How to Choose an Interim Provider
Choosing an interim provider for your senior finance hire? Here are some tips…
Whatever the business situation that you face, a senior finance hire can be difficult to make. Sometimes there are differing opinions and expectations from members of the Board. It can cause confusion, distraction and sometimes a wrong hire. It is important to look beyond common personal interests in interview and remain objective!
Depending on the stage of your business, start up, growth or scale-up, you will need a slightly different mix of skills. A large proportion of start-up CEOs do not know what they do not know. Perhaps they themselves have been the main thrust in fundraising and contract negotiation. Engaging an experienced interim provider to help and work alongside you to hire can be extremely useful but knowing when to engage an interim provider is important and in my experience, the earlier the better.
If you are unsure what title to give your interim hire, do not stress! You need someone that can quickly understand the task and communicate effectively with you, rather than someone that is precious about a job title. The Interims in my network are excited about the business problem and relish being part of the solution. The wrong messaging in terms of job title can be a distraction and could mean you miss the right person.
Here are a few tips I would like to share with you:
1. Do your research:
Start with your network contacts and peers. Which ‘Consultants’ do they recommend? (Remember, people move companies and often it is the individual rather than the brand that people value). Who have they heard good things about?
When you are choosing your recruiter think about:
Are they familiar with your type of business and the stage that you are at? They might impress with headline grabbing ‘known’ hires, however, if you are five founders in a room and you need someone to prepare a cashflow, or an investor report, you will need someone impressive but also practical. It takes experience and skill to find these hidden gems.
2. Expect no surprises:
In terms of process, time frame and cost.
Is there flexibility in any aspects of the hire?
For example:
Could this person be more senior, but part-time (which could reduce the overall cost). It also means they will add value quickly and do not need to be managed. They will be able to tell you how things are, quickly.
Is there a minimum length of engagement expectation?
Is the assignment inside or outside of IR35 and how do you determine this?
Can the Interim help map the best team structure for your current size and shape of company and leave a positive legacy?
Could they hire a more junior permanent hire and hand over? A useful thought if you are bringing finance in-house from external accountants.
3. Meet your consultant:
Make sure that you meet who you will be working with, either face to face or virtually. Without question you should expect at the very least for them to have met with their candidates. A great quality recruiter should be a friend for life.
Go with your gut feel – is this someone that you can work with? Do they understand your business, both the stage you are currently at and where you are striving to be?
Do they listen more than they talk? Sounds obvious, but you would be surprised.
Are they open to fee negotiation?
Will they represent your business in a way you are confident with? Ask them to walk through their candidate pitch and finesse it, together.
Do they need to ‘find’ appropriate people, or do they know people already?
4. Ask for advice:
Your consultant spends most of their time meeting and interviewing people, use this window of opportunity to learn, after all you are paying for their advice and service:
Can they recommend an interview structure and suitable questions?
How long should you spend in each interview, and how to manage candidate counter questions.
Should there be follow up meetings with other Directors?
Referencing - who to request and how to manage that crucial call.
Providing useful feedback to unsuccessful candidates.
5. The interim can also help you define the role:
These individuals have either delivered similar projects successfully or have the intellect and broader experience to know the best course of action. The first part of any assignment is an element of ‘discovery’ work. Your Interim does not plan to be with you forever, just for how long it takes to complete the assignment. They are budget aware and will not want to outstay their welcome.
6. When you make a hire:
Expect to have regular contact both with your Interim and your recruiter. For both parties, reputation is key and live feedback is essential.
Ask how these regular catch ups work and how often to speak.
Keep an eye on the clock, if you engage an Interim CFO for three months, after month one they will be marketing themselves again. If you think a project will extend or you would like to commit to a further period, raise this early.
Lastly, remember you do not pay for anything until you hire an Interim, so take your time and feel confident in your decision.
I hope this is useful and I look forward to speaking with you about your business soon.
