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What is Sustainable Individualization in Leadership?

What is Sustainable Individualization in Leadership?

by Iris Burner | Jun 28, 2023 | Digital Transformation, Leadership Impact, Leadership in the digital transformation | 0 comments

Sustainable individualization in leadership – pious hope or real alternative?

In line with the last blog post on our MDI website “Inner Development Goals For a Better Leadership World“, this time we dedicate ourselves to the megatrend topic of individualization and the connection with the Inner Development Goals (IDGs) towards sustainable leadership.

Individualization instead of multi-module programs

The status quo often shows that companies rely on multi-module programs to develop and train their executives. Depending on the target group, these programs provide a broad general basis of tools and methods – a so-called “toolbox” from which the appropriate tool can be selected according to the situation.

In times of ever scarcer resources (keywords: time and knowledge, cost efficiency and environment) and living realities in climate change, however, one topic is increasingly coming to the fore in the education and training of our future shapers of tomorrow: individualization.

Individualization – one of the 12 megatrends

Individualization was presented by the Zukunftsinstitut 2023 as one of the 12 megatrends. These megatrends are the central trends of our time. They are the biggest drivers of change in business and society and shape our future – not just in the short term, but in the medium to long term. Megatrends unfold their dynamics over decades.

IDGs & SDGs 2030

This time horizon may seem long, especially considering the Inner Development Goals (IDGs), which are based on the implementation of the Sustainable Development Goals for 2030. This deadline means that the implementation of this megatrend can no longer be delayed. 

But when we think of Sustainable Development Goals, can we give individualization any room at all? Doesn’t individualization always consume considerably more resources than a collective measure? 

Megatrend-Map

Quelle: Zukunftsinstitut.de 

Sustainability vs. Individualization – Dealbreaker or Complement?

Sustainability and individualization have an interesting interaction with IDGs. On the one hand, individualization can be seen as a potential challenge to sustainability, as it may require more resources and lead to fragmentation of actions. If individualized programs are developed for each leader or individual, this can add time and cost and may be inefficient.

On the other hand, individualization also offers opportunities for sustainability. By enabling people to consider their interests, strengths, and needs, tailored development and education can take place. When leaders are supported in their development processes and have the opportunity to leverage their strengths, they can develop more effective leadership approaches that are also aligned with sustainability goals.

Promoting Individual Strengths and Creating Sustainability for Leaders and Organizations

IDGs are leveraging the megatrend of individualization to promote personal development and inner growth. By focusing on individual needs and goals, they enable people to realize their full potential and shape their own growth. This also includes the development of leadership competencies required for the sustainable transformation of organizations and societies.

Sustainable individualization in leadership thus means reconciling individual development and sustainability goals. This requires careful planning and design of educational activities to address both individual needs and sustainability issues. It is about fostering individual strengths while creating a common foundation for sustainable leadership.

Transfer to practice – 3 concrete approaches

What concrete measures can companies now take to initiate a sustainable and individualized leadership era?

1. IDG potential analysis

As a possible tool, the IDG potential analysis, for example, can provide an initial basic assessment. The basis of this analysis is a questionnaire based on the five IDGs (Being, Thinking, Relating, Collaborating, and Acting). By evaluating the analysis, the leader receives a self-assessment and finds out where they stand on the company values.

 

The results of the analysis serve as a basis for targeted measures to promote personal and professional growth in line with the IDGs and are particularly suitable for organizational and personnel development, leadership, team development, and change processes.

generational management

2. Team workshops with team profiles

In order to validate the self-assessment, there is also the possibility to get an external assessment from a colleague. Based on this, there is the possibility to conduct team workshops with team profiles to strengthen cooperation regarding the IDGs.

3. Mentoring program

Another way to put these findings into practice is to implement a mentoring program. This program supports leaders in realizing their individual goals and needs and integrating sustainability-oriented approaches into their leadership practice.

Executives are paired individually with an experienced mentor to foster their personal development and leadership skills. Thus, individual leaders’ needs and goals are addressed by assigning them a mentor who has experience and expertise in the specific areas the leader wants to work on.

The mentoring relationship allows executives to identify their individual strengths and weaknesses and work on them specifically. At the same time, the mentor and mentee are in a two-way exchange on a variety of topics, allowing them to learn from and with each other. This helps the leaders to integrate sustainability-oriented approaches into their leadership practice and to drive positive change in their organizations.

Conclusion

Ultimately, IDGs and customization can help create a new generation of leaders who are both personally fulfilled and focused on sustainable change. By addressing the individual needs and potential of each individual, IDGs can pave the way for sustainable and individualized leadership that can have a positive impact on organizations, society, and the environment.

