A New Year, a new decade and a time for change.

It’s time to reflect.  Not just on another year gone but on the next 10-year horizon.

Economic growth should be stimulated now the UK has left the EU and entered a transition period until the end of 2020.  This, in theory provides at least 11 months of stability and with the shackles off, businesses can now finally plan with some certainty after previous deadlines were not stuck to and the UK remained stuck in Brexit limbo.

Businesses have responded quickly to the UK’s new political landscape according to a recent survey by IHS Markit and the Chartered Institute of Procurement & Supply (CIPS).  It suggests for example, that the services sector stabilised in December and that order books had picked up, with optimism at its highest level for 15 months.  This concurs with other surveys purporting that Britain’s economy is on course for a strong 2020. The services sector is particularly important because it accounts for around 80 per cent of the British economy.  It also happens to account for a large proportion of our client base.

Organisations need talent to grow and push forward with resourcing plans.  We are entering a period of significant change and the interim world has to adapt.  With the ongoing Brexit twists and turns and the immediate changes to the reforms to IR35 due in April 2020 to the private sector, there are currently more questions than answers.  I believe IR35 does provide an opportunity to ensure that interim assignments are more clearly defined and scoped with pre-determined timescales and objectives.   It reminds me of the ‘true’ interim market when this was the expectation and the norm before the new breed of interim became a thing, creating a ‘grey’ interim world where  it became a convenient route to a permanent role and over use of the title culminating in the growth of the ‘interim’ interim.

Our role is to consult with businesses that all face similar challenges and all need certainty and clarity to move their own organisations forward.   After all, how can we expect businesses to plan if they don’t know what they’re planning for? Resourcing is part of this planning process and certainly makes up the bigger picture when implementing New Year and new decade strategies.  Without the people to execute the plan, nothing happens. Without the flexibility and deliverables an Interim resource provides, the business can’t change.  Without the option of bringing in someone to take advice from, how are you sure the right decision or direction is being taken?

Doing nothing is not a strategy.  Businesses will continue to resource experienced executives in times of change, transformation, restructuring, crisis etc. but the reforms to IR35 quite frankly contradict the modern world we now live in where the effects of technology are quite profound.  Many organisation are becoming more automated regardless of sector, AI is growing and digital transformation is firmly on the agenda.  Flexibility is key. The next 10 years will bring about profound change and resourcing flexible talent must form part of the strategy.

For further information on Macallam Interim Resourcing or for a confidential discussion please contact Steven Wynne, Managing Director on 01423 804900 or steven.wynne@macallaminterim.com  or visit www.macallaminterim.com

 

The Importance of Being Earnest

Brexit, Trump, Leicester winning the Premier league, the passing of musical geniuses – the list goes on.  Let’s face it, we have had everything thrown at us in 2016 but there’s one thing that remains certain and that’s change.    We are living in uncertain times and this will inevitably affect the decisions of organisations and their appetite to forge ahead with plans.  This uncertainty is creating the need for change on the one hand but paradoxically is leading to inaction on the other due to an over cautious approach.   It would be a huge mistake for organisations to do nothing with the risk of  market share loss, acquisition targets slipping through the net and losing key talent to name but a few.   

Leaving the EU is a mammoth task.   The globalisation of the UK is firmly on the agenda and although it will take years to go through this messy divorce, hopefully the UK will be stronger for it.  But what happens in the meantime?   It’s the uncertainty that will create problems as ‘projects’ are put on hold.  Clearly for businesses in crisis, something has to be done urgently but the need for an interim isn’t always for reasons of crisis management.   

Organisations in need of transformation, restructuring, project / programme management, business improvement or anything that results in change continue to need people to help drive them forward without distraction.  What has become prevalent  is the need to put a compelling case forward firstly as to why interim is the right/best solution and then it’s down to the interim to provide reassurance and a convincing pitch as to why they should be selected with some quantification around the return on investment (ROI). 

