Interim Management

Interim management is the temporary arrangement of management resources. In the Czech Republic, interim management is often synonymous with crisis management, but there is much more to it than that. For decades, it has proved its worth whenever an experienced and independent professional with skills and experience in resolving complex situations is needed.

Management’s ability to run a company efficiently, flexibly and decisively and to combine prudence with far-sightedness and strategic thinking cannot be taken for granted. Many companies face problems due to incorrect or inadequate responses to internal or external factors.

TARPAN Managers specialises in interim management and consulting. We created a platform in a field previously fragmented between individual professionals. We support clients in diverse fields to get through specific situations and also over the long term in various phases of a company’s life. We aim to be both a short- and long-term partner.

What is Interim Management and its history?

Modern interim management dates back to the 1970s in the Netherlands. Long notice periods made it difficult to fire managers, so they were hired for fixed periods to perform specific tasks. Throughout Western Europe, interim management became a standard tool for bridging any gaps in skills and experience. In the United Kingdom, interim management accounts for approximately 20% of all management positions and is routinely used in the United States and Australia. There are now tens of thousands of interim managers on the European market, covering all sectors and specialisations.

Interim management is a relatively new phenomenon in the Czech Republic, but it is becoming more important due to changing economic conditions and business models and fluctuations in target markets. It has also become more relevant as the old generation of company owners gives way to a new generation, and in the context of high investment levels.

Who is Interim Manager?

An interim manager is an independent professional who has extensive know-how of and experience with managing companies and projects. Interim managers take the place of senior management or as a project manager for complex and difficult assignments. An interim manager has good people skills and quickly integrates into the company’s team.
An interim manager is usually part of senior management, or answers directly to it, and works according to a specific plan with clearly defined tasks and milestones. The results are therefore measurable, and the manager’s remuneration is usually tied to achieving the agreed targets.

At TARPAN Managers, we always provide our clients with senior interim managers who can effectively cope with complicated problems because they have previously resolved similar situations.

Why Interim Management?

Interim management is increasing in popularity is due to its many benefits. The principal benefit is the interim manager’s high level of expertise, meaning that major changes are implemented effectively. The financial considerations are also relevant.

As a company develops, it encounters situations that only arise a few times during its existence: a major acquisition, a merger, the entrance of a new investor or the sale of the company. Although these situations are critical for the fate of the company, as a rule its managers do not have sufficient experience. When they tackle these problems, it is usually for the first time, which will obviously be reflected in the quality of their decision-making.

In contrast, an interim manager is a professional who specialises in resolving precisely the problems that companies face at key milestones in their development. Interim managers will have encountered such situations many times during their careers, so they can predict how things will unfold and know exactly what steps must be taken. Thanks to their experience, they will have a detached, unemotional view of a particular situation and can take systematic and decisive action. It is rare for someone from a company’s management to have this perspective, and this is why the services of an interim manager are so valuable.

Naturally, the services of specialists with such unique know-how come at a high price. If a professional with this level of experience were to become a permanent part of management, it would make great demands on a company’s budget. This is another benefit of interim management—an interim manager joins a company for a limited period, often framed in terms of achieving specific objectives, and remuneration may be directly tied to achieving those objectives. For the client, interim management is financially advantageous.

When to use Interim Management?

The way a company is managed has a fundamental influence on its functioning and value. During major changes, a company needs the decisiveness only an external professional can bring. Interim managers can form an undistorted and rational view of the situation. This is particularly important in situations such as a change of ownership, the entry of a new investor, raising external finance or forging valuable business partnerships.

External manager assistance can also be valuable in more routine situations, such as extending production, optimising the product portfolio or revising the business model. An interim manager’s services are also desirable in times of crisis or imminent bankruptcy.