Columinate's Manager on Contract program offers interim general management that supports co-ops in transition. 

During an period of management transition, quite often it is more advantageous for a co-op to use the services of a Manager on Contract than to feel like they are forced into a quick decision. While some co-ops have a solid bench of potential management candidates, others do not have this luxury. A Manager on Contract (MOC)  will allow the board an adequate timeframe to carry out a proper search for a qualified candidate.  

During an MOC contract, a seasoned interim general manager can maintain or improve the current operating conditions. During the search, while using the services of an MOC the store will not lose ground and will most likely improve—which will create a smoother transition for the incoming manager. And the Manager on Contract can enter the co-op without any pre-conceived opinions on the operation and staff. Since there are no personal connections, during the interim engagement the MOC will be able to make tough decisions that may have been difficult for previous management.  

The typical contract period for an MOC is three to twelve months, but we will always try to structure a timeframe to fit the specific needs for the co-op. 

Some reasons for Manager on Contract 

1. Departure of the general manager (GM) due to retirement or relocation; with these circumstances, the purpose is to keep the co-op continuing in the right direction while the GM search is in progress. 
2. Sudden departure of the GM. 
3. The co-op has lost direction and needs to get back on track. 
4. The co-op is in financial trouble and needs assistance in regaining the road to profitability. 
5. It is a start-up co-op. 
6. The co-op is beginning an expansion and needs the assistance of a seasoned GM who can also act a project manager—an MOC with experience in expansion, remodeling, or new construction. 

In the final section(below), we review each of these possible scenarios. 

During the contracted engagement, the MOC would also have important but unstated duties including working with the board and training them in how to manage a good GM—many good or potentially good GMs have been lost due to micro-managing and overstepping boundaries. (All Columinate interim managers are well versed in Policy Governance). 

An MOC will anticipate problems and be prepared should they arrive. And if there is an issue where the MOC feels a second opinion is needed, they have access to a team of Columinate professionals, covering many categories, who can assist. 

Qualifications of a good Manager on Contract 

1. Morale Builder:  When store morale is low, it hovers like a dark cloud and creates an atmosphere of, "Why do I work here?" The customers sense this and decide to shop where it is less depressing. If you improve the morale or at least get it turned in the right direction, the benefits will be instantaneous. The staff will begin to enjoy coming to work, and the customers will see a positive change. The staff will support you more when morale is climbing. 
2. Customer service: A lot of GMs and department managers talk good customer service, but lip service does not pass the test. A GM must lead by example and expect the staff to follow. Do the right thing. 
3. Approachable:  A GM must be approachable by any member, staff, or non-member customer. You will be surprised how this will help sales growth. We cannot sit all day in our ivory towers, or in many cases our dingy office, and expect the store to be on autopilot.   
4. HR skills: This is important, because the quality of staff begins with the interviewing, hiring, training, and motivation of employees. Many times, managers make bad hires just to fill a spot, which creates problems and affects morale. The HR side will also monitor pay rates and evaluation procedures. In our business, there are sometimes hard decisions to be made, such as disciplinary procedures. An MOC must be able to handle disciplinary decisions up to and including discharge. Always have documentation for any disciplinary action. 
5. Communication skills: This is key in any store, but more important during a transition of management. The staff would like to know what to expect, and many would like to learn from the interim general manager. 

There are many other relevant skills the MOC may need, or else to draw upon from others: 

• High standards 
• Purchasing experience 
• Team building 
• Coaching and training 
• Budgeting 
• Financial control 
• Strategic planning 
• Scheduling/labor control 
• Marketing 
• Product knowledge 
• Project management (if needed) 

Scenarios and reasons for hiring a Manager on Contract 

Departure of general manager due to retirement or better opportunity in a well-run store: 

A retiring GM may be leaving a store that has a stable and solid performance record. This is usually the shortest tenure for an interim manager. A Manager on Contract can maintain trends and possibly improve on procedures that the outgoing GM has implemented. Also, if this is a well-functioning co-op, the board may have an internal candidate in mind who can benefit from the one-on-one working relationship. The MOC can direct efforts to training and fine-tuning this candidate. If the interim feels that this candidate is not ready, it would be the MOC's responsibility to inform the board.  

Sudden departure of general manager: 

Often, in this instance, there are more problems in the co-op than the board was aware of or is willing to admit, especially if the GM was asked to resign. This can be and often is a "turnaround" situation. An experienced MOC can take the reins and re-establish control and assist with questions that may arise about the change and keep the staff informed properly concerning the plans for future management.  

Co-op has lost direction: 

This is usually a case of training the existing GM and staff. It is often a "turnaround" opportunity. If the GM has exited, then the MOC will have the task of motivating the remaining management team to set the ship right, using the tools provided to teach and improve operations. The MOC assists in the manager candidate interviewing and selection, while stressing that any choice is the sole decision of the board.  

The financial health of co-op is in serious condition and needs assistance in regaining profitability: 

There are many causes for not achieving budgeted figures. An experienced MOC can help determine the cause of the losses and take steps to stop the slide and begin a climb. Corrective measures may very well result in unpopular decisions. Causes for losses include the following: 

• Over-scheduling 
• Over-buying 
• Too much labor 
• Poor customer service 
• Theft 
• Poor staff morale (this could also be an underlying cause of some of the other issues) 

Start-up co-ops: 

The beginning months of a new co-op can set the trend for the future. An experienced MOC can help the co-op get off to a good start while mentoring the chosen GM. It should be easy for a prospective GM to learn from a Manager on Contract, because he/she will know the MOC is there for a short time. In fact, it is an MOC's duty to pass the duties to a qualified candidate in a timely manner. This recent Columinate Library posting discussed interim management and startups in depth.   

A co-op that is beginning an expansion project or remodel:  

This could be a GM/project manager combination. This scenario would also call for an MOC with remodel and new construction experience. 

Garland McQueen, Manager on Contract Coordinator

404-786-3508

garlandmcqueen@columinate.coop