Questioning the Old System

Published in CAPITAL July 26, 2020.

Everyone talks about the New Normal, but what do we mean by it? As soon as management teams delve into the complex process of assessing the COVID-19 phase, one truth becomes abundantly clear: we cannot afford to return to the old way of doing business. In essence, behind the processes along the value chain, this concerns comprehensively the aspects of working methods and management culture.
„Any cooperation is difficult as long as people are indifferent to the happiness of their fellow man.“ the Dalai Lama postulated. In times of industrialisation we had to realise that the aspect of being there for each other can be in contrast to the reality of life in companies and their productivity goals. We have put a stop to this socially, as a result of workers‘ revolts, and a new social order paved the way in the 20th century.
Today we are experiencing a time of „silent revolt“. This is expressed in a different way, because the interdependence between labour supply and demand often works to the disadvantage of companies. Many have recognised that the key to prosperity and a secure market position is constant, sometimes radical innovation of products and business.

This requires new skills, which a new generation of employees will bring with them. Self-realisation, freedom of design and sustainability are aspects that these people use as clear decision criteria for or against a job. According to Gallup, for example, 53% of employees considered a better work-life balance and personal well-being to be „very important“ criteria when choosing a career.

Often a discrepancy seems to open up at that point, which raises the corporate goal of productivity on the one hand, and the cost-intensive investment in modern labour on the other. This view disregards the fact that a bridge can be built: Gallup identified a whopping 21% productivity advantages in a prominent, wide-ranging study of companies that create a high level of employee engagement. Most discussions and decisions are superficial and you find the kicker, the fruit bowl and the meditation room in company buildings. But the real question of what the needs of these valuable resources, the employees, are is rarely questioned: When do people feel bound to their employer?

So what does a company need to do to successfully address these areas? As so often, the answer is: it needs the right leadership. I would like to highlight four aspects.

Boldly define vision and purpose and make them tangible.

„Who has no vision has no reality,“ writes the German-Russian thinker Leon R. Tsvasman. In fact, from my day-to-day work at Google I could experience what a beneficial effect a noble, value-based vision has on employees. A common understanding of goal and purpose creates trust (as long as I believe in them and identify myself as an employee).
Translating this vision into the everyday work of each individual is the second, no less important task for the management team. This also includes what is measured and rewarded in concrete terms. This approach pays off with regard to belonging and individual contribution, creates transparency and thus promotes employee autonomy.

Taming the control mania.

Keeping the balance between autonomy vs. control is an enormous challenge for a management that for generations has lived with the idea of seeing the crowd of employees in front of them, especially now, in times of the „forced home office“. A side-note: according to the latest Gallup study, the number of people working from the home office has doubled within three weeks (USA).
The Institute for Employment Research (IAB) describes this as an attendance culture and found that 66% of the people surveyed felt that their presence was wanted by their superiors. Seen in this light, it is understandable that the weeks of „control at a distance“ led to the perceived loss of control and uncertainty for many managers.
The inner attitude of every manager will be the starting point for an adapted management culture that nurtures „productively lived autonomy“. This includes a basic trust in the will and creative power of the employees, provided that everyone is deployed appropriately, i.e. according to their abilities and preferences.
Questions that are worth asking now are: What exactly is it that is unsettling me? How many moments of „real“ underperformance do I experience, if I count honestly? Where was the clear description of expectations of a result missing? What help can I give my employee so that the next time the hoped-for result is achieved? More autonomy creates loyalty and increased individual contribution. COVID-19 has given us the chance to learn to exploit these possibilities.

Defining structures far-sightedly and implementing them pragmatically.

The Bain Covid-19 IT buyer survey from May 2020 shows that more than 80% of companies are pushing the automation of processes through IT systems in response to Covid-19. In order to avoid blind activism, which can lead to lengthy review processes, it is now important to develop a clear vision of the future business model and internal structures in the company. Only then can measures such as a new IT infrastructure be developed in a meaningful way.
In the short term, it is important to establish clear procedures that regulate home office for teams well and continue to promote interdepartmental exchange. Simple measures like daily short team check-ins can already create a lot of transparency, strengthen the feeling of belonging and cohesion and avoid silo effects.

Establish an open, innovation-promoting corporate culture.

Modern management cultures increasingly develop towards the principle „Sharing is Caring“ and demand self-organisation of employees – at all hierarchical levels. Innovation at the micro level, i.e. outside the major innovation processes that take place in a structured manner, will be held through informal and therefore often unstructured exchange. A team leader, for example, who promotes and rewards the sharing of information – whether directly relevant to the addressees or shared as a „good read“ – even across departmental boundaries, will in the long run reap more creativity, initiative and innovative approaches in day-to-day business.
At this point, it is worthwhile to critically question the efficiency goals that are often given priority and to focus more on qualitatively designed results. This creates transparency, autonomy becomes lived practice and everyone understands the contribution they make through their work.

What’s next?

You’re interested in how to analyse your team or organisation along these five dimensions of engagement, and want to get deeper insights? Read more in our next Tuesday Read blog posts in September and October.

Find our article published in CAPITAL on July 26 to read the original (German). 

Want to read more about the correlation between employee engagement and company success? Then we recommend you this Tuesday Read.

Stay tuned:) We are looking forward to seeing you soon!

Advantage is built on courage and trust.

The Virtual Academy conducts all courses based on an underlying strategic perspective. There are two compact courses that teach your leadership how to excel as a virtual leader, and another how to work in teams efficiently. Ultimately, they will help you boost your company’s productivity.