Unleashing Interim & On-Demand Expertise: Accelerating Leadership in Life Sciences and Investor-Backed Healthcare
Interim and on-demand leadership represents a critical response to the increasing complexity and dynamism of today’s business landscape.
Interim and on-demand leadership represents a critical response to the increasing complexity and dynamism of today’s business landscape. The traditional model of hiring full-time executives may not always be the optimal approach for companies navigating transitions, unexpected challenges, or rapid growth. Interim and on-demand leaders offer a flexible and agile solution to these challenges, providing specialized skillsets, rapid ramp-up times, and the expertise to drive change and innovation effectively.
The significance of independent on-demand leaders, working either full-time or on a part-time (fractional) basis, is particularly pronounced in the project economy, where work is structured around specific deliverables or outcomes rather than traditional job roles. As the project economy takes center stage (Harvard Business Review, 2021), companies can easily integrate on-demand talent into this environment, leveraging them to access specific skills, enhance agility, and optimize costs.
Organizations seeking to navigate today’s rapidly changing business landscape require a different mindset and approach to leadership, one that embraces the value of interim and on-demand leaders as significant contributors to progress. Companies that proactively orchestrate their leadership needs in this way exhibit five key characteristics: close coordination of cross-functional management of in-house and interim and on-demand leaders, strategic hiring and engagement of necessary in-house and interim and on-demand talent, support for managers in the recruitment of interim and on-demand leaders, effective allocation of work among in-house and interim and on-demand team members, and alignment of talent strategies with overarching business objectives (MIT Sloan Management Review and Deloitte, 2022).
Interim and on-demand leaders are particularly effective in investor-backed healthcare and life sciences organizations. The complexity of these businesses is magnified by the convergence of milestone-based leadership, multi-tiered regulatory oversight, and numerous intersections among constituents and stakeholders (among other factors), demanding continuous leadership evolution and agility. Interim and on-demand leaders facilitate seamless continuity in management of critical functions across the entire value chain or offer targeted, project-specific output of value-critical or transformation initiatives.
Creating Value through Interim and On-Demand Leadership
Interim and on-demand leaders commonly are enlisted to:
- Boost flexibility: Interim and on-demand leaders enhance flexibility, particularly during periods of transition. Whether prompted by team adjustments or deliberate initiatives (e.g., new market entries, product launches, acquisitions, functional and operational projects), companies require flexibility to navigate uncertainties and establish options based on insights and experiences gained from immediate situations that inform long-term strategic and associated leadership needs.
- Accelerate speed: Interim and on-demand leaders can expedite time-sensitive projects, such as product launches and growth initiatives, while also cultivating innovation through fresh perspectives and skillsets. Equipped with clear directives and authority tailored to the specific situational context and strategic framework, these leaders are primed to make an immediate impact upon arrival.
- Access specialized skills: Interim and on-demand leaders provide quick access to specialized skills and expertise that may be lacking within an organization’s current team. As life sciences and healthcare organizations reimagine their business models through technology-driven innovation, such as AI and gene sequencing (Deloitte, 2021), these leaders offer an exceptionally compelling value proposition — many experts in these fields are simply inaccessible otherwise.
- Provide capable, hands-on transitional leadership: Interim and on-demand leaders embody a blend of strategic thinking and practical execution. They excel in devising intelligent strategies and ensuring their timely and precise execution. This helps incumbent executives minimize the opportunity cost associated with delaying critical initiatives due to competing priorities, budget and capital constraints, and limited talent availability, while sidestepping more expensive consulting engagements.
- Amplify value creation: Interim and on-demand leaders serve as a powerful and cost-effective lever for value creation. They provide rapid access to proficient, results-driven leaders or tasks involving execution, start-ups, or turnarounds.
- Cultivate embedded leadership: Unlike traditional consulting firms, interim and on-demand leaders integrate deeply within client organizations. This direct involvement demonstrates accountability for results and a profound understanding of organizational culture — the synergy that acts as a catalyst for success, aligning leadership actions with core values and norms. They create roadmaps, repeatable processes, and ongoing capabilities that survive their engagements.