Commitment MDI – We support leaders who strive for a better world

As an official partner of the Inner Development Goals (IDG), we are actively engaged in collaborating with other stakeholders, organizations, and individuals to advance the integration of transformational sustainable development skills into our leadership development. Our goal is to facilitate dialogue, knowledge sharing, and collaboration to advance the SDGs agenda.

Iris Burner

Iris Burner

Learning & Development Consultant

Since 2022, Iris has been an L&D Consultant at MDI, supporting leaders and organisations worldwide in personal development and creating tailored training programs. She values the personal learning experience and ensures clients benefit from valuable insights. With a background in adult education and professional experience in a renowned corporation, Iris has a comprehensive understanding of company needs and develops customized solutions for sustainable development and growth.

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Why Should We Lead More Sustainably?

Why Should We Lead More Sustainably?

by Aline Depoorter, Jana Wölfl | Jun 26, 2023 | Leadership Impact, Leadership Tips, MDI Inside | 0 comments

Why Should We Lead More Sustainably?

It is hard to imagine most companies today without the concept of “sustainable leadership.” Leaders are not only becoming more privately aware of the impact of climate change but also want to fight it on a corporate level.

In this article, you will learn what exactly is meant by Sustainable Leadership and how we at MDI are doing our part.

What is Sustainable Leadership?

In the Journal of Corporate Citizenship, Sustainable Leadership is defined as a leadership style that incorporates social, economic, and environmental issues into its professional concepts. Sustainable leadership is the collaboration of multiple individuals striving to provide the best possible professional future for future generations.

It is important to have an eco-centric mindset (sustainable consumption both privately and as a company), to plan for the long term, and to innovate new, environmentally friendly methods and models.

This means, then, that in a sustainable management style, strong thought is given to the future generation of workers. By consciously paying attention to the environment and planning sustainably in the company, you directly contribute to a generally more sustainable leadership culture.

What Are the Benefits of Sustainable Leadership?

According to a Forbes article, two-thirds of international organizations are striving to be more sustainable in their business. They are focusing heavily on expanding sustainable approaches because, on the one hand, they are feeling the effects of climate change both physically and financially (especially companies in the agricultural sector).

On the other hand, sustainability strategies lead to better financial performance and thus higher profitability, as a Harvard Business Review study has found.

Another relevant aspect is the fact that many job applicants prefer a sustainable management style and would rather accept a job that shares their values and where they can make a difference. 69% of workers consider the aspect of sustainability when choosing a career.

Sustainable leadership is therefore not only a financial advantage for companies but also an attractive factor for applicants and employees.

Sustainable Leadership

Sustainable Leadership @ MDI

At MDI, we also take sustainability to heart. For starters, we conduct the majority of our seminars virtually, which significantly reduces our carbon footprint by saving our participants’ travel expenses and the company travel and hotel costs.

Since virtual conferences can also have a negative impact on the environment, the quality of the video does not have to be extremely high. The type of technology also plays a major role – according to this, a fiber optic line is a much more environmentally friendly alternative to standard 3G mobile internet.

In addition, when choosing the means of transport, it is also important to us that public connections are used, for example, in order to reduce the ecological footprint. We also make sure that the average of our participants does not have a long or far journey to the seminar location.

However, MDI still has an annual CO2 emission of 119 tons, which is why we offset our greenhouse gas emissions by purchasing certificates from the “VCS & CCBS Forest Conservation Brazil” project. We also strive to implement sustainable management strategies at our main site in Vienna.

In general, we are aware of the state of the environment and we always strive to do our part for a more sustainable leadership culture in the spirit of Sustainable Leadership.

Office Inner Development Goals (IDG) Collaboration Partner

As an official Inner Development Goals (IDG) collaborating partner, we at MDI are committed to actively engaging with other stakeholders, organizations, and individuals, to promote the integration of transformational skills for sustainable development into our Leadership Development. We aim to facilitate dialogue, knowledge sharing, and collaboration to advance the agenda of the IDGs.

