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New work needs new leadership

In addition to all the negative effects on the economy that this crisis brings with it, this development is seen as a great opportunity to leave the “old” way of working behind us and embark on a journey into the world of New Work. New Work is more than just the discussion about working from home and how mobile working is handled after coronavirus. New Work is accompanied by significant changes in organizational culture and structure. The cultural level includes strengthening or building a culture of trust, promoting the personal responsibility and self-determination of employees and a management culture that has an inspiring effect and conveys a sense of purpose. The structure includes flattening the hierarchy, agile processes, employee co-determination, more flexible working hours and work locations, as well as new technologies and a workplace that is perceived as attractive and enables and promotes task-based work.

Strict hierarchical management styles and many hierarchies will no longer work for qualified employees. However, some effort is still needed to make leadership New Work fair. How quickly this happens depends in particular on the mindset in the company and the investment in management development.

 

Company management and executives have a decisive role to play here. They are the ones who set the basic attitude and shape the organizational culture and structures with their behavior, because New Work is based on a mindset that must be lived by managers.

The basis of a strong leadership culture is a shared understanding among company management and managers within the organization of the type of leadership that should be practiced. It is a shared understanding of leadership about the attitude, role, values and behavior of the manager together with the employees and goes far beyond the current mission statements.

Especially at a time when we are undergoing a transformation towards New Work, supportive leadership can make a significant contribution to connecting both worlds. Managers can respond to different situations and the different needs of employees. Defined processes and results can require results-oriented management that keeps an eye on the goals and steers towards the desired output. Supportive leadership can also be used to promote the potential of employees when it comes to activities that require innovation and creativity.

In addition, the manager recognizes diversity in the team as a resource and potential: managers actively strive for diversity in the team in order to benefit from a variety of perspectives and the resulting innovations. They face up to their shortcomings and unconscious assumptions and treat the different needs of their employees with appreciation and respect.

Ultimately, all these aspects of an individual’s understanding of leadership can only unfold if the entire leadership culture of the organization is based on the mindset of supportive leadership.

  • Create trust among your employees!
  • Give up responsibility and, if necessary, “power” and promote independence and personal responsibility!
  • Ensure security through transparency!
  • Make sure you receive regular feedback!
  • Create and maintain cooperation networks!

In the wake of the digital transformation of the economy and society, the demands placed on company employees are also changing – because modern information and communication technology enables new forms of work organization and problem solving, among other things.

If companies use the planning of new structures and processes to rethink and further develop working methods and routines with employees, patterns of thought and behavior can be broken up and changed and more target-oriented processes can be implemented.

It is therefore about much greater co-responsibility instead of the usual top-down determination in organizations. In addition, many employees who are still hesitant or critical of the change can be won over as supporters at an early stage.

This is important because: In projects that aim to create a new culture of (collaborative) work, a key challenge is the same as in any change project,

  • strengthen the drivers – i.e. the employees who identify with the project goals,
  • mobilize the undecided, as far as possible, and
  • to work on resistance, to give them space and time, but also to make personnel decisions.

The same applies to coping with increased complexity. Learning machines will take on more tasks in companies in the future. The particularly challenging tasks remain for the employee:

  • those that are difficult to decide,
  • those for which there is not yet any reliable experience and
  • those where you also have to rely on your intuition resulting from your expertise.

To do this, companies need employees who are willing and able to make such risky decisions because they are able, willing and allowed to do so.

When it comes to establishing new forms of collaboration, the “will” is often already present in many employees. The great response to buzzwords such as “agility”, “new work” and “supportive leadership” shows that many people are longing for meaningful (collaborative) work that is based on parameters other than top-down defined processes and a rigid, predetermined organizational structure. This is exactly the kind of employee that companies will need in the future: “Satisfied working people” are not an end in themselves; in the digital age, they are often a prerequisite for business success.

 

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Do you need status? – but please not in the New Work world!

Everyone knows the stereotypes of status-conscious managers – company cars, more expensive equipment and a constant battle for the bigger office. Our experience with the RMP© (Reiss Motivation Profile) shows that up to 50% of current managers in traditional organizations have this life motive strongly developed and want to live it out – and that in the working world. Shifting this motive to private life would be sensible and successful in coaching – because New Work needs different leadership personalities.

