Interim Executives: When Should You Bring Them In and What Should You Expect Them to Handle?
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This document discusses the role and benefits of interim executives (IEs) in managing organizational changes and driving growth during critical transitions. It outlines when to utilize IEs, their expected responsibilities, and the key factors influencing their success, including the importance of planning, defining authority, and ongoing communication. The author, Darrel Raynor, highlights various case studies demonstrating the positive outcomes resulting from effective interim executive engagement.
Interim Executives: When Should You Bring Them In and What Should You Expect Them to Handle?
- 1. © 2019 All Rights Reserved Interim Executives: When Should You Bring Them In and What Should You Expect Them to Handle? Authored by Darrel Raynor, PMP, MBA President/CEO & Founder, Data Analysis & Results, Inc. Interim, Fractional, Full-time COO/CIO, EVP/SVP, GenMgr/ExecDir www.DataAnalysis.com | +1-512-850-4402 | [email protected]
- 2. © 2019 Abstract Interim Executives (IEs) are usually highly qualified people with skills who have and can provide specific benefits. IEs can be a strong weapon in your fight for growth and stable revenues. We discuss the types of situations where using IEs may be optimal including when you have an important Change effort and need Business Transformation Change Management. We go over how to ensure the success of your IE efforts, and what to expect your IE to handle! page 2
- 3. © 2019 Your Speaker Darrel Raynor, MBA, PMP, serves as Interim and Fractional COO/CIO/EVP/GM/Executive Director to drive revenue, growth, hiring, problem solving, turnaround, major changes, projects, and to lead any major change. He serves as CEO and President of Data Analysis & Results, Inc. Darrel frequently serves as a speaker for keynotes, annual meetings, retreats, workshops, and strategic planning facilitation. He works with nonprofit, commercial, and government organizations as a transformational change leader, and has developed custom and tailored courses and delivery for his clients, both onsite and virtually. He has a undergraduate degrees from Iowa State University and an MBA from Golden Gate University. page 3
- 4. © 2019 Before We Begin Questions? Please be ready for a show of hands. Please ask questions anytime! page 4
- 5. © 2019 Show of Hands for First 2 Questions Your Use of and Thoughts around Interim Executives 1. Have your firm or clients used IEs? 2. Are you planning to use an IE? 3. What Challenges would you expect when you use an IE?
- 6. © 2019 Definition: Executive A very experienced person who has held a CxO position, near CxO position, or a high-paid specialist. Executives usually have experience in a variety of industries, organization types and sizes, and for organizations in growth, contraction, and stagnation modes. They usually have high decision making authority and a large span of influence and control.
- 7. © 2019 Definition: Interim Executive An executive who steps in temporarily, many times but not always full-time, to either handle a specific set of situations or provide a steady hand on the tiller until a permanent hire is made and brought up to speed. Interims sometimes end up going permanent if the fit is proven and other dimensions fall into place. Pay can be monthly, retainer, and in some cases performance based.
- 8. © 2019 Definition: Fractional Executive An executive who is available part- time, for a flexible amount of time spent and duration. Some fractionals help an organization for years, think about a CPA firm or outside council... They may evolve into a full-time or near full-time role if the organization requires it. Pay is usually retainer, sometimes daily, weekly, or hourly, and sometimes with equity. https://www.dataanalysis.com/staffing/ interim-executives
- 9. © 2019 ● When you have a temporary need (Someone quit, was released) ● When you plan or are in either trouble or a period of high change (Business Transformation) ● When you have a specific goal to reach then things settle down (M&A; New Location, Product, or Project) page 9 When Should You Bring in an Interim and/or Fractional Executive?
- 10. © 2019 ● A specific set of areas *or* ● Open-ended responsibilities ● A problem, project, program, customer, audit, or other bounded effort ● Expect them to need your support to change things across the organization... page 10 What Should You Expect Your Interim and/or Fractional Executive to Handle?
