Through a fictional company Biotech Smith Limited, I will briefly explain the functions of an interim manager.

The company experienced a turbulent period. The prices of essential commodities have risen by more than 30% in recent months and the processing costs increased. The Ukraine crisis has greatly added to the export-oriented company, causing losses in sales of 19%. In addition to the incomplete integration of an acquired company from a competitor last year, an administrative and financial bubble complicates the situation.

After presenting the figures, the Supervisory Board decides to use an interim manager, who would in a month later, takes over the management of the company.

1. Function: Restructuring and Reorganization

To make the entire value chain more efficient, the interim manager quickly implements the principles of LEAN management, as well as procedures that lead to a sleek, tightly organized management. This include:

• Increasing customer- oriented goals
• Focusing on strengths
• Optimizing business processes
• Improving quality
• Processing information and feedback

As part of this reorganization, the interim manager will focus on major income generating projects and dismantle inefficient projects, production and human resources.

The interim manager establishes a system to control costs. This includes bookkeeping with monthly statements, annual budgeting and monthly forecasts , balance sheet, cash flow statement and personnel development.

The acquisition has led to a number of disadvantages:

• Different, difficult-to-manage IT systems
• Use of different software products
• Inflated costs for IT administration and technology.
• Increased susceptibility to defects in the data maintenance

By investing in a single IT system, the cost of IT infrastructure and IT administration can be significantly reduced, business processes are optimized and standardized. This leads to a significant increase in profitability and efficiency.

The aim of the turnaround is reached after 10 months. The company makes profits again.

2. Function: Fundraising and Finance

In order to secure future growth and make important investments, refinancing will be completed with an amount of EUR 5 million.

With the excellent networking capacity of the Interim Manager, quick and successful cooperation with banks and venture capital firms will be reached to quickly refinance the company.

3. Function: Acquisitions

The company invests in innovative products and makes further acquisitions in the region. The interim manager accompanies this process with its expertise, leading negotiations and company valuations and ensures smooth integration of the company.

4. Function: Growth and Internationalization

With the establishment of an Indian subsidiary, the company moved production processes abroad and also taps into a global growth market for biotech products.

The interim manager leaves the company and serves for a year as a consultant.

Details on using the Interim Manager

pre- activity: Sales: € 1.2 million, profit: € -0.8 million, 40 employees

post- activity: Sales: € 6.5 million, profit: € 1.4 million, 130 employees