Cooperating Instead of Commanding
Reading Time: approx. 7 min.Cooperating instead of CommandingA silent revolution is taking place in management culture. These days, being at the top is all about communicating values, building trust and showing and promoting understanding. A meaningful, motivating corporate culture is considered the management technique of the future. But how can it be successful? And how can leadership continue to ensure stability? We look at what lies ahead.
The management team at Amazon has a simple rule known as the two-pizza rule. This rule states that no team should be so large that two American pizzas cannot feed the whole group. Usually this means six to ten people. The global corporation, which current employs 1.1 million people, uses this rule to remain agile like a street scooter – rather than becoming sluggish like a forty-ton truck.
“The two-pizza rule supports agility, personal responsibility and our culture of innovation,”
says Klaus Bürg, Managing Director of Amazon Web Services, the group’s cloud division, before going on to provide an example: An agile, two-pizza team is responsible for the “Buy” button on the Amazon website. The team manages all the complicated processing procedures triggered by a simple click from a retail customer.
“The team is completely autonomous and is led by a manager who works collaboratively with colleagues,” reports Bürg. “The two-pizza rule makes us effective, it transfers responsibility to the team members and it motivates them.”
Offer creative freedom.
Offer creative freedom.
Artificial intelligence, automation and robotics are performing more and more of the monotonous tasks within a company. While these tasks are being removed, networked worlds and virtual conferences are offering new opportunities for creative and collaborative thinking and working. The coronavirus pandemic is accelerating these trends faster than ever.
Digitalization and networking of business processes make workflows simpler for their users, but at the same time these trends continue to increase the complexity of the world of work. They turn old routines and structures on their head, and they put authoritarian management cultures to the test.
In fact, corporations are already beginning to question hierarchical leadership patterns, tear down barriers and believe in the words of Sony founder, Akio Morita:“A company will get nowhere if all of the thinking is left to management.”
At the same time, digital natives are taking center stage – employees who think in virtual worlds and apps, and act in a flexible and networked way. Leadership in agile companies therefore requires a change of mindset in management:away from command and control, toward cooperation, creativity and coworking.
Listen, then decide.
Listen, then decide.
Commands and obedience are outdated; empathy and dialog are the future.These days, young talent is less likely to follow the guidelines and master plans of experienced leaders without question. And why is that? Because they want to make sure that their own ideas are heard. They also come across as more confident because bright minds are becoming increasingly rare. And when these young employees have had enough, they simply go elsewhere.
It is therefore more important than ever for a manager to understand what young people want, to involve them in decisions and to coach them. “Creating a motivating and meaningful corporate culture is the management technique of the future,” says Liz Mohn, head of the Bertelsmann Foundation.
AWS Manager Klaus Bürg agrees, predicting that: “Inspiration and communication are core pillars of future leadership. If an organization can’t find an answer to the question of why, it will suffer the consequences.”
Respect the common good.
Respect the common good.
Timo Meynhardt holds the Dr. Arend Oetker Chair of Business Psychology and Leadership at the renowned HHL Leipzig Graduate School of Management. Together with his team, the professor is creating a “public value atlas” that shows what organizations in Germany and Switzerland contribute to society. For Meynhardt, it is clear that if traditional management focuses primarily on profit development, results monitoring and maximizing the share value, it must also work on public value-oriented approaches in complex digital business areas and answer questions about sustainability, quality of life and fairness. It must do this not just for shareholders, but also for employees, partners, customers and society.
According to Meynhardt, good corporate governance is no longer limited to efficiency alone; it must also ask: Do we have an overarching purpose? Are we acting responsibly? “Purpose is not political correctness,” says Meynhardt. “Purpose is the basis for profit.” Companies can no longer afford not to think about their public value contribution – this is what helps to attract, retain and motivate talented employees.
Be a social networker.
Be a social networker.
A coherent corporate purpose also legitimizes the power of managers and gives it meaning. But according to Meynhardt, management in the future will primarily be a case of listening more than talking, trusting, delegating responsibility, showing respect and appreciation for successes.
During his studies, the researcher has come across a paradox: “New technologies may be taking more and more tasks off our hands, but the variety of social skills required from us is increasing.” When teams turn to WhatsApp groups and video conferences to veto things that have just been agreed, a manager must stay calm and maintain control.
“Authoritarian behavior and a lack of social skills are immediately revealed as weaknesses,” says Meynhardt. “Digitalization exposes poor leadership very quickly.” Instead, a manger’s greatest virtue is to encourage employees in their development.
Provide guidance and stability.
Provide guidance and stability.
