Export Services

Despite Mark Carney’s, Governor of the Bank of Canada, recent declaration that the end of the recession is near, most of us as both consumers and business people still feel that we are living in uncertain times. Most business gurus will say that the organizations that will come out of the recession the strongest are those that continue to innovate, to invest in the business, and to move forward.

Every organization has key people that are vital to its success. These are usually the busiest people and there is always a conflict between having them involved in the day to day business, and having them work on projects which are part of the innovation required for success.

Contract executives offer a very cost effective way for organizations to move forward with key projects. They are dedicated 100% to the success of the project and are not burdened with constant interruptions from the day to day. This means that projects progress much faster than when they are managed by someone who is wearing multiple hats. They work only the time that is needed for the project and do not take vacation, require benefits, or charge for idle time. And when the project is complete, they move on. Often an outsider to an organization brings value in others ways as well. By having experience working with many other organizations, they bring a fresh perspective and can help to break out of the rut of how things are usually done, which isn’t always the best or most efficient way. They
can ask insightful questions that others who are very close to the business may miss – the old “can’t see the forest for the trees” adage. And because they are dedicated to the success of the project, they don’t get involved in politics.

Organizations sometimes try to save money during uncertain times by ignoring key initiatives or by expecting their staff to do more. This can result in stagnating the organization and frustrating key staff, who may leave as soon as the job market turns around. Those organizations who do engage a contract executive are better positioned to grow and prosper in today’s environment.

Sheila Hamilton
Managing Principal – Ontario
The Osborne Group

Bill 168 - Workplace Violence and Harassment - Are you ready?

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Effective June 15, 2010, all organizations in Ontario with more than 5 employees will be required to have the necessary policies, programs, measures and procedures in place to address workplace violence and harassment.

Bill 168 poses unique challenges and has far reaching implications for all organizations. The legislation requires employers to create new policies and programs to assess and control risks; to train employees and to develop procedures to investigate complaints. Many organizations will require help to understand the requirements and to develop a program that ensures compliance.

If your organization has any of the following factors it may be at greater risk for violence in the workplace:

- Working in a community-based setting
- Working with unstable or volatile clients
- Working late at night or early in the morning
- Working alone or in small numbers
- Working with the public
- Handling cash
- Working in high crime areas

The new legislation defines workplace violence to mean:

- The exercise or attempt to exercise physical force by a person against a worker, in a workplace, that causes or could cause physical injury to the worker.
- A statement or behaviour that it is reasonable for a worker to interpret as a threat to exercise physical force against the worker, in a workplace, that could cause physical injury to the worker.

Bill 168 extends the definition of workplace harassment beyond what is presently covered under the Ontario Human Rights Code. Bill 168 will require employers to treat harassment based on non-protected grounds in the same manner as harassment based on Code-protected grounds. Harassment is defined as: engaging in a course of vexatious comment or conduct against a worker in a workplace that is known or ought reasonably to be known to be unwelcome.

The new legislation requires employers to undertake a comprehensive program that includes:

- A proactive risk assessment to measure the risk of workplace violence.
- Implementation of measures to control risks identified in the assessment.
- Written and posted policies and procedures addressing the risks. Two policies are required: one for violence and one for harassment.
- Employee training in the policies and procedures. Employees are required to report threats or risks to the employer.
- Disclosure to employees of risks and persons with a history of violence, if employees are likely to be exposed to physical injury.
- Implementation of an emergency response procedure to summon immediate assistance.
- Development of a procedure to investigate threats and complaints.
- Procedures to address incidents, complaints and threats of violence, including domestic violence. Employers are required to take all reasonable precaution in the circumstances to protect the worker.

Bill 168 extends the right of employees to refuse work where he/she has reason to believes he/she is in danger of being a victim of workplace violence. The Health and Safety Act currently prohibits certain workers such as police officers and hospital employees from refusing work when the unsafe condition is inherent in the work. Bill 168 allows for a regulation to specify situations that define when an unsafe condition is inherent or a normal condition of employment.

Enforcement and penalty clauses that currently exist in the Occupational Health and Safety Act will also be applicable to the new law. An employer who is convicted of contravening a provision or an order of an inspector may face a fine of up to $25,000 and/or imprisonment for up to 12 months. Employers that are corporations may face fines up to $500,000.

Know your obligations under Bill 168. The legislation can be found at:
http://www.ontla.on.ca/bills/bills-files/39_Parliament/Session1/b168ra.pdf

Preparing for the changes in the Occupational Health and Safety Act will be a lengthy and detailed process for employers. Will you be ready on June 15th? If you require assistance complying with Bill 168, contact the Osborne Group.

Donna Brazelton and Michael Dick
Principals – Toronto
The Osborne Group

The Osborne Group is a national team of experienced executives, focused on interim management and consulting services. Over the past fifteen years we have successfully helped clients in every sector, providing executives from every discipline to fill management gaps on critical projects, during periods of change, or when competition demands senior level expertise.

Please visit our website at: www.osborne-group.com or contact us at:

Calgary 403.264.8195
Edmonton 780.451.4698
Montreal 514.989.2213
Ottawa 613.722.0479
Toronto 416.498.1550
Vancouver 604.688.4960

The Social Web

PDF Version

Communications are changing and only a few industries are embracing the change, while others are not sure whether to take the step. Organizations hesitate for a variety of reasons including fear, disbelief, underestimation, lack of ROI metrics, misunderstanding, misperceptions, or some combination of the above.

The main fear seems to be letting go of the control of communications; allowing “the wisdom of the crowd” to replace the corporate design. An understandable concern but, in actuality, control of communications was lost a long time ago. People are discussing brands, products, and services right now, across multiple forms of social media.

Many companies still see blogs as random musings, social networks as places where people troll for friends and other social sites as platforms for pure narcissism. Reluctance to consider looking into these areas for business advantage is understandable so, to help you along, we will look at a few basic aspects of this emerging phenomena.

The Social Web consists of a spectrum of users and uses. At one end is the crowd of Twitter and Facebook users updating/following friends, and personal bloggers writing for small communities of fans. This is definitely the main action of the social web and what most companies think of as the social web.

At the other end of the spectrum are the ‘biggies’, the Facebook sites with millions of followers (Coca-Cola’s site, for example, has over three million fans) and weblogs like Boing Boing, The Huffington Post, and Power Line which are recognizably media outlets with multiple thousands of subscribers.

Somewhere in the middle of this social spectrum, where conversation meets broadcast, is what is termed ‘social media’, where private or community communication blends into broadcast communication; where community shades into audience; as if your phone could turn into a radio station at the turn of a knob.

The challenge encountered when first trying to understand and deal with social media is, as mentioned above, most of the social web content is created by and for communities of friends or small groups.
Because we are unfamiliar with private communication and broadcast communication being mixed together, we misread these seemingly inane posts and think that it’s all broadcasting. Not being accustomed to seeing written material in public which isn’t intended for us, we misinterpret the intent, which is a mistake.

With this small but important distinction in mind we can outline a few fundamentals:

1. Social networks are where much of the market has moved and is now gathering.
2. Social media is where this market is now getting their news and information.
3. There are no experts out there yet as social media is still in its infancy and is only beginning to mature.
4. Social Media has yet to reveal its true impact. (Brian Solis)
5. Transparency and honesty are the keys to the social media kingdom.
6. Conversations are taking place with or without you, whether you engage or not.

Click here for an example that United Airlines encountered in 2009. The video is self-explanatory)

The well-known social sites are technologies, web tools enabling the fundamental shift occurring in our culture from passive content/media listeners to active content/media creators. And the real story is not the technology but the socialization of communication and information and with this, new influencers and new publics reading, creating, and disseminating content.

Social media therefore moves communications and marketing from speaking ‘to’ or ‘at’ people to talking ‘with’ people. The monologue of corporate communication of the past gives way to dialogue and the challenge becomes not whether to engage, but how.

1. How will the public relations, advertising, customer service, marcom, sales, and community relations of social media integrate into the traditional marketing endeavours?
2. How will an integrated communications strategy roll out and who will be responsible for linking the still necessary traditional media with the new social media?
3. How will decision makers be approached and sold on incorporating social media into the communication portfolio?

In summary, we’ve shown that if you’re still on the sidelines, you’re not alone; your initial perceptions of social media are most likely correct; the millions of fans and followers populating the social networks are the basis for social media; (If Facebook were a country it would be the fourth largest in the world) social media is still in its infancy with many pundits, few experts, and still to show its true impact; and lastly, it is communication that speaks ‘with’ groups and markets, not ‘at’ them.

And, for those who clicked on the YouTube link above and would like to know the outcome, the over eight million views of the video, the multiple alternate videos created off the original, and the thousands of comments (hope you check some of these out below the video) ended well for the band.(Click here)

Bill Kerr
Principal – Vancouver
The Osborne Group

Six Keys to Project Success

Printable PDF Version

In recent years, project management has become a more prevalent delivery methodology for developing new products and services. As organizations have come under increasing competitive and economic pressures, they are taking on more complex projects, often with resource constraints and higher levels of risk. Unfortunately, some organizations have not necessarily made advancements in their project and risk management practices. As a result, industry research* suggests that project failure rates have actually increased.

31% of projects are cancelled before being finished
53% of completed projects are completed, but with cost and/or schedule overruns
Average cost overruns of 189%
Average time overruns of 222%
Only 16% of projects are completed on time, on budget, and on scope
Over 80% of all projects will fail to deliver the desired organizational outcome

*The Standish Group, “CHAOS 2007 REX: A Standish Group Research Exchange.” 2007

Senior leaders (e.g. CEOs, COOs, and Executive Directors) typically have the ultimate responsibility and accountability for ensuring successful project outcomes. Faced with this sometimes daunting challenge, how can you, as a senior leader and/or project sponsor in your organization, improve the probability of project success?

