Most people know little or nothing about Interim Management, and that’s OK. Many will go through life without having the benefit of meeting an Interim Manager, and that’s OK. Interim Managers are specialists who deliver exceptional outcomes in specifics set of circumstances, and if you don’t need them, then you don’t need them. 

Like surgeons, you only call on them when the situation is serious, and you are glad to know them at that point.

While knowing nothing about Interim Management is definitely OK, what is more frustrating for people in my world are the otherwise very nice business leaders who definitively know ‘ABSOLUTELY EVERYTHING ABOUT INTERIM MANAGEMENT’, but who actually know very little. 

And what they do know isn’t true. 

Incorrect opinions dressed up as fact vary wildly, but I hear all sorts. Interim Managers only do the job because they can’t get a permanent job (UNTRUE), Interim Managers can’t get on with people (UNTRUE), Interim Managers just fill gaps (UNTRUE); these are some of the main corkers. These don’t always come up in conversations with business leaders of the type described, but there is one fallacy which comes up every time.

FACT – Interim Managers are really expensive.

Now, this is actually about as much a fact as the ‘facts’ promoted by disingenuous politicians trying to gain election. It is certainly a valid opinion, it may be a belief, but it is NOT a fact.

Without being overly philosophical, ‘expensive’ is a relative term and things cannot be expensive in themselves. They can only be expensive in comparison to something else.

What?

Well, typically the comparator is the base salary of a NOTIONAL permanent hire of a similar level and sometimes of the client themselves. On the most superficial of examinations, the day rate of an Interim Manager, multiplied by say 240 days, might look toppy in comparison to an ExCo base salary in the client’s organisation. However, obviously, the vast majority of business leaders do not only get paid a base, and their overall comp (including bonus, pension, LTIP, shares, medical/dental/life cover, holidays, paid sick leave, etc.) levels the playing field. Often the overall package of the permanent leader is HIGHER than that of the Interim Manager.

However sometimes it isn’t, but that still doesn’t mean the Interim Manager is expensive. Actually, to compare their day rate to permanent compensation is to make the wrong comparison. The better comparison would be to compare their cost to the value they add to the business which utilises them. If the assignment is to revitalise a business offering, drive through cost efficiencies or to otherwise enhance performance, the effective Interim Manager will justify their day rate from day one. I do end up having ‘commercial conversations’ with clients while I am negotiating an assignment, but the price never gets mentioned once the outcomes start to be delivered.

If a client really believes their Interim Manager is expensive after having them for a month, then they should let them go. This might be because they picked the wrong person, but it much more likely that they didn’t need them in the first place. If the problem to solve or commercial opportunity isn’t big enough to justify a decent day rate, then they should probably just work a little later and do it themselves!

Sometimes colleagues in my own industry are unhelpful and can actually reinforce the perception that Interim Management is expensive. This can be as simple as failing to call out fallacy promoted as fact when they hear it, but often their business practices can magnify it.

Obviously, for those Interim Management assignments which are brokered through an intermediary then the client isn’t only paying the Interim Manager, but they also need to pay the provider. Clearly, if the provider is ‘not of the right type’ and purely focussed on short term commercial gain, then their expectation may lead to an inflated rate to the client and (probably) the Interim Manager being paid less than they should. I think, however, this is becoming increasingly rare, especially in those businesses like Valtus, where we emphasise the delivery of outcomes rather than the making of introductions.

So, Interim Managers are not expensive in themselves, and that is a FACT. If a business decides that they are not for them or that the project doesn’t justify the cost, then that is OK. However, when the situation is serious, and an optimal outcome is required, then the cost can always be justified.

Several years ago, I needed an operation on my ankle. I met a specialist surgeon with exceptional credentials, including having operated successfully on the then England football captain. He was quoting me more than double the cost of another qualified surgeon from the same hospital. When I mentioned this, he said, “Well, that’s OK. It just depends on whether you want to put your ability to walk properly in the hands of a cheaper surgeon”.

He got the gig.

Interim Management, like surgery, is about driving the best possible outcomes, is best delivered by people who are masters of their subject, and they need to be appropriately remunerated. To quote Red Adair, “If you think that hiring a professional is expensive, just wait until you hire an amateur.”

Steve

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Steve specialises in providing senior Interim Management solutions that drive business performance and deliver tangible results. As a Partner for Valtus UK, he focuses on leadership roles that address major transformations, transitions, and organisational challenges, offering clients an effective alternative to high-cost consultancy models.

With extensive experience across Professional Services, Industrials, Infrastructure, and the Public/NFP sector, Steve works closely with clients and interim managers to ensure every placement delivers measurable success. His expertise lies in aligning the right talent with critical business needs, supporting all stakeholders through every stage of the process to achieve meaningful outcomes.