Interim Management in times of Corona
How interim management helps your company meet critical challenges
Covid-19 currently dominates everyday life. Apart from the human impact, the economic implications will be sizeable. Measures are in place to safeguard people's health, which have a downward effect on expenditures and investments of consumers and businesses. Inevitably, the number of unemployed will increase, and so will the risk of bankruptcy. A global recession is lurking around the corner. The expected downturn in the European economy is estimated to result in a fall of 9% in GDP as compared to 2019.
And what’s more, no one knows how long this downturn will last. This situation is expected to continue well into 2021. The rate at which a vaccine is found largely determines the impact this global crisis will have on the economy.
In order to successfully deal with this complex, turbulent period full of uncertainties companies need appropriate expertise. External professionals with competencies in the field of Corporate Recovery & Control are in great demand. They and other external managers can offer support on various fronts:
- Helping the company get through the crisis safely - to "stop the bleeding".
- Working out a recovery plan - "a recovery & ramp-up"
- Safeguarding continuity - an “operational efficiency & improvement programme".
The longer the crisis continues, the more drastic the challenges to existing strategies and the greater the pressure on existing organisational and business processes and systems.
The impact of this crisis will be enormous. The 'new normal' that will be established after the crisis will not be the same as the 'old normal' before the crisis. The companies that will ultimately survive will largely depend on the robustness of their existing foundations as well as their flexibility, speed and resilience in adapting to the changed circumstances.
The support of a professional Corporate Recovery & Turnaround manager would be crucial to guide your company through this crisis. But how do you select the right profile?
How you can select your Corporate Recovery & Turnaround professional
Before deciding to appoint a turnaround professional, it is best to take a number of considerations into account:
- How long do you want to rely on external support?
- Can the company sustain an investment in an external manager?
- Will other types of external expertise be involved in the recovery team?
- Is the existing management willing to cooperate with the external specialist?
- What will be expected from the interim manager?
- What are the chances of success?
These five factors will influence the success of the assignment
- Experience – the turnaround manager's track record is of overriding importance. What are the references and what success stories can your manager present?
- Ethics and professionalism – every proposed interim manager is bound by a code of conduct that defines the relationships with the service provider, its customers and third parties.
- Reputation – intensive checks of references are crucial. Work can only be successful if all stakeholders have sufficient confidence in the manager.
- Managerial skills – the turnaround manager must have sufficient leadership and negotiation skills. After all, he/she will be the architect and implementer of the new strategies.
- Fee structure – the investment must be clear, precise and unambiguous. The company must be aware of its implications. And it would be advisable to consider having an incentive or performance target agreement.
Contact the Essensys team
We are here for you to help you make the analysis and come up with a tailor-made solution for your business. Feel free to contact us via our online platform firstname.lastname@example.org or our general number +32(0)2 / 761 94 62.