The board of Satyam Computer Services Ltd may not have found a suitable, or perhaps a willing, interim CEO. So it settled for A S Murty, a willing insider.
But the fact is that demand for CXOs and middle-level interim managers has gone up as India Inc is calling in the experts to help it pass through the pain of the economic recession.
CXO is a generic term for a corporate officer, such as a CEO (chief executive officer) and a CFO (chief financial officer).
Though around for many years, interim managers have started discovering that companies are looking for senior managers who do not want to be tied down to one master for more than say, 12 months at a stretch.
This also suits cash-strapped firms that do not see hiring a consultancy as an option, or do not want to be saddled too long with a high-cost employee whose expertise may not be needed beyond a limited period.
But what makes an interim manager tick?
“The interim manager brings skills and talents that the company may not posses. And it is the variety, the challenges and, of course, the compensation that goes with the job which attracts him to the job,” said Robert Schellman, senior vice- president, Network Operations and Construction, Reliance Globalcom Ltd, who has been in India for the past seven years and has changed at least five jobs.
Senior executives turn interim managers by choice in order to leverage their rich experience. They are in demand only for their impressive track record. In most cases it is the remuneration, without the weight of quantified targets, that drives them to the job. In most instances salaries are twice that of full-time employees but half the fee of reputed consultants.
They deliver objectives fast in a no-nonsensical manner. Sophisticated interpersonal skills are a pre-requisite. They are focused on delivering client satisfaction and usually report either to the CEO or to the board.
“Though the exact demand in India is difficult to quantify, there are many corporates who are looking at interim managers or subject matter experts for specific time-bound assignments,’ said Srinivas Nanduri, partner in Singapore-based Maxima Global Executive Search, which has headhunted for Satyam also in the past.
“The demand is almost insatiable,” said Achyut K Menon, CEO, Options Executive Search, which specialises in placing Indians returning from abroad. The interest is high from even small and medium enterprises as technocrats either cannot, or will not, hire equals to run the company, he said.
“Compared with last year, the demand has gone up 60-70% for interim mangers,” said Kunal Banerjee, CEO of Pune based search firm Absolute HR. All the 35-40 senior executives, including expats, in his panel for interim CXO level positions are currently engaged at packages above Rs 50 lakh per annum on short-term contracts.
The demand is coming from retail, telecom, construction, alternate energy, financial services and infrastructure sectors like airports, metro rail projects, industrial townships, he said. Even conservative sectors like manufacturing and engineering are now picking up interim managers.
