Aram Lulla - Division President, AF | HR | IT at Korn Ferry.
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If 2021 was the year we expected to return to “normalcy” (and didn’t), then 2022 is the year many are accepting volatility as the de facto operating mode. A massive war for talent, new Covid variants, hybrid work and the highest inflation levels in a generation are creating new business challenges. One smart strategy for navigating this volatility? Hiring an interim executive.
If you’re thinking “Sure, who wouldn’t want to be CEO for a day?” I hate to spoil the fantasy, but this is not the same thing. While being CEO for a day sounds fun in theory—and can even be a great way to teach employees leadership lessons—hiring an interim executive is very different.
An interim executive is a seasoned leader who is hired for a three-to-18-month period to guide an organization through a specific challenge or advance a key initiative with defined activities and deliverables. Often, an interim executive joins a company during a time of transition, upheaval or transformation. Their mission is to leverage their unique expertise and steer the proverbial ship through stormy waters, which certainly sounds a lot like 2022. It’s no surprise then that the number of interim executive positions continues to grow, according to the latest report from the Bureau of Labor Statistics.
Should Your Business Hire An Interim Leader?
CEO turnover hit a record high in 2021, and the impact of these departures is felt throughout companies. When CEOs change, the senior leadership team often turns over as well, creating new vacancies and additional hiring needs. Remaining managers and departments are left to navigate the upheaval without a clear guide.
I’ve been on both sides of the executive search process, participating in search committees at my employer and helping clients make key C-suite hires. Many organizations underestimate how long an executive search process can take. Finding a new CEO, CFO, CTO or other executive leader could easily take six to 12 months or longer. Interim executives offer a way for your business to get the leadership it needs today, without the long, expensive hiring process.
Could an interim leader be the right fit for your business? Here’s why an interim executive might be a smart choice for your business, plus how to maximize their impact:
1. Hire the right talent, for the right moment.
Today’s executive roles demand diversified experience, including technology, risk and strategy. Plus, if your organization is facing a specific challenge, like pivoting to a new business model or expanding operations in a new geography, prior experience is invaluable. By choosing an interim hire, you’re tapping an exclusive talent pool you might not access otherwise. Seasoned executives are suffering from burnout, too, and they’re increasingly reluctant to sign up for a long marathon of full-time company leadership. A shorter sprint to a very specific goal, however, could be an appealing and energizing challenge.
2. Don’t overlook culture fit.
The résumé might tick all the right boxes, but if the executive doesn’t match your organization’s culture, the result could be akin to bringing a bull into a china shop. This is where partnering with the right executive recruiter can make a difference. Vetting references, understanding a leader’s management approach and assessing their soft skills are critical. This is especially important when the hire will be guiding the company through a major transformation. The business strategy may be spot-on, but if it's delivered in a way that clashes with cultural norms, executing it may be a challenge and you risk losing top performers.
3. Set SMART goals.
Unlike a traditional executive hire who may have years to build a performance legacy, interim leaders are hired with a short list of specific goals they need to accomplish. Set everyone up for success by being explicit about how the organization will measure performance using the SMART goal framework (i.e., specific, measurable, achievable, relevant and timebound).
4. Add an onboarding coach.
Getting up to speed can take time in any new organization, but interim executives don’t have the luxury of slowly getting to know the company, culture and business challenges over an extended time frame. An onboarding coach is someone who has been at the company for several years and can help the new executive form key relationships, avoid institutional landmines and steer their SMART goals.
The last two years have forced organizations to reconsider their people strategies, from where employers are located to the benefits that matter most. Rethinking your executive hiring approach should be part of this, too. When we break free from the constraints of “traditional” executive hiring, we open our organizations to game-changing talent who can deliver immediate results.
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