It matters now more than ever to make a difference but how can an interim executive ensure they make a ‘real’ difference and deliver in a way that meets with expectations? There are a number of skills, competencies and personality traits needed to succeed as an interim.  Here are a few;

Honesty – providing an open and honest account of the findings.  Interims are able to do this (on the proviso it’s delivered in a professional way) without fear of job security, weakening promotion prospects etc.  The value to management, shareholders, stakeholders and employees is immeasurable. Quite often the day to day gets in the way and organisations can’t see the wood for the trees.

Delivery – hugely important and ultimately will be the basis of measurement of how successful the assignment has been.

Speed – expect to be parachuted in to new environments, grasp what the business does, build relationships often with customers, suppliers, and subcontractors and address the issues causing the challenges.  The problem should be solved and solution implemented as quickly as possible.

Objectivity – an impartial view of analysis undertaken provides the leadership team with a balanced, honest opinion without the person delivering the message having another agenda. 

Coaching / Mentoring - this is always part of the brief whether or not it’s been clearly defined.  This can be for members of the leadership team, management team or just generally a style that should be adopted when leading people for the short term.

Engaging with stakeholders – interims often find themselves in quite complex scenarios with multiple stakeholders that have to be taken on the journey.  Building relationships is part of the remit.

Communication – can’t be emphasised enough.  Any change programme’s success is dependant on how engaged the people are. 

Don’t get drawn in to BAU issues – the reason the client has engaged an interim in the first place is because they don’t have the internal capacity or capability to solve the problem.   If the interim finds themselves in a firefighting situation, they are likely to take their eye off the ball from the original set of objectives.

Confidence and gravitas – the fact that someone has embarked on a career as an interim is borne from having achieved and delivered during a corporate career at board, functional or in a business leadership capacity.  This knowledge and experience should enable the interim to tackle challenges with the necessary agility and be chameleon like in approach.  

Managing the exit – once the agreed objectives have been delivered it’s important to manage an exit at the appropriate time.  The interim should avoid hanging around unnecessarily as this will quickly diminish the value created from the good work undertaken. 

Leaving a legacy – be remembered for the right reasons.

This is all underpinned by the raison d'être of adding value, making a difference and ensuring a return on investment.   It’s the little wins that can make the biggest difference and mopping up the unexpected problems where the interim can go the extra mile.

In order to ensure a successful assignment for all parties it’s important to be honest and how this is delivered will determine the added value in the long term.  After all, the results of this assignment will determine the reference received and how quickly the next one is secured.

For further information or a confidential discussion about how we can help please contact Steven Wynne on 01423 704153 or email steven.wynne@macallaminterim.com

Brexit and the Circular Economy

Having attended the RWM / Energy event last week, I was interested to update on latest developments with the Circular Economy, Energy from Waste and Recycling / Reprocessing / Waste sectors.   What became apparent is that whilst the UK is pushing to develop a circular economy there are huge opportunities in what is now becoming the Global Circular Economy.  This got me thinking.  Will Brexit (whatever Brexit means) have any impact on the objective of achieving a world where we reduce resources and extend the lifecycle of what we use and recycle as much as we can if we leave the EU?

For those unfamiliar with the terminology the circular economy is a modernised version of the old ‘reduce, re-use, recycle’ mantra with the objective of stripping out waste, streamlining supply chains and converting what we can into energy.  The market opportunity is huge and with the changes afoot the Global Circular Economy could be a $1 Trillion opportunity.  In the UK alone this could equate to £3-6 Billion and the creation of 50,000 jobs.  

All the respective sectors and businesses within those should all be contributing.  Ultimately we need to reduce the amount of waste going to landfill and I believe any businesses producing waste of any description has a duty to fulfil.  This then extends to the domestic world and peoples behaviours in their homes, buying habits in terms of purchasing what you need not what you think you need and everyone contributing to a less wasteful existence.  These behaviours are interchangeable as habits become the norm if practised often enough and what might be a move to reducing the weekly shopping bill at home can actually extend into achieving resource efficiency in business.

