Interim Management

Interim management is the temporary provision of management resources and skills, often utilized when there is a gap in leadership due to a variety of reasons such as a sudden departure of a senior executive, organizational restructuring, or during periods of change. This practice provides organizations with seasoned professionals to fill crucial roles on a temporary basis and is crucial for maintaining the stability and performance of an organization.

Origins and Development

The modern practice of interim management began in the mid to late 1970s in The Netherlands. At that time, permanent employees were protected by long notice periods, making termination both legally complex and financially burdensome. This situation prompted the need for a flexible management solution that allowed organizations to acquire high-level skills without the long-term commitment associated with permanent hires.

This practice was introduced by the Dutch consulting firm Boer and Croon, which provided operational completion and implementation of strategy projects. The concept proved successful in The Netherlands, leading to further expansion. In February 1987, Boer and Croon formed a joint venture called "EIM - Executive Interim Management" with the executive search firm Egon Zehnder International and the private equity fund Euroventures. This initiative aimed to spread interim management services globally through Egon Zehnder’s international network.

Application and Use

Interim management is utilized across various industries worldwide, often seen as an effective solution for situations requiring a swift and flexible response. Companies might engage interim managers for:

• Leadership Changes: When a CEO or senior executive abruptly leaves, an interim manager can fill the role while the search for a permanent replacement is underway.
• Change Management: During mergers, acquisitions, or restructuring, interim managers guide companies through complex transitions.
• Crisis Management: In times of crisis, interim managers can bring stability and experienced leadership to manage the situation effectively.
• Project Management: For specific projects that require specialized skills, interim managers can be brought in to ensure successful completion.

Professional Bodies and Standards

The practice of interim management is supported by various professional bodies that uphold standards and provide accreditation. One such organization is the Institute of Interim Management, which is based in the United Kingdom and serves professionals in the field both domestically and internationally.

Comparison with Management Consulting

While both interim management and management consulting involve external experts, there are distinct differences:

• Integration: Interim managers become part of the organization, taking on line management responsibilities, whereas consultants typically remain outside advisors.
• Duration: Interim management assignments are usually longer-term than consulting engagements.
• Objective: Interim managers are often tasked with implementing strategies, whereas consultants may focus on strategy development.

Related Topics

• Management
• Business Strategy
• Human Resources
• Corporate Governance

Interim management continues to evolve as businesses face rapid changes in market dynamics, technology, and globalization. It provides a valuable resource for organizations needing flexibility and expertise in navigating complex challenges.