We have worked with organizations on projects with a broad spectrum of scope, budget and risks. Regardless of organization type, size or the complexity of the project, there are six key steps that senior leaders can take to significantly improve the probability of successful outcomes, specifically

Establish a clear link between the Project and the organization’s key strategic priorities
How does the priority of this project align with other delivery and operational activities?
Are there defined critical success factors (CSFs) for the project?
Have the CSFs been signed off by the key stakeholders?
Is there a documented project plan that covers the full period of the planned delivery and all business change required?
Is the project timeline realistic and does it show critical dependencies such that any delays can be managed?
Are the lessons learned from previous projects being applied?

Proactively engage with stakeholders

Have the right stakeholders been identified?
Is there a common understanding and agreement of stakeholder requirements?
Does the business case take into account the views of all stakeholders, including end users?
How will stakeholders be managed? E.g. ensure buy-in, overcome resistance to change, resolve conflicts, and allocate risk to the party best able to manage it?
Has the existing organizational culture been taken into account?

Ensure that the project has senior management support & sponsorship

Does the project management team have a clear view of the interdependencies between projects, the benefits, and the criteria against which success will be judged?
If the project crosses organizational boundaries, are there clear governance arrangements to ensure alignment with the business objectives of all departments involved?
Does the project have the necessary approval to proceed from the project sponsor?
Does the Project Manager have the responsibility and authority to ensure that the business change and business benefits are delivered?

Use a proven project management methodology

Are recognized project management best practices being used to manage the project?
Are there adequate processes for estimating, monitoring and controlling total expenditures on the project?
Are there effective systems for measuring and tracking the realization of desired benefits and original objectives of the project?
Are the reporting processes robust enough to ensure that “bad news” is not filtered out of progress reports to senior management and the project sponsor?
If external consultants are used, are they accountable and committed to help ensure successful and timely delivery?

Ensure that the project has sufficient, skilled resources

Does the Project Manager have a track record of successful delivery?
Is there a skilled and experienced project team with clearly defined roles and responsibilities?
If not, is there access to external expertise, which can benefit those fulfilling the key roles?
Has sufficient resourcing, financial and otherwise, been allocated to the project?

Have a risk management plan in place

Has an analysis been undertaken of the probability and impact of any slippage in schedule, cost, scope or quality?
Are the major risks identified, weighted and treated by the Project Manager and/or project team?
Is there a risk contingency allowance in both time and cost?
Has a risk register been established?

As a senior leader or project sponsor it is a good practice to review all proposed projects with the above questions in mind. If any of the answers are unsatisfactory, taking corrective action immediately will improve the probability of a successful project outcome.

Bob Prenovost, AMPHI, PMP, LEED™AP - is a certified Project Management Professional who has successfully delivered major projects and programs on time and on budget for both public and private sector clients. Bob is a Principal with The Osborne Group’s Western Region. He specializes in Project & Risk Management.

The Osborne Group is a national team of experienced executives, focused on interim management and consulting services. Over the past fifteen years we have successfully helped clients in every sector, providing executives from every discipline to fill management gaps on critical projects, during periods of change, or when competition demands senior level expertise.

Please visit our website at: www.osborne-group.com or contact us at:
Calgary 403.264.8195
Edmonton 780.451.4698
Montreal 514.989.2213
Ottawa 613.722.0479
Toronto 416.498.1550
Vancouver 604.688.4960

Securing Government Funding – Effort & Focus can Equal Success

The myriads of funding incentive programs provided by governments offer literally billions of dollars each year. A quick scan of the programs, for example, on the grantcanada website include: women’s enterprises, sound recording, farm research, inventors, retailers, book publishers, main street improvements, tourism, computer animation, cultural development, innovation, business help for newcomers, exporters, student businesses, self-employment, entrepreneurship, community development, aboriginal business, start-up financing, small business, agricultural finance, etc.

Some of the most common programs are offered for scientific technological research in the precommercial stage such as IRAP (Industrial Research Assistance Program), NR Can (National Research Centre Canada) and SDTC (Sustainable Development Technology Canada). Many programs deal with exporting out of Canada and developing export markets such as PEMD (Program for Export Market Development), EDC (Export Development Corporation) for export insurance and CIDA (Canadian International Development Agency) for developing foreign sales.

It is important to determine which types of programs your enterprise may qualify for, so you can better focus your efforts and have a greater chance of success. To find a program for your specific sector you might want to go to the Sources of Financing Search engine of CanadaBusiness on www.canadabusiness.ca/eic/site/sof-sdf.nsf/eng/home.

Each funding program has its own forms, review processes, etc. that can seem like an impossible maze to negotiate. However, it is important to understand the process behind whichever type of program you choose. That is, in addition to the forms, you should get in touch with the administrators of the process and ask any clarifying questions. This may take some time – be persistent.

Also, find out if there is a review panel comparing applications. Ask if there is a scoring system. What are the factors and the relative weights? It may help you to decide if you really have a good chance of success and help you make an early decision on whether or not to apply or devote your energies elsewhere.

The process takes time and focus. It is not an activity to be undertaken on a casual basis. Set a time frame and give it priority. You need to use knowledgeable people to put it together. Let others in your organization know they may be asked to provide some information that is not on-the-shelf and requires serious effort on their part.

If in doubt as to what the forms are asking for, take the time to get the answer. Also, it is easy to make a mistake on a form. Have someone else in your business with fresh eyes look it over with attention to detail. Consider bringing in someone from outside to help with all aspects of the process; they can increase your chances of success.

You have to clearly understand the mandate of the program and make sure that the work plan includes all the specific information requested, such as the number of women employed, or the number of visible minorities, etc. Failing to supply the necessary information will only delay the application or have it rejected entirely.

In most grant programs you are in competition with others, so make sure that your work plan is credible and you can support and defend the budget. The grantor will likely be doing due diligence on the work plan, so it needs to stand up to scrutiny. The due diligence will assess your company’s ability to complete the work plan.

Consulting fees are eligible in most programs, so make sure the work plan includes them; this will show that it is to be paid and is not contingent. Usually no contingent fees are allowed and the company has to sign a declaration form stating that none are payable.

A number of programs require matching funds and you have to support this with documentation. Some of the bigger government programs will want you to engage in partnerships with other companies or the academic sector, so that there is a value added component beyond just the commercial aspects and the whole is greater than the sum of the parts.

The bottom line - accountability to the taxpayer is built right in to the design of government funding programs Be prepared to spend dedicated time putting it together, responding to queries and submitting progress reports. With some $20 billion per year available from the federal government alone, it can be worth your time and effort.

Bob Cooke and Trevor Gibbs
Principals – Ontario and Vancouver
The Osborne Group

The Osborne Group is a national team of experienced executives, focused on interim management and consulting services. Over the past fifteen years we have successfully helped clients in every sector, providing executives from every discipline to fill management gaps on critical projects, during periods of change, or when competition demands senior level expertise.

Please contact us at: Calgary 403.264.8195, Edmonton 780.451.4698, Montreal 514.989.2213, Ottawa 613.722.0479, Toronto 416.498.1550, Vancouver 604.688.4960

Business Continuity through a Pandemic and Beyond

Business Continuity Planning is a discipline that usually comes to the forefront when a disaster is imminent. The end result of such planning is a documented organization-wide understanding of what each business unit does in an emergency in order to ensure corporate goals can continue to be met. For instance, the H1N1 virus has caused much talk on pandemic planning. Some organizations have started to scramble to assemble their plans so that they are ‘prepared’. Others take the risky route of dealing with the situation as it comes. Even fewer companies can relax a bit because they actually do have a plan.

No one asks ‘why don’t we have a business continuity plan?’

In its very basic form, a business continuity plan (BCP) is established to address strategies to keep the business going. There are many aspects that need to be addressed but the two most fundamental parts are mitigation and recovery strategies. Fundamentally an organization needs to establish an overall business continuity management framework that fits the organization’s culture. This in turn provides the necessary guidance to effectively proceed with planning efforts including but not limited to; understanding the risk the organization can handle (risk appetite), the consequences of a major incident such as the current (H1N1) pandemic i.e. reduction of workforce, the changes that can be brought about to reduce the risk (mitigation strategy), and plans that will allow the organization to continue its business until normal operations are restored (recovery strategies). The BCP needs to be simple, easy to understand and easy to execute. It should contain elements such as what is essential versus non-essential; what is needed and what can be done without during a defined period; in the case of a pandemic, who is needed and where do we find alternates in case of absenteeism; what communication strategies (both internal and external) need to be put in place; what training is needed and how much testing should be conducted. One of the planning fundamentals often overlooked is the harmonizing of many related plans such as emergency response, technology recovery, risk management and crisis management. This harmonizing of plans (plan integration) is important to any organization to avoid the potential of chaos.

Organizations do not realize that once they have established a BCP, it can be modified to fit almost any ‘incident’. A pandemic is just one scenario in the area of business continuity. It should actually be considered a high rate of employee absenteeism rather than a pandemic because that is the consequence that companies are dealing with. This thinking allows the plan to go beyond the current pandemic situation and be useful for any similar situation that involves worker absenteeism.

Stakeholders and employees are trusting organizations to be prepared immediately. If your organization does not have a BCP, you should consider creating an Employee Absenteeism Plan now to deal with the immediate H1N1 threat and then expanding the Employee Absenteeism Plan into a BCP in the future. The H1N1 outbreak can be viewed as a marshalling event that propels people to create a BCP that not only addresses the consequences from a pandemic but also provides a plan that deals with the consequences from all sorts of incidents.

It is crucial for organizations to consider policies surrounding incidents. Policies should answer all expected questions of employees and should be communicated to everyone in the organization. For example, in a pandemic scenario, employees will have many questions concerning sickness and what to do. Do they stay home and do they still get paid? These types of questions will be asked no matter what incident is at hand because it is a time of unfamiliarity for employees. The organization’s response to these questions should be definite and not leave room for uncertainty. Communication of where your organization stands on these issues well before the incident can prevent much panic and confusion. H1N1 is a current threat that should prompt all organizations, large or small, to create a BCP. The value gained from the process of creating a BCP will show through this pandemic and beyond.

