5 Characteristics of Modern Leadership

5 Characteristics of Modern Leadership

The mission of MDI is to support leaders who strive for a better world.

Investing in leadership development and unlocking the development potential of leaders guarantees companies long-term benefits. Furthermore, they promote creative solutions in innovative change processes.

Therefore, with this article, we make MDI’s view of modern leadership even more transparent.

 

Mag. Gunther Fürstberger

Mag. Gunther Fürstberger

CEO | MDI Management Development International

Gunther Fürstberger is a management trainer, author and CEO of Metaforum and MDI – a global consulting company providing solutions for leadership development. His main interest is to make the world a better place through excellent leadership. He has worked for clients including ABB, Abbvie, Boehringer Ingelheim, DHL, Hornbach, PWC and Swarovski. His core competence is leadership in digital transformation. He gained his own leadership experience as HR Manager of McDonald’s Central Europe/Central Asia.  At the age of 20 he already started working as a trainer.

 

1. Modern Leadership is aimed at improvement 

  • Leadership provides a definition of meaning.
  • Leadership creates, develops and completes.
  • Usually a status quo can be transferred into a better future, sometimes maintaining a good status quo is a leadership task.
  • Leaders are disruption surfers: they are aware of the changes in their environment and choose the right disruption waves to ride. 

2. Modern Leadership deals responsibly with resources 

  • The goal is a circular economy and no longer unlimited growth.
  • Leadership always considers the consequences of its actions for people and ecosystems.
  • A responsible manager strives to leave the world better than he found it. 

3. Modern Leadership restrains itself

  • Only as much leadership as necessary.
  • Hierarchy is still needed, e.g. if the employee has little experience, if there is manager liability, if personal and organisational goals are contradictory.
  • Leadership goes in both directions, employees also lead their managers.
  • By exercising restraint, leadership creates an environment in which everyone is happy to contribute their own strengths and concerns.
  • Leadership aims at the self-management of the people entrusted to it. 

4. Modern Leadership is as cooperative as possible

  • Leadership does not see employees as subordinates, but as partners at eye level.
  • Leadership is based on agreements
  • Leadership tries to win over the commitment of employees for concerns and thus builds more on intrinsic than extrinsic motivation.
  • Just as companies are paid for services by their customers, employees are paid more and more for agreed and achieved results and less on the basis of working hours. 

5. Modern leadership serves the system

  • The Leader is more concerned with the collective good than with the individual good.
  • Leadership supports learning.
  • Leaders continue to learn on their own (When was the last time I did something for the first time?).
  • Leadership develops the potential of employees.
  • Leadership makes itself aware of the effects of its own actions and interactions in the system.
  • Leadership ensures that decisions are made on the basis of short- and long-term considerations.
All hands OKR meeting

Home office accelerates the overall trend from hierarchical to lateral management.

But what exactly is changing in lateral management?

Summary: Keeping it Short & Sweet

    • Modern Leadership strives for improvement
    • Modern Leadership holds back and lets others come to the forefront
    • Modern Leadership happens at eye level
    • Modern Leadership serves the system (and sees itself as part of it)
    • Modern Leadership deals responsibly with resources

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    The starting point is technological progress: Binary code, microchip, internet, big data, internet of things, artificial intelligence, physical products (combi of digital and reality), intelligent personal assistants etc. have and will continue to change our day to day life.

    This technological progress led to some main changes in how we work and live together. On the basis of Khan’s* work we identified 6 core changes:

    1. Interconnectedness
    2. Abundance of information
    3. Increased complexity
    4.  Increased transparency
    5.  Less hierarchical, more empowerment
    6. Man Machine cooperation

       


    1. Interconnectedness

     

    Billions of smartphone users can interact with each other without time delay. Experts are forming worldwide research networks, crowdsourcing allows to receive many ideas, financial resources etc. with little cost and time investment.

     

    2. Abundance of information

     

    It can be a blessing and it can be a curse. We can access most relevant info in our vicinity or from the other side of the world. Some people rather look at their Smartphone in order to see, how the weather is than looking outside the window. Highly paid software developers are pretty good in seducing us to spend more and more time with applications and to activate the push notifications.

     

    3. Increased complexity

     

    With the increased speed of change and more and more people sharing the same space, complexity goes up. In most cases, organizations need to increase internal complexity in order to get along with external complexity. E.g. a retail has to build up an online shop and blend the physical and online world, find a way to balance classical retail management with the agile world of online development …

    speed of change in the digital disruption

    With the increasing speed of change, the complexity goes up as well

    4. Increased transparency

     

    Nowadays it is very difficult to keep a higher level of privacy. Cameras everywhere in the city, iPhone search function, Google earth, Facebook etc. make our day to day life very transparent. If somebody wants to find out, whether the spouse has an affair, this should not be too difficult anymore ?. At the same time, you can run a business on other continents with e.g. using Google docs, Yammer, Trello and many other kinds of cloud software.

