You’re on a public company board and the phone rings at midnight and it’s not good news: Your CEO or CFO has passed away. The next morning, the board convenes in emergency session. There’s only one subject beyond condolences for the tragic passing: Who is going to step into the interim CEO or CFO role?
Will you choose a placeholder from among your board, or will you choose to do something more proactive?
Let’s dive into the options.
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.
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.
An experienced interim executive is the right leader for companies facing big points of change or growth. Interim and fractional executives often step in to address growing pains many organizations feel when they lack the systems and processes to scale. On the other hand, interim executives jump in as a key part of the diligence or post-acquisition integration strategy for companies and private equity firms leveraging an M&A strategy to expand.
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:
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.
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.
As businesses grow and scale, they often face the challenge of keeping up with operational demands while maintaining strategic leadership. This is where fractional executives come in. Offering high-level expertise on a part-time or temporary basis, fractional executives provide companies with the experienced leadership they need to drive growth, streamline operations, and manage change—without the commitment or expense of full-time hires. Part-time or fractional executives 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.
As the Greek philosopher Heraclitus is famously quoted as saying: “Change is the only constant in life.” And this year will bring a torrent of change!
As we have deployed InterimExecs RED Team members and talked with interim executives, company owners, and private equity investors, we have seen five common themes emerge:
Private equity firms have a simple recipe for making money: They identify companies they believe are undervalued, improve those companies, then sell them for far more than they paid to buy them in the first place.
Knowing how private equity firms work can serve as a roadmap for any company looking to improve operations and maximize value.
Start with these 3 things PE firms do following an acquisition in the lower middle market ($2-$15 million in EBITDA) to improve your own bottom line, whether you plan to continue operating your business or want to ready the company for a future PE investment.
In years of pairing executives with companies in need, we have learned that there are times when full-time is too much time. That’s when companies benefit from choosing a fractional executive. It’s a way to get top-notch skills for a fraction of the time at a fraction of the cost of a full-time hire.
On a webinar, InterimExecs CEO Robert Jordan laid out the 5 situations when hiring executives on a fractional basis makes the most sense for companies:
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.
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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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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