Interim as risk management: An empty chair comes at a price – the strategy for ensuring continuity

The real cost of a vacant management position

The cost of a vacant management position extends far beyond lost production. For certain business-critical roles, an immediate absence poses significant risks to operational continuity and finances.

So which roles are most vulnerable? Martin Edqvist explains that absenteeism hits core operations the hardest.

“Examples of roles where immediate absence can lead to the highest costs for a company are in operations, supply chain, production, and logistics. For any manufacturing company that risks coming to a complete standstill, these positions are absolutely critical. The same applies, of course, to a CFO whose absence can create immediate financial turmoil and risks.”

Hidden costs often have a significant impact on a company's bottom line and arise in several areas – from lost revenue to reduced internal efficiency.

The greatest risk is linked to revenue. “If a commercial manager suddenly disappears, the costs of missed business opportunities can quickly become significant, not least because you risk losing your largest customer accounts.” Martin Edqvist emphasizes.

He gives an example: “I helped a client find a commercial manager when they were at risk of losing two of their top five customers. When customers don't feel sufficiently valued, there is a risk that they will go to other providers. In this case, it was interim measure directly decisive for retaininga secure income.”

In addition to lost revenue, a vacancy can also have internal effects. These can include reduced earnings or lost production, an impact on employee engagement, and a slower pace of work. Allowing internal managers to shoulder double responsibilities for extended periods often leads to higher workloads, which can negatively affect engagement and thus the organization's overall performance. Delays in strategic initiatives and varying delivery quality are also factors that can affect the company's results.

Interim as preparedness and rapid response

A critical leadership position requires immediate attention, as delays in the appointment process pose an increasing business risk. When time is of the essence, the primary task is to maintain control of the business, and in such situations, it is necessary to quickly secure the expertise that can restore control and minimize risk for the entire organization.

“A leading position requires immediate attention, and every company must have a contingency plan in place.” says Martin Edqvist, continuing: “The biggest pitfall is trying to cover up with ‘bunsuitable solutions’. This is rarely sustainable and can result in reduced delivery quality, morale, and ultimately financial consequences. It's about being prepared to make the right decisions immediately.”

Appointing an interim manager is primarily about maintaining control of the business. As soon as you lose a key manager, you lose momentum and direction.

Martin Edqvist highlights a concrete example of successful risk minimization: “I had an interim data protection lawyer working for an expanding international company. The entire assignment was essentially a form of risk minimization—ensuring compliance with laws and regulations. Without the interim consultant's efforts, our client would have risked incurring heavy fines. The assignment was so successful that the consultant's contract was extended and he is now a full-time employee in the client's own organization. This shows how external interim expertise can become a permanent solution and a strategic boost to competence.”

The strategic council for CEOs and boards of directors

Using interim solutions is essentially about being proactive, not reactive. It is a shift in perspective that involves integrating strategic preparedness for future and inevitable skills needs directly into the business plan. With this insight, Martin Edqvist's reasoning leads to a clear conclusion:

“My most important advice to CEOs and boards is to view interim solutions not just as a stopgap measure, but as a strategic resource in your talent planning.” concludes Martin Edqvist. “We are dealing with people – and when it comes to staff and leadership, the question is never if a vacancy will arise, but when. Be prepared. Making a ‘cost-conscious’ decision in a business-critical time crunch is often the most expensive thing you can do. Knowing how to act right from the start is the real business value.”