We currently have a special situation on the market. The external factors – Covid, climate, the transformation of the labor market – are changing a lot. However, the internal organizational structures of companies often remain the same. This opens up a large gap between the companies that have been newly founded or have already been so transformed that they embody the new era. And those companies that are stuck in the old world. In the latter case, good managers are looking to move on.
Why exactly?
They see no future. We are seeing an increasing number of inquiries from managers who have been in good positions in well-known companies for years. Where previously people would have said: you have to stay there. But now it is more risk than gain.
Conversely, managers are quickly replaced if they do not deliver what is expected of them.
There is a lot of energy for change, you can feel it. Due to the multiple crises, companies are being reorganized or bought. And then a new management is consciously sought. Often because the owners or stakeholders want to reorient a company and realize that the management cannot or does not want to go along with the path. This dynamic in the market contributes to the fact that we do not have many open searches, but rather covert ones.
How does something like this work?
There are different levels of confidentiality, non-disclosure agreements that are signed. We are currently looking for a company with a very high level of confidentiality. We do give the candidates some key points, but concrete information is only available after they have signed an NDA (non-disclosure agreement, note) and if they have made it onto the shortlist.
There is a risk that people who do not fit the profile at all will apply. What quota should we expect?
In a supervisory board search that we conducted two months ago, we had over 300 applicants. The rate was less than 30 percent.
Are you looking for contrasting personalities or similar managers with a small upgrade?
When it comes to restructuring, transformation and crisis, companies consciously seek out other profiles. The CFO, for example, is playing an increasingly important role and is increasingly moving into CEO positions.
Is this to be welcomed?
We try to raise awareness that you shouldn’t follow the path you already know. There are a lot of people who would be interested and could add value. But I sometimes get the impression that stakeholders and owners feel that only the same five people are considered for a position and they already have one of them.
If a manager is replaced during his term of office – how surprised is he? A good manager will know whether he has done his job well or not. And whether he has the support of the stakeholders. I would even go so far as to say: If someone is completely surprised that he is being replaced at the top, he may not have had the necessary feeling for the company.
Isn’t there perhaps something leaking out beforehand?
You have to be very careful because that leads to a lot of unrest. We saw that with Volkswagen and Mr. Diess, where everyone knew in the background that something was going to happen. Nothing was public or official, but the media was full of it. That did the company more harm than good. It was a good example of how not to do it.
Where do managers go who have been replaced?
It will be very difficult for them to find something if they do not accept the new working world and management styles. This often has nothing to do with age, but with the mindset. Once you reach a certain level, the air becomes very thin at the top.
