April 2, 2024

4 Common Reasons Why Some Businesses Fail While Others Fly High

4 Common Reasons Why Some Businesses Fail While Others Fly High

According to stats from the U.S. Bureau of Labor Statistics, only about one-quarter of business startups will still be operating after 15 years. But why do some businesses fail but others continue to grow and thrive?

Over the last 15+ years, our interim executives have been instrumental in leading business success at companies across countries and industries. Their experience shows that there are some common reasons why businesses fail:

Poor Management

It’s not what business owners want to hear, but poor management is one of the most common reasons for business failure. Cleve Adams, who built a SaaS cyber security software company from pre-revenue to a $1B IPO in three years, notes that the best business ideas won’t work unless you have a quality team laying the groundwork.

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March 25, 2024

FAQs: Is an Interim or Fractional CEO a Good Fit for My Company?

FAQs: Is an Interim or Fractional CEO a Good Fit for My Company?

When we started matching companies in need with skilled interim executives 15 years ago, the main question people asked was: Why would an executive choose this career path? There’s absolutely no job stability. 

Fast forward 15 years. Now we’re in a gig economy. The idea that you can get specialized expertise for what you need right now is expected and common.

Despite that, questions remain. In this interactive webinar, InterimExecs CEO Robert Jordan and President Olivia Wagner go through the most frequently asked questions they hear from company owners, directors, investors, and managers. Or, if you prefer, scroll down for a written summary.

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March 24, 2024

When the CEO Quits: How to Prepare and Respond

When the CEO Quits: How to Prepare and Respond

A record 1,914 CEOs left their jobs in 2023, a whopping 55 percent increase from the previous year, according to a report conducted by Challenger, Gray, and Christmas. That figure far surpasses the previous record of 1,640 CEO exits in 2019. And the trend isn’t abating. In January 2024, another 194 CEOs said goodbye, up 73 percent from the number who left their posts in January 2023.

That means companies across the US are scrambling to fill a leadership void when a CEO leaves or unexpectedly resigns. And if the trend continues, it means that every company should be preparing for the sudden need to find a new chief executive.

Here, we outline the most important steps a company should take when the CEO quits.

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March 16, 2024

The Case for Hiring Part-Time or Fractional Executives

The Case for Hiring Part-Time or Fractional Executives

Every business owner dreams of gaining major traction in the marketplace. Fast-track growth, however, often comes at a cost. Things get taped together. There’s no process to speak of. Systems? Ha. Things go missing, including clients and team members. Lack of resources means that even the crown jewel – the company’s ability to out-innovate — may be put on hold just to keep up.

When a company grows faster than the capabilities of the leadership team, the company can hit the wall.

One of the hottest trends in business today is bringing part-time or fractional executives to provide C-suite leadership, mentorship, and the operational upgrades needed to help a company break through the ceiling to growth.

In this webinar, InterimExecs CEO Robert Jordan takes a deep dive into the question of when choosing a part-time or fractional executive is the best choice for a company:

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February 27, 2024

The 6 Biggest Business Mistakes and How to Fix Them

The 6 Biggest Business Mistakes and How to Fix Them

Interim executives, by definition, come into difficult situations, assess them quickly, and create a plan for success. That means they have a front-row seat to the most common business mistakes companies make in the areas of leadership, operations, human capital, strategy, business finances, and change initiatives.

Focusing on these fundamental business needs is a good starting point for any struggling business.

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May 18, 2023

How To Do a Reverse Merger Into a Public Shell Company in 9 Not So Easy Steps. Or SPAC in 10!

How To Do a Reverse Merger Into a Public Shell Company in 9 Not So Easy Steps. Or SPAC in 10!

When it’s time for a private company to go public, or the board of directors determines that fundraising is needed on a large scale, an IPO is not the only option. There’s also a less well-known and, until recently, less-well-respected option: a reverse merger into a public shell. It is often called an Alternative Public Offering (APO).

This reverse takeover process, which can be faster and cheaper than a traditional Initial Public Offering, is growing in popularity.

Scott Jordan (no relation to InterimExecs’ CEO Robert Jordan), an investment banker and CFO who spent 30+ years working in biotech, engineered a reverse merger of a biopharma company in 2019. He says that while the coronavirus caused capital flow interruptions, investors in the private markets are still providing capital to companies with novel or scientifically validated biotechnology companies.

