Leadership in times of transformation: Corporate focus

Dr. Ricarda Engelmeier
Managing Director MMK, Founder and CEO MyCollective

Prof. Dr. Dr. h. c. mult. Horst Wildemann
Managing Director TCW, Technical University of Munich

Outstandingly designed transformation processes in companies

Creating transparency in companies is an essential prerequisite for mastering the transformation. Leadership relies on the reduction of information asymmetries and the comprehensive communication of decisions made. The management concepts require quick decisions and no long-term postponement. If the desired effects do not materialize, decisions will certainly need to be corrected in the short term. Meaningful KPIs that enable managers to effectively control business activities help here.

Case study: TK Elevator GmbH

Matthias Gohl
CDO TK Elevator GmbH

In view of the market slumps of 50% in China and 40% in Germany, "business as usual" is not an option. Increasing complexity and growing time pressure require new tools, but above all courage, team spirit and a sense of responsibility. In times of crisis, the importance of data is also greater than in the normal course of business. Five principles serve as orientation for the manager:

• Plan for the unexpected,
• Focus, focus, focus,
• You own it as a leader,
• It is all about people, leadership, teamwork and culture,
• Setup your company and structures for global success.

Experience has shown that focusing on fundamental principles enables tailor-made solutions in times of crisis. Decision-making rounds should be kept short and concise. Decisions must be simple and clear, because time is more important than perfection. Instead of running three projects in parallel, you should concentrate on one project for 100%. Communication doesn't just mean talking, but also listening and drawing the right conclusions.

Case study: Allianz Direct

Philip Kroetz
CEO Allianz Direct

Resilience is achieved through networking and collaboration. Key challenges lie in new technologies and changing consumer behavior, inflation, climate change and intense competition. Three levers are used to counter these effectively: AI, inflation management and agile transformation. AI is used to achieve the best possible customer experience. This is achieved by optimizing interaction with customers using AI solutions. This also enables extensive automation of indirect areas and the exploitation of cost potential. Inflation management includes effective monitoring of inflation trends, a flexible pricing model and the realization of competitive costs. Agile transformation relies on flexible team structures and close integration of all business processes into the company's IT structures.

Case study: tesa SE

Dr. Jörg Diesfeld
CFO tesa SE

 For a company with a long tradition, transformation is inevitable. Conquering global markets from Europe requires high levels of investment in these markets and global production networks. If the product portfolio is complex and growth rates are high, this makes crisis management more difficult. The following principles are crucial: strategic investment in research and development to create innovative solutions, long-term growth strategies and precise monitoring and control of investments. The addition of over 100 new products per year also changes the role of the CFO. They must become the "Driver of Innovation", "Champion of Sustainability" and "Leader of Digital Transformation". New topics must be driven forward with great vigor, as these activities are costly. The example of the SAP S4/Hana roll-out shows that such investments can quickly amount to 100 million euros and can be delayed by several years. If these developments continue unchecked, new crises can arise. It is therefore crucial to install excellent project management in order to successfully master organizational challenges such as the SAP roll-out. Basically, meaningful KPIs serve to successfully manage the increasing complexity.

Lessons Learned

• Successful leadership in times of transformation is based on the Creating transparency in the company in order to reduce information asymmetries and communicate decisions made comprehensively.
  
• Management concepts require quick decisions and the Willingness to make correctionsif the desired effects do not materialize.
  
• Meaningful KPIs help the managers to effective management of their business activities ensure.
  
• In times of crisis Courage, team spirit and a sense of responsibility essential in order to cope with increasing complexity and time pressure.
  
• Resilience is achieved through Networking and cooperation between stakeholders The main challenges lie in new technologies, changing consumer behavior and intense competition.
  
• The appropriate use of AI supports a agile transformation to ensure our own competitiveness in the long term.
  
• The agile transformation This requires flexible team structuresa End-to-end synchronization of all business processes with the IT systems and Breaking down knowledge barriers.
  
• Successful leadership in times of transformation is ultimately a Mixture of clear vision, flexibility, innovative ability and one strong strategic focus.