Gerd Gigerenzer
First of all, we should identify what kind of environment we are in. If we know all the possible alternatives, their probabilities and possible consequences, we are in the world of risk and can determine the optimal strategy.
If individual components are unknown, we are in the world of uncertainty (i.e., 90% of the time). Calculating the best strategy is impossible. We must find individual solutions to the problem.
In doing so, let us be guided by this trinity of steps to take in uncertain situations:
Marvin Siebert
Partner, Germany
With so many diversity and inclusion activities underway it is easy to assume that progress is being made. Then why are there so few women in executive positions?
The new McKinsey report “Win-win: How empowering women can benefit Central and Eastern Europe” examines the potential benefits of greater gender equality for businesses and society, identifies barriers to progress, and suggests actions that could unlock as much as €146 billion in annual GDP by 2030—an 8 % increase over a business-as-usual scenario.
In the seven CEE countries analysed (Croatia, Czechia, Hungary, Poland, Romania, Slovakia, Ukraine):
To find out why there are so few women in executive positions in CEE, the survey of approximately 3,000 employees in the region uncovered the following insights:
Ambition is not a challenge: Women are as ambitious as men, but they perceive more barriers to promotion. Men and women showed almost the same level of interest in getting promoted (57 % of women versus 56 % of men). However, 28 % of women said that their gender made it harder for them to secure a raise or a promotion.
Women blame themselves; men blame others: Women who thought they were unlikely to make it to the top said that it was because they lacked the necessary skills (43 %) or the right leadership style (38 %), or that promotions to top executive positions were not based on merit (33 %). A far smaller proportion of men said that they lacked the necessary skills for the job (8 % less than for women), and a much larger share said that it was because promotions were not based on merit (10 % more than for women). In other words, women are more likely to blame their own shortcomings for their failure to become executives, while men are more likely to blame the shortcomings of their company.
Unpaid work is a major barrier: Nearly 40% women provide daily unpaid care work (looking after children, the elderly, or people with disabilities). This is twice as many as men. Essentially, female employees are still working a “double shift”.
The COVID-19 crisis has created additional burdens on women: The increased burden has fallen disproportionately on women. 54% of women with children under the age of ten said the pandemic has made them more likely to consider scaling back on their paid work, compared to only 25 % of men.
Correcting this imbalance would tremendously benefit not only women in their careers and personal lives, it could have a potentially transformative effect on the economies of CEE.
Despite abundant evidence that gender equality in leadership is good for business, for an overwhelming majority of organizations advancing women into leadership roles is not a formal business priority.
One of the major and most complex challenges is to shift the underlying cultural factors. The McKinsey research highlights the need of the leaders of companies and public institutions to be visibly engaged in efforts to reduce the gender imbalance, rather than delegating this work to Diversity Officers.
But including men (holding 98% of CEO positions in CEE) in diversity efforts is not as simple as inviting them to a gender-equity event. Worldwide data from BCG shows that 96 % of companies with men actively involved in gender diversity initiatives report progress at all levels, compared to only 30 % of companies without men engaged. It seems intuitive that involving men would lead to greater results. Yet part of the challenge of getting men to join the efforts, according to BCG data, is that they tend to overestimate how well their company is doing in terms of gender issues.
To remove the barriers that hold women back at work, we have to acknowledge that the barriers exist. We need to realise that gender equality is not a “women issue”, it is a “leadership issue”.
The last thing that women need is men “rescuing” them or assuming the role of the workplace knight in shining armor.
Because men are in so many leadership roles, they have an enormous opportunity to accelerate progress. Men's voices are critical because of, not in spite of, their gender. When men speak up against gender disparities, they not only become visible as allies, they also raise awareness and acceptance about gender inequity as a shared problem, not a special interest.
Sources:
After two years of absence in light of the pandemic, September 2021 represents a new beginning for the city:
Milan is going through a slow and gradual reopening - it is seeking a new way of restarting.
Milan Design Week was one of the most anticipated design events to take place in Italy, and it has finally opened its doors to visitors. From the 5th- 10th of September, more than 350,000 architects, designers, artists, and craftspeople from all around the world had the chance to explore new design innovations and exchange ideas about interior design, furniture, and lighting. During the week-long event, Salone del Mobile, the renowned furniture and interior design event of the year, hosted local and international exhibitors at the Fiera Milano, Rho, along with interventions by world-renowned architects across the city.
