Questions for CEO or Business Owner:
If you answered “yes” to five of the eight questions posed above, then you might need a temporary “Pilot” to chart a new course for your company.
Like 4 points on a compass, Pilot Management works with CEOs and business owners to help them chart the new course by providing:
- Has your business lost its strategic direction?
- Have events outside of your control such as changes in the local or regional economy affected your ability to compete?
- Has the quality of your product or service fallen recently?
- Are your vendors and suppliers complaining about not being promptly paid like they used to be?
- Is your lending institution nervous about your ability to continue to pay your bills on time?
- Are your employees complaining internally and externally to suppliers, vendors, or lenders that it is difficult to get a decision from management or that the leadership has changed?
- Have you recently lost a key employee resulting in a “leadership vacuum” in the organization?
- As the CEO or business owner, are you conflicted by the choice of doing what's right for the business versus being loyal to the employees who have been with you the longest?
If you answered “yes” to five of the eight questions posed above, then you might need a temporary “Pilot” to chart a new course for your company.
Like 4 points on a compass, Pilot Management works with CEOs and business owners to help them chart the new course by providing:
- Financial expertise to immediately improve the cash position of the company,
- Operations management expertise to find new efficiencies in the business to reduce costs and improve profitability,
- Executive coaching to allow the CEO and the senior management team to align the organization along strategic objectives as opposed to tactical tasks, and,
- Sales and business development expertise to insure that the course correction is sustainable by offering long term success in both revenue generation and profitability.
Frequently Asked Questions
- What is "interim management"?
Interim management is a temporary provision of management resources and skills. Interim management usually involves the short-term assignment of a proven heavyweight interim executive manager to manage a period of transition, crisis or change within an organization. In this situation, a permanent role may be unnecessary or impossible to find on short notice. Interim management is typically called upon when there is no one internally who is suitable for, or available to take up, the position in question
Pilot Management helps companies move through periods of significant change with the help of interim managers that can address and solve specific client issues. As experts in Accelerated Change Leadership, we provide clients with experienced, senior-level managers on short notice to carry out time-intensive assignments in a wide range of industries.
The concept of interim executive management has deep roots in Europe, where labor laws complicate questions of hiring and firing. But it is increasingly popular among U.S. companies looking to supplement their internal bench strength during management transitions or bring in managers on an as-needed basis with specialized knowledge, such as Sarbanes-Oxley, supply chain management, distressed asset sales, or post-merger integration. - What functions and titles do you fill?
We work primarily at the C-suite level, from CEO down to business unit head. - Do you replace the management team?
No. We integrate into the existing management team to address financial or operating issues that can't be solved with internal assets and can't wait for the permanent solution to arrive with the new manager six or nine months down the road. - What is Accelerated Change Leadership?
" Overkill" solutions for pressing corporate issues such as Sarbanes-Oxley compliance, post-merger integrations, divestitures, restructurings, etc.
A team-based approach for rapid response and resolution.
Hands-on problem solving combined with confidentiality and low-profile style. - How is what you do different from traditional recruiting?
We do not provide candidates for permanent employment, nor are we associated with an executive recruiter or outplacement organization.
Pilot Managers, who perform the on-site element of client assignments, are drawn from our exclusive network of management veterans who have delivered tangible results, both in previous Fortune 500 operating jobs and in other accelerated change leadership assignments for Pilot. - Do you compete with management consultants?
We don't. Pilot helps companies address short-term problems - or opportunities - that require immediate access to seasoned corporate managers with the ability to develop and implement sound business solutions. While we often work alongside strategy consultants, Pilot provides operators, not consultants. - Do you supply workout specialists?
Our assignments often involve clients with financial and operating issues, and many end with the sale or other disposal of assets.
However, we don't typically approach assignments with the assumption that a large-scale replacement of managers or reduction in workforce is needed to "fix" the problem. - Isn't it always better to have an insider, even on a temporary basis, carrying out key management roles?
