Many business organizations suffer crises that are characterized by long periods of economic turmoil. The key to quickly getting out of such a rut lies with interim management. In this blog post, our executive recruiters will give you a step-by-step guide on how you capitalize on interim management to navigate change and crisis.
This article will cover the following :
Why Consider Interim Management?
The business environment is rapidly changing, making it unpredictable and highly competitive. Furthermore, the global pandemic in COVID-19 has brought about significant changes to the way we work. As a result, many businesses have been put out of work, with some finding it increasingly difficult to cope with the existing business conditions.
Some situations, such as an outbreak of a viral disease or the sudden departure of a senior executive, compromise a company’s ability to remain profitable. Such unfavorable conditions are known as business crises.
The key to effectively handling such situations lies with interim management. According to multiple surveys, interim management skills and digital leadership will be two of the most in-demand skills in the near future.
Interim management is a concept actualized by interim managers. Also known as temporary executives, interim managers are quickly making a case for future managerial solutions. In fact, reports show that since the outbreak of COVID-19, over 90% of CEOs would like to work with interim managers over the next few years.
With the help of top executive search firms such as Flexi Personnel, interim management has found traction in Africa, Europe, and the United States.
What is interim management?
Interim management is the provisional dispensation of leadership, skills, and resources by a proven manager to steer a business to favourable economic situations. The word ‘interim’ refers to short-term or temporary. This word is used in the business world to describe a situation lasting not more than a full business year.
Interim managers are contacted with the help of executive search firms. They then discuss the details of their contract, which runs no more than 2 years. It is normal for these leaders to make new proposal clauses in their contracts as they deem fit.
Who is an interim manager?
Interim managers are executives with a proven track record of crisis management and overall business improvement. Such individuals are outsourced by businesses to find solutions to existing problems while taking on senior and strategic roles. Additionally, they achieve this feat in a short period before heading to the next project.
Acting managers are specialists whose main assignment is to implement change, fill a managerial gap, or improve performance in a given organization. The swift and quick business turnaround makes them an excellent fit for companies looking to solve a problem in the short run.
Among the other functions, an acting manager’s main task in an organization involves quick turnaround in the client’s organization. They provide direction and leadership to help the organization meet its organizational objectives.
More and more businesses see provisional managers as an excellent yet cost-effective solution to crises that plague them. Such managers have experience in executive roles, including CEO, CFO, Executive Director, CIO, COO, and CMO positions.
Are interim managers consultants?
The role of acting executives is often confused with senior advisors’ and consultants’ roles, with some people using the two functions interchangeably. However, a consultant’s job description revolves around analyzing, reporting, and giving recommendations to existing problems. Once this is done, a consultant is free to leave.
A provisional manager performs in a similar capacity, but he/she goes a step further. After giving recommendations, the manager will then go a step further by tackling the problem themselves. Additionally, the manager has the power to make decisions that will affect the future of the company, while a consultant does not.
Interim Management after COVID-19
Since the outbreak of the viral disease, coronavirus has significantly changed the way we work. Regardless, all businesses have since remained focused on steadying the ship.
Many areas of business have been affected by the ripple effect caused by the pandemic, including management. As a result, enterprises are more adamant than ever before to look for sustainable solutions to such problems.
All these factors have led organizations to turn to interim managers. Here are trends observed in interim management since the outbreak of COVID-19.
- The internal capacity to implement change and steady the ship is limited in organizations today. In fact, a recent study showed that only 42% of all businesses are able to implement change. As a result, organizations are turning to strategic advisors on a short-term basis to help steady the ship and implement the necessary change.
- According to a recent study, less than 10% of people would want things to go back to normal when a cure for COVID-19 is discovered. This goes for management practices such as interim management.
- The future of many organizations is uncertain. As a result, many companies would prefer working with interim managers with expertise in mergers, acquisitions, and organizational design. Such talented leaders are not affected by company politics and are able to make tough decisions without fear of fallout with the organization. This also goes for relationships with staff and other board members.
- The current business environment presents a new and unchartered territory for CEOs. In fact, hiring a new CEO now is risky as reports show that 3 out of every 4 newly appointed CEOs struggle to make a positive impact in the first 18 months.
