As market disruptions occur, customer expectations evolve, and technologies advance, companies are faced with increasing pressures.
This often presents organisations with unexpected challenges or opportunities to transform their organisation, which demand immediate and expert attention.
For these reasons, the role of interim managers has become integral to driving successful business transformation.
Interim management refers to the delivery of a target business solution through the expertise of an independent, board or near-board level manager or executive, on a temporary basis. These interim managers often step in as experienced leaders to support organisations during periods of change, crisis or transition, to deliver targeted results.
Interim management has long moved beyond the misconception of mere gap-filling as a temporary solution where executives are absent, or while awaiting permanent hires. Interim managers’ expertise and capabilities have been increasingly utilised over the last decade as organisations are recognising the invaluable part they play in leading and delivering transformation and change.
In IIM’s Interim Management Survey 2024, 39% of Interim managers stated that Business change/Transformation made up the principal role type that they undertook last year. This demonstrates that organisations are seeing the benefit of the strategic insight and hands-on experience that interim managers bring when it comes to transitioning from planning to execution faster.
With there now being a wider understanding of interim management, the role of the interim manager has rapidly evolved. Organisations are now increasingly seeing the potential for these highly experienced professionals to drive strategic initiatives and lead mission-critical projects and programmes. Subsequently, organisations’ adoption of Interim talent appears poised to continue growing for the foreseeable future. Our Transformational Leadership survey highlighted, that 60% of senior leaders agreed that over the next five years, they will utilise more agencies and interim talent to achieve their strategic goals.
What makes interim managers an integral part of transformation is their ability to lead crucial projects that exceed the current teams’ capabilities. For example, senior leaders from our Report also identified that the top three areas in which they would be running transformation programmes over the next five years will be, Artificial Intelligence (AI), Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM). Due to the complex nature of transformations such as these, interim managers are often best suited to support as their experience and expertise in the transformation area often exceed those of the existing teams, who have had limited or no exposure to these systems.
Transformations, whether restructuring, digital implementation, growth initiatives or cultural changes, are complex and often characterised by uncertainty, resource constraints and risk. The correct leadership is integral to ensuring a successful business transformation. With interim managers’ ability to drive rapid change, manage risk, and provide clarity throughout the transformation process, they can offer the strong leadership solution often required during crisis and transition.
When you hire an Interim manager they bring the following qualities to your transformation programme:
Although organisation challenges may appear unique, Interim managers are seasoned professionals, with deep transformation expertise, and have often delivered similar projects across various sectors. They can evaluate the complex circumstances of the transformation and design and implement strategies effectively.
Due to the nature of their work, interim managers are adept and experienced in adjusting to new, often challenging, environments quickly. Their ability to pivot and identify alternative solutions makes them best suited to effectively lead transformation programmes; ensuring they continue smoothly even when disruptions occur.
Transformation often requires difficult decisions around restructuring teams, adjusting priorities or reallocating resources. By bringing in interim talent to support the transformation organisations will get a fresh perspective, from individuals who don’t bring any prior bias, and are able to make tough calls impartially. Interim managers are often able to identify problems and solutions that may have been shrouded by longstanding relationships or office politics.
Effective change management is crucial during transformation. Being focused on a specific requirement from day one, they are concerned solely about the success of the transformation for the organisation. Focusing on the outcome and results, Interim managers are adept at managing resistance, building employee buy-in and effectively communicating transformation goals.
Interim managers work closely with internal teams, monitoring and coaching, to ensure that the new processes, skills and mindset are embedded within the organisation, allowing for long-term success. This means that when their contract ends there is a smooth transition, as well as a lasting legacy which has been established. This legacy strengthens the organisation’s operational resilience and prepares them for future challenges and opportunities.
A significant strength of interim management is the well-defined nature of their role. As interim managers are brought on for a specific objective or project, this creates clear boundaries regarding their scope and deliverables.
With interim managers’ specialised expertise, quick execution and leadership skills, their result-driven decision-making can help ensure that organisations remain resilient, forward-thinking and adaptable as they navigate future market demands. Here are key scenarios in which interim managers can be a strategic asset to transformation:
During a restructuring, organisations often have to streamline processes and costs to improve profitability and efficiency. An interim manager is able to objectively assess the organisation and make the challenging decisions needed during restructuring while ensuring a smooth transition.
