Bridging the Gap: When and Why Companies Turn to Interim Executives

Sometimes, the best answer is the most flexible one—this holds true even for executive leadership.

With increasing market volatility and pending trade wars, gaps in leadership continuity are more costly than ever. To meet their need for senior expertise, organizations are increasingly turning to temporary leadership assignments as a strategic tool for increasing their overall agility.

Interim executives, as the name suggests, are experienced leaders who take on temporary roles at the most senior levels of an organization. As former executives with decades of specialized experience, they bring firsthand knowledge of the day-to-day challenges of leadership, along with a broad perspective on the macro-level trends shaping an industry.

When to Bring in an Interim Executive

Is an interim executive right for every role? In short, no. However, in the right situation, they can be a critical asset in executing a strategic priority or providing stability during leadership transitions.

Interim executives are particularly valuable when organizations need quick access to senior expertise without committing to a full-time hire. Here are some scenarios where hiring an interim executive makes strategic sense:

• Addressing leadership Gaps: When a senior executive suddenly departs or goes on leave, organizations need an immediate replacement to ensure business continuity. An interim executive can provide stability while the company awaits the leader’s return or conducts a search for a permanent replacement.
• Piloting a role or function: As part of a growth strategy, an organization may identify the need for a new function or role. An experienced interim leader can be a valuable asset in developing role responsibilities and structuring the function before transitioning to a permanent hire.
• Leading temporary initiatives: For strategic priorities such as digital transformation, an M&A event, or restructuring, organizations may seek additional external leadership support. In these situations, interim executives provide short-term expertise to help ensure the initiative’s success.

Many interim candidates are former executives with extensive leadership experience, often in the later stages of their careers. They bring a wealth of experience and industry knowledge, which helps companies navigate external challenges to achieve business objectives.

And unlike full-time hires who require a lengthy adjustment period, interim executives possess distinct skills needed to thrive in high-pressure, short-term roles. Their adaptability enables them to deliver impact quickly, while their results-oriented mindset ensures a strong focus on maximizing outcomes within a limited timeframe.

Interim Leadership and Business Performance

Leaving leadership roles vacant for extended periods poses significant risks, including decreased team engagement, project delays, and operational inefficiencies. Interim executives provide businesses with the breathing room needed to think strategically about long-term hiring decisions while ensuring immediate challenges are addressed. They also offer additional benefits that keep organizations exploring the value of these assignments.

• Speed of Deployment: Interim executives can typically be placed within seven days, ensuring minimal disruption to business operations. They help facilitate smooth leadership transitions by maintaining momentum and minimizing disruption during a leadership change.
• Immediate Impact: These professionals enter a role with a clear understanding of their objectives, allowing them to deliver results immediately. Additionally, they play a crucial role in preparing the organization for the next permanent executive by stabilizing operations, optimizing processes, and setting a strategic course.
• Flexible Arrangements: Unlike contractors, who often seek to transition a temporary role into a long-term commitment, interim executives are engaged for a defined period with no contractual obligations beyond the agreed term. While the option exists to extend an interim’s contract or transition them into a permanent role, there is no expectation to do so.

Organizations that have experimented with interim leadership value its flexibility and efficiency, but also see it as a critical part of the talent pipeline. In fact, our data shows 75% of interim assignments are extended, while 45% of interim executives are eventually converted into permanent roles, highlighting their effectiveness in meeting organizational needs.

Conclusion

Interim executives serve as critical assets, ensuring organizations remain resilient and agile during transitions. Their expertise, adaptability, and leadership capabilities help businesses navigate challenges and seize opportunities, making them an invaluable solution for companies undergoing change.

As organizations continue to face evolving market demands and leadership gaps, the ability to deploy experienced executives on a temporary basis helps create the foundation for long-term success. Whether bridging a leadership transition, spearheading a strategic initiative, or providing specialized expertise, interim executives play a pivotal role in shaping the future of agile organizations.