Archiv der Kategorie: English

Leading in this or in a different way

Not all superiors want to take responsibility but rather earn more. In the absence of expert development paths, they have no choice but to assume a position that replaces their expert with leadership requirements: above all, leading and promoting themselves and others; building and maintaining relationships; developing images of the future and making decisions; solving problems; accepting results. Since leaders are multipliers, their convictions spread through their sphere of influence, e.g.

  • Their conception of people: humans are unwilling (Theory X), or humans are motivated (Theory Y)
  • Their worldview: the world is a machine or an organism
  • Their leadership understanding: top-down versus bottom-up versus inside-out
  • Their contribution: determine direction versus generate momentum versus letting go

Leadership is often reduced to the CHARISMATIC UNIVERSAL GENIUS, whose abilities are innate. In this context, a look at the book Managing, Performing, Living by Fredmund Malik is recommended. He shifts the focus to the leader’s effectiveness through rules and principles and a set of tasks, tools, and communication.

In this blog post, you discover four roles you, as a careful observer, find in companies.

  • Principals
    The days of Louis XIV are over. Nevertheless, authoritarian leadership styles that rule from top to bottom still exist. Guidelines are dictated. Politically correct, they no longer act as authoritarian despots but as purchasers. They expect duty fulfillment without opposition or resistance. The absolutistic rulers of the past had little data available for decision-making. Now, a flood of insights is open to all parties. As a result, today’s potentates run the risk of turning out to be micromanagers who interfere in the details of execution.
    The focus is on order. This role is influential with precise specifications of the content, timeframe, and available budget. Those who manage to suppress their autocratic behavior can achieve a lot.
  • Administrators
    The times of carefully erected corporations are coming to an end. Even if the size is still the goal, decision-makers are now learning that they need new delegation approaches. Ashby’s Law of Requisite Variety has taught us that the diversity of answers must be greater than those of the questions raised. The ordinarily rigid organization of structures and processes gets replaced by dynamic units of about 150 participants who act to a large extent autonomously in the interest of the whole. The typical administration obstructs this flexibility since its regulations have no chance to justify all possible cases.
    The roles, the TARs (task, authorities and responsibilities) are at the center. The aptitude in defining roles ensures the balance between commonality and freedom. Memorable governance creates the overarching mindset. The appropriate degree of specifications and the generous evaluation of the fulfillment are crucial.
  • Salespeople
    The days of all-around geniuses, who master all aspects of their company, are over. In the absence of expertise, impressive companies exploit their creative sources – e.g., when 3M allocates 10% of its working time to the creative will of everybody, or when Google gives its employees the freedom to generate new offerings ever through cross-functional collaboration, a refreshing management style and a focus on results.
    This is primarily about solutions that need the chance to prove themselves in the marketplace. For this to happen, extended leeway must be created above all, which provides ample means to turn ideas into results. In this environment, tolerance and openness, on the one hand, and clever marketing are necessary to convert the existing possibilities into advantages.
  • Servants
    The days of the top-down chain of command have passed with the general availability of data. Knowledge is power has lost its meaning as groups ALWAYS know more than individuals. Accordingly, the hierarchy has been turned upside down. Leadership levels now serve their assigned units (i.e., Servant Leadership). To get the right thing done right at the point of action, individuals need broad authority and, when difficulties arise, support from their leaders.
    The focus lies on the impact of offerings – e.g., noticeable quality, friendliness at the Point of Sale, and customer satisfaction. To do this, employees must be capable of acting – i.e., to have sufficient resources, expertise, and support. For this role, the leaders should have empathy, understanding, and presence.

Bottom line: Traditional leadership approaches, i.e., autocratic, top-down reign, excessive bureaucracy, or technocratic silo organizations no longer fit the fast-paced VUKA world. How the roles of the future will look is up to your imagination. The functions described are distributed along the axes of decision-making direction (top-down vs. bottom-up) and communication style (one-way vs. either way). They are intended to make today’s leaders consider their role and provide impulses to rethink their working style. In the end, everyone decides whether they want to lead in this or in a different way.

Learning from the elders

Before we start denigrating those who have demonstrated the most consistency over the past 2500 years, let’s take an unbiased look at them since they have lived by more or less similar values for so long – the Chinese. The five constants of (1) humaneness, (2) righteousness, (3) morality, (4) integrity, and (5) knowledge serve as a guide for the Renmin (the Chinese people):

  • In their relations with other people
  • With a corresponding sense of duty
  • Friendliness
  • Honesty and
  • Precise expression.

The behavior is built on these Wuchang’s – a strong sense of ­belonging, the political system, and the social credits. Full centralization and independence from electoral promises enable the leaders to set and realize ambitious goals – even if dealing with human rights falls by the wayside.

If you let go of the general polemics toward the Chinese dragon regarding the political system and how they deal with resistance, there is a lot to learn from the two and a half thousand-year-old Confucian mindset.

