Interim CEOs (or Presidents or Executive Directors according to the organization’s naming convention), by their definition, serve during a period of transition for an organization.  And if the outgoing leadership change is unplanned, it may also be a time of upheaval.  Volunteer board members are suddenly thrust into more details around financial and programmatic management of the organization, community and donor relations, and retaining staff.  Even with a well thought out succession plan in place they are likely to need managerial leadership to bridge the old and new CEOs’ administrations.  However, the Board’s relationship and expectations for an Interim CEO will likely be different than their outgoing or incoming CEO.  As a given, it’s important for the Board to select a seasoned manager who knows something about serving as an Interim; ideally someone who knows the industry, and has had “C” level experience.

Below are thoughts on what a Board should expect – and what they should not expect – from an Interim CEO.

What to Expect

  • The Board should expect a high degree of communication from the Interim. This will take a greater time investment and most likely require the volunteers to delve more deeply into organizational details than they are used to.  However, the Interim will want to make sure to be executing the will of the Board and this requires frequent check-ins.
  • The Board should expect an Interim who can confidently manage the organization’s financial matters. Competent handling of financial details such as cash flow, receivables, payables, investments, etc. are critical for smooth continuity and the Board should expect a seasoned hand with experience in this area.  This is also an opportunity for a fresh set of eyes to review bank resolutions, approved signers, and internal controls for the organization.
  • The Interim CEO has the challenge of managing the organization’s staff. Times of uncertainty such as leadership changes are potentially disruptive for staff who now wonder if organizational structure, staffing, or priorities will be changing – and if they will have a job.  The Interim needs to be a steadying hand here, but not promise anything which cannot be delivered.  That is, no blanket statements about how staff structure and responsibilities will not be changing.  The Interim doesn’t know what the next CEO may do and the quickest way for an organization to lose the trust of staff is making promises which cannot be kept.
  • The Interim must assure that the organization’s operations continue without interruption. The Interim will need to rely on staff to provide content expertise.  The Interim’s primary role is assuring that staff don’t have any impediments to completing their job, i.e. “running interference” for them.  This requires trust to be built quickly so staff will share potential roadblocks to the Interim.
  • The Board should expect some help from the Interim CEO in the transition to the new CEO. Of course, access to the former CEO is helpful if appropriate and available, but that is not always the case.  During the Interim’s tenure careful notes should be kept (as well as critical emails, correspondence, board and committee meeting notes, etc.) which can be used in the next transition.  Often it’s this “current” history which is most important to the incoming CEO as it relates to immediate issues to be dealt with.
  • Perhaps most importantly, the Board should expect the Interim to be a steady hand on the tiller for the organization. There will be uncertainty and questions with staff, donors, partners, and the community.  The Interim needs to be available to answer questions (even if the answer is “we don’t know yet”, or “that will have to be determined”).

 

What Not to Expect:

  • The Interim CEO is not responsible for long range or strategic planning. In fact, if the organization is going through a planning process it often makes sense to put this on “pause” until the new CEO is in place.  The next leader is going to have a large stake in future plans and should have the opportunity to experience the development of these plans.
  • The Board should not expect a “quick fix” to all the organizational shortcomings. There may be some issues which will come to light and are easily addressed.  However, the tenure of the Interim is by its nature short and there “fixes” may require changes which have long term impact on policy or operations that are best left to the incoming CEO.  However, any issues which surface should be documented as part of the hand off to the new CEO (perhaps with recommendations on corrective actions).

 

An Interim CEO will often come into the position with different perspectives and experiences.  In fact, there may be an organizational “bump” from the new ideas infused by the Interim.  New ideas will help develop new approaches.  However, a seasoned Interim CEO recognizes that there is a learning curve and it takes time to understand the reasoning behind certain practices.  This means the Interim will tread lightly and go slowly in changing long term policy.  It is important to address immediate situations and solve problems with the understanding that the Incoming CEO may want to return to address the issue and/or set a policy around it.

Few people like change and the ambiguity which comes with change.  The Board should be expecting these uncertainties as a result of the leadership changes.  However, with reasonable expectations and Board support, an Interim CEO can help the organization navigate these rough waters and transition to the new CEO.