Category Archive Leadership 4.0

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7 Myths of leadership – that you should forget

In the context of digital transformation, how can and how should managers and executives ensure with qualified leadership that teams and individual employees remain healthy, qualified and motivated – despite the stress brought on them by change and dynamic working conditions? For example, first of all be self-critical: After all, if things don’t run smoothly in the company, productivity and innovation rates fall short of expectations and the company falls steadily behind in the market, this can be caused by the coexistence of traditional and modern management models. Some executives like to cling to outdated models of staff management – and at the same time hope to somehow manage to survive the change. Dr. Sven Grote, who also talked about the TÜV Rheinland dialog “Human and health”, addresses the most important management myths.Read More

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How does the culture of prevention succeed?

Today, VUCA shapes the modern working world: it is subject to volatility, uncertainty, complexity, and ambiguity, that is what we today call digital transformation and the associated disruption. In times of VUCA, what does that mean for the health of workers and the competitiveness of the company?  This central question goes to Prof. Dr. med. Joachim E. Fischer in an interview with tr-academy.com. The Director of the Mannheim Institute for Public Health at the Medical Faculty Mannheim of the University of Heidelberg sees in the “FreuSinn” – joy at work – a central factor for a healthy and motivating Leadership 4.0. In his opinion, the thesis that prevention is better than cure – is more relevant than ever.

In your opinion, how can one reconcile protecting employee health and the competitiveness of a company?

Traditionally, the culture of prevention has been meant: We protected employee health with technical measures designed to reduce exposure to risk. We have achieved an exemplary high standard in this regard. Today, digitalization has taken over the workplace and has increased the amount of knowledge work employees do. The demand for flexible, individualized solutions is increasing, especially in industrial settings. This is changing the kinds of health protection we need to provide. Averting physical risks is taking a back seat and it’s becoming more important to strengthen employees’ ability to cope with challenges. Adding to the complexity is an increasing unpredictability and uncertainty, often even contradictions, which are not exactly diminished by current political upheavals, whether it’s Brexit or American tariffs.

But people need sufficient security in order to tap their potential. The culture of prevention in the sense of using conventional health campaigns such as veggie day in the staff cafeteria, health awareness days, or healthy back training is far too short-sighted. By taking the opportunity to find out what will help employees develop their potential and thus increase the company’s competitiveness is often good for their overall mental health. The aim here is to find the best possible intersections: this is at the heart of the new “culture of prevention.”

You see having a sense of joy (“FreuSinn”) as a central factor of the culture of prevention in the sense of a healthy and motivating Leadership 4.0. What exactly do you mean by this?

Originally, it was out of pure scientific curiosity that we asked more than 20,000 people whether they look forward to going to work in the morning when they wake up and whether their work helps them see their lives as meaningful. We were quite surprised when those employees who could fully agree with both statements were healthier, even down to biological markers, and described themselves as more effective. We decided to name this phenomenon “FreuSinn.” Obviously it is joy, not fun, and experiencing the job as meaningful is vital to these people. It is close to what others have described as “flow.” And we know from neurobiological research that the frontal lobe of the brain is particularly active when these conditions are active. It is in the frontal lobe where we think, decide, invent, judge, plan. In other words, exactly those things today’s knowledge-based economy and society need.

If a company’s ability to create value increasingly depends on employees’ using the frontal lobes of their brains and not shutting that aspect of their humanity down when they cross the entrance gates, then it is up to managers at all levels of the hierarchy to create the conditions for more joy and meaningfulness at work. This does not necessarily make the management task any easier, because there are no simple formulas to follow. Sometimes it might involve simplifying disruptive processes. It might be allowing certain people to work from home or it might involve firing people that are disrupting the team with their poisonous attitudes. An important task in this regard is to cushion the ubiquitous uncertainty credibly, whether it is uncertainty caused by fixed-term contracts (like we have in research) or the uncertainty caused by turbulent markets. And because many people react more irritably under stress and with increasing exhaustion, taking care of the workplace atmosphere day in, day out becomes all the more important.