New this year was the Supersalone, the special event of the Salone del Mobile, curated by the architect Stefano Boeri, that marks the restart in our
post-pandemic city. There were 425 brands in the four pavilions and 1,900 projects on display with spaces dedicated to companies and small consumers. The emphasis was on the smart component and the rediscovery of the home as an environment in which to live. There were 30,000 tickets only on the first day (the expectations were 50,000 for all six days), of which half were foreign visitors. And as we walk through the pavilions, the amount of visitors is undeniable.
"Milan is moving and, with Milan, Italy is moving again," said the Mayor of Milan, Giuseppe Sala. "It is an event that brings to the world the positive image of our city and the country. I welcome and endorse the invitation of President Mattarela, who I thank for his presence, to assume our responsibilities. Milan takes responsibility and wants to lead the restart.".
Guglielmo Sallustio
Partner, Milan
Many companies are poorly served by their current hiring practices – especially when competition for top talent remains so keen.
A recent study from research and advisory firm Gartner surveyed 3,500 managers and found that only 29% of new hires have all the skills required for their current roles, let alone for future ones. The shelf life of skills is becoming shorter and shorter. The research found that in key functions such as finance, IT, and sales, positions filled today will require up to 10 new skills within 18 months.
Globally, we are seeing some very specific themes emerge in 2021:
The pandemic created all sorts of disruption, from technology to corporate culture and a greater focus on diversity.
Many boards are focusing on the need to accelerate their digital transformation. and there is an increasing demand for business transformation specialists.
Virtual interviews have certainly cut the time it takes to interview and hire, but the hybrid scenario is here to stay where the first-round interviews can be done online, but further stages require in-person interviewing. However, virtual interviews can mean far less investment is required on the part of candidates, so it is vital to explore their true motivations for wanting a new position.
Companies also are giving priority to different values in their leaders, such as communication skills.
Sometimes it is good to hire for potential and transferrable skills not just specific industry experience. All too often firms simply put together a profile mirroring that of the person who has left, perhaps tacking on a few new requirements. At best, this highlights candidates who are prepared for yesterday’s challenges, but probably not ready for tomorrow’s.
Candidates are being increasingly selective about who they work for and companies are having to sell themselves to the candidates as much as the other way around.
There is an increased demand for leaders who can bring an organisation together with shared values and a mission worth pursuing, with transparency and responsibility, to present the organisation in the right way.
The freedom (or the imperative) to work remotely and to manage one’s own time has increased the effect that an individual can exert over the design of their jobs. WFH also has broadened the applicant pool - many employers are no longer limited by borders and geographies.
Executives who can motivate and lead their teams from afar will therefore bring a huge benefit to the stakeholders.
Finally, CEOs and Boards are very conscious of the need for contingency planning and lessons learned in anticipation of future events. Succession planning has become even more vital and so retaining key people is essential.
We are all living in a different world, and that world demands a new approach to hiring that can't be ignored.
Lorri Lowe
Partner, UK
For most employees, home office means having flexibility and freedom and many are reluctant to give these up. However, if studies by the Leibniz Centre for European Economic Research in Mannheim (ZEW)* are to be believed, they don't have to. Many companies plan to stick with the home office arrangements beyond Corona. In 2020, 64% of companies in the information economy wanted to continue to allow working from home at least one day per week. In 2021, it was already 74 %.
Leadership is becoming much more demanding
The fact is that in the last couple of years, many employees were allowed to work from home for the first time - and it was also a new experience for many supervisors. If it now becomes the rule that employees are predominantly at home, this also requires a rethink in terms of leadership. Leadership, already an often underestimated management discipline, becomes even more demanding. Without the chance encounters in the corridor and the short chat at the coffee machine, supervisors will have to invest more time in the future to stay in touch with their employees. Keeping this connection, even over distance, continuing to provide guidance and coaching requires a high degree of empathy. This is a quality that is much more in demand in Executive Search today than it was before the pandemic.
'New Work' means rethinking work
The much-used buzzword "New Work" tries to give a home to the megatrends in the world of work such as digitalisation, work-life balance, globalisation, etc. It is also a way of thinking about work in a new way. Those who understand how complex the topic is are rethinking work: starting with recruiting and training new employees, to leadership and employee retention. Employer benefits related to the office are losing importance - and also attraction.
What connects employees of a company, how do they become a team?
A practised corporate and leadership culture, shared values and work that is defined by the value delivered are becoming more important than ever. At the same time, the boundaries between work and private life are becoming increasingly indistinct. The risk of being overwhelmed, of restlessness is increasing, because work is omnipresent with the increase in home offices. This is yet another argument for the importance of empathic leadership.
