Cognitive Bias

 

 

One of the earlier interim industry benefits (>10 years ago, before the 2008 financial crisis), was an independent interim’s ability to challenge client ‘cognitive bias’, for example, by suggesting better solutions to ‘the way things are done around here’.

The interim’s ability to tactfully challenge came from experience across many clients and, especially, many sectors.

Client Challenge Example

 

I recently challenged cognitive bias at a Contracting industry client. Long-standing family and industry mind-sets and practices were tested to create new solutions collaboratively.
                                           

Example solutions included technologically advanced (for a ‘basics’ industry), end-to-end digital transformation of core processes and clean data sources for better decision making, having endured paper-based processes and dirty data for many years.

Imagine, if you will, basically educated road workers using mobile devices to capture risk assessment evidence (photos), to track job workflows and to reschedule work priorities; quite a transformation!

The client also turned around from loss-making to profitable in nine months on the back of this, and other cognitive bias challenges.

Commodity Driven Candidate Selection                                       

The Interim Service Provider (ISP) challenge to clients’ mind-sets via their selected candidates appears to have taken a back seat in recent years. It has been replaced by narrowly specified candidate sector experience and CV brokerage introduced from contractor/commodity recruitment practices.

Interims now tend to meet with clients via ISPs selected for client sector fit rather than the ability to champion change and transformation based on broad skillsets and agnostic sector experience.

I think this practice does not well serve UK PLC and the client-ISP-interim industry.

As one respected interim recruiter put it recently: “'More of the same' only results in 'more of the same'.”

IR35 Likely Effects

An evaluation of the proposed 2020 IR35 changes is a likely dramatic impact on the current interim and contractor industries.

There will be a confirmation of independent interims outside IR35; and contractors becoming ‘part and parcel’ of the client and inside IR35, effectively employees.

The New (former) Interim Approach

The commodity-based marketing practices which entered the interim space ten plus years ago will be replaced, if not already, by consultative approaches to client solutions, above, say, £700 per day interim rates.

Multiple CVs emailed to clients will become passé, and ‘chats over coffee’ will make a comeback for both ISPs and interims to more fully explore solutions to critical client problems.

One recently visited IIM Platinum recruiter said he does not send CVs to clients, preferring to book coffee slots for clients to see three interims he knows can do the job.

I encourage clients and interims (when in an assignment, as clients) to take up this approach and ask ISPs to send interims they trust and know can do the job, rather than wade through copious CVs to select people, to then see as well.

Why should clients do all the work?

Perhaps this new approach could also serve clients in contractor selection?

Client Education

Key to a transition away from CV brokerage to chats over coffee with interims known to be able to do the job is client education.

Interims (per the IIM Surveys) find 60% of their assignments themselves, and ISPs the remaining 40%.

In my view, both interims and ISPs must educate clients in new ways of getting the best ideas, talents and capabilities for critical client change and transformation needs.

All three parties in the interim industry will win by preferring a consultative interim industry approach over client CV filtering.

ISPs will need to let go, though, of their fear of losing business by not sending many CVs to clients just in case they might send the right one.

ISP Branding

Another interim recruitment group I recently met has for quite some time separately branded their interim and contractor businesses not to confuse clients, and to focus consultants with the right skills on the right approach that fits the required client solution (interim or contractor).

Risks to Avoid

A risk I see (and two other ISPs recently visited), is the commoditised approach to interim engagement lacks sustainability.

Larger consulting houses (to whom commoditised CV brokering is anathema to their business models), will gain further market share in value-adding change and transformation work; and perhaps the interims too.

Another risk is interims forming interim practices with marketing capabilities to build on their 60% self-sourced engagements.

ISP Recommended Changes

A question for ISPs: how are you discerning, separately branding, marketing, and appropriately resourcing with skilled consultants client offerings?
For example:

• Do you make a distinction between interim and commodity approaches in your recruitment processes – are they clearly defined, or confused – to best serve the client base?
• Should your interim and contractor/commodity offerings have separate brands?
• Are your consultants then working with the right approaches and client connections?

Summary

It is difficult to challenge client cognitive bias (a major client benefit) in a CV. However, half-hour chats with clients about their challenges and discussing, among other things, ways other industries solve similar problems is where enhanced interim industry value-add will be gained.

All three parties (client-ISP-interim) will then be served better, and the reputation of the interim industry will grow in response because of the progression to a consultative approach.

Addendum

Of course, consultants do challenge cognitive bias. However, they lack the hands-on and in-depth leadership engagement that interims are renowned, to see what is happening deep inside clients’ businesses.

 

Article by Simon C Jones, Interim Finance Director/IIM Director

 

 

 

 

 

 

 

 

Does the engagement of an interim manager ensure project success?

Follow the link below to our latest article in Executive Grapevine as featured in The Guide To Interim Management



https://www.executivegrapevine.com/content/article/magazine-2018-02-06-does-the-engagement-of-an-interim-manager-ensure-project-success

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