The Strategic Imperative of Interim and On-Demand Leadership
In the current environment, normalcy remains elusive, with constant change and challenges defining the new status quo. Within healthcare and life sciences, a multitude of factors — ranging from groundbreaking discoveries and shifting consumer behaviors to financial dynamics, supply chain priorities, regulatory shifts, digital transformation, reimbursement complexities, budget constraints, and competitive pressures — converge to present organizations with a mix of unprecedented challenges and transformative opportunities.
Within healthcare, there is a well-documented shortage of talent, acutely felt in the escalating deficit of nursing staff and other frontline workers. According to a report from Definitive Healthcare, one in five healthcare professionals exited their jobs since 2020, with up to 47% contemplating leaving their current roles within the next two years (Definitive Healthcare, 2023). This trend includes a significant level of dissatisfaction among nurse leaders. Moreover, turnover is not limited to staff positions; rather, it extends to the executive suite as well.
According to PWC’s 26th annual global CEO survey, 67% of healthcare CEOs highlighted labor and skill shortages as significantly impacting profitability, exceeding the global average of 52% among all CEOs (PwC, 2023). This underscores the necessity for a profound reinvention of the healthcare delivery model, leveraging technology to improve both patient and employee experience. However, given already alarming rates of burnout among healthcare leaders (WittKieffer, 2022), adding more responsibilities to their already full plates is a risky proposition at best. The capacity and skills required to define and implement this essential reinvention are simply not widely available in-house.
The executive labor market in life sciences is similarly challenged, encompassing core areas like research and development alongside emerging fields, such as AI and data science. The U.S. Bureau of Labor Statistics projects a notable 11.9% growth in employment for medical scientists from 2022 through 2032, a stark comparison to the estimated 2.8% growth across all occupations (CBRE, 2023). Even with a temporary slowdown and recalibration in capital formation within life sciences post its peak in 2021, the industry saw the completion of nearly 1,000 seed or series A investment transactions within the pharmaceutical and biotechnology sectors in 2023 (PitchBook, 2024).
The enduring, long-term trends driving demand for talent across all levels represent a tale of skill transition and scarcity. An alarming trend is the decline in the representation of physician-scientists, historically pivotal in NIH grants and breakthrough innovations, now accounting for only 1.5% of the biomedical workforce, down from 4.7% in the 1980s (Kwan and Gross, 2023). While enrollment in MD/PhD programs is on the rise, increasing from 5,010 in 2011/2012 to 5,830 in 2020/2021, and a growing percentage of matriculating medical students express intentions to engage in research during their careers, the supply of talent is failing to match the escalating demand. This discrepancy is reflected in notably lower unemployment rates among scientists, with rates standing at 2.2% for biological scientists, 1.2% for biomedical engineers, and a mere 0.5% for medical scientists in 2022, contrasting with the total U.S. unemployment rate of 3.4% (CBRE, 2023).
The digital and AI revolution continues to upend traditional research, development, commercialization, production, and patient engagement. Investor-backed healthcare companies are currently grappling with talent shortages, particularly in AI-related roles. The AI in healthcare market is forecast to surge from $20.9 billion in 2024 to $148.4 billion in 2029, growing at a CAGR of 48% (Markets and Markets, 2024), highlighting a significant demand for AI expertise. Healthcare organizations are leveraging AI and automation to enhance operational efficiency, precision, and patient outcomes by deploying these state-of-the-art technologies in various areas, such as medical imaging analysis, predictive diagnostics, personalized treatment planning, and drug discovery (Grand View Research, 2024). To maintain a competitive edge, organizations are rapidly immersing themselves in AI experimentation, with on-demand talent serving as a cost-effective way to explore various AI capabilities across different facets of the enterprise before committing to substantial investments.
Companies in healthcare and life sciences markets often encounter distinct periods of specialized requirements. For instance, during transitions between different phases of product lifecycles, or at various stages of private equity/venture capital investments, organizations may benefit from bringing in fractional or full-time interim leaders, such as a CFO, vice president of finance to augment the CFO, or CHRO, to provide support in the initial stages and then transition to permanent roles as the company evolves. Interim and on-demand leaders not only help to stand up critical functions but also scale them to support rapid growth and integration, adapting to the company’s evolving needs.