- 11. © 2019 ● Cause: Owner Sick - The owner proprietor was diagnosed with fast- moving cancer and immediately had to back away from the business. ● Situation: Managers and other employees were taking advantage - They were underreporting revenue, stealing parts and supplies, and generally not performing, driving the business down quickly. ● Executive Involvement: Interim CEO - CEO took full control, modernized technology, added many controls, adjusted staff, obtained new contracts, reduced expenses, and trained the owner’s son to take over the business in 5 months. Revenue grew from a dropping $4m to ~$7m. page 11 Story #1 - Large Auto Body Collision Center
- 12. © 2019 ● Cause: Inexperienced Project Manager - The PM allowed the client to leverage the software and services firm into an untenable position. ● Situation: Client had Lawyers in room for Status - The client did not trust the firm and the firm did not trust the client. Main point was the contract which had massive subrogated content. ● Executive Involvement: Interim PM - PM took full control, renegotiated the contract, adjusted staff, moved to transparent estimates, tracking, and controls, and built trust through constant focus on performance. Client turned from unprofitable to 17% agreed profit and turned client to formal reference. page 12 Story #2 - Large Public Safety Software Project
- 13. © 2019 ● Cause: CEO/Developer Shooting for Unicorn Status - The CEO pushed to take over the market rather than admit to slow growth. ● Situation: Firm Losing Paying Customers - The CEO diverted resources from support and current products, angering customers. ● Executive Involvement: Interim COO/CIO - IE took full control, reallocated resources back to current product and customers, adjusted staff, formed large customer council, reduced expenses, and overhauled marketing program, growing revenue from ~$6m to ~$19m in 9 months. page 13 Story #3 - SMB SaaS Education Software Firm
- 14. © 2019 Our Research on Interim and Fractional Executive Use Reasons for Fail or Hassle ● Viewed as not being able to come up to speed or understanding unique needs (fallacy) ● Spending too long recruiting ● Expecting high change too quick ● Not yielding decision, budget, and action authority 2 Flavors of Success 1. Declared - Culture and specifics are better 2. Specifics - Revenue or other goals are actually affected via specific measurements that are directly linked to your effort that persist over time page 14
- 15. © 2019 1. Plan Your Results, Not Your Process 2. Negotiate Span Of Control And Stick To It 3. Communicate Your Support For Your IE page 15 3 Steps to Success Using Interim and/or Fractional Executives
- 16. © 2019 1. Plan Your Results, Not Your Process page 16 Without a plan you will be trusting an IE quite a lot... ● What are your best outcomes from using an IE? ● What metrics can you track to see both progress and ultimate results? ● What other Plans should you make?
- 17. © 2019 2. Negotiate Span Of Control And Stick To It page 17 Decide upfront the specific authority you need to give your IE Collaborate on what they can and cannot do, and why. Don’t backtrack on delegated authority, it will surely be tested...
- 18. © 2019 3. Communicate Your Support For Your IE page 18 Let’s think about each of these… ● Announcing Initial Decision ● Performance Metrics & Status ● Span of Control ● Remember your IE will likely drive changes in your: Process, People, and Tools! (To Support The New Norm)
- 19. © 2019 All Rights Reserved Interim Executives: When Should You Bring Them In and What Should You Expect Them to Handle? Authored by Darrel Raynor, PMP, MBA President/CEO & Founder, Data Analysis & Results, Inc. Interim, Fractional, Full-time COO/CIO, EVP/SVP, GenMgr/ExecDir www.DataAnalysis.com | +1-512-850-4402 | [email protected]
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- 21. © 2019 All Rights Reserved Data Analysis & Results, Inc. Firm Profile DA&R is a boutique Management Consulting firm providing Advisory and Implementation Consulting and other services to Leaders. Our focus is your improvement using our proven integrated methods to measure and optimize your areas such as strategy, projects, hiring, costs/expense reviews, turnaround and interim management, speaking, training, and staffing.
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