However, rethinking management culture does not mean abandoning all values and virtues. In the future, managers still need to be proficient in leading and engaging. “Especially now that work is more geographically dispersed and remote, providing guidance and stability are key management tasks,” says Marc Zimmermann, one of the two Managing Directors of MHP.
The management and IT consultancy now has more than 2,800 employees, and very few of them have been working in the office since the outbreak of the pandemic. The diverse needs of different colleagues have become very noticeable.
“Some employees work very independently; they make use of the freedom and use it to develop,” says Zimmermann. “For others, a coaching style of management can cause them to become overwhelmed. They need clear tasks, structures and security.”
Lead heterogeneous teams.
Lead heterogeneous teams.
In addition, compared to the baby boomer generation that still dominates management ranks, the values and expectations of “Generation Y” are not the only things to have changed – the different ways that people choose to live their lives are now even more unique.
In Zimmermann’s experience, managers must therefore be even more capable of managing heterogeneous teams. “We don’t want several copies of the same employee – authenticity is one of our values at MHP,” says Zimmermann. “But to bring out their strengths, you need to know what makes employees tick and be willing to meet people where they are at.”
A strong team that includes different profiles is the best way to balance out individual weaknesses. The foundation for a good manager is clear leadership principles and values. “These principles and values prevent us from being untrustworthy and unpredictable,” says Zimmermann. “They foster acceptance within the team and provide stability in a rapidly changing world.”
„Live in more than one world”.
„Live in more than one world”.
Public value researcher Meynhardt has a similar view: “There’s nothing worse than managers who don’t accept their role and who are not clear about everyone’s role,” he says. The question is: How should the new leadership type be defined? Who can strike the balance between efficiency and empathy, leadership and passion?
“These days, management needs people who are more broadly and comprehensively educated than just in their specific field of expertise – and who have good reflection skills,” says Meynhardt.
“Managers who live for their job will burn out at some point.” However, a commitment in other spheres – family, sports, culture, voluntary work – adds a different perspective than being constantly rushed off your feet at work. “Managers improve when they live in more than one world,” says Meynhardt, quoting management legend Peter Drucker.
Challenge your beliefs.
Challenge your beliefs.
However, mindful management also requires charismatic individuals who can inspire, identify previously unimagined possibilities and encourage innovation.
“Managers have to be authentic role models,” says Bürg, the AWS Manager for the DACH region (Germany, Austria and Switzerland). “The more honestly and credibly a manager deals with their strengths and weaknesses, the more successful they will be with the younger generation.” Amazon and AWS follow the 14 leadership principles of CEO Jeff Bezos, which all employees (new and old) , rely on: Having an unconditional “customer obsession” is the top priority – but also constantly questioning yourself.
“Leaders are right a lot,” writes Bezos in the 14 leadership principles. “And they’re constantly trying to challenge their beliefs.”
Conclusion
Conclusion: Workflows and business processes are becoming more interconnected, more complex and faster thanks to digitalization. In addition, young employees expect more when it comes to work-life balance. Innovation and growth therefore depend more than ever on a motivating, meaningful management culture.
These circumstances fundamentally change the role of managers: They increasingly have to work on an equal footing with their teams and consider various life plans, explain the overarching purpose of new tasks, respect alternative solutions, provide guidance and stability – and also constantly question themselves.
Those who fail to act now, will lose. After all, this change is not a misunderstood version of political correctness, but pure self-interest. “For this reason, companies have to become more human, emotional and purposeful; otherwise they will not survive,” says renowned leadership coach Wolfgang Jenewein.
Discover more
Homo Digitalis
How will we work, think and understand our world in the years ahead?
First, we invent technology, then technology reinvents us. As digitalization pervades our lives, the skills asked of us are changing more and more. Embracing our new status as “Homo Digitalis” will enhance new opportunities but will also require skills that our analog ancestors never dreamed of.
When values become deeds
These days, every company has a code of values. But how are they being put into practice? Which values will take us forward into the next decade? And how are they changing now?
Sven Heitkamp
Sven Heitkamp is a freelance reporter and copywriter from Leipzig. He
discovers what innovations startups are working on and explores how
large corporations work. He researches societal trends and family
histories, and writes for the Sächsische Zeitung, brand eins, Focus
Spezial, Öko-Test, Porsche Consulting magazine, and other corporate
publications.
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Cooperating instead of Commanding
The management team at Amazon has a simple rule known as the two-pizza rule. This rule states that no team should be so large that two American pizzas cannot feed the whole group. Usually this means six to ten people. The global corporation, which current employs 1.1 million people, uses this rule to remain agile like a street scooter – rather than becoming sluggish like a forty-ton truck.
