POSITIVE EXPERIENCE OF BOARD-LEVEL INTERIM EXECUTIVES FUELS GROWTH IN USE BY UK 'CAPTAINS OF INDUSTRY

More UK companies are seeing the benefits of experienced interim executives, according to the annual BIE/MORI survey on board-level interim executives for 2002, part of MORIs Captains of Industry survey.

The survey of 187 chairman, CEOs, managing directors and presidents from the UKs FTSE 500 companies, now in its third year and the most high-level, in-depth survey of its kind, shows that 59% of companies with first hand experience of interims will use them again, compared to 4% of these without this previous experience.

The stark contrast between the confidence of previous users and the nervousness of businesses that have not yet used interims underlines the perception problem the industry has - a perception reinforced by the increasing presence of non-specialist providers.

Martin Wood, managing director of BIE, says: Although there are arguably only 600 people in the UK with the right skills, experience and personality to be an effective interim, many companies still approach non-specialists to try and find interim board members. At best this is a missed opportunity, at worst it represents a potentially massive risk to any business."

The BIE/MORI research in fact shows that, when allowed to register more than one method, 40% of the Captains of Industry surveyed would use a specialist firm to source an interim executive, 35% would try to find one through a colleague or associate recommendation, 33% would appoint a personal contact, 33% would use a headhunting firm and 17% would use one of the 'Big 5 auditing/consultancy firms.

The research does demonstrate the increasing confidence in interims, thanks to their greater use as a strategic solution to HR resourcing -- the area where they add the most value -- rather than a tactical stop-gap, as Martin Wood explains: Although 18% of companies surveyed still regard interims as a distress purchase -- someone to 'hold the fort -- there has been growth in strategic roles, from acquisition management and closure to turnaround, mentoring and momentum programmes. Over half (52%) of all appointments are made by Chief Executives and the most common deployment of interims is as Financial Directors (52% of all commissions)".

Of the companies surveyed, 42% of those within the top FTSE 250 had used interim executives -- and the fastest growth area among all companies is in managing closures (8%, up from 3% a year ago).

On the business-critical issue of change and transition, the balance of Captains of Industry believe that interim executives provide a more effective solution than management consultants continues to rise, from 15% in 1999, 20% in 2000 and 30%* in 2001. According to Sean Egan, CEO of Bluecycle.com, With an interim you get what you pay for -- with a consultant you often buy from the expert and get the trainee doing the job".

*NB these figures represent 'net positive opinion towards interims i.e. the balance of positive opinion remaining after negative opinion has been subtracted)

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Notes to Editors

BIE is the UKs leading specialist provider of senior level Interim Executives. It comprises a team of consultants with over 28 years experience in this field. The founders of the company set up PA Consulting Groups Interim Management Service in 1990. BIE was established in 1996 and traded as Boyden Interim Executive until July 2000 when the licence to use the Boyden name was relinquished. BIE is preferred supplier to 3i plc, has been the recommended supplier of the IOD and has now produced in association with the CBI the Business Guide to 'Interim Executive Management.