What is Interim Management?

An interim manager is a proven specialist or executive who is brought into a company for a limited period of time or for the duration of an interim project in order to take on an important management role and play a leading role in resolving a strategic or operational challenge. The main task of an interim manager is to close professional or personnel gaps at short notice and to set up the entire company or individual business areas in a future-proof manner.

An interim manager usually takes on leadership and management tasks in a company for a limited period of time. The role of a temporary manager is diverse and depends on the specific needs of the client company. Typical interim manager tasks include

• the restructuring and reorganization of companies - usually with the aim of increasing efficiency and reducing costs,
• the management of changes in companies, such as mergers, takeovers, the introduction of new processes or a realignment of the corporate strategy,
• the management of strategic projects that require special expertise, such as the introduction of new technologies, market entries or expansions,
• the management of corporate crises in the event of financial bottlenecks or operational problems,
• the analysis of business processes to identify and close any weaknesses in order to increase the company's competitiveness,
• the further development of managers and the composition of functioning teams as well as
• the bridging of vacancies, for example in the event of unexpected departures in management or sickness absence of managers.

Good interim managers have years of experience and extensive specialist knowledge, act results-oriented and implement pragmatic solutions quickly. Thanks to their strong leadership skills and great decisiveness, they can provide targeted support to companies in critical situations. Thanks to their flexibility and adaptability, interim managers quickly adapt to new environments.

In addition, external interim managers bring an objective perspective and always act with high integrity. Effective goal and target group-oriented communication and the ability to motivate teams are also important characteristics of successful interim managers.

Not least, interim managers usually have strong professional networks that they can draw on if necessary. To summarize: First-class interim managers have the necessary expertise, the experience on offer and the ability to deliver results in the shortest possible time and gain the trust of all parties involved.

READING TIP: In our blog, we explain which ten qualities characterize good interim managers.

The amount of the interim manager's daily rate depends primarily on the qualifications, the complexity of the project and the duration of the assignment. As a rule, the costs for experienced interim managers range from 800 to 1,800 euros per day. The average interim management daily rate is between 1,200 and 1,400 euros. When an interim professional is placed by an interim management provider, the provider usually receives between 25 and 35 percent of the agreed daily rate as commission. Some interim management providers already charge a fee for introducing candidates - we do not.

READING TIP: In our blog, we explain what an interim manager costs compared to an executive search.

Interim management positions cover a wide range of management and specialist functions. Typical interim management positions include the following:

• CEO/management: Interim CEOs temporarily assume overall responsibility for the company and manage it operationally and strategically.
• CFO/finance management: Interim CFOs control financial management, optimize liquidity and support restructuring or M&A processes.
• CHRO/Human Resources Management: Interim CHROs manage human resources, implement change processes or lead strategic realignments in HR.
• CIO/CTO/IT Management: In addition to IT strategy, they are also responsible for the IT infrastructure and lead digitalization projects or IT transformations.
• CMO/CSO/Marketing and sales management: Interim managers in these roles focus on increasing sales, expanding the market and optimizing sales and marketing strategies.
• COO/operations management: Interim COOs manage operational business processes and optimize the efficiency of processes, often in times of restructuring or production increases.
• CDO/head of digital strategy: Interim CDOs lead the digital transformation of a company and are responsible for the implementation of digitalization strategies.
• Project management: Specialist interim professionals lead large, often critical projects, such as the introduction of new technologies, expansions or restructuring.

Interim management offers companies numerous advantages. Temporary managers are available at short notice, bring specialized expertise and work in a results-oriented manner. They are always a flexible and needs-based solution when trend-setting projects need to be implemented within tight schedules or gaps within management need to be filled quickly. Interim professionals take an objective perspective due to their independence and focus on quickly achieving sustainable results.

By using interim managers as a strategic resource, companies increase their competitiveness and set the course for long-term success. As interim managers are independent service providers who bear the entrepreneurial risk themselves, they work on the basis of daily rates. This makes the costs of the assignment calculable from the outset - especially as companies do not enter into any long-term commitments.

