5 Characteristics of Modern Leadership

5 Characteristics of Modern Leadership

The mission of MDI is to support leaders who strive for a better world.

Investing in leadership development and unlocking the development potential of leaders guarantees companies long-term benefits. Furthermore, they promote creative solutions in innovative change processes.

Therefore, with this article, we make MDI’s view of modern leadership even more transparent.

 

Mag. Gunther Fürstberger

Mag. Gunther Fürstberger

CEO | MDI Management Development International

Gunther Fürstberger is a management trainer, author and CEO of Metaforum and MDI – a global consulting company providing solutions for leadership development. His main interest is to make the world a better place through excellent leadership. He has worked for clients including ABB, Abbvie, Boehringer Ingelheim, DHL, Hornbach, PWC and Swarovski. His core competence is leadership in digital transformation. He gained his own leadership experience as HR Manager of McDonald’s Central Europe/Central Asia.  At the age of 20 he already started working as a trainer.

 

1. Modern Leadership is aimed at improvement 

  • Leadership provides a definition of meaning.
  • Leadership creates, develops and completes.
  • Usually a status quo can be transferred into a better future, sometimes maintaining a good status quo is a leadership task.
  • Leaders are disruption surfers: they are aware of the changes in their environment and choose the right disruption waves to ride. 

2. Modern Leadership deals responsibly with resources 

  • The goal is a circular economy and no longer unlimited growth.
  • Leadership always considers the consequences of its actions for people and ecosystems.
  • A responsible manager strives to leave the world better than he found it. 

3. Modern Leadership restrains itself

  • Only as much leadership as necessary.
  • Hierarchy is still needed, e.g. if the employee has little experience, if there is manager liability, if personal and organisational goals are contradictory.
  • Leadership goes in both directions, employees also lead their managers.
  • By exercising restraint, leadership creates an environment in which everyone is happy to contribute their own strengths and concerns.
  • Leadership aims at the self-management of the people entrusted to it. 

4. Modern Leadership is as cooperative as possible

  • Leadership does not see employees as subordinates, but as partners at eye level.
  • Leadership is based on agreements
  • Leadership tries to win over the commitment of employees for concerns and thus builds more on intrinsic than extrinsic motivation.
  • Just as companies are paid for services by their customers, employees are paid more and more for agreed and achieved results and less on the basis of working hours. 

5. Modern leadership serves the system

  • The Leader is more concerned with the collective good than with the individual good.
  • Leadership supports learning.
  • Leaders continue to learn on their own (When was the last time I did something for the first time?).
  • Leadership develops the potential of employees.
  • Leadership makes itself aware of the effects of its own actions and interactions in the system.
  • Leadership ensures that decisions are made on the basis of short- and long-term considerations.
All hands OKR meeting

Home office accelerates the overall trend from hierarchical to lateral management.

But what exactly is changing in lateral management?

Summary: Keeping it Short & Sweet

    • Modern Leadership strives for improvement
    • Modern Leadership holds back and lets others come to the forefront
    • Modern Leadership happens at eye level
    • Modern Leadership serves the system (and sees itself as part of it)
    • Modern Leadership deals responsibly with resources

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    Transformational Coaching – working with the individual in its whole system

    Transformational Coaching – working with the individual in its whole system

    Let’s say I have a leadership problem. The solution? I am looking for a coach who can help me solving this problem. But, nowadays coaching is no longer as simple as that. Like in many other industries as well, the coaching industry is undergoing major changes caused by topics such as AI, VUCA, and digitalization. Central for the coaching industry is, that there are no longer stand-alone challenges. Executives have many connections to stakeholders, systems and the environment, where only the best coaches can really provide support.

    Inge Simons Transformational Coaching

    About the author

    Inge is an experienced executive coach and facilitator who works with senior leaders and leadership teams across different industries and countries. The most important thing during a coaching session for her are impactful conversations that enable leaders to make some positive changes within their organisations. She focuses on increasing connectedness and impact as well as successfully navigating change. Her work experience ranges from managing complex international projects and programs through to managing culture and change processes and has intimate knowledge of starting up as well as integrating businesses. She has almost 20 years of international business experience and is working together with MDI Management Development International for about 4 years already.

