Note: Exaggeration is a rhetorical device ;-)
I was lucky. 30 years in the financial industry and I have experienced some good bosses and teams. But especially after the global financial crisis of 2007-2008, I made a few observations that I would like to talk about briefly.
Let's turn back the clock for a moment. Before 2007, the financial markets were moving more or less sideways to upwards (financial analysts will forgive the inaccuracy). Banks were making good money, customers were happy.
Then the global financial crisis.
And markets that moved sideways and then downwards.
And banks initially had no strategy for dealing with this situation. Because they hadn't anticipated the scale of the crisis and had no adequate strategies in place. They tried to maintain margins and still satisfy customers. It was exciting to be there and observe this.
I would like to briefly comment on 2 observations.
Dealing with the crisis - mindset and neural connections
People function in everyday life on the basis of ‘wired’ behaviour. Our brain stores behaviour in the form of neuronal connections that are called up. This is the only way we are able to cope with our complex everyday lives.
For a long time, we had no ‘programmes’ for this crisis. We first tried to overcome the crisis with old behaviour.
We had a different situation during the pandemic. The restrictions have partially undermined ‘wired behaviour’. In 2020, banks were able to react much faster with new solutions. Because they had to.
This shows that people can be able to learn new behaviour quickly if the ‘crisis’ is big enough. Exciting, isn't it?
But does it always take a crisis?
In times of digitalisation, AI etc., this ability becomes even more important. Because we no longer have the time to form ‘neuronal programmes’ that last for a long time. A new skill is required in leadership. Namely, to lead a team, an organisation, in such a way that it is able to deal with ongoing changes. And with a growth mindset.
But we don't have time to develop this new skill. After all, we have to earn money!wir haben ja keine Zeit, diese neue Fähigkeit zu entwickeln. Denn wir müssen ja Geld verdienen!
Umgang mit Ängsten
IIn times of crisis and uncertainty, fears have inflation. Not that we don't have fears in ‘normal’ good times. But when the sun is shining, there are simply fewer triggers that set our fears in motion. Fears have the function of warning and protecting us from bad experiences.
We have been in a crisis situation in the financial industry since 2008. And we are experiencing enough trigger moments to set people's fears in motion.
At the same time, a culture of fear developed in large companies. ‘Join in or you won't get a bonus.’ Money as leverage, as a means of demanding expected behaviour. Other opinions that lead to creative solutions are not in demand. Upper management is in the same situation. They too are afraid. And are trapped in the system that they themselves have created.
And they don't talk about fear.
They would be perceived as weak. By the others.
Weak people don't get bonuses, don't get promoted.
They don't talk about fear. Not about their own.
Not about the employees'. Dulled.
To the point of burnout. Boom.
We don't have time for sentimentalism. Because we have to earn money!
Do you know that?
New management approaches are needed
So, here we are in 2024 in the post-pandemic era. AI is currently overtaking digitalisation. What's true today doesn't have to be true tomorrow. We are flooded with (social) media. Our attention span has been reduced to just under 10 seconds.
And managers are wondering why the management methods they have learnt no longer reach their employees. Of course, readers of this blog are always excluded ;-)
But what should it be like for leaders?
As a leader, I want to be myself and be true to my own feelings and fears. My spirituality should also have a place if it needs space. Without being discriminated against and ridiculed in the work environment. This is the only way I can lead authentically.
Be able to realise my own visions. Be able to contribute my own sense of purpose. I can also contribute my own ideas. Be creative.
I want to have time to respond to my team. To develop my team to its full potential. Provide them with the framework conditions they need to do so. To be able to engage with the people in the team. At eye level. Inspire them. Encourage them to make mistakes in order to learn in these fast-moving agile times. Reward them for development steps, not penalise them for mistakes.
From person to person.
And that is precisely why all economic goals are achieved together. More sustainable
But we never learnt that, did we?
That's right. That's why it's time now. Because otherwise we won't earn any money in the future!
Get to know the approach of Existential Leadership. It combines the ability to steer and manage a team/organisation in a targeted manner AND to reach out to and stimulate people.
For sustainable success across the board.
Book your free info session today.
Let's talk existential leadership!
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