When To Use An Interim Manager, And Why?

Hiring an interim manager – a practise that is well established in both the United States and UK markets and over the years has gained mainstream consideration here in Australia. So, what does it involve, and when are the optimal times for companies to consider this new-age solution?     

In simple terms, the concept of hiring interim management is where middle or senior level management roles are filled on a temporary basis via external resources. These resources are typically highly experienced business leaders, often with a specific skillset that is closely aligned to the particular business challenge that has arisen. Interim Managers can be used to quickly fill gaps resulting from sudden exits or need-based projects.

So, isn’t that just a contractor? Or a consultant? It’s important to differentiate between these terms, as true Interim Managers carry a strong implementation orientation that sets them apart from consultants who are primarily there to advise. In addition, they are not a traditional contractor either, given their rich background and depth of experience. In essence, given Interim Managers effectively take temporary ownership of an operational division or program of work until a longer-term solution can be found, they deserve a category of their own.

Now that we’ve established the definition of the concept, let’s look at when companies would be best utilising such a resource, and why that may reap benefits in both the short and long term. Typically, an organisation will engage an Interim Manager for one of the following five reasons:

• Gap Management – usually in the case of an exit of a previous leader
• A specific program of work that requires specialist skills not found internally
• Turnaround / Crisis Management during transformation
• Rapid growth such as a start-up scaling up
• Merger / Acquisition-related requirements

Although all the above scenarios differ slightly from each other, on average the typical Interim Management role will be between three to nine months in length – long enough to make a difference but short enough to allow a smooth transition to a longer-term option if required.  As a result, the need for such a resource is often urgent, and therefore having a pool of external resources who can be available at short notice (or an external supplier who has access to such talent pools) is critical to the success of interim assignments.