In short: transformations are won or lost in execution, and execution rests on a handful of people. If you are responsible for a restructuring, a turnaround, a carve-out or a change of strategy, you need leaders who can make decisions under uncertainty, create transparency quickly and still bring the organisation with them. This article sets out which roles matter in which situation, why appointments fail, and how to run a search well when time is short.
What we mean by transformation
In executive search, transformation describes a situation in which a business is changing fundamentally and the existing leadership is no longer automatically the right fit. Typical triggers include:
- Restructuring or turnaround under pressure on earnings or liquidity
- A carve-out from a group
- A buy-out and a new ownership structure
- A change of strategy or business model
- Digital and AI programmes, or a redesign of the operating model
- The loss or replacement of a member of the leadership team
What these situations have in common: a great deal of change, very little time and nowhere to hide. Shareholders, lenders and employees scrutinise every leadership decision, all the more so when earnings or liquidity are under strain.
Why transformations fail on leadership
It is rarely a lack of strategy or capital. In our work, the same patterns come up again and again:
- The leadership problem is never named. Role profiles tend to describe where the company has been, not the job that needs doing over the next few years. We explain why this is one of the main reasons C-level appointments fail here.
- Companies recruit for peace. They call for radical change, then fill the key roles with the most comfortable candidate. More on this in You demand transformation, but you recruit for peace.
- Industry experience is overrated. Insisting on fifteen years in the same sector can shut out exactly the outside perspective a turnaround needs. Our view on industry DNA.
- The CRO arrives too late. According to various studies, only 20 to 25 per cent of decision-makers recognise in time that a Chief Restructuring Officer is needed. This piece looks at why boards discuss the question but do not decide it.
The key roles in a transformation
Which role to fill first depends on the situation. These are the positions we are asked to fill most often in transformations.
CEO, COO and managing directors
The leadership team has to establish transparency fast, take hard decisions and still keep the organisation on side. In a turnaround, what counts is who acts when there are only days of cash left, not who produces the best slides. We describe the difference in Managers polish slides, doers save cash.
Chief Restructuring Officer (CRO)
The CRO steers the restructuring and is often the most important point of contact for lenders and investors. What matters is that they deliver results from day one rather than opening with lengthy analysis and rounds of consultation. See our piece on private equity turnarounds.
CFO with restructuring experience
A CFO who has been through restructurings strengthens the confidence of investors and lenders, improves operational efficiency and puts the financial foundations under a strategic realignment. People often talk about a “CFO+”. What that means, and when you need a CRO instead, is covered in CFO+ or CRO? and in The role of the CFO, CTO and CRO in corporate transformation.
Chief Transformation Officer and programme leads
Large transformation programmes need someone who brings the workstreams together, sets priorities and follows them through, supported by programme and performance managers who make progress measurable.
Leaders in digital, data and AI
Many transformations today are also technology programmes. They call for leaders who can turn technology into measurable business results.
Hands-on advisory board members
An experienced advisory board can both support and challenge the leadership team through a transformation, provided the board agrees on its priorities. This piece shows how a lack of clarity at board level puts off even strong CEO candidates.
How to recognise the right leader for a transformation
At this level, CVs tend to look alike: big titles, international postings, spotless references. The difference lies elsewhere:
- Acting under uncertainty. You need people who take ownership and make real decisions even when not all the facts are in. See why private equity needs character, not perfect CVs.
- Delivery over representation. A carve-out or a radical reorganisation needs leaders who roll up their sleeves rather than conduct from the podium. More in our piece on hands-on leadership.
- Resilience under pressure. When things are serious, you do not need a perfect feel-good culture; you need leadership that creates clarity (When the house is on fire). A crisis also shows who really wants the job (read more).
- Handling the board. Many CEOs fail not because of the market but because of too many competing expectations from above. Good candidates clarify priorities before they accept (why CEOs fail because of their boards).
The role description matters too. If the profile is too narrow or describes the wrong job, a transformation can fail before the first interview has taken place (When the transformation fails at the job description).
Interim or permanent?
Interim managers are available quickly and bring flexibility, particularly in a crisis, when there are gaps in the team or when the current management is not delivering. They can, however, add considerably to costs. We weigh up the trade-offs in Opportunities and risks of interim management. In practice, key roles are either bridged on an interim basis or filled permanently straight away, depending on the situation.
Speed is part of the leadership task
In a transformation, a key role often has to be filled within a few weeks. Every week without a decision costs performance and trust, as we show in our piece on what a vacant leadership role really costs. At the same time, strong candidates drop out when the process is poorly run: conflicting priorities on the board, long approval loops, no clear rules. More in 50 per cent of candidates drop out before an offer is made and Speed is a leadership signal. A fast, well-run process shows candidates how the business is led.
Assessing the existing management
Not every transformation needs new faces. Often the first question is whether the current team can carry the transformation and where exactly the gaps are. A leadership assessment gives you a robust answer before any roles are refilled.
After the appointment: the first 100 days
The work is not done once the contract is signed. Newly appointed leaders have to build trust quickly, set priorities and deliver early results. That is why we support leaders and their teams through the first 100 days and the wider transformation.
From turnaround back to growth
Once the turnaround is achieved, the job often changes fundamentally: the agenda shifts back to investment, new markets and new capabilities. Whether the same CEO is still the right person is the question we explore in From turnaround back to growth. For our view on the growth phase, see Growth & Value Creation.
Frequently asked questions
How quickly can a key role be filled in a transformation?
Often within a few weeks. That is why we also fill managing director, CRO, CFO and transformation roles at short notice, on an interim or permanent basis.
When is a CFO with restructuring experience enough, and when do you need a CRO?
It depends on whether the restructuring is mainly financial or operational, and on who is to answer for it to lenders and investors. Investors and advisers use these terms in different ways, so it pays to define the role precisely before the search begins.
Can the existing management carry the transformation?
A leadership assessment gives you a robust answer. It shows where the team is strong and which gaps need closing before or during the transformation.
Who handles the assignment?
A partner, in confidence and directly. Never delegated.
Facing a transformation and want to talk about leadership? Speak directly to a partner.
