Entrepreneurship is characterised by change arising from internal or external circumstances of a company. Significant reorganisation and streamlining projects can best be realised by utilising resources outside the company. An outsider is able to analyse the need for change more objectively than the company's management, which has actually induced the conditions requiring change. In addition to an analysis, the company often needs an agent to carry out the change, whose assignment will end when the company restarts its "normal" activities. An outside consultant can concentrate on implementing the change process, while the management of the company attends to current operations.
It is typical of management-for-hire projects that they last for a fixed period and include a clear assignment for carrying out change. A manager for hire usually works full time, and should be as experienced as the managing director of a company. A previous record of turnarounds will naturally enhance his chances of success. The need for a manager for hire is often identified outside the company or division concerned, e.g. at the corporate management level or by company owners.
In practice, managers for hire are needed at takeover situations after the acquisitions, i.e. as temporary managing directors. An outside professional is best able to reorganise a subsidiary. Whenever a corporation intends to give up a subsidiary, a manager for hire can be used during the negotiation process.
I have acted as a
manager for hire in two large reorganisation projects. In addition, I
have managed significant change processes in subsidiaries at the corporate
management level in the following cases: