1. business and industrial

16
LuPe
Off balance
Wilfried Bantle,
Chairman of the Board at Liebich & Partner
Dear readers,
You know the feeling. You’re sitting in the car. You put your foot down. Suddenly the steering
wheel wobbles. One of the wheels is out of balance. Some people would simply ignore the
imbalance, it might drive others crazy, or at least to the nearest tyre dealer. Which category do
you belong to? And does this only apply when it comes to your car, or does it also apply when
there are imbalances in your company?
The first reflex is often to compensate imbalances with counterbalances. But be careful with
this in management. Because the number of setbacks you have to swallow on your journey
tells us about the quality of the strategy you are travelling with (p.3). The consultancy team
“Leadership 2020” also believes that you cannot infinitely compensate for imbalances, and
they advocate fundamental changes in the management culture (p.4).
Imprint
Uncontrolled communication cripples the flow of information in organizations. This creates
imbalances that can seriously interfere with the course of business (p.5). In connection with
employer branding it can be expensive when you break the rule “third time lucky”.
After spending time and effort on recruiting and employee retention, don’t forget about the
third point, separation management (p. 6).
Publishers
Liebich & Partner Managementund Personalberatung AG
Gewerbepark Cité 20, Marstall Unterlinden,
76532 Baden-Baden, www.liebich-partner.de
Imbalances also have positive aspects, for example, when they stimulate the market.
An interesting topic for innovative companies (p.7). And let’s be honest, the daily work routine
can sometimes throw a manager off balance. Renowned coach and psychotherapist
Dr. Gunther Schmidt’s advice: Always be on the move (p. 8).
Imbalances are part of life and business. There is more than one way to deal with them.
LuPe Magazine No. 16
March 2015
Published 3 times/year
Editorial staff responsible for the contents/
Chief Editor
Wilfried Bantle, Liebich & Partner (L&P)
Editorial team (L&P)
Myriam Laila Link, Norbert Wölbl, Wilfried Bantle
Edited by
Daniela Dannert-Weing, Kißlegg,
www.danieladannert.de
Design and Layout
MARKKOM – Agentur für Kommunikation,
Rottweil
Contributors
Steffen Hilser (L&P), Wilfried Bantle (L&P),
Michael Schuh (L&P), Andrea Schwan (L&P),
Claudia Weyrauther (L&P), Norbert Wölbl (L&P),
Gaby Doll (L&P), Dr.-Ing. Christoph Dill (L&P),
Daniela Dannert-Weing
Yours Wilfried Bantle
Translated from the German:
Helen Rode, Baden-Baden,
www.business-english-solutions.de
Pictures
Consultants: Marcus Gernsbeck
Page 8: Gunther Schmidt
Illustrations
Jürgen Weing
www.juergenweing.de
No. of copies
9.250
Change of address
Notification via E-Mail to [email protected]
All care has been taken to ensure that the
information in this magazine is correct,
however we accept no liability.
LuPe 16 Liebich & Partner
Reinventing the
wheel, again and again.
Hanging in there.
The euro zone economy is sick. To avoid
deflation, the European Central Bank buys
government bonds. The opinions on this
differ. The fact is: This ECB experiment
to compensate for imbalances changes
nothing with regard to the existing
problems, neither to the shortcomings
of the financial system nor to the
reform weakness of some Euro countries.
»Risk increases with the
number of balance weights.«
Only the repercussions of these are
compensated for short term, and the
temptation to put off the search for
solutions grows.
Also in business things do not always
go smoothly. Market developments lead
to imbalances in marketing strategies,
profitability or human resources. If
management ignores these because of
lack of sensitivity or a habituation effect,
the company will, in the best case, not
reach its potential, in the worst case, it
may even thwart its own development.
If imbalances, take the ECB, are corrected
like car wheels using balance weights,
the problems won’t be fixed, but you
can still drive the car. As the number of
balance weights grows so does the risk:
In multiply balanced systems things like
opacity and fragility increase, so that
when there are further interventions, the
company’s manoeuvrability and speed
of reaction speed decrease.
The more a company is battered by imbalances, the more inadequate its strategy proves. In the long term
it is more effective to replace the “broken wheel” with a new one instead of veering away from the
problem and juggling around with weights. Therefore, you have to use method to get to the bottom of the
imbalances, and create a strategy, which is designed for the company, for the prevailing and – by means of
a robustness test - anticipated “road conditions”. In a nutshell, and contrary to popular belief, it is actually
about reinventing the wheel.
The goal is a strategy that is relatively, if not a hundred per cent perfect, because no one knows what the
future will bring. There will always be potholes. Strategy work can prepare the company for many of these
and prevent some imbalances. It cannot prevent imbalances totally. It reduces the number of surprises
and increases the number of possibilities. So it helps the company to react rapidly and calmly to problems
occurring.
