The board's strategic ace in the hole: Interim CEO as catalyst for profit and change

Interim Management as a Risk Mitigation Strategy and the Financial Analysis

Interim employment serves as an excellent tool for risk mitigation and a trial period. In the event of sudden market changes or a crisis, the interim leader’s flexibility is crucial. Lars Hygrell highlights the independence of the interim consultant:

“The advantage is that they aren’t bound by preconceptions or loyalties to past decisions. When it comes to tough decisions, the approach is objective rather than personal. Bringing in an interim consultant on a temporary basis leads to a more pragmatic approach.”

The cost of an interim CEO is rarely an issue in a business-critical role. Lars is clear about the financial considerations: “Few boards see cost as a problem. At the very least, the upside is so much greater. Otherwise, you don’t have the right agenda.”

Interim executives are often specialists. Their specialized expertise is invaluable when internal expertise is lacking, such as during digital transformation or when entering new markets. Hygrell emphasizes what the board values most: “The most important factors the board looks for are a track record of success, a clear understanding of transformation in various roles, and documented experience. These factors are more important than just specific industry knowledge, which is often a mandatory requirement in the client’s initial requirements profiles.”

Sustainable Transition and Future Prospects

For a sustainable transition, the board must be deeply involved in the interim consultant’s processes. Hygrell emphasizes the importance of the board’s knowledge: “There is a risk that a new permanent CEO might begin to question decisions. We must therefore ensure clarity and have a knowledgeable board of directors.”

Lars Hygrell sees a clear path forward: “The past five years have shown that we live in a rapidly changing world. This is driving an increased demand for these types of solutions in the CEO role. We’re seeing greater acceptance and understanding of the benefits of bringing in interim leadership expertise when needed.”

Interim leadership is no longer an emergency brake, but rather a strategic accelerator that enables boards to act quickly and maximize returns.

Strategic Advice to the Board of Directors

To help boards navigate the selection and use of interim leadership, we have compiled Lars Hygrell’s key insights, broken down into the two critical phases: the decision and the appointment.

Why Choose an Interim CEO?

• Use objectivity to make quick and tough decisions: Use the interim CEO’s independence to quickly implement necessary, often pragmatic changes without being hindered by historical loyalties.

• Focus on ROI rather than cost: Think of the interim fee as an investment in risk mitigation. In a business-critical role, the financial benefits of rapid problem-solving and increased returns far outweigh the actual consulting cost.

• Securing Specialized Expertise for Transformation: When a company faces specific challenges, such as digital transformation or market expansion, an interim CEO provides access to specialized expertise that is often lacking internally.

Things to Consider Before and During the Hiring Process

• Prioritize track record over industry experience: Look for a proven ability to lead transformation and change. A leader’s approach to change is often more valuable than specific product knowledge.

• Ensure the board's commitment to a sustainable transition: To avoid decisions being questioned once a permanent CEO is in place, the board must be well-informed and deeply involved in the processes led by the interim leader.

Read also: For further insights into interim leadership, read our interview with Senior Director Lena Arrelöv.