What drives a person into a leadership role?
For some it just happens, others desperately need it – a leadership position to be able to live out their motives in life. In most cases, this includes the life motive of power – sometimes combined with the life motive of competition. People for whom the power motive is not pronounced would be reasonably happy even without holding a leadership position. They also don’t particularly like telling others what to do.
Until now, management positions were often associated with status. People who have to live out this motive in order to be meaningfully happy love their position in the organization chart, meetings per hierarchy level, their company car, their corner office and any kind of special treatment.

The visionaries of New Work hoped that the future world of work would become more humane. However, they also point out that it is no longer attendance that is rewarded, but results. For New Work to work, the attitude and mindset of some managers needs to change radically.

Flexibility means more than just working from home and supportive leadership is becoming a core competence in the VUCA world. “VUCA” is an acronym that refers to “volatility”, “uncertainty”, “complexity” and “ambiguity”. This defines the characteristics of the new world of work.

The future demands leaders who can build genuine relationships, foster cohesion, create trust and encourage interaction. Command and control is now only used in a few industries.

For 15 years, our corporate clients have ALL chosen “Supportive Leadership©” as a leadership competence in the course of competence management consulting. Definition: Can develop employees’ potential to the full and invites and encourages people to try out new things. Can inspire people and create work situations in which people have new positive experiences. As a manager, accompanies and advises employees – sparing in his interventions, but also energetic in disputes. Moves from the utilization of resources to the development of potential.

Tolerance of ambiguity becomes a core competence for employees
Definition from our competence management system©:
Does not regard matters that are in limbo as a burden. Can work on several tasks at the same time. Always look for new solutions and abandon established routines. Likes to take risks and loves change. Is bored with routine administrative processes and constantly needs challenges. Can live well with ambiguity, complex conditions and cultural differences.

Routine administrative processes will be eliminated by digitalization and a willingness to change cannot be prescribed, it can only be lived.

In traditional companies, New Work always means a change in corporate culture at the same time

A central maxim should be: “Committed, self-organized, ambiguity-tolerant employees are the greatest asset in times of a shortage of skilled workers and a change in values in society!

The meaning of work is playing an increasingly important role for many people!”

It is up to the company to preserve the feeling of togetherness by creating memorable shared experiences.
Companies must keep their promises and rethink their mission. This will give rise to cultures that are characterized by trust, participation and humanity. But only after phases with a lot of chaos and – to put it positively – creativity and innovation.

New Work does not work by “working through” a program schedule. On the one hand, it is important to initiate a process of change; on the other hand, the speed of change must ensure the “loyalty” of the workforce – and loyalty is created through ON loyalty.
Self-realization as an individual within an organization has an impact on the company. However, the flexible and innovative workforces required for this do not emerge by themselves. Employees with an affinity for technology are generally more open to the new possibilities for shaping work processes than those who tend to feel overwhelmed by them. However, as with any change, when establishing new forms of work organization and collaboration, it is important to involve and support all employees as much as possible.

Suddenly, the world of work requires a high degree of digitalization and innovation, as well as cross-divisional, cross-hierarchical and cross-functional teamwork with short decision-making paths. This is often the exact opposite of what we as consultants still encounter in companies.

Innovative ability and diversity are becoming vital for survival
Many companies are currently questioning their traditional forms of work organization and collaboration. You ask yourself: How can we use the modern forms of collaboration, which many start-ups and innovative niche providers practice, for example, for our success in addition to the technical possibilities of digitalization? As a rule, these are forms of work that aim to achieve this,

  1. the personal responsibility of employees right up to the operational level,
  2. to promote cross-divisional and cross-hierarchical cooperation
  3. increase the ability to innovate and the speed of implementation.

Diversity has a positive effect on corporate success – that’s nothing new. Different perspectives help to understand different requirements and develop different solutions. Diversity will become the rule and status thinking will no longer have a place in innovative organizations that want to retain their employees.