The world moves. Companies and “road conditions” change. The success of strategies can’t be up kept
endlessly, and there are no instant strategies that can be transplanted from company to company. The wheel
»Strategy work is a never-ending story.«
has to be reinvented again and again, as soon as imbalances and balance weights take the upper hand.
Strategy work is a never-ending story. And thanks to this, and to stay with the metaphor, a company can
drive on and on and on.
Even the best strategy doesn’t help if there are problems implementing it. Steffen Hilser maintains that
consultants should work on interlocking the two.
liebich-partner.de/steffen-hilser
Only the inexperienced among us believe that a
lack of strategy will go unnoticed. Wilfried Bantle
has learnt to differentiate between real and
superficial alignment.
liebich-partner.de/wilfried-bantle
LuPe 16 Liebich & Partner
Leadership dilemma.
Nothing is permanent. Managers are
noticing this just now. Employees’
expectations are changing, they want
to work more autonomously, they
want a job that makes sense, and
more time for living. Workforces are
becoming more diverse. Social trends like
individualization, democratization, health
orientation and feminization have arrived
at the company. At the same time
information technology is on the
advance, cost pressure is on the increase,
faster cycles of change are leading to
an increased pressure to be innovative.
The growing complexity of knowledge
and methods or procedures has to be
coped with. This all results in leadership
challenges which no longer tie in with
the prevailing image of a manager as an
expert and an assertive decision maker.
Consequently, there is an imbalance
in the relationship between management
and employees. Employees feel
patronized, unable to develop their
potential, they either give up or fight.
Every second employee who quits his
job says the reason was his boss. Even
the manager’s self-image is beginning
to totter. They doubt their capability
to lead, yet they don’t have the right
conditions, the tools and knowledge to
change something. The management
board usually perfects the dilemma.
It keeps on choosing its leaders old
school, leaving the hierarchical
structures unchanged.
LuPe 16 Liebich & Partner
Leadership 2020 – risking changes.
Management practices in many
companies are currently pretty
heterogeneous.
Alongside
the
patriarchal and heroic “great man”
you meet post-heroic, cooperative
management styles and the first flexible
approaches. But social dynamics
necessitate a fundamental shift towards
humanization and collaboration. The
successful managers of tomorrow have
to orientate towards the individual.
For this we need a culture that regards
each employee, and also each manager,
as a person and an individual, and
not only as a performer. Apart from
that, they shouldn’t have to master
everything, they should be less
technically specialised, and more a
coordinator of their employees’ knowhow. As managers they have to
inspire and give sense to things. Some
of their main functions are being a
networker, and a talent manager and
job crafter, giving the individual
freedom in his workplace. Some of the
main skills they need are systemic
thinking, knowledge of simplexity,
excellent communication skills, coaching
skills and ambiguity tolerance, i.e.,
the ability to withstand ambiguous
situations or information, contradictions
and uncertainty.
Innovative leadership eliminates imbalances, thus creating
room for deviations from the norm, and synchronization.
No misunderstandings: managers will continue to be company
and results-oriented. In order to achieve their targets, they
will need to change their methods. It’s the task of the
management board to support them through flexible
organization structures, and systematic leader selection and
»Every second employee who quits says
the reason was his boss.«
development. Newly defined competency models are needed;
models that correspond to the desired image of managers.
And then we need the right selection and development tools,
which are effective for the recruitment, talent management
and development of leaders.
Many companies are beginning to rethink their
management culture. According to psychologists
Claudia Weyrauther, Andrea Schwan and Michael
Schuh MBA, who support the “Leadership 2020”
programme, it‘s especially about not stopping
halfway along the road to success, but reaching the
end of it, systematically and consistently.
liebich-partner.de/Berater
Creating clarity.
structures and define rules for the use
of the various channels. In connection
with meetings this could mean: The
meeting starts on time. The chairperson
may cancel it after ten minutes if key
participants are not present. Experience
has shown that when this is
implemented consistently the meeting
etiquette of all parties involved improves
significantly. Communication controls
require management commitment, and
apply equally to everyone, regardless
In organizations, it’s important what is
communicated when, by whom, how and via
which channels. Uncontrolled internal
communication can be both the cause and
the symptom of an imbalance in the regular
course of business.
Channel work.
of hierarchy. Delegates take them to
the departments. The implementation
of the controls should be randomly,
but regularly, reviewed. Figures are a
great help here. They measure the
progress during the time needed
for the controls to become habit.
