Becker's Hospital Review caught up with Sue Martin, senior vice president of interim leadership at B.E. Smith, about C-suite leaders' strategic options when an executive suddenly departs.
This article is sponsored by B.E. Smith.
Ms. Martin has dedicated her 30-year career exclusively to healthcare. Her track record includes executive leadership experience in business generation, process design and C-suite communication and collaboration. In her current role at B.E. Smith, Ms. Martin oversees the company's interim leadership division. B.E. Smith specializes in interim leadership and executive search processes for hospitals and health systems.
Editor's note: Responses have been lightly edited for length and style.
Q: What are some common attitudes and considerations among hospital leaders when it comes to interim C-suite leadership?
Sue Martin: Organizations that have successfully deployed C-suite interim leadership can attest to the power and multiple benefits this strategy delivers. They utilize interim leaders to meet not only situational needs, but also foster leadership across the organization. These executives leverage C-suite interim leaders beyond a specific role, fully integrating them into their organizations.
Healthcare executives who have not previously used interim leadership take a slightly different perspective. They initially approach C-suite interim leaders more tactically, focusing on specific responsibilities or tasks such as process improvement. In a recent survey, 38 percent of healthcare executives said they utilized interim leadership to fill a role on a temporary basis. Another 21 percent of executives said they used interim leadership while conducting a permanent replacement. Not surprisingly, this approach tends to shift when executives understand the broader potential advantages of C-suite interim leaders.
Q: What are the alternatives to using interim C-suite leaders to fill vacancies?
SM: A recent B.E. Smith survey found the primary alternative to using C-suite interim leaders is to select an internal resource to fill the role temporarily. This is typically another C-suite executive or up-and-coming leader who will fill two leadership positions. This option presents challenges for the organization.
- It can foster burnout in the executive who is managing increasing responsibilities.
- It can lead to increased turnover from executives not selected for the interim role, or if the organization decides not to select the internal interim executive for the permanent role.
Partnering with a recruitment firm that specializes in interim leadership eliminates these concerns. B.E. Smith is unique in that C-suite interim leaders are employees. Under this model, medical insurance, 401(k), tax and other administrative aspects are managed by the company. This approach protects healthcare organizations from operational burdens.
Q: What are benefits of using interim leaders relative to other approaches?
SM: C-suite interim leadership provides a wide range of benefits for healthcare organizations. In B.E. Smith's recent survey, five specific areas surfaced when we asked clients to identify the top benefits from utilizing a C-suite interim leader:
- Experience and Speed. Healthcare executives valued the experience of B.E. Smith C-suite interim leaders and how quickly they were able to get onsite in the organization and provide leadership. On average, our C-suite interim leaders bring more than three decades of strategic decision-making experience in healthcare. The result is a qualified leader who requires minimal training or onboarding and can provide an immediate impact to an organization.
- Transformational Leadership. Many organizations specifically ask C-suite interim leaders to be agents of change and drive transformational leadership. They manage reorganizations and new initiatives, bringing fresh views and independent perspectives. This role may be difficult for a new permanent leader who must also manage internal politics, which can inhibit innovative change.
- Stability. C-suite interim leaders deliver organizational and leadership stability, providing support or maintaining key operational processes during a leadership vacancy. In the survey, executives specifically mentioned how C-suite interim leaders were critical during periods of recruitment and onboarding of replacement staff.
- Strategic Momentum. Continuity is critical in today’s rapidly changing environment where speed of decision-making is essential and market competition is intense. C-suite interim leaders prevent loss of strategic momentum by advancing strategic goals and maintaining program execution during a C-level vacancy.
- Leadership Development. C-suite interim leaders are a valuable tool for organizations considering an internal professional for the permanent role or seeking to develop internal talent. Interim leaders can assess internal talent and provide mentoring and coaching. They can also provide transition time for an internal or external hire, setting these new leaders up for success.
Q: How can an organization ensure they're getting the right kind of interim leadership for their needs?
SM: Three recommendations for organizations considering C-suite interim leadership are:
- Consider cultural fit. Different healthcare organizations need leaders who bring different skill sets. One organization may require a change agent; another may seek a leader who provides more stability and develops strong relationships. Cultural fit is a primary focus for all interim leaders.
- Refine objectives upfront. Establish clear goals before the C-suite interim leader steps into the hospital. Ensure alignment exists with the interim leader and remain vigilant about the objectives throughout the course of the engagement.
- Bridge the gap during permanent recruitments. Increased turnover and a shortage of experienced talent are extending the recruitment cycle for many organizations. Leaving key leadership positions vacant or filling them internally with less experienced staff increases risk. C-suite interim leaders provide cover for organizations, giving executives time to properly evaluate the position and find the ideal future leader. C-suite interim leaders are also a valuable onboarding tool, mentoring up-and-coming leaders or assisting recently hired talent in the transition to their new role.
Partnering with a dedicated healthcare recruitment firm also provides insurance that an organization is getting a highly qualified leader. B.E. Smith consistently receives high satisfaction from our client organizations, particularly in regards to speed of placement, professionalism of staff and level of interim preparedness. However, it is B.E. Smith's successful track record that provides the strongest evidence of the meaningful benefits organizations can realize when utilizing C-suite interim leaders.