Making the leap from full-time finance professional to interim Chief Financial Officer isn’t just a career pivot—it’s a strategic reinvention. Whether you’re eyeing more flexibility, craving fresh challenges, or looking to leverage your financial expertise across multiple organizations, the interim CFO path offers high-reward opportunities. Demand for interim and fractional CFOs is soaring driven by market disruptions, private equity needs, and leadership gaps in existing companies.
But what does it really take to thrive in an interim role? InterimExecs CEO Robert Jordan spoke with three veteran interim CFOs who’ve successfully made the transition. Their insights reveal the mindset shifts, skills, and realities every seasoned financial management leader should know before stepping into the role.
One of the hottest trends in the hot market for interim executives is structuring interim engagements as a “statement of work” contract. Here, we take a deep dive into this trend and look at when it makes the most sense for a company to negotiate a statement of work contract, when it makes the most sense for an interim, and when it simply doesn’t make sense for either.
Defining the SOW in the Interim Context
But first, let’s define terms. An SOW is a legally binding document that clearly outlines the scope of work, deliverables, timelines, and payment terms for a specific project or set of tasks. SOW contracts are commonly used to set clear expectations for project-based assignments for freelance workers in the gig economy.
While interim executives are gig workers, they are not your average freelancer. Rather, they are highly skilled, success-driven leaders with a proven track record of success across the C-suite.
Most often, interim executives negotiate contracts that lay out the terms of the engagement, the expected outcomes, and the pricing. How does that differ from an SOW contract? It allows the flexibility that’s needed in an interim executive assignment. By definition, RED Team interim executives take on the toughest challenges an organization faces — turnarounds, exit strategies, IPOs, market disruption. They deal with the unpredictable and unforeseen. Then that happens, an SOW focused on project scope simply won’t cut it.
When is an SOW Contract the Ideal Fit for an Organization?
In these unpredictable times, it’s comforting to have a budget item you can trust will not change. A statement of work contract that lays out the project deliverables and sets invoicing for the determined amount upon project completion is just such a concrete budget item.
Here re 5 times when an SOW contract can work best for an organization:
When the Projects and Deliverables Are Clearly Defined: This approach works best as a performance-based SOW. Think of scenarios like leading a critical system implementation, managing a product launch, or driving a specific turnaround initiative. The SOW defines exactly what needs to be accomplished and the metrics of a successful project.
When the Timeline is Compressedl: Interim roles, by definition, are temporary. However, some assignments have a more clearly defined endpoint tied to the completion of a specific project. An SOW aligns perfectly with these engagements, outlining the project duration and milestones that trigger payment at the conclusion of the contract. This provides clarity for both the executive and the hiring organization.
When the Organization Needs Specific Expertise for a Targeted Outcome: When a company needs a leader with a specific skillset to address a specific task, an SOW allows the organization to precisely tailor the contract to fit those needs.
When Measurable Progress is Critical: By outlining specific deliverables and timelines, an SOW is particularly valuable for organizations that need to demonstrate a clear return on investment for the interim hire.
When the Organization is Comfortable with Project Management: Companies that already use project management methodologies and are accustomed to working with SOWs will find this contractual approach a natural fit for interim executive engagements. It integrates seamlessly with their existing processes and provides a familiar framework for managing the assignment.
When an SOW Agreement Works Best for Interims
Sometimes, open-ended interim contracts are the right approach. They allow the flexibility to expand the scope of work and stay on until the job is finished to everyone’s satisfaction.
These are some situations when a statement of work approach can work better for interims:
When Internal Politics Threaten to Derail the Project: Because the focus of an SOW is on deliverables, it can help insulate an interim executive from organizational politics that can bog down permanent hires and interims with less well-defined assignments. Their tenure is tied to the project, allowing them to remain focused on the task at hand.
When the Interim is Adept at Solving that Particular Problem: An interim executive who has been there and done that — many times over — will know exactly what’s required to achieve the desired project objectives. In that case, the interim has a solid idea of just how much time the engagement will require and can negotiate an SOW agreement accordingly..
To Avoid Scope Creep: Because SOW documents provide a well-defined roadmap of key elements, such as due dates and the goals of the project, the chances of scope creep are much less. The interim executive can more easily stay focused on the purpose of the project and avoid being pulled into unrelated tasks. Plus, knowing definitively when one assignment will end makes it easier to plan for the next engagement.
The Ability to Command Higher Project Fees: Given the focused nature of the work and the expectation of delivering specific, high-impact results within a defined timeframe, interim executives working under an SOW can often command higher day rates or project fees compared to time-and-materials-based agreements. The company is paying for a specific outcome, and the executive’s specialized skills to achieve that outcome justify a premium.
A Faster Way to Build a Portfolio of Success: For executives just starting an interim career, each completed SOW acts as a case study of project success that can be leveraged for future engagements.
When a Traditional Interim Engagement Contract is the Right Approach
Sometimes, a statement of work document doesn’t cut it. That’s when a traditional interim contract is the right answer.
When the Project Timeline and Deliverables are Less Concrete: When the interim executive assignment is open-ended with a broad-based mandate that makes it difficult to define specific deliverables upfront.
When the Team Needs a Strong Leader: Sometimes, an SOW-based contract can make the interim feel more like a temporary employee than the team leader.
When the Engagement Focuses on Providing Ongoing Strategic Guidance: This type of work is not easily quantifiable.
Crafting an Effective SOW for Interim Executives
When opting for an SOW, it’s crucial to ensure the document is comprehensive and clearly articulates:
Specific Objectives and Goals: This needs to lay out all of the project requirements, deliverables, and metrics for measuring success, along with any special requirements.
