BACK     

COMPANY TURNAROUND
positive change for companies

MANAGEMENT FOR HIRE

a professional manager for a fixed period

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.

References

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:
1. A factory in Norway - business analysis which identified the need for change in 2001.
2. A factory in Northern England - business analysis. Structural change began in 2001.
3. A factory in Northern Ireland - business analysis. Structural change began in 2001.
4. The closing of a Dutch factory and the transfer of production to Germany, 2001.
5. Enso Española S.A. Managing Director of Barcelona board mill. Preparation and implementation of a reorganisation plan in 1993-1995: a company which had made a 60 per cent loss on net sales became profitable in 2.5 years, six months ahead of target.
6. An analysis of the operations of a company consisting of five production units manufacturing electronic components. The closing of one unit and the transfer of production machinery in two other units. Manager for hire, 1992.
7. An analysis of the operations of a company importing and retailing motor cars and the preparation and implementation of a reorganisation plan. Manager for hire, 1991.
8. Polarcup S.A., Spain. Managing Director, 1985-1988. Company takeover after an acquisition: production capacity was tripled and net sales doubled.