Other than H1N1, Why Should Your Business Have a BCP?

Business staffing is clearly vulnerable to the impact of H1N1, but other business disruptions can also have a major impact on day to day operations and future profitability. Factors such as increased dependency on technology and just-in-time approaches all the way through the supply chain, have made businesses more sensitive to even minor disruptions. Some examples of minor non-staffing disruptive events are power outages, information technology (IT) system failures, manufacturing equipment failures, hazardous material contamination, voice and data communication failure, and computer viruses. Over the past decade, the risks of natural disasters, technical and accidental failures, and malicious activities have increased the possibility of business disruptions and their potential impact.

Serious consequences of seemingly minor business disruptions can be avoided through a plan. A business continuity plan for non-staff related disruptions will be a document that contains procedures and guidelines to help staff recover and restore disrupted processes and resources to normal operational status within an acceptable time frame….similar in development and content to the H1N1 plan.

BCP can help businesses survive disruptive events by protecting key areas of vulnerability, such as:

-Loss of or injury to Personnel
-Implications of Rules and Regulations
-Loss of Revenue
-Physical Damage to Critical Resources
-Loss of Customers
-Civil and Criminal Liability
-Damage to Reputation

The methodology for developing, maintaining, and implementing any business continuity plan incorporates people, business processes and resources. A BCP cannot be developed or function effectively without the collective efforts of all people involved.

Management too often neglect disaster planning or business continuity planning. The most common reasons are: lack of time and resources, lack of top management support, lack of money, too many causes of disasters to plan for effectively, little awareness of potential hazards, and lack of knowledge in developing a plan. We have all heard at least one of these reasons for not having a plan, but are any of them really good enough to risk the consequences of not being prepared? Perhaps the success some companies will have with their H1N1 plan will finally prompt them to use their new process planning skills to plan for other equally disruptive and critical situations.

Bob Klay and Katie Virtue Victoria Ewert Klay Management Consulting Group Ltd.

The Osborne Group - Edmonton The Osborne Group is a national team of experienced executives, focused on interim management and consulting services. Over the past fifteen years we have successfully helped clients in every sector, providing executives from every discipline to fill management gaps on critical projects, during periods of change, or when competition demands senior level expertise.

Please visit our website at: www.osborne-group.com or contact us at: Calgary 403.264.8195 Edmonton 780.451.4698 Montreal 514.989.2213 Ottawa 613.722.0479 Toronto 416.498.1550 Vancouver 604.688.4960

Philanthropy is a Wise Investment

For the donor, the landscape is full of trees, branches extended, and thirsty for monies. Today’s ‘asks’ are many, made directly to foundations set up for cultural, education, health or social, or environmental causes, or to the United Ways and Community Foundations, that then become distributors to various agencies and non-profits. And just to introduce a new species to the forest, wealth management and venture capital philanthropic funds are absorbing monies.

How can a donor be satisfied that monies donated – right from the getgo, think invested - results in positive returns. This is a measurable expectation in any financial portfolio, where investment follows careful due diligence and evaluation of options. Certain standards of governance, accountability, behaviour and outcomes are anticipated, and if an investor is not satisfied, changes in portfolio management are made.

So, donor, what do you do to bring rigour to your charitable giving? Should you have measurable expectations in charitable giving? Yes. Donors should expect quantifiable, satisfying outcomes as a result of placing their money with a non-profit. And organizations should welcome the opportunity to demonstrate that theirs is the best place to invest, as this is in fact another marketplace, deserving of the same attention.

A donor, once assured there is an alignment with values and interests - will ask a number of key questions:
- What distinguishes this need / ask from the many others supporting my cause?
- How prepared is this agency or organization to receive funds?
- Can this organization be considered a serious investment option?
- Will my donation make a difference I can identify?

As the donor due diligence drills down, the time lines for the promised expenditure of funds or the target project completion will be examined. How achievable are these time lines? Are the additional revenue sources (government, matching funds, etc.) required to make the anticipated impact secure?

Excellence in financial reporting and overall governance must be viewed as solid support to the achievement of an organization’s goals – and hence a donor’s expectation. Donors may enter the door for reasons of passion – once. Return donors will see that their investment has long-lasting and positive results.

Organizations increasingly understand that the due diligence done by a prospective donor should be rigorous and demanding:
- Are financial statements clear, and can it be demonstrated that budgets are realistic?
- Can one readily ‘follow the money’?
- Are financial sources reasonably diverse; can this organization absorb one or more revenue source losses?
- Does the governance structure align with the program delivery or research targets?
- Is risk clearly identified?
- If a planned project does not materialize, is an explanation given?

If a project does not proceed as planned, there may well be legitimate reasons. It is the analysis as to why, and the open, transparent communication that is crucial.

As to risk, we would be remiss not to point out that donor promises of funds over a number of years is a potential risk to an organization, as while these funds are no doubt intended, they are not secured by a contract in law. Financial statements should identify future funds as contracted or anticipated.

Organizations and donors are in a much-changed environment, as charitable monies may well be challenged by the economy and yet needs have not abated. The United Way in Toronto has announced a reduced target for this fall 2009 campaign, for the first time ever. Just imagine the trickle down fears within charitable organizations dependent upon United Way funds, and the increased pressures on individual donors.

Donors do see the forest for the trees, and do understand risk and reward. Philanthropy is a business, and when donors are confident at the outset of an investment, and remain confident that their expectations are being met year after year, it is a wise business.

Janet Dey and Marilyn Dumaresq
Principals - Ontario
The Osborne Group

Moving Forward in Uncertain Times

Sheila Hamilton
Managing Principal – Ontario
The Osborne Group

Part-time Executive, Full-time Value

With the increased competitiveness and complexity of business today, the role of experienced executives is no longer a luxury that only large corporations, not-for-profits and governments can afford. Smaller organizations are finding they need the expertise and leadership skills of someone with years of senior level experience. The challenge is how to afford one.

One answer is to use interim executives. While the volume and scope of work may not require a full time VP of Marketing, or CFO, the nature of the work may require executive-level expertise. Hiring a seasoned professional often with related sector experience, as a part time executive on a flexible basis may be the best solution to help grow the organization to a level when a full time executive becomes
appropriate and cost-justified. This can mean hiring a COO on a two day a week basis, or a VP of HR three or four days a month. The need is determined by the client and the contract structured to fit their budget and company goals.

Smaller government and not-for-profit organizations have started to embrace this concept by moving towards ‘shared services’ as a means to add management depth in certain functions such as HR and Finance. A group of organizations will utilize the skills of one executive on a shared basis to provide ongoing management support, development of new strategies, implement appropriate processes and policies, consult on specific issues, and assist through periods of reorganization.

While the cost benefits of engaging a part time executive are obvious, what about the other advantages? A part time executive has the experience and knowledge to ‘hit the ground running’ – becoming part of the team. They take a hands-on approach and can start solving problems as soon as they are identified –evaluating and implementing as they go. In addition, the organization gets an
experienced advisor –someone who has been accountable for the achievement of measurable goals and knows how to deal with business obstacles and challenges. They bring a fresh set of eyes which is often the catalyst for new ideas that make the business more competitive and effective. In the process, they often become a valued mentor or coach to other members of the team that are interested in developing their skills and progressing as the business grows.

Smaller organizations often try to accomplish too much with strained resources and are unaware of the advantage of leveraging the substantial talent pool that is available through contract executives. Those who do engage a part time executive realize full time value and are better positioned to grow and prosper in a highly competitive business environment.

Jane Matthews
National Managing Principal
The Osborne Group

Senior Managers, For Hire

By Harley Richards - Red Deer Advocate

In the spring of 2006, Permolex Ltd. was in need of executive help. The general manager of its Red Deer plant — where ethanol, flour, gluten and livestock feed is produced — had left and there wasn’t an obvious successor.

Other businesses in this position might have embarked on a frantic search for a permanent replacement. Permolex opted to bring in Bill Churchward on a temporary basis. With a resume that included senior management positions with the likes of the Alberta Research Council and Canada Malting Co., the Calgary resident was amply qualified for the position. And over the next year and a half, he guided the operations of the plant, identified and groomed a Permolex employee for the general manager’s position, and then quietly departed.

Churchward works with The Osborne Group, a network of senior executives who contract their management skills to companies in need. “We have all had 20 years-plus experience in senior management at an executive level in industry,” he said. Clients are often small or medium-sized enterprises that lack the resources to address specific management challenges, said Churchward.

They may be growing faster than existing management can support, have a short-term need or one that doesn’t justify the hiring of a full-time executive, or have unexpectedly lost a key employee. By bringing in a temporary executive, the organization pays only for the time that person is needed, it avoids the recruitment, severance and other costs associated with hiring a permanent employee, and it gains immediate access to a seasoned manager, said Churchward. “Because we’re senior executives, we can hit the ground running.”

The concept of interim management has been popular in Europe for years, he said, but has been slower to catch on in Canada. “As much as anything, it’s an awareness,” suggested Churchward, pointing out that filling lower-level positions on a temporary contract basis has long been a common practice here.

Founded in Toronto in 1993, The Osborne Group now has offices in a half-dozen other cities in Canada, including Calgary and Edmonton. They operate independently but work closely together, said Churchward.

In Western Canada, The Osborne Group has about 25 senior managers — or “principals” — for hire. They come from a broad range of industries, but each has extensive experience in one or more key areas like executive management, financial management, human resources, operations, business development (marketing and sales), information technology, corporate development and as executive advisers.

Many have joined The Osborne Group as a transition to retirement, said Churchward, but all are still “active, vital executives.” Although contracted to clients temporarily or on a part-time basis — typically for less than a year — each is fully engaged in the operations of that organization. “In many cases, we carry a business card that identifies us as a member of the client’s management team,” he pointed out.

