Leadership Lounge: How to Succeed as an Interim CEO

As an interim CEO, you have the authority to make decisions that could shape the organization for years—even though you may only lead it for a matter of months. The business cannot simply pause while the board decides who will lead it permanently. Decisions still need to be made, problems addressed, and people given direction. Yet every major call raises another question: how far should you go when you may not be there to see it through?

Your own future can add another layer of complexity. You may want the permanent role. You may know from the outset that you don’t. Or your ambitions may change as you spend time in the job. Whatever your position, you still need to lead while the question of what comes next remains open.

So, how do you make the right calls as an interim CEO when your authority is clear, but your future in the role isn’t?

What makes leading as an interim CEO different from being a permanent CEO?

Justus O’Brien, Leadership Advisor, RRA: The biggest difference is the ticking clock. The average tenure of a CEO is six to seven years, sometimes more, while the average tenure of an interim CEO is nine months or less. A new CEO usually gets a honeymoon from the board, and that honeymoon can be up to two years. An interim CEO gets a stopwatch. So, there's a lot that you need to get done in a very short period of time. I think that's the most fundamental difference.

What psychological pressures should you prepare for as an interim CEO?

Efe Ekhaese, Leadership Advisor, RRA: There are certain psychological pitfalls you really need to be thinking about when you're heading into that interim CEO role. The main one is operating with uncertainty. You don't know how long you'll be in the role. It could be three months, six months, or 12 months. That uncertainty can really affect everything from decision-making and building relationships to how you think about the future.

The other element is the isolation. We talk about the CEO role being the loneliest job in the world. And I think the interim CEO role multiplies that isolation by 10. Navigating relationships, political dynamics, and the need to build trust can really take a toll and make it a very difficult time for an interim CEO.

What should you clarify with the board before you start?

Justus O’Brien, Leadership Advisor, RRA: The most fraught word in interim leadership is ambiguity. The initial questions that an interim CEO needs to ask are: “Why am I here? What am I trying to accomplish? Am I coming in as a transformer? Am I coming to stabilize the company? What is the purpose of my mission here?”

The circumstances behind an interim CEO appointment can vary significantly. You could be stepping into a very stable situation, where the job is simply to keep the ship afloat during a period of transition. Alternatively, the company could be in crisis, which might require bolder and more robust action.

How should your mandate shape how you lead?

Aimee Williamson, Leadership Advisor, RRA: As an interim CEO, it’s critical that you’re clear on your mandate. A great example was a tenured insider we saw step into the CEO role on an interim basis following the founder’s unexpected resignation. The business was performing well, and the mandate was very clear. This was about maintaining stakeholder confidence and operational discipline while a permanent CEO was identified.

For another client, the context was very different. The company was under substantial performance pressure, shareholders were unhappy, and the interim CEO was therefore mandated by the board to take a decisive, action-oriented approach to drive the turnaround that was required. The interim undertook a 90-day review, reset expectations both internally and externally, and focused very closely on cost and disciplined execution. Time was of the essence here, so the interim CEO had full authority from the board to act decisively.

If you want the permanent CEO role, when should you tell the board?

Efe Ekhaese, Leadership Advisor, RRA: Ideally, you want to understand the board’s perspective at the start of your appointment. There are some situations where becoming permanent isn’t even an option, so the more you can clarify upfront, the better. You don’t want to be operating under false assumptions.

That conversation goes both ways. You need to make sure the board understands your intentions and whether you want the role permanently. I recently worked with a global medtech client where we were running a CEO search with an interim CEO in place. It wasn’t until very late in the search that the individual raised their hand and said they wanted the job. The board had been operating under the assumption that they didn’t.

So, make your intentions clear. Your ambitions may change during your time in the role, but you shouldn’t assume the board knows what you want.

About the authors

Efe Ekhaese is a leadership advisor at Russell Reynolds Associates. He is based in Miami.
Justus O’Brien is a leadership advisor at Russell Reynolds Associates. He is based in New York.
Aimee Williamson is a leadership advisor at Russell Reynolds Associates. She is based in Sydney.