READING TIP: In our blog, you can find out why flexible workforce management is the strategic resource of the future.

Relying on interim management always makes sense when there is a risk of high opportunity costs - in other words, when doing nothing would be even more expensive for the company. With this in mind, there are the following predestined applications for interim management:

• Special projects: If a temporary, specialized project needs to be implemented in a targeted manner - digital transformation, an M&A project or international expansion - interim professionals provide valuable support.
• Change management and turnaround: In times of change or in the event of a turnaround, interim managers manage the change processes and get the company back on track.
• Corporate growth or restructuring: Companies that need to grow quickly or realign themselves benefit from the experience of an interim manager who implements the right structures and processes.
• Crisis management: In the event of corporate crises, restructuring or financial bottlenecks, interim managers quickly take the appropriate measures to stabilize and reorganize the company.
• Bridging management gaps: If a manager is unexpectedly absent, e.g. due to illness or resignation, an interim manager takes over. a temporary manager takes on this role and ensures continuity.
• Seasonal or temporary challenges: Interim management is suitable for companies that need additional expertise at short notice, for example in the event of seasonal fluctuations or temporary projects, without tying up staff in the long term.

Interim management makes sense in many industries and markets - especially where short-term specialized expertise is required. In industry and production, interim managers are often used for restructuring and efficiency improvements. In finance, they provide support with M&A processes and financial reorganizations. The IT and technology sector benefits from their expertise in digital transformations, while interim managers in the healthcare and pharmaceutical sectors help to implement regulatory requirements.

Interim managers also play a key role in optimizing processes and introducing new technologies in the trade, logistics and energy and environment sectors. Interim management can also be used in all other sectors when major challenges need to be overcome - whether they are strategic, structural, operational, financial or personnel-related. It is common for corporations and SMEs as well as production and service companies with annual sales of 50 million euros or more to work with interim professionals on full-time mandates. The turnover limit for part-time mandates is around 20 million euros.

A typical interim mandate usually lasts between six and twelve months. However, the duration can vary depending on the needs of the company and the complexity of the task. In some cases, particularly with specialized interim projects or major restructurings, a mandate can last up to one and a half years, while short-term assignments may be limited to a few months. As a general rule, the interim manager remains with the company until the contractually defined project objective has been achieved. It is usually possible to extend an interim project.

The basis for hiring an interim professional is an interim manager contract. There are three different types of interim manager contract:

• Service or consultancy contract: The service contract is the most frequently used form of contract in interim management. In it, the commissioning company and the interim professional define more general project objectives at the start of the mandate. Once onboarding has been completed after around two weeks, both parties then agree on a specific project plan, which includes milestones and targets as well as measures. The interim service is usually billed on a daily rate or hourly basis. The interim manager acts autonomously and independently of the company's operational processes. The external specialist or manager bears the economic risk of their work themselves - from loss of earnings in the event of vacations and illness to social security.
• Transfer of employees: Only those interim management providers that have the relevant approval from the Federal Employment Agency - such as Deutsche Interim AG - are permitted to offer temporary employment. In contrast to the service contract, the temporary employment contract for interim managers also covers activities that are subject to instructions and are part of the company's operational processes. Interim management via employee leasing is often particularly attractive for companies. This is because the costs and risks for vacation, illness and social security are borne by the interim management provider.
• Fixed-term employment contract: Interim projects with fixed-term employment are the exception in interim management. Temporary employment is a contract that the company agrees directly with the candidate placed by the provider. Direct authority to issue instructions and integration into the company's operational processes are therefore possible - just as with other employees. The costs and risks for vacation, illness and social security are borne by the company as the employer.

