In the dynamic world of interim management, your ability to fill gaps, address critical issues, and steer organizations towards success is, without doubt, invaluable, but calculating your impact can be challenging.
This is especially important because many companies reject interim management solutions with the argument the fees are cost-prohibitive and it’s impossible to incentivize the interim manager.
Here’s a step-by-step pathway to measuring and demonstrating your return on investment using precise metrics and KPIs:
1. Begin with a clear and concrete understanding of the expected achievements. Ask yourself how success looks like? What are the clients’ expectations regarding my performance? Establish KPIs that are directly correlated with the company’s strategic goals. Sales growth, operational cost reduction, project completion rate are just a few examples. Interim Managers don’t just focus on the immediate profits but on the long-term value they bring.
2. Don’t measure ROI only in terms of financial gains, but also in terms of employee motivation and engagement, customer satisfaction, and business resilience. These are some metrics that truly matter.
3. Track your metrics and KPIs regularly and adjust as needed. Make sure to maintain a detailed log of all the progress and changes you’ve made, and always remain aligned with the organization’s changing needs. This not only helps in tracking progress but also in identifying potential issues before they become major problems. A continuous cycle of measurement and adjustment fuels your growth as an Interim Manager.
4. Evaluate your performance by asking these questions:
- How engaged and satisfied are your stakeholders with your contribution?
- Have you equipped the team with skills and knowledge to continue the work after you leave?
- How effectively have you identified and managed risks?
- How many new ideas have you brought to the table and how many of them have been implemented?
- How responsive have you been to changes?
These indicators showcase that you sustained long-term business success.
Usually, at the end of each interim assignment we complete an Interim Assignment Evaluation form with our clients based on the Interim Manager’s performance. The performance categories (each one having a different weighted factor) are, for example, as follows:
- Quality & Accuracy of provided work
- Deadlines / timelines accuracy in terms of completing contract agreed assignments
- Financial Gains (progress)
- Accessibility, responsiveness, and cooperativeness
- Relationship with and leadership of subordinates (and subcontractors if the case): in terms of hiring, retention and development
- Communication: IM’s accessibility, responsiveness, and cooperativeness with respect to any interim contract-related concerns
Mastering these steps will undoubtedly elevate your interim management game, and allow you to effectively demonstrate your strategic contribution, agility and overall return on investment you’ve brought to the organization.