Leadership in times of transformation: Industry 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

Successful leadership in times of transformation requires the ability to communicate a clear vision and set specific targets for the workforce. Progress and improvements must be ensured through effective controlling of metrics. This must be accompanied by team events that make the joy of transformation tangible. Managers are called upon to initiate organizational learning processes and establish best practices through continuous benchmarking. This can increase employee motivation and improve the performance of the company organization.

Outstandingly designed transformation processes in companies

Markets can collapse or emerge in a short space of time. Long-term forecasting or planning of these developments is hardly possible. Management decisions must therefore be made on the basis of actual business developments. This means not sticking to planning templates and outdated budgets, but providing quick answers to acute problems.

Case study: KION

Dr. Rob Smith
SEO Kion Group

There are no more times of crisis, because they are the new normal. In order to manage transformations successfully, the mindset must be changed. A mental model is needed to deal with this. This means forecasting the destination based on the actual circumstances and then planning the path to get there. There is no report for new circumstances; the management focus must be placed on the actual business activities. Traditional key figures follow the real business, so the focus should be on business activities. Intimate knowledge of real processes is a must for every manager. Know-how, courage and a sense of responsibility, accompanied by a strong corporate culture, are performance characteristics that count even more in times of crisis. A finger on the pulse of the times and the market is better than abstract planning in turbulent times. Budgets may therefore be drawn up quarterly rather than annually. The new reality is to drive by sight, but a little faster than the competition.

Case study: o2 Telefónica

Markus Haas
02 Telefónica

AI is redefining the rules, markets are changing as a result of AI. By 2030, AI will make a significant contribution to Germany's gross national product. For example, the use of AI can reduce CO2 emissions and increase productivity. This is associated with enormous potential for growth in Germany. The prerequisites for using AI as an enabler are high-performance networks, telephony and computing capacities on end devices. Exploiting AI opportunities means unearthing data treasures. As data forms the basis for AI models, better data access is needed in Germany. High-performance mobile communications are therefore the springboard for AI applications. Mobile communications and AI enable innovation together. Mobile communications companies like Telefonica are therefore both enablers and users of AI.

Case study: Wacker Chemie AG

Dr. Christian Hartel
CEO Wacker Chemie AG

The challenges facing the chemical industry have gradually increased in recent years. The chemical industry is one of the most energy-intensive sectors. The high and volatile energy costs of recent years therefore represent a major burden. The chemical industry requires continuous investment in research and development in order to develop new products and processes and thus remain competitive. However, stricter regulations and regulatory requirements are making these innovations more difficult in the face of global competition. The shortage of skilled workers caused by demographic change poses a major challenge for the chemical industry. Although this problem can be counteracted by the high wage levels in the industry, the resulting increase in labor costs is putting companies under pressure. The chemical industry is heavily dependent on global trade flows, which makes it susceptible to geopolitical tensions and trade barriers. Increasing political uncertainty is putting pressure on global supply chains. The COVID-19 pandemic has also highlighted the dependencies and vulnerabilities. High energy costs, strong regulation and trade barriers are therefore making business more difficult and leading to a shift to Asia. Management therefore depends on three levers. Leadership and communication, resilient strategic business planning and excellent operational management to exploit cost potential.

Lessons Learned

• Managers must be able to to convey a clear vision and set concrete targets for the workforce. This helps to Direction and motivation during the transformation. Progress and improvements need to be Effective controlling and the measurement of relevant key figures.
  
• The joy of transformation should through team events and joint activities be made tangible. This increases the Employee motivation and promotes a positive working atmosphere.
  
• A Continuous benchmarking can provide support, organizational learning processes and Establish best practices.
  
• In times of rapid market changes Long-term planning often outdated. Management decisions should therefore flexibly and on the basis of current business developments be taken.
  
• The Use of artificial intelligence and access to data are crucial. Companies must their data treasures and AI applications to drive innovation and remain competitive.
  
• A resilient strategic business planning and excellent operational management are essential. Managers must be able to to exploit cost potential and respond flexibly to challenges. such as high energy costs and strong regulation.
  
• Transparency in organization and processes and a focus on the value levers of the business are crucial. This enables a Clear communication and effective implementation of the transformation goals.
  
• Successful Leadership in times of transformation is a mixture of clear vision, flexibility, ability to innovate and a strong strategic orientation.