Make Your Mark as Interim CEO

An interim CEO is often brought on during the transition process to bridge the gap between the outgoing and next long-term CEO. They give the board the time and space to consider what is most needed for the organization as it enters a new phase. The interim essentially keeps the organization moving forward before the most appropriate candidate for the next CEO is found. Despite the temporary nature of the role, this comes with significant responsibility. If you’re coming into an organization as an interim leader, you might have questions about exactly how much authority you have.

Interim CEO authority is determined by the board.

It’s important to come into the role with?fast-tracked plan to learn?where the organization is at. The board knows the organization’s current status and the latest challenges it faces. They will have specific expectations, priorities, and responsibilities in mind for your time as a interim CEO according to the organization’s needs and the resources required to meet them. This will influence what you are expected to?achieve during your tenure. You may be eager to leave your mark on the organization and prove yourself as a leader but remember to keep?the board's expectations in mind.?Your actions and contributions?must align with those of the board. In fact, ensuring the organization runs smoothly through a leadership transition will depend on a strong collaborative relationship between board and interim. Regular meetings with the board will keep you on track by sharing updates, feedback, and raise concerns to make any necessary adjustments to during your tenure.

Although your role may be temporary, your impact doesn’t have to be. The key is to make sure you don’t overstep your authority. You act as a steward, steadying the ship to ease the next CEO’s transition. Naturally, there will be larger responsibilities beyond your scope better handled by a?longer term leader.

With that in mind, what exactly is the extent of the interim’s authority?

Daily operations––Unless specified by the board, the interim has full authority when it comes to day-to-day operations that keep the organization running. This includes financial control, keeping a close eye on the budget. After all, this is what will ensure the organization continues to function even without a permanent leader at its helm. After all, operations don’t stop when the outcoming leader leaves.

Your operational authority keeps the team on track with their pre-existing projects and goals.

Large projects––Full authority over operations and finances may seem like a significant amount of power. Yet that authority only goes so far. The board may have prioritized specific projects during the transition period. You may have limited discretion to add to this list if the timeline of your priorities goes beyond the scope of your time as leader. The next CEO will have their own vision of where they want to organization to go.?

Crisis management––If an organization needs a more active stabilizing hand to maintain the status quo, it may need your active role in?crisis management. This is where the interim will use their authority to address the most urgent issues and challenges the organization faces. This allows the new long-term CEO to take on a much more stable, efficient organization from the very start of their transition, giving them the freedom to focus on letting the organization thrive. Such crises might include financial instability, operational setbacks, or public relations issues. Many interim leaders are professionally trained to deal with crises and brought on specifically for their expertise.

Long-term structural changes––The interim CEO is there to stabilize the organization. Only with the board's authority will they be responsible for making disruptive changes to the way the organization is run. If major changes are not in your mandate, your?insights and feedback are valued, and the board and next CEO will take them into consideration. That said, if you uncover something that is fundamental to the organization's success, the board may look to change the priorities during your tenure.

Reviewing and suggesting––Much of your job as interim will be listening?across the organization's team to get a sound sense of their needs. They’re the people closest to the organization’s everyday operations. They know what’s working and what’s not. Elicit their feedback when gathering your own observations to report to the board. You have the power to engage with the team in a positive way to create a productive, psychologically safe environment. This helps ease them into the leadership transition and sets the stage for the new CEO.?

Though your role is temporary, you will be there long enough to get to know the roles and responsibilities expected of the next CEO.

Many things will have changed since the last time the CEO job description was updated. During your tenure, you may notice that some responsibilities or ideal qualities have become obsolete over time, while new ones may need to be added to reflect the organization’s latest needs. This is incredibly valuable feedback for the board to use when searching for the next CEO.

Staff shake ups––While your input on the current executive team is a valuable resource for the board,?the board may restrict your?authority to hire or fire senior roles without their approval. Your role when it comes to the executive team may be limited to maintain morale in the face of uncertainty that comes with a leadership transition. If it's possible, the executives want to be assured that their role won’t be impacted by the leadership change. It will be up to the?next CEO what updates are made within the team. In the meantime, it’s up to you to give the team the resources and support they need to continue doing their jobs with minimal disruption.

Your interim authority will directly correlate with the organization's needs during its leadership transition.

The board will have final say on your priorities and responsibilities. Your focus on maintaining continuity will reverberate through the organization as you help prepare it for the next leader to take over. In this way, your influence may not be in long-term change, but rather in the insights and cultural impact you leave behind.

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Further Reading

Interim CEO Powers Explained: Authority & Limits, Boardroom Advisors

Getting The Most From An Interim Leader, Chief Executive

Creating Lasting Impact As An Interim Leader, Forbes

Succeeding as an Interim CEO, Chief Executive

How to Step In as an Interim Manager, Harvard Business Review