     

    5. Less hierarchical, more empowerment

     

    In a knowledge economy, people want to have a say. And they also need to be empowered to make decisions close to the client or the technical challenge. Hierarchy is too slow. Laloux’s reinventing organizations, holocracy, lateral leadership etc. point at democratic alternatives. Hierarchy loses influence but will not fade totally.

     

    6. Man-machine cooperation

     

    Anorganic entities with some digital steering (programs, bots, robots) and humans work side to side. We find thousands of example in industry, medicine, business, travel etc.

    In the metaphor of the Disruption Surfer, these 6 core changes describe, what the waves are made of. Each wave is unique. Nevertheless, waves have common patterns. If we know how to read them, we will be successful in picking and surfing the next wave.

     

    Article written by Dominik Etzl und Gunther Fürstberger

    *Shayan Khan/Tikkanen (Stockholm Business School 2016)

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    Waves instead of a solid ground

     

    Often, these waves arise far away before they come to the coast, where their size is only predictable at short notice. Therefore, they can either be a threat or a great chance for the surfer. An experienced surfer observes the waves and chooses the right one for him. If the waves are not strong enough, you can’t really do a lot with it.

    Waves of the disruption

    Is the wave a threat or a great chance for the surfer? An experienced surfer observes the waves in the first place and chooses the right one for him afterwards.

     

    As a leader in the digital transformation, you should definitely keep an eye on the approaching waves of change. Many companies are drowning because they ignore the changes, which are often coming from an unexpected side. If they do not ignore them, they often only recognize them when it is already too late. In the meanwhile, others could perceive the opportunities and the creative potential of the changes and are often surprised by the unexpected possibilities which suddenly arise.

     

    The surfboard – a tool of agile leadership

     

    Basically, a surfer only needs the right surfboard as a tool. The material entry barrier for this sport is very low. This applies to the digital economy as well. Many of today’s largest Silicon Valley companies were founded by students with little equity. As an agile leader, you have a variety of tools at your disposal. We’ve already worked out the most important key tools, you should have as an agile leader in a previous blog article.

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    As with the digital economy, the material entry barrier at surfing is very low – all you need is a surfboard, basically. Some of Silicon Valley’s top companies were founded with little equity as well.

    Next to the tool-set, the associated skills want to be developed as well. A surfer’s main skill is the ability to balance on a moving surface which can only be achieved by a constant and balanced movement. This is cognitively difficult. As a surfer, you develop a sense of balance through a lot of practice. The same applies to an agile leader. The key to stay on track is the ability to react quickly and adequately to the many and rapid changes. Doing this by himself is quite difficult. Therefore he needs additional collaboration skills, such as creating transparency and visualizing things.

     

    Attitude and skillset

     

    Both, the surfer and the agile leader, are only able to gain mastery when tapping into creative potential.

    Even more important as a tool-and skillset is the right mindset: the disruption surfer sees a change as an opportunity, acts with others at eye level and with much openness. Even if the disruption waves look threatening to many people in the first place, the disruption surfer says, with brightness in his eyes: “Wow, this wave I’ll take!”

    Article by Mag. Gunther Fürstberger, CEO of MDI Management Development International.

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    The four domains of the framework and their fields of application

     

    All in all, the framework can be divided into 4 different fields:

    • Simple: in this field, the relationship between cause and effect is clear and obvious for everybody. Simply said: “if you do this, you can expect this response”.
    • Complicated: there is a clear relationship between cause and effect, but an analysis and/or expert knowledge is required.
    • Complex:  the relationship between cause and effect can only be identified afterwards, which is why it is not possible to make predictions about the future but only about the past.
    • Chaotic: there is no relationship between cause and effect.

    With this framework, situations can now be divided into this four different domains. This gives me a clear and situation-specific instruction on what to do. The framework helps you to quickly analyze situations and to find the right management style. It makes a huge difference, for instance, if I am in a complicated or complex business environment.

    In the complicated environment (classic management methods), an analysis should be carried out, whereas – in the complex environment – agile methods should be used. This helps companies not only to find the right management tool in a quick and efficient way but also explains why problem X, for instance, should be solved with agile methods, whereas problem Y shouldn’t.

    Uschi Cynefin Framework Trainer
    About the author

    Ursula Weixlbaumer-Norz is always looking for new solutions for leadership challenges of our time. She is working as a trainer and coach for many years already and is specialized in team development, negotiation techniques, conflict and crisis management, intercultural competences, communication, motivation, change management and management strategies.

