunities and equality legislation has ruined the type, size, duration, complexity, etc.” chance of many women being employed, unless they can assure employers they are safe to recruit. And finally, one Those in favour of employment as the better alternative pointed respondent wrote: “Interim management is about perception out that “permanent employment gives women the opportunity and established experience rather than ability to excel. Many to network internally” and that because “women have to prove women do not get the chance to meet the informal criteria.” In general, do you think that employment, or an independent career such as interim management, offers women the best opportunities for career progression? Male Respondents Female Respondents Interim Employment Management 53% 42% Interim Management Employment 47% 58% “Interim management is about perception and established experience rather than ability to excel. Many women do not get the chance to meet the informal criteria.” 20
  • 23. Attributes for a Female Interim Manager When asked what attributes would help women be successful irrelevant for success in interim management; that “man and in the field of interim management, there was strong agreement woman are equal in this domain.” among both men and women that top skills included: good communication skills; sensitivity to the nuances of different Does it matter whether someone is male or female? This kind of corporate environments; and the ability to build good question creates a prejudice of its own. Women do not need relationships. Neither men nor women felt that “ruthlessless” any additional skills to men to be successful in any field. Being was necessary for success. an interim manager is not a gender issue – a good woman interim manager will be as good – if not better – than a man A number of respondents were adamant that gender was when working within an organisation. What attributes might help women be good interim managers? (Tick as many as apply) Good communication skills 71% Sensitivity to the nuances of different corporate cultures 51% Ability to build good relationships 47% Good networking skills 44% Determination 44% Being very organised 40% Persuasiveness 35% Ability to quickly fit in 33% Resourcefulness 25% Ruthlessness 9% 0 25 50 75 100 125 150 Number of Mentions Male Respondents What attributes might help women be good interim managers? (Tick as many as apply) Good communication skills 75% Sensitivity to the nuances of different corporate cultures 65% Ability to build good relationships 60% Good networking skills 55% Being very organised 45% Ability to quickly fit in 45% Determination 45% Resourcefulness 35% Persuasiveness 25% Ruthlessness 0% 0 5 10 15 20 Number of Mentions Female Respondents 21
  • 24. Rationale for Fewer Female Interim Managers Numerous reasons were cited as to why more women were not Other reasons cited were that “women are perceived as less more active in the field of interim management. Both male and competent for interim management than men” and that female respondents believed it was due to the “uncertainty of “potential clients prefer men.” More personal reasons included: an interim career”; the “lack of flexibility in family life” and that “the need for stability”, personal choice”, and that an interim women “don’t value themselves highly enough.” manager had to be “fully available when required which was not always compatible with the life of a young woman.” Why do you think there are so few women in interim management? Don’t like the uncertainty of an interim career 39% Lack the flexibility in their family lives 32% Don’t value themselves highly enough 30% Prefer being a permanent part of an organisation 28% Women don’t get enough executive experience 25% Lack of confidence 23% Lack of awareness of it as an option 20% Not so prepared to compromise on quality of life 12% Not competitive enough 8% Not tough enough 7% Not good networkers 2% 0 20 40 60 80 Number of Mentions Male Respondents Why do you think there are so few women in interim management? Don’t value themselves highly enough 50% Don’t like the uncertainty of an interim career 50% Lack the flexibility in their family lives 45% Prefer being a permanent part of an organisation 35% Lack of confidence 30% Not so prepared to compromise on quality of life 20% Not good networkers 20% Lack of awareness of it as an option 20% Women don’t get enough executive experience 20% Not tough enough 15% Not competitive enough 15% 0 4 8 12 Number of Mentions Female Respondents 22
  • 25. Opportunity Amidst the Economic Crisis When asked about the current economic crisis, forty percent of respondents believed that it offered opportunities of particular value to female managers and executives. Most felt that the crisis was “gender neutral,” however, and offered the same lessons and opportunities for all. In your view, does the current economic crisis offer opportunities that are of particular value to female managers and executives? No Yes 60% 40% 23
