Leadership
Values at the heart of effective leadership"
From Sabine Walter, Head of netzwerk managementberatung | coaching
The understanding of leadership is changing continuously; in the last 10-20 years even faster than before. The demands on leaders are continuously increasing, as it is a matter of securing the competitiveness of companies over a long period of time in a VUCA world (volatility, uncertainty, complexity, ambiguity). In this article, we look at values-based leadership. I show what it is all about and how companies benefit from it.
If you are a manager looking for a leadership model to orientate yourself by, you will come across various buzzwords in the trade press, such as "digital leadership", "agile leadership", "purpose driven leadership" and "value based / value oriented leadership": "digital leadership", "agile leadership", "purpose driven leadership" and "value based / value oriented leadership". What is it about in detail? While "digital leadership" answers the question of how to lead in times of digitalisation, "agile leadership" promotes the self-organisation of employees and teams, "purpose-driven leadership" has a slightly different approach to promote the intrinsic motivation of employees. It is about the question of the meaning of the company, the meaning of one's own actions.
In my article "The essence of effective leadership", I have already underlined that the core of effective leadership has remained unchanged for decades. And this core, this essence, includes values that reflect basic human needs:
- Survival
- Security
- Affiliation
- Recognition
- Self-realisation
How can leaders address these basic needs through their behaviour?
| Basic need | Leadership behaviour that takes this need into account |
| Survival: | Caring, humanity, integrity, pay appropriate remuneration |
| Security: | Honesty, integrity, trust, clarity, transparency |
| Affiliation: | Common goal image, communicating "You belong here because...", |
| Recognition: | Appreciation of the individual, perception and development of strengths |
| Self-realisation: | Give space for development, promote self-efficacy |
Leadership in the VUCA world
Value-based leadership as an anchor in uncertain times
More than ever before, in the VUCA world we need leaders whose focus is not on professional skills but on personality. To lead organisations in this complex, fast-moving, uncertain world, people are needed who are stable in themselves and trust themselves and others (!).
Leadership is no longer self-centred, but takes place from a consolidated self - perceiving the needs of the environment. This step is successful when leaders understand leadership as a service and as a responsibility towards employees.
The focus of leadership has to change radically. The focus is on the people who are part of the team and the organisation. The crucial questions that only isolated leaders have asked themselves so far are: What does my team need to be at its best? How does the immediate environment need to be changed so that my team has everything it needs to thrive and find sustainable solutions to the problems and issues we face?
Cross your heart. Do you think so?
Leadership in the VUCA world
Re-setting leadership focus: From profit maximisation to team centricity
In my work, I repeatedly see managers who find it difficult to remain confident in the face of rising commodity prices, disappearing supply chains, unstable markets, a lack of skilled workers, necessary digitalisation, the demand for more sustainability in processes and products and the unchanged profit motive. On the contrary, I see leaders who try to maintain control by "cementing" growth targets, increasing pressure, intensifying control and slipping into micro-management, creating a corporate culture that works against basic human needs. As a result, fear and frustration in the workforce increase, preventing innovation and making change significantly more difficult and agile attitudes impossible. But exactly the opposite is needed. In the current situation, we need more than ever a leadership attitude that is value-based and team-centred.
What does value-based and team-centred leadership mean?
Perhaps the question of the importance of value-based and team-centred leadership can be clarified with one sentence: Value creation through appreciation. This appreciation can of course be expressed explicitly (see point 5), but it is also necessary to use the implicit possibilities of appreciation. What does this involve?
- Honesty with myself and others
I, a leader, am also overwhelmed with the current situation. I am at a point where I do not know for sure which way is the right way. I am at a point where I also have no solution for many of the questions and problems we are confronted with. - Humanity
I am a human being, just like you, with the same needs, the same fears, worries and desires. I speak to you as a human being and I respect and value you as human beings. Each of us has a different role in this organisation. Let's think about what it takes for each of us to fulfil our role willingly and well? - Recognition of the actual situation
Many managers find it difficult to recognise the current situation. They believe that recognising the status quo automatically leads to standstill. This is a mistake. When we recognise a state as it is, we gain prudence.
What needs to be recognised?
- recognise that the current situation is difficult and complex,
- recognise that the times of outsized growth are over,
- Acknowledge that others are also insecure
- acknowledge that others do not have the perfect solution up their sleeves either,
- Acknowledge that development and change take time - Appreciation of the team and each individual member
Perceive and appreciate what resources are available in the organisation and what has been achieved so far in the team and in the organisation. It is also important to perceive each individual team member in his or her entirety. What makes this person special? Leaders who have this ability realise that in crisis situations other, and usually, people's true strengths and abilities come to the fore. To ensure that these strengths can be effective, a reorganisation of roles within the team or organisation can be useful. - Self-confidence and trust the team / organisation
Uncertain times can be better managed when self-confidence and relational confidence are an anchor. "What makes me as a person? What skills can I confidently rely on?" Only healthy self-confidence enables healthy relational confidence, that is, healthy confidence other people; in their intentions and competencies. When leaders trust their team members to have only the best intentions, they trust that everyone will do their best and that solutions will be found together to improve the status quo. - Empowering teams to give their best (unfolding)
Especially in our time, when it is extremely difficult for all companies to find staff, it is the top priority of all managers to create a fear-free environment in which everyone can develop and gladly contribute with their full potential. "What does my team need to give their best? What can I do as a leader to ensure these conditions?" should be the central questions of every leader.
What opportunities lie in value-based and team-centred leadership?
The opportunities that lie in this way of leading are manifold. I list some of them below:
- More loyalty from employees
The moment people feel seen, respected and valued as human beings, loyalty increases. This increasing loyalty leads to more commitment in an atmosphere of trust. - More commitment & ownership
This increased commitment is reflected in more personal responsibility and less absenteeism. - Less absenteeism
The lower absenteeism has a positive effect on both productivity and the mood in the team. In addition, the increased personal responsibility also leads to less idle time and thus a more efficient use of resources. - Less reactive power
Duplication of work or pointless activities are reduced. Both have a positive influence on productivity. - More cooperation and exchange
Loyalty, trust, commitment and ownership lead to more cooperation and exchange. This brings competences, perspectives and experiences into interaction in a different way. And since the whole is more than the sum of its parts, the quality of the work results increases and also the quality of decisions. - More robust decisions
A complex, uncertain and volatile world requires decisions to be made without all the information being available. So decisions always involve risk. Decisions that are made jointly, using the different perspectives, in an environment of trust and loyalty, are more robust. This means they are more sustainable and are supported by almost everyone. - Employees as ambassadors for their company
Employees who feel valued, who can contribute and develop, and who ultimately move and shape things together as a team, are valuable ambassadors for their company and thus actively contribute to attracting talent and winning it for the company. - Corporate success as a resultant
The success of the company is undoubtedly the result.
Conclusion: Managing employees in the VUCA world
Values-based and team-centred leadership - most sustainable decision in a VUCA world
Many companies are undergoing drastic transformations. Anyone who is in the midst of such a transformation, or has even led one, knows that this is a tough and lengthy process in which many employees and managers often fall by the wayside, with loyalty and commitment waning.
Values are at the heart of effective leadership. Therefore, dear managers, focus on what you can influence the most: Your own attitude and behaviour. Value-based and team-centred leadership requires that you see leadership as a service and - leaving your own ego behind - put yourself at the service of your team and create the environment that enables them to give their best.
This business decision is the most sustainable one you can make in a VUCA world.
