When a company’s chief executive officer leaves through resignation or termination, the company’s operations can be jeopardized until a replacement is installed. For a company going through difficult economic times or transitions, such as a merger, the loss of a CEO can be especially critical.
Many corporations have turned to companies such as KIT Capital for an interim CEO or to fill board of director positions with professionals who can provide immediate management expertise.
The CEO is a corporation’s highest ranking executive. CEOs usually develop and implement company strategic policies, make company decisions and oversee the operations of the company’s business. Most CEOs act as the liaison between the board of directors and the officers and managers who oversee the day-to-day operations of the company. It is common for the CEO of a corporation to hold the position of chairman of the board of directors.
The role played by a CEO can vary depending upon the size of the company. CEOs in smaller corporations usually take more of an active role in a broad array of management decisions at various levels of the company. In larger corporations, CEOs usually limit themselves to high-level management decisions while leaving more of the day-to-day operations to other executives.
Because of the role CEOs play in developing corporate strategy and guiding the company through its implementation, the departure of a CEO can have a destabilizing effect on a company. For a company that might already be in a crisis situation, the loss of its leader can lead to financial disaster.
Interim CEOs from a company such as KIT Capital are skilled and experienced executives who can quickly evaluate a corporation’s operations and implement existing strategies or develop new ones to achieve and maintain a high-performance level.
Companies such as KIT Capital understand the importance of providing temporary but superior leadership while a company searches for people with the right skills and experience to fill vacant positions. Often, the addition of an interim CEO provides a company with a new perspective, enabling the company to take advantage of a growth opportunity that former executives might have been unwilling or unable to pursue.
Companies faced with an opening at the CEO or board level might be tempted to quickly appoint someone from the management ranks within the company. Hastily choosing someone in this manner to fill a key policy-making role can be a mistake. Just because an employee is a good mid-level manager does not mean the individual will do well making high-level, long-range policy decisions.
A qualified temporary CEO offers a company the opportunity to conduct a proper search for someone with the right management skills to lead it.