Read more on our Inner Development Goals for a Better Leadership World

Sources:

https://www.researchgate.net/publication/263604448_Sustainable_Leadership_Towards_a_Workable_Definition

https://www.forbes.com/sites/forbeshumanresourcescouncil/2022/09/07/the-importance-of-sustainable-leadership/?sh=36805631b6ae

https://hbr.org/2017/09/how-to-quantify-sustainabilitys-impact-on-your-bottom-line

https://news.gallup.com/poll/346619/environmental-record-factor-job-seekers.aspx

Aline Depoorter

Aline Depoorter

Marketing Manager

Aline joined MDI in 2020 as a Marketing Manager with over 10 years of B2B marketing experience. She is primarily responsible for the overall coordinated organisation of MDI’s advertising activities and the management of marketing projects. This includes, among others, the MDI Business Unit SDI as well as Leadership Horizon and personalist.at. Aline is a strong marketing all-rounder with a passion for leadership development, digital transformation and event organisation.

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Jana Wölfl

Jana Wölfl

Marketing Assistant

Jana Wölfl works at MDI as a marketing assistant and writes blog posts for our site in addition to her studies at Leiden University.

She also works for SDI and supports us with writing content there as well.

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Inner Development Goals for a Better Leadership World

Inner Development Goals for a Better Leadership World

by Gunther Fürstberger | May 30, 2023 | International leadership development, Leadership Impact, training new leader | 0 comments

Inner Development Goals for a better leadership world

Many companies invest in training and programs to prepare their leaders for the challenges of business. But in addition to traditional goals such as increasing sales and optimizing efficiency, Inner Development Goals (IDGs) are also gaining importance.

But what exactly are IDGs and why should they matter in leadership development?

Better philosophy, a better leader

Inner Development Goals refer to the personal development and growth of leaders at a deeper level. They focus not only on improving skills and competencies but also on a leader’s inner state and awareness.

IDGs aim to help you as a leader develop your emotional intelligence, self-reflection, values, and leadership philosophy.

Organizations align their leadership development efforts with organizational goals and strategy. Traditionally, leadership development programs have focused primarily on building skills and competencies that are important to the success of the organization.

Sustainability Goals 2030

More and more companies are recognizing that financial success is not the only thing that matters; they also want to contribute to a resource-efficient circular economy to enable a livable future.

With its vision of a Sustainable World in 2030 and the Sustainable Development Goals, the United Nations has created a global framework that can serve as a guide for companies.

Unfortunately, since the world is nowhere near on track to achieving the Sustainability Development Goals, the Inner Development Goals were created. These start with the capabilities and attitudes of individuals.

Analyze your values

To align your organization’s leadership culture with the IDGs and thus with sustainability, it makes sense to start by analyzing your existing organizational values, leadership competencies, leadership rules of engagement, and leadership development activities. It is important to assess your current leadership skills and competencies and understand how well they align with your desired IDGs.

A measurable comparison of the existing competency set with the IDGs allows us to determine the degree of overlap. Where are there already strengths and where are there still areas for development? Based on your analysis, a clear goal for the development of the IDGs can be defined.

A Roadmap for Reflection

Once the degree of overlap and the goal is defined, a roadmap for the changed leadership development architecture can be created. This roadmap includes specific training and coaching activities aimed at nurturing and developing IDGs.

For example, programs can be implemented to promote self-reflection, strengthen emotional intelligence or develop a sustainability-oriented leadership personality.

A content example of leadership development geared toward IDGs might be a program to promote mindfulness and stress management. By training leaders in mindfulness techniques, you can learn to be more aware of your inner state, reduce stress, and make more conscious decisions.

This enhances your personal development and helps you stay calm and collected in challenging situations.

Sustainable Leadership Goals

Who works with IDG?

Examples of companies working with IDGs include IKEA, Google, and Novartis. The IDG movement started in 2020, so it’s still quite young. But it is spreading rapidly. There are now 350 IDG hubs worldwide and a few new ones are added every week.

 

Not only the quantitative growth is impressive, but also the depth of content. This is supported by the fact that renowned authors such as Amy Edmonson, Otto Scharma, and Peter Senge are among the supporters, as well as academic partners from Harvard, Stockholm, or Erasmus University.

Possible difficulties

Integrating IDGs into leadership development can encounter several challenges. For one, it requires a shift in your organizational culture to recognize the value and importance of your internal development. It also requires time and resources to implement appropriate training and programs.

To overcome these challenges, it’s important to raise your awareness of the importance of IDGs and make clear the benefits to individual and corporate development.

Companies can conduct internal communication and awareness campaigns to inform employees about the benefits of IDGs in leadership development.

Promote your learning culture

It can also be helpful to foster a culture of learning and personal development within the company. You can do this by creating learning opportunities, such as mentoring programs, coaching, or internal training.

By allowing your company to provide you as a leader with opportunities to continuously develop and pursue your IDGs, you can create a positive and supportive environment.

So far, no official certification system has been created that can objectively provide transparency on the success of IDG initiatives. But some initiatives are already underway toward measuring the impact of IDGs.

