The concept of Interim managers is common across many industries and businesses today. In fact, since the outbreak of COVID-19, more and more businesses are looking forward to working with interim managers in the future.
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According to multiple surveys, digital leadership and interim management will be two of the most in-demand services over the next few years. This comes in the wake of coronavirus, which changed life as we know it and how we conduct business.
Interim managers, also known as temporary executives or provisional managers, are outsourced to help failing companies, transitioning companies, and firms who have recently vacated a senior position.
Recruiting a permanent manager in such situations is no longer ideal. According to multiple studies, 3 out of every five newly hired CEOs find it difficult to make an impression in their first 18 months. Additionally, a bad managerial hire could plunge the company into losses, with companies reporting losses in excess of $60,000 to $2.7 million.
Such factors have led firms to prefer interim managers over traditional or permanent executives. Here are five reasons why interim managers are better than permanent managers.
The Origin and History of Interim Managers
Since the industrial revolution, companies worldwide have always seemed to lean towards permanent employment, even in senior positions. However, after a couple of economic recessions, specifically in the 1930s and 1970s, firms reconsidered this position.
The recession that plagued the early 1990s led businesses to look for quick and effective solutions to senior problems. As a result, the concept of interim managers came to be. Interim managers or company doctors were associated with failing businesses and the need to replace executives after sudden departures.
Today, interim managers are common across the United States and European countries such as the United Kingdom, Belgium, and the Netherlands. Their niche has broadened and matured outside the realm of turnaround.
Why Interim Managers Succeed Faster than Permanent Managers
Here are the skills and qualities that interim managers have
Interim Managers Have Experience
Temporary managers have the necessary in-depth industry experience. They have a track record of excellent project management. As a result, they can quickly hit the ground running after taking on a given assignment.
Interim Managers Bring with Them Technical Skills and Abilities
According to a survey, over 90% of CFOs and FDs plan on working with interim executives over the next 12 months. From this figure, 46% said that project management was the main reason as to why they would like to work with interim execs.
What’s better is that approximately 55% of all interim managers are on C Level assignments. C level assignments include acting in capacities similar to CEOs, CFOs (chief financial officers), FDs, CIO, and COO positions. People operating in such capacities control about 46% of all corporate operations. This goes on to show just how effective interim managers are.
Shortly after recruitment, interim managers demonstrate their leadership skills by motivating and leading the current crop of employees towards accomplishing organizational goals. They set achievable goals, especially in the day-to-day operations of the organization.
Interim managers succeed faster than permanent managers because of their experience and technical know-how. Permanent managers might not have experience handling different and challenging assignments where interim managers do.
They are Highly Optimistic
Optimism, especially during challenging times riddled with COVID-19, is hard to come by. However, one reason interim managers always exceed is because of the power of their optimism, and rightly so.
Temporary executives take on failing projects and mobilize their resources to be able to provide the desired transformation. They don’t look at the economy and hope that things will get better. Rather they use their talents to drive the company to effective and sustainable solutions.
Interim Executive Managers are Time Sensitive
Provisional senior executives succeed faster than permanent managers because they are cognizant of the project time sensitivity. Many interim managers are sought after because of their effective project turnaround in a short time span.
Project assignments last not more than two years. However, the standard contract life of an interim manager is one year. Temporary managers succeed faster than permanent managers because they can orchestrate change in a short time span.
Time management is a skill only top-level managers possess. Such skills make them permanent managers.
Interim Executives Have a Strong Mindset and are Results Driven
Another reason why interim manager succeeds faster than temporary managers is because interim executives have a strong mindset. They have a strong task orientation, which makes them accomplish tasks faster than traditional managers.
Where consultants and permanent managers might be motivated by the financial remuneration, interim managers are judged by their ability to deliver immense value to the client.
Key Differences between Interim Managers and Permanent Managers
It is clear at this stage that temporary executive directors are reasonably overqualified for most senior managerial positions. They are results-oriented and often deliver results that are beyond the initial terms of the agreement.
Such qualities make these individuals highly sort after by many companies today. So, what are the main differences between interim managers and permanent managers?
Interim Managers are Problem Solvers
Interim managers are hired because of their track record and experience in solving problems limiting companies from achieving profitability. On the other hand, a permanent manager is hired because of their leadership skills, which are important for mobilizing the current crop of employees towards achieving organizational goals.
Duration of Company Engagement
What is an interim position? A position held by an individual for a short time, usually less than one year in the corporate world. Appointment and succession are all made temporarily.
Interim managers often draw contracts that span no more than a year. However, it is normal to see some interim executive managers stay on a given assignment for two years. In addition, clients often approach interim managers and offer permanent positions, but most are committed to their craft and end up declining such offers. Temporary directors leave once the contract has run its course.