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New Work: 5 questions from the field

NewWork was an academic discussion for a long time. Only a few companies in selected industries have ventured down the path towards agile leadership and decentralized work. Victor Hugo said that nothing is as powerful as an idea whose time has come. This seems to apply to NewWork. The Covid-19 pandemic has forced companies to implement aspects of NewWork. Experience from the crisis mode showed the effectiveness of parts of the concept.

New Work is currently on everyone’s lips – although experts have been discussing it for some time, it has now become a reality under the pressure of the coronavirus pandemic. But what is the groundbreaking “new” thing about our working world? What new skills have been added to a manager’s toolbox and what skills should managers have in the future?

The fundamental challenge for managers has not changed and still applies: They should be able to manage emerging areas of tension in an organization-smart way. This is about evaluating new framework conditions and adapting your own behavior. In our competence management we call this competence ambiguity tolerance: (Does not perceive matters that are in limbo as a burden. Can work on several tasks at the same time. Is always looking for new solutions and abandons established routines. Likes to take risks and loves change. Gets bored with routine administrative processes and constantly needs challenges. Can live well with ambiguity, complex conditions and cultural differences. ©)

How well they succeed in this will determine how well their organizations will be received in the Next Normal – but also what this Next Normal can look like in concrete terms. I can’t see any patent remedies at the moment; they are nowhere in sight. Perhaps it doesn’t need to be. I suggest a different approach – it depends on what questions we ask as management consultants.

How will we make decisions in the future?

Making decisions is part of everyday management. In NewWork, there is a tension between decentralized units and centralized control. Where are decisions made – both locally and organizationally? Centralization offers a better overview and makes it possible to discover potential on the one hand and useful synergies on the other. Decentralization, on the other hand, provides the potential to make quick decisions locally, similar to the principle of subsidiarity.

Companies generally want to avoid risky decisions. On the other hand, it is more important than ever to make decisions under great uncertainty and thus accept new risks.

How does NewWork affect our organization?

In a decentralized working environment, communication structures are changing. Quick and personal access to managers often strengthens their own role. These changes in power can lead to tensions. But power shifts are not the only source of conflict. In our customer experience, it became clear that the relationships within the organization as a whole need to be questioned. Opportunities also arise here. Having to solve new challenges together could help to put an end to smouldering trench warfare. Skillfully applied, the manager can also strengthen the sense of unity.

On the other hand, latent conflicts often manifest themselves in crisis mode. This should not necessarily be seen in a negative light, as only recognized conflicts can be tackled and resolved by a manager. In this respect, it can be very helpful that NewWork can lead to hidden conflicts becoming open disputes.

How will we work together in the future?

New Work was not created by the pandemic. The new world of work is a reaction to changing social and individual conditions. The generation of young specialists and managers often has different values and new expectations of employers.

This is where the tension arises in NewWork between immensely increased expectations of high positions, e.g. security, and the fact that at the same time the usual management levers are no longer available.

The pandemic prompted companies to consider how their day-to-day work could function remotely. They also asked themselves whether and how the focus on a digital workflow could change organizations. This changing situation created winners and losers in the transition to NewWork. This is because the formation of task forces or the sudden need for IT support has made departments and people in organizations relevant that were not before. On the other hand, analog skills became less important.

The new form of (collaborative) work is often characterized by a high degree of mechanization and automation, cross-departmental, cross-hierarchical and cross-functional teamwork and short decision-making paths.

What does New Work mean for the work infrastructure?

NewWork needs NewWorkspace. However, it is certainly not enough for the company to reduce its office space in order to save costs. The new workspace must be based on how employees and teams can best work together.

Some companies rely on open-plan offices, flexible desk use and social meeting and recreation areas where employees can exchange ideas over table soccer. Unfortunately, the simplest solution is not always the best or does not match the company’s corporate identity.

Ultimately, it’s about designing a workspace that corresponds to the new work processes and provides the framework that allows teams to work creatively and productively. Instead of following ready-made solutions, companies should analyze the following factors:

  • How much time do team members spend working together on team tasks?
  • How often and to what extent is individual, undisturbed and concentrated work required?
  • Which technical processes and tools need to be integrated?
  • How can remote employees be integrated into the workflow?
  • Do employees have to or can they also communicate with colleagues, external service providers or customers without being disturbed?