Moreover, in challenging funding environments, companies are compelled to reassess capital allocation and spending strategies, including the strategic timing of key hires. This adaptability is critical for organizations to navigate uncertainties and make informed decisions that align with their growth trajectories and financial objectives.
Historically, the consulting industry witnessed significant growth, reaching $300 billion in the U.S. market in recent years (Forbes, 2023). However, while companies traditionally relied on management consulting services, a shift is now occurring as organizations seek alternatives to have value-added work done at a lower cost. In 2023, consulting growth slowed to a modest 5%, accompanied by reductions in consulting staff and project delays. Currently, 86% of U.S. clients plan to decrease spending on consulting this year (The Wall Street Journal, 2024). The slowdown in consulting growth is causing top-tier firms to trim their most senior consultants, resulting in a greater availability of experienced on-demand leaders.
Enter the realm of on-demand leaders. Whether it involves conducting a market assessment, developing a launch plan, advancing the next phase of a traditional consulting firm project, AI business case development or execution, or supporting an internal consulting group project, on-demand consultants typically cost one-third to one-half less than larger consulting firms, based on our experience. This cost efficiency not only saves significant amounts of money but also ensures high impact and credibility due to their strong expertise in the industry, therapeutic area, or function.
Companies astutely utilize on-demand leaders for targeted projects or to execute recommendations from traditional consulting firms, which would otherwise entail substantial costs and potentially require a different or new team for implementation. Following through with on-demand leaders post-project is cost-effective and impactful, as these leaders often possess prior experience and insights into implementation needs. Moreover, the affordability of engaging experienced independent consultants with operations expertise enables small to mid-sized firms to access valuable insights without incurring exorbitant costs, effectively managing expenses while benefiting from specialized expertise.
In the past, companies often relied on interim and on-demand leaders to work onsite. However, this dynamic shifted significantly since the onset of the COVID-19 pandemic. Recent data indicates that approximately 40% of healthcare and social assistance organizations now operate fully remote or in hybrid setups (U.S. Chamber of Commerce, 2024).
This shift to remote work broadens access to specialized skills without travel limitations and enables companies to engage with previously inaccessible talent, whether for interim leadership or on-demand consulting. Remote work empowers organizations to leverage talent from various locations and seamlessly integrate them within the team, particularly as remote or hybrid work gains traction among both permanent and interim team members.
In summary, healthcare and life sciences companies are grappling with mounting demands amid resource constraints. The imperative to deliver value for patients, board members, investors, team members, and healthcare providers is urgent and cannot be postponed.
The Rise of Independent Leadership Talent
Fortunately, a growing pool of available leadership talent with relevant expertise is filled by elite industry executives and experienced consultants choosing to work on an independent project basis, providing a critical resource for companies to stay on track and progress their strategic, financial, and operational paths. Full-time independent workers increased from 13 million in 2017 to 26 million in 2023, with high-earning independents accounting for over 20% (compared to 12.5% a decade ago), now the fastest-growing segment (Statista Research Department, 2024). Another study estimates that 36% of employed Americans worked independently in 2022 compared to 27% in 2016, with a significant portion, one-third, earning over $150,000 a year (McKinsey, 2022).
Many of these independent workers bring advanced degrees from leading universities and/or executive-level experience gained at top companies and management consultancies, boasting track records of performance and specialized skill sets to make a fast impact. And they are increasingly opting to continue working independently. As Peter Fasolo, the Executive VP and CHRO at Johnson & Johnson, noted, “Without question, there has been a huge shift. Many of the individuals we’re looking to attract — in technology, data sciences, machine learning, blockchain, and the internet of things — have a different mindset now. They want more flexible working arrangements” (Harvard Business Review, 2024).
Companies can now deploy well-qualified interim leaders to hit the ground running and address their talent shortages. Companies that dynamically allocate talent to opportunities achieve returns to shareholders 2.2 times higher than their competitors (McKinsey, 2021). Leveraging interim and on-demand leaders is an essential component of an agile leadership strategy, enabling organizations to innovate, scale, and transform in a cost- and capital-efficient, flexible manner.