Confidentiality and data protection are guaranteed in interim projects through various measures. Interim managers sign a non-disclosure agreement (NDA) before the start of the project, which prohibits the disclosure of confidential information. They undertake to comply with the General Data Protection Regulation (GDPR), which ensures the legally compliant handling of personal data and sensitive company information. In addition, they are only given access to the data they need for their work. Communication takes place via secure channels. Contractual clauses also regulate data protection and the handling of information after the end of the project - including the return or deletion of data

Companies generally do not have to insure interim managers as they are self-employed service providers. Interim professionals bear the entrepreneurial risk themselves and are responsible for taking out suitable interim manager insurance, such as professional indemnity insurance or D&O insurance (Directors and Officers Liability Insurance). These interim manager insurance policies cover professional risks and potential liability claims that could arise during their work on an interim project. However, it can be useful to include clear provisions in the interim manager contract regarding the required insurance policies to ensure that sufficient insurance cover is in place.

The most important difference between interim management and management consultancy is the active role of the interim manager. While management consultancies mainly carry out analyses and make strategic recommendations, interim managers play a key role in the operational implementation of the developed strategy. Temporary managers are integrated into the company, often in leading positions. Interim managers work closely with existing management and employees and make decisions. In this way, they drive sustainable change in the company and ensure that the planned results are achieved.

READING TIP: In our knowledge article, we explain the differences between interim management and management consulting in detail. Read now!

Interim management differs from other forms of recruitment in its temporary, flexible and highly specialized nature. In contrast to traditional permanent employment, interim managers are hired for a limited period of time to manage a specific interim project. They are usually immediately available and bring extensive management experience as well as in-depth specialist knowledge that optimally meets the specific challenges of the respective company.

In addition to the services of an interim management provider who sources suitable interim professionals for companies, there are other recruitment methods in the executive sector, such as Active Sourcing (companies proactively search for candidates and contact them), Active Placement (recruiters contact companies and present suitable candidates for vacant positions based on profiles) and Executive Search (headhunters search for candidates on behalf of companies):for senior management positions).

READING TIP: In our blog, we describe various recruitment methods - including their advantages and disadvantages.

Yes, interim professionals can be deployed internationally to help companies overcome global challenges or implement specific projects in different countries. They bring the necessary flexibility and experience to adapt quickly to different cultures and business practices. Temporary managers know, understand and take cultural differences into account. This allows them to lead (international) teams effectively and achieve convincing results.

In addition, it is important that clients are familiar with the legal framework in the respective country, such as national labor laws and tax regulations. Thorough preparation and clear communication between the client and interim manager are crucial to the success of an international interim project. Interim management providers act as a reliable partner in all of this, supporting both companies and interim professionals as required.

Of course, it is an advantage if interim professionals share the values of the client company. But this is not a prerequisite for successful interim projects. Interim managers come to go. They have a clearly defined assignment, which they fulfill within the framework of the temporary mandate. The urgency of the task and the interim manager's problem-solving skills are more important than the corporate cultural fit. What's more, the interim project is usually already successfully completed before any interpersonal disagreements arise

The success of an interim project depends on several external factors. Clear objectives and a precise task definition are crucial so that the interim manager can work in a targeted manner. Support from management and open communication across departments are important in order to make decisions quickly and involve the workforce. In addition, interim managers must have full access to important resources such as information and employees in order to be able to work effectively. Management's willingness to put the status quo to the test and make far-reaching changes also contributes to success.

Successful interim managers usually have many years of management experience as well as well-founded qualifications, industry expertise and additional qualifications such as project management certifications. Particularly important is experience in crisis and change situations, such as restructuring or turnarounds. Strong leadership skills and soft skills such as communication skills and adaptability are also essential.

Interim managers must be able to take on responsibility quickly and lead teams effectively. They should work results-oriented, implement solutions pragmatically and achieve measurable results in a short space of time. A good network can also be helpful for accessing additional resources or expertise if required.

The selection of a suitable interim manager takes place step by step. First, the interim management provider determines the company's exact requirements and creates a requirements profile. The provider then searches its database for suitable interim professionals who are available at the right time. In joint interviews - the provider acts as a link between the client and the interim manager - they work out which candidate best meets the requirements and fits the company. Last but not least, the interim management provider drafts the contract and is also available to both parties as a point of contact during the mandate

An interim management provider supports companies in the quick and targeted placement of interim managers. First, the interim management provider analyzes the company's specific requirements and searches its extensive database for suitable interim professionals. If this is unsuccessful, the interim management provider expands the search to its broad network of highly qualified managers. Through careful screening, it ensures that only candidates who fit the role both professionally and personally are shortlisted.

