This article from WIL Group - Worldwide Interim Leadership member X-PM, penned by Bernard Etchenagucia, President of X-PM and expert in business dynamics, delves into the evolving role and increasing significance of transition management in today’s dynamic economic climate, particularly highlighting its critical impact on the French economy.

"In a changing economic context, with the rise of freelancing, hybrid work, and AI, interim management is becoming essential for the adaptation and competitiveness of companies.

Faced with a rapidly changing economic landscape, marked by disruptive innovations and significant societal changes, companies are forced to adopt new strategies to remain competitive. They must adapt to the demands of an evolving market while navigating the challenges of hybrid work, the emergence of freelance, the advent of artificial intelligence and the specific needs of seniors. In this context, transition management stands out as a crucial strategic necessity to guarantee the sustainability and development of organizations.

Business transformation is a central issue for French decision-makers. Moreover, according to the PwC CEO Survey, 60% of them think that their organization will disappear within 10 years if their business model does not evolve. A sad reality when we know that half of the companies appearing on the Fortune 500 list in 2000 had disappeared in 2021, due to a lack of transformation. But this remains a complex exercise and subject, again according to this same study, to significant obstacles such as the multiplicity of operational priorities (71%), limited financial resources (56%) and a lack of internal skills. (54%).

A question of life and death!

The war for talent is therefore not an illusion. Indeed, it is easier to acquire technology than to create a team with complementary skills, working together around a common objective! In certain cases, the use of a temporary and transitional external skill will offer the advantage of revisiting the strategy with a fresh eye, and of supporting skill development where necessary.

It is in this context that transition management proves its value. It is crucial for large companies as well as mid-sized companies and scale-ups, providing an effective way to adapt and grow in the face of specific challenges and economic evolution. This approach allows companies to meet their unique needs, making the interim manager an essential strategic partner for leaders who want to succeed in their transformation projects in
complex contexts. Whether to initiate, develop or restructure their activities, interim management positions itself as a catalyst for growth, highlighting its value as a valuable resource for companies.

The transformation of the world of work is conducive to the redefinition of the professional trajectory of seniors.

In addition, the transition manager has changed since the 2000s. Gone is the stereotype of the executive at the end of his career; today, it is a chosen, rich and varied professional path. Studies questioning our relationship to work continue to multiply and draw the same conclusions. New needs and new desires, even “requirements”, are emerging: the quest for flexibility, freedom, and a stronger balance between professional and personal life. In these conditions, the self-employed are far from being only young people who have chosen to start their professional life as self-employed. The phenomenon concerns all generations. Thus, 46% of them are between 25 and 44 years old and more than half are 45 years old and over.

This model therefore offers “senior” workers the opportunity to promote their solid expertise to companies which sometimes struggle to find the resources necessary for their development. This method offers flexibility and helps prepare for retirement. Companies are looking for experts capable of responding to ever more specialized missions. Seniors offer maturity, knowledge, versatility and ability to adapt. Faced with a shortage of resources, seniors, whose operational experience is valuable capital to be leveraged, are an essential part of the solution sought by companies.

While the transition probably requires training and adaptation time, the context likely pushes organizations and seniors to review their methods of collaboration, in a new work configuration. So, in this context, between inflation, rising wages, and the legal retirement age raised from 62 to 64 years, observers in the economic field would have every interest in taking stock of the change that is at work, so that transition management can benefit the entire French entrepreneurial fabric.

Interim management therefore appears to be a key strategy for companies seeking to navigate this changing landscape with agility. This strategic approach, promoting the expertise and flexibility of senior executives, meets a dual requirement: injecting dynamism and innovation into organizational structures while adapting to future work challenges. As a catalyst for sustainable development and competitive advantage, transition management is emerging as an essential tool. It allows businesses to prepare effectively for future economic changes. Interim managers, by facilitating this adaptation, position themselves at the heart of the transformation of companies, ensuring their success and sustainability in a constantly evolving economic environment."