Interim Management: Trends for 2021

Since 2020, the health crisis has significantly impacted the global economy, with historic GDP drops of 8.3% in France, 6.8% in Europe, 3.5% in the United States, 10.3% in India, and growth of 2.3% in China. Some observers predicted an exponential growth of interim management after the lifting of restrictions.

One year into the crisis, how has the interim management market actually performed? What trends are shaping the market during this unprecedented period?

Market Overview in 2019

According to sector analysis by XERFI, the interim management market in 2019 was worth €440M, growing 13.6% annually since 2016. The number of Interim Management Companies (IMCs) was estimated between 90 and 120, with the top ten players representing two-thirds of total revenue. About 2,500 interim management assignments were carried out annually in France, with an average duration of 7 months. Clients were primarily mid-sized companies (35%), large French corporations (29%), private equity actors, scale-ups, and public-interest organizations. Sector distribution was 50% industry, 35% services, and 15% distribution. The French market remains modest compared to Germany (€3B) and the UK (€1.5B).

Impact of the Health Crisis on the Market

Some observers predicted exponential growth in interim management post-lockdown, based on trends after the 2009 crisis. This has not been observed. The crisis is ongoing, with health uncertainties still hanging over the economy. While vaccination brings hope of recovery, uncertainties remain high, and business leaders seek structural insights into a “new normal.”

In 2020, interim management activity fell by 20–25% (source: France Transition). This decrease primarily affected new assignments, as clients adopted a wait-and-see approach. Sectors most impacted were hospitality, automotive, and aerospace.

Market Outlook for 2021

It is risky to predict the future given ongoing uncertainties, but several trends are emerging that may shape the interim management market:

The enthusiasm of senior executives for interim management
This mode of collaboration increasingly attracts executives seeking freedom, meaningful work, and project-based contributions. France has an estimated pool of 8,000–10,000 interim managers. This influx has enriched the skill set portfolio for IMCs while enabling greater selectivity for key assignments.

Interim management: an alternative to recruitment
In the current context, where some permanent hires may be delayed and strategic projects must advance quickly, interim management is a real alternative to launch initiatives, engage teams, and prepare for permanent recruitment.

Remote interim management
Traditionally on-site, interim management has adapted to remote work. Managers must maintain team cohesion, trust, and engagement remotely, balancing autonomy with accountability.

Restructuring, mergers, and acquisitions on the rise
Companies are restructuring and reducing costs to adapt to a “new normal.” Some experts warn of a potential “time bomb” when state aid ends, possibly driving restructuring, divestments, and M&A in 2021.

A solution particularly suited for scale-ups
To accelerate growth and expand internationally, scale-ups increasingly use interim management. This mobilizes experienced leaders to scale operations efficiently.

A powerful accelerator for the recovery plan
The French government’s €100B recovery plan requires speed of execution. Interim managers provide immediate expertise to implement funded projects.

Supporting digital acceleration
COVID-19 accelerated digital transformation by around 7 years (McKinsey). Interim managers, such as Chief Digital Officers, are key to driving digital projects and ensuring business continuity.

Interim management with impact
Companies must adapt strategies to address climate change, resource management, energy transitions, and social responsibility. Interim managers support rapid transformation toward sustainable and responsible business models. Impact Interim Management (IIM) is emerging.

Supply chain reengineering
The crisis disrupted supply chains, creating demand volatility and rising costs. Interim managers provide expertise to diversify supply sources, develop resilience, and optimize operations.

Persistence of balance between transformation and continuity missions
Despite the crisis, mission distribution remains stable: about one-third of assignments replace leaders urgently, while two-thirds focus on transformation.

Interim management: a powerful lever to support the announced economic recovery in France for the second half of 2021!

Rémy Longo

[1] How COVID-19 has pushed companies over the technology tipping point—and transformed business forever