Interim Management in Business Relocations in High Demand

Dr. Harald Schönfeld, Managing Director of the personnel consultancy Butterflymanager, specialized in the placement of interim managers, based in Schwerzenbach, Switzerland, points out that there is an increasing demand for specialists for relocating businesses from Germany abroad. This is currently the most sought-after segment in time management. This is also related to the fragility of supply chains.

(Schwerzenbach) “The commissioning of interim managers for projects involving the relocation of businesses abroad is steadily increasing,” states Dr. Harald Schönfeld, Managing Director of the personnel consultancy Butterflymanager, which specializes in the placement of temporary executives. He clarifies: “The assistance in the flight of companies from Germany currently represents the fastest-growing demand segment in interim management.” Interim managers are traditionally brought into companies for restructuring and innovation projects or simply to temporarily fill vacant leadership positions until permanent managers are found as successors.

Unpredictability of Energy Policy, Wage Levels, and EU Regulations

Dr. Harald Schönfeld

He adds: “In addition to costs, it is primarily the unpredictability of German energy policy that apparently prompts business leaders to fundamentally question the production location in Germany. Many mandates for interim managers aim to compare with other countries in the EU, as well as in Asia or South and North America, as a basis for future location decisions. Of course, not only energy costs play a role, but also wage levels and the increasingly stringent regulatory requirements in the EU.”

Fragility of International Supply Chains

According to the interim management expert, there is another aspect to consider: the revealed fragility of international supply chains. The head of Butterflymanager explains: “In light of the recurring difficulties in global logistics chains since the pandemic, more and more companies are placing value on producing their products as close as possible to the continents and countries where most of their customers are located.”

The diversification of supply chains and the regionalization of production are high on the agenda of many corporate strategies, as Butterflymanager has observed in the project inquiries for which interim managers are sought. Dr. Harald Schönfeld explains: “In addition to cost levels, many manufacturing companies are simply focusing on supply capability in their strategy. International just-in-time production processes may reduce costs, but in times of increasing crises—from the blockage of the Suez Canal to the impacts of the Middle East conflict to the unresolved question of Taiwan’s future—more and more companies are concerned that their production will not come to a standstill due to a lack of supply of pre-products.”

De-Risking Strategies in Demand

Butterflymanager’s head, Dr. Harald Schönfeld, points out that about one-third of all imports from China to Germany consist of pre-products that are indispensable for German industry. This includes electronics, machinery, chemical products, textiles, and metals. “The de-risking strategy aimed at by the EU Commission for years has not reached Germany,” analyzes the intermediary of interim managers. Accordingly, the demand for temporary executives who can support companies in their specific de-risking strategies is high.

Photos: © Butterflymanager