Management Summary
The main task of managing directors is to win over employees and managers in favour of the company's goals and the associated changes. This is only possible if the organisation trusts you. A study conducted by the Gallup Institute shows that this trust is low.
To restore trust, an authentic leadership style is fundamental. You can achieve more authenticity through five specific behaviours:
- Walk the Talk
- Consistent action
- Admitting your own mistakes and learning from them
- Ask for help and share uncertainty
- Obtain feedback and accept it without judgement
Even if the step towards more authenticity requires courage, it also takes away the pressure of having to play a role.
Why is authenticity important for managing directors?
The Gallup Engagement Index for 2023 attests to a dismal result for the management of German companies. Only 1/4 of employees trust their management. In 2023, it was just over a third.
This development is worrying in view of the many change processes that companies have to successfully undergo in order to remain competitive or regain their competitiveness.
If you want to lead change processes to success as a managing director, you need three things:
- Credibility
- Proximity
- Trust
All of this comes about when you show yourself as the person you are.
How do you become more authentic?
Authentic people show themselves as they are. In other words, as a person with qualities, values, with rough edges.
Five behaviours for more authenticity
Walk the talk
Managing directors who lead authentically only demand things that they themselves exemplify - as a person and in their leadership role.
This makes them credible.
Consistent action
When you lead authentically, you lead in harmony with your inner compass of values.
This is also reflected in the fact that your actions are perceived as consistent.
Admit mistakes and learn from them
One of the key aspects of authenticity is the ability to admit your own mistakes. Nobody is infallible, not even the most experienced managing director.
Ask for help and share uncertainties
Authenticity also includes the ability to talk about your own insecurities as a manager and to ask those around you for help.
It is a sign of strength if you as a manager show that you do not have all the knowledge and expertise to overcome every challenge on your own.
Obtain feedback and endure it without justification
Get feedback so that you can regularly compare your self-image with your perception and impact within the organisation.
What does your team appreciate about you and the collaboration? What annoys your colleagues? Which of your competences are used effectively? Where can you develop further?
In order for the feedback to be honest and for you as the manager to benefit from it, it is important that the team trusts you and knows that you as the manager can withstand this honest feedback and separate the feedback (thing) from the feedback provider (person).
What are the business benefits of greater authenticity?
In addition to greater credibility, closeness and trust, the authentic behaviour of managing directors has clear business benefits.
Benefit for the company
Leadership throughout the organisation becomes more trusting
By being authentic, you are a role model for other managers and encourage them to show themselves as they are and to adopt openness and honesty in the leadership of their teams.
Willingness to take responsibility increases
The moment you as the managing director are open with all your questions, uncertainties and unfinished ideas, the willingness of employees to contribute more quickly and honestly to the corporate organisation process also increases. Employees take on responsibility more quickly and more comprehensively. Room for manoeuvre is actively used, roles are better fulfilled. Destructive conflicts decrease.
Collective intelligence & innovation can emerge
In addition, an open exchange within the company reduces head know-how and bottle necks. Different experiences can be used in a targeted manner and mutually fertilise each other. Misunderstandings are reduced. The collective intelligence of a company grows. Thinking and acting outside the comfort zone is given a chance. Innovation becomes possible.
Growing willingness and speed of change
The admission of mistakes by the managing directors supports a correspondingly open approach to mistakes throughout the company. This culture of error tolerance takes away the pressure that things have to be perfect from the outset and strengthens the confidence to try new things. The willingness to take risks grows; entrepreneurial behaviour increases. Changes can be implemented more quickly and provoke less resistance.
Reduce error costs
In addition, the managing directors' open approach to their own mistakes shows that they take responsibility for their actions and place the cause and the good of the company above their own ego. This behaviour also means that mistakes are admitted more quickly throughout the organisation and can therefore be rectified more easily.
Furthermore, the responsible attitude supports a reduction in silo thinking and a shift towards thinking in terms of end-to-end processes. The opportunities for lean and efficient processes increase and waste decreases.
Decision quality and speed increase; agility increases
A corporate culture in which it is natural to exchange ideas openly, talk openly about one's own mistakes and learn from them means that decisions are made more quickly, even in uncertain and rapidly changing conditions, and are therefore more likely to be implemented. Agility increases.
In addition, the best decisions are made when different perspectives, including controversial ones, are taken into account in the decision-making process. Solutions become more robust.
Benefits for you as a managing director
Of course, an authentic appearance requires self-confidence and courage. But what's the worst that can happen if you show yourself as you are? That others realise that you are not perfect? They already have. They just don't dare to say it openly. Only then do your weaknesses gain ground and diminish your leadership effectiveness.
Therefore: Authentic leadership not only harbours opportunities for the company. It also harbours very specific advantages for you as a manager. Because when you show yourself as you are, you not only gain credibility and therefore broad and loyal support in the team. You also relieve yourself of the pressure of having to play a role that you cannot fully fulfil. This contributes to your health and keeps you enjoying what you do for longer.
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