    From the individual challenge to a transformational coaching

     

    Like almost every business sector, the coaching industry is undergoing major changes as well. The challenges are changing and so must the solutions, we offer as coaches. Many things have changed since I started working as a coach.

    In the past, I worked a lot with individuals and their specific challenges. In a coaching session, we focused on current leadership topics and talked about them. Nowadays, we not only work on the challenges from one person but of the whole system the person is connected with. Instead of solving one specific problem or improve specific competencies, I am rather confronted with a complex system of connections, relevant stakeholders, different interests and structures. As a coach, you have to think beyond the individual. You have to think systematically. This skill was not that relevant in the past.

    Generally speaking, coaching is changing towards a partnership approach, such as many other business fields as well. The key is that the coach and coachee really work together as a team. As a coach, you must be able to understand the person as an individual but at the same time as a part of a company and society. During a coaching session, you must permanently switch between these two roles. You can’t ask your coachee to tell you the topic you’re working on today. One could simply say: the individuality has increased massively in recent years when it comes to coaching.

    But coaching is not only about strong individuality and a partnership approach. It is about changing things. A coaching should not only transform the coachee but as well the economic environment. Coaching is more than just working on the coachee’s skills.

    And: as coaches, we must be faster, more agile and we must adapt our methods to the challenges and needs of our time. So far, as coaches, we have worked a lot with 360° feedback and various analyses. This is actually not so effective because you’re looking into the past with those tools instead of working into the future.

    Transformational coaching

    As a coach, you have to be much more agile these days to look into the future and not the past

    Responsibilities as a Coach – Living a partnership approach

     

    The partnership approach, we’ve been talking about earlier, involves certain responsibilities. The times where you went to a coach and spent one hour with him/her are over. As part of this partnership approach, you as a coach have to support your coachee as good as possible, also beyond the coaching session. In my opinion and regarding leadership development, this sentence applies more than ever “The heroic CEO is dead, long live the leadership team”. This is the reality and the reason why my work as a coach has changed. I still have coaching sessions with individuals, with senior leaders, but I work much more with teams and groups of people than a few years ago. Individual coachings are more an additional measure from time to time. This development is exciting and challenging at the same time. You cannot coach someone for a few hours, get paid for it and you’re done. But you can achieve a completely different impact and experience successes together with the individuals and with teams. This change is taking place throughout the whole training and development industry. In most companies, more than 50% of the employees are millennials by now. They have different needs and a much more personalized and individual working approach. In my opinion, the time of training programs, as we know and realize them today, will be over soon.

    Excursus: Artificial Intelligence in Coaching

     

    The Singularity University has built a new app that makes diagnoses, highly complex diagnoses and sometimes even better than most doctors. Some people may start asking themselves: why should I still go to a doctor? Tomorrow we may be sitting at home, uploading our data via a chip and someone will tell us what to do. In my opinion, this will be the reality in less than 20 years.

    AI also affects the coaching industry. If you ask Alexa or Siri “How should I deal with my conflicts?” they will have a lot to say. One effect: you no longer have to tell your coachee all the basics because they can find them on the internet. Another effect: many average coaches will probably lose their jobs because they have been replaced by Artificial Intelligence.

    What moves executives today

     

    Nowadays, we have this interesting phenomenon that children learn a lot in school they don’t need later in life. Meanwhile, other skills remain on track. For example, the ability to quickly work together with people you’ve never worked with before – beyond nationalities. That’s a skill you cannot cover or replace by the internet or AI – unless we will all be robots at some point. This is a key challenge for today’s leaders. Everything has to be fast, you face a new situation with new teams and stakeholders and you do not even have 6 months to incorporate. You immediately have to get used to the new situation. In this case, we as coaches, can support them with questions such as “Who am I?”, “How do I affect people?”, “What kind of impact can I have?”

    Transformational coaching - Interpersonal level

    We learn so many things in school, but one of the most important things we don’t – for instance, the ability to work together with different people from different countries.

    Nevertheless, the interpersonal relationship is still the focus of the coaching – in all possible forms. Of course, that has a lot to do with communication, whose challenge has increased with the complex systems, we live and work in. People no longer work alone, isolated in their personal “silos”. There is always a connection with partners, not only within the company but also on the outside. This is the reason why everything about cooperation is one of the most important topics during coaching.

