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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    You have lived in Italy for a long time and still work there as a coach today. Currently, you’re living in Switzerland. Has your work as a coach and the expectations of your clients, the executives, changed over the past few years?

     

    Alexander: 20 years ago, coaching was not an issue at all in Italy. It was more the opposite: anyone who needed a coach was “sick” in the eyes of the others. Italian companies were usually very hierarchical and once someone made it to the top, the person was quite resistant to any “advice” or coaching. Unfortunately, this has hardly changed in many companies until today. Most of my clients work for international companies, therefore their leadership culture is obviously different. The reason for coaching is almost always a result from feedback, either directly from the supervisor or through 360° feedback. In that sense, my work has hardly changed, even though the expectation of me as a coach is going in the direction of consulting. Some clients are genuinely disappointed when I tell them that they cannot only get some advice from me about what they can do better. They actually have to work on themselves to trigger the desired change.

     

    What is the situation in Switzerland, what differences do you see between the two countries?

     

    In my opinion, the biggest difference between the countries is the attitude. In Switzerland, coaching is a perfectly accepted tool for personal development. I think that Swiss executives are more actively taking on further training opportunities than their colleagues in Italy. As a coach, you may have less need for explanation, but the topics are usually very similar.

     

    A very general question: In your opinion, what are currently the biggest challenges that managers in Italy and Switzerland have to face?

     

    Leadership has so many different aspects that answering that question could fill an entire book. Therefore, I would like to direct my answer to one topic – and that is the understanding of leadership especially in the context of differences between the generations. Nowadays, we have up to 3 different age groups or generations in a company. Very hierarchical structures and leadership styles are not up-to-date anymore. Just yesterday, I had a conversation with a client who told me how difficult it would be to have a good friend as an employee. When I asked him why he thought so, he said that he would feel uncomfortable giving him instructions. So I asked him why he thinks that his other employees would like instructions. I think that’s when something happened to him…

     

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    We live in a VUCA world and digitalization has an impact on many aspects of our lives. In your opinion, how do you have to act as a leader to respond to this change? Is that an important topic for you in coaching?

     

    What does digitalization bring with it? Change! Changes or rather the fear of it or even the refusal to face it is always a key issue in coaching. Therefore, I do not see a big difference to a merger, a restructuring, an adjustment of the business model, etc. Something I notice, however, is the lack of understanding, which opportunities the digitalization offers for the companies. It is not (more) about the replacement of the typewriter by a computer, but the integration of all digital possibilities in the business process. In my opinion, many internal but also external change managers should do a better job here.

     

    Are you using many digital tools in your coaching and how do you see the future of face 2 face coaching?

     

    My coaching is always a mix of face 2 face sessions and short virtual sequences. Often it is about keeping the client involved in the process and therefore, Skype or Zoom calls are the ideal tools. But I am a bit concerned about the large number of offers on the subject of speed or telephone coaching. What makes us coaches, is the ability to hear between the lines – and that is not possible without the perception of body language in my opinion. So I think that also in the future, coaching will be a good mix of digital and face 2 face coaching sessions.

    Executive coaching

    Online tools can, of course, add some value to a coaching session but what makes a good coach is the ability to hear between the lines and this is not possible without the perception of body language.

    You have worked in an international environment in sales and marketing for a long time. What was the reason to start working in the field of human resources development and specialize in leadership development?

     

    At some point, everyone is wondering if this is it and what the reason is to get up every day. I was able to live out my passion for human development as the head of a European organization. The results were so encouraging that I – within the group – reoriented myself towards leadership development. The establishment and leadership of the company’s Academy inspired me to live my mission as an independent coach after many years.

    Where do you see the biggest challenges in leadership development in the next few years? On the one hand for coaches, on the other hand for executives themselves.

     

    Leadership development will (have to) go even more in the direction of personality development. Business schools like IMD in Lausanne or INSEAD near Paris have been recognizing this for a long time. They offer a good mix of management knowledge as well as best practice examples and intensive coaching sequences in their programs. In these sequences, e.g. the results of a 360 ° feedback are discussed in small groups. The coach has a rather moderating role here. The participants are taught coaching techniques based on current practical examples, which help them to strengthen their self-perception. I believe that all of us – leaders and coaches – will need to be even more flexible and willing to learn in the future.

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    Life crisis, leadership problems, the lack of (self) motivation, reorientation, location determination and difficult top managers who believe they know everything but still feel that something is missing.

    What motivates or drives you in your job?

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    Do you have a personal motto or slogan?

    My mission is to support leaders finding their own purpose

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    John livden leadership training in norway expert
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    John: I think that the biggest challenge is actually the gap between management and leadership. Managing the projects, the people and the organization takes up so much time for leaders. My experience is, that a lot of leaders really feel this pressure. There so many things they have to do and the thoughts they have in their mind. I think that one solution to this problem could be the implementation of new agile leadership styles, where the leadership tasks are not only with the leaders but also with other employees of the company. This has a lot to do with coordination and cooperation between people and the way they work together. Successful leaders should be able to manage the complexity around them and still find time to actually build relationships, to communicate and to be there for their employees.

     

    You are working with international companies and leaders. What are the most important skills when working as a trainer on an international level?

     

    I think you need to have a good radar. You can’t know everything because you are not native. You have to be aware that you are working together with people from another culture. Try to find connection points and try to understand the differences. And probably most important, always pay respect for their culture. Keep in mind that there could be cultural elements that are inhibiting the learning process which leads to conflicts. In this case, sometimes cultural differences can be a hinder for development. As a trainer and consultant, you have to be aware that you have challenge things from time to time. Make sure to know how to do this in a good way.

