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Interim management is the temporary provision of management resources and skills. Interim management can be seen as the short-term assignment of a proven heavyweight interim executive
manager Management (or managing) is the administration of an organization, whether it is a business, a nonprofit organization, or a government body. It is the art and science of managing resources of the business. Management includes the activities ...
to manage a period of transition, crisis or
change Change or Changing may refer to: Alteration * Impermanence, a difference in a state of affairs at different points in time * Menopause, also referred to as "the change", the permanent cessation of the menstrual period * Metamorphosis, or change, ...
within an organization. In this situation, a permanent role may be unnecessary or impossible to find on short notice. Additionally, there may be nobody internally who is suitable for, or available to take up, the position in question.


History

Historical antecedents come from ancient Roman times, with ancient Roman
publicans In antiquity, publicans (Greek τελώνης ''telōnēs'' (singular); Latin ''publicanus'' (singular); ''publicani'' (plural)) were public contractors, in whose official capacity they often supplied the Roman legions and military, managed the ...
(Latin: ', plural: ') or "Roman contractors" being engaged to erect or maintain public buildings, supply armies overseas, or collect certain taxes (such as tithes and customs). This system for letting contracts was well established by the 3rd century BC. The modern practice of interim management started in the mid to late-1970s, when permanent employees in
The Netherlands ) , anthem = ( en, "William of Nassau") , image_map = , map_caption = , subdivision_type = Sovereign state , subdivision_name = Kingdom of the Netherlands , established_title = Before independence , established_date = Spanish Netherl ...
were protected by long notice periods and companies faced large costs for terminating employees. Hiring temporary managers seemed like an ideal solution. Interim Management was introduced for the first time in Europe by the Dutch consulting fir
Boer and Croon
as an operational completion and implementation of the recommendations contained in the strategy projects managed by the firm. Facing extreme rigidity in hiring and firing managers and the need for extreme flexibility and speed, the solution of being able to dispose top management skills on short notice and for limited periods of time seemed to be the ideal one. As a consequence of the success of this service in the Netherlands, Boer and Croon signed, in February 1987, a Joint Venture with the Executive Search firm
Egon Zehnder International Egon Zehnder is a global management consulting and executive search firm. Egon Zehnder is the world's largest privately held executive search firm and the third largest executive search and talent strategy firm globallywith an annual revenue of C ...
and with the Private Equity fund Euroventures, to start a new business initiativ
"EIM - Executive Interim Management"
which its scope was to spread the Interim Management service around the world thanks to the network international of Egon Zehnder offices. Since the 1980s, the concept and use of interim managers as a resourcing tool for organisations has received attention from academic researchers and policy makers as well as practitioners. In 1984, Atkinson postulated the emergence of an organisation design comprising both a core and a peripheral workforce, using differing forms of contractual relationship (flexibility) on an international basis. Examples of further study include Kalleberg (2000), looking at temporary, contract and part-time work; and Bosch (2004) looking at Western European "employment" relationships. A good example of interim management benefitting from a geo-political change was its use by the German privatization agency after reunification of East and West, post 1989. The demand was created for interim managers in
Eastern Germany The new states of Germany () are the five re-established states of the former German Democratic Republic (GDR) that unified with the Federal Republic of Germany (FRG) with its 10 states upon German reunification on 3 October 1990. The new st ...
to apply the required management and leadership competencies necessary to re-structure the formerly state owned companies. Demand continued to grow in the 1990s in Germany as the economy struggled to deal with unification, recession and resultant ambitious economic forecasts for the 'new' economy. One prominent example, mentioned by Bruns (2006) was the appointment of Helmut Sihler as interim CEO of German Telekom AG in 2001.