Companies often decide to relocate teams, departments or even the entire company to a new location. New premises not only offer new infrastructure, but also enable the development of a new mindset. The spatial change can thus lead to a new team spirit.

What does sustainability and a sense of purpose mean for our company?

A society’s corset of values is subject to change. Social and ecological aspects are just as important as reputation and prestige. The company as a microcosm should reflect the changes in society and integrate them into its corporate values.

These changes require innovations and new business models. In economically difficult times, companies are often reluctant to invest or make fundamental changes. Others are experiencing an innovative boom, in which new collaborations and business ideas are emerging. This atmosphere attracts enthusiastic and motivated employees.

 

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Generation Z doesn’t need a midlife crisis to ask itself the question of meaning

It is the battle for the brightest minds that keeps HR managers and the recruitment industry on the move. Attractive advertisements, good starting salaries and a professional candidate journey are no longer enough to attract new employees. After a successful recruiting process – partly online – investments are made and yet new employees leave the company within a short period of time – which is also associated with high costs. A quick solution is complex and requires far-reaching changes – generation management, purpose and new work are the associated buzzwords.

Karl Kraus once wrote that “the future would have been much better in the past”. In the past, a solid salary and secure employment were enough to ensure the corresponding influx of young employees as an attractive employer. But the new generation in the workplace ticks differently and only those who can adapt will be successful.

So what is so special about the new arrivals in the workplace – Generation Z? “There is a clear shift in values in the workplace,” says Sonja Schloemmer, executive coach and CEO of Schloemmer&Partner: “Potential employees are looking for a job whose objectives are socially accepted. And it is also important for them that they can recognize the meaning of their job and that it is also meaningful for their own lives.”

What is the new generation longing for in the labor market? The requirement is actually quite simple. She wants to harmonize life and work. But not sequentially, but integrated. Ideally, this would be a lifestyle in which work is an important, meaningful and fulfilling part. So far so good – but what does this require of the employer? The professional activity must therefore make sense. A sense of purpose has now become a significant factor in the labor market. The need for meaning in or through work is increasing. A worldwide study by LinkedIn, the Global Purpose Index, shows that around 37 percent of employees networked on LinkedIn worldwide were “purpose-oriented”. They see meaning as their primary source of motivation in their job – in contrast to people who primarily strive for income or social status and advancement in their work.

Generation Z wants to enjoy their lives here and now. Nevertheless, they mainly work because they enjoy what they do. The company can create the conditions for work to be seen as a vocation and for flow experiences to occur – i.e. neither over- nor under-challenging. There should be scope for creativity and employees want to use their talents – to be able to show what they can do. Young employees experience division of labor as demotivating, they want to complete a certain task from start to finish and are interested in their own development.”

“Employees need to feel that their work has meaning for other people,” says Sonja Schloemmer. “Current studies show that employees who perceive their work as meaningful and achieve good things perform better than others. Meaningful work therefore leads to better work. And vice versa – if you want performance, you have to offer meaning.”

Companies must therefore communicate the meaning of their work to their employees. Purpose is an essential basis for motivation and young managers should recognize this in our leadership workshops, recommends Sonja Schloemmer. Because only those who understand the meaning behind a task and identify with it can and will be fully committed.

Schloemmer himself leads workshops in well-known Austrian companies. In her view, pure leadership training falls short: “Modern leadership tools can be trained and attitudes can be reflected upon. But personality traits such as the ability to trust, empathy, reflectiveness, emotional stability and openness are also required.

Sonja Schloemmer MBA, MAES

An expert in leadership and HR tools, she has been advising numerous well-known companies in Austria and Germany since 2003. As a former network partner of the Neuwaldegg consulting group and top executive coach, she works with board members, managing directors and top executives based on the findings of neurobiology. Her practical approach is based on years of experience in HR management in a corporate group and in productivity optimization. As a sponsor of the Viktor Frankl Museum, her mission is to make work meaningful again for people in companies.