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Greater employee retention through generational diversity

Greater employee retention through generational diversity

by Karen McCullough | Feb 27, 2023 | Best Practice, Leadership Impact, Leadership Tips | 0 comments

Greater employee retention through generational diversity

Over the last few decades, generational diversity in the workplace has increased significantly. The youngest Generation Z brings in new energy, while the oldest – Traditionalist Generation – often clings to used structures.

Sometimes it can be difficult when different generations work together. Keynote speaker Karen McCullough talks about such generation management in an interview.

Short fact check

Pew Research Center defines the birth years of generations:

Traditionalists: 1928-1945
Baby Boomers: 1946-1964
Gen X: 1965-1980
Millennials: 1981-1996
Gen Z:1997-2012

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Being a servant leader – Servant Leadership

Being a servant leader – Servant Leadership

by Gunther Fürstberger | Feb 14, 2023 | Leadership Impact, Leadership Tips, MDI Inside | 0 comments

Being a servant leader

“Servant Leadership” is a concept by Robert Greenleaf that describes the manager as a servant to their employees. What this model is specifically about and what its strengths are, you can read in this article.

The origin of the approach

In Hermann Hesse’s “Morgenlandfahrt”, a spiritual seeker experiences how the disappearing servant turns out to be a true leader in retrospect. This story inspired Robert Greenleaf to develop his life’s work, the concept of serving as a leader. A number of well-known authors and CEOs of companies such as Starbucks, Nordstrom and SAS followed him in designing and practicing servant leadership.

A talent management executive at a large international corporation told me one day, “I don’t believe in the honest intent of servant leadership. To me, it seems more like a motivational ploy. In the end, the ‘servant leaders’ earn a lot more than the employees they seem to serve.”

 

Trick or mission? Manipulated motivation to high performance or the revolution of the working world that turns the hierarchy pyramid upside down?

Managers, especially CEOs, should ask themselves what kind of leadership culture they have and want in their own organization.

The purpose of leadership

What is the purpose of leadership? This is a good question to start a reflection on developing your own leadership culture. The why question is closely related to the „for whom” question. Which stakeholders in an organization are given priority? The shareholders, the employees, the customers? Customers, in a broader sense, can also be certain groups in society or even parts of nature for which the organization wants to create added value.

Focus on employees

Servant leadership is usually associated with a focus on employees. Greenleaf sees, among other things, employee growth as a hallmark of servant leadership. “Serving the community” is also found as a frequently mentioned goal. And then there’s the aspect of getting employees to perform at their best by serving. Shareholders understandably feel comfortable with the latter.

The desired leadership culture is derived from the purpose of the organization. If the purpose of the company is to maximize profit, then human resources tend to be seen as a mean. And servant leadership will consequently be a downstream mean to promote the purpose of “motivated, high-performing human resources.”

While the upside-down pyramid is well suited to question a culture of exploitation of the powerful over the subjugated that has been going on for ages, contradictions arise if taken to its logical conclusion. Institutionalized leadership almost always goes hand in hand with power, e.g. with the right to impose positive and negative sanctions. This makes it easier to achieve organizational goals and often also benefits the led, e.g. through higher security.

However, the history of mankind until today shows that power has often been used for one’s own advantage. And in order to maintain the privileged position of the leadership group, subtile and brutal suppression mechanisms have been used.

Leadership Development

For the common good

The inverted pyramid thus also expresses the desire that leadership does not exploit but support and that the leader put others before themselves. For at least 2000 years there have been rulers who have called themselves servants, from Marcus Aurelius to Joseph II, Frederick the Great to Queen Elizabeth.

In this way, they have expressed how they interpret their privileged right to rule for the common good. Even if they did not donate their castles to the poor, they may have done more for the wellbeing of the people with the servant attitude than absolutist rulers with a “the–state–is–me attitude.”

There are also good arguments why a radical reversal of ruling relations and privileges would not be fair: Those who make an above-average commitment to goals that benefit others should also be entitled to a reward. This commitment can be in terms of time, talent and resources. However, it is questionable whether this justifies a CEO earning 147 times as much as a typical worker in Germany and 300 times as much in the USA.

