“shrink to a profitable size” prevail. The courageous motivational speakers have
grown silent as a general sense of crisis consciousness becomes widespread.
However, there are exceptions to the rule.
The valley of the tears the German economy now finds itself in after the New
Economy seems to have no end, weighing heavily on the minds of employers,
employees and investors, and practically immobilizing human resources develop-
ment in many enterprises.
Needless to say, it is hardly the ideal time to try to gain the affection of your
employees. However, there are no new ready-made solutions for leading in times of
crisis, which makes it all the more important that we rediscover the fundamentals.
Leading without the respect of your employees will not allow you to navigate your
company and employees through the crisis, not even with the most sophisticated
charts, rhetoric and HR management. Given the increasingly difficult conditions for
leading, the charisma of a manager has taken on new meaning. More is demanded
of leaders, who now more than ever are in the spotlight, simultaneously the har-
bingers of hope and the bogeyman.
In a study conducted at the Academy in 2003, 267 managers were surveyed
regarding their current working situations. The results indicated that 80% put a
special emphasis on soft factors (the keyword being “corporate climate”). For the
majority, the manager’s “people skills” are more crucial than his or her industry
know-how and technical expertise. Approximately 60% think that their require-
ments have changed during the course of the economic downturn. Half of the
managers claimed that employees’ fear of losing their jobs makes everyday leader-
ship more difficult. Nevertheless, 88% of managers with personnel responsibilities
expressed satisfaction with their achievements as managers. We should however
bear in mind that this is the self-perception of the managers, which – as will
be shown – can deviate significantly from the perspectives of their employees
(see Academy Study 2003).
Especially when the wind of the economic crisis is blowing hardest, leaders are in
demand – even if strict numbers, crisis meetings, financial balances and pressure
hardly leave time or space for genuine relations management. The argument: “Once
we are through this, we will have more time for discussions and contacts again” is a
dangerous killer phrase, because there might be no “later.” The trust lost by adopting
this attitude towards coworkers and customers is infinitely difficult to recover.
The result: German managers consider their companies to be in a general
economic crisis, yet no one speaks of a general crisis of leadership. To a large
extent, they agree that only authentic leadership can be successful leadership. The
manager is not only important for the role he or she fulfills, but also important as an
individual. Whoever wants to bring their company and its people through the crisis
must commit to two maxims. Firstly, appreciation and respect cannot be reserved
for when things are rosy, but are also and especially indispensable in times of crisis.
And secondly, leading is more than delegating and monitoring tasks; it presupposes
an individual with a dynamic personality capable of moving the workers under it.
1.2 Through the Valley of Tears 11