Education, Legislation and communication are key and it takes the leaders of business, Government (central and local) to push this down from above.  After all there are money making opportunities from the renewable sources of energy that can be created, the cost savings in reducing materials spend and reducing waste;  so why wouldn’t you?

It is more important than ever that we work together what with an ever increasing population, rising commodity and material prices and working through global supply chains to reduce firstly what’s purchased and then secondly what we send on a journey.  Making that process as efficient as possible is imperative in order to attain the goal.

What can be done when so much change is needed?  A start would be to ensure the best and right talent is being utilised to full effect.  Engaging experts in the field that can drive forward the agenda within companies seems to me to be a hugely important part of the achieving the goal.  Individuals without the distraction of day to day BAU that can push the difficult tasks and drive a cultural change within the business.  Additionally those responsible for the corporate social responsibility agendas in businesses have a great opportunity to drive a zero- waste and re-use culture which in turn will result in improved efficiencies and more profitable operations.   

There are of course many businesses now involved in the resource efficiency market from those involved in building and operating Energy from Waste plants, Recycling, Renewables and so on that are all running businesses and making profit from this. Waste has become a valuable resource and although we should all try to minimise it, it’s hugely important that it’s dealt with in the right way and in the right place.

The Waste sector has been driven by EU legislation for quite some time and it’s vital that the UK does not lose ground.  We need more progress.  Europe’s economy has created vast wealth in part attributable to the trend of improving and re-using resources.  Sub industries have grown and flourished and can go further across Europe and indeed globally.  It was in fact the UK that was an early adopter and leader in the EU of addressing environmental issues with the introduction of the Control of Pollutions Act 1974.  Whether or not Brexit will have any impact on this remains to be seen but it seems to me that as part of the mammoth task that lies ahead in terms of managing an exit (possible) from Europe, we need new legislation in place to reach our goal of attaining Zero waste businesses and ultimately cities to co-exist with the ensuing trade agreements that are going to follow.

Steven Wynne

For further discussions please contact Steven Wynne at steven.wynne@macallaminterim.com or telephone 01423 704155

Brexit, and the future of European resourcing….

Martin Sorrell of WPP suggested the Remain campaign was out of touch with the concerns and views of the majority of the electorate. The focus on the rational economic argument, neglecting the emotionally-driven issues of sovereignty and immigration, was an error.

The full consequences of Remains’ failure are hard to predict but they will likely include slower growth rates in the UK and beyond. There will be considerable uncertainty for some time, which will slow decision-making and deter economic activity and investment. Delaying triggering Article 50 feels like there was little expectation of Brexit succeeding, little plan for afterwards, politicians resigning and in a time when businesses need swift action to reduce uncertainty.

All this in a business world that has become self burdened with caution, risk-aversion and short-termism. We have already seen examples of investment being put off or cancelled altogether, the faltering Tata Steel sale process, or the delayed EDF Hinckley Nuclear investment are cases in point. Besides, this could have serious implications for our National ability to satisfy future UK Energy demand (if the lights start going out, will the Brexiteers be ok with that?), and future job loses.

However, we have no choice but to look ahead to a post-Brexit future and will that be so different politically. After all of this upheaval, will we revert back to something which operates in a similar way to pre referendum? If the UK needs to make concessions on free movement of people and immigration in order to retain trade relationships – are we not back to Square one?

Paradoxically, WPP and other firms may become more European than ever. While the UK may have voted to leave Europe, companies have not. Four large top 10 markets are in Western Continental Europe – Germany, France, Italy and Spain. Here it’s likely to spur recruitment of people employed in European markets faster than in the UK.

The strategic reaction to Brexit may be to pursue a greater focus on the fast-growth markets (“emerging” economies); a greater focus on data and digital; and (another irony) a greater focus on getting people to work together more effectively across national and functional boundaries for the benefit of clients.

Working together for its clients (the electorate) is something the UK’s politicians are finding hard to do. After a vote for division and isolation, and a descent into political in-fighting, this message of unity is one that Westminster would be well-advised to listen to.

By Duncan Carter, Director at Macallam Executive Search and Interim Management