Hit and Run.

Hiring an interim executive during a merger or acquisition is one way to infuse the new entity with immediate knowledge.

Recruiting a key financial executive or member of the financial management team can be a long, arduous process. Recruiting financial executives specifically to consolidate enterprises during an M&A can result in significant up-front delays -- and excess talent once the integration is complete.

The solution? Hire objective, experienced interim financial executives to assimilate the two financial systems, extract the best practices from each and help them evolve into a single, exceptional structure. That these executives may be overqualified for the interim position is a plus.

Clearly, the CFO and financial management team have specific, one-time needs unique to the integration process. Therefore, they don't need to lock into people who want long-term employment. Rather, they can broaden their scope by using interim talent with specific M&A experience who can quickly assess a situation, identify opportunities and create and apply the right solutions at the right time -- all based on parallel previous experience. Once the consolidation is complete, interim executives move on.

The only recruiting criterion is whether the candidates have the skills to accomplish specific objectives to move the two merging entities forward. Unlike traditional practices in recruiting for long-term positions (focusing on total professional background), successful guns for hire only need a track record in the particular areas that need to be implemented. They understand that their success is measured by their results. And the value they deliver through the timely completion of a project far outweighs their cost.

For instance, following a merger, a Fortune 500 manufacturer of a consumer product line decided to launch a new global sourcing system. An interim project leader served as the liaison among the project team, consultants and the management team. He helped the company reduce the cycle time associated with the launch and full deployment of the new sourcing system from 18 months to 13 months. Although the company paid him about $150,000, it realized $1.2 million in productivity gains.

IN AND OUT

Organizations use interim management to do something quickly when they don't have the requisite talent, or when they need to fill unexpected or short-term vacancies. Interim executives differ from financial consultants, who focus on making recommendations. While interim executives are adept at proposing solutions, they also complement consultants by applying their strategic recommendations, further reducing costs.

When organizations consolidate, they often experience a loss of intellectual capital. Competitors launch talent raids. Key leaders leave unexpectedly. It's critical to replace this knowledge rapidly and infuse the organization with experience and energy. Interim executives can accelerate change, act as fulcrums to help staff members cope with change and transfer their expertise to the key executives who will remain. They often help to create job descriptions and interview candidates for financial roles within the new organization. Once long-term employees are in place, the expert-for-hire can stay temporarily, if needed, to continue to transfer knowledge and facilitate the transition.

A senior-level financial professional recently took a four-month assignment in the health and beauty aids industry. Previously the company had acquired two new operating units. Every effort had been made to integrate their financial functions, systems and operations, but it had been impossible to gain agreement between each company's financial officers; both were committed to their own methods. So the parent company turned to an objective, third-party interim executive who was thoroughly experienced in integration processes and could develop an integration plan. Although his capabilities far exceeded the needs of this assignment, all the employer cared about was that he was competent to meet the immediate objectives.

The interim executive quickly mastered the unique challenges of the businesses, analyzed the financial processes and developed a strategic plan to effectively blend the financial systems of the two companies within four months. And the fact that he was overqualified was a bonus. His expertise and maturity enabled him to get things done without ruffling feathers. His international experience and facilities management background helped him address external and internal issues the company hadn't foreseen.

Years ago, companies considered using interim management primarily during crises. But few business situations are surrounded by the potential for crisis more than a merger or acquisition. Unfortunately, those charged with integrating organizations may have no relevant experience.

For parts of the M&A that require specific knowledge and expertise for a finite period, or for projects that are necessary to integrate the entities but will end once the consolidation is complete, the use of interim executives -- from CFO to the operating level -- is a proven, effective strategy.

John A. Thompson, author of The Portable Executive, is chairman and founder of IMCOR, a business unit of Interim Services Inc.