IDGs for a more sustainable planet

Integrating Inner Development Goals (IDGs) into leadership development offers companies the opportunity to develop you as a leader on a deeper level and promote sustainable and authentic leadership.

By clarifying your inner goals and values as a leader and aligning them with your actions, you can contribute not only to the financial success of the company but also to a resource-efficient circular economy and a sustainable future.

By integrating IDGs into their leadership development efforts, companies can create a new generation of leaders who are not only technically competent but also possess inner strength and awareness. This ultimately leads to an attractive corporate culture, long-term success, and a contribution to the creation of a sustainable world.

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.

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One Size Fits None: An Appeal for Better Leaders

One Size Fits None: An Appeal for Better Leaders

by Hamza Khan | Feb 27, 2023 | International leadership development, Leadership Impact, Leadership Tips | 0 comments

One Size Fits None: An Appeal for Better Leaders

According to Deloitte University Press, 86% of companies have identified developing new leaders as an “urgent” need. And upon closer inspection, it’s clear to see why. 

Incompetency as a Norm

When it comes to managers’ performance, alarmingly, the norm seems to be incompetence. In a recent study, Gallup found that companies fail to choose suitable candidates for management roles a staggering 82% of the time. Now to be fair, there are not many qualified potential people to choose from in the first place.

In another report, Gallup revealed that only 1 in 10 people possess requisite management talents, such as the ability to build relationships that create trust, open dialogue, and full transparency. And of those who do end up becoming managers, their talent is seldom nurtured. 

A survey by Career Builders found that a whopping 58% of managers receive little-to-no management training. Alas, most bosses aren’t necessarily good at making the people around them better. And how this plays out in workplaces across the planet is disheartening.

For instance, a Harvard Business Review study uncovered that 58% of people trust strangers more than their bosses. So arguably, they are more willing to let their children get into an Uber driven by a complete stranger than they are to let them work with their boss. In light of these findings, it’s no surprise that most employees—upwards of 80% according to some of the most comprehensive studies—are disengaged, looking for other jobs, and ditching traditional employment to pursue entrepreneurship. 

Who is your Leadership Inspiration?

As it happens, the modern workplace is overrun by bosses who aren’t qualified to lead. Reflect on your career for a moment by thinking about the best boss you worked for, as well as the worst boss you worked for. Once you’ve visualized them, ask yourself: whose leadership style do you strive to emulate?

If you picked the best boss you worked for, then you have an innate understanding of the complex problem at hand, as well as its embarrassingly simple solution.

On one side, it’s heartening to see organizations worldwide upgrade from simple Corporate Social Responsibility commitments to more holistic and comprehensive Environmental, Social, and Governance commitments, as well as aspire to B-Corp status.

Glimpses of a positive-sum thriving future are visible through the cracks of the prevailing zero-sum failing system. A full year before we plunged into the chaos of the COVID-19 pandemic, Marc Benioff, CEO of Salesforce, made this urgent appeal to his contemporaries at the 2019 Business Roundtable Forum: 

“The purpose of business now transcends shareholders. We need a reinvented system focused on employees, customers, communities, and the planet.”  

Leadership Inspiration

Meaningful Leadership

Benioff believes that companies should use their power to advance meaningful causes. And chief among them is the fight against climate change. In doing so, he joins a small but rising list of industry captains—including Patagonia Founder Yves Chouinard, who made headlines for relinquishing his entire stake in the company to fight climate change—who speak up about the necessary structural changes required to stand a chance against the world’s most pressing issue.

So on one side, it seems that leaders have their hearts in the right places as far as environmental sustainability is concerned. But on the other, a peculiar problem is intensifying: organizations are living shorter and shorter lives. Consider that in 1958, the average age of an S&P 500 company was a healthy 61 years. But in 2023, that number is down to a mere 18 years.

In fact, McKinsey calculates that most S&P 500 companies will disappear by 2027. I suspect that this rate of decay has a lot to do with the aforementioned issue of bad bosses. As I wrote about extensively in my pandemic-inspired book, “Leadership, Reinvented,” during times of change and crises, people don’t “step up”—they actually “fall back” and “sink” to the level of their values, training, and preparation. 

Given that most managers are incompetent and that our world is becoming increasingly volatile, uncertain, complex, and ambiguous, the problem becomes clearer: overwhelmed and incompetent bosses are reverting to and doubling down on a counterproductive style of management—a remnant of the early Industrial Revolutions, known in the leadership literature as “Dominance.” 

