How do interim managers fit in to a business and what do they do?

Interims are increasingly being hired to deal with difficult situations as companies seek experienced, capable, proven executives to add additional horsepower at critical times. Even so, after more than two decades since they first arrived on the scene, interims still have a bit of an identity problem, with the role remaining widely unrecognised among potential clients.

Applications for interims

Interim roles generally fall into three categories:

1.Turnaround/Crisis

The highest-profile use of interim executives has been in crisis management or turnaround situations. Here the interim executive offers an ideal solution – they can be an objective outsider, available immediately, able to focus solely on the problem at hand, and a heavy hitter specialising in turnaround. Time is of the essence, as the business will inevitably be running out of cash and in danger of being put into receivership. There will be no time to review and reflect. Immediate action must be taken to save the business. The interim will review, plan and implement while at the same time achieving ‘quick wins’ wherever possible. The approach will be essentially pragmatic, focused on the short-term cash flow and day-to-day survival while building a medium-term plan. A hands-on approach is required.


2. Critical Vacancy or Gap Management

The second area in which interim managers add value fast is through filling critical gaps in management teams following the sudden departure of an executive or senior manager. If an executive has left an organisation and a replacement is required, an interim is the perfect experienced solution to assist in ‘holding the fort’ while ‘sense-checking’ the profile for the replacement. They can then help to recruit and bring on-board the new executive. Recruitment of a senior executive can take six months or more, and often an organisation cannot afford to wait. The primary requirement in this instance is continuity of day-to-day management to ensure business momentum is maintained. Candidates must be immediately available and suitably overqualified to be credible and effective from day one. The client may propose that the interim defer changes until the full-time recruit arrives so that the individual can stamp their own mark on the organisation. However, engaging an interim executive presents the client with a window of opportunity to obtain an outsider’s view of the business and to achieve some rapid deliverables. As the interim has no career aspirations with the client, they can think and act quite objectively and take unpopular decisions if necessary.


3. Change Specialists

Planned Change - managing the transition between strategy and its implementation, allowing you to take control of your business again at the earliest opportunity.

There are many planned change situations – such as acquisitions, disposals, mergers or restructurings – in which the client recognises the need to import additional management skills and experience. This might be viewed as the exclusive domain of the management consulting firms. Management consultants are often hired to offer an injection of intellectual horsepower, and clients have the added security of making decisions backed by tried and tested ‘blue-chip’ recommendations. The management consulting firms have tailored their offerings accordingly and now offer a very broad spectrum of services, from totally strategic to highly technical. They employ the brightest graduates and MBAs and generate much of the ‘thought leadership’ behind new business methods. However, it can be the case that few of the consultants deployed have significant line management experience, with consulting firms facing some criticism that their clients are left with little more than a detailed report. Responsibility for making the changes recommended and acquiring the necessary skills rests with the client. This is where the engagement of an experienced interim manager can make the difference, allowing an organisation to implement and operationalise the strategy or planned change.

Helping investment companies and family firms and realise or maximise their investment potential/value

When private equity or investment companies buy or take over organisations they often require an injection of operational management expertise to drive a turnaround, restructure, management of bank relationships or plans for a transaction. Family firms may equally be looking to shape up their companies for a sale. A senior interim can help review, plan and recommend the best course of action based on many years of tried and tested experience – then implement the plan as part of the management team or its leader.

Whatever role an interim executive is engaged to take on, it is important to remember that, unlike permanent employees, they are a ‘free agent’, unencumbered by internal corporate restrictions. Success hinges on a strong thread of trust between interim, intermediary and client. Anyone hiring an interim needs to be quite clear that they will arrive with expectations. He/she will need clearly agreed terms of reference and lines of authority. Providing this, and a clearly defined outline of what you want them to with a realistic timeframe are the foundations for a successful outcome.