English translation of the original German article published in Deutsche Lebensmittel-Rundschau 116(4), 138-146 (2020) Leadership 2020 New key competences for authorities, companies and their managers Part 1: Why it is not sufficient to place a box of apples in the lobby Johannes Hädrich Many people today work in a constantly changing, increasingly globally networked environment. As their methods of working change, the role of managers will also have to change in order to meet the new requirements. Dr. rer. nat. Johannes Hädrich » The author Chemist, Head of the Bioanalytical Research Lab at the EU Reference Laboratory for Dioxins and PCBs in Feed and Food, Freiburg, Germany (2006 to 2017) « Authentic, empathetic and appreciative leaders create an atmosphere of mutual trust, promote motivation, personal responsibility and a high level of performance among their employees - with their hearts, not just their minds. Recent studies show: effective and successful teamwork requires no hierarchy but equality; no centralized power but a culture in which all participants take responsibility. Power and control have become obsolete - empathy, honesty and willingness to cooperate are the order of the day; toxic leadership behaviour then automatically exposes itself. If superiors do not want to work alone in the future, they will have to rethink. A cultural change is overdue Many members of the "baby boomer generation" apparently believed that they could continue like this forever. Since their start in professional life decades ago, they have worked their way up to the management levels in a system of "command and obedience". "There they apply what they have learned from their superiors during their careers: Giving instructions, controlling, relying on power and hierarchy," is how Kirsten Brühl, coach and consultant in Frankfurt, describes the socialization of these leaders [1]. "But now," adds Axel Gloger, a freelance business journalist in Bonn [2], "their world, in which things were going well for many years, is tilting. Trained Facebook users are pushing into the world of work en masse - and are demanding a new style of leadership that is just like their home, the social network. Openness, dialogue, information sharing, flexibility, autonomy in working hours and feedback are essential. The Millenials [3], and not only these, want to have as little to do with the old hierarchical methods as they do with the encrusted structures of organizations, in which cross-hierarchical communication is rather the exception. 139 A characteristic feature of the management culture to date has been that many managers saw their main task as being to make a lasting contribution to work processes, to be the central point of contact and to monitor and assess the performance of their employees. A modern, value-based management system that primarily pays attention to the general conditions and removes obstacles to employees' work was not yet established. But at the latest with the changes taking place at all levels of society since the beginning of the 21st century, a profound change is also heralding a move away from traditional thought structures, values and institutions in the world of work. It has long been known that the quality of leadership correlates strongly with employee satisfaction and, as a result, naturally also with the realisation and further development of the key competencies of authorities or companies. The flatter the hierarchy, the more pronounced they are. However, the current Kienbaum & StepStone study [4] shows that the majority of those surveyed still work in classic hierarchical structures and only 29 percent in flat ones. Fundamental things must therefore change. But how could a culture of developing the potential of its employees emerge from the mindset of a hierarchical organization that regards its workforce as a mere resource? Time for a new mind set This will require a fundamental change of the silo-like organisational structures still existing in many companies and in the public sector, with their rigid, hierarchically ordered processes and pronounced division of labour, towards authentic value-based management: no longer from the top down, but from within. The classic form of control is no longer necessary; it is replaced by mutual trust [5]. Employees and supervisors sometimes speak different languages. The relationship between the two can also be difficult at times because of the traditional power gap that often still exists. Generational conflicts, chaotic working methods, a questionable management style, insufficient communication, prejudices or previous experiences lead to a critical or even negative attitude. Employees as well as managers then tend to orientate their perception one-sidedly in such a way that prejudices are confirmed and their negative attitude strengthened. Those involved only perceive information that matches their preconceived, negative image, which makes it even more difficult for them to escape from the deadlocked situation. It is always the manager's responsibility to prevent things from going that far, or to take the initiative to break this vicious circle early on and improve the relationship again. However, the superior is frequently overwhelmed by this task and often tries to avoid the conflict, which in the long run paralyses entire teams. At the latest here it becomes apparent that the undoubtedly