Dominance-Oriented Leadership

Dominance-oriented leadership it’s a one-size-fits-all style of management which relies on force and intimidation to induce fear. Below are common traits of this leadership style:

  1. Assertive
  2. Highly Directive
  3. Top-Down
  4. Traditional
  5. Command-And-Control
  6. Hierarchical 
  7. Coercive
  8. Intimidating
  9. Punitive
  10. Authoritative

Dominance-oriented leaders are inclined to enjoy giving orders, intimidating subordinates, overly relying on reward and punishment, and prioritizing the organization’s needs over those it employs. The one critical problem with this management style is that it doesn’t replicate.

And so, in the truest sense of the word, it’s an unsustainable approach to managing. After all, think back to the bad boss you visualized earlier—you’re actively choosing not to replicate their management style.



Dominance-oriented leadership

Caught up in Dominance cycles, most companies—whether on the S&P 500 or FTSE Eurofirst 300—haven’t committed to comprehensive measures to fight climate change, such as running net zero carbon operations. Staring into the abyss of time, afraid, the managers of these companies are making the grave mistake of prioritizing greater profits.

All the while, they’re exacerbating the very problem that will upend their business. Intimidation can beget compliance, but relationships based on Dominance are less stable. Getting out of unstable survival mode involves looking to the opposite approach to Dominance, namely, Prestige. 

Prestige-Oriented Leadership

This style of management involves the sharing of expertise or know-how to gain respect. Prestige-oriented leaders are servant leaders who care about relationships with their team, avoid intimidation and coercion, strive to be role models, use soft power to influence subordinates, and create more organizational leaders. Below are common traits of this leadership style:

  1. Transformational 
  2. Humble
  3. Non-Directive
  4. Empowering
  5. Egalitarian
  6. Inspiring
  7. Generous
  8. Admired
  9. Supportive
  10. Authentic

Benefits of Prestige-Oriented Leadership

Compared to Dominance, Prestige is more tedious to manifest, for it requires substantial tailoring to the needs of individuals. But the caveat is that of the two, Prestige is the only style that is widely and willingly replicated. In this way, it’s the only sustainable option. But putting aside the question of ease, Prestige is actually better for business.

A ten-year examination of stock market returns for the 20 best-ranked public companies on Glassdoor reveals that 60% have beaten the S&P 500, and 91% have had positive returns. And behold, Fortune’s Top 100 best companies to work at also outperformed the S&P 500 over the past decade. The top company, Adobe, beat the market by 9.5% each year and returned 1762% during this time.

And according to the American College of Occupational and Environmental Medicine, companies that promote a culture of health, safety, and well-being also outperformed the market by 2% per year, with a weighted return on equity of 264% (compared with the S&P 500 return of 243%). It turns out that exceptional places to work create outstanding returns for their shareholders. So while Prestige may be a more challenging path to the top, it’s absolutely worth doing.



Prestige-Oriented Leadership

Dominance or Prestige?

Are there situations where a Dominance-oriented leader performs better than a Prestige-oriented leader? Yes. A top-down, dominant approach can be efficient when a solid plan is in place, and a highly coordinated, unified effort is needed to deliver it.

A dominant leader can make each part of a company adhere to clearly defined actions, and can save time through quick and firm decision-making. But all this assumes that there is a healthy relationship between managers and employees, and that good communication and buy-in have taken place.

Which, as we know, is simply not the case in the modern workplace. One way to rethink the Prestige-Dominance dichotomy is as a permission-based blend—the privilege of successful Prestige orientation is the earned ability to switch to Dominance as the needs of the organization and its people change. 

For Human Resources and Learning & Development professionals, the business case is clear. And it needs to be communicated to managers across the organization—potential managers, newly minted managers, and C-Suite alike: lead with Prestige. Early in my career, a mentor advised me that a leader’s true purpose is to “develop new leaders.”

A coordinated contingent of Prestige-oriented leaders is critical to navigating our world away from impending environmental catastrophe and toward a sustainable positive-sum future. And this global effort depends on every organization’s ability to develop new leaders. 

Hamza Khan

Hamza Khan

Keynote Speaker

Hamza Khan is a best-selling author, award-winning entrepreneur, and globally-renowned keynote speaker whose TEDx talk “Stop Managing, Start Leading” has been viewed over two million times.

The world’s leading organizations trust him to enhance modern leadership, inspire purposeful productivity, nurture lasting resilience, and navigate constant change.

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Greater employee retention through generational diversity

Over the last few decades, generational diversity in the workplace has increased significantly. The youngest Generation Z brings in new energy, while the oldest – Traditionalist Generation – often clings to used structures.