As a result, more and more businesses are now considering interim managers as solutions to this problem. They have the quality and expertise to make the best strategic decisions for a given corporation in the wake of tough economic conditions. Besides, about 55% of all interim managers are on C-level assignments.
Benefits of Hiring an interim manager
As the client, there are many positives that you can enjoy from hiring interim managers.
- Quick Turnaround
Interim managers are best known for their ability to catapult a firm from crisis straight away. As they are well versed in urgent projects, interim executives are able to make quick and necessary decisions to overturn a business’ current situation.
As a matter of fact, temporary executives are quick off the blocks and usually start operations within the first or second week. Termination of the contract is often after a year or completion of the assignment. - Cost-Effectiveness
The cost of hiring such executives is cheaper, considering the length of stay. On average, an interim manager will stick around for only a year. This is cheaper than having a full-time executive.
To put it into perspective, a full-time employee comes with added costs such as insurance, pensions, holiday pay, and other allowances. A provisional manager is only paid for the days they work with no extra fees. - Calming Effect
In any given organization, the departure of an executive often causes anxiety, stress, and fear among staff members. The same can be said about transitions such as acquisitions and mergers. As a result, the staff ends up losing morale and feeling disjointed. However, a temporary manager has the skills to restore calm while vanquishing the existing turbulence.
- Rich Set of Values and Experiences Provisional executives bring with them a rich set of values and experiences from working with many organizations. This could have a positive impact on a given company’s culture. As a result, the company could improve for the better with regard
to conflict resolutions, management of employees, workarounds, and the overall processes within the organization.
When to hire an interim manager
It would be in a company’s best interest to hire an interim manager when in crisis or in a situation that demands a quick turnaround. In more ways than one, a provisional manager provides the necessary support when an executive unexpectedly leaves. Additionally, it would be best to hire an acting manager when the board needs a refreshing perspective on propelling the business in the right decision.
Provisional managers work best when the board is looking for such talents to strategize on operations involving long-term leadership. The managers will hold these positions until a permanent solution is found. Their objective perspective will prove to be valuable in the short run.
There are different criteria used when shortlisting candidates for interim management positions. For instance, before a firm settles for a viable candidate, they must first look at their profile and decide whether the individual is a cultural fit, has good personal characteristics, has a proven track record, among other factors.
However, this process is tedious, rigorous, and time-consuming. For this reason, firms opt to use temporary executive staff outsourcing services to help them identify the best provisional managers for the project at hand.
Business Crisis Leading to the Need for Interim Management
A business crisis is a situation or event that causes disruptions to business. A relatable business crisis example would be the outbreak of COVID-19 which caused significant disruptions to most companies worldwide.
When such situations occur, companies are forced to seek quick and effective solutions.
They include;
- A sudden gap in leadership, i.e., the death or retirement of the current executives.
- Natural disasters such as flooding and earthquakes
- A sharp rise in the factors affecting the cost of production, such as fuel and electricity.
- An outbreak of a dangerous disease
- Restructuring in companies
- The crisis affects suppliers, customers, and other business stakeholders.
- A crisis affecting a business’ reputation.
- Going through change, i.e., acquisitions, mergers, or implementing new strategies
- Need for change or new strategies
It is essential to know how to deal with crises. For such reasons, firms opt to have temporary managers deal with such situations.
Conclusion
As mentioned earlier, the role of temporary managers is increasingly becoming prevalent in today’s marketplace. Market indicators show positive signs of growth when such measures are employed in the business.
With the current trajectory rate, it is safe to assume that interim managers will replace traditional management consultants in the near future due to the rapidly changing business environment. So, what does this mean for your business?
The key to unlocking your business’ full potential lies in your ability to find a temporary manager that fully suits your business needs. But first, it would be best if you identified your company’s scope of work, objectives, and short-term goals.
Are You Looking for an Interim Manager?
There are many interim management services in Africa, but Flexi Personnel we are undoubtedly the industry pacesetter for interim management, headhunting services, and talent acquisition in Africa.
Flexi Personnel we are an exceptional human resources (HR) consultancy firm that provides outsourcing solutions for companies. We offer temporary managers and HR solutions designed to optimize people management strategies in East Africa and other African states.
With over 12 years of experience, we have worked with global brands. We would like to work with you on your next executive placement project.