also important compulsory advanced training courses or a reading of abundant guidebook literature on the market alone are not sufficient to develop an authentic leadership behaviour based on a positive ethical climate with the ability to establish sustainable relationships through building up confidence, to recognise conflicts and to solve them without disciplinary power. The authoritarian-hierarchical management style that has long dominated both in the public sector and in companies is now obsolete. Wherever it is still to be found, young and talented employees in particular often leave their employer [6] (their superior), or they » If your actions inspire others to dream more, learn more, do more and become more, then you are a leader. John Quincy Adams, 6th U.S. President « 140 » The salvation of the world does not lie in new measures, but in a different attitude. Albert Schweitzer, physician and pacifist « resign and "quit" internally. Differing ideas about authority regularly cause friction: older individuals believe that reputation and prestige are a matter of years or even decades, while younger people believe that authority must be earned. Leadership quality and corporate culture are crucial to retaining employees emotionally in the long term. However, the Gallup Engagement Index, Germany's most renowned study on workplace quality [7], shows that only 15 percent of employees in Germany have a high emotional commitment to their employer. Three out of four employees only work to rule (71 percent), while 14 percent of all employees have already resigned internally. In Germany, identification with one's own workplace is therefore frighteningly low. The principal cause is the behaviour of managers [8]. "Poor" bosses cost the German economy up to 103 billion euros in 2018 [7]. In addition to absenteeism, high staff turnover and poor productivity as direct consequences of internal dismissal, the damage caused by silent failure to perform in public administration is even more serious, because it is a loss of public funds and is contrary to the interests of the general public [8]. Leading today is very different from the leadership of previous generations. The old "top-down" style, which emphasizes the power and authority of the superior while suppressing the creativity of employees, is considered to be demonstrably ineffective [6] and has come to an end. This is because most of them want to get involved and work for the tasks assigned to them - to feel that their work counts. Believe in the people who are in charge. Given these increased demands, it is crucial for modern leaders to inspire enthusiasm and trust in those they lead. Working with a truly authentic leader will put heart and mind into the job. Teamwork and loyalty are established in the organization, a high work ethic and exceptional results are achieved. Problems are addressed more openly, so that they are remedied rather than being ignored. In the modern work environment, the boss who does everything best is a matter of the past. Good managers know: the real experts are their employees, not so much themselves. Their performance-related remuneration acknowledges this fact and also makes a significant contribution to the satisfaction, motivation and identification of the workforce with their tasks. Authentic empathy – key to a new understanding of leadership The strongest drivers of authentic leadership are: 1. authority based on personal expertise rather than hierarchical position, 2. a corporate culture that values individuality while fostering a sense of affiliation, and 3. work processes that enable employees to make autonomous decisions. This is the result of a study by goetzpartners, 'Förster und Netzwerk' and Prof. Matthias Spitzmüller [9], according to which 83 percent of 571 interviewed managers found a positive influence of authentic leadership on the performance of employee teams and 77 percent also noted positive effects on their own performance. Dealing with authenticity in companies as well as in the public sector is still often limited to lip service and a commitment to the management philosophy. Far-reaching changes in the concept of leadership, however, require employees to have confidence in their superiors, which only authentic leaders are able to give. Classical hierarchical mechanisms are no longer effective; what is needed is a fundamentally new understanding of leadership [9]. Credibility, authenticity and setting a good example are core competencies of successful leadership. 141 Authentic leaders have a moral and ethical code of values. They do not compromise when they believe something is right or wrong [10]. Ethically aware leaders do the right thing, at the right time and for good reasons. They put ethics before the outcome – and research shows that this increases the likelihood that their teams will also be loyal, committed and ethical in return [11]. Leadership must be real: when leaders do what they say, when they exemplify consistency and effectiveness, they gain the respect and admiration of their employees. Not by exercising hierarchical power, but by the power of their moral awareness and integrity, their team looks up to them. In contrast to superiors who only have themselves in view, sometimes with their flags in the wind and whose driving force is power, money or status, authentic ethically aware managers never forget that they have an