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Interim management in the automotive industry: shaping change, strengthening competitiveness
The automotive industry is undergoing radical change. CASE (Connected, Autonomous, Shared, Electrified) is shaping the industry and leading to rapid changes in market conditions. To remain competitive, companies need to be flexible and agile. Interim management is a strategic response to this.
As experienced professionals who take on temporary tasks in companies, interim managers bring in-depth expertise and industry knowledge to the table. They
- know the challenges and opportunities of the industry.
- are familiar with the latest trends and technologies.
- have a broad network of contacts.
In the automotive industry, interim management can be used in various areas to support OEM suppliers in adapting to changing market conditions. Here are some examples:
1. Restructuring and transformation:
Interim managers help with the restructuring of company processes and the transformation of the business model. Possible tasks include
- Detailed process optimisation:
- Analysing production processes and identifying weak points
- Implementation of lean management and Six Sigma to increase efficiency
- Optimising the supply chain and reducing costs
- Realignment of the business model:
- Developing new strategies for the future of the company
- Opening up new markets and customers
- Diversification of the product and service range
- Implementation of innovations:
- Introduction of new technologies and production methods
- Development of new products and services based on current markettrends
- Promotion of a culture of innovation within the company
2. Crisis management:
In crisis situations, such as a sudden slump in demand, interim managers can act quickly and effectively to minimise the negative impact on the company. Interim managers can take on the following tasks in crisis management:
- Intervene quickly and effectively:
- Stabilisation of the situation through immediate measures
- Identifying the causes of the crisis and developing solutions
- Communicating with all stakeholders and building trust
- Development of a reorganisation plan:
- Analysing the company's financial situation
- Creation of a restructuring and reorganisation plan
- Negotiations with creditors and investors
- Implementation of restructuring measures:
- Cost reduction programmes
- Staff reduction programmes
- Sale of parts of the company
3. Project management:
Interim managers can lead complex projects, such as the introduction of a new IT platform. The services of interim managers in project management include
- Leading complex projects:
- Definition of project goals and milestones
- Creation of project plans and budgets
- Managing project progress and project risks
- Co-operation with internal and external teams:
- Leading and motivating the project team
- Communicating with all stakeholders
- Ensuring compliance with deadlines, costs and quality standards
- Successful project completion:
- Achieving the project goals
- Adherence to the budget and schedule
- Ensuring the sustainability of the project results
4. Change management:
Interim managers can shape change in companies and support employees in adapting to new processes and structures. They can take on the following tasks in this context:
- Shaping change in the company:
- Development of a change vision and strategy
- Communicating the changes to employees
- Supporting employees in adapting to new processes and structures
- Promoting a culture of change:
- Creating an open and transparent communication culture
- Building trust and acceptance for change
- Development of personnel development programmes
- Anchoring the changes in the company:
- Ensuring the sustainability of the change process
- Measuring the success of the changes
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Adaptation of the change strategy if necessary
Cost efficiency through interim management in the automotive supply industry
New technologies, tougher competitive conditions and volatile markets require companies to be able to adapt quickly and flexibly. Especially in critical phases of a company's development, the use of interim managers can be a cost-effective solution for successfully managing the necessary changes.
But is it really worth using them?
Cost comparison: interim managers vs. permanent employees
Sample calculation:
Permanent employee:
Salary: € 100,000
Employer's incidental costs: € 15,000
Holiday entitlement: €12,000
Further training: € 4,000
Sick days: € 8,000
Overheads: € 30,000
Total: € 169,000
Interim manager:
According to AIMP analyses, the daily rate of an interim manager is on average 0.8 % - 1 % of the gross annual salary of a comparable permanent position. This means that the annual salary of a permanent employee would be used up after just 169-211 working days. After all, according to a study by Helmut Schmidt University, interim managers work an average of 50 rather than 40 hours per week, meaning that the effective working days increase by 15 % to 194 - 243 compared to a permanent position.
However, the question of the number of working days alone is not decisive. Rather, it is a question of whether the interim manager can still generate decisive added value for the company in this relatively short period of time.
The following arguments can be used in favour of this:
- Quick familiarisation: according to a recent study, interim managers only need 20 days to have all relevant topics under control.
