We found great info on interim managers. Here’s what you should know.

A Business Problem

Numerous businesses have faced unique difficulties in recent years. Remember the “simpler” times of lockdowns or business interruptions and the associated liquidity risks brought on by COVID-19? 

For 2023, according to the National Association of Corporate Directors (NACD) Q4 2022 survey of over 1300 C-level executives, challenges are much more diverse. Here are just a few:

• Succession planning

• Retaining talent

• Finding talent

• Mitigating rising labor costs

• Handling inflationary pressures

• Adapting to hybrid work environments

• Managing supply chain breakdowns

• Addressing social media attacks

• Building increasing resistance to cyber threats

Respondents indicated that 2023 is riskier than anticipated for 2022 or 2021, which was at the height of the pandemic.

The Director's concluding worry is whether their businesses can be agile enough to change, adapt, and manage various crises simultaneously. 

The Solution

Interim talent, especially experienced senior managerial talent, is one of the best options for managing these risks. And the "Interim Management Report 2023," published by EO Executives, provides a look into interim management to address such business risks.

The report provides an in-depth review of the following: 

• how corporations use interim managers to handle challenges (assignment length, operational area, daily rate, etc.); 

• who acts as an interim manager (professional experience, personality traits, etc.) to support corporations; and 

• what interim managers do to help corporations, particularly in a crisis like our current risk environment.

Why Bring In an Interim Manager?

Interim managers frequently address a gap in current leadership to address one or more challenges. The top uses of interim managers include: 

• change management to lead significant transformation projects (33%), 

• temporarily bridging capability and competency gaps (13%), and 

• crisis management to handle pressing issues (11%). 

Because most senior managers have over ten years of experience and possess credentials or certifications of expertise, interim managers drive solutions out of conviction and experience. They're not "armchair quarterbacks."  

Who is an Interim Manager?

What qualities did corporations regard as most important? The most highly rated quality was the ability to emphasize practical and results-oriented focus (35%), followed by specific skills and experience (26%). The third priority was remaining independent and impartial (9%). To summarize, the best senior interim talent has a bias for action and the experience to tackle problems quickly without the burden of politics. 

From the interim manager's point of view, the most significant challenges to overcome are:

• addressing difficulties in the supply chain,

• digital transformation,

• managing remotely, and

• financial issues.

Who Uses Interim Managers?

The Interim Management Report 2023 states that private corporations are responsible for 85% of interim appointments, with nearly half (49%) coming from enterprises with more than 250 employees, followed by enterprises with fewer than 250 (36%). The public sector and charities were least likely to consider such help.

How Long is “Interim?”

According to most responses, interim managers' assignments last between three and twelve months (63%). Interestingly, there was an equal distribution between these quarters. That is, three-month assignments comprised 20% of the total duration, six-month assignments were 20%, and 12-month assignments comprised another 23%. From the interim managers' point of view, the average number of days worked was 185.

How Much Do They Cost?

The fees for such help were close to $1000 per day, up 7% from 2021. This increase indicates increased demand for talent as enterprises find more budget, compete for talent, and find it necessary to drive change in their organizations to account for the risks mentioned above.

Last Thoughts

To conclude, the pandemic was like a giant bomb on businesses. The explosion radiated lockdowns, decreased demand, and a liquidity crisis. Many companies did not survive. Those who did are now facing the fallout. That is, rather than just one colossal threat, there are many. Too many create a series of crises that merit changes in how the business operates. However, change is hard. It's political. It's personal. It requires objectivity. It also requires talent, experience, and the personality to address them. Interim managers can be a path forward, and data shows that such talent is in demand.