    Since when are you working with the cynefin framework?

    Ursula: About 1 1/2 years ago I came across the cynefin framework and immediately liked the idea of the framework really much. This year I was attending a further education in London on this topic.

     

    What are your experiences with the framework?

    Ursula: Nowadays, you get the impression that agile methods are everywhere. During my coachings and trainings, I often deal with leaders who do not know where and how to use all those new agile methods. This is exactly where the cynefin framework can support them, which makes the decision which problem-solving method to us, much easier.

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    Whereas the business world used to be rather steady and predictable before the digitalization, it is increasingly volatile, uncertain, complex and ambiguous (VUCA).

    Nevertheless, many leaders still employ practices, strategies, and tools that were common in times before digitalization, where leadership was long-term, bureaucratic, hierarchical, directing and instructive.

    But – this leadership model is no longer up to date due to the changes in the business world. Specifically, this means that

    • the “internet of things” is real
    • information is accessible to everyone instead of a small group only
    • old businesses close down and new ones open up every day
    • former constants now underlie regular change
    • expertise shows in a well-developed resource-network rather than mere theoretical knowledge

     

     What are the consequences of the digital revolution for leaders?

     

    Due to the changes in our business world, a lot must change on the leadership level as well. Leadership must be adapted to constant changes and keep track with the latest technologies and trends. But what are now the specific consequences for leaders?

    • Traditional development is expensive and time-consuming
    • Teams need to be empowered; collaboration is essential
    • Development often requires customers to be involved in the process
    • Requirements are constantly changing
    • No clear conclusion, development continues

     

    In short: a new leadership approach is needed.

     

    We need a leadership approach that is natively adaptive to change – and does not build upon past conditions. An approach that does not assume that the world is stable and predictable – but rather is aware of the fact that the fundamental conditions have to be questioned again and again during a project. After all, the future of business-success belongs to those, who know how to use the changes for themselves and to turn challenges into opportunities.

     

    Agile leadership as a new leadership approach

     

    Agile leadership originates from the IT industry, which is an industry that is constantly changing. This leadership approach is designed for fast changing cycles and is using shorter sprints, iteration cycles, and continuous feedback. Agile leadership is driven by transparent processes and developments and supports team-collaboration, communication, and interaction within the team.

    What do you need as an agile leader to be successful in today’s world?

    agile leader in digital transformation
    1. A new mindset, to see change as an opportunity to create an agile organizational culture, to communicate the „big picture“ and to always be one step ahead of the competition.

    Individuals & interactions instead of processes & tools

    Working software instead of comprehensive documentation

    Customer collaboration instead of contract negotiation

    Responding to changes instead of following a plan

    2. A new skillset, to create the framework and infrastructure for an individual development of each employee.

    Skills, an agile leader needs to have

     

    • Entrepreneurial thinking
    • Strong customer focus
    • Employee focus
    • Teamwork
    • Self-leadership and reflection
    • Tolerance for ambiguity
    • Flexibility
    • Change management competencies
    • Solution competency
    • Leading virtual teams, leading from distance
    • Knowing agile work and management methods
    • High communication competency

     

    3. A new toolset, to successfully implement the theory into practice and maintain an agile organizational culture.

    What are the concrete consequences for you as a leader?

     

    Due to the digitization, roles and responsibilities have changed within companies. The market is changing daily and the world is becoming increasingly uncertain. Agile leadership is indispensable in order to be able to assert itself as a company on the market in the long term. However, the successful transition to an agile leadership model requires the full support of everyone involved.

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    South Africa – also called the rainbow nation – is famous for its beautiful beaches, an impressive wildlife, the warm hospitality of the people and much more. The country doesn’t have an easy past though. Uncertainty and intercultural conflicts are still noticeable. We talked to Gerard Le Sueur from South Africa, who is working as a trainer for almost 20 years about the current challenges, differences to Europe and the being a trainer in times of digitalization.

    The current situation: a challenging environment and the Seta system

     

    According to your opinion: What is currently the biggest challenge for organizations in South Africa?

     

    Gerard: There are a few: the political uncertainty/turmoil, corruption and ethical issues involved in that, economic climate and uncertainty, including uncertain and changing economic policy, a political economic atmosphere that is unfriendly to business, navigating the volatile and the uncertain environment every day.

     

    “Nice to have” or a strategic factor of success: How do you experience that South African organizations view (international) leadership development at the moment and how will that be in the future?

