Choose an interim manager with care 'or face the consequences

With increased workloads in private practices in recent years, combined with a tougher and more competitive business environment, many law firms are hiring interim managers to provide additional senior-level support across the business.

The kinds of roles that interims are taking on in law firms include IT, HR and finance managers. Firms are also bringing in interim business development managers, client relationship specialists and other marketing staff to help boost billing levels.

It is in these areas that interim managers can deliver the greatest value for firms, as they tend to have the commercial knowledge and experience that lawyers typically lack. As a result, they can not only help firms to be more competitive but also bring in new and innovative working methods that can ensure their assignments have a lasting legacy.

An interim manager can give a project undivided attention, undeterred by any internal politics. Additionally, interims tend to hit the ground running and deliver results quickly.

Interims are increasingly being hired to run strategic business projects (such as due diligence and firmwide restructuring), as well as to take on traditional ‘gap filling’ assignments, covering senior level departures, maternity and sabbatical leave. Hiring someone on an interim basis is also a good opportunity to test their skills before taking them on permanently.

So what can firms expect to pay for interim managers? Remuneration depends upon a range of variables, including their area of specialisation, amount of experience and the nature of the assignment.

Typically, an interim executive’s hourly rate is based on what would be paid to a permanent employee; however, there are no additional and expensive overheads such as pensions or holiday pay, so it can be cost effective. Additionally, an interim will typically charge a third less than a management consultant.

Frequent obstacles

The success of any interim assignment is dependent upon whether the firm has clarity on the project and is able to provide the interim with ongoing support during the assignment.

Firms need to approach the recruitment of an interim manager with the same rigour which they would apply to the hiring of any senior business manager – failure to have a robust recruitment process is a common pitfall. As an interim manager is there to play a significant role in the business, getting it wrong is risky, expensive and could be a major setback to the business.

Even if the role is only for a six-month assignment, firms not only need to ensure the interim manager has the right skills set and experience but is the right corporate fit. The interim should meet all of the relevant teams and partners with whom he will be working as part of the interview process and be able to demonstrate that he fully understands the firm’s ethos and business processes.

The partners also need to ensure they know what they want the interim to deliver, so it is essential they ask what track record the interim manager has and understand the experience he can bring to the business.

Any interim manager coming into a law firm will face hurdles. There will be inevitable cultural issues to contend with. The interim manager will need to be resilient and able to navigate around partner fiefdoms, so having good people management skills is essential. Additionally, the interim manager will need to prove his expertise to partners and gain their respect. It is likely an interim manager will ?have difficultly in influencing decision making and it may take some time and convincing – particularly the older partners – that a new strategy or business process is needed.

An interim manager needs a minimum of six months to integrate successfully ?into a business and make an impact. Ideally, a longer period should be arranged, as realistically all that can be achieved in six months is gap filling and holding the fort; achieving genuine change will take much longer.

Bringing in an interim expert with ?a proven track record of delivering ?results could help boost fee levels, ?win clients, deliver new and innovative working methods and provide a competitive advantage.

Ensuring success

• Make the business case. What are the business drivers for hiring an interim manager? First check that you definitely need an interim manager and question whether a permanent appointment would be better. Double check within the business that you don’t already have the right resource for the project.?

• Get buy-in from the partners. Ensure that key stakeholders support the need to recruit an interim – this will ensure the project is successful. ?

• Define your brief. What are the main deliverables you are expecting from the interim? What return on investment do you expect??

• Skills and experience. What are the skills and industry experience you need and what kind of personal qualities should the interim have?

The author gratefully acknowledges the contributions of John Kennedy and Charles Russam to this article.