We recently evaluated data from a representative study conducted by the German Labor Ministry, which included both an internationally used scale for mental well-being and a scale for measuring enthusiasm, commitment, and passion for work. The results showed that 40% of employees are both committed and engaged in their work and also mentally healthy. So a job that keeps you healthy has long been a real possibility. Empirical data from several studies even agree that people who voluntarily work longer and feel useful have longer lives. Managers must therefore ask themselves how they can increase the sense of joy and meaningfulness at work both today and in the future tomorrow from their own strength without extensive training. Whether it’s city cleaning, nursing care for the elderly, working the assembly line, or in an architecture firm. We know companies in every industry that can do this. They have low absenteeism rates, and they generate great added value with their work. Almost nothing has a more lasting effect than genuine sincere recognition for good performance. And not in the form of a bonus payment at the end of the year, but with a grateful handshake immediately.

We have collected our own data to compare the effects of convention health campaigns with that of creating a sense of joy and meaningfulness at work. While 10% healthier behaviors only contribute 1% to employee health and just over half a percent to productivity, 10% more joy and a sense of meaning bring about 5% more productivity. It’s no wonder why SAP’s Business Health Culture Index, where half the questions measure the quality of leadership and support, has become a significant internal key performance indicator for SAP. PWC calculated on SAP’s behalf that a 1% improvement in the Business Health Culture Index translates into €65-75 million more profit. This is no secret; it has been published online in SAP’s annual report. Anyone who thinks conventional health campaigns will be enough will, in the long run, not be able to exploit the full potential of holistic health management.

What opportunities do you see in bargaining agreements that can’t be solved by the healthcare system?

The healthcare system is excellent when it comes to treating acute illnesses with clear medical causes and treatment options. However, the healthcare system is not at all equipped to maintain employees’ ability to work and create value. If, for example, employees are so mentally restricted that, although they still function day-to-day and aren’t in need to psychiatric hospitalization, they will no longer be able to work in a way that creates value. We have to define a new culture of prevention. Our healthcare system only offers waiting times and no solutions. So there is a gap between conventional, technical health protection measures and the healthcare system which is yearning for healthcare that includes psycho social aspects. This applies to a wide range of potential offerings aimed at the individual, such as family assistance in problem situations such as caring for relatives, early intervention in cases of pain or psychological complaints, and meaningful attempts at making working hours or locations more flexible.

But this affects especially how we design work, that is, the conditions under which people work. Whereas the focus was once on emissions, noise, dangers, and lighting, it’s the psycho social impact and mental noise that we now need to get under control. What gets forgotten in all these risk assessments is that the mind also benefits from resources that will help it to overcome challenges. So it’s not just a question of reducing burdens and averting dangers. Unlike the technical prevention of risks, the most important thing for the mind is that which strengthens it. You can’t avert the cancer risk from asbestos through your mood. But you can solve a big task together as a team and what remain are the sense of achievement and the certainty and confidence of being able to solve the next problem together again, too.

When I was a child, Esso gas stations used to advertise with the “tiger in the tank.” The “tiger in the tank” for value creation is increasing the experience of joy and meaningfulness at work. The cover story of the current issue of Harvard Business Review is: “When work has meaning: how to turn purpose into performance.”

Professor Fischer, thank you for speaking with us.

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Optimize Internal Communication

In a VUCA world (volatile, uncertain, complex, ambiguous), everything is volatile, uncertain, complex and full of ambivalence. Many managers allegedly lack time to communicate adequately with their employees. But internal communication is becoming increasingly critical to success, especially in large companies with locations worldwide. How can everyone pull together if most people don’t know to what end and for what purpose? Here are a few tips on how to improve internal communication in your organization.

Tip 1: Use sales tools for employees for intensifying internal communication

Webinars are not only excellent tools for sales to tomorrow’s customers. They are also ideal for regular Q&A with the employees. In contrast to static internal newsletters, regular internal questions & answers are interactive and perfect to ensure that everyone has the same level of knowledge and to detect possible misunderstandings or undesirable developments at an early stage and to counteract them. Make sure that the webinars are part of your internal communication and advertised in time via internal channels such as the employee newsletter, Yammer or Slack. Make it clear in advance how employees can participate in this webinar. Consider in advance what questions might come and ask your team to prepare the answers. Be prepared for unpleasant or unexpected aspects to be addressed. Develop a sovereign strategy for this.

