Interim CEO: a senior executive who delivers results

Why hire an interim CEO?

Interim CEOs are often brought in when an organisation is going through change or needs to solve a specific problem. Some examples include:

• A permanent CEO has stepped down, and a replacement has not yet been found.

• The company is going through a restructuring or merger, and additional leadership is required.

• An experienced leader is needed to handle a crisis or challenge.

• The company wants to test a new leadership role or strategy before hiring a permanent CEO.

What to expect from an interim CEO

An interim CEO is expected to be an experienced leader with expertise in their field. They should have:

• Solid leadership experience

• Done a similar job before

• The ability to tackle challenges and change quickly

• Good communication skills

• The ability to work independently and make decisions

The benefits of hiring an interim CEO

Flexibility

One of the biggest benefits of hiring an interim CEO is the flexibility it gives the organisation. They can work for a set period or until a specific project has been completed. You decide how long you want the assignment to last.

Experience

Interim CEOs often bring a considerable amount of experience and knowledge from previous roles. This leaves them well equipped to handle challenges and change quickly and effectively. Put simply, they are slightly overqualified in a positive sense – and they have to be, because they are expected to create value from day one.

Objectivity

As temporary leaders, interim CEOs do not have the same ties to the organisation as a permanent employee would. This can give them an objective and impartial approach to issues and decision-making. In our experience, it also gives them a greater ability to get things done, because they do not have to take account of the internal politics and relationships that might hold a permanent leader back.

Cost-effectiveness

By hiring an interim CEO, a business can save money compared with hiring a permanent senior executive. Interim CEOs are also often paid by the day – they are only paid for the days they actually work – which can further improve cost-effectiveness. Remember that with an interim CEO everything is included: insurance, employer's social security contributions and, not least, pension contributions, which are often sky-high for permanent CEOs. Remember too that you need to add at least 35% to a permanent CEO's salary to arrive at the total cost – and that is before we even start talking about the bonus a permanent CEO often receives on top.

How to find the right interim CEO

Define your needs

First and foremost, it is important to define the needs and challenges the business is facing. This will help you identify what kind of expertise and experience you should look for in an interim CEO.

Search for candidates

Once you have defined your needs, you can start searching for potential candidates. You can do this by drawing on your network, contacting recruitment firms that specialise in interim management, or searching online. Agile Interim specialises in recruiting interim CEOs: We have a large pool of experienced senior executives and use the latest in artificial intelligence and executive search methodology to find an interim CEO who matches your needs.

Interview and assessment

Once you have found potential candidates, it is important to interview them thoroughly to assess their expertise and experience. Be prepared to ask specific questions about their previous roles, achievements and ability to handle challenges and change. When you use our services at Agile Interim, you get a thorough, quality-assured process, including structured interviews and a comprehensive reference check, which is sent to you before you make your decision. 

Success stories

Example 1 – Nokia

When Nokia was going through a difficult period of falling mobile phone sales and lost market share, Risto Siilasmaa was appointed interim CEO in 2013. He led the company through a comprehensive restructuring, sold the mobile phone division to Microsoft and invested in new business areas such as network equipment and technology licensing. This led to a significant improvement in Nokia's financial results and market position. 

Example 2 – Apple

The world's best-known and most successful interim leader is probably Steve Jobs. Did you know that Steve Jobs was interim CEO of Apple?  His title was iCEO – the “i” originally stood for interim. Jobs' time as interim CEO was a very important and decisive period in Apple's history. His leadership and vision helped the company overcome a serious crisis and set the standard for innovation and success in the technology industry.

Frequently asked questions

What is the main difference between an interim CEO and a permanent CEO?

An interim CEO is appointed for a limited period and usually works on specific projects or challenges, whereas a permanent CEO has a more permanent role and broader responsibilities.

How long is an interim CEO usually engaged for?

The length of an interim CEO assignment varies, but they are commonly engaged for anything from a few months to a couple of years, depending on the needs of the business and the scope of the project.

Is it necessary to hire an interim CEO through a recruitment firm?

No, it is not necessary to hire an interim CEO through a recruitment firm, but it can be useful to work with a firm that specialises in interim management to find the right candidate through a faster and more efficient process.

What kinds of challenges and changes can an interim CEO handle?

An interim CEO can handle a wide range of challenges and changes, such as crisis management, restructuring, mergers and acquisitions, strategic planning and implementation, and the management of key personnel.

What should I look for when hiring an interim CEO?

When hiring an interim CEO, you should look for a candidate with solid leadership experience, expertise in your field, the ability to tackle challenges and change quickly, good communication skills and the ability to work independently and make decisions.

What are the benefits of appointing an internal candidate as interim CEO?

Appointing an internal candidate as interim CEO can have several benefits. First, the internal candidate is already familiar with the company's culture, processes and employees, which can make the transition smoother and more efficient. Second, it gives the internal candidate an opportunity to demonstrate their leadership qualities and potentially be considered for a permanent CEO role in the future.