Churchward, who is 60, joined The Osborne Group in 2003. He likes the variety of work he is exposed to as an interim manager and the opportunity to see how different businesses “tick.” “No matter how much experience you bring to the table, you’re always learning.”

A number of Central Alberta businesses could probably benefit from a relationship with The Osborne Group, said Churchward, who is talking to several prospective clients in the area. He also thinks there are experienced managers in the region who would make good principals with The Osborne Group. The organization, he said, is always looking for senior executives to join its ranks. “Certainly in the last few years our business has been subjected to the same kinds of demands as every other business, in terms of people being hard to find and retain.”

Occasionally, said Churchward, clients will persuade a principal with The Osborne Group to join them on a permanent basis. “But that’s not our business model,” he said, adding that most principals are not interested in occupying one desk for the long term. “Most of us prefer to work on a contract basis and be able to move in and out.”

- Reprinted from Red Deer Advocate – March 2009

Outsourcing America

How to Outsource Governance and Strategy. The true cost of shipping jobs overseas and what can be done about it.

"One of the best things about outsourcing some of these functions for SMEs is this: if we're not working for you we're not getting paid. We don't phone in sick, we don't collect benefits, and if you get tired of us there's no serverence time. You just don't hire us again." Mark Olsen, Pricipal, The Osborne Group

We found this article to be compelling, and hope that you will as well. To read the article ... click here

Gaining a Competitive Business Edge

A Report from the Human Capital Institute, April 2008

This recently published article from Dr. Katherine Jones of the Human Capital Institute outlines the incredible value proposition offered by, and growing presence of, interim executive management. As a "global think tank, educator, and professional association defining the agenda and setting the pace for the new business science of strategic talent management," HCI has researched and reported here on exactly that which The Osborne Group practices.

To read the article ... click here

The Interim Executive

The Interim Executive: Gaining a Competitive Business Edge through Interim Executive Management.

A Report from the Human Capital Institute, April 2008

We found this article both clearly informative and exciting, and hope that you will as well. To read the article ... click here

Leadership On Demand

CMA Management

Leadership on Demand

Using an interim executive can bridge the management gap

Authors: Jane Matthews and Michael Dick Print Version

Employee churn is a challenge every organization must face, regardless of how well it engages and rewards staff, and the executive suites are not immune.

As an HR professional, you must ask yourself if you have the right level of succession planning and leadership development happening within the organization to replace the knowledge gap.

McKinsey and Company, a New York-based management consulting firm, recently completed two followup studies to its 1997 global research paper The War for Talent. Both studies concluded the single most important issue companies will need to deal with in the next few years is finding talent. McKinsey found too many organizations dismiss talent management as a short-term, tactical problem rather than an integral part of long-term business strategy.

In Canada, the generation of workers who are now in the workforce and available to replace the boomers are 20 per cent fewer in numbers, according to Statistics Canada. Those still in school readying themselves to enter will be a more difficult task for HR professionals well into the next decade.

But the problem isn’t one just sitting in the future. Organizations are already finding that an executive search can often be a lengthy process in order to find the right fit, putting added pressure on existing management. Organizations in this situation might want to consider interim executive management as an effective stop-gap measure.

Already a widely used business practice in Europe and the United Kingdom, interim management is finding its place in North America. It involves the temporary assignment of a seasoned executive to manage through a period of transition, crisis or change within a business.

There are a number of different situations that can create a need for an interim executive: crisis management, sudden departure, extended leaves, managing change or transition, taking a company public, mergers and acquisitions and project management. Disability can also
create temporary voids in the executive management suites.

Whatever the reason for the departure, having an interim executive fill in while the incumbent is on a leave and then having the interim executive around to help facilitate the return-to-work process, increases the success rate and provides a win-win for both the individual and the company. One of the major benefits of using interim management is to fill senior level vacancies within days, enabling the business to move forward. Because there are no long briefing sessions and interview processes, an experienced interim executive can hit the ground running, be readily available, be paid a daily rate and get introduced quickly into the existing corporate culture.

In addition, the organization can tap the expertise of the interim executive to help recruit a full-time replacement or fill a newly-created position, smooth the transition period of the new incumbent and provide support for senior management or the board of directors.

Interim management also makes sense for organizations that don’t require a full-time executive but want the seasoned expertise of a senior-level person with a good track record. The volume of work may not require a fulltime vice-president of human resources or a chief financial officer, but the nature of the work may require parttime, executive-level expertise.

An interim executive can also play a mentoring role, especially in smaller organizations that may only have a CEO at the top leading a team of hands-on managers.

Whether struggling with issues such as cash flow, customer service, employee engagement, pricing models or expansion into new markets, an interim executive who has “seen it all” can bring proven solutions to the table and offer clarity on priorities and challenges. Additionally, they usually have an extensive network of other experienced professionals who can assist and advise in a wide variety of areas.

Now more than ever, organizations are facing key leadership gaps. The use of interim executives allows organizations to deal effectively with the loss and take the time to find the right replacement. Leadership on demand is a key strategy for any HR professional to manage the upcoming loss of knowledge and leadership as the boomers start to leave the workforce.

Jane Matthews is the national managing principal and Michael Dick is the principal, human resources, Toronto practice at the Osborne Group, an organization that provides interim management and consulting services. For more information, visit www.osborne-group.com.

By Jane Matthews and Michael Dick

Wanted: Part time CEO

Wanted: Part-time CEO
Young technology firms must leverage seasoned interim executives

ED HSING AND JANE MATTHEWS technology tg@work, March 2007 Print Version (PDF)
SPECIAL TO GLOBE AND MAIL UPDATE

Jane Matthews

Front Lines is a guest viewpoint section offering perspectives on current issues and events from people working on the front lines of Canada's technology industry.

The CEO of a young technology company faces all of the standard challenges of any business: lack of time, cash flow and responsibility overload.

Compounding these problems, the technology CEO is in the world's fastest changing industry. She must be constantly driving her organization to innovate and redesign or they will face obsolescence in months. It is likely that throughout the start-up phase, the organization was unstructured and, out of necessity, the CEO wore several hats (sales, accounting, marketing) to get the job done. However, the transition to the next level of organization will require introducing structure and executive delegation.

Key functions such as development, sales, marketing, finance, IT and post-sales support each require specific focus and execution. The CEO should only set overall objectives and establish resource requirements for these areas. The specific vision and execution for each functional area should be delegated to experienced executives. Once the CEO, herself, gets bogged down in these functional areas, the organization is working inefficiently. The prudent CEO will build the experienced management team that her organization needs.

Once her management team is in place, the CEO must focus on setting and communicating the vision and leading that management team. If the CEO lacks focus so will the organization. In the technology industry, this will lead to stagnation and rapid deterioration. However, if she lacks the budget to build that management team, how can she shed the extraneous responsibilities?

Some organizations turn to consultants, but the results are generally mixed. Consultants are sometimes effective at identifying problem areas and prescribing a course of action, but the real benefits come through execution. Hiring expensive consultants for execution is generally cost prohibitive.

One answer is to use interim executives. The volume of work may not require a full time director of marketing or CFO however the nature of the work may require executive-level expertise. Hiring a seasoned professional with related sector experience, as a part time or interim executive may be the best solution to help grow the organization to a level when a full time executive becomes appropriate and cost-justified. The organization gets the highest level of expertise but only pays for the amount of time that is necessary.

For example, a director of HR one day a week or a COO three days a week for six months can provide the transitional management required to set the company on the right path. Necessary structures and processes get established quickly. Existing management stay focused on their priorities, be they revenue generation, servicing customers, research and development or raising funds, to name a few.

Another side benefit of hiring a seasoned interim is that the organization is getting an experienced advisor. The life of a technology CEO can be lonely. While a board of directors or advisory board provides much needed support on driving the business forward, any mentoring or coaching tends to be reactive and based on a view from outside. Aside from doing the defined job, the interim gets to observe the organization from within and can often provide valuable insight and advice to the CEO. Whether struggling with issues around deployment methodology, service agreements, pricing models or new markets expansion, an executive who has 'experienced it all' can bring proven solutions to the table and offer clarity on priorities and challenges. Additionally, they usually have an extensive network of other experienced professionals that can assist and advise in a wide variety of areas.

This addresses one of the most challenging and sometimes costly aspects of the business: recruitment. To mitigate cost and maximize results, many companies today source some of their best talent through networking. The interim executive provides a extensive grapevine from years in the industry. Whether contract or permanent, hiring proven talent with unguarded references often ensures the best fit.

Often, a wise start-up CEO, who is willing to do some soul searching, realizes she is not the best person to be the long term CEO. In starting up the company, she wore that hat, but as the organization grows it might be best for her to return to her core competency (i.e. development or sales) and hire an interim CEO or COO to build the company for the future.

Young technology companies often try to do too much on their own and do not realize the advantage of leveraging the substantial talent pool that is available through contract executives. The companies that do recognize the value of interims are better positioned to succeed in the fast growth and competition of the technology industry.

Ed Hsing and Jane Matthews are senior principals with The Osborne Group (www.osborne-group.com), providing clients with the focused, functional expertise they need to quickly meet their management challenges during periods of rapid growth, transition and decline.

Revisiting the 4 P's

Globe and Mail

REVISITING THE FOUR PS

Make sure to measure success

By JANE MATTHEWS Reprinted from The Bottom Line Mid-October 2006 Print Version (PDF)

For years, marketing has focused on the four pillars, or four Ps; product, place, promotion, and price.

The American Marketing Association now defines marketing as “an organizational function and a set of processes for creating, communicating and delivering value to customers, and for managing customer relationships in ways that benefit the organization and its stakeholders.”

Too often marketing is seen as the advertising and selling of a product or service, but it’s much more, according to Murray Klippenstein, an Osborne Group principal in the Vancouver office.

