When Permanent Isn’t Practical: The Value of Interim Managers

Family businesses often face moments requiring major decisions—whether it’s passing the baton to the next generation, preparing for a possible sale, or resolving family or shareholder disputes.

In such uncertain times, making a permanent leadership appointment can be tricky, if not impractical. That’s where appointing an interim manager can be an effective solution.

Why Opt For An Interim Manager?

During periods of uncertainty, family businesses need leaders who are both decisive and adaptable. However, finding a permanent executive under these conditions can be tough. The murky future of the business can make the role less appealing to top candidates, who may be wary of stepping into a position with unclear long-term prospects. The added concern of navigating unresolved family dynamics or ongoing shareholder disputes only compounds the difficulty.

An interim manager, by contrast, is hired for a specific purpose and a set duration. This temporary arrangement allows the business to benefit from top-notch expertise without the long-term commitment required for a permanent role. Interim managers often come with a wealth of experience from dealing with similar scenarios in other businesses, making them well-suited to handle the challenges at hand.

Focusing On The Task At Hand

Unlike permanent executives, interim managers don’t have to worry about their long-term future with the company. They are brought in to achieve specific objectives—whether it's stabilising operations, leading a transformation, or preparing the business for sale or succession. Their main focus is on delivering their mandate effectively, without getting caught up in the ‘noise’ of internal conflicts or the uncertainty surrounding the business's future.

This focused approach enables interim managers to drive necessary changes, implement best practices, and set the business on a positive trajectory, all while giving the family the time and space needed to address underlying issues. Whether guiding the business through a transition, managing a crisis, or simply holding the fort until a clear strategy emerges, an interim manager is crucial for maintaining stability and continuity.

Providing Breathing Space For The Family

For family members and shareholders, having an interim manager in place can offer much-needed relief. Knowing that an experienced professional is temporarily steering the ship can ease some of the pressures associated with leadership uncertainty. This breathing space allows the family to tackle sensitive matters—like succession planning, ownership disputes, or strategic realignment—without the immediate pressure of securing a permanent leader.

Furthermore, this interim period can be invaluable for reflection and planning. The family can use this time to refine their vision for the future, resolve conflicts, and make informed decisions about the business's direction. Once a consensus is reached, the search for a permanent leader can continue, now with a clearer understanding of the role and the qualities required in the ideal candidate.

The Flexibility Of Interim Management

A major advantage of interim management is its flexibility. Interim managers can be brought in at short notice, for precisely the right duration, and with a clear focus on achieving specific results. This flexibility allows the family to adapt to changing circumstances without being tied to long-term commitments. If the business’s needs evolve, the interim manager’s role can be adjusted accordingly, ensuring that the business remains responsive and agile amidst uncertainty.

In family businesses where the future is uncertain and internal issues remain unresolved, appointing an interim manager offers a pragmatic solution. It provides the business with the leadership and expertise necessary to navigate challenging times, without the complications of a permanent appointment.

By concentrating on immediate needs and allowing the family time to address underlying concerns, an interim manager plays a vital role in guiding the business through periods of uncertainty, paving the way for a more stable and successful future.

About the Author: David Twiddle, Managing Partner at TWYD & Co, specialises in recruiting executive and non-executive roles for family businesses and assisting business families in overcoming complex and sensitive people challenges.