Providers for interim management in Germany also moderate contract negotiations, clarify legal and organizational issues and ensure transparent collaboration. The interim management provider is also available as a point of contact during the mandate to support the course of the project. This ensures smooth collaboration and successful project implementation.

A professional provider of interim management is characterized by its speed and precision in the placement of interim managers. If companies are looking for experienced interim professionals, the candidates must be available quickly and meet the client's individual requirements in the best possible way. This matching requires detailed knowledge of the interim professionals' professional qualifications, wealth of experience and availability.

As an established and well-networked provider of interim management in Germany, Deutsche Interim AG has an extensive database of several thousand accredited specialists and managers. We have not only checked the suitability of the interim professionals in advance of their inclusion in the database, but also know many of them personally. Our senior consultants draw on their experience and market knowledge and use cutting-edge technologies for the pre-selection process. In this way, we not only take into account special requirements on both sides, but also ensure a fast and successful interim manager placement.

Working with an interim manager is structured and goal-oriented. At the beginning, both the client and the interim professional define clear goals, associated tasks, measurable results and a realistic schedule. The interim manager quickly integrates into the company and takes on an active leadership role. He or she is responsible for implementing the measures and works closely with the existing management and relevant stakeholders.

Regular communication, transparent reporting and an open feedback culture are crucial and ensure the progress of the project. At the end of the mandate, the interim manager ensures a frictionless transfer of knowledge so that the company can continue to implement the changes sustainably.

Interim professionals take on a temporary leadership role in the company and are largely responsible for the implementation of important projects or crisis management. They see themselves as pragmatic implementers who fill management gaps, lead restructurings or provide support as experienced advisors in challenging situations. As change agents, they also drive change processes and implement new structures. In addition, they often act as mentors for existing teams and pass on their knowledge to bring about positive change, achieve the goals set and strengthen the company in the long term.

Whether the interim manager's performance can be evaluated depends on the task and the content of the project plan. Ideally, this should also set out the progress to be achieved. For example, if the interim project consists of relocating a production plant within a certain period of time, success can be evaluated transparently using pre-defined KPIs. However, when it comes to transforming the mentality within the HR department, soft evaluation criteria are needed that are difficult to measure.

It makes sense to set goals and suitable key figures at the start of the interim project. This allows the company to continuously check whether the interim manager is achieving the defined milestones within interim projects and achieving the desired results on time and within budget. The quality of implementation and the sustainability of the implemented measures also play a key role. The company also assesses the quality of the team's internal collaboration by obtaining feedback from stakeholders. Last but not least, it must be ensured that interim managers ensure a complete transfer of knowledge so that the core workforce can continue the implemented measures independently after the interim project has been completed.

Clear target agreements are crucial to ensure that interim managers achieve the specified goals. These should always be based on the task to be completed - both qualitatively and quantitatively. Both hard and soft KPIs help to make the performance of interim professionals measurable. Continuous progress reviews, transparent reporting and open communication between the interim manager and the company help to monitor progress in the interim project.

Regular feedback loops serve to identify potential deviations at an early stage and - if necessary - to correct them. In principle, the following applies: the interim manager's job is done when they can hand the project over to good (internal) hands or when they have successfully completed the project. Some interim professionals remain available to their client as a senior advisor after the end of the project, keeping an eye on whether the company is actually continuing with the implemented measures

The risks of hiring an interim manager include possible incompatibility with the corporate culture, a lack of integration into existing teams, unexpected cost increases and the potential danger of not achieving the set goals within the planned timeframe. In addition, an over-reliance on external expertise after the departure can lead to knowledge gaps within the core workforce. It is important to consider these risks in the selection process and - in consultation with the interim management provider - to proactively counteract them from the outset with suitable measures.