Tip 2: Managing resources intelligently

Don’t work harder, work smarter. Management software and platforms can help you manage resources and projects in real time and significantly improve internal communication. They can better delegate responsibilities, make sure your team stays on schedule and can support you when bottlenecks occur. They bridge the communication between management, employees, customers, and suppliers. Examples for this are platforms such as Bitrix24 or Monday (Dapulse) – with group and video chats, document management, cloud service, integrated calendar, email, CRM, HR tools and much more. Set achievable goals and divide them into manageable sections. Attach files and set due dates. Let the software automatically remind you and the team of overdue tasks – if they still exist at all. Automatically learn when milestones are reached and keep up to date with team success in real time.

Tip 3: Switch to real-time communication

SMS and e-mail are old school. How much faster could your employees communicate, make decisions, and even make decisions if they were allowed to use a direct messaging app – just as they do in their private lives? Yammer is a collaboration tool that enables teams to share messages, files, documents or updates quickly and without having to take detours. Slack with both private and public channels is now also at the top of the popularity scale of corporate apps. The app supports Direct Messaging, Drag & Drop for file sharing, document feedback, and comments, and centralizes all notifications. The app also has a search function that allows you to search the content for keywords. By the way – project management tools like Monday allow the integration of direct messengers such as Slack.

Tip 4: Dare to take an anonymous employee survey

Have the courage to use anonymous feedback software such as Custom Insights or Survey Monkey to learn what your employees feel you can do to improve your leadership performance and your internal communication too. Under certain circumstances, the results may be devastating initially. Think of it as an opportunity. Only if you know where the problem areas are you can work to change something for the better. Experience shows: You will be repaid for this courage with employee satisfaction and performance. Yet this can only be the case if you change something and don’t just put the results back in the drawer.

Tip 5: Communicate clearly and appreciatively

Internal communication involve respecting the time of others. This applies to meetings as well as to one-on-one conversations. Do not go on and on, but argue clearly and to the point. Let others have their say and catch them should they go beyond the scope and time budget of others in the meeting. And if a conversation needs a decision at the conclusion, then you decide. Stay respectful and appreciative in your language. Empathy today is often regarded as part of social competence as if it were not innate to us. “I can imagine that this makes you proud” or “This certainly upset you” are good examples of how an executive shows empathy. Clear language, clear head.

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Cooperation between Man and Artificial Intelligence

How can people and artificial intelligence work together in the future?

Artificial intelligence and digitalization produce new headlines every day. The tenor of the report fluctuates between admiration and admonition. How can people and machines work together in the future? Or won’t they work together because machines do the work?

For large parts of the population, the image of artificial intelligence is dominated by boulevard publications and the film industry. If machines learn to defeat the human grandmasters in chess or Go, media satisfaction spreads. Artificial intelligence represents the pinnacle of human inventiveness. In the films The Matrix and Terminator, on the other hand, machines have long since taken control of enslaved humanity. The mood oscillates between fear and admiration. The Handelsblatt, for example, chose the lowest common denominator in a commentary in which AI was described as a curse and a blessing.[1]

AI has come to stay

Highly specialized systems based on machine learning, pattern recognition or robotics are conquering ever larger fields of application. AI systems are used in the insurance industry to uncover cases of fraud or to process claims, they optimize routes and merchandise planning in retail and personalize the way consumers are approached in marketing or create individual dynamic prices. Even in highly specialized areas, AI systems are set to take over people’s tasks. Self-learning systems prepare forecasts and evaluate key figures in controlling.

And the experiences of the first companies to rely on AI are impressively positive. Last year, insurer Zurich caused a sensation when the company reported that it had processed claims in the claims handling area using AI within seconds for which a person needed more than 50 minutes. There is no doubt that artificial intelligence will shape the world of work shortly.

AI creates more sales and new jobs

That sounds like a job-killing technology that brings the destruction of livelihoods. The study “Reworking the Revolution” by Accenture comes to a different conclusion. There is no doubt that AI systems will take over people’s tasks. For example, chatbots will communicate with customers directly over the phone without people noticing that they are talking to a computer. But at the end of the day, the authors of the study assume that companies that rely on AI could increase their sales by up to 38 percent by 2022 and even create more net jobs.

But the tasks of the employees will change. Surprised, Accenture found that few companies have recognized that changing the world of work requires different skills from their employees.

The new world of work requires new skills and competencies

AI systems are IT systems. Competences with complex technical systems and the computer will undoubtedly retain their already great importance. But IT knowledge alone will not be enough in the working world of the future to keep employees firmly in the saddle. The assumption of more complex tasks by the machines enables new forms of cooperation. In industry, employees will probably no longer be responsible for a particular machine or manufacturing step. If machines transfer workpieces to each other and the production of another piece can be started with just a few mouse clicks, the employees have a new role to play. You need to keep an eye on processes, perhaps even communicate directly with suppliers or customers. But they must also be equipped with the necessary skills to do so.

