A NEW MINDSET

Certainly not. Permanent change is guaranteed – and with it crises. This will require agility, the ability to learn, and, especially, a new culture of participation. In the future, decisions will increasingly be made based on the operational situation. This means the patriarchal management model will eventually give way to a more holistic approach. And this will lead to a new form of cooperation. The future holds more hybrid teams that make use of digital platforms, known as collaboration hubs. In my opinion, this represents a huge opportunity for INDUS, where companies are already cooperating on cross-sectional topics.

Another field of activity will be new business models and innovative IT structures. The way to new business models is also not necessarily characterized by disruptive change, but the recombination of existing approaches, such as machines as a service or pay per use. Cooperating with start-ups could be an excellent way to speed up this progress or to tap into new areas. In order to establish new business models, the IT structures will have to be harmonized.

I agree with this assessment 100% and I also believe they are some of the most important tasks our Group faces. This is why we are addressing these topics with the managing directors and including them in our strategic initiatives. I’d also like to add the aspect of networking to the topic of collaboration. Functioning networks play a vital role in successful business development in my opinion – both within individual companies and the Group, as well as with customers, suppliers, universities, research institutes, and start-ups. So we are focusing especially on promoting the establishment of networks.

And, to touch on the first topic of new leadership again, I believe employees also have expectations of companies nowadays that cannot be satisfied with the patriarchal model. In the competition for the best candidates, the incentive to implement modern leadership and collaboration models is high. It allows SME companies to secure their status as an attractive employer.

It used to be that leadership meant ­developing expertise, expanding this ­expertise, and then passing on that knowledge. This command-­and-­control approach belongs in the past. Managers in the 21st century don’t have to have all the answers at their fingertips. Considering how ­complex the world has become, it isn’t even possible. It is now much more important that they learn quickly and comprehensively, and ensure that their employees do the same – by pointing them in the right direction and helping them to fulfill their potential. Today’s successful manager plays more of a coaching role. They point out possibilities and maintain an atmosphere in their team of appreciation which in turn provides space for energy, creativity, and an appreciation for learning. And it is exactly here that I see a need for action in one or two small and medium-sized enterprises.

This also applies to the support we offer our portfolio companies. We have to find the right balance when it comes to what and how much the holding company does and how much the portfolio companies have to rely on their own initiative. It continues to be our aim to have our portfolio companies managed holistically by our local managing directors. We can point the way. We can provide the tools. We can establish networks. But the real work takes place in the portfolio companies themselves – where the most extensive market knowledge lies. This is the only way in which we can lead a number of different companies in a number of different markets.

Here, too, SMEs tend to have the advantage. Because dealing with the unforeseen is in their DNA. However, they can always improve their resilience – for example through diversity. A diverse workforce can develop a much finer attunement to the market. In the financial crisis of 2008, for instance, we were able to witness what happens when everyone is looking in the same direction. In contrast, different perspectives help companies to draw the right conclusions faster in complex situations. This contributes to the ability to forecast and react, develop new business models, and to master change management.

I think crises often serve to ruthlessly expose the failures of the past. Which external circumstances could threaten my business? Which business operations are especially vulnerable to crises? If you know the answers to these questions it is often not difficult to stabilize the business with simple management tools such as Six Sigma or Business Process Reengineering, and thus be better prepared for the unforeseeable.

In all of the topics that we have discussed – what is my analytical approach, how can I identify critical processes, which tools should I use – we must not forget the people involved. In times of constant crises, such as we are currently experiencing, it is a huge challenge for the management to maintain a positive mindset within the organization. But it is also exactly what is needed so that everyone is able and ready to act. People need a certain amount of security. This is the delicate balance that the management needs to strike.

I don’t think these things are mutually exclusive. One strength of SMEs is continuity and durability. This allows innovations to reach maturity. The challenge lies in achieving a balance between the core business and daring investments.

The managing directors play a decisive role here. They can consider themselves as catalysts and initiate change processes at an early stage, eliminate mental blocks, and actively include employees. This in turn provides their company with an advantage. If they hesitate or even block and turn their position into the bottleneck, then they are making their business vulnerable.

Three important aspects are: A company must get all employees on board from the beginning. Change processes can only start with teams. Everyone needs to see the roadmap, know the destination, and understand what the plan is for getting there. Secondly, it is important not to take on too much. I rarely come across companies who have taken on too little. The majority throw everything at the wall at once. I prefer the magnifying glass fire method – focusing all of your energy on one topic. Thirdly, the company should be on the lookout for quick wins. It sounds trivial, but it is important, because this is how you manage energy in the change process. If you need one and a half years to achieve the first success, all the energy will have evaporated. Changes must be visible so that they can be celebrated together. This creates new energy to help you keep going.