Clear Timelines and Milestones: What is the project schedule, and when are specific deliverables due?
Reporting Structure and Communication Plan: Who will the interim executive report to, who is on the project team, and how will progress be communicated? What, exactly, is the work breakdown structure?
Payment Terms and Schedule: How will the interim executive be compensated, and when will payments be made?
Acceptance Criteria: How will the deliverables be deemed complete and satisfactory?
Termination Clauses: What are the conditions for ending the agreement?
Whatever contracting option is best for your organization, the most important consideration in hiring an interim executive is to find the right interim for your needs. Reach out to us for a confidential chat about how a member of the InterimExecs RED Team can solve your organization’s problems.
So you’ve decided to bring in an interim executive. Perhaps you need to temporarily fill a leadership role while you conduct a thorough search for a new permanent hire. Or maybe you need an experienced leader to spearhead a new initiative or helm the launch of a new product. Or maybe your company is in crisis and you need a turnaround expert to right the ship.
Whatever the reason you have chosen to bring on an interim executive, you are about to work with someone who works differently. That’s because interims are wired for action.
Here are 11 things to expect from an interim executive during their first 30 days on the job.
Hiring a fractional CFO is one of the smartest moves a growing company can make — especially when full-time overhead doesn’t yet make sense.
But what exactly does a fractional CFO do?
Whether you’re a founder, CEO, or investors, board member exploring financial leadership options, here’s a closer look at how part-time CFOs drive financial clarity, control, and strategy across all kinds of companies.
When a public company’s Chief Financial Officer departs, it’s more than just a vacancy; it’s a critical moment that demands swift and decisive action. To get the inside scoop on navigating this complex situation, InterimExecs CEO Robert Jordan sat down with two seasoned finance veterans, Mitch Cohen and Lawrence Firestone. Both have extensive experience as permanent and interim CFOs for public companies.
Their insights offer a candid look at the challenges, the risks, and the imperative for immediate action when a public company CFO leaves.
InterimExecs CEO Robert Jordan sat down with two seasoned finance veterans, Mitch Cohen and Lawrence Firestone to talk about the critical moment public companies face when the Chief Financial Officer job is vacant and why an interim CFO is the best way to fill the role until a new permanent hire can be brought on board.
Both Cohen and Firestone have extensive experience as permanent and interim CFOs for public companies.
This is an edited transcript of their conversation:
CFOs at private companies may come and go with little fanfare or long-term damage to the organization. But the sudden departure of a chief financial officer from a publicly traded company can send a tidal wave of worry through investors, employees, and stakeholders alike.
The CFO is the financial compass, the strategic partner, the place where the buck stops when it comes to fiscal responsibility and reporting.
And when the CFO role at a public company is vacant, the urgency to fill the void is paramount. “Later” simply isn’t an option. Let’s delve into why a public company needs a strong CFO, and needs them now. And then we’ll explore why many companies turn to an experienced interim CFO to bridge the gap.
As the OG interim executive search firm — we have been doing this work since 2007 — we’ve seen the game change a lot. Our estimate is the number of executives seeking our interim and fractiona work has expanded hundredfold, but yet the vast majority don’t really know what it means to be an interim at it’s core. No disrespect here…it just comes with learning something new.
One of the most challenging aspects of this work is that even if you are successful, it’s lonely at the top. And many interims are solo operators. We’ve invested many years into building the RED Team of top interims from around the world, but there is another 99% of executives out there trying their hand at this work and we want to see them succeed.
So we’ve launched a new series on Instagram (@InterimExecs) digging into the ins and outs of how to succeed in the interim and fractional space, how to up your game as a leader, and what we are seeing in this growing industry.
In talking to thousands of you – interims, fractionals, CEOs, boards, investors – we’ve learned a few things that will resonate:
What impact could a potential increased customs tariff of 25% have on Mexico, assuming all exports from Mexico into the U.S. will be affected similarly?
Let’s do some simple math. If the cost of goods sold is about 50% (+/- 10%), multiply that by 1.25 to reflect the increased cost under a 25% tariff. It could make these goods 10-15% more expensive for U.S. consumers.
That has the potential to result in significant inflation. Not good for U.S. economic growth since the price increases will not be considered GDP growth. What happens then? The U.S. administration, facing backlash over double-digit inflation rates, will call for the Federal Reserve to cut interest rates.
How will the markets for stock and crypto react? If we take goods that are pure imports from Mexico (no final manufacturing or assembly in Mexico), the price hike would be closer to 25%. I do not think significant price reductions are possible to reduce this burden unless manufacturers significantly reduce quality – a concern for consumers and a time lag on the entire market.
The consequences of such a burden would be evident immediately. Case in point: Consider recent events, when the US administration announced tariffs on Mexico and Canada and then postponed them the next day.
Caller: “I’m a lawyer in California with a client in XW (redacting state name so goons don’t come after us). We need a manager for an LLC. Do you have a COO who could sign a member LLC agreement?
InterimExecs: “You mean an interim COO? Do you have existing operations?”
Caller: “No, it’s a startup.”
InterimExecs: “Ok, well, what kind of operations are planned, how many employees, what kind of funding?”
Caller: “We need someone to sign because the state requires a member signature and they’d have to sign in all the places. In the construction industry.”
InterimExecs: “But this is an operational role?”
Caller: “No, The CEO does not want to disclose his identity.”
First-year Change Agent members have access to the Interim Institute’s 4 hour audio program on the Fundamentals of Interim Management, and a one-hour strategy session to help jumpstart their interim career.
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