By Frank Elzinga
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A new approach to management…
Although China’s economy is still growing, slowly but gradually the traces of the economic downturn are reaching the Chinese surface too: MNC’s are slowing down their investment, companies relying on export see their sales volumes go down and even the foreign invested companies that have been on the ground in China for a long time are feeling the heat.
These days, more creative approaches are needed in order to lead companies in times of economic turmoil and to make sure the company will stay afloat until the tides have turned. The current global recession asks for solid China knowledge and experienced managers who have what it takes to change a company around.
Interim Management Solutions
In times of economic downturn we see more and more needs with our clients to employ people who ‘think out of the box’, dealt with restructuring before or a need for managers who can still drive sales in times of ever increasing competition and reduced margins.
At the same time most companies are very strict on their recruitment policies too, if they are still hiring. In other cases companies have hiring freezes, across the board, regardless the urgency of certain roles. Moreover the new 2008 Labor Contract Law has significantly reduced flexibility in the work place. The knock-on effect will make MNC’s much more cautious when recruiting Senior Executives and Managers. This is where using an experienced Interim Manager can be a real bonus, filling assignments for 3 to 6 months while the company takes its time to find the right permanent executive.
The use of Interim Managers is a common business tool in Europe and the USA, but is just starting to gain acceptance in China. There are many different situations where businesses can benefit from using Interim Managers including the obvious one of flexibility. China is about to enter a sustained period of business restructuring, mergers & acquisitions and rationalization. This is where experience really does count. Interim Managers have lived through and managed growth, efficiency drives, cost savings and large scale changes.
Managers on a mission
Most of our clients make use of Interim Management when there is an acute need. These acute needs arise typically after resignation, during turnaround or in a crisis situation. Interim Managers are available on a short notice, have the required skills and expertise and come with a blank, objective point of view. As opposed to Management Consultants they will actively run the business. They are involved in day-to-day operations while reporting directly to the client. Interim Managers are engaged for a specific project, usually with a fixed timeframe. Once the Interim Managers have successfully accomplished his mission both parties separate. The Interim Manager moves on to his next assignment.
Interim managers come from all backgrounds and industries but they definitely have one thing in common: they thrive under new challenges and the completion of a concrete assignment in a limited timeframe. They want to make their contribution to getting results while simultaneously developing their own competencies on an ongoing basis. The majority of them chooses this career path not out of need but out of desire. It is a proactive choice.
Frank Elzinga, J.M.Gemini