During our recent 2023 Ankura OCFO® Conference, we hosted an insightful panel of our Interim Management experts moderated by Ernest Lee (Managing Director, Ankura OCFO®) on topics that ranged from career paths to skillsets to day-to-day responsibilities. Tom Flynn, Katy Dettman, Mark Thorson, Andrew Skobe, and Andrew Farag (all Managing Directors, Ankura OCFO®) drew on over a century of collective experience serving in senior roles and gave the team an inside look at what it is like to “sit in the chair.”
Why Interim Management
The panelists kicked off the session by describing the types of companies that often require interim finance leaders and shared that the roles typically come with challenges, risks, and competing stakeholder interests. Flynn believes he, along with the others on the panel specializes in “running into burning financial buildings,” while Thorson thinks of himself as a “financial triage physician” parachuted into very difficult situations.
The audience quickly learned that every interim experience is truly unique – from the focus of the work to the pain points within the finance and accounting function, to the internal dynamics to the industry dynamics at play. Thorson commented, “I enjoy taking my toolbox of tactics, strategies, and techniques that I have developed over the years and applying them to different situations.” The panelists agreed that their excitement around new and different experiences is a key driver of their shared enthusiasm for interim management work. Dettman said, “I love the learning aspect of interim management. In every role, I learn something new that I bring to bear in my next experience.”
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“I enjoy taking my toolbox of tactics, strategies, and techniques that I have developed over the years and applying them to different situations.” - Mark Thorson, Managing Director
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It was clear throughout the discussion that despite the panelists’ diverse professional backgrounds and experiences, all members of the Ankura OCFO® interim management team are passionate about delivering impactful results and leaving the companies they lead in stronger positions than when they first took the helm. Farag shared, “I like making a difference at the companies I lead. You know what it was like when you came in and you know what it is like when you leave. That is the most rewarding part of an interim role.”
Success Drivers in Interim Management
After discussing why they are passionate about interim management, the panelists considered the qualities they think drive success as an interim finance leader.
Defining Scope and Setting Expectations: Interim management engagements typically require that the person sitting in the seat report to shareholders/sponsors, management team members, board members, and more. The panelists agreed that aligning all the stakeholders to a scope of work and setting appropriate expectations is key to success. Skobe shared, “You must understand exactly what you are supposed to accomplish when you are in the role and what your key stakeholders want from the engagement. You may not know how long it will take, but you need to know your objectives and you need to align on success metrics at the onset of the engagement.”
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“You must understand exactly what you are supposed to accomplish when you are in the role and what your key stakeholders want from the engagement. You may not know how long it will take, but you need to know your objectives and you need to align on success metrics at the onset of the engagement.” - Andrew Skobe, Managing Director
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Managing Risk: Identifying and mitigating risk is another important step in enabling success as an interim finance professional. Farag commented, “There may be resource limitations, leadership alignment challenges, sponsor-related risks, as well as liquidity and reporting challenges, and financial misstatements, among other issues. Addressing risk head-on requires strong communication with your stakeholders. You need to share what you have observed and how you are going to prioritize addressing each pain point, considering the resources required for each.”
Listening to the Team: Interim management roles require close collaboration with new team members, who may have a pulse on the challenges that need to be addressed at the company. Listening to the new team and stakeholders is critical from the onset through the close of the engagement. Flynn said, “Listen, listen, listen. That's what the first two weeks or so is all about.” Dettman added, “You may not have the perfect information but by listening to the team you will learn what you need to know.”
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“You may not have the perfect information but by listening to the team you will learn what you need to know.” - Katy Dettman, Managing Director
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Making Decisive Decisions: It is important not only to make decisive decisions but also to bring the team together to support those decisions. The panelists added that you can have an outsized impact on an organization when sitting in an interim role. Flynn shared, “On a traditional consulting project you are there to provide guidance, advice, support, and recommendations. When you jump into an interim management role, you are making decisions and your impact on the organization can dramatically increase.” Dettman agreed, “Interim roles require that you evaluate circumstances quickly, wrap your arms around complicated situations, and make decisive decisions. Your clients are looking to you to make the right decisions for the company.”
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"When you jump into an interim management role, you are making decisions and your impact on the organization can dramatically increase.” - Tom Flynn, Managing Director
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Owning the Role: While interim leadership positions are just that – “interim” – the panelists pointed out that owning the role as if you are a full-time employee is critical. Flynn said, “Do not go into the role as an ‘interim’ professional, go into the role with the mindset that it is your job. Own the role, don’t just inhabit it.”
© Copyright 2024. The views expressed herein are those of the author(s) and not necessarily the views of Ankura Consulting Group, LLC., its management, its subsidiaries, its affiliates, or its other professionals. Ankura is not a law firm and cannot provide legal advice.
