NEW YORK, Dec. 15, 2005 (PRIMEZONE) -- ReefPoint Associates, a leader in executive interim management in the U.S., today predicted that 2006 will see the largest use ever by American companies of interim management to deal with management transitions, restructurings and plant shutdowns, and specialized issues like Sarbanes-Oxley internal control regulations. Interim management, which provides experienced senior managers on short notice, is a tool that has been widely used in Europe for nearly 30 years.
Robert M. Kuhn, Senior Partner of ReefPoint, said, "As the pace of economic activity increases in 2006, companies can expect to have increased management turnover. However, given the fact it takes six months or longer to complete a typical senior manager search, many companies find that they cannot leave key positions open for that long. As a result, many more will turn to the interim management model to maintain internal momentum, preserve competitive positioning in the marketplace, and protect shareholder value."
Kuhn can address:
-- why European companies have long utilized the interim
management model more than their American counterparts.
-- Why boards of directors of major U.S. companies are more
open now to interim management as a tool to deal with major
management transitions;
-- why companies undergoing restructurings, workouts or other
forms of corporate stress are often good candidates for
interim management;
-- how interim management fits into other long-term corporate
trends like outsourcing and use of temporary employees;
-- why use of the interim management model may eventually be
mandated as a corporate governance need at larger companies
faced with resignations or terminations of key senior managers
like the CEO, COO or CFO.
"What we're seeing in the corporate marketplace is a serious re-evaluation of the risks involved with leaving a senior management position vacant for six months or longer as companies face increasing challenges in terms of products, competition and economic conditions," said Maureen F. Quinn, Senior Partner of ReefPoint. "Sarbanes-Oxley, in particular, has increased attention on the need for continued strong leadership at all levels of the company. The interim management model is one more tool that boards can use to assure that need is met through focused use of proven change management tools."
About ReefPoint Associates
ReefPoint Associates (www.reefpointllp.com) is a leader in executive interim management in the U.S., working with a wide range of public and private companies undergoing management transitions. ReefPoint is a Member Company of the EIM International Network. Founded nearly 30 years ago as a partnership between Egon Zehnder, the premiere European executive search firm, and Boer & Croon, a Dutch consulting firm, EIM now operates as an independent network of partner firms with 10 offices in nine countries.