Interim Management in China

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How going Local (Expat) can help businesses in China, especially during the current global economic slowdown and in light of the new LCL.

Foreign Nationals have been working in China and Asia for decades.  Most of them were originally on expatriate contracts, but a growing number of them have decided to stay in Asia now that their contracts have been successfully completed.  Step in IMS (Interim Management Solutions), part of the J.M.Gemini Group of Companies to pick up the best C-level and senior level executives and managers and establish a high quality China experienced resource pool.

The use of Interim Managers is a common business tool in Europe and the USA, but is just starting to gain acceptance in China.  There are many different situations where businesses can benefit from using Interim Managers including the obvious one of flexibility.  China is about to enter a sustained period of business restructuring, mergers & acquisitions and rationalisation.  This is where experience really does count.  Interim Managers from IMS have lived through and managed growth, efficiency drives, cost savings, large scale change.  They have the T-shirt plus they have adapted culturally.

The new 2008 Labour Contract Law (LCL) has significantly reduced flexibility in the work place.  The knock-on effect will make MNC’s much more cautious when recruiting Senior Executives and Managers.  This is where using an experienced Interim Manager can be a real bonus, filling assignments for 3 to 6 months while the company takes its time to find the right permanent executive.

There are also many cases where Interim Managers are deployed for longer periods, typically 12-18 months in order to restructure a business, or relocating a plant & leading employee training programmes.  Business models in China are also changing from one relying on vast amounts of cheap labour to more efficient western systems based businesses.  A good example of this can be appreciated in the case of Interim Manager Joe Zink. 

Joe is an American citizen and a highly experienced IT Professional, providing IT Project Direction and Management, with over 15 years experience in the IT field of which 3 years working in China (mainly Beijing & Shanghai).  He has vast experience with Microsoft Systems and has even managed the relocation of an entire IT division to a new facility in the US.  Joe speaks Mandarin at a conversational level and he is continuously improving his mandarin skills. 

His current assignment for IMS is as Director of Information Technology for a textile company based in Suzhou, about 1 hour outside of Shanghai.  He is now into the 7th month of a 12 month contract where his main KPI is to specify and deliver a new ERP system.

Joe’s hands-on experience has been invaluable in bringing the company’s IT infrastructure up to the required standards necessary prior to rolling out a successful ERP platform.  Being able to adapt and provide solutions not in the original assignment are all part of the skill set of the Interim Manager

General Manager of the textile company, Geoff Newman comments, “Joe’s prior experience from the IT industry and working here in China has meant the project is running smoothly and to budget.  The new ERP system has been specified and the next steps are the rollout and staff training (both operators and systems maintenance).  Once the project has been completed, local staff will take responsibility for the systems.  The use of an Interim Manager is exactly what our company requires to ensure the project is a cost effective success.  I can see that Joe’s skills will be much in demand”

Joe Zink adds “It was very challenging especially in the beginning as I had to put new processes in place and re-organize the IT structure of the company. I got support from the management and the IT team members and once the IT department was stable we could start with the ERP system implementation.”

Using an Interim Manager provides businesses with flexibility and experience without additional head-count.  IMS takes care of all the visa, insurance and payroll administration to provide a simple outsourced solution.

For more information log on to http://www.jmgemini.com/ims

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