Stepping in and leading change
There was once a time when organisations looked at interim managers as simply being a type of first aid; corporate tourniquets used to halt the bleeding after some sort of organisational failure. They were temporary employees just filling a gap until the right candidate could be found. But that description no longer applies. While around a third of staff employed on interim contracts do provide gap management as a primary focus, the majority of interim managers offer specialist program management skills for one-off corporate projects. Over the last decade, interim managers have gained the respect of many corporations who have begun to see them as strategic tools in their own right. The trend is likely to continue as the skills shortage takes hold and organisations seek to squeeze every drop of expertise from even temporary management roles.
Enter interim managers
The reach of specialist interim managers is also likely to increase. The UK-based Interim Management Association (IMA) says around one third of its membership currently works in the banking sector. But the impact is also being felt in the retail and manufacturing industries. Other sectors now beginning to take advantage of it include tourism and hospitality, engineering, electronics and the media. Paul Botting, IMA Chairman, says more and more interim managers are being hired to oversee vital changes and restructures. "Much of the focus is now on change management," he told HRM. "It means interim executives are going into major private and public sector organisations, often in leadership roles, to introduce and lead critical changes and improvements."
In many cases, companies will already know what they would like to achieve but do not possess the relevant knowledge or skills to implement the strategy. They are now turning to interim managers to step in and lead.
The IMA says interim managers excel in a number of skill areas. They have had particular success when managing outsourcing and extending shared services. Other specialist services include facilitating and leading corporate restructures and implementing new technologies, risk or regulatory systems.
But interim managers are also able to offer a fresh perspective on an organisation. They can identify needs and suggest ways of improving a business. Indeed, bringing in an interim manager is now a serious alternative to the traditional change management practice of retaining a consultancy. While a consultant may suggest strategies, an interim manager will not only make the suggestions, they will also work to implement the agreed changes and ensure the new systems are working properly.
The new focus on managing change is even changing the way interim managers look at themselves. Some practitioners believe the definition of their craft should be changed to exclude those focused solely on gap-filling. Those contracts that aim simply to keep an organisation running smoothly in the face of unexpected vacancies are not 'interim' managers in this new modern sense, at least according to Mary Ann North, CEO of Posada Consulting.
"The field of interim management is fairly new and evolving," the specialist manager who focuses on revamping medical schools told HRM. "The managers that go in and work on a temporary basis to fill a gap aren't there to implement changes (and so) shouldn't be considered 'interim'."
So when is the right time to make the call?
Intellectually, companies know they need to bring in changes to stay ahead of the pack. But the theory and practice do not always match, and many companies struggle with the reality of implementing change. North says the biggest danger is waiting until the trouble hits. Companies often need to implement big changes even when the going appears good. "Progressive organisations look forward, and small steps don't always get you where you need to be," she warns. "Real change is hard, and an interim manager is able to come into an organisation and pull off the band-aid."
Although there are interim managers who have generalist skills and can work in all areas of business, most organisations will opt for an interim manager with experience and skills that complement their own market. Working in different industries poses a unique challenge for interim managers and only the most versatile can make it work. C.E, an interim managing director working in Europe, says there is a real risk of burnout for interim managers that constantly move between industries. "This type of work can be extremely difficult," he says, warning that it places a manager on a steep learning curve with every new job.
Sourcing a trusted interim manager is usually best done by word of mouth. A company should ask around other organisations in their sector, or contact interim management organisations for assistance. Once they have a few names, they should ask for references and an explanation of how the potential recruit goes about their work. Employers need to make sure that the expected work style is acceptable and will be supported by the board of directors.
Interim managers on the job
Interim managers are obviously not long-term employees. According to the IMA, the average length of an assignment is 137 days. North says it is in both parties' interests to keep the contract short term. "I try to keep the project within a six-month timeframe," she says. It is also important to have strict deadlines within the overall project length, particularly the initial consulting period. "I sit down with the company and create a cut-off date for the consulting phase in which we analyse the situation, present our information to the board, and spend time receiving comments and vetting it."
Once the interim manager is hired, it is important that a steering committee or advisory board is in place to work and communicate closely with the recruit. "I always have an inner circle," North says. "Once I have a committee in place, I'll make sure that everyone is in agreement. If I hear someone say that a change won't happen in the company, I bring this to the attention of the committee and if everyone agrees (possibly because the issue is a 'sacred cow' within the organisation) then I won't waste my time."
Wasting time is not high on the priority list of many interim managers. Getting results is. With short timeframes applying, the cooperation of management and open communication lines become essential for success.
Either way, the interim manager role is a challenging task. There are plenty of obstacles that can stall or halt progress. Some of the biggest challenges faced by interim managers include complications with unions, issues with the organisation's corporate culture and a lack of capital. "When an organisation doesn't have the capital to implement changes, fund raising or taking on debt are options that have to be seriously considered by the board," North says.
The key benefits for business
Hiring an interim manager allows a company to tackle corporate change with both speed and objectivity. It can also lay the groundwork for important knowledge transfer and capacity building, ensuring the manager's skills can live on in the organisation long after they have moved on to the next assignment.
Local specialists are often able to start within days of recruitment. Even international managers are used to moving quickly to where the work is. This means that once the need for an interim manager has been identified, a highly qualified specialist can be on-site and working to develop and implement a strategy much faster than other means of change management.
An interim manager's natural objectivity is also important. By hiring an outsider, companies understand that the recruit will not be constrained by the politics, personalities and protocols of long-term staff. The interim manager is therefore able to focus their energies on critical tasks, safe in the knowledge that their performance will be measured solely on the results achieved.
Life as an interim manager
There are, of course, benefits for the manager as well although those already in the game warn it is not for everyone. North says she loves working as an interim CEO, but cannot deny it has an effect on her family life.
"There's a little bit of a problem with work-life balance, but I love the work," she says. "You're frequently moving to new locations, which is very disruptive to home life. But you get the opportunity to make a new set of friends and explore new cities."
Most interim managers are former full-time executives, now semi-retired and happy to have more control over their lives. Taking short-term but intensive assignments, often in new locations, does have a cost however. In particular, it makes it very difficult to raise a family.
C.E., a father of two young children, is one of the few interim managers who are neither single nor part of the near-retirement generation. He acknowledges the disruption his choice of career causes, but says he tends to ensure his weekends are devoted to his family. "I'm located away from my family during the week," he says. "My wife complains about being a single mother!"
No matter what the personal circumstances, interim managers and those considering a move into the industry should make sure they keep up to date with this rapidly changing field. North stresses the importance of finding a suitable mentor to help guide managers through the constant challenges and obstacles. Far from protecting their unique turf, she says there are several interim executives, including herself, who would be willing to help others make the career change.
There are significant business cases for both organisations hiring interim managers, and managers wishing to make the switch and work on an interim basis. For businesses, it can mean a no-fuss route to serious and necessary reform. While for the managers themselves, being available for short-term roles can provide fast paced, challenging and ultimately rewarding business experiences. Where once, an interim manager was only hired to steady the ship, today they are climbing on board to change direction with speed and precision. Interim management is now a strategic business tool in its own right and interim managers are enjoying long-term, and often life-long, career opportunities in temporary management postings.