While the initial hiring of an interim manager might seem expensive, it often proves to be a cost-effective solution in the long run. An interim manager’s expertise and previous experience can significantly reduce the time and resources required for a successful restructuring. Furthermore, interim managers are more likely to identify and avoid costly mistakes that could potentially have arisen if the process was managed by an internal leader, who is less experienced.
A vast majority of organisations are now understanding the importance of digital transformation in staying competitive, whether it be the implementation or adoption of AI, cloud solutions or automation.
With the rapid emergence and development of disruptive technologies organisations are recognising the importance of prioritising transformation over optimisation. Research by Statista outlined that in 2024, spending on digital transformation worldwide was projected to be 2.5 trillion US dollars (£1.98 trillion). Furthermore, recent research by Deloitte highlights that 70% of business leaders believe digital transformation to be the most important investment to drive enterprise value within their organisation, now and in the future. However, organisations often fall short of knowing how to successfully navigate digital transformation.
This is where interim managers with digital expertise are a crucial asset, as they can lead these projects, driving change and bridging skills gaps. Interim managers can support in identifying the right technology, overseeing deployment and internal team training, as well as making sure the new system aligns with business objectives.
More specifically, the implementation of technology systems such as ERP or CRM during digital transformations significantly benefits from the hiring of an interim manager. ERP and CRM we earlier identified as top areas, alongside AI, in which organisations plan on carrying out transformation programmes, over the next five years. Hiring interim managers during these times is more crucial than ever. They will ensure that the rollout process is streamlined, and the risk of disruptions and delays is reduced to maximise the investment’s success.
Alongside restructuring, Mergers and Acquisitions (M&A) are on the rise as organisations work to adapt to shifts in the market and operations. To complete a successful M&A transaction diligent planning is required to ensure the integration and alignment of cultures, systems and operations. Interim managers can offer the neutrality and focus needed to identify quick wins and support in creating a value strategy successfully to drive the transaction.
When dealing with organisational leadership and strategic planning, leveraging the correct support is essential. Interim managers and consultants are often utilised by organisations as crucial strategies for sourcing expertise and solutions for their complex challenges and transitional phases. The key differentiation is that while interim managers step into the organisation and take authority of decision-making and operational responsibilities, management consultants offer more of an advisory solution, focusing on problem-solving and providing recommendations without the operational expertise of an interim manager.
In scenarios where hands-on leadership, swift decision-making and practical expertise are required, interim managers can often be the best fit for an effective transformation:
Taking on leadership roles and responsibility for the execution of strategies, Interim managers are involved in managing and monitoring teams, projects and resources to drive results. This close association with the execution of the transformation also creates a stronger sense of accountability. With this element of accountability and being embedded within the organisation; often assuming executive positions, interim managers are highly invested in the outcomes and success of the organisation’s goals. As consultants’ deliverables often address strategy rather than execution, interim managers’ commitment to measurable outcomes sets them apart.
Whereas consultants often describe themselves as ‘an extension of your team’, Interim managers genuinely become part of your team and are involved in all aspects of your transformation programme.
Despite interim managers daily rate being higher, their investment in achieving tangible results and focus on execution often ensures the project is completed at a faster pace, incurring lower overall costs. Whereas, engaging consultants can extend over a long period of time and involve larger teams, increasing costs without necessarily delivering practical outcomes.
What interim managers can offer is fast-paced integration, flexibility and notable impact at short notice. Being able to lead change and crucial functions from day one is often essential when organisations are implementing transformation during periods of crisis. Furthermore, what can be missing when hiring a consultant, which interim managers can offer, is the element of knowledge transfer and mentorship. Interim managers’ prioritisation in building the capabilities and skills of internal teams ensures sustainability after the conclusion of the assignment.
As businesses navigate the complex challenges and opportunities the need for experienced, adaptable leaders to guide business transformation is greater than ever. Interim managers offer the agility, expertise and hands-on leadership which are invaluable to driving change, making them a vital asset to organisations undergoing transformation. Through a combination of practical execution and strategic vision, they deliver immediate results while embedding capabilities and building resilience which ensures organisations are prepared for future challenges.
For support and guidance on hiring the best interim talent for your business transformation please reach out to a member of our interim management team.
