Interim management has proven itself in Germany as an indispensable tool for companies facing rapid change. Whether streamlining logistics processes, implementing digitalization, or restoring financial stability, the interim manager offers tailor-made solutions. Bodo Blanke, IMW partner in Germany uses local examples to show how Interim Management helps with challenges that are global.
The industry is under enormous pressure. Global crises such as climate change, pandemics, geopolitical tensions and digitalization require constant adaptation and flexibility. Especially medium-sized companies in Germany, the engine of the economy, face unique challenges. These companies often do not have the resources of large multinationals, but need to react just as quickly to changes to remain competitive.
In these times, the demand for interim managers in Germany has skyrocketed. These professionals, who come on board temporarily, offer quick solutions to complex problems such as reorganizations, cost savings and digital transformations. The role of interim managers has become essential for companies that need to move quickly without the long-term risk of permanent employment.
Why do German companies choose interim managers?
German companies are known for their efficiency and technical expertise, but even these companies sometimes face obstacles for which they lack the internal capacity or knowledge. Interim managers not only bring experience and expert knowledge, but they also have the ability to get to work without a long familiarization period.
Take, for example, one of the biggest challenges in the German automotive industry: the transition to electric driving. A major German supplier struggled to maintain logistics during the switch from combustion engine parts production to electric vehicles. Logistics costs were skyrocketing, and on-time delivery problems arose. The company hired an interim logistics manager experienced in streamlining complex international supply chains. Within eight months, this manager managed to not only reduce costs, but also improve overall delivery capacity, enabling the company to remain competitive in a rapidly changing market.
Another example comes from German mechanical engineering, where digitalization is playing an increasingly important role. A medium-sized company from Bavaria was facing outdated production processes that were hindering growth. An interim project manager was hired to oversee the digitization of the production process. In less than a year, the company managed to automate their production, increasing efficiency by 25%. This digital transformation allowed the company to strengthen its international position while reducing costs.
The role of interim managers in crisis management
Besides technological transformations, interim managers play a crucial role in dealing with business crises. A well-known example is the situation of a German industrial equipment manufacturer. The company was on the brink of bankruptcy after several years of declining profits. By bringing in an interim restructuring manager, who had experience in rescuing companies in the German manufacturing industry, a complete reorganization was carried out. Departments were merged, loss-making projects were discontinued and new markets were entered. Within a year, the company was more financially stable than ever and ready for further growth.
Another powerful example comes from the German furniture industry. A well-known office furniture manufacturer, which targeted large B2B customers, faced major internal problems in aligning their own sales teams and external distributors. The company had experienced years of communication problems, failed promises to customers and supply chain inefficiencies. An interim sales manager was hired to resolve this situation. Within a few months, a new sales strategy had been implemented, optimizing collaboration between internal teams and distributors. The result was not only a restoration of customer confidence, but also significant sales growth.
Interim management: A proven approach in Germany
German companies are increasingly recognizing the value of interim managers, especially in sectors where quick adjustments are required. In recent years, industries such as automotive, mechanical engineering, and consumer goods have seen the biggest increase in the use of interim expertise. By 2022, the German market for interim management was estimated at more than EUR 2.5 billion, with further growth expected as companies need to continue to adapt to a changing market.
The strength of interim managers lies not only in their ability to deliver results quickly, but also in their independence and objectivity. They are not affected by internal politics and can therefore make tough decisions necessary for a company’s survival and growth. Whether it is cost reduction, restructuring, or navigating complex market conditions, interim managers offer the flexibility and expertise needed to help companies move forward in difficult times.
Conclusion
At its core, the interim manager is a problem solver. These professionals help companies overcome difficult times and set them on a path of growth and success. As the world around them changes, German companies open to interim management remain more flexible and better prepared for the challenges of the future.