Contrarian view
When not to hire an interim CEO.
Brief
A senior operator writing against his own product. Some situations do not need an interim CEO. Recognising them saves the company time, money and credibility.
Direct answer
An interim CEO is not always the right tool. Skip the interim when the mandate is really coaching, when governance is the real problem, when the business is too small to justify the seat, when the shareholder will not give real authority, when a specialist is needed instead of a generalist, or when the decision on the permanent CEO has not been made.
Six situations that do not need an interim CEO
- Coaching disguised as leadership. The sitting CEO needs a mentor, not a replacement. Buy coaching, not a bridge.
- Governance is the problem, not operations. The board is dysfunctional and no CEO will succeed under it. Fix governance first.
- Business is under 5 million euros of revenue. The economics of a full interim CEO do not work. Use a fractional CEO or a hands-on advisor.
- The shareholder wants control, not delegation. If the sole shareholder cannot let go of daily decisions, no interim CEO will function. Fix the delegation first or run without one.
- The mandate is technical, not general. When the real gap is a CFO, a CTO or a Chief Commercial Officer, hire that seat. Do not use an interim CEO to fill a specialist role.
- The decision on the permanent CEO has not been made. Interim is a bridge, not a way to delay a hard call. Decide first, bridge second.
How to tell the difference
- Write down the outcome the business needs in twelve months in one sentence. If a specialist can deliver it, hire the specialist.
- Ask whether the board is aligned on the profile of the permanent CEO. If not, resolve that before engaging an interim.
- Check whether the shareholder is willing to give the interim CEO signing authority, cash authority and hiring authority. If not, do not engage.
- Compare the run-rate cost of an interim CEO with the size of the P&L. Below a certain scale, fractional is the right shape.
Continue reading
Hub
Interim CEO in ItalyOne senior operator with a C-level track record, the alternative to head hunter fees.
Related
Fractional CEOWhen full time is not the right shape.
Related
When to hire an interim CEOThe positive case for engagement.
FAQ
FAQ on when not to hire an interim CEO
When is an interim CEO the wrong answer?
When the company needs a technical specialist, when the mandate is really a coaching engagement, when the shareholder is not willing to give real authority, or when the underlying problem is governance rather than operations.
What is a common mistake buyers make?
Hiring an interim CEO to buy time while avoiding the decision to change the permanent CEO. Interim is a bridge, not a delay tactic. If the permanent CEO must go, decide first, then bridge.
Is an interim CEO the right answer for a very small business?
Rarely. Below 5 million euros of revenue the economics of a full interim CEO do not work. A fractional CEO or a hands-on advisor is usually the right shape.
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