Sometimes it can be difficult when different generations work together. Keynote speaker Karen McCullough talks about such generation management in an interview.

Short fact check

Pew Research Center defines the birth years of generations:

Traditionalists: 1928-1945
Baby Boomers: 1946-1964
Gen X: 1965-1980
Millennials: 1981-1996
Gen Z:1997-2012

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Being a servant leader – Servant Leadership

Being a servant leader – Servant Leadership

by Gunther Fürstberger | Feb 14, 2023 | Leadership Impact, Leadership Tips, MDI Inside | 0 comments

Being a servant leader

“Servant Leadership” is a concept by Robert Greenleaf that describes the manager as a servant to their employees. What this model is specifically about and what its strengths are, you can read in this article.

The origin of the approach

In Hermann Hesse’s “Morgenlandfahrt”, a spiritual seeker experiences how the disappearing servant turns out to be a true leader in retrospect. This story inspired Robert Greenleaf to develop his life’s work, the concept of serving as a leader. A number of well-known authors and CEOs of companies such as Starbucks, Nordstrom and SAS followed him in designing and practicing servant leadership.

A talent management executive at a large international corporation told me one day, “I don’t believe in the honest intent of servant leadership. To me, it seems more like a motivational ploy. In the end, the ‘servant leaders’ earn a lot more than the employees they seem to serve.”

 

Trick or mission? Manipulated motivation to high performance or the revolution of the working world that turns the hierarchy pyramid upside down?

Managers, especially CEOs, should ask themselves what kind of leadership culture they have and want in their own organization.

The purpose of leadership

What is the purpose of leadership? This is a good question to start a reflection on developing your own leadership culture. The why question is closely related to the „for whom” question. Which stakeholders in an organization are given priority? The shareholders, the employees, the customers? Customers, in a broader sense, can also be certain groups in society or even parts of nature for which the organization wants to create added value.

Focus on employees

Servant leadership is usually associated with a focus on employees. Greenleaf sees, among other things, employee growth as a hallmark of servant leadership. “Serving the community” is also found as a frequently mentioned goal. And then there’s the aspect of getting employees to perform at their best by serving. Shareholders understandably feel comfortable with the latter.

The desired leadership culture is derived from the purpose of the organization. If the purpose of the company is to maximize profit, then human resources tend to be seen as a mean. And servant leadership will consequently be a downstream mean to promote the purpose of “motivated, high-performing human resources.”

While the upside-down pyramid is well suited to question a culture of exploitation of the powerful over the subjugated that has been going on for ages, contradictions arise if taken to its logical conclusion. Institutionalized leadership almost always goes hand in hand with power, e.g. with the right to impose positive and negative sanctions. This makes it easier to achieve organizational goals and often also benefits the led, e.g. through higher security.

However, the history of mankind until today shows that power has often been used for one’s own advantage. And in order to maintain the privileged position of the leadership group, subtile and brutal suppression mechanisms have been used.

Leadership Development

For the common good

The inverted pyramid thus also expresses the desire that leadership does not exploit but support and that the leader put others before themselves. For at least 2000 years there have been rulers who have called themselves servants, from Marcus Aurelius to Joseph II, Frederick the Great to Queen Elizabeth.

In this way, they have expressed how they interpret their privileged right to rule for the common good. Even if they did not donate their castles to the poor, they may have done more for the wellbeing of the people with the servant attitude than absolutist rulers with a “the–state–is–me attitude.”

There are also good arguments why a radical reversal of ruling relations and privileges would not be fair: Those who make an above-average commitment to goals that benefit others should also be entitled to a reward. This commitment can be in terms of time, talent and resources. However, it is questionable whether this justifies a CEO earning 147 times as much as a typical worker in Germany and 300 times as much in the USA.

In addition, there is the legal perspective with the legally anchored liability of the CEO. Someone has to take personal responsibility for wrong decisions and this is normally the managing director registered in the commercial register. Payment defaults or accidents can result in liability. Who bears this liability risk if we turn the pyramid upside down?

In the end, it will probably remain with individuals and they must then also have the possibility to implement decisions. We can flatten the pyramid, we can supplement it with self-coordinating networks, we can develop an empowerment culture – employees and managers can service each other – but ultimate, personal responsibility will remain.