    Equal to the interpersonal challenges is the time, we currently live in, and all the challenges it brings. Complexity, overextension, the flood of information, aggressive competition, and constant disruption are just a few keywords. So many things are happening at once nowadays. As a leader, you must make sure that your business is running. At the same time, you must be aware of the changes which might come. The speed of change is enormous. Not too long ago, people were starting to talk about VUCA – now it’s here!

    When working on a senior level, the question of meaning is central and more present than ever. People are wondering and asking themselves if their work really adds value to the world. “If my life comes to an end, will I be satisfied with what I did in my life?”

     

    Coaching in times of disruption – a conclusion

     

    We all come from areas where it is said over and over again “This is the agenda.” Based on this agenda, things get told, questions asked and on certain actions will be agreed on. But we all know that many of these actions are never put into practice – whether in a meeting or a leadership program. Now, when we think about what makes coaching meaningful and successful, it’s the following: the moment you take part in coaching, something must happen. We must change our mindset from “I am asking a few questions” to “I am doing interventions right now!” Such an intervention does not have to be big, it can be – for instance – just a sentence that triggers something in the coachee. What’s important is that something is happening and that you try to make a difference in this exact moment.

    As long as this happens, as long as coaching creates impact, it will persist – still in times of AI – but at a different level with higher quality.

    Dear Inge, where do you see the purpose of your work?

     

    Firstly my work is enormously exciting and complex and consistently an adventure. Methodological I always start to work with the principle “We start with the end in mind”. This means that I always try to find out where we have to go. Actually, we never know where the journey of development will bring us and what will happen. That all happens unbelievably fast and this is what fascinates me. I like the complexity and I like working intensively, starting the journey anywhere and find out what it needs to support a person, a team or a company on their way. Most important for me is knowing to have an impact on people and the organization I work with and to make some change. Especially when I think of my kids and their kids. Primarily, I work in the organization sector, in government as well as in non-government and I would like to leave not just chaos for the next generation. I am trying to support the people as good as I can so that they can advance the organization in their way. Therefore, we are all helping to create a better world.

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    Waves instead of a solid ground

     

    Often, these waves arise far away before they come to the coast, where their size is only predictable at short notice. Therefore, they can either be a threat or a great chance for the surfer. An experienced surfer observes the waves and chooses the right one for him. If the waves are not strong enough, you can’t really do a lot with it.

    Waves of the disruption

    Is the wave a threat or a great chance for the surfer? An experienced surfer observes the waves in the first place and chooses the right one for him afterwards.

     

    As a leader in the digital transformation, you should definitely keep an eye on the approaching waves of change. Many companies are drowning because they ignore the changes, which are often coming from an unexpected side. If they do not ignore them, they often only recognize them when it is already too late. In the meanwhile, others could perceive the opportunities and the creative potential of the changes and are often surprised by the unexpected possibilities which suddenly arise.

     

    The surfboard – a tool of agile leadership

     

    Basically, a surfer only needs the right surfboard as a tool. The material entry barrier for this sport is very low. This applies to the digital economy as well. Many of today’s largest Silicon Valley companies were founded by students with little equity. As an agile leader, you have a variety of tools at your disposal. We’ve already worked out the most important key tools, you should have as an agile leader in a previous blog article.

    Surfboard as a tool for disruption

    As with the digital economy, the material entry barrier at surfing is very low – all you need is a surfboard, basically. Some of Silicon Valley’s top companies were founded with little equity as well.

    Next to the tool-set, the associated skills want to be developed as well. A surfer’s main skill is the ability to balance on a moving surface which can only be achieved by a constant and balanced movement. This is cognitively difficult. As a surfer, you develop a sense of balance through a lot of practice. The same applies to an agile leader. The key to stay on track is the ability to react quickly and adequately to the many and rapid changes. Doing this by himself is quite difficult. Therefore he needs additional collaboration skills, such as creating transparency and visualizing things.

     

    Attitude and skillset

     

    Both, the surfer and the agile leader, are only able to gain mastery when tapping into creative potential.

    Even more important as a tool-and skillset is the right mindset: the disruption surfer sees a change as an opportunity, acts with others at eye level and with much openness. Even if the disruption waves look threatening to many people in the first place, the disruption surfer says, with brightness in his eyes: “Wow, this wave I’ll take!”

