Skip to main content

WINNING IN THE INTERIM

 


Picture this scenario if you can: you are running a relatively young company in a fiercely competitive marketplace where the norm is feverish change. Suddenly, in the midst of a firestorm, your CEO leaves you or even worse you are having to ask him to go. Where does that leave your organization? To even mature organizations, such sudden exits can be deeply unsettling. For smaller businesses it may be a death blow. 

Take Twitter for instance which, even before Elon Musk, has not been a stranger to leadership upheavals. When CEO Dick Colosto left the engine room of the microblogging giant on a short 2-week notice, he left a potentially disruptive vacuum at the top. Only, it’s founder Jack Dorsey by taking over as “interim CEO” ensured that Twitter absorbed the shock without so much as a twitch of a muscle.  

From behemoths like Twitter to small startups all across the world, Interim CEOs or CXO’s have helped steer businesses through the rough waters of turbulent leadership change. According to a Harvard Business Review report 17 % of successions at publicly traded firms between 1996 and 1998 included the appointment of an interim CEO for at least 45 days. “They don’t stay long. The vast majority of interim CEOs stay for at least a quarter (92%), but just a third of them stay on for more than a year.”

 However, for as long as they stay, Interim CEOs do play a critical role, ensuring unruffled continuity in the face of change, which in many cases may be in fact crucial for a company’s future. In essence, the concept of Interim CEOs / Interim CXO’s has gained ground not just because it helps companies weather turbulence. The concept delivers several clear advantages, says the HBR report including allowing a company take an objective and unbiased look at hiring a new CEO. Says the report: “The appointment of an Interim CEO / CXO, makes it easier to search for a new chief executive unencumbered by the interests and biases of the old CEO / CXO. Sitting executives can exert influence on the search for a replacement, often in order to preserve their own legacy.”

 Three former interim CEOs interviewed by HBR researchers felt that instead of attempting big long-term strategic manoeuvres, interim CEOs remain focused on “short-term, tactical crisis management.” And there lies their unique value, particularly for companies that may need immediate trauma care more than long term therapy. Besides this, Interim CEOs offer organizations three major advantages:

BIGGER IMPACT 

Since their appointment by its very definition is for short terms, interims are very delivery-outcome focused. They tend to be not only self-driven but also self sufficient, or in other words, as described by the authors of a paper published by Senior Management Worldwide, they are “their own business and marketing departments.” Clearly, to stay robust and resilient nothing rates higher for a business than achieving its goals efficiently. “The best way to market yourself is by demonstrating successful outcomes. And Interim CEOs, because of the very nature of their briefs, tend to do this really well.”

 In a manner of speaking, interims assume charge with a clear-cut mandate, which, to put it simply, is to make a visible difference in a short amount of time, unlike a permanent business executive for whom speed may not be a primary priority. Therefore, “they tend to  deliver more goals than permanent executives or employees would do in the same duration.”

MEASURABLE RETURNS 

Every minute an interim executive spends  in an organization is measured by returns, or in other words results that can be expressed in cold numbers. It’s the very nature of the beast: a calling that cuts no slack and leaves no room for indolence. Because of this, interims are able “to deliver measurable results that give visible proof of their value.”

INTERIM EQUAL SAVINGS

Quite often interim managers are more experienced in delivering at a higher level than permanent executives. This allows them to spot issues objectively and fill in the gaps that leak both time, money and resources. They add value to organizations by making it efficient, saving companies big hoards of cash.

Says an HBR report: “Interim executives work extra hard and put in extra hours. It’s not unusual for them to be the last ones leaving the office or staying in late to make sure everything is ready for the next day.” For many companies, such laser focus on the here and now may make the crucial difference between riding or drowning in the tempest of change.


Labels:

Comments

Post a Comment

Popular posts from this blog

Why is digital marketing important for Medium and Small Enterprises ?

One of the key differentiators of the success of a business is the number of customers that it can reach as more customers mean more sales volume.   One of the technological innovations that helps a business in this direction is digital marketing . It is indeed a boon for MSMEs as it lets you reach your target audience with ease, simplicity and at very low cost. Cost is always a concern for most MSMEs. Why would anyone not want to use the power of the internet with over 3 billion users to further the cause of their own business? But it is a fact that deploying digital marketing for their own benefit seems a herculean task for many MSMEs as they feel that they are not adept nor attuned for the digital world, they also tend to think that they will not reach their target market or they simply do not have adequate information, lack sufficient human resource and tools to manage the digital world. Here is where organisations like Outsourced CMO can help these MSMEs bridge ...
134 comments
Read more

SHARING IS CARING !..... EVEN FOR STARTUPS !

The Shared Economy Concept, at its core, is based on the most efficient use of money and resources. In the era of start-ups, gathering the resources is the most challenging aspect of any start-up. The broader vision of the founders of a start-up need to be simplified into micro plans so as to achieve the objective initially set. These micro plans focus on the resource requirements of the start –up. By resource requirement we mean all the tangible and intangible forces which are needed to build up the venture. It includes manpower requirements, space requirements and funding to name a few. Since the funds available to a start-up are usually limited, manpower planning plays a crucial role. An essential ingredient to effective leadership is to manage the resources efficiently. As the funds are limited, resource sharing can play an important role in the success of the venture. The technological advancement across all industries today makes resource sharing a very convenient and appropri...
1 comment
Read more

Project-Based Leadership: How Fractional CXOs Drive Success in Targeted Initiatives

  In today’s business world, companies increasingly turn to fractional CXOs to manage short-term, high-impact projects. These part-time executives provide specialized leadership, taking on critical roles that drive business success without the full-time commitment. Whether it's scaling operations, launching products, or optimizing internal processes, fractional CXOs have become the go-to solution for project-based leadership. Let's explore the various ways in which Flexi-CXOs stand out for businesses: Role of Fractional CXOs in Short-Term Projects Fractional CXOs are experts in their respective fields who come in for specific projects and bring years of experience. They work as interim leaders, overseeing numerous areas, including finance, operations, technology, and marketing. Sometimes, businesses need an interim leader to step in for a specific project and do not require permanent leadership. These executives thrive in fast-changing environments, quickly assessing cha...
Post a Comment
Read more