The Interim and On-Demand Deployment Journey: A Strategic Framework
In the quest for accessing and effectively deploying interim and on-demand leaders, companies — and the investors backing them — face critical decisions. When instant organizational or project leadership and adaptability are imperative, how can organizations successfully navigate this terrain? Drawing from the extensive experience of WittKieffer’s consultants in thousands of interim and on-demand engagements, we identify four essential steps to increase the efficacy and success of this important resource.
The initial key to success with interim and on-demand leaders lies in understanding how, when, and where to effectively utilize their expertise. Companies and private equity/venture capital firms can proactively tap into this important resource during pivotal phases to bolster performance agility.
The diversity of potential applications of interim and on-demand leadership aligns with the varied needs of organizations when implementing vital programs.
- A biotechnology company engages an on-demand commercial leader to lead a product launch.
- A private equity firm retains an on-demand advisor to conduct a scientific and/or market scan to support its investment thesis in advanced diagnostics.
- A healthcare company sources hard-to-find artificial intelligence (AI) experts to formulate new digital transformation and data management strategies.
- A high-growth healthcare services company retains an interim CHRO to establish its first HR function, with a particular focus on developing organizational roadmaps and leadership development plans.
- A venture capital firm retains a finance leader to assist the CFO of a portfolio company with intricate market-specific pricing analysis.
- A private equity firm deploys an interim operations transformation leader at a CDMO portfolio company to recalibrate production processes and deliver improved efficiencies.
- A venture capital firm appoints an interim CFO to lead a portfolio company through an advanced financial and reporting system implementation to support its next growth phase.
- After a merger, a pharmaceutical company brings on an experienced on-demand leader to oversee a portion of its integration and manage other on-demand consultants who oversee multiple workstreams to support the client’s integration team.
Within the interim and on-demand talent space, both traditional and start-up talent firms now operate. A critical factor for success is selecting a talent access partner who can effectively align organizational requirements with client needs and has access to a comprehensive network of highly skilled, established interim and on-demand leadership talent.
As the interim and on-demand talent market evolves, talent access partners typically fall within two tiers.
- Premier leadership networks: These leadership advisors offer comprehensive advice and guidance on the most suitable solution for each opportunity. They focus on specific markets relevant to the client, possess a robust and distinctive network, pre-select and vet leadership candidates, and deploy trusted client and delivery advisors who genuinely understand client requirements and tailor solutions accordingly. Their success metrics encompass outcomes, impact, as well as the quality, range, and depth of talent they represent. Moreover, they emphasize a caliber of talent that acknowledges the distinction between leadership and technical proficiency, capable of leveraging both for the client’s success.
- Marketplace and staff augmentation services: These platforms are designed to provide independent talent in large quantities. Their key performance indicators (KPIs) focus on speed, volume, and cost, lacking the strategic perspective needed to assist executives in making informed decisions about talent strategies. These services are more suitable for roles requiring easily identifiable technical skills and individual contributors.
In specialized industries like healthcare and life sciences, premier leadership networks are better equipped to assist organizations in achieving success with interim and on-demand leadership. The top firms maintain a strong focus on these industries and are aligned with the mission of improving patient outcomes. Companies that seamlessly integrate interim and on-demand services with executive search and leadership advisory capabilities are particularly well-positioned. By leveraging their expertise, networks, and comprehensive understanding of the leadership landscape, they can effectively match leaders with roles and/or projects that align with their strengths and clients’ cultures. These firms stay actively engaged throughout each project to minimize challenges and maximize results.
In collaboration with their talent access partner, the client will define the project or role and identify the necessary leader requirements. They will also decide whether the role should be filled on a full-time or a fractional basis. The client’s advisors will leverage their networks and proprietary search methods to identify potential interim and on-demand leaders. They will promptly provide the client with two to three carefully selected candidates tailored to the engagement, giving the client the opportunity to assess and select. The client may engage in multiple discussions with the chosen leader to ensure alignment with desired outcomes, cultural values, and soft skills. The client’s talent access firm will handle the necessary reference and background checks.
