Electricity prices and Interim Managers

Electricity demand in the UK has fallen 4% - which is the first ever recorded fall in electricity consumption (since at least World War II), according to the BBC - yet my electricity prices have not reduced at all in recent times as far as I know.

Normally when demand falls, prices follow, but apparently not in the world of energy pricing. Maybe it's not really a competitive market after all. But if it is (as the energy companies insist) then they must be very inefficient if they cannot bring prices down, especially since oil prices have halved in the last 12 months.

So, how about the government allowing a team of independent Interim Managers loose on the electricity companies charged with driving down prices for the consumer. They would do what all Interims do and actually get stuck in and work on the front line in the businesses to make things happen- rather than another enquiry by a quango?

Are we all Interim Managers?

Many managers and executives last only a short while in post before moving on (or being moved on) - so are we all really Interim Managers with each new role being effectively a new interim assignment?

Well- yes and no. Clearly with the start of each new role for a permanent, both expectations (from the employer) and interest (from the employee) are high, but inevitably the internal politics and repetition take their toll on productivity levels.

However in the case of an Interim, the contractual relationship is different. Not the classic exploitation of the employee by the employer on which western capitalism relies, but more a business to business relationship where the Interim and the employer have a mutual interest in making the project a success.

Interim Managers think differently

Can Interim Managers be more effective than permanents?

Of course - because they're totally focused on finishing the job, not on keeping the job.

No worrying about what my boss will think when I suggest a new way of doing things which will increase the organisation's productivity, but may threaten his authority or team headcount.

No worrying about keeping the job as long as possible to pay the mortgage, what's more important is to deliver the required results in as short a time as possible- so that the customer is very happy.

It's a very different mindset delivering interim management services to that of an employee.

Sticky housing

House prices are rising - oh really - I don't think so!

The problem is in a falling market, buyer expectations on price collapse much faster than seller's. The reverse is true in a rising market.

With falling real incomes, interest rates due to rise (as sterling hits a crisis of confidence anytime now due to the Brown debt splurge) consumers moving slowly from spend to save mode and unemployment set to soar; house prices have another 40- 50% to fall from here over the next few years.

When the average house is selling for £75, 000 (in 2011/12) we'll know we've hit the bottom of the house price declines.

Until then - all else is fantasy so stay away if you're a buyer