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.
We view deploying executives into companies in a similar way: we get one chance to make a great match, one chance to deploy the executive to best advantage. Like finding a great investment opportunity, deploying interims is a timing game. We must catch an 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 the clients we work with.
Most HR execs have been trained to look for candidates who have a track record sticking with companies for long periods of time. For many companies going through upheaval, rapid growth, or dramatic changes in their markets, that long-term permanent employee mindset may actually be more detrimental. When a company must evolve quickly, an executive hired on full-time may not be the right leader nine months or a year down the road.
The speed at which companies move in today’s world to stay relevant has paved the way for the new specialty of interim management, which includes executives focused on operations to finance, technology, sales and marketing. Interims are skilled operators who run, build, grow, and fix businesses. They take on accountability in C-level roles making decisions, reporting to the board, and being held responsible for the results.
Unlike executives who choose long-term, permanent jobs, interims are wired for transformation and usually are called in when companies need a leadership boost to get them on the right path. Once an interim brings an organization, division, or department to a better state of affairs, that new-found clarity and direction gives the HR team a cleaner slate by which to recruit and hire the next permanent person in the role.
In the Computerworld article “The latest in IT services? CIO hired guns“, Robert Jordan, CEO of the Association of Interim Executives explained to Computerworld that interim executives are responsible for “hiring, firing and making decisions”.
Thank you to RED Team members, Damon Neth and Dean Samuels, who also provided great insights. Dean Samuels, Interim CIO, said “This is exactly what the future is. We’ve gone from an IT asset portfolio to an IT service portfolio. So if IT has transformed into a services portfolio, why wouldn’t you get an IT service-oriented CIO as a service?”
Interim CIO, Damon Neth explained the honesty that comes with interim executives adding “I have no problem selling unpopular messages if I believe that they’re right for the organization or addressing the elephant in the room.”
The truism that every business needs marketing cannot be denied, even by businesses that owe the majority of their growth to word-of-mouth referrals. However, confusion arises when businesses mistake marketing for sales. In simple terms, marketing builds demand, sales closes the deal.
The goal of marketing is to increase sales and, by perforce, grow revenue. The trick is in measuring the success of your marketing efforts. What metrics do you use to measure marketing effectiveness? Although profit is the ultimate goal, it’s not the sole measurement of success. Other benchmarks along the way indicate the effectiveness of your marketing efforts.
After a call with a “strategy” director (I hate quotes, but let me do this just once) at a multibillion dollar public company, I couldn’t help but thank Forrest Gump for popularizing the proverb:
Stupid is as stupid does
This company is in a sleepy industry and to continue to grow they must find new ways to innovate. Our conversation circled around a request to help in what would be a major, breathtaking pivot into a completely new sector. To succeed, the company would need more leadership and more firepower than organic growth would provide, meaning they were looking to acquisitions. And we had the perfect target – a fit so good as to be called an epiphany.
An interim leader is an accomplished operating executive, highly skilled from extensive training in corporate or entrepreneurial environments. Interim leaders focus on helping companies through periods of change, transformation, or transition. Assignments can run anywhere from a few months to two years, but the executive is usually focused on helping a company get to the next stage of growth or turnaround. Examples of when an interim may be brought in include:
Turning around a company from decreasing or stagnant revenue
Putting processes, systems, controls, and operational improvements in place
Ramping up a company’s growth to prepare it for investment or sale
Increasing sales, brand positioning and awareness
Interim executives engage around the world with client companies ranging from startup to growth mode, private to public to nonprofit and NGO, multibillion dollar robust multinationals to struggling or failing businesses, products and divisions.
Interim executives, or interims, have recently become an important tool that organizations can use to effectively address a variety of pressing needs. Having said that, many companies are either unaware that interims are even available or appropriate for their current situation. The most common understanding of the role of an interim is to fill an immediate need in the executive team caused by a sudden voluntary or involuntary departure. In this case, a seasoned executive can step right in and allow the company to progress unabated. While much of what an interim does is similar to consulting, successful execution is critical and unique to the role of interims. This blog presents seven case studies to help companies better understand other instances where interims can help. There are certainly more examples, but these are representative. While seven represents everything from the apocalypse to luck in gambling, we’ll stick with seven.
The best private equity funds talk about backing great CEOs, entrepreneurs, and management teams. But in the lower middle market ($2-$15 million in EBITDA), what’s a private equity fund to do when the company they are acquiring lacks resources and the management skills to earn great returns?
What if serious talent doesn’t extend beyond the CEO or founder?
Douglas Song, co-founder of Prodos Capital Management and an investor in lower middle market companies, says that “there’s always a way to think creatively and unlock value in any lower middle market company.” He especially finds common themes among companies where entrepreneurs or families have built a great business over time, but are lacking in certain areas where partnering with additional resources will help them take the business to the next level.
Interim Execs works with companies, board members, and investors to match them with C-level talent wherever needed. And it’s not just about title – our Rapid Deployment Program looks at where you are at, and where you want to go.
Maybe there is a leadership gap, or maybe you are trying to get the business to the next level – expanding overseas, acquiring and integrating other businesses, transforming technology and operational processes. Maybe you see trouble on the horizon if you don’t make changes fast.
Interim executives specialize in quickly assessing your business, creating a strategy moving forward, and actually executing on it. Yes, that means doing the work. This is not consulting. We don’t deliver long reports that you can’t act on. We fix. We optimize. We grow. We lead.
Interim executives deliver real results, in real time, real quick. An interim is unique in the depth and breadth of experience they bring to bear. This allows an interim to see hidden value in existing products/processes/systems, implement actionable strategies and gain true alignment necessary to optimize the business. The interim will review the investments the company has made into processes, organizational structure and systems. This will lead to a focus on the areas which can be easily measured and might yield the quickest return on investment such as profits, systems and process efficiency.
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.
*$200 additional charge for Accelerator Program only applies for first-year members. After the first year, membership renews at $485/year.