In addition, there is the legal perspective with the legally anchored liability of the CEO. Someone has to take personal responsibility for wrong decisions and this is normally the managing director registered in the commercial register. Payment defaults or accidents can result in liability. Who bears this liability risk if we turn the pyramid upside down?

In the end, it will probably remain with individuals and they must then also have the possibility to implement decisions. We can flatten the pyramid, we can supplement it with self-coordinating networks, we can develop an empowerment culture – employees and managers can service each other – but ultimate, personal responsibility will remain.

Servant leadership in companies

Companies associated with servant leadership include Nordstrom, Fedex, Starbucks, Southwest Airlines (Herb Kelleher), SAS, and Marriott. Let’s look at what each of these companies value. In most companies, the positive impact of employees being treated well is seen in good customer service:

  • For example, the first stated corporate value at Marriott is “Put people first.”
  • Nordstrom also placed a lot of emphasis on customer service 120 years ago. “Do whatever it takes to take care of the customer”. (John Nordstrom 1901). This attitude has been passed down generations in the entrepreneurial family and has been enriched with humility and employee service orientation.
  • FedEx has built a servant leadership culture. FedEx believes that engaged employees – individuals who trust the organizational goals and have a strong desire to contribute – will implement the organizational plan and ultimately ensure the success of the organization.
  • At Starbucks, long-term CEO Howard Schultz emphasizes the company’s purpose: “Servant leadership is about serving a higher purpose, and when that higher purpose is recognized by everyone in the organization, everyone is indeed a servant of that purpose.” Kelly Creighton describes the organizational culture at Starbucks as: “A culture of belonging, inclusion and diversity.” It also always puts its employees first and encourages everyone to grow into leadership roles within the company. At Starbucks, employees are encouraged to build strong relationships with each other and collaborate and communicate openly. Employees can ask questions and reach out to their supervisors. Ultimately, Starbucks takes the view that “how you treat your employees is how you treat your customers.“
  • Jim Goodnight, founder and CEO of SAS says “Treat employees as if they make a difference and they will.”
  • At Southwestern Airlines, the empowerment idea is especially held dear: Colleen Barrett, former president of Southwest Airlines, explained, “Our whole leadership philosophy is very simple: treat your employees right, and good things will happen.” She assumes that Southwest Airlines has created policies, procedures and rules, but ultimately empowers its employees to use their own common sense and good judgment when needed. It trusts its employees to do the right thing when necessary and does not reprimand them for doing so. For example, if a stranded customer needs a hotel room, employees are empowered to help them if they can. And when dealing with the public, employees are encouraged to find the best solutions and approaches that make sense for the situation at hand.
hackatons create innovations and ideas for leaders

Conclusion

The term “servant leadership” could be misunderstood in the sense of continuity and exclusivity. I.e., that the manager always acts as a servant to the employees and that therefore, there would be no room for the manager to be supported by the employees. This seems onesided and unrealistic. Robert Greenleaf also called his first publication “The servant as leader” and wanted to emphasize that the desire to serve should come before the desire to lead.

Just as the communist countermovement to industrial age capitalism did not yet represent the final chapter of economic history, servant leadership also offers itself more as a line of thought and less as the terminus of a leadership culture. If we understand leading and serving as polarity, then this makes it possible to find a suitable balance for the situation in the interaction between employees and managers.

Similarly, the misunderstanding would be that serving goes in one direction. Namely, that only managers should serve their employees. Transactionally, this would be a reversal of the parent-ego to child-ego relationship. Traditionally, leadership has been seen mostly patriarchal and sometimes matriarchal, i.e. the leader has to care for the children similar to parents, but can demand obedience.

The inversion of the parent-child relationship does not really work. The relationship of two adults who support each other would be more constructive. Especially nobles and rich people have servants. The term servant indicates a subordinate position. This could be resolved in a contemporary understanding of leadership: Employees and managers support each other, partly in different ways and with different means, but at eye level, with mutual appreciation.

“If you support your employees first, they will support you.”

This application of the reciprocity principle will often bring the desired, voluntary support from employees to leadership. But there is a more enduring motivation than this psychological barter: when leaders and employees pursue common goals or a shared mission out of inner conviction and support each other to the best of their ability.

