10 Reasons for Hiring Interim Managers for Restructuring Your Company

by | Jul 2, 2024 | News & Insights

The pressure on profitability and sustainable growth as well as the most VUCA times ever for businesses, have the effect that companies often find themselves in need of restructuring to remain competitive and efficient. While internal managers might seem like the obvious choice to lead such efforts, there are compelling reasons to consider hiring interim managers instead.

But first, what is an Executive Interim Manager? An Executive Interim Manager is a highly experienced executive hired on a temporary basis to fill a specific role within an organization, often during periods of transition, crisis, or restructuring. These professionals offer extensive expertise, a new perspective, and specialized skills to address the organization’s immediate requirements. Unlike consultants, interim managers assume executive positions and are responsible for achieving tangible results.

This article explores why interim managers can be a better option for guiding companies through restructuring processes, and how they can mitigate the potential downsides of restructuring.

1. Objectivity and Fresh Perspective

Internal managers are deeply entrenched in the company’s culture, policies, and existing relationships. This familiarity can lead to biases and resistance to change. Interim managers, however, bring an objective viewpoint and no preconceived notions, allowing them to identify problems and opportunities that internal managers might overlook. Their external perspective can be crucial in challenging the status quo and implementing innovative solutions.

2. Specialized Expertise

Interim managers, as said, are highly experienced professionals who specialize in specific areas, including restructuring. They bring a wealth of knowledge and a proven track record of handling similar challenges in various organizations. Their expertise includes financial restructuring, cash flow management, and operational efficiency, making them invaluable in designing and implementing effective restructuring strategies tailored to the company’s needs.

3. Focus and Dedication

Restructuring is a complex and demanding process requiring full-time attention. Internal managers usually have ongoing responsibilities that can detract from their ability to focus solely on restructuring. Interim managers, however, are brought in specifically for this purpose, ensuring the process receives the undivided focus it needs to be successful.

4. Speed and Efficiency

Interim managers are adept at quickly assessing situations, making decisions, and implementing changes, significantly speeding up the restructuring process. Their ability to hit the ground running can reduce the time needed for a successful restructuring. In contrast, internal managers might take longer to adapt and execute new strategies due to their regular duties and potential resistance within the organization​​.

5. Reduced Disruption

Introducing significant changes through restructuring can disrupt day-to-day operations. Interim managers are skilled at managing these transitions smoothly to minimize disruption. Their external status allows them to make tough decisions without the emotional ties that might affect internal managers, leading to more effective and less contentious implementation of necessary changes​​.

6. Cost-Effectiveness

While hiring an interim manager might seem expensive initially, it can be cost-effective in the long run. The efficiency and expertise they bring can reduce the overall time and resources needed for successful restructuring. Moreover, interim managers can prevent costly mistakes that might occur if the process is handled inexpertly by less experienced internal managers​​.

7. Knowledge Transfer and Development

Interim managers not only bring expertise but also share their knowledge with the existing team. This can be a valuable learning opportunity for internal managers, who can gain new skills and insights from the interim manager’s experience. Over time, this can strengthen the internal team’s capability to handle future challenges more effectively.

8. Risk Mitigation

Restructuring inherently carries risks, including employee dissatisfaction, loss of productivity, and financial instability. Interim managers, with their extensive experience and objectivity, are better equipped to foresee and mitigate these risks. Their external viewpoint allows them to navigate political and emotional minefields that might trip up internal managers​​.

9. Managing Workforce Productivity

During restructurings, it is common for employees to feel insecure, less motivated, and lose focus on their work due to fears of redundancy. This drop in morale can significantly impact productivity. Interim managers can address these issues by working closely with HR to manage employee productivity, ensure clear communication, and provide reassurance about the future direction of the company. This helps maintain operational efficiency and keeps the workforce motivated and engaged during the transition period​.

10. Building Trust and Avoiding Future Issues

One of the significant benefits of using an interim manager is the ability to maintain trust within the permanent management team. By bringing in an external expert to handle the restructuring, companies can avoid potential blame and resentment that might arise if internal managers were responsible for difficult decisions like layoffs or departmental changes. This approach helps preserve the credibility and trustworthiness of the permanent management team, ensuring smoother future operations and a more cohesive organizational culture​ ​.


Hiring an interim manager for restructuring processes offers numerous advantages over relying solely on internal managers. From their specialized expertise and objectivity to their ability to focus exclusively on the task at hand, interim managers can drive more effective and efficient restructuring. This strategic move not only ensures a smoother transition but also positions the company for sustainable success in the long term. In the dynamic business landscape, leveraging the skills of an interim manager can be the key to unlocking new opportunities, achieving organizational resilience, and maintaining trust within the permanent management team.

If you have any restructuring requirements feel free to contact us. Interim Management Worldwide is the largest interim management network in the world and we can support you anywhere you need. We have an extensive network and database of experienced career professionals seeking job opportunities. We promptly match an interim manager to your company’s specific needs, ensuring optimal results.

Contact us today.