“In these uncertain times, people are turning to interim management for reassurance”

Patricio Gil Olmedo is a Managing Partner at EPUNTO Interim Management and heads up business development at this Spanish company with an international presence. With over thirty years’ experience in the field of management, this executive shares his insights on interim management, a project-based executive management service that is experiencing increasing growth in the Spanish and Latin American markets.

Madrid, 21 March 2022

What is the state of interim management in the post-COVID-19 era, and with a brutal war on the European Union’s border that is already seriously affecting the economy?

Following the coronavirus pandemic, interim management services have rebounded and grown in line with economic growth, to the extent that, at this stage in 2022, they have already recovered and surpassed the figures achieved in 2019. This is because these services help companies navigate uncertain scenarios, addressing specific temporary needs or developing strategic and transformational projects. Our ability to tackle critical situations and resolve them with maximum efficiency is leading to an ever-increasing market presence.

Our services are highly valued and increasingly well-known. Companies are realising that these services offer significant advantages, such as flexibility, access to experienced talent, a rapid response to their needs and the delivery of added value. These are compelling reasons and arguments for these services to continue to develop in the future.

Now, the war in Ukraine is set to affect the economy and, whilst we may not be able to estimate the full impact, interim management firms can provide a solid foundation, offering stability in times of greatest uncertainty or volatility. We will undoubtedly be able to help organisations – as we are already doing – to tackle their challenges in this new context, resolving specific situations as they arise.

Spain faces a historic challenge: implementing the projects to be financed by the Next Generation EU funds from the ‘European Economic Recovery Fund’, amounting to €140,000 MM. Are we in Spain – in both the private and public sectors – prepared to manage such a substantial investment?

There is no doubt that the Next Generation EU funds for European economic recovery have generated great anticipation within the business community in Spain. We believe that the vast amount of money and the scale of the projects to be undertaken will require a strengthening of leadership and management capabilities. It is necessary to strengthen management structures with the best specialists in each field and professionals with a proven track record and experience. And this is something that interim management firms have been doing for years.

In other European countries where executive management services are more established, there is no doubt that interim managers from specialist firms can be of great help and are an essential force in ensuring the successful completion of projects.

This is an extraordinary opportunity for economic growth that we must not let slip by – and certainly not because we fail to make the most of the necessary talent that is available to undertake the various initiatives. There is a great deal at stake.

Patricio Gil Olmedo, partner at EPUNTO Interim Management

How has EPUNTO Interim Management prepared to tackle the challenges of digital transformation in Spain? Do you offer specific executive management services for this area?

Since our company was founded seven years ago, we have been very attuned to and closely involved with digital transformation processes within businesses. We have even set up a subsidiary for technology and digital consultancy services, LIQUID Smart Technologies, which in its first year of operation has far exceeded our expectations.

Digitalisation is an absolutely urgent challenge. It is one of the key drivers of investment and priorities that must guide us in the coming months. In fact, a third of European funds are earmarked to support digitalisation projects. It is the essential lever for building a competitive economy in our country. If we succeed in digitising our country’s small and medium-sized enterprises, the impact on Spain’s productive fabric will be enormous. We are very confident in the management services and resources we can offer to businesses. We have no time to lose.

What proportion of EPUNTO Interim Management’s business comes from overseas markets? Do you have an international network or partners in other countries?

The international arena is a key pillar of our development. This has historically been the case. We support companies in their internationalisation processes, providing solutions in the countries where they operate. Latin America is a region where we have worked extensively, and we continue to do so.

In addition, we are part of an international network, Globalise – The Global Interim Management Group, through which we collaborate by providing our executive management services, with coverage across the twenty-five most important countries on five continents. It is probably the world’s leading network of companies providing interim management services, with a powerful database and the world’s best interim managers; and we, based in Spain, play a very important role as a bridge between European companies and Latin America.

Helping our companies to grow, become more digital and make the leap into the international market are the areas where we can contribute through our services, adding value thanks to the experience and knowledge of the executives we place within these organisations.

Within the broad spectrum of services covered by interim management, which are the most common, and what sort of organisations request them?