That means reverse mergers and PIPEs (Private Investment in a Public Entity) can still raise the money needed to complete their deals. He estimates that about 20 biotech firms debuted in the public markets last year as a result of reverse mergers and the number is on track to repeat in 2020, despite the virus.

But let’s back up and begin at the beginning.

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May 12, 2023

Is an Interim Executive the Right Fit for Your Company?

Is an Interim Executive the Right Fit for Your Company?

How do you know whether an interim executive will be the right fit for your company’s needs? Ultimately, that’s an individual decision that depends on your company. But generally, when we get a call from an executive, head of human resources, small business owner, or private equity investor, it’s because the organization is in motion. Leadership to drive growth, change, or turnaround is needed. And it’s needed fast.

If you are tasked with bringing in an interim executive, you’ve probably done your research and understand what a true interim executive is, believe you need more than a consultant, and have an idea of how an interim gets compensated.

But still – is contracting with an interim executive the right move for you and your company?

Let’s explore:

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May 5, 2023
Walter Simson

The Speech All New CEOs Should Give

Walter Simson | Interim CEO, Turnaround

I once took one of those business simulation courses. In it, we were given a computer terminal, an inbox, and a walkie-talkie. Our simulated company, Acme Widget, was said to be in trouble, and the point of the exercise was to evaluate our crisis management skills. There was a team of psychologists who were looking for leadership and other soft skills that might help us do well during a pressure-filled day.

The fellow who had been chosen as simulated CEO of our team was an up-and-coming executive in a Fortune 100 company. He was clearly acting as CEO in the exercise because his company had indicated he had so much potential.

The psychologists asked the “CEO” to give his motivational speech as the simulation began.

The CEO said, “Our job is to grow revenue faster than expense. Now get to work!”

That was it.

Would it surprise you to hear that Acme Widgets did not survive the simulated crisis? The emails flew, the disasters proliferated, and the team fell apart. I thought then, and I still believe, that the CEO’s speech could have made a big difference in how our team performed.

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March 28, 2023

Firing a CEO: The 4 Questions Every Board Should Ask When the CEO Needs to Go

Firing a CEO: The 4 Questions Every Board Should Ask When the CEO Needs to Go

So you’ve made the decision that a change needs to happen at the CEO level, and heaven knows it’s painful! You rely on the CEO as quarterback of the team. It feels like the chief executive is indispensable. But you signed up for service on the board of directors. You know that while corporate governance is a general and varied responsibility, the shareholders trust the board to choose the right CEO. It is, perhaps, the board’s most important decision.

Of course, you’ll go through a permanent search that will be thorough, even if internally focused.

But what happens if you need to fire the CEO and find a new leader right now? Having a CEO exit with no CEO succession plan in place can create a leadership vacuum. The resulting instability within the organization can cause major issues and harm company performance.

The need for a new Chief Executive Officer, the right Chief Executive Officer, is urgent.

After a CEO dismissal, the first thought for many public companies is to look around the boardroom table to see who’s brave enough to be named interim CEO for Sarbanes Oxley compliance.

But, where’s the guts in just appointing a placeholder to keep the seat warm?

The modern world now presents you with a far more robust choice: a true interim CEO. A veteran executive who’s been there, done that. Who is expert at jumping into companies going through points of change. And who is accountable for action and results.

When considering whether to bring on a placeholder versus a true interim CEO until you can hire and onboard a new permanent CEO, here are the questions to ask at your next board meeting.

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September 29, 2022

CEO Turnover: Why the Bosses Are Leaving & Who’s Replacing Them

CEO Turnover: Why the Bosses Are Leaving & Who’s Replacing Them

Millennials and Gen Z employees might get all the press for their “Great Resignation” but they aren’t the only ones who are leaving their jobs in droves. CEOs are too. The Great CEO Turnover, which peaked in 2021 and early 2022, has leveled off a bit. But it certainly doesn’t mean that your CEO is planning to stick around for the long haul.

Outplacement firm Challenger, Gray & Christmas compiles a monthly report on the CEO turnover rate. The July 2022 report shows that CEO changes at U.S. companies fell to 58 in July, down 45% from the 106 CEO exits recorded in June. It was the lowest monthly total since the early pandemic departures of April 2020.

However, departing CEOs are hardly a thing of the past.

When Deloitte and independent research firm Workplace Intelligence surveyed 2,100 employees and C-level executives in the United States, United Kingdom, Canada, and Australia, they found that an eye-popping 70% of top management are seriously considering quitting for a job that better supports their well-being. And 81% of the top execs say that improving their well-being is more important than advancing their career.

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