Digitization and the introduction of AI in companies can only succeed if employees are involved from the outset and do not become affected. However, inclusion makes it necessary for employees to recognize the benefits of the technologies. It is not possible without knowledge about one’s own company, current developments in the industry as a whole and an understanding of what the actual business model of the employer is.

Create an atmosphere that encourages learning and the fun of training

While in the past one or the other employers may have only considered the demand for “lifelong learning” as just a phrase and invested accordingly cautiously in further training, demand is becoming more urgent than ever. Because AI systems change at a rapid pace. This is why companies need to create an atmosphere that encourages learning and the fun of training.

As far as can already be seen today, AI systems promote interdisciplinary work and corresponding forms of organization. The employee of the future must, therefore, be able to adapt to changing situations and other people. Such social competencies will be just as necessary as incentives for more creativity. In many cases, AI systems will aggregate data, but the necessary conclusions and the verification of valid hypotheses will continue to be the responsibility of human intelligence.

This is why companies will benefit most from AI, which best combines the benefits of electronic systems with the capabilities of people. And this can only be achieved with solid further training and active management of competencies in a company.

Learn more:

[1] https://www.handelsblatt.com/meinung/kommentare/kommentar-kuenstliche-intelligenz-ist-gleichzeitig-fluch-und-segen/21006486.html?ticket=ST-372739-bwhjlDya4cJUNj71Btba-ap3

Inspire and Empower People

How the “Inspire and Empower People” challenge succeeds

Be honest: Why do you get up every morning and go to work? If you have an answer to this, then you can confidently regard yourself as “inspired”, as personnel managers and managers have recently been calling it. Researchers have found that companies that consistently pursue their thoughts and actions according to a mission statement with a clear value orientation and are able to communicate the concept to their employees in a comprehensible manner are demonstrably more successful in the market than others and generate greater social and economic added value. This value-oriented approach, which encompasses ecology, economy and humanity, is referred to as “purpose-led”. As a guiding principle, “purpose” requires an ethical assessment of all consequences of one’s own actions within and outside the company.

What does this mean for individuals who are increasingly asking about the meaning of their work and who will be in the foreground much more than before in the future and who represent the most important long-term investment from a company perspective? What are the effects of digitisation on their present and future workplace? How should the future of work be shaped when companies have to react quickly and need agile employees? The answer: More responsibility for employees and more freedom – towards self-organization, also referred to as “empowering”. In the future, if self-organization is to be understood as an entrepreneurial design principle and people are increasingly acting in a self-organized manner and also across divisions in order to promote creativity, dynamism and innovation, then people in such organizations must also be empowered to do so. Thus, empowering also means: lifelong learning, e. g. through targeted competence management in the company.

Reduce fears of job loss – through empowering

A good example of the necessity of “inspiring” and “empowering” is the field of production. What demands does digitization place on the professional development of production employees? Does dynamic technological progress turn employees into a small gear and are robots competing with their colleagues or do they still have to do what artificial intelligence cannot? A balanced and adapted personnel development is important. In production, further training does not mean mastering Word and Excel as it does for colleagues at their desks. Rather, the aim is to convey the opportunities of digitization in production and to increase the competence in the safe application of new technologies. Above all, managers in production, i.e. foremen and group leaders, play a special role here, e.g. by reducing fears of job loss through inspiration and empowerment.

Pure technical and methodological knowledge is no longer sufficient

For organizations, it is essential to recognize competence needs in good time and to promote lifelong learning with good competence management as well as dedication, curiosity, enthusiasm or willingness to change. In my opinion, this is more important than ever for companies in the context of digital transformation.

Today, pure technical and methodological knowledge is no longer sufficient to deal with these challenges. Competences take the place of technical and methodological knowledge. In addition to content-related skills, competence includes the ability to act in open situations in a self-organized, responsible and creative manner, to solve problems and to apply knowledge consistently. The purpose is an important framework and also influences the definition of competence requirements. Competencies must be able to develop and grow constantly, and above all they should be allowed to be used and applied.

Read more here: www.tuv.com/innovationstagung