The circumstances under which interim management services are commissioned vary and are particularly well-suited to these times of uncertainty, strategic reorientation and the redefinition of objectives. Situations such as: organisational restructuring, company mergers and acquisitions, financial optimisation or cost reduction, supply chain security, review of strategy and commercial operations, and the management of digitalisation or international expansion projects, are some of the ideal scenarios for interim management services.

As for the companies seeking this type of service, we could identify – without being exhaustive – private equity firms and investors, as well as companies from various sectors such as agri-food, technology, manufacturing, transport and logistics, and services.

What is the profile of the executives who join Interim Management Services?

The profile of the executives or interim managers who join services requested by companies is that of professionals with extensive experience in management roles, either within a specific functional area of the company or in a particular sector of activity. The skills that these executives bring to these services are wide-ranging: experience, leadership, emotional intelligence, commitment, resilience, composure, critical thinking and the ability to adapt to change.

These executives get involved and integrate easily into the workings of organisations, adopting a distinctly executive approach to add value and achieve the results defined at the start of the assignment. They are professionals who bring an external perspective, innovative solutions and different approaches to resolving situations. Thanks to their long professional careers, they have experienced and overcome complex, even critical, situations. As they are external to the company, they are not influenced by issues linked to the company’s history, which allows them to propose and make decisions without being constrained by emotional ties or entrenched issues within the organisation.

Our interim management services are bespoke, flexible and adaptable to each individual case, always aiming to deliver results for the company.

Companies specialising in interim management recommend that this service be contracted through them, rather than directly with the interim managers. What is the reason for this, and what is the difference?

There are significant advantages to engaging this type of service through firms specialising in interim management; these include, amongst others, the assurance of having high-calibre professionals suited to the organisation’s needs and a professional assessment of the candidate’s suitability, with references checked to a professional standard. Furthermore, although it is rare, we offer a guarantee of immediate replacement with another interim manager should the first candidate selected fail to meet the established objectives. Furthermore, we provide ongoing support throughout the duration of the assignment, working with both the client and the manager to ensure expectations remain aligned at all times and to deliver the anticipated results.

In other neighbouring countries (France, Germany, the United Kingdom, Sweden and the Netherlands), the use of interim management services is fully established and standard practice within business operations. A significant point is that, in these countries, it is very rare for a company to consider engaging these services unless it is through a specialist firm, as a freelance interim manager cannot provide the guarantees offered by an interim management firm.

Furthermore, European studies on interim management indicate that interim managers hired through specialist firms provide a higher level of satisfaction (around 40–50 per cent) than those selected directly by the client companies. The reasons for these findings are, primarily, the haste with which candidates are selected in situations that are often urgent, and the failure to distinguish between the methodology used to select an executive for a permanent role and that used for an interim manager, which are entirely different.

Clearly, our firms must be seen as strategic allies of a company’s senior management or human resources department. We provide qualified managerial talent to resolve short-term situations, and as such we must be regarded as a tool for competitiveness.

Finally, how do you see the future of interim management services in Spain?

I am optimistic. The pandemic has been the event with the most significant social and economic implications since the Second World War. Now we have the war in Ukraine. We are living in times of uncertainty, but also of opportunity. Recent years have brought about significant changes across all aspects of our lives. The world of work has also been affected and is no longer what it used to be. As our Advisory Board member, Tomás Pereda, says: “There are fewer and fewer jobs; on the contrary, there is more and more work.” The labour market is becoming increasingly fragmented. Faced with a decline in salaried employment, we are witnessing a boom in self-employment across a wide variety of non-traditional working arrangements. Interim management is one such arrangement.

Companies will need to reinvent themselves by making profound changes to their organisations. They must adapt their structures and processes to manage both internal and external talent, as well as the coexistence of different generations, in order to realise their full potential.

Sooner or later, the economy will rebound. When this happens, those companies that are prepared and adopt innovative management models will have a better chance of growing. A world of possibilities is opening up before us that we could not have imagined a few years ago.

At EPUNTO Interim Management, we have always been characterised by constant innovation and the pursuit of competitive solutions. That is why we aspire to become the best partner for companies.