Autonomy in leadership: the decisive difference in times of crisis.

Why is autonomy crucial in times of crisis?

1. fast decision-making processes
In times of crisis, the reaction time to changing conditions plays a decisive role in competitiveness. The faster managers can make independent decisions without having to wait for centralised guidelines, the faster they can implement measures together with their teams. This is crucial when it comes to reacting to resource bottlenecks, supply chain problems or market shifts, for example.

2. flexibility and adaptability
Crises require flexibility. Unforeseen developments can rarely be managed with rigid plans. Autonomous managers are able to adapt their teams flexibly to new challenges without having to wait for instructions from management. This makes it possible to react more quickly and efficiently to changes.

3. personal responsibility and commitment
Managers and employees who are allowed to act independently have a greater interest in getting involved. They are more motivated to take responsibility and find more creative solutions - especially in difficult situations. This attitude can make the difference between a company emerging stronger from a crisis or falling into difficulties.

4. innovative strength in difficult phases
Innovative solutions along the entire value chain are in demand, especially in times of crisis. Companies that give their employees enough freedom to try out new approaches benefit from increased innovative strength. This willingness to innovate can not only help to stabilise the company, but even open up new opportunities.

Why do many managers reduce the creative freedom of their employees and managers in times of crisis?

Despite the obvious advantages of autonomous leadership, there is a widespread tendency to tighten the reins in times of crisis. But why do many managers act in this way, even though the advantages of an autonomous management style are obvious?

1. need for control
In times of crisis, the feeling of losing control is omnipresent. For many managing directors, crisis management means retaining or regaining control of the company. By centralising decisions, they try to maintain an overview. From this perspective, it seems logical to limit the autonomy of employees in order to keep the reins in their own hands.

2. concern about wrong decisions
Mistakes can be particularly costly in times of crisis. Many managing directors fear that decentralised decisions at lower levels could lead to misjudgements and thus to incalculable risks. This is why they seize decision-making power in order to reduce the risk of missteps - even if this often impairs the organisation's innovative strength and ability to react.

3. desire for rapid implementation
Managing directors often believe that centralised decisions can be made more quickly and efficiently. The idea that coordination processes are too slow in an autonomous structure often leads to the top management taking over decision-making power.

4. trust deficit
In times of crisis, trust in the competences of employees and managers is sometimes called into question. Many managers doubt that their teams are capable of dealing with the complexity and uncertainty of the crisis. This uncertainty leads them to prefer to control the decision-making processes themselves.

5. pressure from stakeholders
Stakeholders such as shareholders, investors or banks often demand tighter control over company processes and finances in times of crisis. This pressure increases the desire of management to make centralised decisions and reduce the autonomy of the teams.

What are the risks of restricting autonomy?

Even if the restriction of autonomy seems logical from the managing directors' point of view, it often proves to be counterproductive in the long term:

• Slowed decision-making: Centralised decision-making processes often require more time, as every decision has to be reviewed and approved by top management. In today's dynamic economic climate, this can lead to dangerous delays.
• Demotivated employees: If employees feel that they are not allowed to take on responsibility, their motivation and commitment decreases. They feel less valued and begin to do only the bare minimum.
• Management overstretched: When managing directors try to take all the decisions for themselves, this often leads to overwork and a decline in the quality of decisions. They lose the overview and have to manage too many operational details.

What are the prerequisites for autonomy in management?

Trust in managers
Managing directors must place a high degree of trust in their managers and teams. Without this trust, autonomy cannot be realised. The basis for this is open communication and the realisation that mistakes are part of the learning process.

Clear goals and guidelines
Even if autonomy creates room for manoeuvre, it is important that there are clear corporate goals and guidelines to guide autonomous decisions. These serve as a compass and ensure that everyone in the company works in the same direction, even if they take different paths.

Continuous support and feedback
Autonomy does not mean leaving managers or teams to their own devices. Rather, they should be continuously supported and accompanied by the management. Regular feedback and dialogue about decisions made help to strengthen autonomy in a targeted manner and at the same time ensure that it is used in line with the corporate strategy.

Lead purposefully with effective questions

Conclusion: finding a balance between autonomy and control

The challenge for managing directors is to find a balance between control and autonomy. Autonomy in management is crucial, especially in times of crisis, in order to remain flexible, fast and innovative. Restricting autonomy may seem reassuring in the short term, but often leads to a slowdown in processes and demotivation among the workforce.

Successful managing directors rely on trustworthy leadership and clear guidelines within which their teams can act independently. In this way, the company remains capable of acting during the crisis and grows in the face of challenges.