What are some common misconceptions about interim CEOs?

Common misconceptions about interim CEOs include that they are only suited to crisis management, that they are less committed than permanent leaders, or that they are an expensive solution. In fact, interim CEOs can be highly effective in many situations and can be more cost-effective than permanent leaders, especially when they are engaged for specific projects or time-limited tasks.

How can an interim CEO help develop the company's strategy?

An interim CEO can help develop the company's strategy by analysing current business practices, identifying areas for improvement and drawing up an action plan to achieve the company's goals. They can also contribute expertise and experience from previous roles, which can help the company navigate uncertain or challenging situations.

How do I make sure an interim CEO fits in well with the company's culture?

To make sure an interim CEO fits in well with the company's culture, it is important to interview candidates thoroughly and ask about their previous experience, leadership style and how they have adapted to different organisational cultures. Giving candidates a clear understanding of the company's culture and expectations can also contribute to a more successful integration.

What happens when an interim CEO completes their assignment or contract?

When an interim CEO completes their assignment or contract, they will usually end their engagement with the company and move on to other assignments or positions. It is important to have a plan for the transition when the interim CEO leaves, including a thorough handover to the new, permanent CEO or to other leaders who will take over the responsibility.

How can I measure the success of an interim CEO?

To measure the success of an interim CEO, you should first define clear goals and KPIs (key performance indicators) that are relevant to their assignment. These may include specific project goals, financial targets, or goals related to organisational culture and employee satisfaction. By evaluating the interim CEO's performance against these goals, you can assess their effectiveness and success in the role.

What challenges might interim CEOs face?

Interim CEOs can face a range of challenges, such as:

• Adapting to a new organisational culture and working environment

• Resistance from employees who may be sceptical of a temporary leader

• A lack of complete information about, or insight into, the company's history and previous decisions

• Time pressure and high expectations from the board and other stakeholders

To overcome these challenges, it is important for an interim CEO to have strong communication and relationship-building skills, as well as the ability to adapt quickly and make decisions based on the information available.

How can I support an interim CEO in their role?

To support an interim CEO in their role, it is important to:

• Give them a clear mandate

• Give them sufficient information and resources to make informed decisions

• Communicate clear expectations and goals for their assignment

• Include them in important meetings and decision-making processes

• Give them the opportunity to build relationships with key people in the organisation

• Provide feedback and support throughout their engagement

Can an interim CEO be hired as the permanent CEO?

Yes, an interim CEO can be hired as the permanent CEO if both the company and the candidate are interested and in agreement. This can be an advantage for the company, as the interim CEO is already familiar with the organisation and has proven their competence in the role. However, it is important to carry out a thorough evaluation and consider all relevant factors before making such a decision.

How can I prepare my organisation for the appointment of an interim CEO?

To prepare your organisation for the appointment of an interim CEO, you should:

• Inform employees and stakeholders about the leadership changes and the reason for appointing an interim CEO

• Communicate clear expectations and goals for the interim period – what do you want to achieve with this interim manager?

• Communicate the interim manager's mandate

• Communicate what you expect from the organisation during this period

Can an interim CEO act as a mentor to other leaders in the organisation?

Yes, an interim CEO can act as a mentor to other leaders in the organisation. With their extensive experience and expertise, they can offer guidance and advice to leaders at different levels and help them develop their skills and competence. This can be particularly valuable in organisations going through change or growth, where leaders can draw on the interim CEO's insight and experience to navigate challenging situations.

Is it common for an interim CEO to be offered a permanent position when the contract ends?

It is not unusual for an interim CEO to be offered a permanent position when the contract ends, especially if they have proven to be a capable and effective leader who has contributed to the company's success. However, this depends both on the company's needs and on the interim CEO's own wishes and future plans. Some interim CEOs prefer to continue with temporary roles and projects, while others may be interested in taking on a permanent position.

How can I make sure an interim CEO works effectively with the board and other key people in the organisation?

To make sure an interim CEO works effectively with the board and other key people in the organisation, it is important to establish clear lines of communication and ways of working together. This can include regular meetings and updates, as well as an open and honest dialogue about the company's goals, challenges and opportunities. It is also important to give the interim CEO the trust and autonomy to make decisions and lead projects, while they keep the board and other stakeholders informed and involved in the process.

Summary

An interim CEO can be a valuable resource for a business that needs temporary leadership or expertise during a critical phase. The benefits include flexibility, experience, objectivity and cost-effectiveness. The key to finding the right interim CEO is to define the needs of the business, search for candidates with relevant experience and assess their expertise and suitability through thorough interviews.

If you need an interim CEO, get in touch for a no-obligation conversation about how we can meet your company's temporary leadership needs.