What guidelines managers need to consider now if they want to survive the future

Managers are faced with the challenge of acting sustainably in an uncertain global economy. In his article, Prof. Dr. Dr. h. c. mult. Horst Wildemann emphasizes the new tasks and guidelines for modern managers in an unstable global economy. Key strategies are resilience, a holistic target system, effective collaboration, the use of AI and flexible leadership. These elements are crucial in order to be able to react to climate change, digitalization and economic fluctuations.

In a world in which algebraic formulas fail and cause-and-effect relationships can no longer be derived analytically, conventional management concepts are reaching their limits. Industrial value creation is facing an urgent reorientation. Non-linearity is the new normal and managers must adapt to it. Longer-term trends such as climate change and digitalization are coming together and reinforcing each other. Added to this are exorbitant increases in gas and electricity prices. The inflation rate is reaching unprecedented levels.

The result: the global economic system becomes unstable. Indeed, almost shock waves are triggered in a short space of time. Uncertainty is increasing. It is becoming apparent that Russia is no longer keeping our energy costs low. The USA is no longer paying for our security, resulting in high national debt. China no longer allows companies to achieve higher margins. And inflation is widening the gap between rich and poor. Another consequence is a loss of trust in institutions and in the observance of contracts. We therefore want to address the question: "How can a company be managed under such circumstances to ensure sustainable development?"

This results in the following fields of action for logistics:

Field of action 1: Resilience
The magic word is resilience. It's not just about weathering storms, but also about emerging from them stronger and being able to avoid them. Resilience means robustness, flexibility, the ability to regenerate and, above all, the ability to learn and adapt. In a world that is constantly changing, resilience is the key to long-term survival. Resilience is not just a supplement to the strategy process, but a different perspective on planning.

Field of action 2: The new target system
The times when a "License to Operate" was sufficient are over. Now "License to Grow" and "License to Lead" are crucial. The "License to Grow" focuses on social, ecological and economic sustainability. "License to Lead", on the other hand, transforms companies into social shapers that initiate debates and offer solutions. They are the currency of the new business world.

Field of action 3: Collaboration
The trick is to collaborate closely with ecosystems on the one hand and to decouple harmful influences on the other. You can only be strong together, but self-sufficiency in certain areas is essential. This is resilience through networking and collaboration. Finding the right balance is an art that managers must master. It is a balancing act between global reach and local relevance.

Field of action 4: Artificial intelligence
AI is the best available answer to non-linearity and complexity. For example, it makes it possible to recognize weak signals in supply chain risk management and find hidden potential in a sea of unstructured ERP data. Patterns can be recognized where the human eye would be overwhelmed. AI is not just a tool, but a strategic partner that revolutionizes decision-making.

Field of action 5: Leadership
The biggest challenge for the future lies not only in technological skills. New management principles are required, as decisions will be made with less information and in a distributed form. People need to be managed differently. With resilience as a basic principle and AI as a tool, we can create industrial value creation that is not only efficient, but also sustainable and people-centered.

It's a paradox: when uncertainty spreads, the need for guidance, orientation and support grows. But every manager who pretends to know where the journey is heading is met with reservations. Communication is necessary to overcome these, because communication creates transparency and security. Communication thus becomes a management concept. 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, the motto is: try things out, make mistakes and constantly adapt. Willpower and resilience are essential for this. In the future, we will be confronted with shades of gray - there is no black or white. Only a moral compass and the will to implement necessary decisions will help here. Because "business as usual" is not an option. The future is not a foregone conclusion, but what we make of it. With the three key words Courageous - Together - Better I would like to summarize my contribution.

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