Latest News - Interim Management: The Speed Line For Growth (24/09/2009)
Thursday Sep 24
German Interim Recruiter see's strong demand
Interim Management: The speed line for growth focused companies
In light of a difficult economic environment, it is obvious that no company can afford to make mistakes. In many industries revenues and earnings went down dramatically. Markets and customer demand changed, while the organizational structure and expenses remained the same. As a consequence, the demand for Interim Management, supporting change and cost savings, has increased significantly over the last 12 months. Companies are looking to optimize their restructuring processes and improve both short and long-term economic performance. The professional experience of Interim Managers is a proven way to achieve this optimization. As such, experts offering this "management-on-demand“ will continue to increase in popularity over the coming months.
At the end of the day, many companies are now focusing on restructuring their businesses, opening up new ways of thinking and serving their customers. This requires a different type of leadership and know-how than is effective during a "boom period“, says Harald Schoenfeld, CEO of butterflymanager, a leading provider of interim managers in the German Speaking Countries. He points out that hiring an interim executive with a specific and in the team currently not existing skills, can be a smart strategy for accelerating the change, increasing momentum and introducing new perspectives. “The need for an executive, who can return value from day one and who is always focused on execution and outcomes, has made Interim Management a popular route for growth-focused companies“, he says. So, by tapping into proven Interim talent, businesses can enhance the chance of excellent execution and speed up the process.
CRO: Support for the CEO and CFO.
The high-profile failures of management have been widely reported over the last few months, and in many cases, it is clear that the individuals in question were unable to fulfil the requirements of a more restructuring-focused role. Consequently, the appointment of an interim chief restructuring officer (CRO) in such cases can enhance a company’s ability to undergo a successful turnaround and disburden the CEO and CFO.
In the past, Interim Management was mostly the domain of larger companies. However, Market Studies report that there has been a noticeable increase in the demand of interim executives by small to mid-sized enterprises (SMEs). Also, private equity firms are seeking more than just Interim CEOs or CFOs, as they realise that their portfolio companies need an influx of specific executive talent in order to grow them in a changed environment. Like many others at this time, private equity firms are using interim executives to help them mitigate risks and execute changes to grow profitability and the value of the company.
Need for flexibility in the executive suite.
Ultimately, there is a high chance that demand for Interim Management will continue to increase while the global economy recovers. Why? Although there are firms, which have downsized excessively during the crisis, companies will not be in a rush to hire expensive executives. It is widely believed that lessons out of the economic recession could prompt companies to change their current strategies on human capital. Now more than ever, companies need flexibility in their executive suite to give them the ability to quickly add the needed expertise in order to respond to market changes or to work on specific tasks improving efficiency, growth and profitability.
Source: Dr. Harald Schönfeld, Butterfly Manager - 22 September 2009
latest news index