Controlled internal communication
prevents imbalances in the business
process. But irregularities, overfull email
»Figures make progress
measurable.«
One-on-ones, meetings, telephone, email, intranet, employee magazines, etc.;
efficient communication in business is only possible if the information flow in the
internal communication channels is coordinated. It must be made clear which messages
are to be sent through which channels. Management communication, for example,
folders, swelling volumes of apologia,
can also be evidence that in the
company’s management culture not all
is running smoothly. In this case, the
benefits that communication controls
can have are limited. The company has
to confront the real problem.
»Management communication is a matter of
personal conviction.«
is a matter of personal conviction, and cannot be carried out via digital media.
General facts and information can be passed on via email and intranet. Moreover,
everyone has to know who to inform when, and about what. Should managers use
the “send” key to do their motivation work, they inform before they convince, if
contradicting messages are sent through the various channels, if responsibilities and
obligations are undefined, this can result in dangerous problems for the system.
What’s left are unsettled employees. At best, they try to compensate for the resulting
imbalances with increased commitment. They talk to anyone about everything
possible, until they are sure that they have all the necessary information for their
work, or that they have informed everyone who may be concerned. It’s no wonder
that the volume of phone calls, emails and apologia is exploding. And that this
method is not working in expanding companies. At this point, the business and the
employees’ motivation are really in jeopardy.
Rumors travel faster than the truth. That’s why
Norbert Wölbl thinks using the grapevine for official
internal communication is dangerous. It’s like
playing Chinese Whispers, the final message is
always a surprise.
liebich-partner.de/norbert-woelbl
It would be better to control communication flows intelligently, pragmatically and
unbureaucratically. An internal project team can clarify, for example, communication
LuPe 16 Liebich & Partner
Balancing the act.
In times of a growing lack of skilled workers, employer
branding is becoming more and more important.
HR departments focus on recruiting and employee retention.
But when a company and its employees go their separate
ways, people question how attractive that company is as
an employer.
Out of sight,
out of mind?
In the past, companies could pick and
choose their employees. Nowadays
it’s the employees who are deciding
which employer they want to go with.
Companies are positioning themselves
accordingly and working on their image.
They are pooling their HR resources
in order to attract and retain employees.
But not all employees come and stay
forever, some also have to leave the
company. If the subject of separation is
neglected, an imbalance is created that
negates that which was achieved by
»The company’s behaviour
in severance cases affects its
image.«
investing a lot of time, money and
manpower in recruitment and employee
retention.
According to Gaby Doll, implementing a fair
separation policy is not a compromise or a „kind
gesture“ by the employer. More than that, it is both
a human and an economic necessity.
liebich-partner.de/gaby-doll
LuPe 16 Liebich & Partner
Recruiting, employee retention and
separation are inter-related. Their
interaction should form, not necessarily
on equal terms, a suitable triad. Yet,
separation management is often a
taboo topic. Separation is a negative,
highly emotional topic. Companies
strive to get it over quickly, hoping
that they can keep any unrest quiet.
The consequences of possible mistakes
made when reducing headcount are
underestimated: how the company
behaves in severance cases has a lasting
effect on its reputation as an employer,
both inside and outside the company.
Apart from severance pay, labour court
proceedings, and social plans, there are other hidden costs,
which force up the price of a separation. It’s not a case of
“out of sight, out of mind”; other factors like uncertainty,
all kinds of fears and second thoughts among the rest of the
workforce, affect the productivity of the company. You have
to able to finance a lack of separation policy.
There’s nothing nice about firms separating from their
employees. However, a socially responsible approach makes
the situation more bearable for all parties. This means a fair,
top-down separation culture, which applies to all levels from
the CEO to the unskilled worker, regardless of hierarchy.
Senior management do the groundwork by defining the
company goals and values regarding human interaction. How
this culture is implemented is set out in an action plan developed
by HR experts in consultation with managers and possibly
some external consultants. It takes into account everyone
in the company who is affected by separation processes: the
managers who must be skilled in dealing with the employees
leaving and those exiting; the employees who are staying,
they need more information, more communication, more
motivation, and, last but not least, those exiting. They need
to be shown which career prospects they have, for example,
through new placement consulting, so that they can focus
»You have to be able to finance a lack of
separation policy.«
on their future. Thus, critical for employer branding: it’s okay
to differentiate between hierarchical levels when putting
together the package, but not okay with regards to human
respect.
Do we really
need to?
Creating
demand.
“What was once thought, cannot be
rescinded.” This is the core message of
the comedy “The Physicists” by Friedrich
Dürrenmatt. At first it appears to be
good news for innovative companies,
suggesting that ideas, once they are
born into this world, will establish
themselves sooner or later. Like the
microwave, which was invented in the
1940s, but it took 30 years for it to
make its breakthrough in the market.
