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The interim discipline: rethinking succession in a volatile market

Rethinking succession in a volatile market, this article explores interim leadership as a disciplined approach to stabilising organisations and managing succession risk.

By Claire Lauder

Interim leadership offers the least value when it is used to keep the seat warm while a permanent hire is found. In reality, organisations that hold that view are missing the unique situations where interim leadership can add value.

At its best, interim leadership is a discipline. It’s a way of bringing experienced operators into a business at moments of disruption to steady the organisation and move it forward. Getting that distinction right matters at any time but in a volatile market, like the one we’re in now, the stakes are even higher.

Across parts of the UK industrial sector, succession pressures are building. Many leadership teams are ageing, while the operating environment has become more unpredictable.

Over the past decade, industrial businesses have navigated repeated policy shifts, rising employment costs, energy price uncertainty and growing exposure to global supply chain disruption. At the same time, a lack of consistent long-term industrial direction has made investment and workforce planning more complex.

Volatility didn’t create the succession gap, but it has brought it sharply into focus.

A pipeline under pressure

The numbers tell a clear story. According to recent data from Make UK, more than 70% of manufacturers have employees working beyond state pension age. And, beneath that headline figure, the shape of our talent pipeline is fundamentally shifting.

On the surface, overall apprenticeship participation has actually increased by 2.6% since 2018/19. But this masks a crucial detail: new starts have fallen by 10% in the same period. One reason is that the market has shifted towards longer, higher-level qualifications, meaning apprentices remain on programmes for longer even as fewer new ones begin.

The "traditional" intermediate-level apprenticeships - historically one of the most reliable pathways for developing operational leaders - have seen a significant decline, dropping from 43% of starts in 2017 to roughly 19% today.

The result is a leadership pipeline that is looking uneven and  fragile at its roots. Boards are therefore operating in a climate where the cost of hesitation is real, but so too is the cost of choosing incorrectly.

Permanent and interim – what’s the difference?

In many situations, the real constraint is not a lack of talent, but time. Businesses facing operational disruption, investor pressure or regulatory change don’t always have the luxury of a six-month leadership search.

Permanent leadership is fundamentally about stewardship. That means building culture, shaping long-term strategy and delivering value over years. Interim leadership, by contrast, is deployed into defined, non-business-as-usual situations with clear objectives set out from day one.

If you need something quickly, it tends to suit an interim appointment. If you want the right long-term person, that usually takes time. In short, they’re two separate leadership disciplines, used at different moments in an organisation’s development.

What exactly is interim leadership?

There’s one way in particular where interim leadership is often misunderstood, and that’s that interim leaders are nearly always overqualified by design.

They’re brought in to address a clearly defined challenge such as stabilising performance, delivering transformation, navigating regulatory complexity, or preparing a business for its next phase. Their value lies in focus, pace and their ability to influence as an outsider, without the accumulated weight of internal politics or long-term relationship management.

They’re not a stopgap. They’re a deliberate leadership instrument. They can move fast, stay focused on a single specific goal, and leave the organisation in a stronger position than they found it.

The questions worth asking first

Before any appointment, whether it’s interim or permanent, there are non-negotiable questions that need to be answered, no matter how urgently you need to fill the vacancy.

  • Is the challenge your organisation is facing business-as-usual, or not?
  • What outcome do you need to see? Any by when?
  • And, ultimately, what type of leadership discipline does your situation truly demand?

In a volatile market, the difference between stabilising quickly and spending months recalibrating often comes down to that single decision. The organisations that get it right tend to be the ones who step back just long enough to ask the right questions before ultimately choosing the leadership discipline the situation actually requires.

About the Author

Claire Lauder
Claire Lauder
Managing Partner, Interim Management, United Kingdom

Managing Partner Claire Lauder leads the Industrial Practice of U.K. Interim Management, focusing on industrial manufacturing, advanced engineering and technology. She works with FTSE and AIM-listed firms, PE-backed and owner-managed small and mid-size enterprises, partnering with investors and leadership teams to understand their strategic goals and identify leaders who help reach them quickly.

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