Ultimately, it is the intent of the servant leader that makes the difference: Do they care at least as much about the well-being of others as they does about their own, or do they just want to make employees feel serviced so they will work harder?

The term “servant leadership” is misleading to many. But undoubtedly, one of the most important tasks of leaders is to support their employees. This starts with perceiving and listening to what the employees need from the leader.

In summary, the main meaning of Servant Leadership could be seen as a pendulum swinging away from autocratic and exploitative leadership, but not as a final leadership concept. Rather, partnership-based cooperation at eye level between employees and managers is more suitable for this in order to pursue the jointly shared corporate mission.

Sources:

• https://www.manager-magazin.de/unternehmen/karriere/ceos-verdienen-300-mal-so-viel-wie-arbeiter-a-1041409.html

• https://www.amazon.de/Spiele-Erwachsenen-Psychologie-menschlichen-Beziehungen/dp/3499613506

• https://www.amazon.de/Die-Psychologie-%C3%9Cberzeugens-Robert-Cialdini-ebook/dp/B01MUDPFCC

• https://www.marriott.com/about/culture-and-values/history.mi

• https://hrdailyadvisor.blr.com/2018/06/01/5- real-life-brands-embody-servant-leadership/ • https://www.pallikkutam.com/edu-news/servant-leadershipstories#:~:text=FedEx%20 believes%20that%20engaged%20employees,and%20ultimately%20ensure%20organi-

zational%20success.

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.

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How to strengthen social capital in the workplace

How to strengthen social capital in the workplace

by Jana Wölfl | Jan 26, 2023 | Digital Transformation, Leadership Impact, Leadership Tips | 0 comments

Why do you like your job?

Is it the work, the salary, or perhaps the interaction with your colleagues? 

The latter is being neglected in many companies, especially during the pandemic. Until then, people had lunch together from time to time, chatted briefly at the coffee machine or worked together on projects.

How to foster exhange and strengthen social capital in the workplace.

But how do you foster this exchange, this connection in a hybrid or even virtual environment?

Find out here in this article. 

(more…)

Agile mindset beyond company boundaries

Agile mindset beyond company boundaries

by Book "Agile Leadership Development", Marina Begic | Oct 20, 2022 | Agile Leadership, Digital Transformation | 0 comments

Agile mindset beyond company boundaries

In order to compete in a constantly changing market, companies must be able to react quickly to changes.
Strong networking, increased knowledge exchange and an agile mindset beyond company boundaries are crucial.

Leadership in times of crisis

We are in highly uncertain times – everything around us is always changing and no decision is really definite. Every day we are confronted with new and unfamiliar challenges.

Sometimes, as a leader, it can feel overwhelming. In this article, you will find some practical tips on how to handle challenging situations to the best of your ability.

Without continuous development, there is stagnation

A simple but important skill when managing crises is the will to keep developing. If you grow both personally and in your role as a leader, you can essentially work in a calmer and more reflective way.

Smart networking

For this, it is important to have a good network and to share knowledge within it. Doing so is important because with an ever-increasing amount of information, we remember less and less and find it difficult to filter out the relevant information.

Find your community

Until now, most professionals exchanged knowledge at business events like Leadership Horizon – at summits, congresses or events. However, there are also virtual communities on all kinds of topics. One example is our community personalist.at – a platform for HR experts or the LinkedIn Leadership Community, where leadership development is the leading topic.

Open Knowledge

In order to learn sustainably, it is not only our previous components of technology and people that are important – but also digitisation. This is where the concept of Open Knowledge comes into play. Knowledge is open when it is easily

  • accessible,
  • changeable
  • and shareable by all.

This perspective requires organisations to reflect on how they deal with information and how it is distributed. Open Knowledge thus plays a role not only in future training, but also in the economic survival of companies.

Agility according to the TIE model

(by Gunther Fürstberger) 


In terms of the TIE model, the following factors are necessary for an agile approach:

  • Transparency (T) between companies in terms of information exchange.
  • Iteration (I) – tools, methods and content are tested and reviewed in short cycles – leading to rapid further development
  • Empowerment (E) by trusted guides, executives, opinion and market leaders.