»The company knows where to begin.«
A fallacy. In Dürrenmatt‘s words there
is no guarantee for success. We are
living in a society that basically needs
nothing. Our needs are satisfied. It is
not enough for a company to invent
something new. It must also be able
to create an imbalance in the smoothly
turning market and stimulate demand.
A current example: There are already
For Dr. Christoph Dill innovation is not just the
newest, but the newest thing that a company can
make money with. So developers have to keep an
eye on the product and the market.
liebich-partner.de/christoph-dill
countless ways to make a phone call. Nevertheless, Apple
was able to generate the biggest quarterly profit ever made
by a company in recent economic history, when it launched
»Innovations have the power to change
society.«
a much too large, much too heavy and much too expensive
smartphone in autumn 2014. Is it just a question of marketing
power? Not only! The company has demonstrated its instinct
for potential imbalances in the market: it knows exactly where
to apply its innovative competence in order to hit a nerve.
That’s precisely the way smaller and mid-sized businesses
also have to go. The better they are at aligning product
developments towards social megatrends like digitization,
personalization, mobility, health, etc., the better their
chances - despite lower spending power - of ruffling the
market.
And then “The Physicists“ comes back into play. Some
innovations have the power to change society. A responsibility
that companies need to be aware of. Their decisions have
consequences which go beyond the economic level. A reason
to consider these in many aspects, and not merely with
regard to maximizing profit. Business today is not black
and white. Moral considerations do not necessarily
exclude profit.
LuPe 16 Liebich & Partner
“You want to do everything right,
but you won’t manage it today.”
Accepting imbalances.
Is being in balance with oneself and the world a sign of perfect harmony?
An interview with Dr. Gunther Schmidt, coach and consulting physician for
psychosomatic medicine and psychotherapy, about highly motivated people,
the futility of internal struggles, and what one can learn for life from surfers.
a meritocratic person says to himself:
“Great, you want to do everything
right, and you do your absolute best
to achieve this, but you won’t manage
it today. And that‘s okay.” Instead of
quarrelling with oneself, enter into an
affectionate dialogue.
LuPe: Dr. Schmidt, when is a person
well balanced?
Gunther Schmidt: A person is well
balanced when firstly, he is aware of
his goals and values and secondly,
can conduct himself accordingly. That
sounds good, but has its pitfalls when
it is associated with the perfectionist
The peaceful alternative to the
internal struggle.
Exactly. Fighting with yourself costs
infinite energy, because it disregards
your own needs and doesn’t let them
speak out. However, in the dialogue,
a kind of internal conference, they
can all be heard and in the end,
priorities are set according to the inputs.
The result is a balance that, because
it respects ambivalences, may at any
time shift again in one direction or
the other.
expectation that one should always keep this balance. A
person lives in contexts. He is exposed to external influences,
which he cannot control, and that might force him to do
things which conflict with his values. Therefore he needs
thirdly, the ability to respond elastically to influences from
outside. This allows him to reach a meta-balance that
considers the changes in external circumstances.
Is it not then dangerous to strive for the
perfect balance?
Let’s take managers, leaders. They are exposed
to so many challenges that they can never
do everything absolutely right. Or they are
assigned tasks that contradict their beliefs,
for example, dismissing employees. Here,
meritocratic or conscientious people can suffer
internal conflict. So that to retrieve their
balance, they try to find the solution to this
contradiction - resulting from the organization
and their role in the organization - in themselves.
This is pointless because it comes from outside.
Fatigue and burnout are possible consequences.
What options are there to respond elastically?
First of all, a person has to understand that
losing the balance is not a sign of failure, but
that it’s a healthy reaction. It’s a skill to be
able to recognise the contradictions you are
up against. Realising this, you can search for
a balance that makes your own
Dr. Gunther Schmidt is medical director of the SysTelios Private
actions acceptable again. The
Clinic in Waldmichelbach-Siedelsbrunn, Germany and director
manager can communicate that,
of the Milton-Erickson Institute in Heidelberg. He founded
as a person, he does not support
hypnosystemic therapy and counselling and has won several
the dismissal, but in his role as
awards. As an author, he has published several books including
a manager, he is forced to do it.
“Good Advice in Times of Crisis - Concepts and Tools for
If he is thinking about leaving
Abnormal Everyday Situations” (available only in German).
the company, he can stay “with
meihei.de; systelios.de
a good conscience” if there are
higher goals, such as his family.
In connection with the workload,
So, a healthy life balance requires
constant training of your sense of
balance?
That’s about right. It‘s like surfing.
Because the water under the board
is moving, you can only keep your
balance if you keep moving, always
shifting your weight. As paradoxical
as it may sound, in an unstable context
you have to act in an unstable way,
so as to regain peace and renewed
stability.