Interim management: the management solution for the internationalisation of Spanish companies

Why do more than 30 per cent of international executive assignments fail?

Recent surveys of human resources managers in Spain show that over 30 per cent of international executive assignments fail. The reasons are varied, but the most common include:

• The executive’s profile does not match the role at the destination
• The executive’s limited international experience
• Insufficient cross-cultural training
• Poor planning of the professional’s career abroad
• The professional or their family’s failure to adapt to the country
• The spouse’s career aspirations.

In Spain, 50 per cent of employees do not consider international mobility

In general, companies recognise that they are not managing their professionals’ expatriations effectively. In Spain in particular, there is also another phenomenon: an increasing number of companies are finding it difficult to attract the best talent and to find professionals willing to relocate to work in another country.

Fifty per cent of employees are simply unwilling to consider international mobility. Quality of life and cultural attachment make professionals reluctant to take on assignments abroad. One consequence is that companies are shortening the duration of overseas assignments (to less than a year), which entails additional costs for them and is detrimental due to the short duration of the assignment and the difficulty in achieving results caused by constant staff turnover.

The design and implementation of appropriate policies tailored to each individual case and adapted to different assignments can lead not only to savings in resources but also to improvements in the management of global mobility departments. Therefore, given the high cost to companies of an international assignment, it is vital to minimise the risk of it failing.

From need to solution: Interim Management

It is in this context – and with specific reference to senior management roles – that interim management services become particularly valuable. In the case of international executive assignments, interim managers with extensive experience in this field represent an excellent opportunity for companies. They are professionals with many years’ experience behind them, who reliably demonstrate a high level of commitment to client companies. They engage with challenges in a highly professional manner, taking control of the situation within a short period of time and shortening the response cycle to the organisations’ needs. They have already been through these processes, have developed intercultural skills in an international environment, and if they are also familiar with the host country from having worked there, so much the better. They are pure talent.

Interim management may be the right solution to the problems arising from the management of expatriates, particularly in large companies. It is also suitable for small and medium-sized enterprises that lack the funds, resources, staff and scale to sustain, over time, a venture into international markets—markets characterised by obvious uncertainties regarding risks and rewards, yet highly attractive in terms of business opportunities and growth prospects.

There are currently many executives available on the market who have built their careers in the international arena and would be delighted to contribute their skills and experience to companies that need them. It is a matter of matching supply and demand. On the one hand, there are Spanish companies that continue to commit to operating and investing beyond our borders; on the other, there are available executives with proven experience in these complex processes. Having a specialist executive who has worked in these fields can deliver tangible results for companies from the moment they join.

Interim management services are contracted for a fixed period to carry out a specific task, after which the service comes to an end. In SMEs, hiring these executives helps to speed up and safeguard processes, whilst minimising risks. And in large corporations, it offers an advantage in dealing with the current situation regarding expatriates, and the unintended consequences of managing the return of professionals and their appropriate reintegration into the organisation.

Other advantages of this type of interim management service – apart from the fact that it does not involve permanent recruitment as it is a service and therefore a commercial contract – include the speed with which a specialist manager can be selected and brought on board, as well as the flexibility and ability to adapt to the client company’s specific circumstances.

The interim managers made available to companies are highly qualified and have a proven track record in the field relevant to the assigned mission. This may involve taking on the top leadership role in a country (Country Manager), entering a specific region, the commercial development of a service or product, the launch of a new project, the management or winding up of a subsidiary, the creation or management of a joint venture with a local Partner, or any other temporary situation or unforeseen need.

Access to this available qualified talent is an opportunity that Spanish companies should capitalise on in their internationalisation processes. In many cases, it provides access to a professional whom, due to their calibre and the associated costs, the company would be unable to recruit through a traditional employment contract. The return on investment for this type of service is significant and is demonstrated by the results achieved, the costs incurred and the benefits gained.