Number of inquiries up by 15%; utilization up by 7 ppt’s; market sentiment up from 2.5 to 2.0 on a scale from 1 (best) to 6 (worst) – all vs prior year. The main indicators in the Ludwig Heuse survey of interim managers point to the continued acceleration of the interim activity in the D-A-CH region in 2022.
The results are based on between 900 - 1,000 responses. Assuming that the busiest of those polled are less likely to participate than those on a more relaxed schedule, the numbers may even underestimate the actual climate. But although all this points to decidedly good health, there is no indication that the interim market is undergoing rapid or fundamental change: the 2022 indicators are on similar levels as the (pre-Covid) ones for 2018 and 2019.
Why are interim managers hired? Projects in need of a manager and temporary demand for more managerial fire power score 25% and 24%, respectively. The vacancy to be bridged comes in a close third, with 23%. Crisis, restructuring and turnaround account for a further 19%. This is great news: Customers clearly and overwhelmingly look to interim managers for real added value, not just to keep the plane on course.
50% of the assignments in the sample were mediated through agencies, 40% were due to the interim managers’ own efforts, a further 5% came via headhunters. Remarkably, online platforms accounted for only 2% of the matches. Can supposedly hyper-rational interim work really be slower in turning digital than rosy-cheeked online dating?
The most intriguing part of the survey deals with project speeds (fast) and the customers’ return on investment (high). For the full results (in German only) see here.
Like jet stream navigation, the livelier market is demanding: interim execs will need to be even more flexible when transitioning from one project to the next; many will invest in a sharper profile – see my recent note on this topic. In view of rising fees, customers will more often be tempted to hunt on their own and cut out the mediator. Agencies, on the other hand, will no doubt further improve the quality of their executive pool and the agility of their recruiting and matching processes.
Dietmar
LUCILIUS INTERIM Dr Dietmar Scheja
Financial Leadership On Demand
