Micromanagement is the dead of innovation

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Innovation and Culture

At the moment we have a fast changing world in business context. New player come and displace old companies. How fast the world in economics has changed can seen by the big five in the last 20 years.

Biggest five companies with market capitalization 2006 - 2016

You see, the biggest five companies are all in technology settled. Only five years ago it was only one. To expand in this economic environment means, finding new products or services.

Why Micromanagement is the dead of Innovation

In many companies has established a new kind of manager: The Micromanager. That is a person, who hasn’t`t any priorities and try to control all activities of their colleagues. If this person has disciplinary responsibility, he is starting to restrict all project activities on his horizon. He wants to understand all items of work und is wanting to be reportable in all concerns.

So the colleagues aren`t able, trying new things. They always work on old modes, alway be reportable and avoid responsibilities.

Who think, this is always a problem of big companies should take a look at the German Post, DHL: They started searching a producer for an electric van for delivery. No one of the German Car Producers seem to be able, to produce such a van. So they started a StartUp with an University, the RWTH in Aachen, and now you can see their own build Vans in german streets:

DHL eScooter in HamelnFor a big Company it is not so easy, being creative. But it is possible. The most important asset are the employees: They have new ideas and are creative… if the management let them. With Micromanagement and a closely corset of reportings, they will do exactly, what is expected.

In my example of the German dhl,  the problem (finding an eScooter for transport of parcels) was in the point of view: No limits, a solution must be created.

You see, such creative solutions are for big companies possible, too. But you invest in your employees and has to trust them. Controlling every step of their doing will killing all creativity. This behavior has to be lived by the Top Management. If the senior management expect all times reportings about every step in the processes, the middle management will carry on.

Trust your employees, the most of them will thank such a behavior!

 

We need more couragous Leaders!

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Intro

New Technologies, the international crisis and other factors has shown: We need more leaders, less managers. But what is the difference? A short, but great Synopsis, I`ve seen:

Boss vs Leader

Courage for Leadership

We don`t have a solution for all the Problems. A new Generation of Leadership, based on Courage and Integrity, can bring all of us the solution:

1. We Need responsible Leadership

  • the ability to encourage and motivate people, employees and customers
  • to guide and coach them in good and bad times on their way to the common goal
  • to be successful jointly and have better results as a team
  • The key factors are – trust of the people in the right leadership – adjusted approaches of „right“ leadership in different situations – a responsible guideline for social responsibility.
  • other important factors are personal qualities like charisma, willpower, trustbuilding, strenghth, courage and decisiveness
  • a responsible crisis management – i.e. to be cool headed in critical situations, but with authenticity and integrity

2. We Need the leadership of tomorrow!

  • after the age of number-oriented management decision making follows the era of business culture driven leadership
  • What is competence? today: fact oriented decision maker  tomorrow: enabler and engineer of decision making processes
  • What is character? today: compliance tomorrow: personal integrity
  • What is culture? today: apply the company values tomorrow: business culture creation and formation

3. New role of the business leaders

    • Ethical behavior not only as individual, but as well as institution
    • incentivation i.e. boni longterm and related to sustainable results
    • decision making processes adjusted to ethical values (i.e. no discrimination, „Red Flags“)
    • CEO and leadership team as „role models“ demonstrate christian values
    • appreciate human capital
    • fairness for all stakeholders
    • sustainable entrepreneurship
    • show responsibility and reliability
    • open and transparent communication
    • social engagement and common good-Engagement
    • Pope-encyclica „Laudato Si“ = „our planet is our common house“

Extro

This Blogpost based on a presentation by Stephan Werhahn, board member of the German IoD.

Digital Transformation requires a new mindset

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I read often articles about the digital transformation and changes in Leadership. But why is this topic so important? In the moment, services and products are in change. The digital transformation dominates the discussion about the future of all topics of business.

Why is this important for Leadership? For understanding take a look for some newcomer: AirBnB and Uber: This companies don`t start with great techniques, Apps or Pages: They start with an idea. The services aren`t new. The ideas were bringing a value to the customers. This both companies doesn’t start with a complete new idea. They found business processes, which weren’t optimal and used them, to dig margins.

Leadership and business processes

No more bosses are needed: The age of Micromanagement has ended. New business models arises by creative employees. Managers but cannot command creativity. They have to install a framework, that supports new ideas. Failures are part of this new culture. This mindset has to be part of the common Leadership.