A second-generation, family-owned manufacturing company that serves the retail trade was struggling with marginally acceptable quality, excessive work-in-process inventory, missed delivery dates, weak systems and crucial processes rooted in “tribal knowledge.” Because of these and other inefficiencies, the plant appeared to be running at capacity and the sales force was reluctant to contract for new business.

After two years of disappointing returns and many attempts to solve the issues with existing staff, the business owner decided to hire an interim executive who brought a “hands-on” perspective and a history of solving similar issues in other businesses. Within months, the new executive made changes that increased manufacturing capacity by more than 50% without additional staff.

The business owner deserves credit for these results. He made the tough decision to enlist experienced help from outside his business and then worked closely with the interim executive to understand and support the necessary change.

Experience in producing results
When business issues that have gone unsolved for months are causing sleepless nights, it might be time to consider an interim executive. Owners who have been thinking about the same issue for a long time without progress will benefit from the knowledge of an outside executive—often a former business owner who has already solved the same challenge.

Interim executives, by definition, are overqualified for the task at hand. Little, if any, on-the-job training should be required; a good interim executive is effective from Day 1. These executives are not “lone rangers”; they work for the business owner, applying their experience in a way that honors the company culture while moving the business forward.

Interim executives are not consultants. In fact, many business owners bring in interim executives after being “consulted out”; they’re seeking someone who can work in the business to produce results. Interim executives work with the business owner for as long as it takes to achieve his or her goals. Although the company’s needs determine the length of the engagement, in all cases the objective is to leave the company with a permanent solution—that does not include the interim executive as quickly as possible. A good interim executive gives a company the tools and strategies to maintain long-term success, but the executive won’t work for that company indefinitely. As the name implies, he or she is a temporary leader who helps build long-term solutions.

Interim executives have experience at various levels of management. They work alongside business owners as temporary CEOs, CFOs, COOs or presidents. An interim executive’s job can involve assisting with strategic change, undertaking high-level projects or serving as an executive coach to the management team.

The often-challenging process of generational transfer is one area in which interim leaders can increase the business owner’s chances of success. Succession planning is a complex and emotional process in any business, and family dynamics add another layer of difficulty. Uncomfortable topics need to be discussed openly, including how the company will be run under a new leader, employee security and personal concerns about control and income.

During this process, it is wise to enlist resources to help guide the family, such as legal and financial advisers. But many business issues are also raised as the mantle of leadership is passed to the next generation. An interim executive can provide business counsel and active leadership during this period to help ensure that the long-term interests of the company and employees are served.

Preparation for the sale of a business is another area where interim executives can add substantial value. In this situation, the interim executive’s goals are to advise the business owner on available options and to work in the business to fix deficiencies and enhance profits to position the company to ensure maximum valuation. Interim executives have experience running and selling companies, so they can guide the business owner on how to align the company for sale and position the business to win in the current seller’s market.

One recent client of ours owned a small cosmetics company and needed a president to run the company while a long-term replacement was found. The firm’s performance was slipping and major new clients were on the horizon. The business owner also needed to transition her ownership in the firm, for family reasons. The interim executive who helped her had 20 years of experience in the industry, including leadership of a $100 million cosmetics company. His contribution enabled our client to maintain operational continuity and achieve a successful sale of her portion of the business within six months.

Working as a team
As a family business owner, you probably view your company from an emotional as well as a rational standpoint. You may worry that hiring an outsider is tantamount to losing control of your company. But actually, an interim executive can help you to regain control of your company. Interim executives don’t aspire to lead a company they’ve already done that. They have proved themselves in their careers; their satisfaction now comes from using their knowledge and experience to help others realize their dreams.

Think of an interim executive as a caddy who carries your clubs and helps improve your game. In some cases when the workload is high and you need a playing partner, the executive can switch from caddy to player.

When an interim executive steps in to run the company, you won’t be left out in the cold. You and the executive will work together to plan and execute change that makes sense for your company. Depending on the situation, the change being executed may also open up new business opportunities for you and the management team to capitalize on.

Making a Match
To find the ideal executive for your company, look for a firm with a large pool of talent that specializes in meeting the needs of family-owned businesses. A reputable firm will provide a no-cost consultation so you can gauge the firm’s experience resolving similar issues in other companies. You will also want to consider the personal chemistry with the company; look for compatibility with your overall goals and values. You want someone with many years of experience in your industry who can step in quickly and start providing leadership within days.

Next comes the hard part. You, as the business owner, must decide if you are willing to change. Working with an interim executive will likely require some level of change on your part, and your active participation is required to ensure success. The good news is that this change usually involves you growing into a role that is more in tune with your life goals. A good interim executive firm will be your trusted adviser. Be sure that your search consultant asks about your personal goals, since those are often drivers of change within your business.