Patricio Gil Olmedo He is the Managing Partner of EPUNTO Interim Management and responsible for business development at this Spanish company with an international presence. With over thirty years of experience in the field of Management, this executive shares his vision on Interim Management, an executive management service for projects that is experiencing increasing growth in the Spanish and Latin American markets.
Madrid, March 21, 2022
What is the situation of Interim Management in post-COVID-19 times, and with a brutal war on the border of the European Union that is already seriously affecting the economy?
Following the coronavirus pandemic, Interim Management services have rebounded and grown in parallel with the economic recovery, to the point that, by this time in 2022, they have already recovered and surpassed the figures reached in 2019. This is because these services help companies navigate uncertain times, addressing specific temporary needs or developing strategic and transformational projects. Our ability to handle critical situations and resolve them with maximum efficiency is leading to an ever-increasing market presence.
Our services are highly valued and increasingly well-known. Companies are realizing that these services offer significant advantages, such as flexibility, access to experienced talent, rapid response to their needs, and added value. These are compelling reasons for the continued development of these services in the future.
Now, the war in Ukraine will impact the economy, and although we cannot estimate the full extent of the impact, Interim Management firms can provide a solid foundation, offering security during times of greatest uncertainty or volatility. Undoubtedly, we can help organizations, as we are already doing, to face their challenges in this new context, resolving specific situations.
Spain faces a historic challenge: implementing the projects to be financed with the Next Generation EU funds from the European Economic Recovery Fund, totaling €140.000 billion. Are we in Spain, both in the private and public sectors, prepared to manage such an investment?
There is no doubt that the funds Next Generation US The European economic recovery has generated considerable excitement in the Spanish business community. We believe that the vast amount of money and the scale of the projects to be undertaken will require a strengthening of management and leadership capabilities. It is essential to reinforce management structures with top specialists in each field and professionals with proven track records and experience. This is something that Interim Management firms have been doing for years.
In other European countries where executive management services are more established, there is no doubt that interim managers from specialized companies can be helpful and an essential force for the successful completion of projects.
This is an extraordinary opportunity for economic growth that we must not miss, especially not because we lack the necessary talent available to carry out the various projects. There is a lot at stake.
How has EPUNTO Interim Management prepared itself to face the challenges of digital transformation in Spain? Do they offer specific executive management services for this area of operation?
Since our company's inception seven years ago, we have been highly attuned to and closely involved with digital transformation processes in businesses. We have even created a subsidiary for technology and digital consulting services. LIQUID Smart Technologies, which in its first year of life has far exceeded our expectations.
Digitalization is an absolutely urgent challenge. It's one of the key investments and priorities that must guide us in the coming months. In fact, a third of European funds are earmarked for supporting digitalization projects. It's the essential lever for building a competitive economy in our country. If we manage to digitize the small and medium-sized enterprises (SMEs) in our country, the impact on Spain's productive fabric will be enormous. We are very confident in the management services and resources we can offer to companies. We have no time to lose.
What percentage of business do foreign markets represent for EPUNTO Interim Management's business development? Do they have an international network or collaborators in other countries?
The international arena is a key focus of our development. This has always been the case. We support companies in their internationalization processes, providing solutions in the countries where they operate. Latin America has been a region where we have worked extensively, and we continue to do so.
Additionally, we participate in an international network, Globalise – The Global Interim Management GroupWe collaborate with this network, providing our executive management services and coverage in the 25 most important countries across five continents. It is probably the world's leading network of interim management service providers, boasting a powerful database and the best interim managers in the world. From Spain, we play a vital role as a bridge between European and Latin American companies.
Our goal is for our companies to become larger, more digital, and to expand into the international market. These are the premises in which we can contribute with our services, adding value thanks to the experience and knowledge of the managers we integrate into the companies.
Within the broad spectrum of services offered by Interim Management, which are the most common and what type of organizations request them?
