Magazine article American Banker

Interim Executive May Help a Bank Find Its Footing

Magazine article American Banker

Interim Executive May Help a Bank Find Its Footing

Article excerpt

Throughout the business world, the concept of interim management has become more accepted and more commonly used.

Executives and professionals are frequently hired for specified periods and clearly defined purposes to assist companies in the management of their business.

For a bank's board of directors, with its legal exposure increasing and a greater need than ever to fully understand the bank's business, interim management may offer a prudent alternative in certain situations.

Take, for example, a key executive's sudden departure. This creates a problem - but perhaps also an opportunity.

Leadership During Search Process

Unless there is an obvious heir to the position, the board faces a lengthy search process. Rather than allowing the bank to be undermanaged for several months, the board could bring in an interim executive.

With day-to-day management taken care of, the directors can go about a careful search instead of making a hurried effort to find a new leader.

Similarly, a specific event - a nasty surprise or poor performance - may make it apparent that a key executive must be removed right away. Interim management may offer the best solution during the reassessment that will probably follow.

The bank may have a cadre of strong managers, but they may have too many problems to deal with at the moment. Rather than permanently increase management ranks, the board might find an interim executive to be a valuable resource. …

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