Value proposition

There are several factors that make the interim management offering increasingly popular and cost-effective to client organisations. These factors are characterised as a 'value proposition' that interim managers offer to their clients. Although there is some variation at the margins of interim management (with temporary workers, freelancers, contractors and consultants) the following factors are typical of the interim management value proposition:. # Interim managers can be in place within days as opposed to weeks or months, which is essential when time constraints are paramount. Being practiced in engaging promptly with the situation, they become effective quickly upon joining a client organisation. Because of their experience and expertise, interim managers also conduct and complete assignments effectively and with due speed. # Interim managers typically operate at a senior level in the client organisation, often being sensibly over-qualified for the roles they take on. They often bring skills and knowledge not otherwise in place, to address a specific skills gap or problem. Their experience and expertise enables them to be productive and make a noticeable impact from the outset, maximising the likelihood of success. # Unencumbered by company politics or culture, interim managers provide a fresh perspective and are able to concentrate on what is best for the business. Being independent operators, they are able to contribute honestly without constituting a threat to the incumbent management team. Not being part of a larger business they are not pressured to unnecessarily extend their assignment. # Rather than taking on a purely advisory role, interim managers are managers responsible managing a particular business or project. They are accountable for results. # Operating at or near board-level gives interim managers the authority and credibility to effect significant change or transition within a company. Unlike a 'temp', they are not just there to 'hold the fort'. They actively add value to the client organisation as a result of their expertise and approach, even when the work and the decisions to be made are difficult. # Interim managers add value by using their skills and expertise to help deliver an outcome, solution, service or mitigate risk that provides a meaningful 'return on investment' to a client. Interim managers are paid on the understanding of goals and objectives being performed and delivered, and not simply on the basis of attendance. # Interim managers maintain high professional standards because their future work relies upon referrals and a successful track record. They therefore have a stake in the success of the assignments that they undertake. This contrasts favourably with other 'temporary workers' who may also be seeking '
permanent employment Permanent employees work for an employer and are paid directly by that employer. Permanent employees do not have a predetermined end date to employment. In addition to their wages, they often receive benefits like subsidized health care, paid vac ...
' or simply motivated by a day rate or extending their tenure. # Interim managers are available to work on a fractional or part-time basis. Especially in smaller organizations their skills may only be required for one or two days per week. The Fractional Executive saves companies money as they only pay for what they need.


Assignment lifecycle

Interim assignments vary in scope and requirements, encompassing change management, 'gap' assignments, project management and turnaround management. The following stages of the 'assignment lifecycle' are typical of how interim managers enter into an assignment, reach and carry out the actual implementation, and finally exit the assignment. The assignment should include a plan for making resources available to meet the longer-term goals. The early stages have much in common with
consultancy A consultant (from la, consultare "to deliberate") is a professional (also known as ''expert'', ''specialist'', see variations of meaning below) who provides advice and other purposeful activities in an area of specialization. Consulting servic ...
, as do later stages with
project management Project management is the process of leading the work of a team to achieve all project goals within the given constraints. This information is usually described in project documentation, created at the beginning of the development process. T ...
, but the accountability and responsibility that interim managers have for successful analysis and delivery of a fitting solution, is what makes these stages uniquely typical of the interim management approach. # Entry. The prospective client and Interim make initial contact and explore the requirement sufficiently for the client to be able to decide to engage the interim manager (or not) to address the situation. This is likely to involve a 'preliminary' assessment of what the client thinks they want and the scope of the interim manager's contribution. It is also likely to involve a due diligence and interview process to make sure the interim manager is the right fit for the business. Typically the entry stage takes place over one or more initial meetings and results in the interim manager's provisional engagement. # Diagnosis. The interim manager researches the current situation in order to understand it, how it came about, what are the requirements of the varying stakeholders. At this stage a more detailed understanding of 'what the situation is' is formed as well as approaches to address it. Differing issues or problems may come to light at this stage than initially highlighted by the client. On a 'gap' assignment this diagnosis may run concurrently with the handling of immediate issues. Typically the diagnosis stage takes a few days. # Proposal. The interim manager presents a more detailed proposal that serves as an interim assignment objectives and plan. If this differs significantly from the preliminary plans determined at 'entry', the solution may involve different requirements from the interim manager or possibly the ending of the assignment. It is common that this 'proposal' may challenge the client's understanding of the situation, on the basis of the interim manager's expertise. The interim manager takes the responsibility to propose a solution most likely to be effective, not automatically the one originally requested. In the case of a 'gap assignment' such a proposal may simply outline how the interim manager is a 'safe pair of hands'. # Implementation. The interim manager manages the intervention, project, or solution, tracking progress and conducts periodic feedback reviews with the client. During this stage, interim managers particularly exemplify their expertise, accountability and effectiveness. Depending on the assignment, they get as close to the situation as is necessary, whilst remaining an independent practitioner. They may manage teams and projects, deal with crises and changes, or simply 'holding the fort'. # Exit. The interim manager, approaching project end, ensures that objectives have been met, that the client is satisfied. This stage may involve 'knowledge handover and training', determining and sourcing 'business as usual' successors, and 'sharing lessons learnt' in the process. The interim manager is focused on the success of the assignment and not simply the length of his/her own tenure, which means that this stage can be carried our professionally and objectively. Often this is the end of the interim manager/client relationship. Sometimes interim managers may continue to give occasional 'ad hoc' consultancy. Sometimes the interim manager is re-engaged on a follow-on or further
assignment Assignment, assign or The Assignment may refer to: * Homework * Sex assignment * The process of sending National Basketball Association players to its development league; see Computing * Assignment (computer science), a type of modification to ...
, starting the 'lifecycle' again.