    Article by Mag. Gunther Fürstberger, CEO of MDI Management Development International.

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    Anita Berger about Purpose and Engagement in digital times
    About the author

    Anita Berger is MDI Managing Partner and accompanies organizations internationally and from all sectors as a consultant in organizational development, as a management trainer and coach, for many years already. She is an expert when it comes to engagement and motivation 3.0. As a certified trainer, she offers the Original Drive Workshop after Daniel H. Pink, which is also a module of the Agile Leadership certification course.

    Being an agile leader – be mobile & motivate

     

    For me, being an agile leader means to be flexible and to stay mobile. The conditions in companies, teams, and projects are changing so fast today that it is often not possible to act proactively – you have to react. As fast as possible. Agile leadership is about being mobile and staying mobile. Wherever possible, you should, of course, be able to plan and act proactively. But in my opinion, nowadays, it is more important to react quickly, constructively and productively. Another important skill is being able to adapt to different circumstances as a leader.

    A successful leader also creates a set-up that allows employees to think in terms of ideas and solutions rather than problems. Employees must be able to think outside the box and constantly explore options and opportunities. Employees need a high degree of self-commitment and personal responsibility. The reason for this is that our fast-paced time is exhausting, certainly not always “easy-cheesy” and relaxing. In order to do so, a leader needs employees who understand the reason behind actions and projects. More importantly, they need to believe in it and go an extra mile to achieve the maximum performance from their own accord.

     

    It’s all about purpose

     

    In this context, the purpose plays a crucial role. Ideally, it is like this: There is a clearly formulated and strong corporate purpose the employees know about. They can reflect on this corporate purpose and establish an intersection between what is important to them and the purpose of the organization. With this interaction, they know how to contribute to the “bigger picture”.

    Of course, there will be cases in which the company’s purpose is not tangible enough to define one’s own contribution as an employee. If this is the case, it takes a break on the organizational unit, which is relevant for each team member, followed by the comparison: How does that fit together? What is important to the person?

    I think that there is still potential in many companies when it comes to defining the purpose. Especially regarding the correlation between one’s personal purpose and the purpose of the organization.

    Finding Purpose

    Many leaders are asking the same question: Why do I do what I am doing? How can I contribute?

     

    If you would like to start working on this topic, start with questions like What does purpose actually mean for our company? How tangible is it and is there place and time for a real confrontation? Is it something that stands on a marketing folder or do I associate more with it as a leader, as a CEO or as a board member?

    Furthermore, it is important to look for the dispute according to rounds of questions and discussions. It is about a conscious process, in which employees deal with their own purpose and at the same time as the one of the company. As well as actively looking for points of friction and similarities. It can happen that somebody says: My purpose is not your business, that’s private. Of course, this must be respected and, as a leader, you must at least make sure that the respective team members recognize their own contribution to the corporate mission through their work tasks. Thereby they have to find meaning in what they do and, as a result, gain commitment.

     

    The concept of engagement – Drive by Daniel H. Pink

     

    A concept, I really like to use, is the Drive concept from the bestselling author Daniel H. Pink. I use it to reflect with leaders and team members and to work on motivation and purpose. From my point of view, it gives you clarity in a complex of topics that is sometimes elusive and difficult to grasp. Furthermore, it provides valuable insights by determining the location: where do I stand? How do I fit for the business purpose? What else would it take for the fit to be better?

    For example, I worked with a group of senior executives and spent a whole afternoon answering questions like: ”What is my own purpose? How does this coincide with the corporate trajectory?” One participant has stated that she clearly separates her own purpose from that of the company, and at the same time realizes that it requires quite a bit of effort. As a result, she asked herself where there could be a common intersection, and how much energy she can use to bridge this gap.

    Exactly those kinds of reflections are the ones, I find extremely valuable for both sides, the participants, and company. It offers a real value, to pause for a moment and go into depth to gain clarity on the one hand, but more importantly to gain motivation and commitment for the daily challenges.

    More about the DRIVE concept

     

    In addition to the purpose, the Drive concept is also about self-determination (Autonomy) and perfecting (Mastery) as a lever for engagement. Find out more about the concept in this video and in Daniel H. Pink’s book The surprising truth about what motivates us.”

     

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