Insights into the 5th Annual Horváth CxO Priorities Study: An Interview with Harrison Cober, Interim CEO for Swiss Interim Management

Swiss Interim Management:? Mr. Cober, welcome and thank you for being here today to discuss the findings of the 5th Horváth CxO Priorities Study. Could you explain what the study is about and why it is important??

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Harrison Cober:?thank you for the invitation. The Horváth CxO Priorities Study annually surveys over 770 executives worldwide. Through in-depth personal interviews, it aims to find out which issues are currently concerning top business leaders. Where do they see the greatest growth potential? What strategic issues are they focusing on? What opportunities and risks do they see? The study is very interesting because it gives us a snapshot of what is on the minds of top executives. It can provide us with ideas on which trends in business strategies, technological advancements, and global market shifts are emerging. I am sure there is something in it for every business leader.?

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Swiss Interim Management:?Over 90% of respondents consider digital transformation an important or very important factor for medium- and long-term growth. Therefore, it is the top priority for 2024. As an interim manager, how do you see the impact on your industry??

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Harrison Cober:? I am not surprised. Digital transformation remains the overarching mega-theme. Consider that AI has triggered a strong revaluation in US companies. For example, the top six companies – we're talking about a 30 to 40 percent increase in value. Imagine that.?

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It is clear that every manager wants to advance digitalization in their company as quickly as possible. Simply because it now offers an increase in efficiency that was previously unthinkable. The crucial question is: Where and how do I precisely apply it in my company? After all, the day-to-day business must continue. Most employees are not prepared to deal with the implementation of new AI technologies for the company in their spare time. Everything has to run as smoothly as possible in the background.?

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I think, for us interim managers, this means – and we are already seeing this – that more and more companies will approach us wanting to use our expertise for sustainably designed digitization initiatives. After all, many companies are still at the beginning in this area.?

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And the numbers prove this – the study clearly shows: The use of AI has confirmed its status as a top priority, requiring a robust AI strategy and a clear operating model. The study also shows that about half of the companies are still in the early stages of AI integration. This shows that there is a continuous focus on building internal competencies and embedding AI-driven processes.?

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Swiss Interim Management:?For 90 percent of CxOs, cost efficiency and result orientation are of great importance. How would you interpret this priority??

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Harrison Cober: That was to be expected. However, it should be added that the time of optimizing results through mere price increases to customers is definitely over. Rather, the study shows that two-thirds of the executives, especially in the manufacturing sector, are aiming for structural improvements. This entails a more thorough examination of their product portfolio, beginning with procurement, which, after years of material shortages, now finds itself in a stronger bargaining position. This extends to enhancements in productivity via automation and the implementation of concepts like "shared services" units. These units often bundle administrative and supportive processes to achieve efficiency gains and reduce costs. At the same time, it is very interesting to observe that new jobs are being created worldwide.?

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Another result of the study is the recommendation to think beyond pure cost and result orientation and to initiate a sustainably effective transformation process through structural improvements. Ideally, cost reduction is one of several positive effects.?

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In interim management, we see this trend confirmed: Of course, it is still about providing top expertise for challenges. However, companies are focusing on the medium- to long-term perspective, especially when they see the leverage effects that a well-thought-out digitization initiative, for example launched by an interim manager, can have.?

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Swiss Interim Management: The study shows that serious cyberattacks have decreased slightly, suggesting that companies are better prepared. However, cyber security is still extremely important for 9 out of 10 companies. How do you assess the importance of cyber security??

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Harrison Cober:?Cyber should be a very high priority for every company. Although the number of serious cyberattacks has slightly decreased, this only shows that companies have already made significant progress in strengthening their defenses. However, the threat remains: a security incident can cause financial losses and damage reputations that are difficult to repair. In addition to protecting the sensitive data and systems of a company, it is equally important, which is often not seen at first glance, to protect its reputation and the trust of customers and partners. If customer data is passed on unprotected, it is an irreparable damage. Therefore, a proactive and comprehensive security strategy is essential today.?

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It is also important to understand that cyber security is not just a technical challenge, but also a question of corporate culture. Employees must be trained and sensitized to understand and implement security policies. As more and more business processes and data are handled online, cyber security must be an essential part of the overall corporate strategy. Investing in continuous monitoring, regular security reviews, and modern technologies is a definite "must have" for any company that hosts important data online in any form.?

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Swiss Interim Management:? HR topics have fallen from the highest priority to the fourth rank. How can this be explained??

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This shift can be explained by several factors: On the one hand, the priorities of companies have shifted due to current economic challenges and strategic realignments. Topics such as digitalization, sustainability, and cost optimization have come to the forefront, while HR topics have lost some importance. Another reason could be that many companies have already implemented measures for personnel recruitment and retention. Flexible working models and improvements in "employer branding" have been introduced, which has reduced the immediate pressure for action in this area. At the same time, the study also shows that personnel structures in many companies are lagging behind the changes in the world of work. A certain structural inertia could lead to HR topics being perceived as less urgent, although they should actually have high priority.?

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And unfortunately: the short-term thinking of many companies also plays a role. Due to the current economic uncertainties, some companies are focusing more on short-term goals, causing long-term HR strategies to recede into the background. In addition, the long-term importance of HR topics may be underestimated, especially in terms of "reskilling" and comprehensive culture projects. Despite the drop in the priority list, the importance of HR topics remains high. The study shows that board meetings are increasingly dominated by HR-related discussions, suggesting that these topics continue to play an important role, even if they no longer have the highest priority.?

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From my perspective, investments in a well-thought-out HR strategy, such as through the involvement of an interim manager, are worthwhile. Companies that take the time to attract and retain the right talent benefit from a committed, productive, and loyal workforce.?

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Swiss Interim Management:?Maintaining liquidity has once again become a crucial concern for many companies. Can you relate to this issue??

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Harrison Cober:?First, the ongoing economic uncertainties, exacerbated by the aftermath of the COVID-19 pandemic and geopolitical tensions, such as the war in Ukraine, should be mentioned. These developments have led to a volatile economic environment. Additionally, many companies are facing sharply increased energy and raw material costs. These rising costs intensify the pressure on liquidity, emphasizing the importance of effectively managing available funds.?

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Additionally, shifts in consumer behavior, particularly in retail, play a significant role. The digital transformation and the pandemic have fundamentally altered shopping patterns, potentially causing sales volatility and complicating liquidity management planning.?

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Another factor is the recent shift in interest rates. Following a prolonged period of low rates, interest rates are climbing once more, which heightens financing costs and underscores the need for effective liquidity management.?

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To remain competitive, many companies are? facing the challenge of having to invest in digitalization, sustainability, and new technologies. This requires careful planning of available funds. The lessons from past crises, such as the financial crisis and the COVID-19 pandemic, have clearly shown many companies the importance of sufficient liquidity reserves.?

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As you can see, a whole range of factors lead to companies recognizing the importance of a robust financial foundation in an uncertain economic environment. Basically, it's a very human behavior: in times of uncertainty, one simply longs for more security. A financial cushion is definitely part of that.?

Swiss Interim Management:? Mr. Cober, thank you for the interview.

Click here to read the interview in German