Why economic turbulence is actually increasing demand for CFOs, CEOs and interim leaders
The global economy is entering a phase in which uncertainty is becoming the rule rather than the exception. Geopolitical tensions, trade conflicts, rising capital costs and technological disruption are creating an economic environment that is far less predictable than it has been for a long time. For boards and shareholders, this means that strategic decisions increasingly have to be made in circumstances where the outcome cannot be fully anticipated.
In such conditions, organisations traditionally respond cautiously in the senior executive labour market. Permanent appointments are sometimes postponed, selection processes take longer, and investment decisions are reviewed more carefully. That pattern is also visible today.
Beneath this caution, however, another development is taking place that is less visible: the structural demand for strong leadership is actually increasing.
As markets become more complex, the role of executives is shifting from operational management to strategic navigation. Organisations need leaders who can not only run a company, but also provide direction in a world where geopolitics, technology and capital markets are becoming increasingly interconnected. Rather than managing stability, executives are increasingly required to manage uncertainty.
This shift is particularly visible in senior finance roles. The modern CFO is no longer responsible solely for reporting and financial control. In many organisations, the CFO increasingly acts as the strategic compass of the business. Investment decisions, capital structures, international risks and transformation programmes are more frequently concentrated within the finance function.
This is especially evident in private equity-backed companies, family-owned businesses and fast-growing organisations. In these environments, CFOs and Finance Directors are expected not only to bring financial discipline, but also to actively contribute to value creation and strategic decision-making.
At the same time, demand for leaders in senior general management roles is evolving. CEOs, Managing Directors and business leaders are increasingly selected for their ability to guide organisations through uncertainty and change. In more stable economic periods, operational execution often took centre stage. Today, however, companies are looking for leaders with a distinctly entrepreneurial profile — executives who can maintain direction when circumstances shift, make strategic choices and keep organisations agile.
This development is particularly visible in mid-sized companies and private equity portfolio businesses. In these organisations, responsibility for strategic direction, operational performance and organisational change often sits with the same individual. As a result, the bar for senior leadership continues to rise.
Alongside these developments in permanent appointments, another, less visible process is taking place in the interim market. Although it may sometimes appear that organisations are becoming more cautious about hiring interim executives, a growing latent demand is simultaneously emerging.
Many organisations are temporarily postponing strategic projects — not because they have become less important, but because the timing feels uncertain. Digital transformation programmes, ERP implementations, reorganisations, post-acquisition integrations and transformation initiatives remain necessary, yet are sometimes deferred until there is greater clarity about the economic outlook.
In practice, this leads to a phenomenon increasingly discussed in the market: a growing backlog of interim assignments slowly building up. Projects are not disappearing; they are simply being parked temporarily. Once organisations regain greater confidence in the economic direction, this accumulated demand can reach the market relatively quickly.
This also changes the role of interim management. Interim executives are increasingly deployed for specific strategic assignments — transformations, restructurings, integrations or digital change programmes. Rather than acting purely as temporary replacements, they are increasingly becoming a flexible layer around an organisation’s leadership team.
The executive labour market traditionally moves with a certain delay relative to the broader economic cycle. Periods of caution are often followed by acceleration once organisations need to execute the strategic initiatives they previously postponed.
For that reason, the conclusion may appear somewhat paradoxical. In a world where economic and geopolitical uncertainty seems to be structurally increasing, leadership is not becoming less important — it is becoming scarcer and more valuable.
For organisations, this means that attracting the right leaders — whether permanent or interim — is increasingly becoming a strategic factor in their ability to navigate economic volatility.