Servant leadership in companies

Companies associated with servant leadership include Nordstrom, Fedex, Starbucks, Southwest Airlines (Herb Kelleher), SAS, and Marriott. Let’s look at what each of these companies value. In most companies, the positive impact of employees being treated well is seen in good customer service:

  • For example, the first stated corporate value at Marriott is “Put people first.”
  • Nordstrom also placed a lot of emphasis on customer service 120 years ago. “Do whatever it takes to take care of the customer”. (John Nordstrom 1901). This attitude has been passed down generations in the entrepreneurial family and has been enriched with humility and employee service orientation.
  • FedEx has built a servant leadership culture. FedEx believes that engaged employees – individuals who trust the organizational goals and have a strong desire to contribute – will implement the organizational plan and ultimately ensure the success of the organization.
  • At Starbucks, long-term CEO Howard Schultz emphasizes the company’s purpose: “Servant leadership is about serving a higher purpose, and when that higher purpose is recognized by everyone in the organization, everyone is indeed a servant of that purpose.” Kelly Creighton describes the organizational culture at Starbucks as: “A culture of belonging, inclusion and diversity.” It also always puts its employees first and encourages everyone to grow into leadership roles within the company. At Starbucks, employees are encouraged to build strong relationships with each other and collaborate and communicate openly. Employees can ask questions and reach out to their supervisors. Ultimately, Starbucks takes the view that “how you treat your employees is how you treat your customers.“
  • Jim Goodnight, founder and CEO of SAS says “Treat employees as if they make a difference and they will.”
  • At Southwestern Airlines, the empowerment idea is especially held dear: Colleen Barrett, former president of Southwest Airlines, explained, “Our whole leadership philosophy is very simple: treat your employees right, and good things will happen.” She assumes that Southwest Airlines has created policies, procedures and rules, but ultimately empowers its employees to use their own common sense and good judgment when needed. It trusts its employees to do the right thing when necessary and does not reprimand them for doing so. For example, if a stranded customer needs a hotel room, employees are empowered to help them if they can. And when dealing with the public, employees are encouraged to find the best solutions and approaches that make sense for the situation at hand.
hackatons create innovations and ideas for leaders

Conclusion

The term “servant leadership” could be misunderstood in the sense of continuity and exclusivity. I.e., that the manager always acts as a servant to the employees and that therefore, there would be no room for the manager to be supported by the employees. This seems onesided and unrealistic. Robert Greenleaf also called his first publication “The servant as leader” and wanted to emphasize that the desire to serve should come before the desire to lead.

Just as the communist countermovement to industrial age capitalism did not yet represent the final chapter of economic history, servant leadership also offers itself more as a line of thought and less as the terminus of a leadership culture. If we understand leading and serving as polarity, then this makes it possible to find a suitable balance for the situation in the interaction between employees and managers.

Similarly, the misunderstanding would be that serving goes in one direction. Namely, that only managers should serve their employees. Transactionally, this would be a reversal of the parent-ego to child-ego relationship. Traditionally, leadership has been seen mostly patriarchal and sometimes matriarchal, i.e. the leader has to care for the children similar to parents, but can demand obedience.

The inversion of the parent-child relationship does not really work. The relationship of two adults who support each other would be more constructive. Especially nobles and rich people have servants. The term servant indicates a subordinate position. This could be resolved in a contemporary understanding of leadership: Employees and managers support each other, partly in different ways and with different means, but at eye level, with mutual appreciation.

“If you support your employees first, they will support you.”

This application of the reciprocity principle will often bring the desired, voluntary support from employees to leadership. But there is a more enduring motivation than this psychological barter: when leaders and employees pursue common goals or a shared mission out of inner conviction and support each other to the best of their ability.

Ultimately, it is the intent of the servant leader that makes the difference: Do they care at least as much about the well-being of others as they does about their own, or do they just want to make employees feel serviced so they will work harder?

The term “servant leadership” is misleading to many. But undoubtedly, one of the most important tasks of leaders is to support their employees. This starts with perceiving and listening to what the employees need from the leader.

In summary, the main meaning of Servant Leadership could be seen as a pendulum swinging away from autocratic and exploitative leadership, but not as a final leadership concept. Rather, partnership-based cooperation at eye level between employees and managers is more suitable for this in order to pursue the jointly shared corporate mission.

Sources:

• https://www.manager-magazin.de/unternehmen/karriere/ceos-verdienen-300-mal-so-viel-wie-arbeiter-a-1041409.html

• https://www.amazon.de/Spiele-Erwachsenen-Psychologie-menschlichen-Beziehungen/dp/3499613506

• https://www.amazon.de/Die-Psychologie-%C3%9Cberzeugens-Robert-Cialdini-ebook/dp/B01MUDPFCC

• https://www.marriott.com/about/culture-and-values/history.mi

• https://hrdailyadvisor.blr.com/2018/06/01/5- real-life-brands-embody-servant-leadership/ • https://www.pallikkutam.com/edu-news/servant-leadershipstories#:~:text=FedEx%20 believes%20that%20engaged%20employees,and%20ultimately%20ensure%20organi-

zational%20success.

