Latest News - Recession Creates New Interim Role
Friday Oct 30
Interim Restructuring experts required
New board level 'interim' role created by recession
An increasing number of companies have been forced to create a new board level role as a result of the economic crisis, according to Interim Partners. This new type of interim manager has the specialist skills to quickly bring stability to an organisation’s finances and is usually appointed to companies with a turnover ranging from £30 million up to £1 billion.
The role in question is that of the Chief Restructuring Officer (CRO), and they are usually brought in as a less disruptive alternative to asking for a change of Finance Director or CEO. CROs have the authority to implement cost cutting programmes, and should have the diplomatic skills to lead negotiations with companies' multiple funders.
James Harley-Booth, Head of Private Equity of Interim Partners, comments: “In the UK this role has been created by the credit crunch and the number of CRO placements we have made really started to pick up post Lehman Brothers. In the last recession and even up to the start of the credit crunch this role would have led by a turnaround officer but banks are now demanding that this job function has much more authority, power and independence from the CEO.”
Despite this boom in demand for CROs, Interim Partners says that there are roughly only around 100 CROs who have undertaken the role before.
Source: www.thegrapvinemagazine.com - 22 October 2009
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