Gottlieb Technologies Management

Got Interim Management?

Published in the Far West Bulletin, Spring 2001; Federal Laboratory Consortium for Technology Transfer

"There is no shortage of venture capital or of bright ideas, but there is a shortage of people with the ability to execute the ideas. Those start-up enterprises that get the right people will succeed. Those that do not will likely fail."
Robert Gottlieb, co-founder of GTM

For the past several years, high tech start-up companies have attracted top-level executive talent with little more than the promise of stock, options, and a quick IPO. The last year has made many executives realize the true challenge of leading a start-up enterprise. Many of those executives are deciding to remain in the more secure corporate sector. However, the need for experienced management in technology start-ups is, if anything, more critical in today's economy. These companies need a new solution. An alternative solution is "Interim Management." 

Interim Management is the use of experienced executives during the initial period of a company's growth when specific leadership and management skills are required and when the cash resources are not available to hire full-time professional management. The concept of contract financial management (rent a CFO) has been around for a number of years. Comprehensive Interim Management applies the same principal as the "Rent a CFO," but includes other services such as business development, capital acquisition (funding), operations oversight, strategic/business planning, human resource management, and legal services coordination (including intellectual property protection). A typical goal of an interim management company is transitioning a start-up enterprise from the final stage of product development to product commercialization.

Interim Management has many advantages for a start-up company. Firms such as San Diego's Gottlieb Technologies Management - GTM (www.gottechman.com) contracts with a client company on a monthly basis and offers a variety of skills that can be drawn on as needed. They can supply a COO for several hours a weeks, then replace those skills with a CFO or CEO for the balance of the time allotted. In other words, the client can vary the skills they draw on from week to week or even from day to day while only paying for the time needed during any period. At the same time, a management coordinator ensures that all services are coordinated and working in concert toward the client's goals. Most interim management companies bill on an hourly basis whereas some like GTM charge for their services based on a balance of modest fees and fractional equity participation.

Interim executives can help set milestones for the development of the company and provide direction to owners and employees. This allows the founders to maintain focus and spend their time on the critical elements of the development that only they can accomplish. The start-up company gets the benefit input from a number of experienced executives without the expense of any full-time payroll, thus conserving resources for growth.

Interim management companies fill the critical management void, thereby allowing the startup to compete more successfully with companies funded at much higher levels. Interim management may become a concept that not only receives wide acceptance with start-up enterprises, but also within the more traditional corporate sector.

http://www.gottechman.com