C-Level change

The concept of hiring temporary executives who parachute in to fill a hole in a company's management structure is not new. In the current environment, however, it is seemingly getting some new traction, as evidenced in an article entitled, "The rise of the hired gun C-suite", posted on FORTUNE's web site.

The FORTUNE article highlights several case examples involving companies who had a sudden and immediate need for an executive, sometimes in the middle of a challenging transition such as a merger or a turnaround.

One of those quoted in the article is Charles Dunlap who is on his fifth CFO assignment. According to FORTUNE "Having interim executives can be especially helpful during tense situations such as restructurings, Dunlap adds.'We can be brought in as an intermediary who allows the financing structure to remain. We handle the tough negotiations. We engineer [the restructuring], so when we go away, some of that negative feeling goes away.' "

Whether the transitional role Dunlap describes is done by an insider or an outside advisor, the dynamics are the same. Leading during a major transition calls for insights and experience that do not spring from day-to-day management. Some of the risks and opportunities of such a period include:

• •Many decisions, with long-term impact, are made in a relatively short time•
• •The organization must develop new attitudes and work habits 
• •The leadership team may not on the same page
• •The • right people are not consulted or  listened to
• •A proper frame of reference is not set
• •There is a drift from roots and values 

Perhaps the biggest challenge is for a leader to channel the energy -- the corporate adrenaline, if you will -- that's generated by transitions such as mergers, turnaround, or accelerating growth.Making the most of a transition depends on how leaders approach change as much as what they do. This starts by standing back and giving some thought to the environment in which a major change is taking place The analysis supporting any given transition looks very similar from one company to the next. But the context – culture, history, relationships, identity – is unique to each one. How leaders bring these elements together day to day has a big impact on implementation.

Another way of looking at this is to recognize the power of transitions, as Machiavelli did when he wrote: "One change always leaves the way open for the establishment of others."

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