1.2.1 The Paradoxes of Our Time
“Progress has brought us profit and efficiency, but the price we have to pay is a loss
of meaning.” This is the balance drawn by Charles Handy, the founding father
of the London Business School, in his book “Die Fortschrittsfalle.” Only a new
understanding of work and organizations can restore meaning to a world that is
governed by nine fundamental paradoxes. These paradoxes describe in a simplified
and caricatured way our modern working world: its divided and contradictory
nature, its dynamics and complexity. At the same time, they reflect the demands
placed on modern leaders (see Handy 1995):
- The paradox of intelligence:
Employees are considered the most important resource, and intelligence is the
new form of property. However, this property can neither be purchased nor
sold; as such, the most important means of production lies in the hands of the
employees. - The paradox of work:
Most organizations respond to the challenge of efficiency with dismissals or
wage cuts and thereby deprive themselves of their very basis: motivated brain
power. Some say performance must come with a high price, while others believe
it is priceless and that top performers cannot be lured by money. - The paradox of productivity:
Productivity typically means more work with fewer people. But there is a limit to
people’s ability to perform, beyond which productivity begins to decrease due to
the strain. - The paradox of time:
Time is a scare commodity as well as a crucial factor in staying competitive. The
issue of money also plays a role in this paradox. Some spend money in order to
save time, while others invest time to save money. - The paradox of wealth:
In affluent societies, birth rates are declining, as a result of which there will be a
shrinking customer base in the future. Affluent countries must reach out to
poorer countries that are simultaneously their low-wage competition in order
to set growth in motion and cultivate new consumer bases. - The paradox of organization:
Leadership no longer focuses strictly on the local or national level, but must
compete on a global level in order to prosper. Employees are expected to be able
to work both independently and together as a team. The challenge for today’s
leaders is to delegate and direct their personnel more efficiently and effectively;
for the leaders of tomorrow it will lie in guiding their company on new courses in
the global business world. - The paradox of aging:
This paradox involves newer generations’ tendency to differ from the preceding
generations, which stems from their desire to set themselves apart from previous
generations. The behavior of each following generation will then correspond to
12 1 Leadership in the Twenty-First Century Leadership in the Crisis?