     

    There are different levels or hierarchies. Multinational companies, like European ones will very often follow the global trend to focus on their core business and outsource product and service delivery. This delivery is mostly global and from one or few sources; one global delivery. The same is true in South Africa, where multinationals will drive delivery of leadership training from a single point, often outside of South Africa. Large South African organizations follow the trend in that they will follow the Leadership technology that is trending and they don’t fall far behind. Here these South African organizations will often use Business schools or very well-known consulting companies to delivery programs. The fact that in South Africa there is a system for delivering training that is acknowledged officially via Seta’s (points), which can collect towards an official qualification or access to university programmes, means that there is often collaboration with business schools or officially recognised Seta providers. Locally there is is also a tendency to developing leadership skills in levels, basic management (upskilling people who have little “technical” management experience), where one would say the leadership is not new or sexy, but as the leadership level and experience increases there is more strategic and personal process side of Leadership that is found, like you do globally.

    Training designs in South Africa & “African leadership”

     

    As we all know international leadership development is a lot about intercultural awareness and empathy. For a training professional doing a leadership program in South Africa: What would you as the expert recommend and are there important things he/she shall pay special attention to?

     

    You are never an expert, just another person in the room. We are different and the same. Don’t pretend to be the same, when you aren’t and don’t be totally different (better or not from here). When you engage deeply in South Africa it stretches you. Concepts like VUCA are everyday real experiences, you need to be able to feel totally uncertain, listen deeply and say you are sorry without losing your center. A friend says, “It’s the choice between being right or happy.” In Africa, this choice will confront you!

     

    People from many different cultures are living in South Africa and there are eleven official languages which are probably not always easy: Are there any typical challenges when it comes to the cultural differences of the participants of a leadership program and did it change a lot in the last couple of years?

     

    In South Africa, there is a huge discussion going on about “what is African leadership?”  This comes from the colonial inheritance, which involves EVERYONE, even Europeans coming over to work in South Africa. So we need to be very open to questioning and discussing what works for South Africa. Even if you agree to come up with the same result, the discussion and questioning are important. Don’t bring your powerpoints and say this is how the world works.

    There is a higher level of volatility and dissatisfaction, this between cultures. Meaning that the sensitivity and “aggression” is higher, but the energy generated by openness and warmth is also much higher. So never be afraid, unless you think you know better.

    Design tips for your international leadership program

    In South Africa, the rainbow nation, people from many different cultural backgrounds are living which is not always easy

    People from Europe who don’t know South Africa may underestimate how developed South Africa actually is – in your opinion: are there any major differences between leadership development in South Africa and Europe for instance and if yes, can you tell us something about them?

     

    We are talking about African leadership (maybe a more globally accepted form of leadership), inclusivity and equality on a very deep level. Europe is not really anywhere near the same depth of this discussion. The Status quo in Europe is very strong to the point that nobody really recognizes it, “They don’t see, that they don’t see what they don’t see”, whereas in Africa there is real disruption here. Chaos and lack of clarity too, but rigorous discussion and challenging.

     

    Being a trainer in times of digitalization

     

    What do you think of the following: In times of unstoppable digitalization – Are classroom trainings – which means face-to-face – still up-to-date or will they vanish soon? And why/why not? Can you think of any differences between Europe and South Africa?

     

    The University of Stellenbosch Business school has been doing very advanced virtual classrooms for many years, including people who sit “in the room”. Running webinars, online (with presence via media tools) is very common and developing itself very professionally, using IT technology to engage and connect in very practical ways. Here I would say Europe is actually behind in some ways, partly because it’s closer and easier to bring people together, geographically and economically. This, however, does not take away the need for “presence” programs but drives the ingenuity required to deliver impactful programs that are a mix, holding the engagement over longer periods of times, using a variation of technology.

     

    Let’s talk about international leadership trainings in general: what is the most important thing when working as a trainer on an international level and what are the typical challenges? Can you give us any tips?

     

    An Old bushman told me, “You white people (meaning westerners) are really stupid. First, you dig/build the hole you want, then when you lie in it, you cry that it isn’t right and you need to change it. He said, “There’s nothing to change. Everything is exactly as it should be.”

    I understand that it is a huge arrogance and disservice to humanity, to think we know what to do and what must change. Don’t go to a leadership training thinking you are going to “fix” something or somebody. Rather stay at home and plant some veggies, if that’s your attitude.

     

    According to your opinion: What will be the biggest challenge for the training & development industry in the next 5 to 10 years?

     

    Global roll-out, that suits the local requirements, including finding the right level of collaboration to make this work for both the central organization and the localized.

    Our interview partner

    Gerard Le Sueur is living close to Cape Town, South Africa and has more than 18 years of experience in Consulting and Organisational change development, including topics such as Agile Leadership development and development of teams. He loves to be a development guide because it is his way to stay in a relationship with the world. His personal preference regarding development fields? “Whatever moves me and pulls me towards it. I love coaching at present.”

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