Archiv der Kategorie: Management

Here you find topics like planning, organization and leadership.

Glow without substance

As virtualization progresses, the qualities of things, facts and, above all, people become more and more important. The selection of new employees, whether executing or executive, is becoming increasingly difficult. In advance it is only possible to assess to a limited extent whether the respective person fits into the company, the team or a task. If then the first selection is made by an area that has little knowledge of the daily task, decisions are made based on formal criteria that have little to do with the actual business. In the long term, it is more effective to leave the choice to the departments, which have the experience, know the different contexts and, above all, should get their personal impressions of the possible new employee. Who still believes in the copied CVs based on pertinent cook books, which consist of quickly made degrees plus many years of practical and international experience plus pronounced social commitment? This self-staging creates a glow without substance.

This substance less glamour does not have to artificially grind away corners and edges. Sometimes it is better to show profile, to have soiled oneself at work in order to come across more credibly on the basis of the scars of one’s own actions.

  • Personal glow
    With the introduction of the school and university system, the traditional learning styles, the long-standing apprenticeship as trainee and journeyman, were expanded with scientific study and research. The real goals of these learning systems were to transfer and anchor knowledge. The most important aim was to actively get to the bottom of the topics. Due to the increasing importance of a factual assessment, the focus of the evaluation has been shifted. A high score suggests appropriate skills. A clever strategy and a little luck in the tests is enough to pass. And this, although practical knowledge would be better in everyday situations.
    The personal appearance is better polished up by failures and realistic responsibilities without a gigantic budget, than by pretentious presence.
  • Entrepreneurial glow
    Other areas of the business also have certifications to prove their capabilities. With the appropriate certificates, customers are supposed to gain confidence in order to decide in favor of the according offer. Today, these proofs range from customer ratings, the so-called likes, to official certifications and frameworks such as ISO 9000 for quality management, ISO 27001 for information security or COBIT for IT governance. While these certifications were originally intended to reflect a company’s current status, people affected have learned to prepare for these exams to be able to pass. The real purpose of a neutral assessment of the real abilities gets lost.
    It becomes more important to prove with real-life examples that you can practically master your business, and not just to shine with a certificate that everyone has.
  • Borrowed glow
    If direct evidence of the reputation is missing, then only indirect signs remain, which are generated above all by ambiguous statements. The protagonists achieve this the easiest by mentioning and citing competent sources. For this reason, people and companies like to adorn themselves by quoting prominent thought leaders. In doing so, they implicate an appropriate mindset that makes inattentive target groups believe that the values described are important to them. This can be boosted by personally integrating or at least meeting the mentioned celebrities in an image-effective way. Within the target group the assumption gets triggered that you need to have special skills. On closer inspection, this type of indirect use of external appearance happens on a daily base in publications without the target group noticing the manipulation. This adornment with borrowed plumes needs nothing more than a large enough budget.
    If you want to take advantage of the experiences of others, you should seriously integrate them into everyday life and implement their ideas consistently and not just shaking hands media-effectively.

Regardless of the way reputation is built, it remains nothing more than an indicator. The actual efficiency only becomes apparent in day-to-day practice. Since it is not possible to see it in advance, on the one hand, the observers must be always aware of the risk of possibly being only attracted by a glow. On the other hand, individuals and companies must not rest on their laurels, but have to reprove it every day. Who is in competition is like someone who rows against the current. As soon as you stop rowing, you fall back. Reputation must be renewed without ceasing.

Bottom line: It is becoming more and more important to find new approaches in order to be able to recognize performance and its development potential in advance. Direct certification is only partially suitable for this, since the candidates prepare opportunistically in advance for passing an exam – not for acquiring knowledge. Although the indirect indicators generate evidence, they do not allow any real insights about the know-how and behavioral repertoire of those affected. The information society needs a new approach, in order to be able to recognize the glow without substance.

ProCons of networks

Increasing volatility, uncertainty, complexity and ambiguity (VUCA) can no longer be mastered with the rigid structures of the past. Collaboration takes place across borders, wherever you look. The related structures are constantly changing and subsist on self-organizing actors who build, use and eventually resolve the necessary relationships. The result is a more or less dense network. Aside from today’s needs, where everything is just one click away, there are some arguments in favor of and against the use of networks.

The following ProCons affect not only networks but all types of communities.

Pros

The benefits cover more than just the economic interests of the companies.

  • Competence advantages
    The network draws its strength from the purposeful connection of resources and capabilities. The participants‘ intrinsic motivation provides the network with a long-term advantage ahead of other forms, which on the one hand require a lot of setup time and on the other hand never have comparable access to this amount of competencies.
  • Information advantages
    The actors provide a lot of information. This includes experience and knowledge about different markets, customers, products, technologies and, above all, business processes. By sharing this information (push vs. pull), they reach all network participants at a relatively high speed.
  • Resource advantages
    The actors already provide a variety of resources – material and immaterial goods and especially people. Contrary to other forms of organization, the network offers an adjustable openness that makes it possible to expand resources faster. Just the use of these resources of the actors provide means that otherwise would have to be procured with much effort. In addition, this tool is usually better suited that is brought by the craftsman.
  • Social advantages
    Getting to know like-minded people is a huge advantage for the actors. The sense of community offers an environment in which you can expect more pleasant working conditions and a trustworthy cooperation due to the same interests.
  • Economic advantages
    Looking at the entire network, there are many savings for the company. Cost advantages arise when the actors already bring additionally to their commitment many resources that do not need to be purchased. The combined competence accelerates the business and reduces the risks. Practicing self-organization in a network avoids delays caused by a hierarchical structure with its long decision-making and communication paths.

Cons

Against networks speak especially apparent extra efforts, unpredictability and the difficult control.

  • Time
    Even with all the advantages, networking requires active involvement of its members. The open procedures and the lack of centralized control require other efforts of the participants, which are perceived at first glance as additional expenses. However, much higher overall savings can be made for the company.
  • Redundancies
    Even with a lot of engagement in disseminating information, there can be more double work in the self-organized network than in a tayloristic organization. The lack of control can lead to a competition for the best idea that would be wasteful.
  • Increased communication effort
    The multiplicity of actors increases the coordination effort, which can even not be avoided with agile approaches. New insights and experiences simply have to be shared, absorbed and processed. This effort is the price for a lot of advantages.
  • Cooperation issues
    Of course, because of the variety of characters, there will not only be sympathy, but also antipathies that can burden collaboration and trust and eventually lead to an increased need for mediation. This makes team building an important exercise.
  • Lack of control
    A strong driver for the formation of a network is the intrinsic appeal for each participant. Leadership could quickly disturb. At the same time, a network also needs a direction. Without centralized control, the network might take longer to reach an agreement.
  • Information loss
    The open structure of a network and the frequent participation of individual members in different networks automatically lead to the leakage of information. Lack of secrecy could endanger the network.

Bottom line: Although many aspects speak against creation and participation in a network, you have to face the fact that a VUCA world creates new conditions that function in a way that cannot be covered by traditional approaches. The competence, information, resource social, and economic advantages are arguments for the use of networks. At the same time, appropriate measures have to minimize the risks.