When companies operate under pressure – during a transition, crisis, or strategic push – they rarely have the luxury of a six-month hiring cycle or a careful handover. Often, a bridge is needed. That’s when interim leadership becomes not just the smartest move, but the only viable one.
Hoping an internal solution will emerge, or fearing that an interim hire might “send the wrong message,” often leads to inaction. Meanwhile, teams are told to “manage through it” — until momentum stalls, decisions pile up, and confidence erodes.
This is your field guide. What to expect, what to avoid, and how to set interim leadership up for real impact from day one.
When should you consider interim leadership?
Interim executives are not placeholders. They’re catalysts. Stabilizing teams, executing critical initiatives, and unlocking momentum.
There’s growing awareness that interim leaders are not just a last resort. The best results come when they’re brought in as a deliberate choice, not a reactive fix. Recent insights from Korn Ferry confirm this shift: more companies are now incorporating interim executives into their broader talent strategy – not just to fill gaps, but to solve specific challenges with speed and precision.
Here are common scenarios where interim executives create real value:
- Crisis or transition: sudden leadership departures, financial pressure, or underperformance.
- Strategic execution: major transformations, restructuring programs, or post-M&A integration where focus and speed are critical.
- Performance push: revitalizing a struggling commercial function, fixing broken operations, or realigning teams after a performance dip.
- Scaling up: entering new markets, launching new business units, or preparing for accelerated growth.
- Founder (or owner) needs hands-on support: when a founder hits the ceiling of their own capacity or steps into unfamiliar territory, they may need an experienced operator to stabilize or scale without immediately giving up control. A watch-out here, interim management shouldn’t be mixed by the founders who run a family company with external management. This topic we have tackled in this blog post.
- Pre-hiring bridge for a future executive: when a permanent hire is in the pipeline but business can’t wait, an interim can “clear the path” for their successor and support the hiring process to find the right long-term match.
- Sensitive or high-stakes initiatives: complex negotiations, exits, stakeholder conflicts, or strategic pivots that require a neutral, experienced hand.
In each of these moments, interim executives do more than just fill a gap. They carry the weight of execution, absorb pressure from the teams, and move the business forward with clarity and pace.
What makes interim leadership so effective?
Interim leaders bring a unique mix of speed, independence, and focus — exactly what’s needed when time is tight and the stakes are high:
- Fast to deploy: ready in days, not months as they adapt quickly and start delivering without waiting for perfect conditions.
- Execution-driven: little internal politics or long-term positioning, just clear decisions and fast progress.
- Fresh perspective: unbiased by internal habits, they bring insight from other industries and transformations.
- Flexible structure: clear scope, defined exit – no long-term cost or hiring complexity.
- Stabilizing force: they give boards and teams immediate leadership and a path forward.
But there’s a catch: interim management only works if you set it up right.
Even the most seasoned interim leader will underdeliver if the context is flawed (or worse, an illusion), the environment is unclear, or the mandate is fuzzy.
Let’s start with a common misconception: Interim executives aren’t trying to stay forever. They don’t want the job long-term. They thrive on focused missions and time-bound objectives. And they measure their success by impact, not tenure.
But for them to succeed, you need to set it up right from day one.
- Define the boundaries clearly: what needs to be done, by when, and under what conditions.
- Agree on the decision rights: what’s within scope, and what needs alignment.
- Put a motivation system in place: interims should be well-paid, but variable compensation linked to outcomes should be the way to go.
Many experienced interims are open to a 60/40 fixed-to-variable split, and 80/20 should be the minimum. Of course, this only works if clear, measurable objectives are in place — otherwise, bonus discussions become a source of tension instead of alignment.
Importantly, performance bonuses are increasingly paid out monthly or quarterly. The old model of “end-of-mission bonuses” is losing ground as it delays feedback, creates ambiguity, and misses opportunities for course correction.
Interim executives don’t need a long runway. They need truth, trust, and a framework that respects the speed and accountability they bring.
5 essentials for a high-impact interim appointment.
Based on what we see across companies, here’s when interim leadership really works:
1. Define the mission sharply
Set clear 90- and 180-day objectives. What needs to be achieved? By when? Under what constraints? Clarity on the what and why is the single most important driver of success.
2. Choose for adaptability, not just experience
The best interims don’t need weeks of onboarding. They’re used to messy situations and fast starts. But even they can’t operate blindfolded.
What they need is truthful context, the real story behind the numbers, the internal dynamics, and the risks. The more you hide, the more you lose.
3. Accelerate intake
Intake is not full/formal onboarding but remember that even the strongest profiles will burn precious time if they need to uncover the real situation or must negotiate authority mid-mission. Give them two things right: A clear and honest briefing, to avoid wasting time or heading in the wrong direction and empowerment to act providing clarity on decision rights, guardrails, and reporting.
4. Communicate the appointment clearly
Internally, explain why the interim is here, what they’re expected to do, and how others should work with them. Lack of clarity leads to friction. Transparency creates alignment.
5. Link incentives to outcomes
Interims should be well-paid but variable compensation tied to measurable results is essential. More and more, performance bonuses are structured on a monthly or quarterly basis. This aligns interests, drives focus, and allows for real-time course correction. Bonus structures only work if expectations are defined and agreed from the start.
Interim leadership isn’t a stopgap, it’s a strategic tool.
Interim executives bring clarity, speed, and execution power when leadership can’t wait. But they only deliver if the setup is right: the mission clear, the trust established, and the team aligned.
At h23, we support companies through transitions, transformations, and performance resets – including sourcing and integrating the right interim leadership to move the business forward.
If you’re navigating a high-stakes moment, don’t wait until things break!
Bring in the right leader. Set them up to deliver. And give them the mandate to act.