Motivation and willingness to perform - the inseparable partners
Then as now, motivation and willingness to perform are closely linked. Employees want recognition for their performance. Company leaders have to ask themselves: How is it currently working in my organisation? How much room is there for new ideas? What about the culture of error? How regularly does exchange take place between managers and employees? Companies that see the current situation as an opportunity to take a fundamentally new look at the topic of leadership and to set fresh impulses in the design of their working and organisational world will benefit from this in the long term.
A plea for personal contact
Despite all the possibilities offered by new digital media today, I am convinced that inspiring leadership distinguished by empathy cannot do entirely without personal contact. For me, this is not a question of an old or new economy, or of trust and mistrust. It is therefore understandable that many companies specify at least one or two days of presence in the office.
Decisions in favour of a higher proportion of home office are mostly CFO-driven. Some companies have used the absence of employees due to the pandemic to sell office space. Such cost-driven decisions may be good for companies in the short term, but not in the medium to long term.
Motivation boost Corona pandemic?
In May 2020, the Fraunhofer Institute for Industrial Engineering (IAO) surveyed 500 companies from various sectors on the topic of working in the corona pandemic**. Around 70 % of the participants stated that they had largely switched to home office. Half assessed the performance of their employees to have remained the same during this time - 30% even recorded an increase in productivity. Decreased productivity mostly resulted from the reduction of working time accounts, short-time work, etc.
The study results also show what a strong impulse the Corona crisis gave to develop innovative solutions together - to overcome an existentially threatening situation together.
How long will this last?
When will motivation also decline at the home workplace and with it productivity and efficiency? To prevent this, leaders must now build up and expand their virtual leadership skills and find the right mix in delegation, team organisation, personal responsibility and duty of care. The experiences of the last few months are too important not to be used systematically.
*Source: "Home office in times of Corona", Leibniz Centre for European Economic Research in Mannheim (ZEW).
**Source: "Working in the Corona Pandemic - Towards the New Normal", Fraunhofer IAO in cooperation with the German Society for Human Resource Management DGFP e.V.
Matthias Zühlke, Partner
Hamburg, Germany
Laurence has joined Friisberg from Transearch International as a Senior Consultant and will be based in both Paris and Strasbourg where she will focus on Executive Search and Talent Management. With an extensive experience of Executive Search and Management Consultancy, with a range of clients, industries and geographies, she considers each project to be an exciting and complex challenge, combining active listening with a thorough understanding of the company culture.
She has in depth knowledge of the French economy as well as many international firms including those in Consumer/Retail, IT/Digital, Life Sciences and has worked with private clients, private equity firms and family offices for over 15 years.
A graduate of the Strasbourg School of Management, she has a specialisation in industrial project management, and has developed an interest in international culture and languages speaking French, English, German and Spanish.
Her career began as a Business Manager in an IT and engineering services company in Paris and then in Strasbourg, where her main activities were business development, recruitment and management of engineers, focusing on the success of clients' projects. She then moved into Talent Acquisition, developing a new subsidiary of an engineering group.
Laurence lives in Strasbourg with her family and is passionate about sport including figure skating, running, skiing, biking and travelling.
The tiptoeing phase is over, and the time to start building is now. An avalanche of stimuli is about to be triggered in the global markets, and this is also becoming apparent in businesses’ expectations of strong growth.
How did we get here?
When COVID-19 struck, development, consulting and purchased services were minimised and cash resources were secured. Now businesses once again have more leeway to implement their strategic plans. Success however may require new competences and new profiles – the CEO or the members of the management team may even need to be changed.
A new CEO from outside the family business?
Many external candidates have reservations about joining family businesses because every family business has its own unique cultural heritage - and this is often not openly discussed. The way the family make decisions, discuss matters, approach things and perhaps even how they operate outside formal structures - as well as all the unspoken values and powerful characters operating from within the family.
Recruiting a good CEO from outside requires the family to be transparent and clear about their organisation’s culture.
What do external candidates look for?
Someone joining a family business needs to be genuinely interested in its story. In addition to the business operations, there may also be something attractive about the family business’ values or ways of working. Some are looking for a lifestyle change and perhaps a company that commits to a long-term vision in their business operations instead of quarterly optimisation.
Family businesses must give external executives room to work and breathe.
How do we ensure compatibility with the family?
