The importance of return on Interim Management: strategic advantages and success stories

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Interim Management is a business approach in which experienced temporary managers are deployed in organisations to tackle specific challenges or implement strategic changes. Return on Interim Management (RoIM) plays a crucial role in this, as organisations want to ensure that these temporary managers not only provide short-term solutions, but achieve long-term and sustainable results. In this article, we will take a closer look at the importance of Return on Interim Management and use examples to illustrate the strategic benefits of this approach.

What is the Return on Interim Management (RoIM)?

The return on Interim Management refers to the business benefits that organisations derive from the temporary employment of experienced Interim Managers. These benefits can take various forms, including financial returns, efficiency gains, strategic implementation and the strengthening of organisational structures.

Examples of strategic advantages:

  1. Accelerated transformation and change: Companies are often faced with the challenge of implementing strategic changes quickly and effectively. By utilising Interim Managers, they can rely on experienced executives who are able to lead an accelerated transformation process. This enables companies to react flexibly to market changes and strengthen their competitive position.
  2. Crisis management: In times of economic uncertainty or crisis, Interim Managers can help stabilise companies and keep them on course. An experienced Interim Manager can take the lead in critical phases, carry out restructuring and take the right measures to guide the company through difficult times.
  3. Expertise for specific projects: Companies that need temporary expertise for certain projects can benefit from the specific know-how of Interim Managers. For example, an Interim Manager with extensive experience in the introduction of new technologies can support a company in successfully implementing digital transformation projects.
  4. Knowledge transfer and development of internal teams: Interim Managers can not only achieve short-term goals, but also help to transfer knowledge and skills within the company. This enables internal teams to learn from the Interim Manager's expertise and benefit from the implemented strategies in the long term.

The return on Interim Management is therefore much more than just a short-term solution to problems. Companies that make targeted use of Interim Managers can realise long-term strategic benefits that go beyond financial returns. The flexibility, expertise and ability to accelerate change make Interim Management an effective tool for companies that want to succeed in an ever-changing business world.

Case studies

(Source: https://www.gronova.com/de/mehrwert)

 

Case study 1: Interim purchasing manager
The export-orientated mechanical engineering company was confronted with the shocking appreciation of the Swiss franc. In a four-month assignment with the highest urgency and costs of EUR 146k (including expenses), the Interim Manager was able to reduce the annual material costs by 940k. If the added value achieved is calculated for just two years, this resulted in a RoIM of just under 13.

 

 

 

 

 

 

 

Case study 2: Turnaround Manager / Interim CEO
The steelworks was in existential crisis and its closure was already a foregone conclusion. The steelworks was saved after all thanks to massive productivity increases and cost savings. With assignment costs (including expenses) of EUR 769k, the break-even point was reduced by around 10 million, which corresponded to a RoIM of 21 over a two-year period.

 

 

 

 

 

 

 

Case study 3: Interim HR Manager
The medium-sized conglomerate wanted to hire an executive search company to recruit around twenty specialists. It declined and instead suggested hiring an Interim Manager to recruit 17 specialists. With recruitment fees saved of around 340k and assignment costs totalling 341k, this corresponded to a RoIM of 1. At the same time, the Interim Manager built up an employer branding, which enabled the company to position itself as an attractive client. The benefit of this part could not be quantified, but it improved the overall RoIM.

 

 

 

 

 

 

 

Case study 4: Interim Operation Controller
A plant controller had to step in at short notice at an automotive supplier. This "naked" vacancy bridging achieved a RoIM of 0.5 (A). The RoIM improved by an additional 2.5 (B) with the special task of setting up "state of the art" controlling. At the same time, following meticulous analyses, the interim controller was able to localise the causes in the main plant that were systematically preventing the company from supplying its key customers on time. This prevented the loss of key customers with an annual turnover of 45 million and contribution margins of 9 million. With the latter, the RoIM increased by a further 75 on a 2-year view (C).

 

 

 

 

 

 

 

Case study 5: Interim Supply Chain Manager
The start-up company developed innovative additives for the food industry. It decided to outsource production completely. Initially, the supplier's limited capabilities went unnoticed. After the first major orders from well-known global corporations were received, the supply chain collapsed. The interim supply manager was able to restore supply capability with a new supply chain. With contribution margins of over 4 million in two years, the assignment paid for itself 27-fold with costs of 130k. The strategic value of the lighthouse customers served was not included in this calculation.