The MT Position

By Philip McGuire

Your transportation director unexpectedly gives notice and suddenly your agency faces the challenge of replacing a key executive. Finding the right person can be very time consuming; hiring the wrong person can be disastrous.

Studies show that a bad hiring decision can be extremely costly. The speed in which a decision is made is often influenced by an agency’s need to have executive leadership in place at all times. In community transportation, small to mid-size public agencies, municipalities or nonprofit corporations are particularly susceptible to this problem. How does a transit agency continue to operate successfully while conducting a search for new leadership?

Agencies can experience temporary vacancies in a number of different positions.  The most common that is among the most difficult to fill on a short term basis is the senior executive, including the chief executive officer, executive director, general manager or transportation director. Openings in technical positions such as operations or maintenance manager or assistant general manager can also lead to a crisis situation.

On short notice, a temporary executive can provide stability, leadership and guidance to an organization undergoing “vacancy trauma.” Sound hiring decisions can then be made without the stress of immediacy.  An organization simply has to engage an executive with the appropriate skills and credentials to take on the delicate leadership role.

An interim executive must possess a “toolkit” of experiences, technical credentials and interpersonal skills that allow for immediate effectiveness.  This expertise goes far beyond the typical executive profile.  An effective temporary transit executive must be able quickly to:

• Inspire confidence in leadership
• Listen to board and staff to identify issues or problems
• Analyze crucial information (financial statements, contracts, or labor agreements) to understand context and formulate options
• Assess internal/external environments to understand the decision processes
• Act decisively
• Work with unfamiliar resources to accomplish the immediate objectives as defined by the board of directors

The role of an interim executive may be to serve as a caretaker until permanent leadership is selected; as a stabilizer to bring order to a chaotic environment; or as a change agent to use the temporary role to institute change in anticipation of hiring permanent management.  While there may be some difference in expectations depending upon the level of position filled, there is always a high level of expectation for immediate effectiveness.  A skilled interim executive, bringing proven judgment and decision-making abilities to an assignment, can have an almost immediate impact with the team that is being managed.  The executive must quickly determine the “situation” and be prepared to address it on the basis established by the board of directors or chief executive, if it is a second tier leadership role.

Effective communication is essential to any successful management role.  Greater than normal emphasis on communication is placed on interim executives who must be able to keep all parties informed of actions and decisions in order to reassure both board and staff that objectives are being pursued and authority is respected.

Agencies that engage temporary management should expect to pay a premium over the typical executive salary.  While rates and terms vary, an agency can pay as much as double the normal salary.  This reflects the complexity of the assignment and the high level of directly relevant experience necessary to manage in a crisis mode.  An agency also should be prepared to cover expenses for temporary housing, subsistence and travel.  The cost of interim management, however, is quite reasonable when compared to the price paid when making the wrong hiring decision. Agencies can also take comfort in having the commitment of an experienced senior executive available on short notice.

Temporary executive management can take many shapes, depending on the position to be filled, the length of the engagement or the size of the organization.  Public and private agencies in or near crisis situations have avoided the hasty selection of a permanent executive while benefitting from the services of a temporary executive. As more agencies become aware that skilled executives with transit specific expertise are available for interim assignments, the demand for this cost effective management option will increase.

Philip McGuire is an experienced temporary executive.  Since 2004, he has served as the interim senior executive for a municipal transit agency, a transit district (joint powers authority), and three nonprofit corporations.  For further information, contact Mr. McGuire at philm@innovativeparadigms.com.

This entry was posted on Friday, January 9th, 2009 at 7:43 am and is filed under Transit Talk. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.