In today’s business environment, companies face numerous challenges, from optimizing cost structures to restructuring teams and processes. In this dynamic playing field, a specific strategy is increasingly used when transitioning to new permanent managers: deliberately using an interim manager as a ‘Bad Cop,’ so that the new permanent manager can act as a ‘Good Cop’.
Why this dichotomy of roles? The crux of this strategy is that organizations benefit from a ‘clean slate’ when a new executive starts. By having difficult, often unpopular decisions made first by an interim manager, the permanent employee is given the opportunity to focus on positive change and long-term relationships within the company. The ‘Bad Cop’ strategy may seem somewhat contradictory at first, but the benefits for both the organization and the new executive are often significant.
The Role of the Interim ‘Bad Cop’ Explained
Many organizations face decisions that strain corporate culture or working relationships, such as:
Organizational Reviews and Restructurings: One of the main roles of an interim manager may be to conduct a comprehensive review of the organization. This analysis may lead to far-reaching restructurings involving the creation of new roles, merging departments or eliminating functions. The aim is to establish a new, leaner structure that better aligns with the organization’s strategic goals. For a new permanent manager, it is often desirable to start with a functioning structure without having to lead this painful transformation themselves.
Cost savings and efficiency: In many cases, an interim manager needs to focus on implementing cost savings or cost reduction programs. This may involve reviewing contracts with suppliers, discontinuing unprofitable projects, or even laying off staff. While essential for the financial health of the organization, these are often the least popular decisions. An interim can take a hard line here, so that the new permanent manager can benefit from a financially healthier company, without feeling the direct impact of these hard choices.
Decisions around Failing Initiatives or Supplier Relationships: Sometimes organizations get stuck in problematic partnerships with suppliers, or there are business initiatives that are not producing the desired results. Discontinuing or renegotiating these relationships can cause internal friction. An interim manager can make these decisions without straining long-term relationships with the team.
How the ‘Bad Cop’ Strategy Works
The ‘Bad Cop’ strategy is essentially a conscious decision by the organization to have difficult but necessary changes implemented by a temporary force. This has several advantages:
Preventing Negative Associations with the New Executive: It gives the new permanent manager a chance to get started without being seen as the person who made difficult, often unpopular decisions. This is particularly important for building trust and good working relationships with the team.
A Better Position for Success: Having already resolved the difficult issues before the new manager starts, gives them more space to focus on strategic growth and innovation. It also creates a more favorable environment for introducing new initiatives that are not overshadowed by previous problems.
Temporary Dissatisfaction vs. Long-term Growth Opportunities: While the organization’s team may feel some resistance to the ‘Bad Cop’ interim, experience shows that employees ultimately appreciate that painful decisions are made quickly. This can provide a sense of relief as long-term issues are finally addressed. This allows the new permanent manager to focus on restoring trust and creating a positive work culture.
Concrete Success: Examples from Practice
Several companies have built their success through the tactical use of an interim as ‘Bad Cop.’ Below are some concrete scenarios in which this strategy has worked particularly well:
Restructuring of Departments at a Large Financial Services Provider: A large European bank faced the challenge of restructuring its operational departments following a merger. The interim manager was tasked with determining which departments needed to be merged and which functions needed to be eliminated. Although this was a challenging process, it led to a more efficient organization. The new CEO who was later appointed could then concentrate on expanding the market position without the burden of restructuring on his shoulders.
Cost-cutting program in Retail: A well-known retailer needed to make significant savings in its operational costs to remain competitive. The interim manager implemented sweeping changes, such as closing unprofitable shops and renegotiating supplier contracts. After this process was completed, a new permanent manager was appointed who could reap the benefits of these savings and focus fully on innovation and customer satisfaction.
Why Organizations Need The ‘Bad Cop’
Many companies initially think that they do not need an interim for such tough decisions. However, the reality is that it is often difficult for permanent executives to step straight into a new role and make tough choices. This can lead to delays, politics within the organization or even detract from their leadership. An interim ‘Bad Cop’ brings the following:
Independence and Neutrality: Because an interim manager has no long-term relationship with the organization, he or she can act objectively and without personal involvement.
Short Learning Line: Interims are experienced professionals who quickly understand the nuances of a company and its challenges. They do not need a long familiarisation period, which makes them efficient and effective in their approach.
Conclusion
The role of an interim ‘Bad Cop’ may seem contradictory, but it has proven to be a valuable strategy for organizations looking to grow and enable their permanent executives to thrive. By having difficult decisions taken by an experienced interim, new permanent executives are given the chance to start their job positively, effectively and without ballast.