Objective methodology is vital.
Competency profiling and cultural profiling with candidates is at the heart of the process. It’s extremely important that the outsider is compatible with the culture of the family business.
The biggest risk is taken if an executive is recruited on the basis of a recommendation by an acquaintance or family member. A “good person”, as recommended by an acquaintance, may not necessarily work as the impetus for change - plus familial relationships can easily be ruined.
A successful management team
The COVID-19 era may also bring about a need to update the management team. Listed below are four typical situations where it’s a good idea to determine whether there is a need to make changes to the existing management team:
Mika Rossi, Partner
Finland
The phrase “Turnover Tsunami” is becoming slightly overused, but it is accurate - and there is no doubt it is happening.
I was speaking with a CEO yesterday about why he is experiencing such high staff turnover rates, even at senior level– and by that I mean voluntary departures and resignations.
Recruiting, hiring, and training is expensive - not to mention the time spent behind each phase of onboarding. More than that though, companies are potentially losing a valuable resource - someone with years of institutional knowledge.
Embrace the idea that business strategy and workforce planning will look different post-pandemic and to get started on identifying the talent, skills and roles that will be necessary to prosper once the health crisis passes.
Lorri Lowe, Partner
UK
Over the last two years, the Covid crisis has elicited stark changes within multiple business areas and Executive Search is no exception.
In my opinion, there have been two noticeable structural changes to our industry:
The wider use of video conferencing allows us now to significantly reduce the lead time to a first interview between a consultant and a candidate, or a client and a candidate. Arranging in person meetings, with all the diary negotiations that necessitated, was always problematic and in many ways life seems to have become more fluid. However, this ease of business is not all positive.
I have observed an increasing volatility of candidates within selection processes. Indeed the 'plug and play' aspect of video conferencing appears to result in many candidates committing to the process much less than in a face-to-face as the former requires a far lighter logistical input than the latter.
Some candidates engage in a recruitment process without any sincere motivation for making a professional change. And even if motivated, some candidates also would consider video interviewing a lesser process, versus face-to-face, and so sometimes do not give it the necessary preparation, time or attention. Some may even unconsciously believe they will be given a later opportunity to have a 'proper interview' but actually they adversely impact their chances to even qualify for the next step.
Video interviews can limit our capacity of thoroughly assess an individual as traditional paralinguistic nuances are distorted such as waving, opting for a blurred or fake backgrounds, poor connectivity etc.
There is no doubt that the rise of remote working has shaken up organisations by giving a reduced focus on where people decide to live relative to the the location of the company. This recent change elicits a larger pools of relevant candidates and consequentially a higher quality shortlist. This new WFH culture needs to be supported and lived by our clients - either through their own culture and conviction, or by mere pragmatism in reaction to what is a hugely competitive Talent market.
In spite of all the recent changes imposed upon our ways of working, effective Executive Search remains strongly based on the basics - simply finding the very best leaders or problem solvers for the benefit of our clients.
Julien Wilhelm, Partner
France
And are female managers committed supporters of women?
In my conversations with female managers, I like to ask the women whether they have actually received support over the course of their careers. Many confirm this by saying that it couldn't be any other way: you need a manager who recognises your potential and pushes you forward, or delegates new tasks and ultimately promotes. And in every new team and / or department it is important to make contacts again and ideally find sponsors. In the best case, it is possible to establish a good relationship with board members and managing directors, who are also successfully following their path and promoting and developing potential. Leadership programs for young talents also help to gain visibility, but such programs are not available everywhere.
Very few women say they made it without a sponsor. They also recognise that further development, with support, would have meant fewer detours and would have been faster. In most cases the sponsors are male. This may be due to the fact that there are fewer women than men in management.
But the question also arises, to what extent do women actually support other women?
In the interviews I have experienced two “extremes”:
On the one hand, there are women for whom, the quota is (unfortunately) a necessary intervention by the legislature in order to correct past mistakes. It is very important to them to support other talented women and to be available to them as mentors - even keeping lists of potential female executives to promote.
Then there are women who do not even want to be associated with the “gender issue”. They neither want to be a quota woman, nor do they want to attract attention through the special promotion of female executives. They are of the opinion that only experience and knowledge should be deciding factors regarding promotion.
Does that coincide with your observations?
How do “quota women” feel in companies? Do we see legislative intervention as an opportunity for all women to bring change in the male-dominated boardrooms?
Meltem Ay, Principal
Frankfurt
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