In many cases, the right solution for a middle market business is to bring in a highly skilled individual to fill an important role on the leadership team, or for project work, on an interim basis. Advantages include:
FortéOne’s Interim Leadership Services provide deep industry and operating experience, rapidly, while delivering results to the organization on an as needed basis.
When business issues that have gone unsolved for months are causing sleepless nights, or a key project is needed that requires specialized skills, it might be time to consider interim leadership. Circumstances that may call for an interim executive include:
Interim executives can serve as a vital resource to help companies regain business growth, prepare for a business exit, complete critical projects, or assist with generational transfers.
It is important to quickly communicate the interim placement throughout the company to maintain business progress and reduce resistance. A compelling message will be crafted collaboratively with our client and carefully delivered to core members of management, the company as a whole, and key customers/vendors.
Interim executives work with the business owner for as long as it takes to achieve his or her goals. Although the company’s needs determine the length of the engagement, in all cases the objective is to leave the company with the processes, people, and tools necessary to maintain long-term success.
During the interim placement, FortéOne can assist the company with screening and hiring of a permanent executive. Once the permanent person is hired, a seamless transition is ensured. Often the interim executive is asked to participate in future Board meetings and is available to assist the permanent executive as requested. In certain instances, the interim executive may be converted into a permanent member of the leadership team.
PE owned firm was losing revenue and needed new leadership immediately. Experienced interim CEO was placed within one week. Supply chain savings of $800K were realized in 2 months, sales increased by 50% in 18 months, and on-time deliveries improved from 70% to 100%. Our executive was later hired by the company, which grew rapidly, introduced several innovative products, and achieved historically high margins. This CEO later lead a sale process that achieved one of the highest returns in the PE groups portfolio.
PE firm had just taken a control position and needed assurance that their capital was being deployed wisely. We assumed COO role and worked with the CFO and CEO to install processes and KPIs to promote and monitor performance. In stock inventory for large clients, including Wal-Mart and Dicks, increased from 52% to 98%. Working capital decreased. Firm was taken to market at the end of our engagement.
Mature industry with flat growth, firm had declining margins. FortéONE supplied both an interim CFO and interim CEO, and the following improvements were achieved within 16 months: ROIC rose from 5% to 19%, Gross Margins increased from 12% to 27%, debt reduced from $890K to $0, EBITDA tripled, and distributions in excess of tax of $2M. Enterprise value increased more than 15X.
Specialty construction firm had lost confidence in their CEO, were considering selling to an industry competitor, and asked FortéONE to assume leadership. We stabilized the operations, assisted with sale preparation and strategy (accelerating the successful sale), and ran the firm while highly engineered custom projects were completed and/or transitioned to the new owners—all the while managing 170+ vendors, 20+ jobs, $ millions in overdue payables, and the expectations of both old and new owners.
The majority of our consultants are available for interim leadership roles. We will work with you to identify the resource(s) with the functional and industry experience as well as the best cultural fit for your organization. They will work alongside business owners as temporary CEOs, CFOs, COOs, Presidents, or other senior executives.
An interim executive’s job can also include assisting with strategic change, undertaking high-level projects, or serving as an executive coach to the management team.
Contact us today to learn more about our interim leadership services and how we can help you quickly fill a leadership gap in your business.
“They hit the ground running and are not deterred by tough issues. We are so impressed with their people that they have become our go-to group for consulting solutions and, when required, interim leaders.”
Jeff Walters, Co-founder and Managing Partner at LaSalle Capital
“Their team is made up of people who have “been there and done that,” which made it easier for their participation to be embraced by our management team. I’d give my highest recommendation.”
John Russell, CEO, $300MM Construction Company