What is an interim CEO, and how are they different from CEOs? This is a question that often gets asked. To the uninitiated, it’s a temporary position (the definition of interim is provisional, temporary, intervention) that works as a CEO of a company that has suddenly lost its leader.
In dictionary terms, an Interim leader is someone who’s employed to work for an organization for a short period, or until a new CEO arrives. That said, let’s take a look at the key distinctions between an interim CEO and a CEO.
Responsibilities
An interim CEO assumes the general responsibilities of the last CEO, with a few additions. Some of the things they will work on include strategic planning, team management, crisis management, and assessment, among others. Their responsibilities are nearly parallel to that of a CEO, who will correct financial oversights, manage risks, communicate with stakeholders, and drive growth and innovation within their industry.
Duration of Stay
There isn’t any specific period for interim executive CEO lengths, and the same goes for CEOs. However, CEOs stay on a permanent basis and are in it for the long term. C-level interims have a tenure ranging from a few months up to a year or so, while CEOs are expected to lead the organization for several years or more.
Impact on Company
Both offer the same impact within a company, which is a sense of stability. The temporary role of an interim can serve as a beacon of light, especially for employees and partners. A CEO offers a greater boost when it comes to morale and continuity.
Implementing Change
Interim leaders can be synonymous with organizational change, as they could be brought in to see things in a different light, make recommendations, and drive new initiatives. A CEO takes care of strategic transformations and aligns them with the company’s vision.
Leadership Style
An interim CEO and CEO might have different leadership styles and strategies depending on who they are. CEOs will have a lot of opportunities to foster relationships within the organization, while an interim C-level exec may not have the luxury to do so.
Appointment Process
The hiring process for a new CEO is typically longer, while interim management can be called upon due to its urgency. The basis for new interim leadership involves tenure and experience in the industry, while with CEOs firms can search far and wide, considering both external and internal candidates.
Connection with Stakeholders
Both CEOs and interims have a significant connection when it comes to stakeholder relationships. When a CEO makes a sudden exit, an interim executive is brought in to maintain trust and reassure the board members. In the meantime, a CEO takes care of board members as long as they remain in position. They’re often seen in media engagements as well.
Interim leaders can bring about a positive transformation in any organization or company. Contact Interim CEO and Business Partners today.