Interim solutions work best when there is a real problem that cannot be solved with internal assets and cannot wait for the permanent solution to arrive with the new manager six or nine months down the road. - What kind of companies do you work with?
We work with public and private companies, private equity sponsors, and non-U.S. companies with U.S. operations. Our industry experience covers a wide range of manufacturing and service clients of all sizes. - How long is a typical assignment?
Assignments can be as short as three months and as long as 18 months.
The Turnaround
-- Is the Goal to Sell the Company or to Make Changes that Offer Sustainable Growth and Development?
When is a turnaround used? Turnarounds are not merely a course correction for a business that needs a new direction. The turnaround is only used when the company is in real danger of failure and time is of the essence to make the necessary changes.
Preparing a Company for Sale. The emphasis is concentrated on correcting the cash position of the company and returning the cash flows to a level that both the lender and the vendors are comfortable that regular timely payments will occur. Typically, this is done by cutting overhead expenses and reducing head count to align the expenses with the revenue dollars. While this sounds simple in concept, the CEO often has a difficult time assessing the needed talents for the company in the future versus the recognition of loyal employees who have been with the firm for a long period of time. Interim managers can be hired to implement or even make those difficult decisions on behalf of the well meaning but reluctant CEO. Once the company is stabilized, it can be readied for sale if that is the preferred option.
The Sustainable and Holistic Turnaround. Restructuring debt and improving the cash position of the company is certainly a major goal in any turnaround. However, if the goal of the turnaround is to reorganize the business to put it on the road to growth and sustainability, then other things must be considered:
-- Is the Goal to Sell the Company or to Make Changes that Offer Sustainable Growth and Development?
When is a turnaround used? Turnarounds are not merely a course correction for a business that needs a new direction. The turnaround is only used when the company is in real danger of failure and time is of the essence to make the necessary changes.
Preparing a Company for Sale. The emphasis is concentrated on correcting the cash position of the company and returning the cash flows to a level that both the lender and the vendors are comfortable that regular timely payments will occur. Typically, this is done by cutting overhead expenses and reducing head count to align the expenses with the revenue dollars. While this sounds simple in concept, the CEO often has a difficult time assessing the needed talents for the company in the future versus the recognition of loyal employees who have been with the firm for a long period of time. Interim managers can be hired to implement or even make those difficult decisions on behalf of the well meaning but reluctant CEO. Once the company is stabilized, it can be readied for sale if that is the preferred option.
The Sustainable and Holistic Turnaround. Restructuring debt and improving the cash position of the company is certainly a major goal in any turnaround. However, if the goal of the turnaround is to reorganize the business to put it on the road to growth and sustainability, then other things must be considered:
- Strategic Management Focus. Sometimes the immediacy of the financial issues mask the larger problems associated with the struggling company. These usually include a frustrated senior management that goes from being growth oriented and strategic when times are good, to hands on, tactical and micromanaging when times are tough. As a result, the problem is compounded by the egos of the senior management group who are reluctant to admit that hiring a team of interim management turnaround specialists is necessary. They typically believe that the need for turnaround expertise somehow signals a weakness in business acumen. That could not be further from the truth! Turnaround specialists from Pilot Management only offer the experience necessary to “stay the course” on strategic decision making during those times when the economy has “thrown the management a curve ball”.
- Executive Coaching. Pilot Management incorporates an executive coaching process specifically designed for CEOs and others in the “C suite” by focusing their efforts on strategic issues, leading versus managing, identifying and maintaining the vision of the CEO, the mission of the company and the brand for your customers, suppliers, employees and stakeholders. This also includes substantial improvement in communication performance with all of those groups. In short, get the CEO’s head out from under the business so that he or she is free to work on the business. While the CEO is learning new ways to think, the turnaround specialists are critically reviewing existing processes and making strong and quick decisions for improvement.