“The two-pizza rule supports agility, personal responsibility and our culture of innovation,”
“The team is completely autonomous and is led by a manager who works collaboratively with colleagues,” reports Bürg. “The two-pizza rule makes us effective, it transfers responsibility to the team members and it motivates them.”
Offer creative freedom.
Artificial intelligence, automation and robotics are performing more and more of the monotonous tasks within a company. While these tasks are being removed, networked worlds and virtual conferences are offering new opportunities for creative and collaborative thinking and working. The coronavirus pandemic is accelerating these trends faster than ever.
Digitalization and networking of business processes make workflows simpler for their users, but at the same time these trends continue to increase the complexity of the world of work. They turn old routines and structures on their head, and they put authoritarian management cultures to the test.
“A company will get nowhere if all of the thinking is left to management.”
away from command and control, toward cooperation, creativity and coworking.
Listen, then decide.
Commands and obedience are outdated; empathy and dialog are the future.
It is therefore more important than ever for a manager to understand what young people want, to involve them in decisions and to coach them. “Creating a motivating and meaningful corporate culture is the management technique of the future,” says Liz Mohn, head of the Bertelsmann Foundation.
AWS Manager Klaus Bürg agrees, predicting that: “Inspiration and communication are core pillars of future leadership. If an organization can’t find an answer to the question of why, it will suffer the consequences.”
Respect the common good.
if traditional management focuses primarily on profit development, results monitoring and maximizing the share value, it must also work on public value-oriented approaches in complex digital business areas and answer questions about sustainability, quality of life and fairness. It must do this not just for shareholders, but also for employees, partners, customers and society.
According to Meynhardt, good corporate governance is no longer limited to efficiency alone; it must also ask: Do we have an overarching purpose? Are we acting responsibly? “Purpose is not political correctness,” says Meynhardt. “Purpose is the basis for profit.” Companies can no longer afford not to think about their public value contribution – this is what helps to attract, retain and motivate talented employees.
Be a social networker.
A coherent corporate purpose also legitimizes the power of managers and gives it meaning. But according to Meynhardt, management in the future will primarily be a case of listening more than talking, trusting, delegating responsibility, showing respect and appreciation for successes.
During his studies, the researcher has come across a paradox: “New technologies may be taking more and more tasks off our hands, but the variety of social skills required from us is increasing.” When teams turn to WhatsApp groups and video conferences to veto things that have just been agreed, a manager must stay calm and maintain control.
Provide guidance and stability.
However, rethinking management culture does not mean abandoning all values and virtues. In the future, managers still need to be proficient in leading and engaging. “Especially now that work is more geographically dispersed and remote, providing guidance and stability are key management tasks,” says Marc Zimmermann, one of the two Managing Directors of MHP.
The management and IT consultancy now has more than 2,800 employees, and very few of them have been working in the office since the outbreak of the pandemic. The diverse needs of different colleagues have become very noticeable.
Lead heterogeneous teams.
In addition, compared to the baby boomer generation that still dominates management ranks, the values and expectations of “Generation Y” are not the only things to have changed – the different ways that people choose to live their lives are now even more unique.
A strong team that includes different profiles is the best way to balance out individual weaknesses. The foundation for a good manager is clear leadership principles and values. “These principles and values prevent us from being untrustworthy and unpredictable,” says Zimmermann. “They foster acceptance within the team and provide stability in a rapidly changing world.”
„Live in more than one world”.
Public value researcher Meynhardt has a similar view: “There’s nothing worse than managers who don’t accept their role and who are not clear about everyone’s role,” he says. The question is: How should the new leadership type be defined? Who can strike the balance between efficiency and empathy, leadership and passion?
“These days, management needs people who are more broadly and comprehensively educated than just in their specific field of expertise – and who have good reflection skills,” says Meynhardt.
Challenge your beliefs.
However, mindful management also requires charismatic individuals who can inspire, identify previously unimagined possibilities and encourage innovation.
“Leaders are right a lot,” writes Bezos in the 14 leadership principles. “And they’re constantly trying to challenge their beliefs.”
Conclusion: Workflows and business processes are becoming more interconnected, more complex and faster thanks to digitalization. In addition, young employees expect more when it comes to work-life balance. Innovation and growth therefore depend more than ever on a motivating, meaningful management culture.
Those who fail to act now, will lose. After all, this change is not a misunderstood version of political correctness, but pure self-interest. “For this reason, companies have to become more human, emotional and purposeful; otherwise they will not survive,” says renowned leadership coach Wolfgang Jenewein.