“The challenge in a marketing organization is how to match creative approaches to the market you’re playing to, and to do it in such a way that it’s measurable, trackable and easy to turn on a dime. Marketing is like this big black hole. One of the biggest problems or challenges faced by Canadian and American companies is how to measure the effectiveness of what you are doing to attract customers to your product.”

Dr. Peggy Cunningham, a marketing professor at Queen’s University’s School of Business, says a lot of companies and organizations get marketing and sales mixed up.

“Marketing is a broad-based function that can affect for-profit and not-for-profit organizations in many ways; it has many tools that can be used in many different functions, so the power of the function is often not appreciated.”

Cunningham sees marketing in a successful business or not-for-profit organization happening on the corporate, business and functional levels.

“The corporate level determines the values the corporation has to articulate. Deciding what makes the market attractive or unattractive for a company; uncovering future opportunities; determining where the company as a whole goes next; figuring out what market to pursue and what the company should be doing to create value in those markets – all of these are the focus of the marketing executive.”

At the business level, competitive strategies are established which will fulfill the direction determined by the corporate marketing goals.

“The business level selects the tools used to compete with other companies in the same domain,” Cunningham says. “At this level, marketing staff are deciding where the company has superior competence, whether it is good at creating new products and if it is good at serving low-cost customers.”

Cunningham sees the functional level as the place where implementation occurs.

“This is the level that does the ads, thinks about packaging and what media and communications should be used. It is at customize products or services to better meet the needs of customers, and it is here also that the market tracking and market research is put in place. The functional level is sort of the hands-on, day-to-day guts of marketing.”

Regardless of company size, marketing that deals at these levels is essential.

Terry Craig, a principal in the Calgary Osborne Group office, has seen companies leave marketing in the hands of junior sales people. “When there is no high-level marketing strategy in place, there are no plans that would normally come out of that strategy and there is, therefore, no support, direction or follow-up to the sales staff.

“The problem,” says Craig, “is that when you don’t have proper strategies and programs in place, a company may be selling products that are easiest to sell, but (that) may not be the products that are the most profitable. That’s product mix and it will directly affect the profitability of the company.” Organizations of any size can successfully market their products or services. Focus is a critical component. For example, organizations need to leverage their knowledge and experience to expand their business in niche segments and industry sectors, where they’ve already developed a reputation.

A disciplined approach, as with any function in business, is also a key factor. Up-front planning ensures input from multiple stakeholders and prevents dollars and resources from being spent on fruitless initiatives. A disciplined approach also
includes established measurements – committing to targets that are tracked and reported on. This will provide valuable
information for future marketing endeavours and present marketing as a critical, results -driven function versus a
necessary cost centre.

Marketing and sales are often considered one and the same. They need to be understood as very different skill sets, but at a management level, they need to be strongly interlinked to achieve maximum success in the marketplace. Simply put, marketing needs sales to be the eyes and ears of the organization, collecting essential research and feedback on customer needs and untapped opportunities. Sales needs
marketing to build and maintain a strong foundation of awareness for an organization’s products and services. Together, they can significantly impact revenue growth, profitability and the strength of customer relationships.

Companies and not-for-profit organizations of all sizes need access to these tools at all levels. Some do not need (or cannot afford) full-time staff. Other organizations need interim help through periods of significant growth or change.

Jane Matthews is the National Managing Principal of The Osborne Group. The company works with clients to provide multi-functional management solutions that exceed expectations and build strong, performance- based successful organizations for the future. For more information visit www.osbornegroup.com

Top Gun for Hire

National Post

Top Gun For Hire

By Deena Waisberg Reprinted from The National Post - 2006 Print Version (PDF)

When most people hear the term “temp”, they think of low-wage clerical or administrative workers whom companies hire to type letters, file and fetch coffee. But, there’s a new breed of temporary workers emerging on the Canadian corporate landscape who could not be further from a Girl-Friday. Highly skilled and experienced executive temps, more accurately referred to as interim executives, are appearing in offices across the Country.

These hired guns cover the temporary absence of a senior employee, or the sudden departure of a full-time executive, or accomplish a critical task that employees don’t have the skills or time to do: Perhaps they open a franchise, bring a product to market or change a sales strategy.

Mary Byczok, who lives in Aurora, Ont., has been working as director of human resources for a real estate investment company for the past four months, covering a maternity leave. Vancouver-based IT specialist Roel Coert has taken on project-based assignments to reorganize a software department, and to develop a business case and technical design to implement fibre-optics-to-the-home services for a municipality in British Columbia.

While interim executives and managers accounted for 11% of the temporary workforce in the United States in 2003, according to the U.S. Bureau of Labor Statistics, it is a relatively new practice in Canada, but one that is expected to grow significantly as Baby Boomers, who have already climbed the corporate ladder, look for alternative work arrangements and companies facing a growing labour shortage look for immediate resources without a permanent cost.

Interims should not be confused with consultants. “Unlike a consultant, who assesses a situation, develops a strategy and delivers a report, an interim executive is responsible for implementation. They not only strategize, but roll up their sleeves and actually do the work,” explains Frances Randle, managing director of Knightsbridge Interim Management, a recruiting agency that specializes in placing interim executives across the country.

To get into the market, you need to get on the roster of recruiting agency. (Occasionally, interims find work directly, but usually a company hires through an agency.) And the price of entry is high because this type of hired help is expected to deliver results.
Knightsbridge requires a title of director of vice-president and up, and at least 15 years of experience. Pivotal Integrated HR Solutions has some executives on its roster who have “failed” retirement and are looking for a new challenge. “You can only get your handicap down so far,” quips Gord Wilson, managing partner, at Pivotal. The point is no freshly minted MBAs with only text book experience need apply.

In addition to possessing a wealth of experience, executives also need the right kind of temperament: have leadership qualities, be adaptable (size up an environment quickly and fit in) and be able to handle ambiguity well. “It’s not suited to those who like certainty and maintaining,” Mr. Coert says.

Contracts can run from a few days to longer than a year, says Murray Klippenstein, practice leader of the Vancouver office of The Osborne Group, which places interim executives. The recruiting agency negotiates a contract and fee on behalf of the interim executive and includes a percentage for itself.

In many instances, contracts are extended, and sometimes the company hires the interim executive full time (if the interim is open to that).
Fee arrangements vary. Pivotal typically negotiates a project fee and then charges the company an additional 20% to 25% for its placement services.So, for example, three candidates in Pivotal’s roster applied to fill a chief executive position at one company for 18 months. They set their rates at $200,000, $250,000 and $350,000, respectively.

The company selected the candidate charging $250,000 because the fee was reasonable and the person was the best fit culturally.

Knightsbridge charges a 25% to 30% margin, while The Osborne Group charges 10% to 25% for its services.

Mr. Coert says he makes more as an interim executive than he did as a staff person - $600 to $1,500 a day, depending on the type of work he is doing. But he also points out it is necessary to make more because sometimes temps do not have work and when they are working, they don’t get benefits, vacation pay or stock options. So forget the notion of cashing out as a multi-millionaire if a company’s stock soars.

The actual experience of working as a contractor is also different from being an employee. Unlike a staff position, overqualified interim executives will often step into a more junior role for a limited time.

Case in point: Ms. Byczok had worked as a senior vice-president of HR at a grocery retailer before signing on with Knightsbridge after leaving her employer as a result of an acquisition. She was fine taking on a temporary role as director of HR with less scope. “I had one day of orientation and there was no time for a six month learning curve. I had to hit the ground running,” she says.

And no matter how congenial the environment, you aren’t engaged in the same way. “While I’m dedicated to doing my best, it’s not the same as being an employee. I was at my last company 28 years and poured my heart and soul into my job. But I’m not looking to grow my career here,” Ms. Byczok says.

Mr. Coert has had a similar experience. “I’m not part of their team. I don’t participate in their social activities and don’t share their successes in the same way.”

So why would an executive with a long track record choose this employment path? Contractors escape the office politics to a large degree. This leaves them free to focus on the assigned task. “I’m not trying to please the boss and advance in the company, so I’m free to say what I believe,” Mr. Coert says.

Also, interim executives enjoy flexible working arrangements. “Lots of our clients have achieved a high degree of financial security already, and are looking for more work-life balance,” Ms. Randle says. Interim executives can decide to take six months off after a contract and travel. Try doing that in a staff job!

So while Ms. Byczok doesn’t know when her next job will turn up, she prefers the interim arrangement because she can work in a variety of businesses and also have time to take to the open road in her 1981 Porsche 911.

Executives for Hire

Executives for Hire: Are You in the Market?

by Laurel Hyatt Print Version (PDF)

Your vice president of operations is away on maternity leave for six months. Your chief information officer is on stress leave indefinitely. Your director of engineering is moving to another city because her husband got transferred.

What are you going to do? An executive search can take months and cost thousands of dollars. You don’t have the time or money.

More Canadian organizations are turning to contract executives to fill those gaps due to illness, death, resignations, mergers, expansions—you name it. Whether available through a firm or as individuals, executives for hire are seen as a smart staffing option.

Jacques Caussignac
The Osborne Group

At least a half dozen Canadian firms offer interim executive services, while that number is estimated at around 80 in Britain, and more than 200 in the United States.

If you haven’t considered it before, now may be the time to examine whether using the services of a contract executive is for you.

Why hire contract executives
The most obvious use for a contract executive is to temporarily fill in for permanent executives who might be ill, away on a sabbatical or another assignment, or who resigned suddenly. It’s hard for an organization to function without leadership at that level for even a short period of time. Yet it’s too impractical to conduct a job search in just a couple of days.

Organizations should do succession planning to determine who may take over executive positions on a long-term basis. But no amount of planning can prepare for unexpected departures or illnesses.

Saving money
Another reason to use a contract executive is to save money if the position is on a project basis. You may need a director in charge of finding a suitable location for a branch office in Calgary, but once it’s up and running, that position is no longer needed. Instead of hiring someone full-time and then having to find work for them elsewhere when the project is done, you can pay a contract manager for the three months it takes to acquire the land.