The circumstances surrounding the need for Interim Management services vary and are perfectly suited to these times of uncertainty, strategic reorientation, and reformulation of objectives. Situations such as organizational restructurings, mergers and acquisitions, financial optimization or cost reduction, supply chain assurance, review of commercial strategy and actions, and management of digitalization or international expansion projects are some of the ideal scenarios for Interim Management services.
Regarding the companies that demand this type of service, we could identify, without being exhaustive, the private equity and investors, companies from various sectors such as: agri-food, technology, industrial, transport and logistics, and services.
What is the profile of the managers who join Interim Management Services?
The profile of executives or interim managers who join services requested by companies is that of professionals with extensive experience in management responsibilities, either within a functional area of the company or in a specific industry. The skills these executives bring to these services are highly diverse: experience, leadership, emotional intelligence, commitment, resilience, composure, critical thinking, and adaptability to change.
These managers readily integrate into the organizational structure, possessing a distinctly executive approach to adding value and achieving the results defined at the outset of their engagement. They are professionals who bring an external perspective, innovative solutions, and diverse viewpoints to resolve situations. Their extensive professional experience has allowed them to navigate and overcome complex, even critical, challenges. As external to the company, they are not influenced by its history, enabling them to propose and implement decisions without being swayed by emotional attachments or entrenched organizational issues.
Our Interim Management services are personalized, flexible and adaptable to each case, always seeking performance for the company.
Companies specializing in Interim Management recommend contracting this service through them, rather than directly with interim managers. What is the reason for this, and what is the difference?
The advantages of using a specialized Interim Management firm for this type of engagement are significant. These include the assurance of having highly qualified professionals perfectly suited to your needs and a professional candidate suitability assessment with thoroughly vetted references. Furthermore, although uncommon, we offer the guarantee of immediate replacement with another interim manager should the first one fail to meet the established objectives. Additionally, we provide ongoing support throughout the engagement, working closely with both the client and the manager to ensure expectations are aligned at all times and that the projected results are achieved.
In other countries around us (France, Germany, the United Kingdom, Sweden, and the Netherlands), the use of interim management services is fully established and standard practice in business. Significantly, in these countries, it is very unusual for a company to consider hiring these services unless it is through a specialized firm, since a freelance interim manager cannot provide the same guarantees as an established interim management company.
Furthermore, European studies on interim management indicate that interim managers hired through specialized firms provide a higher degree of satisfaction (around 40-50%) than those selected directly by the companies using the service. The reasons for this are primarily the haste with which candidates are selected in what are often urgent situations, and the failure to differentiate between the methodology for selecting an executive for a permanent position and that for an interim manager, which are entirely different.
Clearly, our companies should be seen as strategic allies of the CEO or HR departments of companies. We provide qualified managerial talent to resolve current situations, and therefore we should be considered a tool for competitiveness.
Finally, how do you see the future of Interim Management Services in Spain?
I am optimistic. The pandemic has been the most significant social and economic event since the Second World War. Now we have the war in Ukraine. We live in times of uncertainty, but also of opportunity. The last few years have brought significant changes in all aspects of our lives. The world of work has also been impacted and is no longer what it used to be. As our Advisory Board member says, Tomás Pereda. "There are fewer and fewer jobs; on the contrary, there are more and more jobs.The labor market is fragmenting. While traditional employment is declining, we are witnessing a rise in self-employment through a wide variety of unconventional work arrangements. Interim management is one of them.
Companies will need to reinvent themselves by making profound changes to their organizations. They must adapt their structures and processes to manage internal and external talent, as well as the coexistence of different generations, in order to harness their full potential.
Sooner or later, the economy will recover. When it does, those companies that are prepared and adopt innovative management models will have a greater chance of growth. A world of possibilities is opening up before us that we couldn't have imagined a few years ago.
At EPUNTO Interim Management, we have always been characterized by continuous innovation and the pursuit of competitive solutions. Therefore, we aspire to become the best partner for companies.