Transitional management: principle and foundation
Definition of transitional management
Transitional management consists of temporarily assigning management functions to an external operational executive in order to manage change. This person has the distinction of being immediately operational, fully dedicated to their mission as a transitional manager and to improving the company’s performance. It is a viable short-term solution. Today, the transitional manager no longer intervenes solely for crisis management — their scope of action now covers various areas.
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In the 1970s, transitional management was born under the term “Interim Management” and initially developed in crisis management situations. A slow but fruitful breakthrough, as the French transitional management market was estimated at 440 million euros in 2019.
The advantages of transitional management
Using transitional management allows you to benefit from the fresh and objective perspective of an independent executive who provides concrete solutions to achieve the set objectives. The entire intervention is focused on success. It is a concrete solution that enables a rapid response to an emergency situation. It is simpler to implement than a fixed-term contract recruitment and more specialized than using a temporary executive. Moreover, it offers a guarantee of success, true objectivity, and controlled costs. Ultimately, it helps the company resolve the situation or lead a large-scale project before handing back the reins at the end of the mission.
The transitional manager: a true profession
Transitional management is linked to the duration of the mission and requires a certain degree of mobility. You cannot improvise as a transitional manager because some missions are sensitive and this must be taken into account. It is a profession in its own right, chosen deliberately — a desire to break out of routine and a willingness to challenge oneself with each new mission. Not everyone is suited for this role, as it requires specific skills and a certain lifestyle.
Also, it can be a solution in the face of the COVID-19 crisis, as new practices have emerged or developed that require fundamental changes.
Transitional management: a strategic solution?
Who are transitional managers?
Transitional managers are neither magicians nor superheroes. They are experienced women and men who have chosen to put their skills and experience at the service of organizations that need them. It is about going beyond one’s “traditional” function to position oneself as an accelerator capable of driving change while passing on knowledge and knowing when to leave once the mission is completed. Also, gaining acceptance from all employees is one of the greatest challenges for a transitional manager.
The transitional manager’s missions
A mission unfolds in 3 phases:
- The diagnosis to analyze and optimize the existing situation;
- The implementation of solutions, to be defined and deployed based on the diagnostic results;
- The transfer of skills to ensure the sustainability of a company department
The missions of a transitional manager are numerous and their skills diverse. The vast majority of transitional management missions involve functions often represented on the executive committee: general management, human resources, finance, or industrial operations. They can also intervene to cover positive situations such as developing a new business activity, managing a strategic project, or optimizing performance.
A transitional manager’s mission, which can range from 4 to 18 months, lasts on average 7 months
Skills required for a transitional manager
Beyond the usual qualities of a manager, companies look for specific profiles, prioritizing professional experience. Profiles must be senior-level, experienced, and capable of leading teams toward achieving the client’s vision. Active listening and the ability to adapt are the main qualities sought. They must also be a leader and demonstrate:
- Intuition
- Communication
- Empathy
Note that profiles meeting these criteria are rare. On average, 5% of CVs received are eligible for transitional management. They must also have a strong sense of operational effectiveness, a taste for challenge, and a genuine desire to pass on knowledge. It is essential that they have held managerial positions in order to manage a team they did not recruit themselves and that they take over at short notice. They can also be an expert in a specific area.
Good to know: industry knowledge is often required by the company, yet a fresh perspective can provide the necessary distance to drive change
The cost of a transitional manager
The cost of a transitional manager’s intervention is relatively significant but lower than that of a one-off consultant. The duration should be set in advance in order to control costs. Engaging a transitional manager allows for increased productivity and time savings in situations that can prove delicate for a company.
The average daily rate is 1,048 euros (source: INIMA). Overall, prices range from 600 to 1,600 euros as an average daily rate.
The course of a transitional management mission
Identifying the challenges
It is essential to identify the challenges by questioning the company about its objectives and the actions already implemented in the past. This step conditions everything that follows. The overall quality of the mission depends on its quality. Then, the problem and context must be formalized. This serves as a basis during the manager selection phase.
Selecting the right person
The client’s culture and the context of intervention can point to different profiles, as the transitional manager must be able to quickly understand the skills needs at the present moment of their future client and transform them into achievable objectives. Choosing the “right” manager is also a matter of chemistry.
Setting up the transitional mission steering
One of the tools used to ensure the smooth running of the mission is the steering committee. It helps guarantee the achievement of objectives, support the manager, and anticipate conflicts. It is also an effective communication channel between the manager, client, and company, necessary to guarantee the mission’s success.
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