enormous responsibility: they always put their organisation and their employees first. Leaders are responsible for the atmosphere in the workplace We humans are social beings - and we react to our environment. Our survival depends on our ability to cooperate and to trust those with whom we live and work. A good person will be less productive in a negative environment, and a bad person can do good in a positive environment. In other words, it is not so much the person that is decisive, but the general framework. If we create a favourable atmosphere at work, this leads to a positive attitude, otherwise we get exactly the opposite. The decisive factor is therefore the style of leadership; it is not the employees [12]. In his keynote address at John C. Maxell's "Live2Lead event" in Atlanta, GA (USA) in October 2016, the British- American author and motivation trainer Simon Sinek [13] described the following event [14]: “A few months ago, I stayed at the Four Seasons in Las Vegas. It is a wonderful hotel, and the reason it is a wonderful hotel is not because of the fancy beds. Any hotel can go and buy a fancy bed. But the reason why it’s a wonderful hotel is because of the people who work there. If you walk past somebody at the Four Seasons and they say ‘hello’ to you, you get the feeling that they actually wanted to say 'hello’ to you, it is not that somebody told them that you have to say ‘hello’ to every customer, say ‘hello’ to all the guests. You actually feel that they care. Now in their lobby, they have a coffee stand and one afternoon I went to buy a cup of coffee, and there is a barista by the name of Noah who was serving me. Noah was fantastic He was friendly and fun and he was engaging with me and I had so much fun buying a cup of coffee, I actually think I gave 100% tip. He was wonderful. So as is my nature I asked Noah, ‘Do you like your job?’ and without skipping a beat Noah says, ‘I love my job.’ And so, I followed up and I said, ‘And what is it that the Four Seasons is doing that would make you say to me ‘I love my job’? And without skipping a beat Noah said, ‘Throughout the day, managers will walk past me and ask me how I’m doing, and if there’s anything that I need to do my job better.’ He said, ‘Not just my manager, any manager.’ And then he said something magical. He says, ‘I also work at … (another hotel). There, the managers are trying to make sure we are doing everything right and catch us when we do things wrong.’ He says, ‘When I go to work there I like to keep my head under the radar and just get through the day, so I can get my pay check.’ He says, ‘Here at the Four Seasons, I feel I can be myself.’“ The same person, in a completely different management envi- » If you treat employees like they make a difference, they will make a difference. Jim Goodnight, CEO SAS « 142 » Every leader is weather maker and climate manager. Carsten Bach, trainer and author « ronment, provides a completely different experience for guests who come into contact with Noah. While managers often criticize their employees and think: "I have to get the right people in my team", in reality it is not the employees who are responsible, but the management. "If we create the right conditions," says Sinek, "we can win people like Noah at the Four Seasons. If we create a bad atmosphere, we get people like Noah at the … (other hotel)." [14] But far too quickly, we are in the process of hiring and firing again or not renewing the contract. But why do we do this just like that, with people whose work has suffered performance declines? Because we act without sensitivity, without empathy, which is unfortunately normal in our working world. For example, you go to someone in the office and say: "Your figures have dropped for the third quarter in a row, fix it, otherwise I can't guarantee your future with us." How inspired do you think this person will come to work the next day? With empathy, however, you would say, "Your figures are in decline for the third quarter in a row, are you doing well? I'm worried about you, has something happened?" We all work with limited performance at times. Maybe someone's child is seriously ill, maybe a team member has marital problems, or one of the parents has passed away; such things naturally affect performance at work. Empathy means caring about people with compassion, not just about their performance and performance numbers. Leaders are responsible for the atmosphere in the workplace, but this often seems to be forgotten. Superiors tend to believe that they are primarily responsible for results. In fact, no manager is responsible for results. A team leader is responsible for the members of the team, who in turn are responsible for results. If his team members are important to him and he ensures a good working atmosphere, then everything is going well [12]. Good leaders see themselves as part of the team, as employees who serve the goals of the company or agency they work for. Even if they have a different position in the hierarchy, they are less concerned with being in charge. What is more important to them is to take care of those in their area of responsibility. This inner attitude has nothing to do with hierarchy or authority. All too often, however, we confuse a leadership position with the ability to lead. But the truth is that any employee can be a leader, regardless of rank or position. And conversely, not