Photo credit: PhotoMIX-Company für Pixabay (via Canva pro)
In the fast lane in the automotive industry with interim managers
The automotive industry is facing an epochal transformation. There are many reasons for this, from stronger global competition with new technology players from the USA and China to changing customer requirements and stricter regulations, particularly with regard to sustainability. In this dynamic environment, the use of interim managers and experts is becoming a strategic necessity for companies.
Here are some reasons why companies should rely on temporary managers:
Flexibility and speed:
Rapid model changes and innovation adjustments in the automotive industry require flexible and fast solutions. Interim managers offer the opportunity to react quickly to project-related requirements without having to go through lengthy recruitment processes.
Additional capacities for projects:
Without additional resources, many projects could not be realised on time. Interim managers not only bring expertise, but also the necessary experience to successfully implement complex projects in the technical, administrative and supply chain areas.
Demand in the supply industry:
The supplier industry, which follows the developments of the OEMs, needs even more temporary project managers due to the many challenges such as machine relocations, process changes and plant expansions.
Helping people to help themselves:
Interim managers act as a catalyst for internal developments. They motivate and manage employees in order to develop effective solutions together. Their approach is geared towards coming in so that they can leave again. To use some common metaphors. Their job is not to bring in fish, but to teach them how to fish.
Transformation support in the CASE era:
The current phase of major change in the automotive industry is often referred to as the CASE era. CASE stands for Connectivity, Autonomous Driving, Sharing & Services and E-Mobility. In order to master the necessary transformation processes of this era, the automotive industry is now dependent on flexible, competent and temporary reinforcement. Interim managers help to ensure the necessary professionalism, innovative strength, efficiency and implementation expertise.
In the changing automotive industry, the ability to react flexibly to challenges and at the same time secure competitive advantages is crucial. The use of interim managers and experts is therefore not just a temporary solution, but a strategic investment in the long-term success of a company.
Cost analysis: Interim manager vs. permanent employee in the automotive industry
According to an AIMP (Arbeitskreis der Interim Management Provider) survey from 2023, 32% of respondents cite the fact that interim managers are considered too expensive as the main reason for rejecting them. However, the question of whether an interim manager is more expensive than a permanent manager requires an in-depth analysis of the cost structures and the added value that each approach offers.
The cost structure of an interim manager:
The costs of an interim manager may seem high at first glance, as according to analyses by the AIMP, the daily rate is around 0.8% to 1% of the gross annual salary of a comparable permanent manager. This may also include accommodation and travelling expenses.
But:
Permanent employees also receive holiday pay, sick pay, employer's social security contributions and other benefits. Interim managers are not entitled to these benefits, resulting in potential cost savings. A closer look at the total cost of a permanent manager, including bonuses, non-wage labour costs, holidays, pension, healthcare and company car benefits, shows that a permanent employee with a salary of €100,000 actually costs around €175,000. In addition, no severance payments have to be made to interim managers if they do not fulfil the expected performance.
The added value of an interim manager:
In addition to the pure cost structure, the actual added value should also be included in the assessment of interim managers.
1. rapid integration and project realisation:
Interim managers have a short onboarding phase and get down to business quickly. Change and digitalisation projects are implemented efficiently, saving time and money.
2. experience and expertise:
The experience of interim managers, particularly in areas such as change management, is crucial. A study conducted in 2015 shows that over 80% of client companies state that interim managers have all problems under control within 40 days. This significantly shortens the duration of projects.
Return on Interim Management (RoIM):
From an entrepreneurial perspective, the RoIM is crucial. The study "Intern Leadership Personalities" by Helmut Schmidt University shows that 86% of interim assignments achieve a positive return on investment. An interim manager is therefore seen as an investment that exceeds the value of the assignment through added value and success.
An interim manager may seem more expensive at first glance, but a closer analysis of the total costs and the added value achieved often shows that investing in interim management is a smart strategic decision. The rapid project success, experience and flexibility make interim managers a de facto cost-effective option.
Interim Management: Key industries
The importance of interim managers extends across various industries, with certain sectors benefiting particularly strongly from their skills and experience. Data from Statista shows how interim managers' projects are distributed across the various sectors.
Here are the five most important sectors for interim managers:
1. automotive (15 % of projects)
As described above, the automotive industry faces a variety of challenges. Companies in this sector that use temporary management can benefit from experts who successfully implement specific projects in various areas such as project management, supply chain and production optimisation.
2. mechanical & plant engineering (15 % of projects)
In mechanical and plant engineering, the efficiency of production processes plays a decisive role. Companies can utilise temporary managers to introduce innovative solutions, overcome technical challenges and increase the efficiency of their operations.
3. metal, electrical & intermediate products (14% of projects)
The versatility of the metal and electrical sector offers scope for temporary management to deal with specific challenges in the areas of production, process optimisation and quality management.
4. pharmaceuticals / biotechnology / medical technology / healthcare (11 % of projects)
In highly regulated industries such as pharmaceuticals, biotechnology, medical technology and healthcare, companies need to fulfil compliance requirements and ensure quality management. Temporary managers can provide crucial support here.
5. IT & T.I.M.E & Print (7 % of projects)
The information technology, telecommunications, media and print industries (IT & T.I.M.E & Print) are constantly changing. Companies can utilise temporary management to support them in their digital transformation, build efficient IT structures and implement innovative solutions.
A cross-section of the key industries
A common feature of these key sectors is the need for temporary but highly qualified managers. Interim managers are needed here in particular in order to be able to react flexibly to acute challenges. They bring with them a broad range of experience to support companies in various phases of their development.
The statistics from Statista show that interim managers are in demand in various sectors. The cross-industry deployment of these temporary managers emphasises their versatility and relevance for companies that need to react dynamically to market changes.
The variety of tasks performed by interim managers: strategic levers for corporate success
In the automotive industry in particular, interim managers play a decisive role in overcoming a wide range of challenges. Their tasks are as diverse as the requirements that arise in the changing markets characterised by CASE. Here are the most important areas of responsibility of interim managers:
1. plant management:
Interim managers assume responsibility for the efficient management of production facilities. This includes the optimisation of production processes, cost control and ensuring quality standards.
2. crisis management:
In critical situations, whether due to market turbulence or internal challenges, interim managers take on the role of crisis manager. Their aim is to respond quickly and effectively to challenges in order to get the company back on track.
3. quality management:
Interim managers play a central role in quality management. This includes monitoring and improving series, customer, supplier and sample quality to ensure the highest standards.
4. supplier development/troubleshooting:
The relationship with suppliers is crucial. Interim managers work to develop suppliers and solve problems (troubleshooting) to ensure a smooth supply chain.
5. industrial engineering:
The optimisation of production processes falls within the scope of industrial engineering. Interim managers identify efficiency potential and realise it in order to increase productivity.
6. production management:
From the planning process to the implementation of lean principles, interim managers take over the entire production management. This includes the planning, distribution and relocation of resources.
7. project purchasing:
Interim managers are active in project purchasing and ensure that materials and services are procured efficiently so that projects can be realised smoothly.
8. logistics planning, management and optimisation:
Logistics processes are crucial to success. Interim managers take over the planning, management and continuous optimisation of logistics processes.
9. project management from development to SOP (Start of Production):
Interim managers play a key role in the entire project management cycle. From development to the start of series production, they ensure that the project runs smoothly.
Conclusion: Interim managers support the company's success
To summarise, interim managers not only bring specialist knowledge, but also a special ability to quickly integrate and implement strategic measures. Their temporary presence in companies enables them to tackle specific challenges with a fresh perspective and achieve results quickly. These key competences make them strategic levers for the success of companies, especially in the CASE era.