Transition Time

An interim executive illustrates the art of balancing operations while shepherding an association’s move to a new management model.

When Michele Warholic, Esq., CAE took on the interim CEO role at a global organization, the board of directors already leaned toward transitioning management to an association management company, or AMC, model. While the organization had solid revenue sources and healthy reserves, the leadership observed a need for sustained enhancements to infrastructure and development of staff to support the organization’s business model.

A Natural Fit

Warholic was a good fit for the situation. She brought an extensive management background including experience in multiple interim leadership assignments as well as legal and human resources expertise, so she was familiar with the territory she would need to navigate. In addition, she is accomplished in change management.

The board’s predisposition to a new management model meant that one of her first responsibilities was confirming that AMC management was the best strategic move. She did so, based on the organization’s life cycle stage and evident operational needs. “I knew enough about AMCs and their value to know that a management company would be the perfect solution for this group,” says Warholic. “It would take an AMC about a year to stabilize staff and operations before doing some new things,” whereas bringing in a new CEO to do change management, which has to be accomplished in stages, would take two to three years.

Assuming a neutral posture and helping demystify change as perceived by staff were critically important approaches to an interim leadership assignment.

Balancing Priorities

By the second month of Warholic’s assignment, the board had made its decision and contracted with an AMC.  During the preceding period, she had focused on stabilizing the program that delivered the greatest revenue and building relationships with a staff—four plus two temporary employees and contractors—that had suffered some recent departures, potentially jeopardizing programmatic operations. In month two, though, her role shifted to include navigating the attendant legal and employment issues, such as determining what packages would be extended to staff in the event they preferred not to transition into the AMC employment, when offered.

The board announced the management change to staff in that second month, and for the remainder of Warholic’s interim engagement, her priorities were crystal clear. While in other interim assignments, the opportunities to assess and work on efficiencies or culture or other areas might present themselves, the situation here did not afford them. She needed to assume a neutral posture, working with staff to demystify the AMC model, emphasize the resource and growth opportunities it would bring for them, and keep operations moving—without losing staff knowledge and institutional memory during the transition process.

Warholic also worked closely with the CEO of the AMC to provide transition. Among the steps:

·       Ensuring that staff shared all processes so that the AMC could absorb and document them.

·       Sharing information about contracted operational relationships, such as outsourced IT and web site.

·       Closing out systems, such as finances, for a smooth conversion to the AMC’s systems.

·       Explaining the structure of the organization’s shared drive so that key information could be found.

·       Briefing the AMC CEO on clues for relying on staff-provided information versus probing further.

Warholic notes that one reason the transition went smoothly was that she and the AMC CEO clearly defined what work she would do and where the AMC would focus. “AMCs are skilled at transitioning organizations,” she adds. The AMC reviewed contracts, documented processes, and orchestrated the shift while she supported the company with needed information and kept the operations of the organization on track.

Stabilizing operations while supporting transition to a new management model represents a dual management service that well-suits the skillsets of interim executives.

An Interim’s Insights

Whether for this interim assignment or others, Warholic shares some insights:

·       Understand that to make progress, you have to deal with any resistance. Change is difficult for people. Concerns have to be addressed promptly and transparently.

·       Recognize that where organizations have evolved around the people rather than the functions, shifting the culture will be difficult.

·       Be realistic about what can be accomplished in a short time. “Get focused on the top three or so priorities,” advises Warholic, “and stay focused on those. You have to backburner some things even if you know you could address them.”