On the other hand, permanent managers are hired for the best results in the long run. As the name suggests, permanent managers have a degree of permanency attached to their jobs. It is common to hear permanent managers who have stayed with the parent organization for over 10 to 30 years.
What Kind of Assistance do Interim Managers Offer?
What does an interim manager do? They act as temporary leaders in companies undergoing critical change or transition. They fill a position on short notice and use their extensive experience to guide a business to accomplishing organizational goals.
So, what kind of assistance should you expect from interim managers?
Project Management
Project management is the extensive application of methods, techniques, experience, and skills to achieve specific objectives within the desired parameters. It best suits interim managers as project management has a set beginning date/ time and end date/ time.
Project management is often challenging as project managers must accomplish all the project’s goals within given constraints. Interim managers are perfect for project management. They have the necessary experience required to accomplish project goals.
Project goals are such as;
- Implementing new strategies
- Expanding into other market regions
- Implementation of new technology
- Relocating or opening up new branches
- When there are mergers, demergers, or acquisitions involved
- Company restructuring
- Major programs that lead to cultural changes
Gap Management
A managerial skill gap occurs when a company or manager finds themselves lacking the skills or human capital necessary to operate at the highest level. According to a survey, over 72% of British employers were worried about a shortage of leadership and management skills in 2012.
Gap management occurs due to a host of reasons. For instance, a senior executive in your company could have recently vacated his/ her position due to death, resignation, or personal reasons. Managerial gaps could occur as a result of poor staffing, acquisition, or executive recruitment processes.
As a result, companies are advised to outsource high-level executive directors to fill the management void. But before succession, expect the following services from an interim manager with respect to gap management;
- The abrupt departure of a senior manager
- Managerial gaps from a start-up enterprise
- Change in management
- Restructuring
Turnaround Management
Turnaround management is a process involving the renewal of corporate practices. The process utilizes analysis and evaluation tools to save companies in distress. Failing companies turn to managers with the technical know-how to revive them.
Turnaround management is time-sensitive. Companies are often advised to act quickly before it’s too late. This is where an external expert such as an interim manager comes in.
Turnaround management has practices similar to those in interim management or management coaching. Here are some forms of assistance in turnaround management that you should expect from your interim managers;
- Crisis management
- Turnaround of underperforming divisions or departments
- Recover failing projects
Should you Hire an Interim Manager or a Permanent Manager
The short answer; it depends on your company’s situation. Some situations call for professional assistance from interim managers and some of which require a permanent manager.
For instance, if you are going through a rough patch causing a massive dip in your profits, it’s probably time you considered working with an interim manager. Here are some other situations that call for the professionalism and skills of an interim manager.
- If you need to fill a managerial gap right away
- If you are launching your products and services in a new market and lack the managerial skills to see the project through.
- You are going through a transformation and lack the necessary internal capability to see the project through successfully. According to a recent survey, only 42% of all businesses have the internal capability of successfully orchestrating change in their businesses.
- If you need a specific set of skills and talents that are currently lacking within the organization.
- You are going through a merger, demerger, or acquisition.
If you check at least one of these boxes, you should strongly consider looking for an interim manager.
Are You Looking for an Executive Interim Manager?
Headhunting for interim managers is not an easy task. It can take a firm 6 months on average to fill a managerial gap through an interim manager. In addition, the costs of the executive search process tend to be slightly on the higher side.
Remember, temporary executive directors, are not people who look for jobs online or on newspapers. Instead, they are well connected and only get notified when a job matching their qualifications arises. You can still choose to do the executive recruiting process using your company’s recruiting team, but that can be costly, and lengthy not to mention the heightened risk of having a ‘bad hire’. For all this reason, you should strongly consider using an executive search firm specializing in executive search services such as Flexi Personnel.
Flexi Personnel is one of Africa’s leading HR solutions firm with a track record of delivering interim executives globally. We have worked with major global brands looking to set up shop in countries such as Kenya, Rwanda, South Africa, Nigeria, Egypt, and Ghana, just to mention a few.
We are constantly evaluating and accepting applications from interim managers. Most of these individuals contact us through our website, but we also have a large network of interim managers, ex-clients, and fellow peers, all of which we have gathered over in the last 12 years.
Whichever source it is, we cautiously assess candidates before accepting them into our portfolio to ensure that we meet the high standards that you deserve. We have a massive network and database comprising of proven career professionals looking for job opportunities. Quickly, we match an interim manager with your company’s requirements to deliver the best results.
We would like to work with you on your next managerial project. Contact us today at Flexi Personnel for interim management solutions or any other human-resource solutions.
