Executive Search Services: Why Interim Executives Are Right for Fast-Growing Companies

Interim executives — experienced C-suite leaders who take on short-term roles — traditionally are found in turnaround situations, coming in to save companies on the brink. Or they are brought in to keep a company moving forward while a new permanent hire is identified and onboarded. And interim executives are a key part of the post-acquisition strategy for private equity firms.

But there’s another leadership role that is tailor-made for an interim leader: Using their skills, experience and executive talent to guide fast-growing companies.

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CFO Resignations Hit Record Highs. Who Will Fill the Role When Your CFO Leaves?

During the first quarter of 2024, 82 Chief Financial Officers of the biggest public companies left their jobs, tying a record set in Q1 2021. The difference between then and now? Many of the CFOs who resigned in 2021 were retiring post-pandemic. Today, many of them are taking over as CEO, COO, or some other C-suite position.

According to data reported by the management consulting firm Russel Reynolds Associates, 271 CFOs left their post as finance chief in 2023. And Russell Reynolds says that 291 new CFOs were appointed in 2023 — nearly two-thirds of them first-time CFOs.

That adds up to a huge demand for new CFOs around the globe.

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Maximizing Operational Efficiency: Expert COOs Offer Tips for Improving Process and Productivity

Operational efficiency. It’s the holy grail of business success. Chief Operating Officers are charged with creating operations management systems that root out inefficient processes, lower operating expenses, reduce lead times, and increase profit margins.

Two expert COOs, Steve Raack and Mike Bartikoski, are interim executives with repeated successes at mega-million-dollar corporations. They shared what they learned along the way during a wide-ranging webinar and Q&A moderated by InterimExecs CEO Robert Jordan:

Here’s a recap:

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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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What Is an Interim Executive & Is It the Right Answer for Your Company?

What is an interim executive? It’s a highly knowledgeable and deeply experienced C-suite executive ready to step into a company in need of superior leadership.

As veterans of the interim business, we know that pairing the right interim executive with the right company is a delicate balance. After all, private equity funds or venture capital funds get one use of their dollar. Just one. Fund managers have a sacred charge of evaluating opportunities and investing the funds they’ve been entrusted with by their limited partners in hopes of maximum returns.

Likewise, we get one chance to make a great match. We must identify the interim executive with the right skills and experience and catch that executive during the brief period of time they are in between assignments assessing the next opportunity they want to take on.

So how do we best deploy genius leadership when we only get one chance every day to maximize everyone’s time, unique skillset, and results? We start by being selective about our clients.

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How Much Does An Interim Executive Cost?

Once owners, board members, and investors figure out exactly what an interim is and how an interim can help, the next question is: How much does an interim executive cost?

The short answer is: There is no off-the-shelf rate card for interim execs. Or more precisely, it doesn’t exist for the best interims in the world.

The first thing to understand about interim executive costs is to know that interim and permanent executive compensation is structured differently.

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Acting Manager vs. Interim Manager: What does Acting Mean in a Title?

Scanning someone’s career history, what does it mean when you see the word acting in a title?

The language around interim executives, executives who specialize in growing, transforming and turning around companies can be tricky as executives in the specialty don’t always identify themselves with the same language. But in some cases acting can be another indicator that you have found an interim.

Consider your audience: is the executive being presented to the board of directors, the company at large, or to the general public?

When it comes to public companies, the language is precise and if an executive has temporarily stepped in while a permanent search takes place, they will be described as interim or acting.

Things get confusing because public companies often appoint board members to this interim or acting role who serve as more of a babysitter or placeholder. Beware that this is not the same thing as a career interim who can be identified by their career history taking on high-impact engagement after engagement, helping cause companies to grow or turn around.

The far larger use of interim executives is in private companies worldwide, whether for-profit or nonprofit.

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What is an Interim Executive Director and Why Would You Want One?

The concept of an Interim Executive Director (ED) isn’t well-known among nonprofit organizations…yet. But, it’s becoming more mainstream and for many good business reasons.

On average, it takes a Board of Directors 9 months to recruit a new Executive Director. By the time they are on-boarded and contributing, a year may have passed since the departure of the prior nonprofit leader.

While nonprofit board members may step up to “mind the gap,” the truth is that stakeholders — employees, partners, and funders — can lose confidence in your organization during this leadership transition and key employees may leave.

Organizing payroll, developing a budget and/or managing human resources may keep the lights on, but without someone filling the executive director role during the transition period, your organization can be harmed and stymied while the Board is focused on the executive search for a new ED.

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Decoding Executive Titles: The Difference Between Interim, Project, Part-Time & Fractional Executives

Interim, acting, project, contract, fractional, part-time. The array of executive titles can make your head spin. But they all point to a specialized type of executive that companies call on when they are going through transformation.

What is an interim executive and how does that differ from a part-time executive, a project executive, or fractional executive?

Let’s break it down.

What is an Interim Executive?

Interim executives are highly-skilled, experienced C-level executives who typically contract to work for a company for a defined period, versus full-time executives who are hired by the company. The defined period can be as little as one month or last as long as two years.

There are highly qualified interim CEOs, interim CFOs, interim COOs, interim CIOs, interim CMOs and CSOs ready to step into a position.

Why would a company choose an interim executive over a full-time executive?

There are many possible reasons, but in all cases, the company needs some kind of change or upgrade.

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Executive-as-a-Service Can Solve Your Leadership Problems Like SaaS Solved Your Outdated Software Problems

For years, companies have used SaaS – Software-as-a-Service – to solve their technology problems. No more buying expensive software. No more hiring experienced managers to oversee its installation. No more worrying about updates. It’s all handled by the pros and the service lives in the cloud, ready for your people to access the minute the need arises.

Now, companies are discovering that EaaS – Executives-as-a-Service – can just as easily solve their c-level executive challenges.

What is Executive-as-a-Service?

Like SaaS, which is subscription-based on-demand access to digitals tools, EaaS is on-demand access to executive leadership, whether you need the skills of a chief financial officer, chief marketing officer, chief operating officer, chief technology officer, or any other type of “chief.”

EaaS allows you to pay only for the c-level expertise you need and only for as long as you need it. No pricey executive search fees. No hiring bonuses No long-term contracts. No human resources expenses. As a cost-effective alternative to onboarding any type of full-time chief executive, the EaaS model means that even small businesses can afford experienced, effective leadership.

Executive-as-a-Service leaders are interim or fractional executives with a wealth of experience managing companies through big challenges such as rapid growth or decline, mergers or acquisitions, new market demands, and dried up funding.

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