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.

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How to strengthen social capital in the workplace

How to strengthen social capital in the workplace

by Jana Wölfl | Jan 26, 2023 | Digital Transformation, Leadership Impact, Leadership Tips | 0 comments

Why do you like your job?

Is it the work, the salary, or perhaps the interaction with your colleagues? 

The latter is being neglected in many companies, especially during the pandemic. Until then, people had lunch together from time to time, chatted briefly at the coffee machine or worked together on projects.

How to foster exhange and strengthen social capital in the workplace.

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Our journey of becoming CO2 neutral – reasons and tips

Our journey of becoming CO2 neutral – reasons and tips

by Alexandra Eichler, Gunther Fürstberger | Dec 10, 2021 | Leadership Impact, MDI Inside | 0 comments

MDI is CO2 neutral

The pandemic has made us more thoughtful.

Adult education in presence is connected with traveling. Often these are only short distances, but we also had seminar weeks where participants came together from all over the world. With the Pandemic Lockdowns, we switched to virtual delivery and realized that continuing education is fun and effective this way, too. Of course, it’s not quite the same. Still, we know from several of our customers that they want to continue delivering our programs virtually in the future.

If we conduct about half of the measures online, then

 

  • we reduce the CO2 footprint,
  • we save participants’ and trainers’ travel time
  • the company saves travel and hotel costs
  • we still get the opportunity to meet in person from time to time, exchange ideas, network and have great experiences in the real world.

We don’t want to say goodbye to travel either, as travel itself is an important learning tool. But we are striving for a balance between being present and online. It’s win-win-win! 

For the main lever travel, we want to make sure that

  • when choosing the means of travel, we give higher priority to the ecological impact than to personal convenience, e.g. public transport whenever possible.
  • the location of the seminar is deliberately chosen in order to optimize the average travel time of the participants.
  • the relation of travel expenses to implementation time is taken into account, e.g. a 2-day module instead of 4 half-days. Or if it has to be half-days, that these are, if possible, arranged in such a way that the trainer can supervise several groups one after the other.

Online meetings also cost energy and cause a CO2 footprint

but significantly less than most face-to-face meetings. While energy use could be reduced by switching away video, we strongly discourage this, at least for seminars.

Good video and audio transmission is what makes online seminars a truly effective alternative and prevents unnecessary travel. But here, too, we see a few levers we can pull:

Tips for hosting more sustainable online meetings

 

  • Video quality does not have to be excessive.
  • People who are in the same office can get together in one room and have a hybrid conference with the online participants.
  • The choice of technology has a massive impact on energy consumption: using a fiber optic line is several times more environmentally friendly than using 3G mobile Internet, for example.

Despite all efforts, MDI produces an annual CO2 emission of 119 tons.

To neutralize this, we support the following projects

  • We have neutralized our greenhouse gas emissions by purchasing certificates from the “VCS & CCBS Forest Conservation Brazil” project. Here we support the strict monitoring of the management of forests in Para.
  • In addition, we also wanted to do something at our site. So we also signed a bee patronage and are privileged to enjoy the honey of our bees as well.

MDI’s vision is to work on a sustainable leadership culture for a better world.

For us, sustainability includes several aspects, but ecology is a very central one. Growth can no longer be the main paradigm of economic activity. Renewable resources and the calculation of long-term environmental costs should be natural components of any corporate strategy.

As an executive development institute, we see ourselves as having a special responsibility here. In the sense of Walk the Talk, CO2 neutrality is actually an overdue requirement for us.

Authors:

Gunther Fürstberger

Gunther Fürstberger

CEO , MDI Management Development International

Gunther Fürstberger is a management trainer, book author and CEO of MDI, a global leadership development institute and managing director of Metaforum. His core competence is leadership in the digital transformation. He gained his own leadership experience as HR manager of McDonald’s Central Europe/Central Asia, among others.

  • LinkedIn
Alexandra Eichler

Alexandra Eichler

Senior Project Management & Management Assistance & Office Management

Alexandra Eichler  is not only a Senior Project Management, Management Assistance & Office Manager. At the same time, she is passionate about sustainability and demonstrates it throughout the MDI office. She has led the major Co2 neutrality project and completed it at record speed, setting many steps towards a more sustainable mdi.

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