What is interim management?Temporary managers in focus

Interim management (IM for short) is a specialized form of corporate management. Experienced temporary managers are deployed to support companies with specific challenges or to accompany change processes. Interim managers have extensive specialist knowledge and many years of experience in various sectors, which enables them to act quickly and effectively.

Synonyms for interim management:

Temporary management
Management on call
Transition management
Interim management
Temporary management
Interim management

The term ‘interim manager’ is not legally protected. In principle, therefore, any manager temporarily deployed in a company can call themselves an interim manager. However, the umbrella organization Deutsches Interim Management e.V. (DDIM) only defines managers with proven long-term experience at first or second management level as interim managers.

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History of the emergence of interim managementA journey into the 1970s

The idea of filling management positions with external specialists on call originated in the Netherlands in the 1970s. Due to the long notice periods and high severance costs common at the time, companies were reliant on flexible solutions to respond to shortages. Many other European countries subsequently adopted the idea of interim management. Temporary managers were initially used primarily to restructure and reorganize companies.

Interim management eventually became established worldwide, with the result that specialized agencies and consulting firms began to provide temporary managers. This development was facilitated by increasing networking and the cross-border exchange of management practices.

Interim management in today’s business worldResponse to increasing competitive pressure

Today, interim management is a permanent fixture in the strategic toolbox of many companies. In the meantime, the field of activity of interim managers has expanded significantly. They are deployed in almost all sectors and for a wide variety of tasks, for example for traditional project work, to bridge vacancies or to support change processes. Typical areas are human resources, finance, production, IT and logistics.

The importance of transition management in today’s business world is undisputed. Companies are faced with constant change, increasing competition and growing demands. Interim managers, with their versatility and expertise, make an important contribution to supporting companies in challenging times and achieving corporate goals. Their temporary availability offers companies the flexibility they need to adapt quickly and remain successful.

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Differences between interim management and traditional management

Interim management differs fundamentally from traditional management due to its temporary and flexible nature. Interim managers are hired for a limited period of time and for specific projects in order to bridge acute bottlenecks or bring in special skills. In contrast, traditional managers are permanently anchored in the organization and take care of long-term corporate strategies and operations.

The main task of interim managers is to solve short-term problems, manage transitional phases or carry out selected projects. Examples of situations include corporate restructuring, crisis management or managing a department during the search for a permanent manager. Traditional managers tend to focus on long-term goals, the development and implementation of strategic plans and integration into the corporate culture. Due to their external perspective, interim managers often bring fresh approaches and solutions, while traditional managers are deeply embedded in the corporate culture and processes. Interim managers must be able to adapt quickly to new environments and deliver results immediately. Their flexibility and adaptability are crucial to the success of their assignment. Traditional managers, on the other hand, have more time to adapt to changes and new requirements. They work long-term to continuously move the company forward.

Advantages of interim managementOn the road to success

Interim management offers an impressive range of benefits to adapt to a wide variety of business challenges. Thanks to a wealth of experience and expertise, specialized professionals steer the company on the road to success. Here are some of the key benefits of interim management:

Rapid availability: Interim managers can be deployed flexibly and at short notice to deal with urgent challenges quickly.
Experienced expertise: Temporary managers bring extensive experience and the necessary expertise that can be activated immediately to move companies forward.
Objective view: As independent experts, interim managing directors take an unbiased view of the situation and make objective, well-considered decisions.
Focus on results: Interim managers work in a targeted manner and quickly deliver tangible, measurable results.
Cost control: Temporary employment means that transition management does not incur any permanent personnel costs, which enables precise budget planning.
Risk minimization: Transitional employment minimizes the risk of a long-term miscast – a reassuring advantage in uncertain times.
Flexibility: Whether to bridge management gaps, in crisis situations or for special projects – interim managers are true all-rounders.
Change management: With their experience, temporary managers drive change and ensure the successful implementation of changes.
Network advantages: On-call managers have an extensive network of contacts that opens up additional key resources and valuable collaborations.
External perspective: External managers bring fresh ideas and innovative approaches to the company in order to refine and drive forward business processes.
Knowledge transfer: Interim management leaves behind valuable knowledge and structures that remain with the organization even after its deployment.

Efficiency on demandPossible areas of application for interim management

For whom and in what situations is interim management suitable? The use of interim managers is suitable for both large corporate structures and smaller companies. Particularly in situations of upheaval or crisis, IM offers the flexibility and expertise that companies need to remain successful. Examples of this are management bottlenecks, for example due to illness or the very short-term departure of a manager from the company. It can also be of great help during restructuring, such as the realignment of a business division.

Interim managing directors can also take on specific projects that require detailed knowledge or additional resources. In times of crisis – whether financial or operational – they help to stabilize the company. During company takeovers, they manage the transition, minimize risks and ensure company stability. The introduction of new technologies, such as ERP systems or AI, is implemented smoothly and successfully thanks to their expertise. Finally, interim managers can help to establish new departments or business units quickly and efficiently.

The road to successThe structured process of an interim management mandate

An interim management mandate follows a structured approach in order to achieve the defined corporate goals with maximum efficiency. The following steps provide an overview of the main activities and responsibilities:

Analysis: The first step is a thorough analysis of the company’s current situation. This includes an in-depth assessment of the operational processes, the financial situation, the market position and the internal and external challenges.
Objectives: Based on the analysis, clear and measurable objectives are defined. These are based on the specific needs of the company and can include, for example, increasing efficiency, reducing costs or implementing restructuring measures.
Action planning: In this step of transition management, a concrete plan is drawn up. The interim managing director outlines the steps required to achieve the defined goals and defines priorities and responsibilities.
Implementation: The measures developed are now put into practice. The interim manager often takes on a leadership role to ensure the efficient and effective implementation of the measures. Flexibility and the ability to react quickly to changing conditions are key success factors here.
Monitoring and controlling: No progress without control! Monitoring progress is essential during the implementation of the project. Regular reviews help to stay on track and, if necessary, to adjust the measures precisely to ensure that the goals are achieved.
Communication: Open and transparent communication is the key to success. The manager on call always keeps all stakeholders in the picture, shares progress, challenges and successes so that everyone is informed about the current status of the project and the next steps.
Handover and conclusion: At the end of the interim management mandate, the results achieved are documented in detail. The interim manager ensures a seamless handover to the internal team so that the company remains on course for success.