The principle of agility is generally seen as a requirement for the ongoing changes we face. It no longer functions  as a buzzword, but rather as a must in order to be able to deal with crisis situations.

In the future, we should therefore be able to apply an agile mindset not only within a company, but also beyond the company’s boundaries.

Marina Begic

Marina Begic

Digital Business Development Expertin und Senior L&D Consultant

Marina has been working on new, effective learning methods and the future of corporate learning for over 15 years. In her current role, she is responsible for Digital Business Development at MDI, where her focus is not driven by the current buzzwords, but primarily on the feasibility of digital transformation for clients such as Erste Group, Lenzing, Semperit, Deutsche Bahn, Andritz AG, Uniqa, Mayr-Melnhof, Frequentis, RHIM. Her greatest strength is bringing loose ends together, which she impressively demonstrates time and time again with her big picture view and multi-dimensional approach. Her greatest passion is to provide learners not only with an experience, but also with real, lasting value for their real challenges.

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Digital training formats for leadership development

We help make leadership development more agile with our digital training formats:

  • E-learnings
  • e-consulting
  • Blended Learning Journeys
  • Virtual Leadership
  • virtual reality
  • digital learning transfer

– we have just the right thing for your needs!

Explore now!

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3 tips for efficient and sustainable OKR results

3 tips for efficient and sustainable OKR results

by Gunther Fürstberger | Oct 17, 2022 | Best Practice, Leadership Tips, Training Insights | 0 comments

3 tips for efficient and sustain

Do you want to learn more about OKR – Objectives & Key Results? Here are 3 leadership tips for efficient and sustainable OKR results.

1. Reserve the meeting dates for a year in advance

Long-term OKR scheduling

Long-term scheduling makes it easier to adjust to spontaneous changes on short notice. OKR meetings should become a routine. Habits, once achieved, require little energy. When team members have learned that, for example, the OKR quarterly planning meeting is always on the last Thursday of the quarter and an OKR check-in meeting is scheduled every other Thursday in between – OKR becomes a no-brainer.

OKR should become a no-brainer

Experience has shown that only the timely meetings are a challenge due to many other planned events. If you always send the appointment invitations for the entire next year, the company will get used to it and you will have more energy for content-related work.

Very practical are serial appointments with individual corrections, e.g. if they fall on holidays or on the Christmas vacation.

2. Max. 8 participants in the quarterly OKR planning meeting

The optimal OKR meeting size

4 – 8 participants are an optimal size for quarterly planning meetings, in order to consider sufficiently different perspectives on the one hand and to be able to discuss actively and time-efficiently on the other. However, if the team consists of fewer members, that is also OK. 2-3 people can manage with much less time.

In planning meetings at higher hierarchical levels, such as when developing the OKR set for the entire company, more people often want to be present. This is understandable, since the quarterly priorities are set for the company.

However, discussions with more than 8 people can be lengthy or lead to different levels of participation.

Take turns and have a OKR rotation schedule

One proven way to keep the number of participants low is for owners of similar departments or functions to take turns participating. If you personally do not have a place in the next meeting, you can make your wishes known in advance via the backlog list or another representative.

All hands OKR meeting

Never has it been more important to adjust continually to a dynamic environment. OKR proves to be a great method to overcome crisis situations – read more about it here. 

3. Visualize the progress also during the quarter 

Discuss your progress regularly

Choosing well-worded OKRs is one side of success, the other is discussing progress regularly, e.g. bi-weekly. For this, it helps to visibly grade progress. Some prefer to work with color codes from the beginning. I.e. all Key Results start in red and partly reach the colors orange, yellow and green during the quarter. Others prefer to work with the numbers 0,0 – 1 during the quarter and use the colors only at the quarterly review. A third possibility are progress bars, where the filled area increases step by step.

Progress visualization increases motivation because messenger substances such as dopamine and endorphins are released in the brain.

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.

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Benefits of OKR

What are the benefits of the OKR system?

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Agile leadership orientation and basics

Agile leadership - orientation and basics

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Scrum& Agile leadership

Scrum & Agile leadership

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