- Sustainability Through Renewed Sales and Marketing Efforts. Cutting operational expenses, restoring the cash position of the company, and renewing the emphasis on strategic issues are certainly paramount to the success of a turnaround. Nevertheless, sustainability is the key to the long term success of the turnaround company. A new focus on top line revenue through marketing, sales processes, and customer service ensure that the turnaround is sustainable. Pilot Management accomplishes this by conducting an audit of the sales and marketing functions to make sure that both the correct processes are in place and the right people are developing new business for the company.
Do You Have A Need?
- Departure of a Key Executive
Sometimes companies find themselves having to deal with a senior level resignation on short notice. An interim executive can move into the vacant role quickly and smoothly. By maintaining its momentum, the company then has the time it needs to find a suitable permanent replacement for the position - Project Management
Companies wishing to undertake a major strategic project often find they have insufficient internal talent to effectively manage the project or they are reluctant to take existing staff away from their current responsibilities. Interim managers provide the solution to the talent deficit problem. - Change Management
Change is commonplace in today’s modern business enterprise. New systems, a change of company culture, new government regulation, introduction of innovative new production processes, competitive challenges, taking on a major new contract, are just a few of the situations that could result in a company having to review they way in which it works. Many changes involve a considerable amount of staff upheaval and the revision of work practices which creates a great deal of uncertainty among the employee population.
An interim manager is an excellent alternative (in particular to consultants) for any company that needs the objective leadership to effectuate the necessary change. He or she will have the skills and experience necessary to lead the project and ensure that the required results are delivered. Since the assignment has a finite timescale, there is no-one to ‘let go' or re-deploy at the end of the project. In addition to a wealth of experience from similar previous assignments, an interim manager can also provide a fresh perspective on the situation. Unencumbered with current processes and existing staff who are often inclined to protect the status quo, the interim manager has an unbiased and impartial outlook on what's best for the company. - Crisis Management
This issue could take many forms. Typically, unforeseeable economic circumstances put the company in grave danger and its survival is in real question. It could be the Managing Director of a poorly performing family business suddenly resigns and leaves to set up a competitive operation. Similarly, it could be a regional or global recession has caught the company ill prepared to deal with a sudden loss of business. The Chairman realizes that the incumbent management team is too inexperienced to take on the issue and is unsure of the best course of action to take.
An interim executive would be able to step in quickly, using his experience of similar situations to protect the company from any competitive threat and to affect a turnaround in the company's fortunes. He could also mentor one or more of the existing managers to groom one of them to take over his role once the interim assignment has come to an end. - Initial Public Offerings and Management Buy Outs
When dealing with an IPO or an MBO, it is not unusual for the board and senior level employees to have had little or no previous experience of how to effectively manage a complicated corporate restructuring process. A public offering in particular is one of the pivotal events in a company's history and brings with it responsibility to a whole new set of investors and shareholders. Therefore, the timing, size and structure of an IPO are absolutely crucial to its success.
Appointing an interim manager who has a track record of dealing with such situations will instantly provide the level of experience and knowledge needed to safeguard a company from some of the major pitfalls that are often common in these situations. Additionally, an interim manager should provide that ‘extra pair of hands' that will prove invaluable when dealing with an increase in workload in areas that are unfamiliar to the management team. - Mergers and Acquisitions
Mergers and acquisitions present key opportunities for the use of interim managers. Each instance involves a certain degree of corporate restructuring and possible resource and location issues. The objectivity of an interim manager could prove to be indispensable during such a crucial period.
Critical strategic and financial decisions requiring experience, insight and focus lend to success of the venture. During deal negotiations in particular, the input of an independent viewpoint is often found to be invaluable.
One common result from a merger or acquisition is that there may not be a suitable internal candidate who could immediately take control of the new company. In these circumstances, an interim manager would be able to undertake the day to day running of the business until a permanent replacement could be appointed.
Similarly, during a merger, bringing in a temporary manager who is external to the companies involved can greatly assist in a smooth restructuring process - particularly when there is the potential for conflict among the ‘resident' CEOs.