everyone in a position of authority is a leader [12]. Everyone can be a leader Good leadership is not easy, but everyone can practice it – even without formal position or authority. High seniority, a fancy job title, a large team or the mandate of the board level are not prerequisites for an effective leader. Rather, good leaders are those who implement projects and make things happen. Leadership has nothing to do with hierarchical position, but with relationships and the ability to inspire, encourage and develop people (including the leader himself). Leadership means first and foremost responsibility: whoever takes on a higher position bears more responsibility for the well-being of more people (and their families). Many supervisors who sit at the highest levels of companies or public authorities are not leaders. They have powers and we do what they say because they have power over us, but we would not follow them. In contrast, many employees without formal leadership have chosen to respect their colleagues and that they are important to them. And we would follow them anywhere [12]. 143 The most influential leaders or mentors are often those whose enthusiasm for their work and for the organization in which they work infects peers, thus winning them over to the accomplishment of common tasks. Without title, hierarchical position or authority, they exert an inspiring influence across traditional boundaries, relying on their personal authority. This "lateral leadership" (lat. latus, from the side) is based on trust and understanding. Sometimes these people go far beyond what is normally expected of them. They become innovative in ways that challenge previous assumptions about how best to perform a task. Especially when it comes to tackling extraordinary challenges, they think "outside the box", question established strategies and look at things from a new perspective. This "thinking outside the box" can be visualized with the "nine dots creativity puzzle": Nine dots are arranged in a square matrix, each one equidistant from its neighbours (Figure 1). If you don't know this problem yet, try to solve it now before you continue reading by connecting all nine dots together, but drawing no more than four uninterrupted straight lines. Fig. 1 The nine dots problem (possible solutions see figure 2). Most of us will try to keep their lines within the "box" created by the dots. However, if you look closely at the instructions, they do not contain any such specification. Two possible solutions are shown in Figure 2, and please remember that nothing has been said about the thickness of the line to be drawn. For example, you could draw a line the width of the square matrix, and then connect all the points in a single move. Leadership is a decision, a choice that everyone can make for themselves. If we decide to treat the people around us with sincerity and honesty and they are important to us, then we have become a leader. One of the most important tasks of a leader is to establish good contact with the members of the team and among each other – for example, by greeting people with a smile, addressing them and asking them how her or his day went, and then waiting to hear the answer and actually showing interest in what was said – by doing this again and again – by taking time to answer questions – by explaining the "why" of upcoming tasks and projects [12], because then people want to be a part of it – by being empathic and listening to the team, but also by devoting time to each individual with empathy and understanding, in order to appreciate his or her personality and identify particular strengths. And while we spend time with them, the employees also get to know each other, they discover common values and convictions and finally develop trust in each other. Trust is created by sharing common values and convictions. People open up, and one day they feel friendship with each other. The success of good (lateral) leadership, the success of true mentorship, is thus primarily in the service of others, regardless of title or position. Being a mentor is not a one-way street: leaders and team members are there for each other to give and take from each other, and they learn from each other. As well-trained, sensitive social beings, our colleagues and ourselves instinctively sense whether things are going well, feel social disturbances and are able to judge whether someone deser- » Traditional leadership styles based on disciplinary authority as a source of power are losing importance. The new form of leadership is called “lateral leadership”. « 144 ves their trust or not. When they feel safe, they lower their defences, their protective mechanisms, and gradually put them down completely. As a natural result, people will do their work cheerfully and with pleasure. Even if they are subordinate to us, we can now simply let them do their job. We don't have to check their results before they go outside; they don't need our approval because everyone always keeps the interests of the others in mind [12]. Over time, this creates an atmosphere of deep mutual trust, a positive environment where everyone enjoys coming to work in the morning. Toxic leadership behaviour contaminates the work environment » Who cannot love people is unable to lead them. Karlheiz Binder, manager « Managers are responsible for the team members, who in turn are responsible for the results. If