Once the leader and the project deliverables or role are defined, the client will collaborate with their talent access partner to streamline the contracting process for a quick start. This often requires coordination among business leadership, human resources, and finance to finalize contracts efficiently. Leading talent access firms offer transparent budget guidelines early in the scoping phase and concurrently manage the contract alongside talent selection.
For large organizations, establishing a dedicated category for high-end interim and on-demand leaders can optimize the utilization of this talent pool, distinct from traditional consulting and staff augmentation services. In small to mid-sized companies and private equity firms, contracts can progress quickly with support from finance, legal, and human resources in finalizing agreements. Fast contracting allows for quick starts and accelerates impact as a result.
Interim and on-demand leaders excel at integrating into internal teams and workflows, but there are several actions that the client — and their talent access partner — can take to maximize the value of their expertise.
- Define success and stay focused on deliverables: Collaborate with your talent access partner to scope the role and establish meaningful goals, deliverables, and measurable KPIs for each interim and on-demand engagement. Interim leader assignments typically revolve around specific responsibilities, whereas the work of an on-demand consultant is guided by defined deliverables.
- Plan for a strong kick-off: Introduce the interim or on-demand leader to key stakeholders and involve them in meetings while sharing relevant parts of their background that are pertinent to the project. Introduce them in a manner similar to how a regular employee would be introduced to support their success. Ensure they have the executive mandate and access necessary for success, and provide clarity to them and the broader teams with whom they will interact regarding decision-making processes and authorities. Ensure they understand the company’s mandate and compliance requirements. For instance, Johnson & Johnson provides on-demand consultants with the same in-depth training on company values and work processes that it offers to its permanent employees (Harvard Business Review, 2024).
- Schedule regular check-ins: Once goals have been established, schedule time with the interim and on-demand leader to ensure alignment to the intended path (and troubleshoot as needed). The talent access partner should also arrange regular check-ins with both the interim or on-demand leader and the internal client sponsors to ensure performance and alignment.
- Make the interim leader part of the team: Foster communication and transparency by encouraging the interim and on-demand leader to familiarize themselves with internal executives, ensuring alignment around a common mission and goals; integrate the interim leader as a valued team member. “The role of traditional contractors is staff augmentation: They add capacity on a temporary basis … But when the purpose is not augmentation but innovation, firms need a different approach — one that fully integrates expert freelancers into a highly cohesive team. To that end, forward-looking companies are starting to develop new practices.” (Harvard Business Review, 2024).
- Map out what happens next: Consider the future of the interim or on-demand leader’s work post-engagement completion. Strategize to ensure readiness for the upcoming phases. Role transition and post-engagement operational plans should form part of the scope of work assigned to the interim or on-demand leader. Share secure collaboration, document-sharing, and knowledge-management systems that the interim leader can use. A key deliverable for on-demand leaders should be a transition plan that ensures the seamless transfer of knowledge, processes, and future program steps to the relevant ongoing resources.
An Integral Part of Leadership Strategies
Interim and on-demand leaders play a pivotal role in the healthcare and life sciences industries, offering rapid access and specialized expertise across the entire value chain. The significance of these leaders will continue to grow as organizations recognize their contributions to strategic agility and positive leadership impact.
Leadership advisory firms like WittKieffer, which blend industry expertise with seasoned talent advisors, are well-positioned to connect client organizations with effective interim and on-demand leaders, enabling them to leverage this evolving resource to the fullest. WittKieffer takes pride in exclusively serving clients within the Quality of Life Ecosystem, dedicated to improving quality of life through impactful leadership deployed through executive search, interim and on-demand leadership, and leadership advisory solutions. For more information, please visit our Interim Leadership website or reach out to Interim Leadership Solutions Leaders.
Sources
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12. PitchBook (2024). Q4 2023 biopharma report: VC trends and emerging opportunities.
13. PwC (2023). PwC’s 26th annual global CEO survey: Winning today’s race while running tomorrow’s.
14. Markets and Markets (2024). Artificial intelligence (AI) in healthcare industry worth $148.4 billion by 2029.
15. Statista Research Department (2024). Number of people working independently in the United States from 2017 to 2023, by frequency.
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