  • If you do not have perseverance with small things, the big plan will fail
    China’s connection to international markets bundles various projects. It aligns efforts in the long run under One Belt, One Road, or The New Silk Road (on land and water) towards economic expansion. In the West, the focus on long time horizons has been lost. At the same time, large-scale projects are made impossible by excessive bureaucracy and private resistance. As a result, decision-makers are rewarded for short-term good behavior towards the loudest rather than the majority’s needs.
    In the West, we should remember that the majority’s welfare, decisiveness, and perseverance are prerequisites for our progress. This requires a masterplan that promotes, for example, education and ensures an operational infrastructure and the preservation of competitive advantages.
  • A sounding drum needs no heavy beating
    The ongoing criticism of the conditions in China shows a lack of understanding of Asian cultural peculiarities. When the social credit system is discredited as Big Brother is watching, many oversee the corresponding measures of observation in the West – e.g., surveillance cameras in England, extensive monitoring of communications and road traffic in Germany, or the U.S. overbearing NSA. In contrast, the Chinese system counts on ancient values (see the five constants), which make it easier to introduce, for example, the social credit system, mainly when it is linked to the targeted doubling of per capita income by 2035.
    We should move away from the basic idea of subordinating anything to companies’ economic success and a few super-rich people. We will only remain viable when we preserve future generations’ future opportunities by focusing more on securing the long-term performance of all, creating a joint (for example, a European) identity, and preventing the societal division into haves and have-nots. A fruitful community spirit enables benefits for everybody when all stakeholders pull together one rope.
  • Do one thing and not letting the other
    In contrast to the culturally neighboring 27 European countries, China comprises 90 ethnic groups or 56 official nationalities. While it spans five time zones, it has only one time, that of Beijing. If we consider the more than 1.4 million people, then the internal difficulties become understandable. If you think about the Asian mentality of Yin and Yang, the results of One Country, Two Systems, or the new measure of Dual Circulations, the results are impressive – in other words, the mode of doing one thing and not letting the other.
    We could benefit a lot from such inherently contradictory approaches instead of dogmatically following the everybody for oneself. The E.U. is less struggling with different mentalities. Trouble arises from national egoisms. For example, Europe has made itself incapable of acting due to its distribution of authority or veto power. Only if the nation stating is dissolved in favor of the United States of Europe will there be a future for all – the European market has the right size, is based on a common culture, and has an established economy.
  • Utilize all opportunities
    With its Made in China 2025 (MIC), China aims to dominate in key areas – determined digitalization (e.g., network infrastructure, semiconductors); introduction of cryptocurrency; further development of transport systems (e.g., high-speed trains, electromobility, space travel); expansion of I.T. capabilities (e.g., Artificial Intelligence, Quantum Computing, Robots, and Automation); performance improvements in agriculture.
    Although we have comparable needs for action, we cannot go beyond lip service due to a lack of decisiveness and pursuit of personal gains. We are left with projects that are repeatedly delayed into the future. We skim off the accumulated cream of the economy and redistribute wealth from the bottom to the top. This leads inevitably to an economic infarction – at the latest when previous advances have been eaten up. In modifying a burnt motto, we need a Europe First that is carried and supported by ALL – free from national and personal concerns.
  • Cross the river by feeling for stones
    The future lies hidden in the mist of possibilities. However, the following touchdown points are recognizable. Accordingly, Deng Xiaoping had issued the motto Cross the river by feeling for stones. With its current student population of more than 40 million and the millions of graduates in recent years, China has an overwhelming knowledge worker reservoir. With this flood of knowledge, they are building the future foundations as part of the China Standards 2035 The most patent activity takes place in China with over 1.4 million according to WIPO (followed by the USA with over 600k, Japan with over 300k, South Korea with almost 220k, and Germany with over 67k patents).
    We can see from the numbers who is determining future matters. To secure our opportunities, the Europeans would have to set and pursue the priorities just like China. If we fail to do this, we will continue to lose substance. This applies to people’s performance and the economy, the communications networks coverage, the exploitation of the Western mentality, and the inherited understanding of quality.

Bottom line: In essence, this post is about moving away from the polarizing view on China. It would be better to recognize that China has increased its GDP by RMB five hundredfold in the past sixty years. Within the same time, Germany’s GDP has increased twenty-onefold. Even though China started at a shallow level, we will have to deal in this decade with China taking the lead in the economy. It is mainly because of its persistently implemented initiatives: One Belt, One Road; Social Credit System; Dual Circulation; Made in China 2025 (MIC). To remain economically significant, it is necessary to develop and consequently implement a masterplan in Europe. Therefore, bureaucratic and social resistances do not have to continue to be sat out but must be solved. The core issues are the support of qualification for all, the consistent elimination of the preferential treatment of capital and industry, seamless digitization, and future technologies’ development and use. To achieve this, we can learn from those who have been on the road the longest and are doing it currently at best.