Interim executives can also help organizations save money if they don’t have the budget or need to hire a full-time executive. They may only need someone one day a week, or even one day a month, to help strategize, plan, and set direction. Try offering that kind of work to a seasoned individual looking for a permanent job and see how far you get. Yet contract executives build their whole careers out of juggling multiple assignments for clients, and thrive on the challenge of helping guide small businesses. They are especially valuable to non-profit groups, which notoriously lack the budgets to be able to attract top-calibre professionals with business savvy.

Pitching in
You may also need help during a growth phase. With economic cycles fluctuating widely, it’s very difficult to predict staffing needs, even at the executive level. If you’re not sure how long you’ll need an executive, rather than commit to a huge severance package in the event of a layoff, a contract executive can give you the same bang for fewer bucks. Contractors can help ramp up new product lines, recruit hundreds of staff, and develop new markets in no time flat. Are you automating your customer service function because your client base is growing by leaps and bounds? Why not hire a contract information technology professional to manage that huge project? If raising venture capital gives you the chills, a contract executive can provide instant expertise.

Full-time executives can also get swamped with work to the point where they would appreciate some temporary help to take over a few of their duties, and interim executives can be a solution there, too.

Contract executives can also be brought on board to help mentor your existing executives. If the organization is not large, it may not have anyone on staff with the experience, patience, time, and knowledge to help someone grow into an executive role. Maybe your CEO is too busy to train senior managers. Or perhaps you went too far with downsizing and need to bring in some expertise to guide those managers who remain. “For a president of a company, the worst thing in life is to be alone and when we come in as a member of his team, often we become a kind of a mentor, somebody they can talk to,” says Jacques Caussignac, managing principal of the Montreal office of The Osborne Group, which lays claim to being the only firm in Canada dedicated exclusively to providing executives on a contract basis.

Start-up companies can also benefit from contract executives to help get up and running quickly and share their expertise. During the high-tech boom, when 20-somethings were the CEOs of their own firms, interim executives proved invaluable in giving business guidance and expertise.

Solving HR issues
Hiring an interim executive can also make sense if there’s a shortage of qualified candidates to work permanently. You can’t leave your head of manufacturing position open for six months; better to have a contractor in place while you take the time to search for a perfect, permanent fit.

Creating a new position on a temporary basis is also a way to avoid the morale issues that would accompany such a move if it were permanent. If your organizational structure’s highest level is a director position, and you wanted to create a vice president of finance role, it would be hard to justify doing that for one department and not others. By making it a temporary move, you can get the job done and not threaten your existing executives and senior managers.

And you can even use an interim executive to help with the hiring process to fill a full-time executive role. They can develop job criteria, evaluate candidates, and then provide orientation for that new person.

In today’s uncertain economy, more organizations are cautious about hiring permanent staff, including executives. An interim executive makes sense. If for whatever reason a contract executive doesn’t work out, you can cut them loose with a minimal amount of notice or money. Most work on a per diem rate and you pay for what you get—no performance bonuses, stock options, company cars, or severance package. They have to be productive or you’ll say goodbye. Don’t try that with a full-time executive or you’d get slapped with a six-figure wrongful dismissal suit. “When you hire somebody from the sidewalk, you have to sign a contract with him and if after one year you don’t need his services anymore, you have to respect your contract and pay out,” says Caussignac. “But with us, it’s a variable cost.”

However, if an executive knocks your socks off, in many cases you can extend an offer to permanently bring them on board if they’re willing to give up the freelance life. Now that’s the ultimate probationary period. Talk about no-risk hiring.

Interim executives can tackle assignments that others wouldn’t be interested in. “If a company has a new young president, he might need from time to time—one day a week or one day a month—somebody who will help him to run the business,” says Caussignac. “You wouldn’t be able to find anybody to accept a job like that.”

There are probably more uses for interim executives—all you have to do is ask them if they can do it. “Our imagination is really the single greatest limitation that we have,” says Ron Newnham, one of the principals in The Osborne Group’s Montreal office who contracts his services to clients.

When not to hire an interim executive
Those in the business of providing interim executives say there are few times when you would not want to do it, but there are some important considerations.

If the position is highly specialized and requires a long learning curve, there’s no sense paying someone to get up to speed and then have them leave shortly. Better to hire a permanent employee instead. Contracts are better suited to positions that are generic—such as a director of communications—or specific to an industry.

Ron Newnham
The Osborne Group

Even though interim executives can save you money in the short term, their per diem rates are not cost-effective if you’re looking for someone beyond a few months. “If you are convinced that the only way that your organization can be properly served is by having somebody there on a permanent, full-time basis,” then interim executives are not for you, Newnham says.

Many large organizations can find the expertise in-house among someone willing to take a short assignment to fill a gap or work on a project, Caussignac says. “In that sense, they don’t need us.”

Also, in a large organization, if someone were passed over for an executive assignment in favour of an outsider, it could hurt morale. But “in small to medium-sized companies, they are so busy that the employees will understand that for two, three, or four months it doesn’t pay to shift all the organization to fill one seat for that period of time,” Caussignac says.

It may also not be advisable to a large organization, say one that’s publicly traded, to bring in a temporary outsider for a high-profile job such as the CEO’s position unless there was a real power vacuum or crisis. Shareholders could look askance at such a move, although Newnham argues that investors could in fact applaud any effort to get good value from a contract executive.

It’s not outsourcing
Perhaps some of the stigma that may have been felt around contract executives in the past was the notion that an organization was outsourcing a core function: management. But hiring temporary executives is not outsourcing.

Outsourcing usually involves handing over holus-bolus an entire area such as payroll or facilities management to a third party firm. It’s done by firms in their own offices, with occasional meetings with their clients.

But contract executives work on site as part of your team. Often, staff can’t tell the difference between an interim executive and a permanent one. Contract executives work alongside other personnel to achieve the same goals. They sign confidentiality agreements so they won’t give away any trade secrets.

And perhaps most importantly of all, the contract executives pass on their knowledge to your staff before they leave—something that outsourcers wouldn’t necessarily do or they’d be out of work.

Contract executives are sometimes confused with consultants, but they’re different. Not to knock consultants, but they freely admit that they are usually brought in to study a problem and advise how it should be fixed—not to fix it themselves. But contract executives roll up their sleeves and do what needs to be done within their mandate.

That’s another advantage to hiring interim executives: if you don’t have in-house expertise to carry out a mission, then hiring a consultant to tell you what to do is not going to get you very far.

Interim executives are sometimes hired by organizations looking for a fresh perspective on a problem. If you hire a contract executive through a firm, chances are you can draw on the expertise of many others in the firm who have gone through a similar problem. Let’s say your potato chip sales are down 27% from last year and your director of marketing is stumped. If you hired a marketing executive on contract, he or she could call on their colleagues in the firm with marketing expertise in the food industry to get their ideas on what to do to boost sales.

The Osborne Group, for example, has roughly 75 principals in its offices across Canada. If Newnham needs to bounce an idea or problem off a colleague, “there’s a wealth of knowledge there and talent and expertise that I can tap into.”

Interim executives can also bring objectivity because they’re not steeped in office politics. “We don’t have any background with that company and we don’t have any future with that company,” says Caussignac. “The president of the company can rely on us to ask questions and get real answers that are not disguised by any background, any things you’ve done in the past with that company.”

Executive staffing firms are also not temporary agencies. “We’re not in the temp business. We’re not in the consulting business. We are in the contract executive services business. We become a part of our clients’ organization when we go in to execute a mandate,” Newnham stresses.

Interim executives not only have senior management experience, but they have experience doing it on a contract basis, and know what they can accomplish in two weeks or two months, and have a process in place for organizing their work.

How it works
Contract executives basically come from two sources: firms that specialize in executive staffing, or individuals who freelance independently—often senior managers who are retired from a company and return on a contract basis.

Choosing an executive
An executive staffing firm may send a shortlist of two or three candidates to meet with you to discuss your needs and see if there’s a cultural and personality fit, especially if the assignment will last a few months. “You’ve got a small window of opportunity to make an impact and if you get off on the wrong foot, if you’re having trouble making eye contact with each other in an initial meeting or you really don’t share the same values that the respective organization espouses, then you’re not a good fit,” Newnham says.

If the assignment is short, take the time to hire a candidate who can hit the ground running, Newnham recommends. “You don’t want to have a revolving door at your front door. You don’t want to have people coming in and out of there every week,” he says.

Check out the executives’ resumes and credentials. You should be able to veto any candidate you don’t feel would be suitable.

You can choose an executive based on their experience in a particular role (such as chief financial officer) or in your industry. Many contract executives have no fewer than 20 years of management experience and do not take assignments in an area they feel they are not qualified for.

Negotiating a contract
Most firms and individuals charge a per diem rate, which you may be able to negotiate. A typical assignment lasts from three to six months but can usually be cancelled at a moment’s notice. “We’re a variable cost for clients. When they need us, we’re there. When they don’t, we’re not, and they only pay for the service that they need,” Newnham says.

Both sides sign a contract with the chosen executive but the terms may be flexible, allowing for changes of duties or length of time as the work progresses. The client is more or less in the driver’s seat with the working relationship. “They’re not signing a blank contract that’s difficult for them to get out of,” Newnham says.

Nor do clients have to pay the headhunting fees associated with hiring a full-time executive, which can often run between 20% and 25% of the individual’s first 6 or 12 months of salary, Newnham points out.

Up and running
The executive can often start within two weeks of the initial meeting and already knows what work needs to be done. “We hit the ground running,” Newnham says. “It’s not like dealing with a traditional consulting firm, for example, where you may deal with a senior partner at the outset to negotiate a business deal with them and then find out when the time comes to execute the actual work to be done, a junior person is assigned.”

Before the executive starts, send a memo to employees to let them know what the person’s mandate and tenure will be. “That in itself is an excellent form of introduction and it also allays fears that people could have seeing somebody come in. We’re not there as hatchet people, we have a function to do,” Newnham says.