  • 26. Conclusion We are grateful to the 262 senior executives in the Netherlands who participated in our online survey September 2009. With more than 50 multiple-choice and ranking questions, and the opportunity to provide detailed comments (which many did), this was no small ask. In the figures published in this report, we see clearly the impact of the global economic crisis. A majority of interim managers today (almost 60%) report being generally less busy than a year ago. A trend we have seen in our UK business between our 2004 and 2007 regarding openness to permanent employment has continued to show more interim managers who, for the right role, would return to permanent employment. In the UK, 33% of interim managers in 2004, 57% of interim managers in 2007 and now 70% of interim managers in 2009 would accept the right permanent role. In the Netherlands, in our first year collecting data, the figure is 78%. Looking at it another way, only 22% of interim managers consider themselves exclusively and permanently so. Much of this desire for permanence and stability is no doubt due to the current climate; however, as the trend was evident two years ago, before the crisis hit, we believe that senior executives are generally viewing their careers in a more fluid and flexible way, moving from contract to permanent work easily and willingly. It may also be that our sample contains many interim managers “pressed into” interim management involuntarily, via being laid off from their employed role. Daily rates have held up, with 65% of Netherlands interim managers surveyed saying their daily rate was “about the same” as last year. As regards women in senior executive roles and specifically women in interim management, the data turned up some very interesting conclusions. Women were more likely (70% of women versus 42% of men) to perceive a “glass ceiling” preventing women’s career advancement, and in fact the distribution of women in all roles versus senior management and board-level roles bears this out. Women were somewhat more likely than men to perceive that interim management offered women more opportunities. The reasons clients engage interim managers in the Netherlands are very similar to what we have observed elsewhere in the world: Business transformation, change management, turnaround, needing skills not present in the organisation, and needing extra management capacity. The positive qualities of interim managers are also perceived similarly across country boundaries, and include interim managers’ results focus, appropriate skills, ability to quickly get staff on side, independence, wide range of experience, and ability to think strategically yet also implement. We hope you have enjoyed reading Interim Management Trend Update. If your company or organisation needs skills, management bandwidth, or to implement a turnaround, major project or corporate restructure, call me today on + 3 1 ( 0 ) 2 0 3 0 1 2 1 5 9 us to discuss how an interim executive from Executives Online can help. Interim managers have become more diverse, with more women, and with a wider distribution of ages and lengths of experience. 24
  • 27. About Executives Online We offer a unique, full-service process which is a balanced blend of technology and personal service. Executives Online delivers fast-track executive resourcing – interim management, project management, and permanent executive recruitment – leveraging our 80,000-strong Talent Bank of senior executives. We source talent globally, via the Talent Bank which is built and drawn upon by each of our growing network of offices around the world. We offer a unique, full-service process which is a balanced blend of technology and personal service. Our approach attracts both the best candidates and the most challenging opportunities, and enables us to rapidly and effectively match them together in successful placements. 25
  • 28. The Netherlands Scotland Germany Atrium gebouw Dalgety Bay Business Centre Dillenburger Strasse Strawinskylaan 3051 Ridgeway, Dalgety Bay, KY11 9JN 51105 Cologne 1077 ZX Amsterdam T: +44 (0) 1383 828920 T: +49 (0) 221-460 234 17 T: +31 (0)20 3012159 Midlands Italy South of England West Walk Building Via Senigallia 18/2 Torre A Staple House, 3rd Floor 110 Regent Road 20161 Milan Staple Gardens, Winchester Leicester, LE1 7LT T: +39 (0) 2 6467 2632 Hampshire, SO23 8SR T: +44 (0) 845 328 2370 T: +44 (0) 1962 893 300 Australia East of England Suite 238, 117 Old Pittwater Road London Suite 283, 17 Holywell Hill Brookvale, NSW 2100 Capital Tower, 91 Waterloo Road St Albans, AL1 1DT T: +61 (02) 9907 1222 London, SE1 8RT T: +44 (0) 845 326 8145 T: +44 (0) 845 053 1188 France South West and Wales 17 rue du Maréchal Lyautey North of England 1 Friary, Temple Quay 95620 Parmain 2 Victoria Street, Wetherby Bristol, BS1 6EA T: +33 (0)1 34 73 10 72 West Yorkshire, LS22 6RE T: +44 (0) 117 344 5128 T: +44 (0) 1937 581900 South Africa Ireland West Block, Dunkeld Crescent North East of England 1st Floor, 43 Main Street Corner Jan Smuts and Albury Rd Rotterdam House Rathfarnham, Dublin, D14 Dunkeld West 2196 Quayside T: +353 (1) 492 5000 T: +27 (0)11 2432801 Newcastle upon Tyne, NE1 3DY T: +44 (0) 191 2064113 Belgium Gentsesteenweg 1050, bus 12 North West of England 1082 Brussels 82 King Street T: +32 (0) 475 580 333 Manchester, M2 4WQ T: +44 (0) 161 935 8246