IN AN ORGANISATION, the Chief Executive Officer or the CEO is of paramount importance, as he is the one who leads the company towards a direction, in pursuit of set objectives. He assumes the role of the face of the company, guiding it with his proficiency, expertise and sometimes, experience. However, in certain circumstances, a company is left bereft of the guide and leader or requires another such person to assume the mantle and take over the role.
This phase that the company experiences is compensated by appointing a new temporary CEO, who is called on to occupy the seat at the top. He usually works for a period ranging between three months to a couple of years, during which he provides the company his business acumen and know-how. The contribution made by the interim CEO, during this short period of time is called interim management.
When does a company require employing the services of an Interim CEO?
To fill in vacancies in senior positions, due to retirement or long leaves.
Due to the rapid growth of a company, new CEOs are appointed, to sustain the progress achieved
When a company experiences losses and its growth is curtailed, new CEOs are appointed temporarily, with the motive to turn the fortunes of the company.
Companies hire CEOs for a specific time period, to help alter the momentum of the company, in accordance with the current trends and phase of the market scenario.
When a company requires a person with certain of specialisation, he could be appointed as the interim CEO
When the company has developed an expansion program, it requires personnel to head offices in the regions where the offices are established
It was in the early 90s, that this system of appointing short-term company heads was adopted by corporates. However, after a period of initial scepticism and hesitation, and with the boom of companies and MNCs, the market has embraced the concept and this new trend has caught up with most organisations.