At the start of an assignment, make sure you set objectives and timelines with the executive and hold him or her accountable for it, Newnham suggests. Even though interim executives work independently, you should still monitor their progress to confirm they’re on track.

Within roughly a month, most executives are comfortable in their interim role, Newnham says.

Clients may wonder how much attention a contract executive can devote to a job if they’re only working a couple of days a week, or for a few months. But the executives themselves say the work is much more intense than in a permanent, full-time position.

“Even if it’s only one day a week, our mind always works for that customer, 7 days a week, 24 hours a day, so the client gets more than one day a week,” says Caussignac.

Laurel Hyatt is Managing Editor of Workplace Today®

Filling the Gaps in Management

Canadian Association

Interim Executives Ready to Fill Immediate Gaps in Association Management

By Jane Rounthwaite, Principal, The Osborne Group Print version

When executive directors and CEOs of non-profit associations leave to take on new challenges or perhaps retire after many years of service, a huge hole must be filled quickly to guarantee the health of the organization.

In many cases, there is time to manage the transition, but sometimes executive directors/CEOs leave suddenly for a variety of reasons – illness, family obligations or other personal reasons. Regardless of the why, it’s left up to the board of directors – volunteers – to figure out how to fill those shoes.

Taking the time to fill the position with the right person is a smart course of action. However, some associations may require someone to take the helm almost immediately. Sometimes a board member might be the right choice, albeit temporarily, or the organization is lucky enough that the outgoing CEO or the board, through their network of contacts, can find someone who can quickly jump in with both feet, either for the short term or long term.

However, if none of these choices are available, an association looking to fill either a CEO or senior management role should consider an interim executive instead of risking the health of the association as the management hole waits to be filled. Interim management involves the temporary assignment of a seasoned executive to manage an organization through a period of transition, crisis or change.

Interim management has been a widely-used and accepted business practice in Europe and the United Kingdom for more than two decades, born out of the need and desire for companies to avoid the complicated labour laws and resulting costs of hiring and firing. Traditionally interims were used for gapmanagement, filling a vacancy on short notice due to circumstances such as promotion, restructure, resignation, peaks of activity or maternity and medical leaves.

Over time, the concept has matured and the benefits of an interim executive have moved to the forefront of most organizations. While it’s still a relatively new concept in North America, it’s taking hold in Canada. The world is changing rapidly through globalization, with organizations and leaders being acutely aware of costs and the need for them to be constantly pursuing available, effective, cost containment alternatives.

Indeed, boards of directors are finding they are under closer scrutiny than ever before, either by shareholders or, in the case of non- profits, funding bodies and membership.

One of the major benefits of utilizing interim management is to fill management vacancies within days, thus allowing an association to keep moving forward with ongoing strategic initiatives. Because there are no long briefing sessions and interview processes, an experienced interim manager can be introduced quickly, hit the ground running, be readily available and be paid a daily rate. During the assignment of an interim manager, associates can draw on the experience to assist in the recruitment of the full-time replacement or newly created position and smooth the transition period of the new incumbent.

A departing executive director or CEO is not the only situation where an interim executive makes sense. Most associations are resource-constrained and often the CEO can get bogged down in the day -to-day operations of the organization. Consequently, they aren’t able to get to the more strategic projects that are on a wish list or developed by the board of directors.

Since associations are generally comprised of staff devoted to administrative tasks, an interim executive is an excellent choice for specific short term projects, such as a membership drive, a process improvement exercise, or re-branding of the association to keep it relevant. Whether the interim executive is brought in to temporarily fill a senior position or for a specific initiative, they can often be a catalyst for new ideas that benefit the association, especially those looking to make a change in direction to enhance their appeal to both existing and potential members.

In order for the interim executive approach to truly succeed, however, the association must prepare for their arrival, much in the same way a corporation prepares for a fulltime hire to start.

First, the association should build parameters around the interim executive’s mandate by ensuring the role is defined and what is expected by establishing benchmarks to evaluate the performance. This needs to be clearly communicated to interim executive.

Second, more than one person should be involved in the interview process, as the interim executive needs to deal with different parts of the organization and in order to truly hit the ground running, they must build relationships quickly, whether it’s with the board of directors, administration staff or volunteers.

Third, the association should communicate to staff, the board, and senior volunteers the arrival of the interim executive, the reason why, their experience and what they are expected to help the organization with (if it’s not to fill the CEO/executive director role).

Aside from doing the defined job, the interim executive gets to observe the association from within and can often provide valuable insight and advice to the board of directors. Additionally, they usually have an extensive network of other experienced professionals that can assist and advise in a wide variety of areas if required.

There are a few other things that should be considered and in some cases are more relevant to non-profit associations than corporate enterprises:

· An interim executive director/CEO should be exactly that: interim and not a candidate for the fulltime job. This keeps them clear of politics while a long term candidate is found, either by the board of directors and / or the outgoing executive director. This also allows them to take an objective view of the organization and act as a coach to the board, staff and volunteers.

· If you’re drawing on an interim executive who has a corporate background, be sure they understand the budget constraints that are the reality for non-profit associations – it’s often similar to the world of SMBs.

· Talent drawn from a corporate background – or even a government agency background – should have experience working with a variety of stakeholders including volunteers and members as well as some exposure with the not-for-profit mentality.

· If it’s for a project rather than filling a senior role, make sure they have specific experience for the task at hand and be sure to manage them as a finite resource – you don’t want them getting bogged down in the day-to-day operations.

· Finally, it’s important to point out the difference between an interim executive and a consultant. The latter can be brought in – usually at a premium price – to investigate, analyze and make recommendations, but often they’re not the one who will make the changes.

An interim executive takes a hands-on approach, whether it’s as the executive director or a project manager, evaluating and implementing as they go. They can also be brought back at a later date for new projects and as a result, they already understand the nature of the association and can quickly add significant value during the return engagement.

By Jane Rounthwaite, Principal, The Osborne Group

Part time Executive, Full time Value

National Treasuer

PART-TIME EXECUTIVE, FULL-TIME VALUE
Small and mid-market firms can turn to seasoned CFOs as interim executives

By Ken Goodwin and Jane Matthews Print Version (PDF)

THE ROLE OF Chief Financial Officer is no longer a luxury that only large corporations can afford. Smaller mid-market companies are now finding they require the expertise of someone with big-company experience. The challenge is hiring one at an affordable cost.

It’s not something mid-market or smaller firms can afford to ignore. Today, the CFO is no longer relegated to a silo of balance sheets and numbers. The CFO plays a strategic role in all operational elements of a large organization. Without a FO, mid-market and small companies are at a competitive disadvantage. They might be meeting their bookkeeping needs without one, but the global nature of business makes a CFO with strategic financial insight a must. This is especially true when companies deal with current and potential investors and with financial institutions and regulatory bodies.

Key functions such as development, sales, marketing, IT and service delivery don’t just require a budget, they also require smart planning to allocated funding strategically to support the overall success of a company. A middle management accountant, no matter how skilled at managing and balancing the books, cannot provide that level of insight and expertise.

In addition, if a mid-sized company’s president or CEO (often an owner or co-owner of the business) tries to fill the shoes of a CFO, the task may distract him or her from other critical duties.

Smaller organizations may not have a budget to hire a seasoned CFO. But they can tap the talent pool cost-effectively in other ways.

Some organizations turn to consultants, with mixed results. Consultants can identify problem areas and prescribe a course of action. But a CFO adds real value in the execution of a strategy, a time-consuming task that makes a consultant’s fees prohibitive.

A better choice is an interim executive. A company may not have enough work to keep a CFO busy full-time. But the nature of the part-time work may require executive-level expertise. A seasoned interim professional with relevant experience can help the organization grow until it can justify the cost of a full-time executive. The organization gets the highest level of expertise but only for the time required

Companies in Europe and the UK have used interim management for more than two decades as a way to avoid the complicated labour laws affecting hiring and firing. They used interims initially for gap-management, filling a vacancy on short notice after sudden surges in activity or a promotion, restructuring, resignation or maternity and medical leave. Now, smaller companies use interims as a matter of course.

Still relatively new in North America, the concept is becoming more familiar in Canada. With the emphasis on cost containment in a global environment, public, private and non-profit organizations have to respond effectively to the demands of their stakeholders or risk failure.

Organizations that need CFO’s expertise but can’t afford to hire one full-time might consider leasing an executive for a defined period to implement changes, fill unexpected gaps in the company or manage a critical initiative. The founders of young and growing technology companies, for example, often try to do too much on their own. Yet a seasoned professional can often help them to address financial issues such as financing or pricing so that they can put their own time to better use.

During the assignment, an interim CFO can help a company in recruiting and selecting a full-time replacement, then smooth the transition period and provide management as the new executive fills the position.

In the meantime, the interim executive can provide advice and support to the company’s CEO, who often becomes isolated in a mid-market business. Aside from doing the defined job, the interim CFO can observe the organization from within and provide valuable insight and advice to the CEO.

From capitalization and service agreements to pricing models and market expansion, an experienced executive can often contribute proven solutions and clarify priorities and challenges. He or she can also tap into an extensive network of other experienced professionals for assistance and advice.

Ken Goodwin & Jane Matthews are senior principals in Ontario with The Osborne Group (www.osborne-group.com)

No Retirement for these Boomers

NO RETIREMENT FOR THESE BOOMERS
Retirement "boring" and "discusting"

By Frank Luba, The Province Print Version (PDF) Published October 18, 2007

Vancouver contract-management professional and developer John Cowan doesn't plan to retire at 65 so he can spend time gardening.

"I couldn't think of anything more disgusting, to be honest with you," says Cowan, who is 51 and in the middle of that group known as baby boomers --those born between 1946 and 1964.

A report released today by BMO Financial Group indicates that, like Cowan, many boomers expect to keep working when they hit retirement age.