- High level of expertise: Interim managers have extensive experience in the sector and in overcoming complex challenges.
- Flexibility: The deployment of interim managers can be flexibly organised and adapted to the needs of the company.
From a business perspective, the return on investment (ROI) or, in this case, the return on interim management (ROIM) is crucial and here are the facts:
- 71% of projects achieve a positive ROIM.
- The average ROIM is 5.47 euros per euro invested.
- In 14% of the projects, a ROIM of more than 10 euros is even achieved.
Interim management in practice
Case study: Successful implementation of a quality system in the automotive industry.
The challenge:
A supplier of drive shafts for the automotive industry was faced with the challenge of implementing a functional quality system. The existing system, which had been copied from another company, was not working effectively and was also too complicated and chaotic to use.
The solution:
The use of an experienced interim manager from the automotive industry with 20 years of experience. The interim manager analysed the situation in the company and developed a plan to implement a functional quality system.
The most important measures included
- a major reduction in documentation and paperwork.
-
a focus on teamwork, with a good understanding of quality and appreciation of employee activity.
Results:
- Implementation of a practical quality system
- Training of the local quality manager, who should be active after the end of the project
- Periodic audit by external company without major or minor deviations
- Ppm: 3.5
- Reduction of internal rejects from 12.7% to 3.2%
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Successful realisation of a rehearsal
Conclusion:
Interim management proved to be an effective solution for implementing a functional quality system quickly and efficiently. The use of an experienced interim manager with industry knowledge and expertise led to significant improvements in quality and productivity within eight months.
The role of interim managers in the transformation of automotive suppliers
Interim managers in the digital transformation
The digitalisation and electrification of vehicles requires automotive suppliers to undergo a profound transformation of their business models and processes. Interim managers have the experience and expertise to support companies in the digital transformation. Their tasks in the digital transformation include
Developing a digital strategy: interim managers support companies in developing a digital strategy that is tailored to the specific needs of the company.
- The implementation of digital solutions: Interim managers help with the implementation of digital solutions, such as cloud computing, big data analytics or artificial intelligence.
- Change management: Interim managers prepare employees for the changes of digital transformation as part of change management.
- Risk management: interim managers identify and assess risks in connection with digital transformation
Interim managers in restructuring
In order to remain competitive, many companies need to rethink their structures and processes. Interim managers can play an important role in this process. They take on various tasks when restructuring automotive suppliers. These include
- Analysing the current situation: The interim manager analyses the company's current situation and identifies the problems and challenges.
- Developing a restructuring concept: The interim manager develops a concept for restructuring the company. This concept usually includes measures to reduce costs, increase efficiency and improve competitiveness.
- Implementing the restructuring concept: The interim manager implements the restructuring concept and carries out the necessary changes in the company.
- Coaching and mentoring employees: The interim manager coaches and mentors the company's employees in order to prepare them for the changes and support them in implementing the restructuring concept.
Interim manager for expansion
Suppliers need to adapt their business models and expand in order to remain competitive. Interim managers can play an important role in the expansion of automotive suppliers. They have experience in the automotive industry and know the challenges associated with expansion. Interim managers can be particularly helpful in the following areas when automotive suppliers are expanding:
- Strategy development: Interim managers can help companies develop a strategy for expansion. They carry out market analyses, analyse competitors and evaluate the potential of new markets.
- Market entry: Interim managers support companies in entering new markets. They can set up sales and marketing channels, enter into co-operations with local companies and obtain the necessary official authorisations.
- Operations: Interim managers support companies in optimising their production processes and improving their supply chains. They introduce lean management concepts, increase production efficiency and reduce costs.
- Financing: Interim managers can help companies to secure financing for their expansion. They develop financing models, find investors and conduct negotiations with lenders.
Conclusion:
Interim management is a strategic response to the challenges of the automotive industry. By utilising experienced interim managers, companies can react flexibly and agilely to new market conditions, strengthen their competitiveness and successfully shape change.
Interim management can support your company in the current phase of transformation by bringing in temporary expertise and fresh ideas from outside. Our highly qualified interim managers and experts are always available to provide you with comprehensive expertise and solutions.
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