this management structure is set up correctly, everything will run smoothly. If not, however, those involved will be forced to spend more time protecting themselves from their superiors than doing their job [12]. They will have to divert time and energy from their resources, from working on their tasks and projects, from developing their work and organisational culture to protect themselves from their own organisation. Precious time is wasted, bad ideas that should be eliminated quickly linger, and good ideas develop too slowly. As if all of this wasn't bad enough, such a CYA culture ("cover-your-ass") is not only one of the most significant inefficiencies in working life, but also a gateway drug to insincerity and even brazen lying [12]. Gossip and rumours (the so-called "grapevine") also cause stuffy air. Employees who often speak negatively of each other, criticise the abilities of others or act out of self-interest are signs of poor leadership behaviour and contribute significantly to a toxic working environment [15]. At the beginning of the third decade of the 21st century, there are still superiors who literally take their people's air to breathe. The widespread lack of key competencies such as attention, clarity, honesty, commitment, empathy, trust, appreciation, feedback, support and encouragement are further indications of a toxic environment. Conflicts, stress, bullying, conspicuous absenteeism, high staff turnover, reduced productivity and failure to take social responsibility are far-reaching consequences of management mistakes, sometimes by just one person, from which the team, the involved department and often the entire institution suffers. In addition to a lack of leadership strength, judgement or interest on the part of the top management, the causes of such leadership failure are to be found above all in the psychology of the person responsible [16]. Research has shown that people with personality disorders, such as psychopaths and narcissists, are most often found at the higher levels of management [17]. Their actions usually cause a domino effect within the organisation and set the tone for an entire corporate culture [16]. Although they typically make up only a small percentage of the workforce, they can cause enormous damage in management positions [17]. Studies show that people with narcissistic or psychopathic personalities are three to four times more likely to be in positions of power than the average population [17]. Research has shown that people with personality disorders, such as psychopaths and narcissists, are most often found at the higher levels of management [17]. Their actions usually cause a domino effect within the organisation and set the tone for an entire 145 Fig. 2 Two possible solutions to the nine dots problem (see Figure 1). corporate culture [16]. Although they typically make up only a small percentage of the workforce, they can cause enormous damage in management positions [17]. Studies show that people with narcissistic or psychopathic personalities are three to four times more likely to be in positions of power than the average population [17]. Their share in leadership positions is about six percent, and the higher the level, the higher the proportion of people with a narcissistic personality [17]. And this is precisely the problem: the higher they climb the career ladder, the more employees, including their family environment, come under their influence. This makes it necessary to take a closer look at toxic leadership by people with personality disorders, possible effects and what can be done in such cases. remarkable commitment made possible 30 successful years of examining countless official samples for the most diverse questions, the implementation of a large number of demanding studies for method development and validation, and finally a decade of intensive research work on behalf of the European Commission. (Continued in Part 2) Acknowledgement I am grateful to Mrs. Rafaela SommerProsinger (DGSv) and Mr. Reinhold Bader, psychologist, both from Freiburg i.Br., for their particularly informative discussions on this topic. My special thanks go to the teams of dedicated employees in several food and environmental analysis laboratories. Their openness in conversation, their constant interest in the "why" of the wide range of tasks and their » Leadership is based on inspiration, not dominance; on cooperation, not intimidation. William Arthur Wood « 146 References [1] [2] Axel Gloger, former Chairman of Trend Intelligence think-tank († 26.10.2018). [3] Millenials, also called „generation Y“, refers to the population cohort born between the early 1980s and the late 1990s. The letter Y is pronounced in English "why", which is a reference to the tendency to question, sometimes described as characteristic of generation Y; https://de.wikipedia.org/wiki/Generation_Y (accessed: 02.02.2020). 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[15] Anonymus: 4 signs you can recognize a toxic work environment. Kununu – Workplace insights that matter. https://news.kununu.com (accessed: 02.02.2020). [16] Boddy CR (2011): Corporate Psychopaths: Organizational Destroyers. Palgrave Macmillan, London, UK, ISBN 978-0-230-284722. [17] Groll, T (2014): Auffällig viele Psychopathen werden Chef. Psychologe Jens Hoffmann im Interview. Zeit Online (26.05.2014). https://www.zeit.de (accessed: 02.02.2020).
