Laying Groundwork for the Next CEO
With the help of an interim chief executive, a medical association prepares for the change ahead.
When the long-tenured CEO of the American Board of Foot and Ankle Surgery decided to leave the organization, its board made a crucial decision: to hire an interim CEO to shepherd ABFAS’s work while the elected leadership worked with Vetted Solutions to find its next chief executive. The departing CEO was successful by all measures, but the board recognized the upside of devoting considerable time and thought to identifying what they needed in a qualified successor.
Vetted Solutions identified Tom Harlow, CAE, CPA, for the interim CEO role. He had recently served as an interim CEO at the National Association of Elder Law Attorneys. Additionally, his dual accounting and association management background suited him for assessing the association’s financial, structural, and cultural states.
Effective interim executives share a skillset that includes a well-tuned ability to assess the situation and quickly form plans.
Evaluation Steers Direction
A CEO transition is a natural time for organizational introspection. As Harlow notes, the board of directors, in the absence of the chief executive they had relied upon for years to manage the organization, asks questions like these: “Why are we approaching the goal this way?” “Do we have the right staff to do what we need to do?” Skilled interim executives help boards through this process.
At ABFAS, Harlow did a rapid assessment and reported three key conclusions to the board:
1. The association had quality staff, and he saw ways to more effectively deploy and empower them.
2. Executing certain operational improvements would free the permanent CEO to tackle bigger projects once on board.
3. A shift in fiscal management philosophy would improve organizational sustainability.
As Harlow explains, it is vitally important that the interim introduce changes in concert with partners. “Changes were done in consultation with the board,” he says. “A CEO has to have the latitude to make management decisions, but an interim must coordinate with the board on major decisions to ensure that the direction is supported.” Staff input is also crucial—I ask, “What is work that we should be doing? I would not move forward without having had those conversations.”
As an interim association executive, Harlow underscores that the board is his client, but in a sense, the next CEO also is a client.
Doing the Work
As an interim association executive, Harlow underscores that the board is his client, but in a sense, the next CEO also is a client. “We are trying to make things better for the next CEO. If we were readying a house for sale, would we paint? Yes. Would we replace the roof? No. Is a project something that needs to be resolved? If yes, we’re likely to move ahead. However, if the work is a matter of preference or it is too big—for example, an association management system conversion—then it is left for the next CEO.”
Collaborating with the staff and board, Harlow led these changes at ABFAS:
Developed an executive leadership team. Previously, of 19 staff, almost half reported to the CEO. With a new leadership team of three, staff accepted greater accountability and enhanced their capacity and confidence for offering candid assessments and presenting well-reasoned initiatives.
Improved operational practices. Achievements included improving file structure and management, challenging norms about roles and responsibilities, and making certain policy changes in preparation for a planned transition to fully remote operations.
Enhanced the financial position. To support revenue-positive budgeting, Harlow and the chief financial officer presented a compelling case for raising association dues. The board agreed.
The transitional work at ABFAS highlights the power of interim leadership. “Part of the role was encouraging a culture in which staff played roles that a new CEO would likely expect,” he says. With the board, the work was consultative: evaluation, developing achievable short-term plans, having discussions aimed at calibrating board and staff roles. For all, adds Harlow, the focus of the engagement was preparation: “preparing them for the change that was coming.”