     

    What would you tell a trainer who has her/his first training in Norway? Do you have any tips?

     

    I think, when we are specifically talking about Norway, it is important to understand, that the Norwegian culture and the Norwegian working-culture is very different from, for instance, the German or even the Danish one. Actually, many people see the Scandinavians as one entity, but there are differences between Norway, Sweden, and Denmark as well. We should definitely be aware of this. It is really interesting to see the differences the way people make decisions, how they approach problem-solving, discuss and handle conflicts. For example, the difference in the overall picture between a Norwegian and a Danish, when it comes to a business setting is following: The Danish has a much more continental influence on their business style and is more business oriented, as well as a little bit more formal and hierarchical. Of course, we do have hierarchies in Norway as well, but we have a much more egalitarian view on the work life. The power distance between the managing director and the genitor often seems lower. This is as well a difference to Germany or Austria. They are much more formal in the way they are working and how they are addressing each other. But I think this will also change with generations. In Norway, we are very informal in general, also in the workplace. Some people can also experience it a bit rude, when you really meet in eye level and people speak their mind, in some cases more freely.

    leadership development in norway hierarchy

    The working-culture in Norway is very different from, for instance, the German or even the Danish one. The power distance between the managing director & genitor often seems lower and the view on the work life is much more egalitarian.

    The influence of e-Learning in leadership development

     

    So you said that this informal/formal way of addressing will change with generations. We can already see many changes between the generations in companies. Keyword: digital natives and digital transformation. How do see this? How does the digital transformation influence the work life in Norway already?

     

    I think, when it comes to the Norwegian society, we are in the middle of the shift. Sometimes I am a little bit surprised when I am working in Germany for instance, and see that they are not there yet. Online we are connected, this is the way we live. But this can be very stressful for leaders, who are for instance 50+. Much more stressful than for a 20-year-old, who is growing up as a digital native and who is working seamlessly with different online platforms and systems. For a leader who did not grow up in this digital time, it could be challenging. It creates some tension between the way how his/her generation is doing things and “the new way of doing things.” All in all, I think that in Norway, we are really getting along with the digitalization on all levels of society. Public services, social security, taxes, the medical system, etc. – everything is online now. It is getting more and more digital and people are getting used to it. When they don’t, this will be a real problem. I have been putting a lot of effort, also in my interest, to use more digital tools.

     

    This is something you probably also see as a training and development guide. Are you using a lot of e-learning during your training?

     

    It really depends. In this case, I am kind of more a “classical trainer” who loves one-to-one-interaction: physically in the classroom but also in some group-settings. I know, that there are more and more courses available on the internet. E-learning is a component in almost every company. Many companies have e-learning platforms for many different skills, not only leadership skills. Our business world is very digital already, all of it and I think we will see more of it in the future. Besides that, I think that you cannot rely on digital solutions at 100%. For me, leadership has a lot to do with who you are and what you do. You can learn the theory, you can study the method, you can have check-lists but you cannot substitute the factor of human leadership. Leadership development is very closely connected to personal development. It is also about a leader being responsible for his or her behavior, attitude, communication and the way they come across. You can read this in theory but basically, you need to do it in practical life.

    So when we are coming back to e-learning, I think that you can study the theory with the support of e-learning but the human interaction is missing. I really embrace the digital shift and I see a lot of positive things and, as I said before, I think that we have just seen the start of it. But we still need the human element. You can automate things and use things such as artificial intelligence but things can go crazy if we leave leaderships just to algorithms. As a leadership trainer, team trainer and organizational development consultant it is very important to have this human factor. This factor is based on relation, experience and knowledge – theoretical knowledge is not enough. This is perhaps also the deviation between leadership as a technique and leadership as an art. There is no 100% right answer to this. It takes a person and a character. In my experience, the most giving leadership development programs are the ones, where we go so close to the person, the leader and where we challenge them on a very personal level. This can be quite deep actually.

     

    So would you agree that e-Learning is more an add-on and can be used for theory or as a follow-up?

     

    Yes, it can be a real add-on. Also in my consultancy, I have an online platform, where we communicate, share things and thoughts, where I can show videos and so on. But this is something in addition to the personal contact and the group exercises. 

     

    How do you think that this will be in the future?

     

    I think it will definitely change and we will probably see much more of the digital tools and the digital way of making learning opportunities like virtual reality. Of course, this is something positive. But I also think that we can lose ourselves in being human beings when we just rely on the digital things. Leadership is very practical and it happens in real life and in real life situations, where you cannot control what is happening between people. So there will definitely be surprises and it takes a character to be able to do that.

     

    So all in all: What do you think will be the biggest changes and challenges for organizations, for leadership but also for the training and development industry in general?

     

    We are living in a dynamic world, in which the demands of the employees will be different in the future. The younger generation won’t be willing to work every day from 9 to 5. This generation wants to be more flexible. Therefore we have to find much more flexible solutions and this flexibility leads to complexity as well. For leaders, it will be more difficult to control the work of their employees and to keep an overview. If you are giving the people more freedom, you are losing some control you traditionally had as a leader. This had been a very huge change and I think we have only seen the start of it. This is one example of what will change in the next years. So it is important to create a company culture, where flexibility is a big part of it. But it is important as well, to be able to be one unit, one company, one organization. Many leaders have already lost and will probably lose some of their formal power and structural power, so what will there be left? Leadership will be more about the relationships, the communication, the flow of things and much more. Leaders have to make up a new mindset and that requires much more agility and the ability to drive in a world that starts to work quite differently than it was in the past.

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