How The Tolan Group Navigated the Downturn and Remained Focused

June 23, 2026 – For many executive search firms, 2024 and 2025 tested resilience in ways few could have predicted. At The Tolan Group (TTG), they experienced the same pressures felt across the industry. Slower decision cycles, delayed starts, and a noticeable dip in portfolio company hiring activity. Yet through that uncertainty, one thing remained constant: our commitment to staying focused, disciplined, and strategically aligned with the firm’s clients. TTG has always been focused on new client acquisition logos and that new business mindset came from our founder since the day he started the firm in 2005.

The firm focus is in three main sectors – healthcare services, behavioral health and health tech. “When one sector slows down, we have the luxury to pivot to another sector – and we did,” Kaye Johnson, managing partner at The Tolan Group, recently shared with Hunt Scanlon Media. “Rather than reacting to the downturn, we made a conscious decision to navigate it with intention,” she said.

“Like most firms in our space, we felt the slowdown, particularly within private equity-backed hiring,” said Ms. Johnson. “Searches took longer to close, decision-making slowed, and many engagements were paused or delayed. Industry data reflected a meaningful dip in demand, and we saw that play out in real time. That said, we never viewed the downturn as a reason to panic. Instead, we treated it as a moment to refocus and operate with greater discipline and continued our new business outreach to tell the TTG story to portfolio executives and PE firms focused in our sectors.”

Ms. Johnson has been overseeing all facets of the firm since January 2022. She leads the day-to-day operations. Her experience in executive search in the healthcare, and behavioral health industries provides her insight into the organizational and human capital needs of her clients. She has placed C-suite, EVPs, SVPs, VPs, and countless individual contributors in sales, marketing, product management, technical, and clinical talent since joining the firm.

Ms. Johnson recently sat down with Hunt Scanlon to discuss how TTG navigated one of the most challenging hiring environments in recent memory, the strategies that helped the firm maintain momentum during the slowdown, and why preparation, discipline, and client relationships positioned the organization for renewed growth as market conditions improve.

Kaye, what was your immediate strategy in response to these market conditions?

Our approach was intentional. We didn’t chase volume or lower our standards to compensate for the slowdown. Instead, we leaned into what has always made TTG successful: deep relationships, sector expertise, and a highly disciplined search process. We stayed close to our clients, even when hiring activity slowed. Those quiet periods are often when the strongest partnerships are built. The partners at TTG have been doing this for a long time individually and as a Partner group for over a decade. I wouldn’t say going through recessions is a blessing, but doing something multiple times gives you a different perspective on how to react and more importantly how not to overreact. We have weathered a few storms, so we know how to navigate a downturn and manage expectations both internally and externally.

How did you continue adding value when searches were being put on hold?

We shifted from being just search partners to true advisors. Even when roles weren’t actively moving forward, we worked with clients on talent mapping, organizational planning, and succession strategy. Some of our work over the past 24 month was helping upgrade leadership talent and participate in the value creation initiatives of many of our PE partners.  That proactive work made a big difference. When searches did reopen, we weren’t starting from square one; we were able to move quickly because we had already laid the groundwork. And our business development team never stopped promoting the TTG brand and a lot of time was invested in introducing and re-introducing our firm to the market.

What external factors played the biggest role in the slowdown?

There were several. Uncertainty around the election cycle created hesitation in hiring decisions. Interest rate fluctuations slowed deal activity. And then there were broader workplace shifts, such as ongoing debates around return-to-office policies and evolving candidate expectations. At the same time, the rapid emergence of AI is changing how firms operate and how candidates engage in the process. All of these factors combined to create a more complex hiring environment.

How did TTG adapt to those changing dynamics?

We focused on agility without losing our core identity. We adjusted expectations around timelines and coached clients on how to stay competitive in attracting top talent, especially when it comes to flexibility and compensation. We also embraced technology where it made sense. We started building our AI tool stack in 2024, and those tools have helped improve efficiency in areas like data entry and organization, but we’ve been very intentional about maintaining the human element that’s inherently critical in executive search. AI has also allowed us to handle the same volume of engagements we had with twice as many employees. So, AI helped us increase productivity in a meaningful way. Also, we continued to keep track of our revised KPIs and metrics to track our progress. We are and always have been a data driven firm and this continued despite the slowdown in business.

“We started building our AI tool stack in 2024, and those tools have helped improve efficiency in areas like data entry and organization, but we’ve been very intentional about maintaining the human element that’s inherently critical in executive search.”

How did you ensure your internal team stayed aligned during this period?

Transparency was key. We kept our team informed about market conditions and our overall strategy. There is no need to candy-coat a dip in the market, and we took the high road and had open conversations about where we were but more importantly where we were going. They also knew that the partners have been through previous market downturns so that gave them the confidence that we were committed to working through the dip by leading by example – and that’s what we did. At TTG, we have a solid rhythm of team meetings every week including our Monday All hands, client delivery mid-week, and business development every Thursday. That cadence never changed. We also did 1:1 check-in meetings periodically. Our team knew we were present and that mattered. That clarity helped maintain focus and morale. We also reinforced a long-term mindset. It’s easy to become reactive during a downturn, but we emphasized consistency, staying true to our standards, our process, and our client commitments.

Are you seeing signs of recovery in the market?

Yes, early signs are already visible today. Private equity firms are under pressure to deploy capital and generate returns, and that is already driving demand and hiring activity. We see momentum picking up, and I believe when it fully returns, it will happen quickly. Firms that stayed prepared during the slowdown will have a significant advantage. TTG has a large client base since new logos are part of our DNA. So, we had the luxury of having more account management focus as many of our clients made hiring upgrades during this time. We will always be new business focused both on new logos and new engagements from existing clients. It’s been said that executive search is a leading indicator of the market as a whole. Early signs of green sprouts have now blossomed into something more and we feel it.

What key lessons did TTG take away from this experience?

A few stand out: Focus and discipline matter more than ever in uncertain times; Client trust is built when you show up consistently, not just during active searches; Preparation during slow periods creates speed when the market rebounds; Adaptability is critical, but you can’t compromise your core principles. Possibly the biggest one is operating with a core partner group and a team that have all been with us for years. It hinders anyone from making decisions that would affect us in the long run that might look good in the short term. It is hard not to be reactionary, and it is so important to have a group that is in it for the right reasons and the greater good of the company as a whole and not individually. We all like each other, enjoy working together have a great culture and we care about every member of this team and they know it. We continued to have our QBR meetings but opted to hold them virtually and made them fun and engaging.

Looking ahead, how is TTG positioned for what’s next?

We feel very confident about where we are going. We know who we are, where we excel, and we do our very best to stay in our focused sectors. In the past 18 months, we strengthened our relationships, sharpened our approach, and reinforced who we are as a firm. We stayed focused when it mattered most. And because of that, we’re entering the next phase of the market in a very strong position, ready to move quickly and continue delivering for our clients. Our behavioral health sector has really blossomed in the past 24 months and does not seem to be slowing down. We see increased demand across the sector with many of our clients adapting to tele-health to deliver their services. The demand for behavioral health is generally growing faster than the overall market because workforce supply has not kept up with demand. We started this sector nearly eight years ago and today it represents one-third of our overall search volume.

Related: How The Tolan Group is Leveraging Leadership for Behavioral Health’s Next Growth Phase

Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor  – Hunt Scanlon Media