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/ Transforming Subsidiary Challenges with Interim Management

Transforming Subsidiary Challenges with Interim Management - Maier Vidorno Altios

Interim management is often seen as a last resort, but it can be a powerful tool for addressing deep-rooted problems in subsidiary management. Companies facing ongoing performance issues or organizational dysfunction may not realize that the solution could lie in bringing in external leadership, if only temporarily.

At Maier Vidorno Altios, we’ve seen firsthand how interim management can not only stabilize a subsidiary but also transform it, leading to sustainable, long-term improvements.

Typical Company Profile: When Help is Needed but Not Recognized

Small and medium-sized enterprises (SMEs), particularly those in the small and medium-sized enterprises are the most frequent seekers of our interim management services. Interestingly, very few directly request interim management.

Instead, they approach us with unresolved challenges that their internal teams cannot solve.

For instance, one of our European clients in the manufacturing industry faced a severe internal conflict that escalated over time. A group of employees gradually took over the operational and production decisions of the subsidiary, effectively sidelining the CEO. The situation had been brewing for some time, with the headquarters looking on without taking immediate action. Why did the headquarters wait for so long to regain control? Perhaps there was hesitation or uncertainty on how to intervene, or perhaps it was a lack of visibility into the escalating situation. By the time headquarters attempted to assert authority, the CEO had been isolated and production had slowed to a crawl, putting the company at risk of significant financial loss. After a swift analysis, we realized that the company needed a decisive intervention. We brought in an interim manager, realigned the staff, and within just three days, we resolved the situation. Operations were restored, control was regained by headquarters, and the company was able to avoid litigation. The key takeaway here was the importance of timely intervention and the need for strong, proactive leadership to prevent situations like this from spiraling out of control.

Common Issues: What Signals a Deeper Problem?

When companies initially reach out, the issues they describe vary, but the underlying concerns are often the same. Common complaints include unmet expectations over extended periods (usually leading to financial losses), a growing distrust of local management, and persistent excuses from the subsidiary for missed targets.

Instead, they approach us with unresolved challenges that their internal teams cannot solve.

For example, one of our clients was defrauded by both their local consultant and a network of distributors. As a solution, we took control of the supply chain, filed both criminal and civil lawsuits, and introduced new compliance measures. We not only helped the company recover their losses but also restored operational transparency and rebuilt trust in their Indian operations.

Why do these problems arise? Several common patterns contribute to the issues companies face:

  1. Blind Trust: Often, HQ places too much trust in the local management without maintaining sufficient oversight.
  2. Lack of Transparency: Companies are frequently unaware of the detailed workings of their subsidiary, which leads to a disconnect between expectations and actual performance.
  3. Neglect: If the Indian subsidiary contributes only a small portion of the parent company’s overall business, it often receives minimal attention—until a crisis hits.


In many cases, companies overlook early warning signs. Initial underperformance is often tolerated, with HQ executives accepting the explanations provided by local management. Capital injections are frequently made to keep the business afloat, but after years of poor performance, someone at HQ eventually “wakes up” and realizes that the problems are far deeper than they originally understood.

Why Clients Choose Us

One reason clients come to Maier Vidorno Altios is trust. We offer a comprehensive range of services—HR, accounting, legal compliance, and audit—which gives companies the confidence that their subsidiary is in capable hands. More importantly, we have access to a network of highly experienced interim managers who are ready to step in at short notice.

In a case where a European company was defrauded by its consultants and distributors, we were able to swiftly replace the local management, bring in an interim manager, and even assign one of our directors to join the company’s board to ensure future governance. This holistic approach is a key differentiator, and it’s why companies prefer to work with us over competitors.

The Interim Management Solution: Temporary Fixes with Permanent Impact

Interim management assignments vary depending on the needs of the company. In some cases, the interim manager acts as a placeholder while a permanent solution is found, ensuring that operations continue smoothly. In more complex cases, such as turnaround or restructuring, the interim manager takes full control of the subsidiary, implementing long-term changes. These assignments can last anywhere from a few months to 18-24 months, depending on the scope of the work required.

For example, in the case of the European manufacturer dealing with internal staff issues, the interim manager not only resolved the immediate crisis but also helped the HQ gain a deeper understanding of the cultural and managerial challenges that had led to the problem. This cultural insight is often a crucial component in the success of interim management, as HQ and subsidiary teams frequently operate with different expectations and work practices based on their cultural background and life story.

Realistic Outcomes: What Clients Can Expect

The best possible outcome for a company engaging in interim management is a return to profitability, enhanced transparency, and stronger internal controls. In the cases we’ve handled, companies have not only recovered from immediate crises but have also gained a clearer understanding of why their subsidiary was underperforming. With the right interim manager in place, these companies emerge stronger, more efficient, and better equipped to navigate the complexities oftheir Indian market. This includes the efficient operation of production units including the professional handling of unavoidable labour topics.    

Final Thoughts: Trust and Cultural Understanding

Three key points are essential for interim management to succeed:

  1. HQ’s Realization: C-level executives at HQ need to acknowledge that they are not in a position to solve these issues without external help. Only then can an interim manager effectively step in and deliver results.
  2. Trust in the Interim Manager: HQ must fully trust the interim manager; without this, the process will fail.
  3. Trust in Local Management: The company must find local managers they can trust.

Ultimately, the success of an interim management assignment hinges on having someone with excellent skills and deep experience in both management and local culture—someone who can step in and make a difference from day one. At Maier Vidorno Altios, we provide that expertise, ensuring that companies can overcome their challenges and thrive in India’s complex business landscape.

Does your Organisation need a interim manager? Contact us today

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