alternatives. Questions must be asked and answered: What is the impact on
the customer? What is the effect on the competition? How will these decisions
affect the market development? Based on the answers to such questions, managers
determine the possible consequences of the courses of action and compare them to
the established goals. In practice, decisions are not always made based on logical
conclusions; social and emotional influences often play an important or even a
decisive role. In particular, group dynamics can influence decisions. Group dynam-
ics are comprised of the informal power structure and the relationships between
coworkers on the same or on different levels of the organizational hierarchy.
In addition, time pressure and incomplete information often interfere with the
ability to make quality decisions.
2.2.6.1 Decisions Are Decisive
A study released by the personnel consultancy Heidrick & Struggles revealed that
of 500 managers surveyed, 57% indicated that enjoying making decisions is the
most important characteristic of managers. 49% rated strong communication skills
as the second most important trait, while 34% ranked results orientation as the third
most important characteristic of managers. The readiness and ability to make
decisions and accountability were also identified as being important.
To reiterate, leaders still have one primary responsibility: to decide. After all
important viewpoints and opinions have been heard, after the critical factors are all
weighed, it is the managers’ task to make the final decision. Leaders must be
accountable for the decisions, responsible for their own actions, and accept any
unintended negative consequences. Leaders must be willing to take calculated risks
when necessary. Lastly, leaders must abide by their own good conscience, moral
principles and personal integrity. Unfortunately, the media report incidents where
managers fail with regard to the last aspect on an almost daily basis.
The management appraisals of the personnel consultancy Egon Zehnder Inter-
national have systematically examined the technical and leadership skills of top
German managers for many years. These top managers are praised for their
specialized knowledge, which is competitive on the international market. Yet
they are also criticized for their unwillingness to take risks. German managers
rarely dare to engage in new tasks and challenges. What they are lacking is an
appreciation of the big picture, along with strategic thinking. They also often lack a
sense of adventure – and the readiness to assume personal responsibility is of
precious little help when the general direction of the corporation as a whole is
wrong (see Wirtschaftswoche, August 21, 2003).
Above all, German managers are specialists. However, specialists are often
doubtful and do not hold on to bold visions. They tend to perceive errors or defeats
as personal failures, and therefore do not take risks. Furthermore, they are
imprisoned in hierarchies that stifle the progress of new generations of managers.
Unfortunately, not much has changed in this regard in the past few decades.
68 2 Occupation or Calling: What Makes for Good Leadership?