The conclusion comes from an Ipsos Reid survey of boomers who have either retired early to start their own businesses or plan to do so.

Fifteen per cent of the survey group even say they intend to keep operating their businesses until they die. They're not going to be coasting, either, the study says. Some 12 per cent indicate they are or will be working more than 40 hours a week, although 44 per cent are or plan to spend between 26 and 40 hours a week at work. Cowan decided to become an entrepreneur two years ago, when the forestry company for which he was a senior manager was bought.

John Cowan "I viewed it as an opportunity to pursue, with some risk, some interests that I'd had for some time," he says. Cowan, a principal in the Osborne Group and owner of Decourcy Management, can't imagine retiring. "I would be bored. I need something to do. I have energy that has to be released on an ongoing basis."

Judy Brooks is 43 and at the youngest end of the boomer curve. But her latest venture, Blo, is her second business after her partnership in Proactive Resolutions, a conflict-management company. Blo, in trendy Yaletown, isn't a hair salon but a "blow-dry bar." "All we do is wash, blow and go," says Brooks.
She's not surprised some boomers aren't going gently into that good night of retirement.

"People of our age category are different than my parents were when they were in their 50s and 60s," she says. "I think we feel differently. "All my 50- and 60-year-old friends still think they're 40," she says.

"If they're guys, they think they're 20."

That enthusiasm is valuable for an entrepreneur. "We have enough youth and passion to drive businesses and lead people," says Brooks. "When you balance that with a little bit of experience and wisdom, then it becomes pretty powerful."

Frank Luba is a writer for The Province. He can be reached at fluba@png.canwest.com

Tapping Temporary Talent

CMA Management

Tapping Temporary Talent

Interim executives can hit the ground running on short notice. For small and medium-sized businesses, this can create substantial opportunities

By Ken Goodwin and Jane Matthews Print Version

No company is immune to executive churn, even those that make best efforts to retain and reward top talent. Unexpected events in a person’s life can force them to leave a great job with a great company with almost no notice, leaving the organization with a management void to fill.

While bigger firms may be able to rearrange a larger executive team to fill the gap, most companies can find themselves missing key expertise that must be filled more quickly than an executive search process allows.

Instead of risking the health of the business as the management hole is waiting to be filled, companies should consider interim executive management as an effective short-term solution.

Interim management involves the temporary assignment of a seasoned executive to manage through a period of transition, crisis or change within a business. There are a number of different situations that can create a need for an interim manager: crisis management, sudden departure, extended leaves, managing change or transition, MBOs and IPOs, mergers and acquisitions, and project management.

An international trend

This approach has been a widely used and accepted business practice in Europe and the U.K. for more than two decades, born of a need and desire for companies to avoid the complicated labour laws and resulting costs of hiring and firing. Traditionally, interims were used for gap management — filling a vacancy on short notice due to circumstances such as promotion, restructure, resignation, peaks of activity or maternity and medical leaves.

Over time, the concept has matured and the benefits of an interim executive have moved to the forefront of most businesses. While it’s still a relatively new concept in North America, it’s gradually taking hold in Canada.

One of the major benefits of using interim management is to fill management vacancies within days, thus allowing the business to move forward. Because there are no long briefing sessions and interview processes, an experienced interim manager can hit the ground running, be readily available, be paid a daily rate, and introduced quickly.

During the assignment of an interim manager, companies can draw on their experience to assist in the recruitment of the full-time replacement or newly created position, smooth the transition period of the new incumbent and provide support for management.

The CFO: a mid-market gap

One role that can be the most critical for all companies is that of Chief Financial Officer. It is no longer a luxury for only large corporations; small and mid-market companies are now finding they require the expertise of someone with big company experience. The challenge is being able to afford to hire one.

Today, the CFO isn’t relegated to a silo of balance sheets and numbers. If they are taking their rightful strategic role in all operational elements of large organizations, mid-market and small companies are at a competitive disadvantage. Even if their bookkeeping needs are being met, the global nature of business makes a CFO with strategic financial insight a must. Key functions such as development, sales, marketing, IT and service delivery don’t just require a budget, but also smart planning of how these funds should be allocated and how they contribute to
the overall success of a company. A middle management accountant, no matter how skilled at managing and balancing the books, cannot provide that level of insight and expertise.
In addition, if the president or CEO (often an owner or co-owner of the business) tries to fill the shoes of a CFO, it often distracts them from other critical duties. Mid-market and small companies must address this management gap because often they may be competing with large, global companies in their respective markets and are expected to be just as sophisticated. This is especially true when dealing with current and potential investors and other financial institutions such as regulatory bodies and banks.

In-house advice.

While some organizations turn to consultants, the results are sometimes mixed. Consultants are effective at identifying problem areas and prescribing a course of action, but lasting benefits come through execution, and hiring consultants for execution can be cost prohibitive for some organizations.

An interim executive that is brought in as part of the executive team provides a hands-on approach and can start solving problems as soon as they are identified, rather than taking the “analyze everything first then execute” approach.

Another side benefit of hiring a seasoned interim executive is the organization is getting an experienced advisor. The life of a CEO in a smaller, mid-market business can be lonely. While a board of directors or advisory board provides much needed support on driving the business forward, any mentoring or coaching tends to be reactive and based on a view from outside.

Aside from doing the defined job, the interim executive gets to observe the organization from within and can often provide valuable insight and advice to the CEO. Whether struggling with issues around capitalization, service agreements, pricing models or new market expansion, an executive who has “experienced it all” can bring proven solutions to the table and offer clarity on priorities and challenges. Additionally, they usually have an extensive network of other experienced professionals that can assist and advise in a wide variety of areas.

Prepping the organization

For the interim executive approach to truly succeed, however, the organization must prepare for their arrival, much in the same way a company prepares for a full-time hire to start.

First, the company builds parameters around the interim executive’s mandate by ensuring the role is defined and what is expected by establishing benchmarks to evaluate the performance. This needs to be clearly communicated to the interim executive.

Second, it’s beneficial to involve more than one person in the interview process in order to ensure the right fit for the organization. As well, this quickly establishes some key relationships which help the interim start contributing from day one.

Third, the business should communicate to staff the arrival of the interim executive, the reasons why they are coming onboard, their background and experience, what they are expected to help the company with, and the expected length of the engagement.

And finally, (and believe it or not, this can be forgotten) the company should work out logistics of where the person will work and how they will operate, including basic items such as security access, an office, a desk, a phone, and a computer or an e-mail address.

Any firm that sees a gap in its executive set should look to an interim management model as an affordable, if temporary option, to meet short-term business needs.

Ken Goodwin and Jane Matthews are senior principals with The Osborne Group.

Temporary Theory

CMA Management

Temporary Theory

Hiring an interim manager might be the solution for time-strapped company execs

By Joe Castaldo Print Version

Pat Loduca found himself so caught up in running the day-to-day operations of Upper Lakes Group earlier this year that the CEO realized he wasn’t thinking about growing his Toronto-based business.

And his 10-member management team was just as swamped. But something had to be done to keep the marine shipping company competitive. “We really needed to step back and focus on where we wanted to take the company,” Loduca says. Hiring another full-time executive would have been a lengthy process, so Loduca turned to The Osborne Group, an interim executive management agency headquartered in Toronto, and essentially rented one.

Using temporary management can be ideal for cash-strapped companies that need to tap into the expertise of a seasoned executive but can’t justify hiring one fulltime. In Loduca’s case, he hired a vise-president of strategic planning to restructure the company’s various business groups and identify long-term opportunities for each, a process that four months later is still ongoing. Interim managers are more typically called upon for smaller projects.

That was the case for Jamie Cuthbert, president of graphic design firm and sign manufacturer Saitech International, when he landed an order in July to build touchscreen kiosks for 2,000 auto repair shops across the U.S. The task was too much for his company to deal with, so Cuthbert hired an executive from Atticus Interim Management in Toronto to lead Saitech through the assignment’s technical and quality control aspects.

Once completed, Cuthbert says his company will be better equipped to tackle larger projects. “It’s been very good at providing us with skills we can use over and over,” he says. The concept of interim management flourished during the 1980s in the U.K., when then-prime minister Margaret Thatcher privatized governmentowned companies, creating a need for experienced managers, but it isn’t as common here in Canada.

“Many times we’ll go into a business and they ask us, ‘Where were you three years ago? We could have used you,” says Jane Matthews, an executive at The Osborne Group. She expects the popularity of interim managers to grow, given the number of small to mid-sized businesses in Canada and the high demand for skilled leaders.

Such services don’t come cheap, however. Corporate clients should expect to pay between $1,200 and $2,000 per day for an executive. At that price, clients should be sure to assess the quality of potential managers, Greg Petkovich, president of Atticus, also stresses that temporary executives are not meant to replace consultants.

Still, Cuthbert, for one, says an interim manager is a better solution for his money. “Consultants are of little help to entrepreneurial companies that are running flat out,” he says. “We don’t need more people telling us what to do.”

By Joe Castaldo

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REVISITING THE FOUR PS

Make sure to measure success

Top Gun For Hire

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Interim Executives Ready to Fill Immediate Gaps in Association Management

PART-TIME EXECUTIVE, FULL-TIME VALUE Small and mid-market firms can turn to seasoned CFOs as interim executives

NO RETIREMENT FOR THESE BOOMERS Retirement "boring" and "discusting"

Tapping Temporary Talent

Interim executives can hit the ground running on short notice. For small and medium-sized businesses, this can create substantial opportunities

An international trend

The CFO: a mid-market gap

In-house advice.

Prepping the organization

Temporary Theory

Hiring an interim manager might be the solution for time-strapped company execs

Wanted: Part-time CEO
Young technology firms must leverage seasoned interim executives

PART-TIME EXECUTIVE, FULL-TIME VALUE
Small and mid-market firms can turn to seasoned CFOs as interim executives

NO RETIREMENT FOR THESE BOOMERS
Retirement "boring" and "discusting"