Strategic corporate management in times of crisis
Managers must learn to navigate in a world of uncertainty, taking into account both technological and human aspects. They must adapt to a new era of leadership that requires empathy, agility and trust. In times of crisis, it is important to try things out, make mistakes and constantly adapt. Because "business as usual" is not an option. The future is not a foregone conclusion, but what we make of it.
What are the strategic decision-making axes?
Strategic corporate management describes conclusions under the conditions of scarcity, time constraints, competition and fluidity. It can be compared to tightrope walking. The acrobat falls if he is too fearful or too bold. His steps on the tightrope are suspended between the relative certainty of the past and the uncertainty of the future. The price of resting on one's laurels is progressive insignificance. To progress step by step, means and ends as well as intentions and circumstances must be aligned to achieve goals. Not only instinct and judgment are required to build a bridge between the present and the future, but above all courage and character.
In uncertain times, managers are confronted with paradoxes. The relevant information is scarce, but the scope for action in early phases can be greater. When signals about risks are weak, it is tempting to regard such phenomena as temporary or controllable with existing resources. If more data is later available to control the situation, the scope for action has shrunk or the costs of tackling the problem have increased. Even the best course of action will then be difficult to implement. If successful, the gains are small, but the risks are high.
So how can you determine the optimal decision point?
Experience teaches a manager to recognize analogies from comparable situations. However, they offer approximations at best. Managers must then responsibly adapt these to the circumstances of the situation. They are expected to do the right thing without knowing it. In this respect, managers must also have the qualities of an artist. They sense how they can shape the future with available materials. This requires intelligence, of course, but above all instinctive ability.
Given the complexity of crisis situations, it is difficult to read from the ambiguity. Unlike in scientific experiments, the situation cannot be controlled by a repeatable test setup - strategies usually only get one try. Sensible strategic decisions require a mixture of political, economic, technical and psychological knowledge. Variables must therefore be taken into account in all their confusing complexity.
What is important when implementing strategic decisions?
In order for strategic decisions to be implemented, managers must communicate their goals, allay doubts and mobilize support. Coercive measures are a symptom of inadequate leadership. It is important to awaken in employees the desire to walk side by side with them. Only then will a team complement the strategic direction. It supports the path and improves the decisions. The quality of the environment can make strategic leaders smaller or larger. Nevertheless, leaders have the task of perceiving the uniqueness of a specific situation with its specific uncertainties and determining the direction of decision-making.
Strategic leadership is a misguided elemental force with terrible power. It must be directed towards moral goals through the efforts of decision-makers. It is necessary for decision makers to develop a visionary force in times of crisis. Mere management skills of the status quo can be the most dangerous course. However, there are limits to the realization of a corporate vision. You must take responsibility for both the best and the worst outcome. Safeguards must therefore also be considered. Personalization of the strategy should be viewed with suspicion. The creation of organizational structures can help to carry the strategic considerations further. You may run faster alone, but together the results are more sustainable. A focus on what is possible is more down-to-earth than a vision of what is necessary. In this way, the treasures of the past can be unearthed and potential pitfalls avoided. A strategy of small steps is less risky. Nevertheless, you can't jump over a ravine with small steps.
The following speakers will be speaking on this topic at our Munich Management Colloquium on March 5 and 6, 2024:
Dr. Victoria Ossadnik, Member of the Board of Management, E.ON SE
Lecture title: "Digital platforms in the energy transition"
Grazia Vittadini, Special Advisor, Rolls-Royce
Lecture title: „Stronger together: How collaboration and cooperation can drive innovation and technological progress in times of uncertainty"
Dr. Bernd Montag, CEO, Siemens Healthineers AG
Lecture title: „Sustainability goals are businessgoals"
Dr. Matthias Metz, CEO and Chairman of the Management Board, BSH Hausgeräte GmbH
Lecture title: „Crisis-proof and future-oriented: Successful partnerships for more resilience"
Dr. Marianne Janik, Chairwoman of the Management Board, Microsoft Germany
Lecture title: „Lead in AI! Seize opportunities & master challengesstar"
Univ.-Prof. Dr. Isabell M. Welpe, Technical University of Munich
Lecture title: "AI at Work: How AI is changing business models, work and leadership"
Dr. Klaus Geißdörfer, Chairman of the Group Management Board (CEO), ebm-papst Group
Lecture title: "Making the Future Together - through networking and collaboration towards sustainable and intelligent solutions for a better climate"
Dr. Till Reuter, entrepreneur and investor
Dhe title of the lecture will be announced shortly.
Renata Jungo Brüngger, Member of the Board of Management for Integrity, Governance & Sustainability, Mercedes-Benz Group AG
Lecture title: „Trust and digital technologies, does it work? The role of AI and data governance for the success of automotive luxurybrand"
Dr. Sigrid Evelyn Nikutta, Board Member for Freight Transport Deutsche Bahn AG, CEO Deutsche Bahn Cargo AG
Dhe title of the lecture will be announced shortly.
Prof. Dr. Dr. h. c. mult. Horst Wildemann is a professor at the Technical University of Munich and heads the management consultancy TCW. On March 5 and 6, 2024, he will be hosting the Munich Management Colloquium for the 31st time with over 80 speakers from leading companies