Uses

There are a number of different business situations that could result in the need for an interim manager. Typically these could be situations such as
crisis management Crisis management is the process by which an organization deals with a disruptive and unexpected event that threatens to harm the organization or its stakeholders. The study of crisis management originated with large-scale industrial and envir ...
, sudden departure, illness, death, change management,
managing change Change management (sometimes abbreviated as CM) is a collective term for all approaches to prepare, support, and help individuals, teams, and organizations in making organizational change. It includes methods that redirect or redefine the use of ...
or transition, start-up and
scale-up SCALE-UP, Student-Centered Active Learning Environment with Upside-Down Pedagogies, is a classroom specifically created to facilitate active, collaborative learning in a classroom. The spaces are carefully designed to facilitate interactions betwe ...
businesses, sabbaticals, MBOs and
IPO An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...
s,
mergers and acquisitions Mergers and acquisitions (M&A) are business transactions in which the ownership of companies, other business organizations, or their operating units are transferred to or consolidated with another company or business organization. As an aspect ...
, and
project management Project management is the process of leading the work of a team to achieve all project goals within the given constraints. This information is usually described in project documentation, created at the beginning of the development process. T ...
. The functions of an interim manager are almost endless, thus the scope of an interim manager's skill set is quite unique. The interim management concept has taken root in the UK, Germany, and Belgium, and is spreading elsewhere, most notably in Australia, the US, France, and Ireland. In Spain recruitment increased by 68% in 2011, according to Michael Page Interim management, and since 2013 there is a first association called "Association Interim Management Spain". In Nigeria, the Institute Of Corporate and Interim Management has been approved by The Federal Ministry Of Education and established under Federal Government Decree No. 1 of 1990, to promote Corporate and Interim Management practice in Africa.José Luis Portela López (04/02/2014
Interim Management o el enfoque empresarial de la dirección de proyectos
EL PAIS.


Network

INIMA - The International Network of Interim Manager Associations
started in December 2020. All the leading European Interim Manager associations are partners of INIMA. and they represent nine countries and over 2500 practising Interim Managers, many of whom are operating Internationally. INIMA is different from the existing international networks which have been created by providers because it is run by Interim Managers for Interim Managers. INIMA aims to be an International Network of Interim Manager Associations as a nonprofit organization whose partners share common principles, values and a code of conduct. INIMA supports cross border collaboration to advance the Interim Management profession and facilitate the exchange of knowledge between the members of the INIMA partner associations. INIMA shall encourage communication, and share experiences, best practices and competencies.


See also

*
Acting (law) In law, a person is acting in a position if they are not serving in the position on a permanent basis. This may be the case if the position has not yet been formally created, the person is only occupying the position on an interim basis, the perso ...
, in law, a person acting in a position but not serving in the position on a permanent basis * Caretaker government, also called interim government


References

{{Management Crisis Management by type