Over a 10-year period, interim healthcare leaders transitioned into permanent roles 4% to 5% of the time. This rate has spiked in the past 18 to 24 months, now hovering above 10%, according to Adam Burns, interim leadership principal at executive search firm WittKieffer.
"It's a really tough environment. When an organization feels like they found a talented leader, they don't hesitate to try to secure them on a permanent basis," Mr. Burns told Becker's, citing industrywide financial challenges as a possible driver of this trend. "They're more willing to make an offer to keep them if they've been in the role for a period as an interim and done great work."
Kirby Bates Associates has also noticed an increase in this transition, said Colleen Chapp, MSN, RN, executive vice president of interim leadership and executive advisory solutions. The shift is often smooth, as team members are already familiar with the interim leader's approach and recent changes, Ms. Chapp told Becker's.
Effectiveness of interim leadership
"Most of the interim leaders do not want to move into a permanent role," Ms. Chapp said. "Interim leadership is a career path all its own."
However, some leaders who initially do not anticipate staying on end up changing their minds after spending time with the organization. This was the case for Sue Shugart, CEO of Rutherford Regional Health System in Rutherfordton, N.C. She took on the interim role in June to remain close to home and stay connected with her family.
"Having worked with Lifepoint in the past, I was excited to take on an interim CEO role at a nearby Duke Lifepoint hospital," Ms. Shugart told Becker's. "Although I wasn't initially seeking a permanent position, it quickly became clear that this opportunity was an excellent fit both professionally and personally, which led me to pursue."
Ms. Shugart was named the hospital's permanent CEO in August.
How to be a strong interim leader
Craig Williams, previously interim chief administrative officer of Chicago-based Cook County Health for about five months, eventually entered discussions about a permanent role. It was the third time he held an interim position and the second time he accepted a permanent role afterward.
"My approach has been to get quick wins, but also build relationships that are going to last," Mr. Williams told Becker's.
Being able to quickly become effective is essential for successful interim leadership, said Doug Watson, CFO of Minneapolis-based Allina Health. He was appointed interim CFO in January and took on the permanent role in May.
Identifying key issues that need attention is crucial, Mr. Watson told Becker's. He added that building relationships early on helps an interim leader understand team strengths and determine who can help address those issues.
Ms. Shugart agreed that quickly building authentic relationships with medical staff, the board, employees and community leaders is essential.
"Equally as important is taking the time to actively listen and learn; while I bring years of valuable experience, I recognize that truly effective and impactful leadership requires a deep understanding of the unique culture, history and dynamics of the facility," she said. "Gaining this institutional knowledge is crucial for making informed decisions and leading in a way that aligns with the organization's needs and values."
A successful transition
Serving as an interim leader provides a clear view of what it's like to work with the team, Mr. Watson said. This insight is especially valuable when considering a permanent role.
"You can never learn as much about an organization in an interview process as you can if you're embedded as an interim for a period of time," he said.
Organizational and cultural changes often require a longer-term commitment to ensure success, Ms. Shugart said. As an interim leader, her focus had been on stabilizing and supporting the team rather than initiating significant changes.
"That said, beginning as interim can actually be advantageous in providing that additional time for assessment to vet those longer-range changes that you want to lead after becoming permanent," she said. "Once transitioning to a permanent role, this foundation sets the stage for implementing those strategies with greater confidence and alignment."
An impactful role
Taking on an interim position is particularly rewarding because it allows a leader to contribute to problem solving and see results quickly, Mr. Watson said.
"I wouldn't shy away from an opportunity to join an interim role," he said. "If you approach it with the right mindset of rolling up your sleeves, getting involved, working to create solutions for the organization, you'll learn a lot and you'll have a lot of fun with it."