The Myth of Pure Vacancy Bridging in Interim Management

A recent report by the Institut für Mittelstandsforschung (IfM) confirms a significant rise in the use of interim managers, particularly in small and medium-sized enterprises (SMEs). According to a survey by Robert Walters, half of all interim management appointments serve to bridge vacancies. Thomas Krentscher, Manager of Interim Management at Robert Walters, shares insights on the motivations behind employing interim managers and advocates for a project-based approach.

Utilization of Interim Managers for Vacancy Bridging

According to Krentscher, two main scenarios create the need for an interim manager to bridge vacancies:

1. Change of Ownership

"When a company undergoes a change of ownership, it often leads to significant uncertainty among the workforce, especially following economic difficulties. The new management's task is clear: post-merger integration aimed at creating synergies and improving profitability. This phase is characterized by a high rate of change, requiring the creation and implementation of new structures and processes. These new tasks must be managed alongside day-to-day business, increasing uncertainty due to the heightened workload. In this tense environment, even long-serving, experienced employees may leave. These losses can often only be compensated by interim experts, who are immediately available for project assignments and have successfully handled similar situations before. Their assignments should emphasize knowledge transfer from previous integration projects, ensuring smoother transitions for permanent successors " says Krentscher.

2. Inadequate Structures and Systems

"Another scenario requiring an interim manager to bridge vacancies is inadequate structures and flawed system landscapes. Delayed implementation of effective systems leads to non-value-added workloads. Media disruptions or poor interface management necessitate high levels of manual labor that could be avoided through automation. These tasks, though relatively simple, require significant concentration and expertise. Simple does not mean unimportant. Highly trained specialists must often carry out these tasks. Incorrectly transferred data results in time-consuming troubleshooting that only trained personnel can handle. Incorrect data prevents drawing accurate conclusions, increasing pressure and causing frustration. Persistent inadequate structures and high manual workload often lead to employees desiring change. Repetitive activities requiring high concentration but offering no added value should be avoided to prevent specialist turnover, necessitating interim managers to bridge vacancies.

Advantages and Challenges of Interim Management

Employing interim managers to bridge vacancies can offer significant advantages to companies. The interim manager's project assignment should include optimizing systems and interfaces. It is common for the interim manager to significantly shorten or eliminate entire process chains. As a result, the requirements for the vacant position can change, leading to greater added value and more employee satisfaction once a permanent replacement is found.

The challenge for interim managers is to manage day-to-day business and project assignments immediately and in parallel. Besides technical specialization, the focus is on change and project management, as well as process and digitalization consulting. Day-to-day business naturally takes priority for the customer, but the ROI comes from the clearly defined project order," explains Krentscher.

Preventative Strategies Over Crisis Management

The other 50% of interim mandates occur in companies that recognize the need for projects early on. "These companies are working preventively against the skills shortage. It is crucial for companies to react to warning signals early, continuously address innovations and technological developments, and ideally utilize interim managers on a project basis," notes Krentscher.

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